Amended in Senate June 23, 2015

Amended in Assembly March 26, 2015

Amended in Assembly March 9, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 265


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 the dealer provides written disclosure to the buyer at the time the vehicle is purchased that the vehicle is equipped with starter interrupt technology and that disclosure informs the buyer 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, as specified.begin insert Existing law provides that 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.end insert Existing law makes a violation of this prohibition abegin delete misdemeanor.end deletebegin insert misdemeanor punishable as a fine not exceeding $1,000.end insert

This bill would instead require the written disclosure provided to the buyer at the time of sale to inform the buyer that a warning will be providedbegin delete 10 days before the use of the starter interrupt technologyend deletebegin insert 5 days before the use of the starter interrupt technology for all weekly payment term contracts and 10 days before the use of starter interrupt technology on all other contractsend insert and a final warning will be provided no less than 48 hours before the use of the starter interrupt technology to shut down the vehicle remotely, as specified.begin delete Byend deletebegin insert The bill would require the written disclosure provided to the buyer at the time of sale to inform the buyer that in the event of an emergency he or she will be provided with the ability to start a dealer-disabled vehicle for no less than 24 hours after the vehicle’s initial disablement. The bill would also increase the maximum fine amount from $1,000 to $2,000.end insert

begin insertByend insert expanding the scope of a crime,begin delete theend deletebegin insert thisend insert 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:

P2    1

SECTION 1.  

Section 2983.37 of the Civil Code is amended
2to read:

3

2983.37.  

(a) After a sale of a vehicle under this chapter, a
4buy-here-pay-here dealer, as defined in Section 241 of the Vehicle
5Code, shall not do any of the following:

6(1)  Utilize electronic tracking technology to obtain or record
7the location of the vehicle, unless the buyer is expressly made
8aware of the existence and use of the tracking technology by the
9buy-here-pay-here dealer, the buyer’s written consent is obtained,
10and either subparagraph (A) or (B), or both, apply:

11(A) The electronic tracking technology is used solely to verify
12and maintain the operational status of the tracking technology, to
13repossess the vehicle, or to locate the vehicle to service the loan
14or keep the loan current.

P3    1(B) The electronic tracking technology is used solely for any
2optional service to the buyer and both of the following conditions
3are met:

4(i) The agreement to utilize electronic tracking technology for
5the optional service is separate from the purchase and sale
6agreement, is not a condition of the purchase or sale agreement
7for the vehicle, and is executed after the completion of the purchase
8or sale agreement for the vehicle.

9(ii) The buyer is permitted to cancel the optional service at any
10point in the future without affecting the sale of the vehicle, and is
11informed of his or her ability to do so.

12(2) Disable the vehicle by using starter interrupt technology,
13unless the buy-here-pay-here dealer complies with all of the
14following provisions:

15(A) Notifies the buyer in writing at the time of the sale that the
16vehicle is equipped with starter interrupt technology, which the
17buy-here-pay-here dealer can use to shut down the vehicle
18remotely.

19(B) The written disclosure provided to the buyer at the time of
20sale informs the buyer that a warning will be providedbegin delete 10 days
21before the use of the starter interrupt technology,end delete
begin insert five days before
22the use of the starter interrupt technology for all weekly payment
23term contracts and 10 days before the use of starter interrupt
24technology on all other contracts,end insert
and a final warning will be
25provided no less than 48 hours before the use of the starter interrupt
26technology to shut down the vehicle remotely and discloses the
27manner and method in which that warning will occur. The dealer
28shall offer the buyer a choice of warning methods, including
29warning from the device, telephone call, email, or text message,
30if available, provided that the warning method does not violate
31applicable state or federal law.

32(C) begin deleteIn end deletebegin insertThe written disclosure provided to the buyer at the time
33of sale informs the buyer that in end insert
the event of an emergency, the
34buyer will be provided with the ability to start a dealer-disabled
35vehicle for no less than 24 hours after the vehicle’s initial
36disablement.

37(b) A buy-here-pay-here dealer shall not require the buyer to
38make payments to the seller in person. For purposes of this
39subdivision, “payments” does not include the downpayment. If
40the buyer tenders timely payment of a deferred downpayment, the
P4    1dealer shall not repossess the vehicle or impose any other charge
2or penalty on the grounds that the payment was not made in person.

3(c) Each violation of this section is a misdemeanor punishable
4by a fine not exceedingbegin delete one thousand dollars ($1,000).end deletebegin insert two
5thousand dollars ($2,000).end insert

6

SEC. 2.  

No reimbursement is required by this act pursuant to
7Section 6 of Article XIII B of the California Constitution because
8the only costs that may be incurred by a local agency or school
9district will be incurred because this act creates a new crime or
10infraction, eliminates a crime or infraction, or changes the penalty
11for a crime or infraction, within the meaning of Section 17556 of
12the Government Code, or changes the definition of a crime within
13the meaning of Section 6 of Article XIII B of the California
14Constitution.



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