BILL NUMBER: AB 265 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 23, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
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 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. 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.
Existing law makes a violation of this prohibition a
misdemeanor. misdemeanor punishable as a fine not
exceeding $1,000.
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 provided 10 days before the use of the starter
interrupt technology 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 contracts 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. By
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.
By expanding the scope of a crime, the
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 (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 any
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 provisions:
(A) Notifies the buyer in writing at the time of the sale that the
vehicle is equipped with starter interrupt technology, which the
buy-here-pay-here dealer can use to shut down the vehicle remotely.
(B) The written disclosure provided to the buyer at the time of
sale informs the buyer that a warning will be provided 10
days before the use of the starter interrupt technology,
five 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 contracts, 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 and discloses the manner and method in which that warning
will occur. The dealer shall offer the buyer a choice of warning
methods, including warning from the device, telephone call, email, or
text message, if available, provided that the warning method does
not violate applicable state or federal law.
(C) In The written disclosure provided to
the buyer at the time of sale informs the buyer 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.
(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) Each violation of this section is a misdemeanor punishable by
a fine not exceeding one thousand dollars ($1,000).
two thousand dollars ($2,000).
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.