Bill Text: CA AB1743 | 2015-2016 | Regular Session | Amended
Bill Title: Electronic transactions: motor vehicle finance.
Spectrum: Bipartisan Bill
Status: (Failed) 2016-11-30 - From Senate committee without further action. [AB1743 Detail]
Download: California-2015-AB1743-Amended.html
BILL NUMBER: AB 1743 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 20, 2016
AMENDED IN ASSEMBLY MAY 4, 2016
AMENDED IN ASSEMBLY APRIL 25, 2016
INTRODUCED BY Assembly Member Dababneh
(Coauthor: Assembly Member Wilk)
FEBRUARY 1, 2016
An act to amend Section 1633.3 of, and to add Sections 2984.7,
2984.8, 2986, and 2986.1 to, the Civil Code, relating to electronic
transactions.
LEGISLATIVE COUNSEL'S DIGEST
AB 1743, as amended, Dababneh. Electronic transactions: motor
vehicle finance.
Existing law, the Uniform Electronic Transactions Act (UETA),
generally allows parties to contract to conduct transactions by
electronic means, imposes specified requirements on electronic
transactions in order to comply with the act, and provides specified
protections for electronic transactions conducted pursuant to the
act. Existing law defines and regulates the form and content of
conditional sale contracts and lease contracts for motor vehicles and
excepts these contracts from the application of the UETA.
This bill would delete the exemption from the UETA for conditional
sale and lease contracts for motor vehicles. The bill would require
sellers and lessors to offer buyers and lessees the option of signing
their respective contracts and agreements electronically. The bill
would require certain disclosures to be made in this regard and to be
in a document separate from a conditional sale contract or lease
contract. The bill would prohibit a seller or lessor from charging a
buyer or lessee for a decision not to sign electronically and would
prohibit charging more or less for vehicles based on the decision to
sign electronically. The bill would require that the disclosures
described here be signed at the seller's or lessor's place of
business.
This bill would provide, in the event of a discrepancy
between an electronic contract in the possession of the seller and an
executed contract in possession of the buyer, as specified, that
there is no presumption regarding which is accurate or prevailing.
require an exact copy of the executed contract to be
furnished to the buyer or provided to the lessee at the time the
contract is electronically signed, as specified.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1633.3 of the Civil Code, as amended by Section
1.5 of Chapter 638 of the Statutes of 2015, is amended to read:
1633.3. (a) Except as otherwise provided in subdivisions (b) and
(c), this title applies to electronic records and electronic
signatures relating to a transaction.
(b) This title does not apply to transactions subject to the
following laws:
(1) A law governing the creation and execution of wills, codicils,
or testamentary trusts.
(2) Division 1 (commencing with Section 1101) of the Uniform
Commercial Code, except Sections 1206 and 1306.
(3) Divisions 3 (commencing with Section 3101), 4 (commencing with
Section 4101), 5 (commencing with Section 5101), 8 (commencing with
Section 8101), 9 (commencing with Section 9101), and 11 (commencing
with Section 11101) of the Uniform Commercial Code.
(4) A law that requires that specifically identifiable text or
disclosures in a record or a portion of a record be separately
signed, including initialed, from the record. However, this paragraph
does not apply to Section 1677 or 1678 of this code or Section 1298
of the Code of Civil Procedure.
(c) This title does not apply to any specific transaction
described in Section 17511.5 of the Business and Professions Code,
Section 56.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6,
1689.7, or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
1789.16, or 1793.23 of, Chapter 1 (commencing with Section 1801) of
Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
1917.712, 1917.713, 1950.6, 1983, 2924b, 2924c, 2924f, 2924i, 2924j,
2924.3, or 2937 of, Article 1.5 (commencing with Section 2945) of
Chapter 2 of Title 14 of Part 4 of Division 3 of, Section 2954.5 or
2963 of, Section 3071.5 of, Part 5 (commencing with Section 4000) of
Division 4 of, or Part 5.3 (commencing with Section 6500) of Division
4 of this code, subdivision (b) of Section 18608 or Section 22328 of
the Financial Code, Section 1358.15, 1365, 1368.01, 1368.1, 1371, or
18035.5 of the Health and Safety Code, Section 662, paragraph (2) of
subdivision (a) of Section 663, 664, 667.5, 673, 677, paragraph (2)
of subdivision (a) of Section 678, subdivisions (a) and (b) of
Section 678.1, Section 786 as it applies to individual and group
disability policies, Section 10192.18, 10199.44, 10199.46, 10235.16,
10235.40, 11624.09, or 11624.1 of the Insurance Code, Section 779.1,
10010.1, or 16482 of the Public Utilities Code, or Section 9975 or
11738 of the Vehicle Code. An electronic record may not be
substituted for any notice that is required to be sent pursuant to
Section 1162 of the Code of Civil Procedure. Nothing in this
subdivision shall be construed to prohibit the recordation of any
document with a county recorder by electronic means.
