Amended in Assembly April 25, 2016

Amended in Assembly March 28, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1570

Introduced by Assembly Member Chang

(Coauthors: Assembly Members Baker, Brough, Gallagher, Cristina Garcia, and Lackey)

(Coauthors: Senators Allen, Anderson, Berryhill, and Nguyen)

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.


AB 1570, as amended, 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 specifiedbegin delete law from that definition of a dealer under specified circumstances.end deletebegin insert law, under specified circumstances, the personality who signs the memorabilia, and a provider of an online marketing platform from the definition of a dealer.end insert

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


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:






SEC. 2.  

Section 1739.7 of the Civil Code is amended to read:



(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 autographed item sold or offered for
12sale in or from this state by a dealer to a consumer for five dollars
13($5) or more.

14(3) “Consumer” means any natural person who purchases a
15collectible from a dealer for personal, family, or household
16purposes. “Consumer” also includes a prospective purchaser
17meeting these criteria.

18(4) (A) “Dealer” means a person who is in the business of
19selling or offering for sale collectibles in or from this state,
20exclusively or nonexclusively, or a person who by his or her
21occupation holds himself or herself out as having knowledge or
22skill peculiar to collectibles, or to whom that knowledge or skill
23may be attributed by his or her employment of an agent or other
24intermediary that by his or her occupation holds himself or herself
P3    1out as having that knowledge or skill. “Dealer” includes an
2auctioneer who sells collectibles at a public auction, and also
3includes persons who are consignors or representatives or agents
4of auctioneers. “Dealer” includes a person engaged in a mail order,
5telephone order,begin insert online,end insert or cable television business for the sale
6of collectibles.

7(B) “Dealer” does not include a pawnbroker licensed pursuant
8to Chapter 3 (commencing with Section 21300) of Division 8 of
9the Financial Code, if the collectible was acquired through a
10foreclosure on a collateral loan.begin insert “Dealer” also does not include
11the personality who signs the memorabilia or a provider of an
12online marketplace platform.end insert

13(5) “Description” means any of the following:

14(A) Any representation in writing, including, but not limited to,
15a representation in an advertisement, brochure, catalog, flyer,
16invoice, sign,begin insert Internet Web page, email,end insert or other commercial or
17promotional material.

18(B) Any oral representation.

19(C) Any representation included in a radio or television
20broadcastbegin insert or online communicationend insert to the public in or from this

22(6) “Limited edition” means any collectible that meets all of
23the following requirements:

24(A) A company has produced a specific quantity of a collectible
25and placed it on the open market.

26(B) The producer of the collectible has posted a notice, at its
27primary place of business, that it will provide any consumer, upon
28request, with a copy of a notice that states the exact number of a
29collectible produced in that series of limited editions.

30(C) The producer makes available, upon request of a consumer,
31evidence that the electronic encoding, films, molds, or plates used
32to create the collectible have been destroyed after the specified
33number of collectibles have been produced.

34(D) The sequence number of the collectible and the number of
35the total quantity produced in the limited edition are printed on
36the collectible.

37(7) “Mint condition” means any collectible sold on the open
38market or through a private transaction that meets all of the
39following requirements:

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

P4    1(B) The item exhibits little or no sign of aging or degradation
2caused by oxidation or exposure to sunlight as a result of its

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

5(8) “Promoter” means a person who arranges, holds, organizes,
6or presents a trade show featuring collectibles, autograph signings,
7or both.

8(9) “Person” means any natural person, partnership, corporation,
9limited liability company, company, trust, association, or other
10entity, however organized.

11(b) Whenever a dealer, in selling or offering to sell to a
12consumer a collectible in or from this state, provides a description
13of that collectible as being autographed, the dealer shall furnish a
14 certificate of authenticity to the consumer at the time of sale. The
15certificate of authenticity shall be in writing, shall be signed by
16the dealer or his or her authorized agent, and shall specify the date
17of sale. The certificate of authenticity shall be in at least 10-point
18boldface type and shall contain the dealer’s true legal name and
19street address. The dealer shall retain a copy of the certificate of
20authenticity for not less than seven years. Each certificate of
21authenticity shall do all of the following:

22(1) Describe the collectible and specify the name of the
23 personality who autographed it.

24(2) Either specify the purchase price and date of sale or be
25accompanied by a separate invoice setting forth that information.

