BILL NUMBER: AB 265	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 9, 2015

INTRODUCED BY   Assembly Member Holden

                        FEBRUARY 10, 2015

   An act to amend Section 2983.37 of the Civil Code, relating to
consumer protection.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 265, as amended, Holden. Consumer protection: buy-here-pay-here
dealers.
   Existing law requires buy-here-pay-here dealers, as defined, to
provide buyers with specific warranties, disclosures, and services.
Existing law prohibits a buy-here-pay-here dealer from locating a
vehicle with electronic tracking technology or disabling a vehicle
with starter interrupt technology unless specified requirements are
met, and makes a violation of this prohibition a misdemeanor.
   This bill would prohibit a buy-here-pay-here dealer from disabling
a vehicle with starter interrupt technology unless the dealer also
provides the buyer with specific written disclosures  and
communications  30 days before the dealer disables the 
vehicle.   vehicle, as specified. The bill would also
require a buy-here-pay-here dealer, if that dealer negotiated a
contract pursuant to these provisions in specified languages, to
deliver those written disclosures in the language in which the
contract was negotiated.  By expanding the scope of a crime,
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 2983.37 of the Civil Code is amended to read:
   2983.37.  (a) After a sale of a vehicle under this chapter, a
buy-here-pay-here dealer, as defined in Section 241 of the Vehicle
Code, shall not do any of the following:
   (1)  Utilize electronic tracking technology to obtain or record
the location of the vehicle, unless the buyer is expressly made aware
of the existence and use of the tracking technology by the
buy-here-pay-here dealer, the buyer's written consent is obtained,
and  either  subparagraph  (A) or 
 (A),  (B), or both, apply:
   (A) The electronic tracking technology is used solely to verify
and maintain the operational status of the tracking technology, to
repossess the vehicle, or to locate the vehicle to service the loan
or keep the loan current.
   (B) The electronic tracking technology is used solely for an
optional service to the buyer and both of the following conditions
are met:
   (i) The agreement to utilize electronic tracking technology for
the optional service is separate from the purchase and sale
agreement, is not a condition of the purchase or sale agreement for
the vehicle, and is executed after the completion of the purchase or
sale agreement for the vehicle.
   (ii) The buyer is permitted to cancel the optional service at any
point in the future without affecting the sale of the vehicle, and is
informed of his or her ability to do so.
   (2) Disable the vehicle by using starter interrupt technology,
unless the buy-here-pay-here dealer complies with all of the
following:
   (A) At the time of the sale, the buy-here-pay-here dealer provides
the buyer written notice of both of the following:
   (i) That the vehicle is equipped with starter interrupt technology
that the buy-here-pay-here dealer can use to shut down the vehicle
remotely.
   (ii) That a warning will be provided no less than 48 hours before
the use of the starter interrupt technology to shut down the vehicle
remotely and the manner and method in which that warning will occur.
The buy-here-pay-here dealer shall offer the buyer a choice of
warning methods, including warning from the device, telephone call,
 e-mail,   email,  or text message, if
available, provided that the warning method does not violate
applicable state or federal law.
   (B) At least 30 days prior to disabling the vehicle for the buyer'
s failure to tender timely loan repayments, the buy-here-pay-here
dealer  provides the buyer written notice of all 
 does both  of the following: 
   (i) Provides the buyer written notice of all of the following:
 
   (i) 
    (I)  That the loan is past due. 
   (ii)  That the buy-here-pay-here dealer may use starter interrupt
technology to disable the vehicle within 30 days of the mailing date
of the notice.  
   (iii) The amount currently due on the loan.  
   (II) The amount currently due on the loan.  
   (iv) 
    (III)  The acceptable forms of payment of the amount
currently  due.   due, so long as that form of
payment is not prohibited by subdivision (b).  
   (IV) That the buy-here-pay-here dealer may use starter interrupt
technology to disable the vehicle as of 30 days from the mailing date
of the notice.  
   (v) 
    (V)  That the vehicle will not be disabled if the buyer
tenders the amount  currently due on the loan to the
buy-here-pay-here dealer in an   specified in subclause
(II) to the dealer using an  acceptable form of payment within
30 days of the mailing date of the notice. 
   (vi) 
    (VI)  That, if the  loan   amount
due  is not paid, a warning will be provided using the warning
method specified at the time of sale to the buyer no less than 48
hours before the use of the starter interrupt technology to shut down
the vehicle remotely. 
   (ii) Communicate, within 48 hours of mailing the notice required
by clause (i), to the buyer that the notice has been sent. The
buy-here-pay-here dealer shall offer the buyer at the time of sale a
choice of communication methods, including, a telephone call, email,
or text message, if available, provided that the warning method does
not violate applicable state or federal law. The communication
required by this clause shall provide the buyer with notice of the
following:  
   (I) That the loan is past due.  
   (II) The amount currently due on the loan.  
   (III) The acceptable forms of payment of the amount currently due,
so long as that form of payment is not prohibited by subdivision
(b).  
   (IV) That written notice of the past due loan has been mailed to
the buyers last known address and provide the mailing date of the
notice.  
   (V) That the buy-here-pay-here dealer may use starter interrupt
technology to disable the vehicle as of 30 days from the mailing date
of the notice.  
   (VI) That the vehicle will not be disabled if the buyer tenders
the amount specified in subclause (II) to the dealer using an
acceptable form of payment within 30 days of the mailing date of the
notice.  
   (VII) That, should the loan not be paid, a warning will be
provided to the buyer, using the method specified at the time of
sale, no less than 48 hours before the use of the starter interrupt
technology to shut down the vehicle remotely.  
   (C) A buy-here-pay-here dealer shall keep a physical copy of all
notices sent pursuant to clause (i) of subparagraph (B) for at least
one year following the mailing date of that notice.  
   (D) Any buy-here-pay-here dealer who negotiated any contract
pursuant to this chapter primarily in Spanish, Chinese, Tagalog,
Vietnamese, or Korean, orally or in writing, shall deliver the notice
required by subparagraph (B) to the other party to the contract in
the language in which the contract was negotiated.  
   (C) 
    (E)  In the event of an emergency, the buyer will be
provided with the ability to start a dealer-disabled vehicle for no
less than 24 hours after the vehicle's initial disablement.
   (b) A buy-here-pay-here dealer shall not require the buyer to make
payments to the seller in person. For purposes of this subdivision,
"payments" does not include the downpayment. If the buyer tenders
timely payment of a deferred downpayment, the dealer shall not
repossess the vehicle or impose any other charge or penalty on the
grounds that the payment was not made in person.
   (c) A violation of this section is a misdemeanor punishable by a
fine not exceeding one thousand dollars ($1,000).
  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.