Amended in Assembly April 15, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 964

Introduced by Assembly begin delete Members Brown and end delete begin insert Member end insert Bonta

February 22, 2013

An act to amend Section 11713.18 of the Vehicle Code, relating to vehicles.

LEGISLATIVE COUNSEL’S DIGEST

AB 964, as amended, begin delete Brown end delete   begin insert Bonta end insert . Vehicles: dealers.

Existing law makes it unlawful and provides that it constitutes an infraction for any person to violate, or fail to comply with, any provision of the Vehicle Code, or any local ordinance adopted pursuant to this code. Existing law also makes it a violation of the Vehicle Code for the holder of any specified dealer’s license 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 that the vehicle has been certified to meet the terms of a used vehicle certification program if any of begin insert several end insert specified conditions apply. Under existing law, those specified conditions include, but are not limited to, when 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, begin delete or end delete when the dealer knows or should have known that the vehicle has sustained frame begin delete damage. end delete begin insert damage, or when the dealer, prior to sale, fails to provide a completed inspection report, as specified. end insert

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This bill would delete the limitation that applies the prohibition to the use of the term “certified” or any similar descriptive term in the advertisement for, or the sale of, a used vehicle that implies the vehicle has been certified to meet the terms of a used vehicle certification program. This bill would instead prohibit the holder of any dealer’s license from advertising for sale or selling any used vehicle if any of the specified conditions apply. This bill would also add a dealer’s knowledge of airbag deployment as one of the specified conditions for which it is a violation of the Vehicle Code for the holder of any specified dealer’s license to advertise for sale or sell a used vehicle.

end delete begin insert

This bill would prohibit the holder of any dealer’s license from selling a vehicle as part of a used vehicle certification program if the dealer knows or should have known that the vehicle is the subject of an open or unaddressed recall. The bill would also prohibit the holder of any dealer’s license from selling any used car, including a car that is not part of a used vehicle certification program, without providing the buyer a completed inspection report, as specified, prior to sale. The bill would prohibit the holder of any dealer’s license from selling a used car without providing a written disclosure indicating which, if any, of several specified conditions are present.

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By creating new crimes, 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 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 begin insert 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 end insert 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 begin insert and end insert 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 begin delete or an airbag deployment end delete .

begin delete

(6) Prior to sale, the dealer fails to provide the buyer with a
completed inspection report indicating all the components
inspected.

end delete begin delete

(7)

end delete

begin insert ( end insert begin insert 6) end insert  The dealer disclaims any warranties of merchantability on
the vehicle.

begin delete

(8)

end delete

begin insert ( end insert begin insert 7) end insert  The vehicle is sold “AS IS.”

begin delete

(9)

end delete

begin insert ( end insert begin insert 8) end insert  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.

begin insert

(9)  The dealer knows or should have known that the vehicle is
subject to an open or unaddressed recall.

end insert begin insert

(b) It is a violation of this code for the holder of any dealer’s
license issued under this article to sell a used vehicle without
providing the buyer written disclosure identifying which, if any,
of the following conditions are present, if the dealer knows or
should know of its presence:

end insert begin insert

(1) 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.

end insert begin insert

(2) The vehicle was reacquired by the vehicle’s manufacturer
or a dealer pursuant to state or federal warranty laws.

end insert begin insert

(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.

end insert begin insert

(4) The vehicle has sustained damage in an impact, fire, or
flood, that after repair and prior to sale substantially impairs the
use or safety of the vehicle.

end insert begin insert

(5) The vehicle has sustained frame damage.

end insert begin insert

(6) The dealer disclaims any warranties of merchantability on
the vehicle.

end insert begin insert

(7) The vehicle is sold “AS IS.”

end insert begin insert

(8) The vehicle is subject to an open or unaddressed recall.

end insert begin insert

(c) It is a violation of this code for the holder of any dealer’s
license issued under this article to sell a used vehicle without
providing the buyer a completed inspection report indicating all
the components inspected prior to sale.

end insert begin delete

(b)

end delete

begin insert (d) end insert  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.

begin delete

(c)

end delete

begin insert (e) end insert  This section does not abrogate or limit any disclosure
obligation imposed by any other law.

begin delete

(d)

end delete

begin insert (f) end insert  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.

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.