Bill Text: CA AB596 | 2019-2020 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Motor vehicle defects: service bulletins and consumer electronic authorization.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2019-10-03 - Chaptered by Secretary of State - Chapter 490, Statutes of 2019. [AB596 Detail]
Download: California-2019-AB596-Introduced.html
FEDERAL LAW REQUIRES MANUFACTURERS TO FURNISH THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION (N.H.T.S.A.) WITH BULLETINS INFORMATION REGARDING RECALLS, INCLUDING DESCRIBING ANY DEFECTS IN THEIR VEHICLES.
YOU MAY OBTAIN COPIES OF THESE BULLETINS, THIS INFORMATION REGARDING RECALLS, FOR A FEE,
FREE, FROM EITHER OF THE FOLLOWING:
THE MANUFACTURER (ASK YOUR DEALER FOR THE TOLL-FREE NUMBER)
THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION BY SEARCHING FOR THE VEHICLE’S IDENTIFICATION NUMBER ON: SAFERCAR.GOV
IN ADDITION, CERTAIN CONSUMER PUBLICATIONS PUBLISH THESE BULLETINS
INFORMATION REGARDING RECALLS AND SOME COMPANIES WILL SEND THEM THIS INFORMATION TO YOU, FOR A FEE. FREE.
Bill Title: Motor vehicle defects: service bulletins and consumer electronic authorization.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2019-10-03 - Chaptered by Secretary of State - Chapter 490, Statutes of 2019. [AB596 Detail]
Download: California-2019-AB596-Introduced.html
CALIFORNIA LEGISLATURE—
2019–2020 REGULAR SESSION
| Assembly Bill | No. 596 |
| Introduced by Assembly Member Grayson |
February 14, 2019 |
An act to amend Sections 1633.3, 1795.90, and 1795.91 of the Civil Code, and to amend Section 11814 of the Vehicle Code, relating to motor vehicles.
LEGISLATIVE COUNSEL'S DIGEST
AB 596, as introduced, Grayson.
Motor vehicles: recall notices: transactions.
(1) The Uniform Electronic Transactions Act applies to electronic records and electronic signatures to a transaction, and generally prohibits a record or signature from being denied legal effect or enforceability solely because it is in electronic form. Existing law exempts from that act specific transactions, including transactions involving a motor vehicle manufacturer’s responsibility to furnish notification to the registered owner of the motor vehicle of any defect in the motor vehicle or its safety equipment, and the manufacturer’s duty to correct that defect without charge to the registered owner or by reimbursing the registered owner for the cost of making corrections, as specified.
This bill would delete that exemption from the act.
(2) Existing law
requires a motor vehicle dealer to provide specified conspicuous notice to prospective purchasers and lessees on how to get copies of service bulletins describing any defects in their vehicles in accordance with federal law, from the manufacturer or the National Highway Traffic Safety Administration (NHTSA). Existing law provides that this notice requirement will be deemed to be satisfied if the dealer posts in the showroom or other area a form that must include specified information, including that the bulletins are available for free from the manufacturer or the National Highway Traffic Safety Technical Reference Division at a specified address. Existing law also requires a dealer to disclose to a consumer seeking repairs for a particular condition at its repair shop the principal terms and conditions of the manufacturer’s adjustment program covering the condition if the dealer has received a service bulletin concerning the adjustment program.
This bill would
update these notice requirements to replace references to service bulletins with information regarding recalls. The bill would also modify the form described above to require the form include a statement that the information regarding recalls is available for free from either the manufacturer or from the National Highway Traffic Safety Administration at a specified internet website.
(3) Under existing law, every original vehicle salesperson’s license, and license renewal, is valid for a period of 3 years from the date of issuance unless canceled, suspended, or revoked by the Department of Motor Vehicles. Existing law authorizes a salesperson’s license to be renewed by mail if that license was not renewed by mail for the immediately preceding period.
This bill would instead allow a salesperson’s license to be renewed by mail or online.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 1633.3 of the Civil Code, as amended by Section 2 of Chapter 617 of the Statutes of 2016, 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, Chapter 2b (commencing with Section 2981) or 2d (commencing with Section 2985.7) of Title 14 of Part 4 of Division 3 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 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 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. 2.
