California AB 1215 Annotated

California AB 1215 : Annotated Sections Compiled by VinAudit.com Section 1, 2

	1	+ SECTION 1. The Legislature finds and declares all of the
	2	+ following:
	3	+ (a) There are more than 30 million vehicles registered in the
	4	+ State of California. Maintenance by the Department of Motor Vehicles
	5	+ of accurate registration records for those vehicles is of vital
	6	+ importance to registered owners, legal owners that hold liens on
	7	+ vehicles, law enforcement agencies that police vehicles, tax
	8	+ collection agencies that collect taxes and fees assessed on vehicles,
	9	+ and pollution control agencies that regulate emissions produced by
	10	+ vehicles.
	11	+ (b) As authorized by the Legislature in 2001, the department
	12	+ administers the Business Partner Automation Program, pursuant to
	13	+ Section 1685 of the Vehicle Code, to improve the quality of
	14	+ registration products and services by licensing qualified private
	15	+ industry partners to provide secure electronic portals to licensed
	16	+ dealers and registration services so that they may perform required
	17	+ registration tasks electronically.
	18	+ (c) Electronic vehicle registration under the Business Partner
	19	+ Automation Program results in multiple benefits. The department
	20	+ benefits through increased accuracy of records that are recorded and
	21	+ transmitted electronically and also benefits through processing
	22	+ efficiencies that reduce wait times in field offices for
	23	+ nonelectronic transactions. Electronic registration also aids law
	24	+ enforcement, other government agencies, and consumers by accelerating
	25	+ the issuance of permanent license plates from a period of weeks or
	26	+ months to days.
	27	+ (d) It is the intent of the Legislature in enacting this act to
	28	+ further increase the registration benefits and efficiencies of the
	29	+ department’s Business Partner Automation Program by requiring all
	30	+ eligible vehicles sold or leased by a new motor vehicle dealer to be
	31	+ registered electronically. It is also the intent of the Legislature
	32	+ that the department continues to improve and expand the quality and
	33	+ efficiency of the Business Partner Automation Program to permit
	34	+ existing department personnel to increase customer service in other
	35	+ areas without a workforce reduction.
	36	+ SEC. 2. The Legislature finds and declares all of the following:
	37	+ (a) The electronic National Motor Vehicle Title Information System
	38	+ (NMVTIS) is a national federally mandated vehicle history database
	39	+ maintained by the United States Department of Justice to ensure that
	40	+ states, law enforcement agencies, and consumers have access to
	41	+ vehicle titling, branding, and other information that enable them to
	42	+ verify the accuracy and legality of motor vehicle titles before
	43	+ transfer or registration of the vehicle occurs.
	44	+ (b) According to a cost-benefit analysis commissioned by the
	45	+ United States Department of Justice, full implementation of NMVTIS
	46	+ will save the American public between $4.3 billion and $11.7 billion
	47	+ by helping to curb automobile-related salvage fraud, theft, and
	48	+ related crimes.
	49	+ (c) All automobile insurers, self-insured entities, salvage pools,
	50	+ automobile auctions, and recyclers, are required to report vehicles
	51	+ that are deemed a total loss to NMVTIS and update the data at least
	52	+ every 30 days.
	53	+ (d) According to NMVTIS, 87 percent of departments of motor
	54	+ vehicle titling data from the entire United States, including all of
	55	+ the California Department of Motor Vehicles titling data, is
	56	+ currently represented in NMVTIS and the database is expanding daily.
	57	+ (e) Federal law provides that NMVTIS must be supported through
	58	+ user fees from government and private users and may not be dependent
	59	+ on federal funding. The NMVTIS operator is authorized to assess and
	60	+ collect user fees not to exceed the cost of operating the system, not
	61	+ permitting any profits to be made by the operator. Federal funding
	62	+ and investments by the NMVTIS operator account for over $40 million
	63	+ in support of operations since 1997. Fees to state government users
	64	+ are not projected to be adequate to provide sufficient revenue to
	65	+ defray all anticipated operating costs. It is crucial to the success
	66	+ of NMVTIS that new applications be developed to generate sufficient
	67	+ nonstate government user fees so that NMVTIS may continue its
	68	+ operations.
	69	+ (f) It is the intent of the Legislature in enacting Section 17 of
	70	+ this act to ensure that every motor vehicle dealer licensed in this
	71	+ state obtain a NMVTIS vehicle history report for every used vehicle
	72	+ that will be offered for retail sale and that any used vehicle that
	73	+ has been titled or reported as salvage or junk as indicated by the
	74	+ NMVTIS vehicle history report be identified as such. By becoming the
	75	+ first and largest state in the country to require the use of NMVTIS
	76	+ vehicle history reports by dealers in retail used vehicle
	77	+ transactions, this act will not only benefit the California consumer,
	78	+ it will also strengthen and financially support NMVTIS.