26(3) Contain an express warranty, which shall be conclusively
27presumed to be part of the bargain, of the authenticity of the
28collectible. This warranty shall not be negated or limited by reason
29of the lack of words such as “warranty” or “guarantee” or because
30the dealer does not have a specific intent or authorization to make
31the warranty or because any statement relevant to the collectible
32is or purports to be, or is capable of being, merely the dealer’s

34(4) Specify whether the collectible is offered as one of a limited
35edition and, if so, specify (A) how the collectible and edition are
36numbered and (B) the size of the edition and the size of any prior
37or anticipated future edition, if known. If the size of the edition
38and the size of any prior or anticipated future edition is not known,
39the certificate shall contain an explicit statement to that effect.

P5    1(5) Indicate whether the dealer is surety bonded or is otherwise
2insured to protect the consumer against errors and omissions of
3the dealer and, if bonded or insured, provide proof thereof.

4(6) Indicate the last four digits of the dealer’s resale certificate
5number from the State Board of Equalization.

6(7) Indicate whether the item was autographed in the presence
7of the dealer and specify the date and location of, and the name of
8a witness to, the autograph signing.

9(8) Indicate whether the item was obtained or purchased from
10a third party. If so, indicate the name and address of this third

12(9) Include an identifying serial number that corresponds to an
13identifying number printed on the collectible item, if any. The
14serial number shall also be printed on the sales receipt. If the sales
15receipt is printed electronically, the dealer may manually write the
16serial number on the receipt.

17(c) A dealer shall not represent an item as a collectible if it was
18not autographed by the personality in his or her own hand.

19(d) No dealer shall display or offer for sale a collectible in this
20state unless, at the location where the collectible is offered for sale
21and in close proximity to the collectible merchandise, there is a
22conspicuous sign that reads as follows:

31(e) Any dealer engaged in a mail-order or telephone-orderbegin insert or
32onlineend insert
business for the sale of collectibles in or from this state:

33(1) Shall include the disclosure specified in subdivision (d), in
34type of conspicuous size, in any written advertisement relating to
35a collectible.

36(2) Shall include in each televisionbegin insert or onlineend insert advertisement
37relating to a collectible the following written on-screen message,
38which shall be prominently displayed, easily readable, and clearly
39visible for no less than five seconds, and which shall be repeated
P6    1for five seconds once during each four-minute segment of the
2advertisement following the initial four minutes:
3“A written certificate of authenticity is provided with each
4autographed collectible, as required by law. This dealer may be
5surety bonded or otherwise insured to ensure the authenticity of
6any collectible sold by this dealer.”

7(3) Shall include as part of the oral message of each radio
8advertisement for a collectible the disclosure specified in
9subdivision (d).

10(f) No dealer shall display or offer for sale a collectible in this
11state at any trade show or similar event primarily featuring sales
12of collectibles or other memorabilia that offers onsite admission
13ticket sales unless, at each onsite location where admission tickets
14are sold, there is prominently displayed a specimen example of a
15certificate of authenticity.

16(g) Any consumer injured by the failure of a dealer to provide
17a certificate of authenticity containing the information required by
18this section, or by a dealer’s furnishing of a certificate of
19authenticity that is false, shall be entitled to recover, in addition
20to actual damages, a civil penalty in an amount equal to 10 times
21actual damages, plus court costs, reasonable attorney’s fees,
22interest, and expert witness fees, if applicable, incurred by the
23consumer in the action. The court, in its discretion, may award
24additional damages based on the egregiousness of the dealer’s
25conduct. The remedy specified in this section is in addition to, and
26not in lieu of, any other remedy that may be provided by law.

27(h) No person shall represent himself or herself as a dealer in
28this state unless he or she possesses a valid resale certificate
29number from the State Board of Equalization.

30(i) A dealer may be surety bonded or otherwise insured for
31purposes of indemnification against errors and omissions arising
32from the authentication, sale, or resale of collectibles.

33(j) Whenever a promoter arranges or organizes a trade show
34featuring collectibles and autograph signings, the promoter shall
35notify, in writing, any dealer who has agreed to purchase or rent
36space in this trade show what the promoter will do if any laws of
37this state are violated, including the fact that law enforcement
38officials will be contacted when those laws are violated. This notice
39shall be delivered to the dealer, at his or her registered place of
40business, at the time the agreement to purchase space in the trade
P7    1show is made. The following language shall be included in each

3“As a vendor at this collectibles trade show, you are a
4professional representative of this hobby. As a result, you will be
5required to follow the laws of this state, including laws regarding
6the sale and display of collectibles, as defined in Section 1739.7
7of the Civil Code, forged and counterfeit collectibles and
8autographs, and mint and limited edition collectibles. If you do
9not obey the laws, you may be evicted from this trade show, be
10reported to law enforcement, and be held liable for a civil penalty
11of 10 times the amount of damages.”