BILL NUMBER: SB 686 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 1, 2013
INTRODUCED BY Senator Jackson
FEBRUARY 22, 2013
An act to amend Section 11713.18 of, and to add Section
11713.27 to , the Vehicle Code, relating to vehicles.
LEGISLATIVE COUNSEL'S DIGEST
SB 686, as amended, Jackson. Vehicle dealers: safety
recalls. Vehicles: vehicle dealers.
Existing
(1) 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 additionally require that if the dealer knows or
should have known that the vehicle is subject to a manufacturer's
safety recall, it would be a violation of the Vehicle Code.
(2) 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 additionally prohibit a motor vehicle dealer from
selling, leasing, displaying, renting, loaning, or
offering for sale at retail a new or used vehicle, as specified, if
the vehicle has a defect that is subject to a manufacturer's
safety recall, unless the repairs required to correct the
defect have been performed on the vehicle. By expanding the scope of
a crime, this 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.
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.
(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. SEC. 2. Section 11713.27
is added to the Vehicle Code, to read:
11713.27. (a) A dealer issued a license under this article shall
not sell, lease, display, rent, loan, or offer for sale at
retail a new vehicle, as defined in Section 430 and subject to
registration under this code, or a used vehicle, as defined in
Section 655 and subject to registration under this code, if the
vehicle has a defect that is subject to a manufacturer's safety
recall, unless the repairs required to correct the defect have
been performed on the vehicle.
(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.
SEC. 2. 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.