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 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 tobegin insert amend Section 1739.7 of, and toend 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.


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 providerbegin insert or operatorend insert of an onlinebegin delete marketing platformend deletebegin 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:

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 isbegin insert principallyend insert in the
19business of selling or offering for sale collectibles in or from this
20state, exclusively 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
25out as having that knowledge or skill. “Dealer” includes an
P3    1auctioneer who sells collectibles at a public auction, and also
2includes persons who are consignors or representatives or agents
3of auctioneers. “Dealer” includes a person engaged in a mail order,
4telephone order, online, or cable television business for the sale
5of collectibles.

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

begin insert

(i) A pawnbroker licensed pursuant to Chapter 3 (commencing
13with Section 21300) of Division 8 of the Financial Code, if the
14collectible was acquired through a foreclosure on a collateral
15loan, provided that the pawnbroker does not hold himself or herself
16out 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
19that the online marketplace provider or operator is not principally
20in the business of selling, or offering for sale, collectibles, in or
21from the state, exclusively or nonexclusively, or does not hold itself
22out as having knowledge or skill peculiar to collectibles.

end insert

23(5) “Description” means any of the following:

24(A) Any representation in writing, including, but not limited to,
25a representation in an advertisement, brochure, catalog, flyer,
26invoice, sign, Internet Web page, email, or other commercial or
27promotional material.

28(B) Any oral representation.

29(C) Any representation included in a radio or television
30broadcast or online communication to the public in or from this

32(6) “Limited edition” means any collectible that meets all of
33the following requirements:

34(A) A company has produced a specific quantity of a collectible
35and placed it on the open market.

36(B) The producer of the collectible has posted a notice, at its
37primary place of business, that it will provide any consumer, upon
38request, with a copy of a notice that states the exact number of a
39collectible produced in that series of limited editions.

P4    1(C) The producer makes available, upon request of a consumer,
2evidence that the electronic encoding, films, molds, or plates used
3to create the collectible have been destroyed after the specified
4number of collectibles have been produced.

5(D) The sequence number of the collectible and the number of
6the total quantity produced in the limited edition are printed on
7the collectible.

8(7) “Mint condition” means any collectible sold on the open
9market or through a private transaction that meets all of the
10following requirements:

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

12(B) The item exhibits little or no sign of aging or degradation
13caused by oxidation or exposure to sunlight as a result of its

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

16(8) “Promoter” means a person who arranges, holds, organizes,
17or presents a trade show featuring collectibles, autograph signings,
18or both.

19(9) “Person” means any natural person, partnership, corporation,
20limited liability company, company, trust, association, or other
21entity, however organized.

22(b) Whenever a dealer, in selling or offering to sell to a
23consumer a collectible in or from this state, provides a description
24of that collectible as being autographed, the dealer shall furnish a
25 certificate of authenticity to the consumer at the time of sale. The
26certificate of authenticity shall be in writing, shall be signed by
27the dealer or his or her authorized agent, and shall specify the date
28of sale. The certificate of authenticity shall be in at least 10-point
29boldface type and shall contain the dealer’s true legal name and
30street address. The dealer shall retain a copy of the certificate of
31authenticity for not less than seven years. Each certificate of
32authenticity shall do all of the following:

33(1) Describe the collectible and specify the name of the
34 personality who autographed it.

35(2) Either specify the purchase price and date of sale or be
36accompanied by a separate invoice setting forth that information.

37(3) Contain an express warranty, which shall be conclusively
38presumed to be part of the bargain, of the authenticity of the
39collectible. This warranty shall not be negated or limited by reason
40of the lack of words such as “warranty” or “guarantee” or because
P5    1the dealer does not have a specific intent or authorization to make
2the warranty or because any statement relevant to the collectible
3is or purports to be, or is capable of being, merely the dealer’s

5(4) Specify whether the collectible is offered as one of a limited
6edition and, if so, specify (A) how the collectible and edition are
7numbered and (B) the size of the edition and the size of any prior
8or anticipated future edition, if known. If the size of the edition
9and the size of any prior or anticipated future edition is not known,
10the certificate shall contain an explicit statement to that effect.

