Bill Text: CA AB1534 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Vehicles: dealers: used vehicle sales: labeling

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2012-09-29 - Chaptered by Secretary of State - Chapter 741, Statutes of 2012. [AB1534 Detail]

Download: California-2011-AB1534-Amended.html

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BILL NUMBER: AB 1534	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 25, 2012
	AMENDED IN ASSEMBLY  MAY 21, 2012
	AMENDED IN ASSEMBLY  MARCH 14, 2012

INTRODUCED BY   Assembly Member Wieckowski
   (Coauthor: Senator Correa)

                        JANUARY 24, 2012

   An act to add Chapter 6 (commencing with Section 11950) to
Division 5 of the Vehicle Code, relating to vehicles.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1534, as amended, Wieckowski. Vehicles: dealers: used vehicle
sales: labeling requirements.
   Existing law regulates the accuracy of information provided to
consumers during vehicle sales, including the information contained
in advertising, brochures, and manuals, as specified. Existing law
also requires manufacturers, as specified, to disclose certain
information regarding a vehicle's engine, as specified, by affixing a
label on the vehicle. A violation of these provisions is an
infraction.
   This bill would require a buy-here-pay-here dealer, as defined, to
affix to and to prominently and conspicuously display a label on any
used vehicle offered for retail sale that states the reasonable
market value of the vehicle. The bill would require the label to
contain specified information used to determine the vehicle's
reasonable market value and the date the value was determined. The
bill would require a buy-here-pay-here dealer to provide to a
prospective buyer of the used vehicle a copy of any information
obtained from a nationally recognized pricing guide that the
buy-here-pay-here dealer used to determine the reasonable market
value of the vehicle. By creating a new crime, the bill would impose
a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 6 (commencing with Section 11950) is added to
Division 5 of the Vehicle Code, to read:
      CHAPTER 6.  SALE OF USED VEHICLES


   11950.  (a) A buy-here-pay-here dealer shall affix a label on any
used vehicle being offered for retail sale that states the reasonable
market value of that vehicle. The label shall meet all of the
following conditions:
   (1) Be in writing.
   (2) Be printed with a heading that reads "REASONABLE MARKET VALUE
OF THIS VEHICLE" in at least 16-point bold type and text in at least
12-point type.
   (3) Be located adjacent to the window sticker identifying the
equipment provided with the vehicle or, if none, it shall be located
prominently and conspicuously on the vehicle so that it is readily
readable.
   (4) Contain the information used to determine the reasonable
market value of the vehicle, including, but not limited to, the use
of a nationally recognized pricing guide for used vehicles.
   (5) Contain the date the reasonable market value was determined.
   (6) Indicate that the reasonable market value is being provided
only for comparison shopping and is not the retail sale price or the
advertised price of the vehicle.
   (b) A buy-here-pay-here dealer shall provide to a prospective
buyer of the used vehicle a copy of any information obtained from a
nationally recognized pricing guide that the buy-here-pay-here dealer
used to determine the reasonable market value of the vehicle.
   (c) As used in this section:
   (1) "Reasonable market value" means the average retail value of a
used vehicle based on the condition, mileage, year, make, and model
of the vehicle, as determined within the last 60 days by a nationally
recognized pricing guide that provides used vehicle retail values or
pricing reports to vehicle dealers or the public.
   (2) "Nationally recognized pricing guide" includes, but is not
limited to, the Kelley Blue Book (KBB), Edmunds, the Black Book, or
the National Automobile Dealers' Association (NADA) Guide.
   (3) "Buy-here-pay-here dealer" means a seller who does both of the
following: 
   (A) Enters into conditional sale contracts, within the meaning of
subdivision (a) of Section 2981 of the Civil Code, or lease
contracts, within the meaning of subdivision (d) of Section 2985.7 of
the Civil Code.  
   (B) Does not routinely assign his or her conditional sale
contracts to an unaffiliated third-party finance or leasing source.
 
   (A) Enters into conditional sale contracts, within the meaning of
subdivision (a) of Section 2981 of the Civil Code and subject to the
provisions of Chapter 2b (commencing with Section 2981) of Title 14
of Part 4 of Division 3 of the Civil Code or lease contracts, within
the meaning of subdivision (d) of Section 2985.7 of the Civil Code
and subject to the provisions of Chapter 2d (commencing with Section
2985.7) of Title 14 of Part 4 of Division 3 of the Civil Code. 

   (B) Assigns less than 90 percent of all unrescinded conditional
sale contracts and lease contracts to unaffiliated third-party
finance or leasing sources within 60 days of the consummation of
those contracts.  
   (4) Notwithstanding paragraph (3), a seller is not a
buy-here-pay-here dealer if the seller does both of the following:
 
   (A) Pursuant to Section 11713.18, certifies 100 percent of its
vehicles.  
   (B) Maintains an on-site service and repair facility that is
licensed by the Bureau of Automotive Repair and employs a minimum of
five master automobile technicians who are certified by the National
Institute for Automotive Service Excellence. 
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.