(d) This title applies to an electronic record or electronic
signature otherwise excluded from the application of this title under
subdivision (b) when used for a transaction subject to a law other
than those specified in subdivision (b).
(e) A transaction subject to this title is also subject to other
applicable substantive law.
(f) The exclusion of a transaction from the application of this
title under subdivision (b) or (c) shall be construed only to exclude
the transaction from the application of this title, but shall not be
construed to prohibit the transaction from being conducted by
electronic means if the transaction may be conducted by electronic
means under any other applicable law.
(g) Notwithstanding subdivisions (b) and (c), this title shall
apply to electronic records and electronic signatures relating to
transactions conducted by a person licensed, certified, or registered
pursuant to the Alarm Company Act (Chapter 11.6 (commencing with
Section 7590) of Division 3 of the Business and Professions Code) for
purposes of activities authorized by Section 7599.54 of the Business
and Professions Code.
(h) This section shall remain in effect only until January 1,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date.
SEC. 2. Section 1633.3 of the Civil Code, as amended by Section
2.5 of Chapter 638 of the Statutes of 2015, is amended to read:
1633.3. (a) Except as otherwise provided in subdivisions (b) and
(c), this title applies to electronic records and electronic
signatures relating to a transaction.
(b) This title does not apply to transactions subject to the
following laws:
(1) A law governing the creation and execution of wills, codicils,
or testamentary trusts.
(2) Division 1 (commencing with Section 1101) of the Uniform
Commercial Code, except Sections 1206 and 1306.
(3) Divisions 3 (commencing with Section 3101), 4 (commencing with
Section 4101), 5 (commencing with Section 5101), 8 (commencing with
Section 8101), 9 (commencing with Section 9101), and 11 (commencing
with Section 11101) of the Uniform Commercial Code.
(4) A law that requires that specifically identifiable text or
disclosures in a record or a portion of a record be separately
signed, including initialed, from the record. However, this paragraph
does not apply to Section 1677 or 1678 of this code or Section 1298
of the Code of Civil Procedure.
(c) This title does not apply to any specific transaction
described in Section 17511.5 of the Business and Professions Code,
Section 56.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6,
1689.7, or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
1789.16, or 1793.23 of, Chapter 1 (commencing with Section 1801) of
Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
1917.712, 1917.713, 1950.6, 1983, 2924b, 2924c, 2924f, 2924i, 2924j,
2924.3, or 2937 of, Article 1.5 (commencing with Section 2945) of
Chapter 2 of Title 14 of Part 4 of Division 3 of, Section 2954.5 or
2963 of, Section 3071.5 of Part 5 (commencing with Section 4000) of
Division 4 of, or Part 5.3 (commencing with Section 6500) of Division
4 of this code, subdivision (b) of Section 18608 or Section 22328 of
the Financial Code, Section 1358.15, 1365, 1368.01, 1368.1, 1371, or
18035.5 of the Health and Safety Code, Section 662, 663, 664, 667.5,
673, 677, 678, 678.1, 786 as it applies to individual and group
disability policies, 10192.18, 10199.44, 10199.46, 10235.16,
10235.40, 11624.09, or 11624.1 of the Insurance Code, Section 779.1,
10010.1, or 16482 of the Public Utilities Code, or Section 9975 or
11738 of the Vehicle Code. An electronic record may not be
substituted for any notice that is required to be sent pursuant to
Section 1162 of the Code of Civil Procedure. Nothing in this
subdivision shall be construed to prohibit the recordation of any
document with a county recorder by electronic means.
