BILL NUMBER: AB 1534AMENDED BILL TEXT AMENDED IN ASSEMBLY MAY 21, 2012 AMENDED IN ASSEMBLY MARCH 14, 2012 INTRODUCED BY Assembly Member Wieckowski (Coauthor: Senator Correa) JANUARY 24, 2012 An act to add Chapter 6 (commencing with Section 11950) to Division 5 of the Vehicle Code, relating to vehicles. LEGISLATIVE COUNSEL'S DIGEST AB 1534, as amended, Wieckowski. Vehicles: dealers: used vehicle sales: labeling requirements. Existing law regulates the accuracy of information provided to consumers during vehicle sales, including the information contained in advertising, brochures, and manuals, as specified. Existing law also requires manufacturers, as specified, to disclose certain information regarding a vehicle's engine, as specified, by affixing a label on the vehicle. A violation of these provisions is an infraction. This bill would require adealerbuy-here-pay-here dealer, as defined, to affix to and to prominently and conspicuously display a label on any used vehicle offered for retail sale that states the reasonable market value of the vehicle. The bill would require the label to contain specified information used to determine the vehicle's reasonable market value and the date the value was determined. The bill would require a buy-here-pay-here dealer to provide to a prospectivepurchaserbuyer of the used vehicle a copy of any information obtained from a nationally recognized pricing guide that the buy-here-pay-here dealer used to determine the reasonable market value of the vehicle. By creating a new crime, the bill would impose a state-mandated local program. 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 1. Chapter 6 (commencing with Section 11950) is added to Division 5 of the Vehicle Code, to read: CHAPTER 6. SALE OF USED VEHICLES 11950. (a) A buy-here-pay-here dealer shall affix a label on any used vehicle being offered for retail sale that states the reasonable market value of that vehicle. The label shall meet all of the following conditions: (1) Be in writing. (2) Be printed with a heading that reads "REASONABLE MARKET VALUE OF THIS VEHICLE" in at least 16-point bold type and text in at least 12-point type. (3) Be located adjacent to the window sticker identifying the equipment provided with the vehicle or, if none, it shall be located prominently and conspicuously on the vehicle so that it is readily readable. (4) Contain the information used to determine the reasonable market value of the vehicle, including, but not limited to, the use of a nationally recognized pricing guide for used vehicles. (5) Contain the date the reasonable market value was determined. (6) Indicate that the reasonable market value is being provided only for comparison shopping and is not the retail sale price or the advertised price of the vehicle. (b) A buy-here-pay-here dealer shall provide to a prospectivepurchaserbuyer of the used vehicle a copy of any information obtained from a nationally recognized pricing guide that the buy-here-pay-here dealer used to determine the reasonable market value of the vehicle. (c) As used in this section: (1) "Reasonable market value" means the average retail value of a used vehicle based on the condition, mileage, year, make, and model of the vehicle, as determined within the last3060 days by a nationally recognized pricing guide that provides used vehicle retail values or pricing reports to vehicle dealers or the public. (2) "Nationally recognized pricing guide" includes, but is not limited to, the Kelley Blue Book (KBB), Edmunds, the Black Book, or the National Automobile Dealers' Association (NADA) Guide. (3) "Buy-here-pay-here dealer" means a seller who does both of the following: (A) Enters into conditional sale contracts, within the meaning of subdivision (a) of Section 2981 of the Civil Code, or lease contracts, within the meaning of subdivision (d) of Section 2985.7 of the Civil Code. (B) Does not routinely assign his or her conditional sale contracts to an unaffiliated third-party finance or leasing source. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.