California Legislature—2015–16 Regular Session

Assembly BillNo. 1570


Introduced by Assembly Member Chang

January 4, 2016


An act to amend the heading of Title 1.1A (commencing with Section 1739.7) of Part 4 of Division 3 of, and to amend Section 1739.7 of, the Civil Code, relating to collectibles.

LEGISLATIVE COUNSEL’S DIGEST

AB 1570, as introduced, Chang. Collectibles: sale of autographed memorabilia.

Existing law regulates the sale or offer to sell by a dealer to a consumer of a collectible in or from this state, as specified. Existing law defines the term “collectible” to mean an autographed sports item, as specified, sold or offered for sale in or from this state by a dealer to a consumer for $5 or more. Existing law defines a “dealer” as, among other things, a person who is in the business of selling or offering for sale collectibles in or from this state, or a person who by his or her occupation holds himself or herself out as having knowledge or skill peculiar to collectibles.

Existing law provides for the regulation of pawnbrokers and makes it unlawful for a person to engage in the business of a pawnbroker without a license issued by the chief of police, the sheriff, or where appropriate, the police commission.

This bill would instead define the term “collectible” to mean all autographed items, whether or not sports related, as specified, and would make conforming changes to the provisions regulating the sale or offer to sell by a dealer to a consumer of a collectible in this state. The bill would exclude a pawnbroker licensed pursuant to a specified law from that definition of a dealer under specified circumstances.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

The heading of Title 1.1A (commencing with
2Section 1739.7) of Part 4 of Division 3 of the Civil Code is
3amended to read:

4 

5Title 1.1A.  AUTOGRAPHEDbegin delete SPORTSend delete MEMORABILIA

6

 

7

SEC. 2.  

Section 1739.7 of the Civil Code is amended to read:

8

1739.7.  

(a) As used in this section:

9(1) “Autographed” means bearing the actual signature of a
10personality signed by that individual’s own hand.

11(2) “Collectible” means an autographedbegin delete sports item, including,
12but not limited to, a photograph, book, ticket, plaque, sports
13program, trading card, item of sports equipment or clothing, or
14other sports memorabiliaend delete
begin insert itemend insert sold or offered for sale in or from
15this state by a dealer to a consumer for five dollars ($5) or more.

16(3) “Consumer” means any natural person who purchases a
17collectible from a dealer for personal, family, or household
18purposes. “Consumer” also includes a prospective purchaser
19meeting these criteria.

20(4) begin insert(A)end insertbegin insertend insert “Dealer” means a person who is in the business of
21selling or offering for sale collectibles in or from this state,
22exclusively or nonexclusively, or a person who by his or her
23occupation holds himself or herself out as having knowledge or
24skill peculiar to collectibles, or to whom that knowledge or skill
25may be attributed by his or her employment of an agent or other
26intermediary that by his or her occupation holds himself or herself
27out as having that knowledge or skill. “Dealer” includes an
28auctioneer who sells collectibles at a public auction, and also
29includes persons who are consignors or representatives or agents
30of auctioneers. “Dealer” includes a person engaged in a mail order,
31telephone order, or cable television business for the sale of
32collectibles.

begin insert

P3    1(B) “Dealer” does not include a pawnbroker licensed pursuant
2to Chapter 3 (commencing with Section 21300) of Division 8 of
3the Financial Code, if the collectible was acquired through a
4foreclosure on a collateral loan.

end insert

5(5) “Description” means any of the following:

6(A) Any representation in writing, including, but not limited to,
7a representation in an advertisement, brochure, catalog, flyer,
8invoice, sign, or other commercial or promotional material.

9(B) Any oral representation.

10(C) Any representation included in a radio or television
11broadcast to the public in or from this state.

12(6) “Limited edition” means any collectible that meets all of
13the following requirements:

14(A) A company has produced a specific quantity of a collectible
15and placed it on the open market.

16(B) The producer of the collectible has posted a notice, at its
17primary place of business, that it will provide any consumer, upon
18request, with a copy of a notice that states the exact number of a
19collectible produced in that series of limited editions.

20(C) The producer makes available, upon request of a consumer,
21evidence that the electronic encoding, films, molds, or plates used
22to create the collectible have been destroyed after the specified
23number of collectibles have been produced.

24(D) The sequence number of the collectible and the number of
25the total quantity produced in the limited edition are printed on
26the collectible.

27(7) “Mint condition” means any collectible sold on the open
28market or through a private transaction that meets all of the
29following requirements:

30(A) The item has never been circulated, used, or worn.

31(B) The item exhibits little or no sign of aging or degradation
32caused by oxidation or exposure to sunlight as a result of its
33display.

34(C) The item is otherwise free from creases, blemishes, or marks.

35(8) “Promoter” means a person who arranges, holds, organizes,
36or presents a trade show featuring collectibles, autograph signings,
37or both.

38(9) “Person” means any natural person, partnership, corporation,
39limited liability company, company, trust, association, or other
40entity, however organized.

P4    1(b) Whenever a dealer, in selling or offering to sell to a
2consumer a collectible in or from this state, provides a description
3of that collectible as being autographed, the dealer shall furnish a
4 certificate of authenticity to the consumer at the time of sale. The
5certificate of authenticity shall be in writing, shall be signed by
6the dealer or his or her authorized agent, and shall specify the date
7of sale. The certificate of authenticity shall be in at least 10-point
8boldface type and shall contain the dealer’s true legal name and
9street address. The dealer shall retain a copy of the certificate of
10authenticity for not less than seven years. Each certificate of
11authenticity shall do all of the following:

12(1) Describe the collectible and specify the name of thebegin delete sportsend delete
13 personality who autographed it.