Section 1633.3 of the Civil Code, as amended by Section 3 of Chapter 617 of the Statutes of 2016, 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, Chapter 2b (commencing with Section 2981) or 2d (commencing with Section 2985.7) of Title 14 of Part 4 of Division 3 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, Section 664, 673, or 677, paragraph (2) of subdivision (a) of Section 678, Section 678.1 or 786, paragraph (2) of subdivision (a) of Section 10086, or Section 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. 3.
Section 1795.90 of the Civil Code is amended to read:1795.90.
For purposes of this chapter:(a) “Consumer” means the purchaser, other than for purposes of resale, of a motor vehicle, a lessee of a motor vehicle, any person to whom the motor vehicle is transferred during the duration of an express warranty applicable to that motor vehicle, and any person entitled by the terms of the warranty to enforce the obligations of the warranty.
(b) “Manufacturer” means any person, firm, or corporation, whether resident or nonresident, that manufactures or assembles motor vehicles for sale or distribution in this state. In the case of motor vehicles not manufactured in the United States, the term “manufacturer” shall also include any person, firm, or
corporation that is engaged in the business of importing motor vehicles.
(c) “Dealer” means any person, firm, or corporation selling or agreeing to sell in this state one or more new motor vehicles under a retail agreement with a manufacturer, manufacturer branch, distributor, distributor branch, or agent of any of them.
(d) “Adjustment program” means any program or policy that expands or extends the consumer’s warranty beyond its stated limit or under which a manufacturer offers to pay for all or any part of the cost of repairing, or to reimburse consumers for all or any part of the cost of repairing, any condition that may substantially affect vehicle durability, reliability, or performance, other than service provided under a safety or emission-related recall campaign. “Adjustment program” does not include ad hoc adjustments made by a manufacturer on a case-by-case basis.
(e) “Motor vehicle” means a motor vehicle, excluding motorcycles, motor homes, and off-road vehicles, which is registered in this state.
(f) “Lessee” means any person who leases a motor vehicle pursuant to a written lease which provides that the lessee is responsible for repairs to the motor vehicle.
(g) “Service bulletin” “Information regarding recalls” means any notice information issued by a manufacturer and filed with the National Highway
Traffic Safety Administration relating to vehicle durability, reliability, or performance.
SEC. 4.
Section 1795.91 of the Civil Code is amended to read:1795.91.
Dealers shall have the following duties:(a) A dealer shall provide notice to prospective purchasers and lessees that provides information on how to get copies of service bulletins. Nothing in this information regarding recalls. This notice shall not be construed as an admission by the dealer or manufacturer of the existence or nonexistence of a vehicle defect.
The notice shall be deemed sufficient if posted
in the showroom or other area conspicuous to motor vehicle purchasers and written in the following form:
FEDERAL LAW REQUIRES MANUFACTURERS TO FURNISH THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION (N.H.T.S.A.) WITH
YOU MAY OBTAIN COPIES OF
THE MANUFACTURER (ASK YOUR DEALER FOR THE TOLL-FREE NUMBER)
N.H.T.S.A.—TECHNICAL REFERENCE DIVISION
400 SEVENTH STREET, S.W.
ROOM 5110
WASHINGTON, D.C. 20590
202-366-2768
THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION BY SEARCHING FOR THE VEHICLE’S IDENTIFICATION NUMBER ON: SAFERCAR.GOV
IN ADDITION, CERTAIN CONSUMER PUBLICATIONS PUBLISH
(b) A dealer shall disclose to a consumer seeking repairs for a particular condition at its repair shop, the principal terms and conditions of the manufacturer’s adjustment program covering the condition if the dealer has received a service bulletin
information regarding recalls
concerning the adjustment program.
SEC. 5.
Section 11814 of the Vehicle Code is amended to read:11814.
(a) Every original vehicle salesperson’s license issued, and every vehicle salesperson’s license renewed pursuant to subdivision (b), shall be valid for a period of three years from the date of issuance unless canceled, suspended, or revoked by the department.(b) Renewal of a vehicle salesperson’s license may be made prior to the expiration date. In no event may a A vehicle salesperson shall not renew his or her
their license after the date of expiration.
(c) A salesperson’s license may be renewed by mail if that license was not renewed by mail for the immediately preceding period. or online.
(d) A salesperson shall obtain a duplicate license when the original is either lost or mutilated.
