Learn more about the types of products you need an occupational license (OL) to sell.
Products that Require an OL
These products require street registration or off-highway vehicle (OHV) identification. If you sell any of these products, you need to be licensed as a manufacturer,California Vehicle Code (CVC) §672 distributor,CVC §285 or dealer.CVC §285
- Automobiles.CVC §465
- All-terrain vehicles (ATVs):CVC §111 OHVs are subject to identification as opposed to registration.CVC §38010
- Commercial vehicles:CVC §260 Includes truck tractors, motor trucks, pickups, and sport utility vehicles (SUVs) with a manufactured or conversion truck bed.
- Motorcycles & motor driven cycles:CVC §§400, 405 Includes both on road and motorcycle-type OHVs.
- Trailers:CVC §§550, 630 Includes semi-trailers, fifth wheel travel trailers, and camp trailers.
- Recreational vehicles:CVC §415 Includes motor homes.
- House cars:CVC §362 Includes vehicles permanently altered for habitation.
- Buses:CVC §233 Includes commercial vehicles defined in CVC §260.
- Emergency vehicles:CVC §165 Includes fire trucks, fire equipment and ambulances.
- Low-speed vehicles.CVC§385.5
- Moped or motorized bicycles:CVC §406 Licensure is only required when dealer sells another product requiring a license pursuant to CVC §5039. Motorized bicycles and mopeds are issued special plates rather than license plates pursuant to CVC §5030.
- Motor truck.CVC §410
- Trailer coaches & park trailers.CVC §635
- Utility-terrain vehicle.CVC §531
- Snowmobiles.CVC §557
Products that Don’t Require an OL
- Special construction equipment:CVC §565 Incidentally operated on public streets under special permit.
- Special mobile equipment.CVC §575
- Forklifts: Primarily designed for loading and not operated on highways.
- Golf carts.CVC §345
- Motorized quadricycles and tricycles.CVC §407
- Motorized scooters.CVC §407.5
- Motorized bicycles and mopeds:CVC §406 Only when the dealer sells no other products requiring licensure pursuant to CVC §5039.
- Portable dollies or tow dollies.CVC §§617, 4014
- Aircraft refueling vehicles.
- Manufactured homes.CVC §387
- Camper with one axle:CVC §243 A camper designed to be mounted on a motor vehicle.
- Dune buggies and sand rails.
- OHVs not listed as requiring licensure.
- Implements of husbandry:CVC §36000 & §36005 (k) Vehicles used exclusively in the conduct of agricultural operations are designated as an implement of husbandry. Incidental movement over a highway or public roads is defined as movement involving a total distance of no greater than one mile from the point of origin of the trip.
Vehicle “kits” sold unassembled to be constructed by the purchasers for private use (not for resale) and not constructed by licensed manufacturers or remanufacturers (or manufacturers/remanufacturers that should be licensed), do not currently require licensure.CVC §580
However, a manufacturer and dealer license would be required to sell pre-assembled kit vehicles, or kits that leave the facility ready for registration (for example, turnkey vehicles), if such were legal.
Kits are generally products distributed in component parts requiring tools to assemble into a final product by the purchaser. Products distributed with component parts assembled to the point that tools are not required to render the vehicle operational on the highway, or as identified OHVs, are not considered kits (with possible exceptions in very unusual cases). Vehicle kits constructed by retail purchasers into complete units are a type of specially constructed (SPCNS) vehicle pursuant to CVC §580. There are currently no regulations to interpret the stature. If a vehicle kit is constructed and sold as a “turnkey vehicle” by a commercial enterprise for profit, it must comply with California Air Resources Board emission requirements and United States Federal Motor Vehicle Safety Standards as appropriate, and is not a SPCNS vehicle.
Two-stage products are subject to licensure, if the manufacturer is using a purchased chassis and permanently altering the product or adding new/used products to the chassis for sale, especially under a new product name.
Conversions of purchased vehicles:
- If the vehicle is shipped directly to the converter from the manufacturer, then a new vehicle dealer license is required.
- If the vehicle is purchased from a dealer by the converter, modified and offered for sale, then a used vehicle dealer license if required.
- If the vehicle is purchased by a consumer and delivered to the converter for modification, then no license is required.
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Resources & Links
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