California Assembly Bill AB265 Amended / Bill

 BILL NUMBER: AB 265AMENDED BILL TEXT AMENDED IN ASSEMBLY MARCH 9, 2015 INTRODUCED BY Assembly Member Holden FEBRUARY 10, 2015 An act to amend Section 2983.37 of the Civil Code, relating to consumer protection. LEGISLATIVE COUNSEL'S DIGEST AB 265, as amended, Holden. Consumer protection: buy-here-pay-here dealers. Existing law requires buy-here-pay-here dealers, as defined, to provide buyers with specific warranties, disclosures, and services. Existing law prohibits a buy-here-pay-here dealer from locating a vehicle with electronic tracking technology or disabling a vehicle with starter interrupt technology unless specified requirements are met, and makes a violation of this prohibition a misdemeanor. This bill would prohibit a buy-here-pay-here dealer from disabling a vehicle with starter interrupt technology unless the dealer also provides the buyer with specific written disclosures  and communications  30 days before the dealer disables the  vehicle.   vehicle, as specified. The bill would also require a buy-here-pay-here dealer, if that dealer negotiated a contract pursuant to these provisions in specified languages, to deliver those written disclosures in the language in which the contract was negotiated.  By expanding the scope of a crime, this 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. Section 2983.37 of the Civil Code is amended to read: 2983.37. (a) After a sale of a vehicle under this chapter, a buy-here-pay-here dealer, as defined in Section 241 of the Vehicle Code, shall not do any of the following: (1) Utilize electronic tracking technology to obtain or record the location of the vehicle, unless the buyer is expressly made aware of the existence and use of the tracking technology by the buy-here-pay-here dealer, the buyer's written consent is obtained, and  either  subparagraph  (A) or   (A),  (B), or both, apply: (A) The electronic tracking technology is used solely to verify and maintain the operational status of the tracking technology, to repossess the vehicle, or to locate the vehicle to service the loan or keep the loan current. (B) The electronic tracking technology is used solely for an optional service to the buyer and both of the following conditions are met: (i) The agreement to utilize electronic tracking technology for the optional service is separate from the purchase and sale agreement, is not a condition of the purchase or sale agreement for the vehicle, and is executed after the completion of the purchase or sale agreement for the vehicle. (ii) The buyer is permitted to cancel the optional service at any point in the future without affecting the sale of the vehicle, and is informed of his or her ability to do so. (2) Disable the vehicle by using starter interrupt technology, unless the buy-here-pay-here dealer complies with all of the following: (A) At the time of the sale, the buy-here-pay-here dealer provides the buyer written notice of both of the following: (i) That the vehicle is equipped with starter interrupt technology that the buy-here-pay-here dealer can use to shut down the vehicle remotely. (ii) That a warning will be provided no less than 48 hours before the use of the starter interrupt technology to shut down the vehicle remotely and the manner and method in which that warning will occur. The buy-here-pay-here dealer shall offer the buyer a choice of warning methods, including warning from the device, telephone call,  e-mail,   email,  or text message, if available, provided that the warning method does not violate applicable state or federal law. (B) At least 30 days prior to disabling the vehicle for the buyer' s failure to tender timely loan repayments, the buy-here-pay-here dealer  provides the buyer written notice of all   does both  of the following:  (i) Provides the buyer written notice of all of the following:   (i)   (I)  That the loan is past due.  (ii) That the buy-here-pay-here dealer may use starter interrupt technology to disable the vehicle within 30 days of the mailing date of the notice.   (iii) The amount currently due on the loan.   (II) The amount currently due on the loan.   (iv)   (III)  The acceptable forms of payment of the amount currently  due.   due, so long as that form of payment is not prohibited by subdivision (b).   (IV) That the buy-here-pay-here dealer may use starter interrupt technology to disable the vehicle as of 30 days from the mailing date of the notice.   (v)   (V)  That the vehicle will not be disabled if the buyer tenders the amount  currently due on the loan to the buy-here-pay-here dealer in an   specified in subclause (II) to the dealer using an  acceptable form of payment within 30 days of the mailing date of the notice.  (vi)   (VI)  That, if the  loan   amount due  is not paid, a warning will be provided using the warning method specified at the time of sale to the buyer no less than 48 hours before the use of the starter interrupt technology to shut down the vehicle remotely.  (ii) Communicate, within 48 hours of mailing the notice required by clause (i), to the buyer that the notice has been sent. The buy-here-pay-here dealer shall offer the buyer at the time of sale a choice of communication methods, including, a telephone call, email, or text message, if available, provided that the warning method does not violate applicable state or federal law. The communication required by this clause shall provide the buyer with notice of the following:   (I) That the loan is past due.   (II) The amount currently due on the loan.   (III) The acceptable forms of payment of the amount currently due, so long as that form of payment is not prohibited by subdivision (b).   (IV) That written notice of the past due loan has been mailed to the buyers last known address and provide the mailing date of the notice.   (V) That the buy-here-pay-here dealer may use starter interrupt technology to disable the vehicle as of 30 days from the mailing date of the notice.   (VI) That the vehicle will not be disabled if the buyer tenders the amount specified in subclause (II) to the dealer using an acceptable form of payment within 30 days of the mailing date of the notice.   (VII) That, should the loan not be paid, a warning will be provided to the buyer, using the method specified at the time of sale, no less than 48 hours before the use of the starter interrupt technology to shut down the vehicle remotely.   (C) A buy-here-pay-here dealer shall keep a physical copy of all notices sent pursuant to clause (i) of subparagraph (B) for at least one year following the mailing date of that notice.   (D) Any buy-here-pay-here dealer who negotiated any contract pursuant to this chapter primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean, orally or in writing, shall deliver the notice required by subparagraph (B) to the other party to the contract in the language in which the contract was negotiated.   (C)   (E)  In the event of an emergency, the buyer will be provided with the ability to start a dealer-disabled vehicle for no less than 24 hours after the vehicle's initial disablement. (b) A buy-here-pay-here dealer shall not require the buyer to make payments to the seller in person. For purposes of this subdivision, "payments" does not include the downpayment. If the buyer tenders timely payment of a deferred downpayment, the dealer shall not repossess the vehicle or impose any other charge or penalty on the grounds that the payment was not made in person. (c) A violation of this section is a misdemeanor punishable by a fine not exceeding one thousand dollars ($1,000). 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.