Bill Text: CA AB265 | 2015-2016 | Regular Session | Introduced

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

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Bill Title: Consumer protection: buy-here-pay-here dealers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2015-08-12 - Chaptered by Secretary of State - Chapter 179, Statutes of 2015. [AB265 Detail]

Download: California-2015-AB265-Introduced.html

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BILL NUMBER: AB 265	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Holden

                        FEBRUARY 10, 2015

   An act to amend Section 2983.37 of the Civil Code, relating to
consumer protection.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 265, as introduced, Holden. Consumer protection:
buy-here-pay-here dealers.
   Existing law requires buy-here-pay-here dealers, as defined, to
provide buyers with specific warranties, disclosures, and services.
Existing law prohibits a buy-here-pay-here dealer from locating a
vehicle with electronic tracking technology or disabling a vehicle
with starter interrupt technology unless specified requirements are
met, and makes a violation of this prohibition a misdemeanor.
   This bill would prohibit a buy-here-pay-here dealer from disabling
a vehicle with starter interrupt technology unless the dealer also
provides the buyer with specific written disclosures 30 days before
the dealer disables the vehicle. By expanding the scope of a crime,
this 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.  Section 2983.37 of the Civil Code is amended to read:
   2983.37.  (a) After a sale of a vehicle under this chapter, a
buy-here-pay-here dealer, as defined in Section 241 of the Vehicle
Code, shall not do any of the following:
   (1)  Utilize electronic tracking technology to obtain or record
the location of the vehicle, unless the buyer is expressly made aware
of the existence and use of the tracking technology by the
buy-here-pay-here dealer, the buyer's written consent is obtained,
and either subparagraph (A) or (B), or both, apply:
   (A) The electronic tracking technology is used solely to verify
and maintain the operational status of the tracking technology, to
repossess the vehicle, or to locate the vehicle to service the loan
or keep the loan current.
   (B) The electronic tracking technology is used solely for 
any   an  optional service to the buyer and both
of the following conditions are met:
   (i) The agreement to utilize electronic tracking technology for
the optional service is separate from the purchase and sale
agreement, is not a condition of the purchase or sale agreement for
the vehicle, and is executed after the completion of the purchase or
sale agreement for the vehicle.
   (ii) The buyer is permitted to cancel the optional service at any
point in the future without affecting the sale of the vehicle, and is
informed of his or her ability to do so.
   (2) Disable the vehicle by using starter interrupt technology,
unless the buy-here-pay-here dealer complies with all of the 
following provisions:   following:  
   (A) Notifies the buyer in writing at the time of the sale that
 
   (A) At the time of the sale, the buy-here-pay-here dealer provides
the buyer written notice of both of the following: 
    (i)     That  the vehicle is equipped
with starter interrupt  technology, which  
technology that the buy-here-pay-here dealer can use to shut
down the vehicle remotely. 
   (B) The written disclosure provided to the buyer at the time of
sale informs the buyer that 
    (ii)     That  a warning will be
provided no less than 48 hours before the use of the starter
interrupt technology to shut down the vehicle remotely and 
discloses  the manner and method in which that warning will
occur. The  buy-here-pay-here  dealer shall offer the buyer
a choice of warning methods, including warning from the device,
telephone call, e-mail, or text message, if available, provided that
the warning method does not violate applicable state or federal law.

   (B) At least 30 days prior to disabling the vehicle for the buyer'
s failure to tender timely loan repayments, the buy-here-pay-here
dealer provides the buyer written notice of all of the following:
 
   (i) That the loan is past due.  
   (ii) That the buy-here-pay-here dealer may use starter interrupt
technology to disable the vehicle within 30 days of the mailing date
of the notice.  
   (iii) The amount currently due on the loan.  
   (iv) The acceptable forms of payment of the amount currently due.
 
   (v) That the vehicle will not be disabled if the buyer tenders the
amount currently due on the loan to the buy-here-pay-here dealer in
an acceptable form of payment within 30 days of the mailing date of
the notice.  
   (vi) That, if the loan is not paid, a warning will be provided
using the warning method specified at the time of sale to the buyer
no less than 48 hours before the use of the starter interrupt
technology to shut down the vehicle remotely. 
   (C)  In the event of an emergency, the buyer will be provided with
the ability to start a dealer-disabled vehicle for no less than 24
hours after the vehicle's initial disablement.
   (b) A buy-here-pay-here dealer shall not require the buyer to make
payments to the seller in person. For purposes of this subdivision,
"payments" does not include the downpayment. If the buyer tenders
timely payment of a deferred downpayment, the dealer shall not
repossess the vehicle or impose any other charge or penalty on the
grounds that the payment was not made in person.
   (c) A violation of this section is a misdemeanor punishable by a
fine not exceeding one thousand dollars ($1,000).
  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.