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SB-686 Vehicles: vehicle dealers.(2013-2014)

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SB686:v93#DOCUMENT

Amended  IN  Assembly  June 10, 2014
Amended  IN  Assembly  June 04, 2014
Amended  IN  Senate  May 24, 2013
Amended  IN  Senate  May 07, 2013
Amended  IN  Senate  April 22, 2013
Amended  IN  Senate  April 01, 2013

CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Senate Bill No. 686


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   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.