11(5) Indicate whether the dealer is surety bonded or is otherwise
12insured to protect the consumer against errors and omissions of
13the dealer and, if bonded or insured, provide proof thereof.

14(6) Indicate the last four digits of the dealer’s resale certificate
15number from the State Board of Equalization.

16(7) Indicate whether the item was autographed in the presence
17of the dealer and specify the date and location of, and the name of
18a witness to, the autograph signing.

19(8) Indicate whether the item was obtained or purchased from
20a third party. If so, indicate the name and address of this third

22(9) Include an identifying serial number that corresponds to an
23identifying number printed on the collectible item, if any. The
24serial number shall also be printed on the sales receipt. If the sales
25receipt is printed electronically, the dealer may manually write the
26serial number on the receipt.

27(c) A dealer shall not represent an item as a collectible if it was
28not autographed by the personality in his or her own hand.

29(d) No dealer shall display or offer for sale a collectible in this
30state unless, at the location where the collectible is offered for sale
31and in close proximity to the collectible merchandise, there is a
32conspicuous sign that reads as follows:

P6    1(e) Any dealer engaged in abegin delete mail-order or telephone-orderend delete
2begin insert mail-order, telephone-order,end insert or online business for the sale of
3 collectibles in or from this state:

4(1) Shall include the disclosure specified in subdivision (d), in
5type of conspicuous size, in any written advertisement relating to
6a collectible.

7(2) Shall include in each television or online advertisement
8relating to a collectible the following written on-screen message,
9which shall be prominently displayed, easily readable, and clearly
10visible for no less than five seconds, and which shall be repeated
11for five seconds once during each four-minute segment of the
12advertisement following the initial four minutes:
13“A written certificate of authenticity is provided with each
14autographed collectible, as required by law. This dealer may be
15surety bonded or otherwise insured to ensure the authenticity of
16any collectible sold by this dealer.”

17(3) Shall include as part of the oral message of each radio
18advertisement for a collectible the disclosure specified in
19subdivision (d).

20(f) No dealer shall display or offer for sale a collectible in this
21state at any trade show or similar event primarily featuring sales
22of collectibles or other memorabilia that offers onsite admission
23ticket sales unless, at each onsite location where admission tickets
24are sold, there is prominently displayed a specimen example of a
25certificate of authenticity.

26(g) Any consumer injured by the failure of a dealer to provide
27a certificate of authenticity containing the information required by
28this section, or by a dealer’s furnishing of a certificate of
29authenticity that is false, shall be entitled to recover, in addition
30to actual damages, a civil penalty in an amount equal to 10 times
31actual damages, plus court costs, reasonable attorney’s fees,
32interest, and expert witness fees, if applicable, incurred by the
33consumer in the action. The court, in its discretion, may award
34additional damages based on the egregiousness of the dealer’s
35conduct. The remedy specified in this section is in addition to, and
36not in lieu of, any other remedy that may be provided by law.

37(h) No person shall represent himself or herself as a dealer in
38this state unless he or she possesses a valid resale certificate
39number from the State Board of Equalization.

P7    1(i) A dealer may be surety bonded or otherwise insured for
2purposes of indemnification against errors and omissions arising
3from the authentication, sale, or resale of collectibles.

4(j) Whenever a promoter arranges or organizes a trade show
5featuring collectibles and autograph signings, the promoter shall
6notify, in writing, any dealer who has agreed to purchase or rent
7space in this trade show what the promoter will do if any laws of
8this state are violated, including the fact that law enforcement
9officials will be contacted when those laws are violated. This notice
10shall be delivered to the dealer, at his or her registered place of
11business, at the time the agreement to purchase space in the trade
12show is made. The following language shall be included in each

14“As a vendor at this collectibles trade show, you are a
15professional representative of this hobby. As a result, you will be
16required to follow the laws of this state, including laws regarding
17the sale and display of collectibles, as defined in Section 1739.7
18of the Civil Code, forged and counterfeit collectibles and
19autographs, and mint and limited edition collectibles. If you do
20not obey the laws, you may be evicted from this trade show, be
21reported to law enforcement, and be held liable for a civil penalty
22of 10 times the amount of damages.”