(d) This title applies to an electronic record or electronic
signature otherwise excluded from the application of this title under
subdivision (b) when used for a transaction subject to a law other
than those specified in subdivision (b).
(e) A transaction subject to this title is also subject to other
applicable substantive law.
(f) The exclusion of a transaction from the application of this
title under subdivision (b) or (c) shall be construed only to exclude
the transaction from the application of this title, but shall not be
construed to prohibit the transaction from being conducted by
electronic means if the transaction may be conducted by electronic
means under any other applicable law.
(g) Notwithstanding subdivisions (b) and (c), this title shall
apply to electronic records and electronic signatures relating to
transactions conducted by a person licensed, certified, or registered
pursuant to the Alarm Company Act (Chapter 11.6 (commencing with
Section 7590) of Division 3 of the Business and Professions Code) for
purposes of activities authorized by Section 7599.54 of the Business
and Professions Code.
(h) This section shall become operative on January 1, 2019.
(i) This section shall remain in effect only until January 1,
2021, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2021, deletes or extends
that date.
SEC. 3. Section 1633.3 of the Civil Code, as added by Section 3.5
of Chapter 638 of the Statutes of 2015, is amended to read:
1633.3. (a) Except as otherwise provided in subdivisions (b) and
(c), this title applies to electronic records and electronic
signatures relating to a transaction.
(b) This title does not apply to transactions subject to the
following laws:
(1) A law governing the creation and execution of wills, codicils,
or testamentary trusts.
(2) Division 1 (commencing with Section 1101) of the Uniform
Commercial Code, except Sections 1206 and 1306.
(3) Divisions 3 (commencing with Section 3101), 4 (commencing with
Section 4101), 5 (commencing with Section 5101), 8 (commencing with
Section 8101), 9 (commencing with Section 9101), and 11 (commencing
with Section 11101) of the Uniform Commercial Code.
(4) A law that requires that specifically identifiable text or
disclosures in a record or a portion of a record be separately
signed, including initialed, from the record. However, this paragraph
does not apply to Section 1677 or 1678 of this code or Section 1298
of the Code of Civil Procedure.
(c) This title does not apply to any specific transaction
described in Section 17511.5 of the Business and Professions Code,
Section 56.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6,
1689.7, or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
Title 5 of Part 2 of Division 3 of, Section 1720, 1785.15, 1789.14,
1789.16, or 1793.23 of, Chapter 1 (commencing with Section 1801) of
Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
1917.712, 1917.713, 1950.6, 1983, 2924b, 2924c, 2924f, 2924i, 2924j,
2924.3, or 2937 of, Article 1.5 (commencing with Section 2945) of
Chapter 2 of Title 14 of Part 4 of Division 3 of, Section 2954.5 or
2963 of, Section 3071.5 of Part 5 (commencing with Section 4000) of
Division 4 of, or Part 5.3 (commencing with Section 6500) of Division
4 of this code, subdivision (b) of Section 18608 or Section 22328 of
the Financial Code, Section 1358.15, 1365, 1368.01, 1368.1, 1371, or
18035.5 of the Health and Safety Code, Section 662, 663, 664, 667.5,
673, 677, 678, 678.1, 786, 10086, 10113.7, 10127.7, 10127.9,
10127.10, 10192.18, 10199.44, 10199.46, 10235.16, 10235.40, 10509.4,
10509.7, 11624.09, or 11624.1 of the Insurance Code, Section 779.1,
10010.1, or 16482 of the Public Utilities Code, or Section 9975 or
11738 of the Vehicle Code. An electronic record may not be
substituted for any notice that is required to be sent pursuant to
Section 1162 of the Code of Civil Procedure. Nothing in this
subdivision shall be construed to prohibit the recordation of any
document with a county recorder by electronic means.
(d) This title applies to an electronic record or electronic
signature otherwise excluded from the application of this title under
subdivision (b) when used for a transaction subject to a law other
than those specified in subdivision (b).
(e) A transaction subject to this title is also subject to other
applicable substantive law.
(f) The exclusion of a transaction from the application of this
title under subdivision (b) or (c) shall be construed only to exclude
the transaction from the application of this title, but shall not be
construed to prohibit the transaction from being conducted by
electronic means if the transaction may be conducted by electronic
means under any other applicable law.
