SB 686, as amended, Jackson. Vehicles: vehicle dealers.
Existing law prohibits a licensed dealer from engaging in certain practices, including, among others, making an untrue or misleading statement indicating that a vehicle is equipped with all the factory-installed optional equipment the manufacturer offers. Under existing law, a violation of these provisions is a crime.
This bill would, subject to exceptions, additionally prohibit a dealer from sellingbegin delete, leasing,
renting, loaning,end delete or otherwise transferring ownership at retail of a used vehicle, as specified, if the dealer knows or should have known that the vehicle is subject to a manufacturer’s safety recall, unless the repairs required to correct the defect have been performed on the vehicle.begin delete The bill would, subject to exceptions, additionally prohibit a rental company that is also a dealer from selling or otherwise transferring ownership at retail of a used vehicle, if the rental company knows or should have known that the vehicle is subject to a manufacturer’s safety recall, unless the repairs required to correct the defect have been performed on the vehicle.end delete The bill would define the term “manufacturer’s safety recall.” Because a violation of these provisions would be a crime under other provisions of existing law, the bill would impose a state-mandated local program. The bill would also make a violation of these
provisions actionable under the Consumers Legal Remedies Act and the Unfair Competition Law, and as false advertising.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 390 is added to the Vehicle Code, to read:
begin delete“Manufacturers end deletebegin insert“Manufacturer’s end insertsafety recall” means a
3recall pursuant to Section 30118 of Title 49 of the United States
4Code,begin delete ofend delete the National Highway Traffic and Motor Vehicle Safety
5Act (49 U.S.C. Sec. 30101, et seq.). It does not include service
6campaigns or emission recalls where the manufacturer has not
7issued a safety recall notice to owners of affected vehicles, pursuant
8to Section 30118 of Title 49 of the United States Code.
Section 11713.27 is added to the Vehicle Code, to
10read:
(a) begin deleteExcept for a rental company, as defined in begin insertAend insertbegin insert end insertdealer issued a license under
12Section 1936 of the Civil Code, a end delete
13this article shall not begin deletesell, lease, rent, loan,end deletebegin insert sellend insert or otherwise transfer
14ownership at retail of a used vehicle, as defined in Section 665
15and subject to registration under this code, including any used
16vehicle
advertised as “certified” or any similar descriptive term,
17if the dealer knows or should have known that the vehicle is subject
P3 1to a manufacturer’s safety recall, unless the repairs required to
2correct the defect have been performed on the vehicle. This section
3does not apply to transfers or sales by a dealer to another dealer,
4an auto auction, or a manufacturer.
5(b) For purposes of this section, a dealer is deemed to have
6knowledge of a manufacturer’s safety recall if any of the following
7applies:
8(1) The dealer receives notification from the manufacturer of
9the vehicle about the manufacturer’s safety recall for that vehicle,
10pursuant to subdivision (b) or (c) of Section 30118 or Section
1130119 of Title 49 of the United States Code.
12(2) The dealer is a franchisee of the manufacturer, or was a
13franchisee of the
manufacturer at the time the manufacturer issued
14the notice of the safety recall.
15(3) Prior to thebegin delete sale, lease, loan, rental,end deletebegin insert saleend insert or other transfer of
16ownership at retail of the vehicle, the manufacturer has made
17information about the manufacturer’s safety recall regarding the
18specific vehicle available on the manufacturer’s Internet Web site,
19searchable by the vehicle identification number, stating that the
20manufacturer’s safety recall repairs have not been performed.
21(c) A violation of this section is actionable under the Consumers
22Legal Remedies Act (Title 1.5 (commencing with Section 1750)
23of Part 4 of Division 3 of the Civil Code), the Unfair Competition
24Law (Chapter 5 (commencing with
Section 17200) of Part 2 of
25Division 7 of the Business and Professions Code), Section 17500
26of the Business and Professions Code, and any other applicable
27state or federal law. The rights and remedies provided by this
28section are cumulative and shall not be construed as restricting
29any right or remedy that is otherwise available.
Section 11713.28 is added to the Vehicle Code, to
31read:
(a) A rental company, as defined in Section 1936
33of the Civil Code, that is also a dealer licensed under this article
34shall not sell or otherwise transfer ownership at retail of a used
35vehicle, as defined in Section 665 and subject to registration under
36this code, including any used vehicle advertised as “certified” or
37any similar descriptive term, if the rental company knows or should
38have known that the vehicle is subject to a manufacturer’s safety
39recall, unless the repairs required to correct the defect have been
40performed on the vehicle.
This section does not apply to transfers
P4 1or sales by a rental company to a dealer, an auto auction, or a
2manufacturer.
3(b) For purposes of this section, a rental company is deemed to
4have knowledge of a manufacturer’s safety recall if either of the
5following applies:
6(1) The rental company receives notification from the
7manufacturer of the vehicle
of the manufacturer’s safety recall for
8that vehicle pursuant to subdivision (b) or (c) of Section 30118 or
9Section 30119 of Title 49 of the United States Code.
10(2) Prior to the sale or other transfer of ownership at retail of
11the vehicle, the manufacturer has made information about the
12manufacturer’s safety recall regarding the specific vehicle available
13on the manufacturer’s Internet Web site, searchable by the vehicle
14identification number, stating that the manufacturer’s safety recall
15repairs have not been performed.
16(c) A violation of this section is actionable under the Consumers
17Legal Remedies Act (Title 1.5 (commencing with Section 1750)
18of Part 4 of Division 3 of the Civil Code), the Unfair Competition
19Law (Chapter 5 (commencing with Section 17200) of Part 2 of
20Division 7 of the Business and Professions Code), Section 17500
21of the Business and Professions Code, and any other applicable
22state or federal law. The rights and remedies provided by this
23section
are cumulative and shall not be construed as restricting
24any right or remedy that is otherwise available.
No reimbursement is required by this act pursuant to
27Section 6 of Article XIII B of the California Constitution because
28the only costs that may be incurred by a local agency or school
29district will be incurred because this act creates a new crime or
30infraction, eliminates a crime or infraction, or changes the penalty
31for a crime or infraction, within the meaning of Section 17556 of
32the Government Code, or changes the definition of a crime within
33the meaning of Section 6 of Article XIII B of the California
34Constitution.
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