BILL ANALYSIS Ó
AB 1570
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CONCURRENCE IN SENATE AMENDMENTS
AB
1570 (Chang)
As Amended June 8, 2016
Majority vote
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|ASSEMBLY: |78-0 |(May 12, 2016) |SENATE: | 37-0 |(August 11, |
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Original Committee Reference: P. & C.P.
SUMMARY: Requires dealers who advertise and sell any type of
autographed collectible to provide a certificate of authenticity
to the purchaser, and generally expands the variety of consumer
protections that currently only apply to autographed sports
memorabilia to cover all such collectibles.
The Senate amendments clarify the definition of a "dealer" of
collectibles to exclude:
1)A licensed pawnbroker, provided that the pawnbroker does not
hold himself or herself out as having knowledge or skill
peculiar to collectibles.
2)The personality who signs the memorabilia.
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3)A provider or operator of an online marketplace, provided that
the 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.
EXISTING LAW:
1)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, as specified. (Civil Code (CC)
Section 1739.7(b))
2)Requires each certificate of authenticity to do all of the
following:
a) Describe the collectible and 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;
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,
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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)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))
FISCAL EFFECT: None. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS: According to the author, there is widespread fraud in
the market for autographed collectibles: "Experts estimate
that? 94% of all autographed Beatles memorabilia is forged, as
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are 76% of Marilyn Monroe and Elvis Presley collectibles. In
the last twenty years, the FBI [Federal Bureau of Investigation]
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."
Under existing law, dealers in signed sports memorabilia must
furnish a certificate of authenticity to the consumer at time of
sale. The certificate provides the consumer with information
about the collectible and the dealer, as well as an express
warranty. Dealers must also display at the sale site and in
advertisements a disclosure regarding the rights of the
consumer. A consumer injured by an omitted or false certificate
may seek actual damages, a civil penalty in an amount equal to
10 times actual damages, plus court costs, reasonable attorney's
fees, interest, expert witness fees, and additional damages for
egregious conduct, incurred by the consumer in the action.
Dealers must have a valid resale certificate number from the
State Board of Equalization and be surety bonded or insured.
This bill would expand those same protections to all forms of
signed collectibles, and also clarify that these protections
apply to collectibles offered for sale online.
Analysis Prepared by:
Hank Dempsey / P. & C.P. / (916) 319-2200 FN:
0003642
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