BILL NUMBER: AB 2517	CHAPTERED  08/28/00

	CHAPTER   258
	FILED WITH SECRETARY OF STATE   AUGUST 28, 2000
	APPROVED BY GOVERNOR   AUGUST 25, 2000
	PASSED THE ASSEMBLY   AUGUST 18, 2000
	PASSED THE SENATE   AUGUST 10, 2000
	AMENDED IN SENATE   JULY 5, 2000
	AMENDED IN SENATE   JUNE 20, 2000
	AMENDED IN SENATE   JUNE 7, 2000
	AMENDED IN ASSEMBLY   MAY 1, 2000
	AMENDED IN ASSEMBLY   APRIL 13, 2000

INTRODUCED BY   Assembly Member Shelley

                        FEBRUARY 24, 2000

   An act to amend Section 1793.26 to the Civil Code, relating to
vehicles.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2517, Shelley.   Motor vehicles:  reacquisition agreements.
   Existing law prohibits any automobile manufacturer, importer, or
distributor who reacquires, or who assists a dealer or lienholder in
reacquiring, a motor vehicle, whether by judgment, decree,
arbitration award, settlement agreement, or voluntary agreement, from
engaging in certain conduct involving the buyer or lessee.
   This bill would prohibit any automobile dealer or lienholder who
reacquires, or who assists in reacquiring, a motor vehicle, whether
by judgment, decree, arbitration award, settlement agreement, or
voluntary agreement, from engaging in certain conduct involving the
buyer or lessee.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1793.26 of the Civil Code is amended to read:
   1793.26.  (a) Any automobile manufacturer, importer, distributor,
dealer, or lienholder who reacquires, or who assists in reacquiring,
a motor vehicle, whether by judgment, decree, arbitration award,
settlement agreement, or voluntary agreement, is prohibited from
doing either of the following:
   (1) Requiring, as a condition of the reacquisition of the motor
vehicle, that a buyer or lessee who is a resident of this state agree
not to disclose the problems with the vehicle experienced by the
buyer or lessee or the nonfinancial terms of the reacquisition.
   (2) Including, in any release or other agreement, whether prepared
by the manufacturer, importer, distributor, dealer, or lienholder,
for signature by the buyer or lessee, a confidentiality clause, gag
clause, or similar clause prohibiting the buyer or lessee from
disclosing information to anyone about the problems with the vehicle,
or the nonfinancial terms of the reacquisition of the vehicle by the
manufacturer, importer, distributor, dealer, or lienholder.
   (b) Any confidentiality clause, gag clause, or similar clause in
such a release or other agreement in violation of this section shall
be null and void as against the public policy of this state.
   (c) Nothing in this section is intended to prevent any
confidentiality clause, gag clause, or similar clause regarding the
financial terms of the reacquisition of the vehicle.