Bill Text: CA SB686 | 2013-2014 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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 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 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 amend Section 11713.18 of, and to add
Sections 390, 11713.27 , and 11713.28 to, the
Vehicle Code, relating to vehicles.
LEGISLATIVE COUNSEL'S DIGEST
SB 686, as amended, Jackson. Vehicles: vehicle dealers.
Existing law provides that it is a violation of the Vehicle Code
for the holder of any dealer's license issued as specified to
advertise for sale or sell a used vehicle as "certified" or use any
similar descriptive term in the advertisement or the sale of a used
vehicle that implies the vehicle has been certified to meet the terms
of a used vehicle certification program if any of specified
provisions apply, including, but not limited to, the dealer knows or
should have known that the vehicle has sustained frame damage, and
the dealer disclaims any warranties of merchantability on the
vehicle. Under existing law, a violation of these provisions is a
crime.
The bill would also prohibit that representation from being made
if the dealer knows or should have known that the vehicle is subject
to a manufacturer's safety recall, and the repairs required to
correct the defect have not been performed on the vehicle. By
creating a new crime, the bill would impose a state-mandated local
program.
Existing law provides that it is unlawful for a
lessor-retailer to sell a vehicle without a vehicle dealer license or
temporary permit. 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 for an initial term
of less than 4 months , 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 require a
dealer to obtain information about a used vehicle's safety recall
status, as specified. By creating a new crime, this
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. Specified
prohibitions of this bill would become operative upon the initial
effective date of the regulations adopted pursuant to a provision of
the federal Moving Ahead for Progress in the 21st Century Act that
implement that act. The bill would correct erroneous
cross-references.
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 11713.18 of the Vehicle Code
is amended to read:
11713.18. (a) It is a violation of this code for the holder of
any dealer's license issued under this article to advertise for sale
or sell a used vehicle as "certified" or use any similar descriptive
term in the advertisement or the sale of a used vehicle that implies
the vehicle has been certified to meet the terms of a used vehicle
certification program if any of the following apply:
(1) The dealer knows or should have known that the odometer on the
vehicle does not indicate actual mileage, has been rolled back or
otherwise altered to show fewer miles, or replaced with an odometer
showing fewer miles than actually driven.
(2) The dealer knows or should have known that the vehicle was
reacquired by the vehicle's manufacturer or a dealer pursuant to
state or federal warranty laws.
(3) The title to the vehicle has been inscribed with the notation
"Lemon Law Buyback," "manufacturer repurchase," "salvage," "junk,"
"nonrepairable," "flood," or similar title designation required by
this state or another state.
(4) The vehicle has sustained damage in an impact, fire, or flood,
that after repair prior to sale substantially impairs the use or
safety of the vehicle.
(5) The dealer knows or should have known that the vehicle has
sustained frame damage.
(6) Prior to sale, the dealer fails to provide the buyer with a
completed inspection report indicating all the components inspected.
(7) The dealer disclaims any warranties of merchantability on the
vehicle.
(8) The vehicle is sold "AS IS."
(9) The term "certified" or any similar descriptive term is used
in any manner that is untrue or misleading or that would cause any
advertisement to be in violation of subdivision (a) of Section 11713
of this code or Section 17200 or 17500 of the Business and
Professions Code.
(10) The dealer knows or should have known that the vehicle is
subject to a manufacturer's safety recall, and the repairs required
to correct the defect have not been performed on the vehicle. The
prohibition of this paragraph shall become operative on the initial
effective date of the regulations adopted pursuant to Section 31301
of the federal Moving Ahead for Progress in the 21st Century Act
(Public Law 112-141), that implement that act.
(b) 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, or 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.
(c) This section does not abrogate or limit any disclosure
obligation imposed by any other law.
(d) This section does not apply to the advertisement or sale of a
used motorcycle or a used off-highway motor vehicle subject to
identification under Section 38010.
SECTION 1. Section 390 is added to the
Vehicle Code , to read:
390. "Manufacturers 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 dealer issued a license under this article
shall not sell, lease for an initial term of less than four
months, lease, rent, loan, 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 either
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 State 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, 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) In the absence of knowledge pursuant to subdivision (b), and
until auto manufacturers are required to provide vehicle safety
recall data on a publicly accessible Internet Web site pursuant to
Section 31301 of the federal Moving Ahead for Progress in the 21st
Century Act (Public Law 112-141), a dealer shall obtain information
about a vehicle's safety recall status prior to completing a
transaction subject to this section from at least one of the
following sources of information:
(1) The Internet Web site of the manufacturer, provided that the
safety recall status of the vehicle is made available by the
manufacturer.
(2) A toll-free telephone number, provided that the manufacturer
has made the safety recall status of the vehicle available at that
number.
(3) Another dealer that is a franchisee of the manufacturer.
(4) A commonly available vehicle history report, provided that the
safety recall status of the vehicle is available.
(d) When auto manufacturers are required to provide vehicle safety
recall data on a publicly accessible Internet Web site pursuant to
Section 31301 of the federal Moving Ahead for Progress in the 21st
Century Act (Public Law 112-141), a dealer shall obtain information
about a used vehicle's safety recall status from that database.
(e)
(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.
(f) The prohibition of this section shall become operative on the
initial effective date of the regulations adopted pursuant to Section
31301 of the federal Moving Ahead for Progress in the 21st Century
Act (Public Law 112-141), that implement that act.
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 when the
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) In the absence of knowledge pursuant to subdivision (b) of
this section, and until auto manufacturers are required to provide
vehicle safety recall data on a publicly accessible Internet Web site
pursuant to Section 31301 of the federal Moving Ahead for Progress
in the 21st Century Act (Public Law 112-141), a rental company shall
obtain information about a vehicle's safety recall status prior to
completing a transaction subject to this section from at least one of
the following sources of information:
(1) The Internet Web site of the manufacturer, provided that the
safety recall status of the vehicle is made available by the
manufacturer.
(2) A toll-free telephone number, provided that the manufacturer
has made the safety recall status of the vehicle available at that
number.
(3) Another dealer that is a franchisee of the manufacturer.
(4) A commonly available vehicle history report, provided that the
safety recall status of the vehicle is available.
(d) When auto manufacturers are required to provide vehicle safety
recall data on a publicly accessible Internet Web site pursuant to
Section 33101 of the federal Moving Ahead for Progress in the 21st
Century Act (Public Law 112-141), rental car companies shall obtain
information about a used vehicle's safety recall status from that
database.
(e)
(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.
(f) The prohibition of this section shall become operative on the
initial effective date of the regulations adopted pursuant to Section
31301 of the federal Moving Ahead for Progress in the 21st Century
Act (Public Law 112-141), that implement that act.
SEC. 4. 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.
