The Scoop on California AB 516 for Dealers
On January 1, 2019, California became one of 36 states to mandate that auto dealers, lessor-retailers, wholesale dealers and auto auctions provide a Temporary License Plate (TLP) for each vehicle sold. California Assembly Bill No. 516 also created an electronic Report of Sale (ROS) system that automatically generates an ROS number for each deal.
The legislation is designed to improve public safety by addressing delays between the sale of a vehicle and the receipt of permanent license plates, which can result in numerous vehicles on the road without license plates. The temporary plates are valid for 90 days and must be removed and replaced by the vehicle owner when they receive their permanent plates.
Dealers – there have been some changes to your F&I process:
- You no longer need to keep a stack of Report of Sale forms.
- Sending the 5-day notice portion of the Report of Sale form to the DMV is no longer necessary.
- You still need to print out the completed Report of Sale form, which must be signed and submitted with the title and registration.
- You will continue to place the temporary operating copy portion of the report of the Report of Sale form in the windshield of the sold vehicle.
Temporary plate creation
- For any vehicle sold that does not already display license plates, your dealership needs to print the temporary license plate(s) on special paper using a laser printer and affix them to the vehicle before the customer leaves the lot with their new purchase.
How Dealertrack California Reg & Title can help
As an authorized First Line Service Provider for the California DMV, the Dealertrack California Reg & Title solution has direct access to assist dealers in electronically reporting the sale of a vehicle and issuing a TLP as needed.
If you need any help in fully implementing these changes or have questions about how California AB 516 affects your operations, please visit our detailed FAQ page and sign up for our 45-minute OnDemand video training.
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