Bill Text: CA SB686 | 2013-2014 | Regular Session | Amended
Bill Title: Vehicles: vehicle dealers.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Engrossed - Dead) 2014-06-17 - Set, second hearing. Failed passage in committee. Reconsideration granted. [SB686 Detail]
Download: California-2013-SB686-Amended.html
BILL NUMBER: SB 686 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 10, 2014
AMENDED IN ASSEMBLY JUNE 4, 2014
AMENDED IN SENATE MAY 24, 2013
AMENDED IN SENATE MAY 7, 2013
AMENDED IN SENATE APRIL 22, 2013
AMENDED IN SENATE APRIL 1, 2013
INTRODUCED BY Senator Jackson
(Principal coauthor: Assembly Member Dickinson)
(Coauthor: Senator Monning)
(Coauthor: Assembly Member Bonta)
FEBRUARY 22, 2013
An act to add Sections 390, 390 and
11713.27 , and 11713.28 to, to the
Vehicle Code, relating to vehicles.
LEGISLATIVE COUNSEL'S DIGEST
SB 686, as amended, Jackson. Vehicles: vehicle dealers.
Existing law prohibits a licensed dealer from engaging in certain
practices, including, among others, making an untrue or misleading
statement indicating that a vehicle is equipped with all the
factory-installed optional equipment the manufacturer offers. Under
existing law, a violation of these provisions is a crime.
This bill would, subject to exceptions, additionally prohibit a
dealer from selling , leasing, renting, loaning,
or otherwise transferring ownership at retail of a used vehicle, as
specified, if the dealer knows or should have known that the vehicle
is subject to a manufacturer's safety recall, unless the repairs
required to correct the defect have been performed on the vehicle.
The bill would, subject to exceptions, additionally prohibit
a rental company that is also a dealer from selling or otherwise
transferring ownership at retail of a used vehicle, if the rental
company knows or should have known that the vehicle is subject to a
manufacturer's safety recall, unless the repairs required to correct
the defect have been performed on the vehicle. The bill
would define the term "manufacturer's safety recall." Because a
violation of these provisions would be a crime under other provisions
of existing law, the bill would impose a state-mandated local
program. The bill would also make a violation of these provisions
actionable under the Consumers Legal Remedies Act and the Unfair
Competition Law, and as false advertising.
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 390 is added to the Vehicle Code, to read:
390. "Manufacturers "Manufacturer's
safety recall" means a recall pursuant to Section 30118 of Title 49
of the United States Code, of the National Highway
Traffic and Motor Vehicle Safety Act (49 U.S.C. Sec. 30101, et
seq.). It does not include service campaigns or emission recalls
where the manufacturer has not issued a safety recall notice to
owners of affected vehicles, pursuant to Section 30118 of Title 49 of
the United States Code.
SEC. 2. Section 11713.27 is added to the Vehicle Code, to read:
11713.27. (a) Except for a rental company, as defined in
Section 1936 of the Civil Code, a A
dealer issued a license under this article shall not sell,
lease, rent, loan, sell or otherwise transfer
ownership at retail of a used vehicle, as defined in Section 665 and
subject to registration under this code, including any used vehicle
advertised as "certified" or any similar descriptive term, if the
dealer knows or should have known that the vehicle is subject to a
manufacturer's safety recall, unless the repairs required to correct
the defect have been performed on the vehicle. This section does not
apply to transfers or sales by a dealer to another dealer, an auto
auction, or a manufacturer.
(b) For purposes of this section, a dealer is deemed to have
knowledge of a manufacturer's safety recall if any of the following
applies:
(1) The dealer receives notification from the manufacturer of the
vehicle about the manufacturer's safety recall for that vehicle,
pursuant to subdivision (b) or (c) of Section 30118 or Section 30119
of Title 49 of the United States Code.
(2) The dealer is a franchisee of the manufacturer, or was a
franchisee of the manufacturer at the time the manufacturer issued
the notice of the safety recall.
(3) Prior to the sale, lease, loan, rental,
sale or other transfer of ownership at retail of the
vehicle, the manufacturer has made information about the manufacturer'
s safety recall regarding the specific vehicle available on the
manufacturer's Internet Web site, searchable by the vehicle
identification number, stating that the manufacturer's safety recall
repairs have not been performed.
(c) A violation of this section is actionable under the Consumers
Legal Remedies Act (Title 1.5 (commencing with Section 1750) of Part
4 of Division 3 of the Civil Code), the Unfair Competition Law
(Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of
the Business and Professions Code), Section 17500 of the Business
and Professions Code, and any other applicable state or federal law.
The rights and remedies provided by this section are cumulative and
shall not be construed as restricting any right or remedy that is
otherwise available.
SEC. 3. Section 11713.28 is added to the
Vehicle Code, to read:
11713.28. (a) A rental company, as defined in Section 1936 of the
Civil Code, that is also a dealer licensed under this article shall
not sell or otherwise transfer ownership at retail of a used vehicle,
as defined in Section 665 and subject to registration under this
code, including any used vehicle advertised as "certified" or any
similar descriptive term, if the rental company knows or should have
known that the vehicle is subject to a manufacturer's safety recall,
unless the repairs required to correct the defect have been performed
on the vehicle. This section does not apply to transfers or sales by
a rental company to a dealer, an auto auction, or a manufacturer.
(b) For purposes of this section, a rental company is deemed to
have knowledge of a manufacturer's safety recall if either of the
following applies:
(1) The rental company receives notification from the manufacturer
of the vehicle of the manufacturer's safety recall for that vehicle
pursuant to subdivision (b) or (c) of Section 30118 or Section 30119
of Title 49 of the United States Code.
(2) Prior to the sale or other transfer of ownership at retail of
the vehicle, the manufacturer has made information about the
manufacturer's safety recall regarding the specific vehicle available
on the manufacturer's Internet Web site, searchable by the vehicle
identification number, stating that the manufacturer's safety recall
repairs have not been performed.
(c) A violation of this section is actionable under the Consumers
Legal Remedies Act (Title 1.5 (commencing with Section 1750) of Part
4 of Division 3 of the Civil Code), the Unfair Competition Law
(Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of
the Business and Professions Code), Section 17500 of the Business
and Professions Code, and any other applicable state or federal law.
The rights and remedies provided by this section are cumulative and
shall not be construed as restricting any right or remedy that is
otherwise available.
SEC. 4. SEC. 3. 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.
