BILL NUMBER: AB 2324	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 23, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Gatto

                        FEBRUARY 24, 2012

   An act to amend Section 2984.1 of the Civil Code, relating to
vehicle sales contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2324, as amended, Gatto. Vehicle sales contracts.
   Existing law requires every conditional sale contract for the
purchase of a motor vehicle to contain a specified statement
regarding minimum public liability insurance, and a specified warning
regarding coverage for the vehicle being purchased. Existing
Department of Insurance regulations require a selling dealer to
provide to a vehicle purchaser a specified Statement of Insurance
relative to all insurance charged to the purchaser or placed upon the
motor vehicle.
   This bill would require the  contact  
contract  to also contain a statement that any insurance policy
obtained by the dealer will not fulfill the purchaser's legal
obligation  and would delete the warning language. The bill
would also require the Department of Insurance to amend its
regulation to provide that the requirement to provide a Statement of
Insurance shall not apply to a conditional sale contract for the
purchase of a motor vehicle that does not provide for the purchase of
insurance from the selling dealer  .
   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . State-mandated local program: no.


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

  SECTION 1.  Section 2984.1 of the Civil Code is amended to read:
   2984.1.  Every conditional sale contract shall contain a statement
in contrasting red print in at least 8-point bold type which shall
satisfy the requirements of Section 5604 of the Vehicle Code and be
signed or initialed by the buyer, as follows:

THE MINIMUM PUBLIC LIABILITY INSURANCE LIMITS PROVIDED IN LAW MUST
BE MET BY EVERY PERSON WHO PURCHASES A VEHICLE. UNLESS OTHERWISE
SPECIFIED, ANY INSURANCE POLICY OBTAINED BY THE DEALER WILL NOT
FULFILL YOUR LEGAL OBLIGATION. IF YOU ARE UNSURE WHETHER OR NOT YOUR
CURRENT INSURANCE POLICY WILL COVER YOUR NEWLY ACQUIRED VEHICLE IN
THE EVENT OF AN ACCIDENT, OR WHETHER THAT COVERAGE IS SUFFICIENT FOR
YOUR NEEDS, YOU SHOULD CONTACT YOUR INSURANCE AGENT.

 WARNING: 
 YOUR   PRESENT POLICY MAY NOT COVER COLLISION DAMAGE
OR MAY NOT PROVIDE FOR FULL REPLACEMENT COSTS FOR THE VEHICLE BEING
PURCHASED. 

THE BUYER SHALL SIGN TO ACKNOWLEDGE THAT HE/SHE UNDERSTANDS THESE
PUBLIC LIABILITY TERMS AND CONDITIONS.
s/s ____________.

   No person shall print for use as a sales contract form, any form
that does not comply with this section. 
  SEC. 2.    The Department of Insurance shall amend
Section 2114 of Title 10 of the California Code of Regulations to
provide that the requirements of that section shall not apply to a
conditional sale contract for the purchase of a motor vehicle that
does not provide for the purchase of insurance from the selling
dealer.