(g) Notwithstanding subdivisions (b) and (c), this title shall
apply to electronic records and electronic signatures relating to
transactions conducted by a person licensed, certified, or registered
pursuant to the Alarm Company Act (Chapter 11.6 (commencing with
Section 7590) of Division 3 of the Business and Professions Code) for
purposes of activities authorized by Section 7599.54 of the Business
and Professions Code.
(h) This section shall become operative on January 1, 2021.
SEC. 4. Section 2984.7 is added to the Civil Code, to read:
2984.7. (a) (1) Prior to the execution of a conditional sale
contract to which Section 1633.3 may apply, the seller shall offer
the buyer the option of signing electronically the conditional sale
contract and agreements as part of the transaction of the vehicle. A
person's consent to opt in to signing electronically may be acquired
in writing or electronically. The consent form for opting in shall
disclose, in writing or electronically, all of the following:
(A) The election to sign electronically the conditional sale
contract and other agreements as part of the transaction of the
vehicle is voluntary.
(B) The buyer may opt out at any time.
(2) The buyer's signature, in writing or electronically, shall be
set forth immediately below the opt-in consent disclosure.
(b) (1) The seller shall not charge a buyer for the decision not
to sign a conditional sale contract electronically.
(2) The seller shall not charge more or less for the purchase of a
vehicle to a buyer opting to sign a conditional sale contract
electronically.
(c) Notwithstanding Section 2981.9, the disclosure of the option
to sign electronically and the buyer's consent to it, if applicable,
as described in subdivision (a), shall be in a document separate from
the conditional sale contract.
(d) In the event of a discrepancy between an electronic copy of
the executed contract in the possession of the seller and a copy of
the executed contract provided to the buyer pursuant to Section
2981.9, there shall be no presumption that either the seller's copy
or the buyer's copy is the accurate or prevailing copy for purposes
of determining the buyer's obligations. Any provision in a contract
that purports to provide otherwise is void.
(d) An exact copy of the contract executed pursuant to Section
1633.3 shall be furnished to the buyer by the seller at the time that
the buyer and the seller have electronically signed it as proscribed
by Section 2981.9.
SEC. 5. Section 2984.8 is added to the Civil Code, to read:
2984.8. A conditional sale contract to which Section 1633.3
applies shall be signed at the seller's place of business.
SEC. 6. Section 2986 is added to the Civil Code, to read:
2986. (a) (1) Prior to the execution of a lease contract to which
Section 1633.3 may apply, the lessor shall offer the lessee the
option of signing electronically the lease contract and agreements as
part of the transaction of the vehicle. A person's consent to opt in
to signing electronically may be acquired in writing or
electronically. The consent form for opting in shall disclose, in
writing or electronically, all of the following:
(A) The election to sign electronically the lease contract and
other agreements as part of the transaction of the vehicle is
voluntary.
(B) The lessee may opt out at any time.
(2) The lessee's signature, in writing or electronically, shall be
set forth immediately below the opt-in consent disclosure.
(b) (1) The lessor shall not charge a lessee for the decision not
to sign a lease contract electronically.
(2) The lessor shall not charge more or less for the lease of a
vehicle to a lessee opting to sign a lease contract electronically.
(c) Notwithstanding Section 2985.8, the disclosure of the option
to sign electronically and the lessee's consent to it, if applicable,
as described in subdivision (a), shall be in a document separate
from the lease contract.
(d) In the event of a discrepancy between an electronic copy of
the executed contract in the possession of the lessor and a copy of
the executed contract provided to the lessee pursuant to subdivision
(g) of Section 2985.8, there shall be no presumption that either the
lessor's copy or the lessee's copy is the accurate or prevailing copy
for purposes of determining the lessee's obligations. Any provision
in a contract that purports to provide otherwise is void.
(d) An exact copy of the lease contract executed pursuant to
Section 1633.3 shall be provided to the lessee at the time of the
electronic signing as proscribed by Section 2985.8.
SEC. 7. Section 2986.1 is added to the Civil Code, to read:
2986.1. A lease contract to which Section 1633.3 applies shall be
signed at the lessor's place of business.
