AB 964, as amended, Bonta. 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 several 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, when the dealer knows or should have known that the vehicle has sustained frame damage, or when the dealer, prior to sale, fails to provide a completed inspection report, as specified.
This billbegin insert, 180 days after the enactment of regulations pursuant to portions of the federal Moving Ahead for Progress in the 21st Century Act (MAP-21),end insert would prohibit the holder of any dealer’s license from selling a used vehicle as part of a used vehicle certification program if the dealer knows or should have known that the vehicle is the subject of a manufacturer’s safety recall. The bill would also prohibit the holder of any dealer’s license from selling any used vehicle without providing a written disclosure, in certain languages, indicating which, if any, of several specified conditions are present.
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 11713.18 of the Vehicle Code is amended
2to read:
(a) It is a violation of this code for the holder of
4any dealer’s license issued under this article to advertise for sale
5or sell a used vehicle as “certified” or use any similar descriptive
6term in the advertisement or the sale of a used vehicle that implies
7the vehicle has been certified to meet the terms of a used vehicle
8certification program if any of the following apply:
9(1) The dealer knows or should have known that the odometer
10on the vehicle does not indicate actual mileage, has been rolled
11back or otherwise altered to show fewer miles, or replaced with
12an odometer showing fewer miles than actually driven.
13(2) The dealer knows or should have known that the vehicle
14was reacquired by the vehicle’s manufacturer or a dealer pursuant
15to state or federal warranty laws.
16(3) The title to the vehicle has been inscribed with the notation
17“Lemon Law Buyback,” “manufacturer repurchase,” “salvage,”
18“junk,” “nonrepairable,” “flood,” or similar title designation
19required by this state or another state.
P3 1(4) The vehicle has sustained damage in an impact, fire, or flood,
2that after repair and prior to sale substantially impairs the use or
3safety of the vehicle.
4(5) The dealer knows or should have known that the vehicle has
5sustained frame damage.
6(6) Prior to sale,
the dealer fails to provide the buyer with a
7completed inspection report indicating all the components
8inspected.
9(7) The dealer disclaims any warranties of merchantability on
10the vehicle.
11(8) The vehicle is sold “AS IS.”
12(9) The term “certified” or any similar descriptive term is used
13in any manner that is untrue or misleading or that would cause any
14advertisement to be in violation of subdivision (a) of Section 11713
15of this code or Section 17200 or 17500 of the Business and
16Professions Code.
17(10) The dealer knows or should have known that the vehicle
18is subject to a manufacturer’s safety
recall.
19(b) It is a violation of this code for the holder of any dealer’s
20license issued under this article to sell a used vehicle without
21providing the buyer written disclosure, inbegin insert English or inend insert the
22languages specified in subdivision (b) of Section 1632 of the Civil
23Code, identifying which, if any, of the following conditions are
24 present, if the dealer knows or should know of its presence:
25(1) The odometer on the vehicle does not indicate actual
26mileage, has been rolled back or otherwise altered to show fewer
27miles, or replaced with an odometer showing fewer miles than
28actually driven.
29(2) The vehicle was reacquired by the
vehicle’s manufacturer
30or a dealer pursuant to state or federal warranty laws.
31(3) The title to the vehicle has been inscribed with the notation
32“Lemon Law Buyback,” “manufacturer repurchase,” “salvage,”
33“junk,” “nonrepairable,” “flood,” or similar title designation
34required by this state or another state.
35(4) The vehicle has sustained damage in an impact, fire, or flood,
36that after repair and prior to sale substantially impairs the use or
37safety of the vehicle.
38(5) The vehicle has sustained frame damage.
39(6) The dealer disclaims any warranties of merchantability on
40the vehicle.
P4 1(7) The vehicle is sold “AS IS.”
2(8) The vehicle is subject to a manufacturer’s safety recall.
3(c) It is a violation of this code for the holder of any dealer’s
4license issued under this article to sell a used vehicle without
5providing the buyer a completed inspection report indicating all
6the components inspected prior to sale.
7(c) (1) A violation of this section is actionable under the
8Consumers Legal Remedies Act (Title 1.5 (commencing with
9Section 1750) of Part 4 of Division 3 of the Civil Code), the Unfair
10Competition Law (Chapter 5 (commencing with Section
17200)
11of Part 2 of Division 7 of the Business and Professions Code),
12Section 17500 of the Business and Professions Code, or any other
13applicable state or federal law. The rights and remedies provided
14by this section are cumulative and shall not be construed as
15restricting any right or remedy that is otherwise available.
16(2) The rights, remedies, and procedures provided for in this
17section are in addition to, and independent of, any other rights,
18remedies, or procedures available under any other law. Nothing
19in this section shall be construed to alter, limit, or negate any other
20rights, remedies, or procedures provided for by law.
21(d) This section does not abrogate or limit any disclosure
22obligation imposed by any other law.
23(e) This section does not apply to the advertisement or sale of
24a used motorcycle or a used off-highway motor vehicle subject to
25identification under Section 38010.
No reimbursement is required by this act pursuant to
27Section 6 of Article XIII B of the California Constitution because
28the only costs that may be incurred by a local agency or school
29district will be incurred because this act creates a new crime or
30infraction, eliminates a crime or infraction, or changes the penalty
31for a crime or infraction, within the meaning of Section 17556 of
32the Government Code, or changes the definition of a crime within
33the meaning of Section 6 of Article XIII B of the California
34Constitution.
begin insertThis bill shall become operative 180 days after the
36adoption of regulations pursuant to Section 31301 of the federal
37Moving Ahead for Progress in the 21st Century Act (MAP-21;
38Public Law 112-141).end insert
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