BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1570|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
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CONSENT
Bill No: AB 1570
Author: Chang (R), et al.
Amended: 6/8/16 in Senate
Vote: 21
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 9-0, 6/13/16
AYES: Hill, Bates, Block, Gaines, Galgiani, Hernandez,
Jackson, Mendoza, Wieckowski
SENATE JUDICIARY COMMITTEE: 7-0, 6/28/16
AYES: Jackson, Moorlach, Anderson, Hertzberg, Leno, Monning,
Wieckowski
ASSEMBLY FLOOR: 78-0, 5/12/16 (Consent) - See last page for
vote
SUBJECT: Collectibles: sale of autographed memorabilia
SOURCE: Author
DIGEST: This bill requires dealers who advertise and sell any
type of autographed collectible to provide a certificate of
authenticity to the purchaser and generally expands a variety of
consumer protections that currently only apply to autographed
sports memorabilia to cover all such collectibles.
ANALYSIS:
Existing law:
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1) Regulates the sale or offer to sell by a dealer to a
consumer of a sports collectible in or from this state.
(Civil Code (CC) § 1739.7)
2) Requires a dealer, in selling or offering to sell to a
consumer an autographed sports collectible in or from this
state, to furnish a certificate of authenticity to the
consumer at the time of sale. The certificate of
authenticity must be in writing, be signed by the dealer or
his or her authorized agent, specify the date of sale, be in
at least 10-point boldface type and contain the dealer's true
legal name and street address. The dealer must retain a copy
of the certificate of authenticity for at least seven years.
(CC § 1739.7(b))
3) Requires each certificate of authenticity to do all of the
following:
a) Describe the collectible and specify the name of the
sports personality who autographed it;
b) Either specify the purchase price and date of sale or
be accompanied by a separate invoice setting forth that
information;
c) Contain an express warranty, which shall be
conclusively presumed to be part of the bargain, of the
authenticity of the collectible, as specified;
d) Specify whether the collectible is offered as one of a
limited edition and, if so, specify how the collectible
and edition are numbered; and the size of the edition and
the size of any prior or anticipated future edition, as
specified;
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e) 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;
f) Indicate the last four digits of the dealer's resale
certificate number from the State Board of Equalization;
g) 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;
h) Indicate whether the item was obtained or purchased
from a third party, and the name and address of this third
party, if applicable; and
i) Include an identifying serial number that corresponds
to an identifying number printed on the collectible item,
if any, which shall also be printed on the sales receipt.
(CC § 1739.7(b))
1) Prohibits a dealer from representing an item as a
collectible if it was not autographed by the sports
personality in his or her own hand. (CC § 1739.7(c))
2) Prohibits a dealer from displaying or offering for sale a
collectible in this state unless he or she displays a
conspicuous sign at the location where the collectible is
offered for sale and in close proximity to the collectible
merchandise, as specified. (CC § 1739.7(d))
3) Requires any dealer engaged in a mail-order or
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telephone-order business for the sale of collectibles in or
from this state to make specified disclosures in any written,
radio or televised advertisement. (CC § 1739.7(e))
4) Prohibits a dealer from displaying or offering for sale a
collectible in this state at any trade show or similar event
primarily featuring sales of collectibles or other sports
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. (CC § 1739.7(f))
5) Entitles any consumer injured by the failure of a dealer to
provide a valid certificate 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, plus
additional damages based on the egregiousness of the dealer's
conduct. (CC § 1739.7(g))
6) Prohibits a person from representing 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. (CC § 1739.7(h))
7) Requires a promoter arranging or organizing a trade show
featuring collectibles and autograph signings to notify in
writing any dealer who has agreed to purchase or rent space
in this trade show as to their legal responsibilities, as
specified. (CC § 1739.7(j))
This bill:
1) Expands existing consumer protections and requirements
pertaining to the trade in autographed sports collectibles,
including specified requirements for a certificate of
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authenticity and dealer disclosures, by deleting the
reference to "sports", thereby making the existing provisions
apply to all autographed collectibles.
2) Expands the definition of a "collectible" to mean any
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) Revises the definition of "dealer" to any person who is
principally in the business of selling or offering for sale
collectibles in or from this state.
4) Expands the definition of a "dealer" to include a person
engaged in an online business for the sale of collectibles.
5) Excludes from the definition of a "dealer" a licensed
pawnbroker 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.
6) Excludes from the definition of a "dealer" the personality
who signs the memorabilia.
7) Excludes from the definition of "dealer" an 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 this
state, exclusively or nonexclusively, or does not hold itself
out as having knowledge or skill peculiar to collectibles.
8) Expands the definition of "description" to include
representations on an Internet Web page or in an email, or a
representation in an online communication to the public in or
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from California.
9) Makes other technical or clarifying amendments.
Background
According to the author, there is widespread fraud in the market
for autographed collectibles, "Experts estimate that?94 percent
of all autographed Beatles memorabilia is forged, as are 76
percent of Marilyn Monroe and Elvis Presley collectibles. In
the last twenty years, the FBI instituted two major
investigations uncovering millions in forged sports,
entertainment and historical autographed memorabilia - both
cases involved operations in California. During the most recent
investigation, the FBI estimated forged memorabilia 'comprises
between $500,000,000 and $900,000,000' of the overall market.
"As recently as 2015, the widow of The Jimi Hendrix Experience
drummer Mitch Mitchell warned that many items sold online that
purported to have been signed by Jimi Hendrix were really fake.
While Star Wars icon Mark Hamill took to Twitter to tell fans
which of their signed collectibles were forged and which were
genuine."
FISCAL EFFECT: Appropriation: No Fiscal
Com.:NoLocal: No
SUPPORT: (Verified7/12/16)
California Police Chiefs Association
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Consumer Federation of California
Genuine COA
Motion Picture Association of America, Inc.
Screen Actors Guild-American Federation of Television and Radio
Artists, AFL-CIO
One individual
OPPOSITION: (Verified7/12/16)
None received
ARGUMENTS IN SUPPORT: Supporters state that forged
autographs are estimated to account for $100 million of the
approximately $1 billion per year autographed memorabilia market
in the United States. According to the Motion Picture
Association of America, Inc., this bill is consistent with
efforts to protect motion pictures and television from theft and
to ensure the integrity of these high value productions for the
benefit of viewers and consumers.
ASSEMBLY FLOOR: 78-0, 5/12/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Calderon,
Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper,
Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines,
Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,
Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger
Hernández, Holden, Irwin, Jones, Kim, Lackey, Levine, Linder,
Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,
Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,
Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,
Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Burke, Jones-Sawyer
Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104
7/29/16 10:48:57
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