14(2) Either specify the purchase price and date of sale or be
15accompanied by a separate invoice setting forth that information.

16(3) Contain an express warranty, which shall be conclusively
17presumed to be part of the bargain, of the authenticity of the
18collectible. This warranty shall not be negated or limited by reason
19of the lack of words such as “warranty” or “guarantee” or because
20the dealer does not have a specific intent or authorization to make
21the warranty or because any statement relevant to the collectible
22is or purports to be, or is capable of being, merely the dealer’s
23opinion.

24(4) Specify whether the collectible is offered as one of a limited
25edition and, if so, specify (A) how the collectible and edition are
26numbered and (B) the size of the edition and the size of any prior
27or anticipated future edition, if known. If the size of the edition
28and the size of any prior or anticipated future edition is not known,
29the certificate shall contain an explicit statement to that effect.

30(5) Indicate whether the dealer is surety bonded or is otherwise
31insured to protect the consumer against errors and omissions of
32the dealer and, if bonded or insured, provide proof thereof.

33(6) Indicate the last four digits of the dealer’s resale certificate
34number from the State Board of Equalization.

35(7) Indicate whether the item was autographed in the presence
36of the dealer and specify the date and location of, and the name of
37a witness to, the autograph signing.

38(8) Indicate whether the item was obtained or purchased from
39a third party. If so, indicate the name and address of this third
40party.

P5    1(9) Include an identifying serial number that corresponds to an
2identifying number printed on the collectible item, if any. The
3serial number shall also be printed on the sales receipt. If the sales
4receipt is printed electronically, the dealer may manually write the
5serial number on the receipt.

6(c) No dealer shall represent an item as a collectible if it was
7not autographed by thebegin delete sportsend delete personality in his or her own hand.

8(d) No dealer shall display or offer for sale a collectible in this
9state unless, at the location where the collectible is offered for sale
10and in close proximity to the collectible merchandise, there is a
11conspicuous sign that reads as follows:
12“SALE OF AUTOGRAPHEDbegin delete SPORTSend delete MEMORABILIA: AS
13REQUIRED BY LAW, A DEALER WHO SELLS TO A
14CONSUMER ANYbegin delete SPORTSend delete MEMORABILIA DESCRIBED
15AS BEING AUTOGRAPHED MUST PROVIDE A WRITTEN
16CERTIFICATE OF AUTHENTICITY AT THE TIME OF SALE.
17THIS DEALER MAY BE SURETY BONDED OR OTHERWISE
18INSURED TO ENSURE THE AUTHENTICITY OF ANY
19COLLECTIBLE SOLD BY THIS DEALER.”

20(e) Any dealer engaged in a mail-order or telephone-order
21business for the sale of collectibles in or from this state:

22(1) Shall include the disclosure specified in subdivision (d), in
23type of conspicuous size, in any written advertisement relating to
24a collectible.

25(2) Shall include in each television advertisement relating to a
26collectible the following written on-screen message, which shall
27be prominently displayed, easily readable, and clearly visible for
28no less than five seconds, and which shall be repeated for five
29seconds once during each four-minute segment of the advertisement
30following the initial four minutes:
31“A written certificate of authenticity is provided with each
32autographed collectible, as required by law. This dealer may be
33surety bonded or otherwise insured to ensure the authenticity of
34any collectible sold by this dealer.”

35(3) Shall include as part of the oral message of each radio
36advertisement for a collectible the disclosure specified in
37subdivision (d).

38(f) No dealer shall display or offer for sale a collectible in this
39state at any trade show or similar event primarily featuring sales
40of collectibles or otherbegin delete sportsend delete memorabilia that offers onsite
P6    1admission ticket sales unless, at each onsite location where
2admission tickets are sold, there is prominently displayed a
3specimen example of a certificate of authenticity.

4(g) Any consumer injured by the failure of a dealer to provide
5a certificate of authenticity containing the information required by
6this section, or by a dealer’s furnishing of a certificate of
7authenticity that is false, shall be entitled to recover, in addition
8to actual damages, a civil penalty in an amount equal to 10 times
9actual damages, plus court costs, reasonable attorney’s fees,
10interest, and expert witness fees, if applicable, incurred by the
11consumer in the action. The court, in its discretion, may award
12additional damages based on the egregiousness of the dealer’s
13conduct. The remedy specified in this section is in addition to, and
14not in lieu of, any other remedy that may be provided by law.

15(h) No person shall represent himself or herself as a dealer in
16this state unless he or she possesses a valid resale certificate
17number from the State Board of Equalization.

18(i) A dealer may be surety bonded or otherwise insured for
19purposes of indemnification against errors and omissions arising
20from the authentication, sale, or resale of collectibles.

21(j) Whenever a promoter arranges or organizes a trade show
22featuring collectibles and autograph signings, the promoter shall
23notify, in writing, any dealer who has agreed to purchase or rent
24space in this trade show what the promoter will do if any laws of
25this state are violated, including the fact that law enforcement
26officials will be contacted when those laws are violated. This notice
27shall be delivered to the dealer, at his or her registered place of
28business, at the time the agreement to purchase space in the trade
29show is made. The following language shall be included in each
30notice:

31“As a vendor at this collectibles trade show, you are a
32professional representative of this hobby. As a result, you will be
33required to follow the laws of this state, including laws regarding
34the sale and display of collectibles, as defined in Section 1739.7
35of the Civil Code, forged and counterfeit collectibles and
36autographs, and mint and limited edition collectibles. If you do
37not obey the laws, you may be evicted from this trade show, be
P7    1reported to law enforcement, and be held liable for a civil penalty
2of 10 times the amount of damages.”



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