1. (a) Each business partner shall maintain all business records related to the BPA program.
2. (b) First-line business partners and first-line service providers shall retain records for the term of the BPA permit to which they pertain, for three years following the termination, cancellation or expiration of the BPA permit and during any ongoing examination, audit and investigation pursuant to Sections 225.63 and 225.66 of these regulations. All or part of the records may be kept in electronic format. Records stored in paper format shall be stored solely at the approved site location.

3. (c) Second-line business partners shall maintain all business records related to the BPA program, those required by Vehicle Code section 11406, and all copies of all registration documents submitted by customers, for at least four (4) years. All or part of these records may be kept in electronic format. Records stored in paper format shall be stored solely at the approved site location or with their approved first-line service provider. Regardless of whether they are maintained by the second-line business partner or the first-line service provider, all records shall be readily available for inspection at the request of the department and retained for a period of four (4) years.

   1. (1) If a second-line business partner chooses to keep all or part of these records at a first-line service provider, it is the second-line business partner's responsibility to assure all the records are readily available for inspection for a period of four (4) years.

   2. (2) If a second-line business partner retrieves and keeps copies of all records electronically from their previous first-line service provider, the second-line business partner shall keep these records for the remainder of the required four-year period of time.

      1. (A) If the second-line business partner ceases operation for any reason they shall within 24 hours notify their first-line service provider, and within five days deliver all BPA program records, all controlled inventory, all accountable inventory, and all customer transactions then in their possession, including any fees or receipts for fees due to the department or the customer to their first-line service provider, who shall within 48 hours notify and deliver those items to the BPA program administrator.

4. (d) Upon the department's request, all business records shall be immediately made available during normal business hours to the department's representative.

   1. (1) A business partner's out-of-state site locations may be issued a permit only if the business partner agrees in writing, and subject to the sole discretion of the BPA Program Administrator, to (1) make the business records available in California for an examination, investigation or to complete an audit or (2) pay the reasonable costs of an examination, audit or investigation, including but not limited to the expenses for travel, meals and lodging of the department's representative incurred during an investigation or audit made at the business partner's out-of-state location.
5. (e) A business partner shall keep and retain all paper business records at the business partner's approved site location.
6. (f) The business records required to be maintained by the business partner pursuant to these BPA regulations under Article 3.6 are records of the department.

Note: Authority cited: Sections 1651 and 1685, Vehicle Code. Reference: Section 1685, Vehicle Code.

History

1. New section filed 7-5-2002 as an emergency; operative 7-5-2002 (Register 2002, No. 28). A Certificate of Compliance must be transmitted to OAL by 11-4-2002 or emergency language will be repealed by operation of law on the following day.

2. New section with amendment of subsection (b)(1) refiled 11-4-2002 as an emergency; operative 11-4-2002 (Register 2002, No. 45). A Certificate of Compliance must be transmitted to OAL by 3-4-2003 or emergency language will be repealed by operation of law on the following day.

3. New section refiled 3-3-2003 as an emergency; operative 3-3-2003 (Register 2003, No. 10). A Certificate of Compliance must be transmitted to OAL by 7-1-2003 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 3-3-2003 order, including amendment of subsection (b)(1), transmitted to OAL 6-27-2003 and filed 8-11-2003 (Register 2003, No. 33).

5. Amendment of subsections (a) and (d) filed 6-29-2012; operative 7-1-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 26).

6. Amendment filed 11-5-2025; operative 11-5-2025 pursuant to Government Code section 11343.4(b)(3) (Register 2025, No. 45).