BILL NUMBER: SB 508	CHAPTERED  07/14/03

	CHAPTER  59
	FILED WITH SECRETARY OF STATE  JULY 14, 2003
	APPROVED BY GOVERNOR  JULY 14, 2003
	PASSED THE SENATE  JUNE 30, 2003
	PASSED THE ASSEMBLY  JUNE 26, 2003
	AMENDED IN ASSEMBLY  JUNE 5, 2003
	AMENDED IN SENATE  APRIL 24, 2003

INTRODUCED BY   Senator Escutia
   (Coauthor:  Senator Romero)

                        FEBRUARY 20, 2003

   An act to add Section 2984.5 to the Civil Code, relating to
automobile sales financing.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 508, Escutia.  Automobile sales financing.
   Existing law regulates the terms and conditions of motor vehicle
conditional sales contracts, as defined, and the sellers engaged in
the business of selling or leasing motor vehicles under those
contracts.
   This bill would require a seller, as defined, to keep specified
documents for 7 years  or the length of the conditional sales
contract, whichever is longer.  Unlawful failure to provide the
documents pursuant to a court order would result in a civil penalty
of $5,000.


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


  SECTION 1.  Section 2984.5 is added to the Civil Code, to read:
   2984.5.  (a) A seller shall maintain the following  documents for
at least seven years or the length of the conditional sales contract,
whichever is longer:
   (1) A copy of each buyer's conditional sales contract.
   (2) Any documents relied upon by the seller to determine a buyer's
creditworthiness, including, but not limited to, any consumer credit
report, as defined in Section 1785.3, or any other document
containing a buyer's credit score, as defined in Section 1785.15.1.
   (3) If the conditional sales contract is sold, assigned, or
otherwise transferred, a copy of the terms of that sale, assignment,
or transfer.
   (b) A seller that unlawfully fails to comply with a court order to
produce the documents described in subdivision (a) shall be liable
in an action brought by the Attorney General for a civil penalty of
five thousand dollars ($5,000) per violation.  The penalties provided
by this section are in addition to all rights and remedies that are
otherwise available under law.