Amended in Senate June 8, 2016

Amended in Assembly April 25, 2016

Amended in Assembly March 28, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 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 begin insert amend Section 1739.7 of, and to end insert 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 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 specified law, under specified circumstances, the personality who signs the memorabilia, and a provider begin insert or operator end insert of an online begin delete marketing platform end delete begin insert marketplace, as specified, end insert from the definition of a dealer.

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

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

SECTION 1.  

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

 

Title 1.1A.  AUTOGRAPHED MEMORABILIA

 

SEC. 2.  

Section 1739.7 of the Civil Code is amended to read:

1739.7.  

(a) As used in this section:

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

(2) “Collectible” means an autographed item sold or offered for
sale in or from this state by a dealer to a consumer for five dollars
($5) or more.

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

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

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

begin insert

(i) A pawnbroker licensed pursuant to Chapter 3 (commencing
with Section 21300) of Division 8 of the Financial Code, if the
collectible was acquired through a foreclosure on a collateral
loan, provided that the pawnbroker does not hold himself or herself
out as having knowledge or skill peculiar to collectibles.

end insert begin insert

(ii) The personality who signs the memorabilia.

end insert begin insert

(iii) A provider or operator of an online marketplace, provided
that the online marketplace provider or operator is not principally
in the business of selling, or offering for sale, collectibles, in or
from the state, exclusively or nonexclusively, or does not hold itself
out as having knowledge or skill peculiar to collectibles.

end insert

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

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

(B) Any oral representation.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(e) Any dealer engaged in a begin delete mail-order or telephone-order end delete
begin insert mail-order, telephone-order, end insert or online business for the sale of
collectibles in or from this state:

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

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

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

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

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

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

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

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

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