  Section 3 and 4 (merged)

1		– SEC. 3. Section 2982 of the Civil Code is amended to read:
2		– 2982. A conditional sale contract subject to this chapter shall
	1	+ SEC. 4. Section 2982 is added to the Civil Code, to read:
	2	+ 2982. A conditional sale contract subject to this chapter shall
3	3	contain the disclosures required by Regulation Z, whether or not
4	4	Regulation Z applies to the transaction. In addition, to the extent
5	5	applicable, the contract shall contain the other disclosures and
6	6	notices required by, and shall satisfy the requirements and
7	7	limitations of, this section. The disclosures required by subdivision
8	8	(a) may be itemized or subtotaled to a greater extent than as
9	9	required by that subdivision and shall be made together and in the
10	10	sequence set forth in that subdivision. All other disclosures and
11	11	notices may appear in the contract in any location or sequence and
12	12	may be combined or interspersed with other provisions of the
13	13	contract.
14	14	(a) The contract shall contain the following disclosures, as
15	15	applicable, which shall be labeled “itemization of the amount
16	16	financed”:
17		– (1) (A) The cash price, exclusive of document preparation fees,
18		– business partnership automation fees, taxes imposed on the sale,
19		– pollution control certification fees, prior credit or lease balance
20		– on property being traded in, the amount charged for a service
21		– contract, the amount charged for a theft deterrent system, the amount
22		– charged for a surface protection product, the amount charged for an
23		– optional debt cancellation agreement, and the amount charged for a
24		– contract cancellation option agreement.
25		– (B) The fee to be retained by the seller for document preparation.
	17	+ (1) (A) The cash price, exclusive of document processing charges,
	18	+ charges to electronically register or transfer the vehicle, taxes
	19	+ imposed on the sale, pollution control certification fees, prior
	20	+ credit or lease balance on property being traded in, the amount
	21	+ charged for a service contract, the amount charged for a theft
	22	+ deterrent system, the amount charged for a surface protection
	23	+ product, the amount charged for an optional debt cancellation
	24	+ agreement, and the amount charged for a contract cancellation option
	25	+ agreement.
	26	+ (B) The charge to be retained by the seller for document
	27	+ processing authorized pursuant to Section 4456.5 of the Vehicle Code.
26	28
27	29	(C) The fee charged by the seller for certifying that the motor
28	30	vehicle complies with applicable pollution control requirements.
29	31	(D) A charge for a theft deterrent device.
30	32	(E) A charge for a surface protection product.
31	33	(F) Taxes imposed on the sale.
32		– (G) The amount of any optional business partnership automation fee
33		– to register or transfer the vehicle, which shall be labeled
34		– “Optional DMV Electronic Filing Fee.”
	34	+ (G) The charge to electronically register or transfer the vehicle
	35	+ authorized pursuant to Section 4456.5 of the Vehicle Code.
35	36	(H) The amount charged for a service contract.
36	37	(I) The prior credit or lease balance remaining on property being
37	38	traded in, as required by paragraph (6). The disclosure required by
38	39	this subparagraph shall be labeled “prior credit or lease balance
39	40	(see downpayment and trade-in calculation).”
40	41	(J) Any charge for an optional debt cancellation agreement.
41	42	(K) Any charge for a used vehicle contract cancellation option
42	43	agreement.
43	44	(L) The total cash price, which is the sum of subparagraphs (A) to
44	45	(K), inclusive.
45	46	(M) The disclosures described in subparagraphs (D), (E), and (K)
46	47	are not required on contracts involving the sale of a motorcycle, as
47	48	defined in Section 400 of the Vehicle Code, or on contracts involving
48	49	the sale of an off-highway motor vehicle that is subject to
49	50	identification under Section 38010 of the Vehicle Code, and the
50	51	amounts of those charges, if any, are not required to be reflected in
51	52	the total price under subparagraph (L).
52	53	(2) Amounts paid to public officials for the following:
53	54	(A) Vehicle license fees.
54	55	(B) Registration, transfer, and titling fees.
55	56	(C) California tire fees imposed pursuant to Section 42885 of the
56	57	Public Resources Code.
57	58	(3) The aggregate amount of premiums agreed, upon execution of the
58	59	contract, to be paid for policies of insurance included in the
59	60	contract, excluding the amount of any insurance premium included in
60	61	the finance charge.
61	62	(4) The amount of the state fee for issuance of a certificate of
62	63	compliance, noncompliance, exemption, or waiver pursuant to any
63	64	applicable pollution control statute.
64	65	(5) A subtotal representing the sum of the amounts described in
65	66	paragraphs (1) to (4), inclusive.
66	67	(6) The amount of the buyer’s downpayment itemized to show the
67	68	following:
68	69	(A) The agreed value of the property being traded in.
69	70	(B) The prior credit or lease balance, if any, owing on the
70	71	property being traded in.
71	72	(C) The net agreed value of the property being traded in, which is
72	73	the difference between the amounts disclosed in subparagraphs (A)
73	74	and (B). If the prior credit or lease balance of the property being
74	75	traded in exceeds the agreed value of the property, a negative number
75	76	shall be stated.
76	77	(D) The amount of any portion of the downpayment to be deferred
77	78	until not later than the due date of the second regularly scheduled
78	79	installment under the contract and that is not subject to a finance
79	80	charge.
80	81	(E) The amount of any manufacturer’s rebate applied or to be
81	82	applied to the downpayment.
82	83	(F) The remaining amount paid or to be paid by the buyer as a
83	84	downpayment.
84	85	(G) The total downpayment. If the sum of subparagraphs (C) to (F),
85	86	inclusive, is zero or more, that sum shall be stated as the total
86	87	downpayment and no amount shall be stated as the prior credit or
87	88	lease balance under subparagraph (I) of paragraph (1). If the sum of
88	89	subparagraphs (C) to (F), inclusive, is less than zero, then that
89	90	sum, expressed as a positive number, shall be stated as the prior
90	91	credit or lease balance under subparagraph (I) of paragraph (1), and
91	92	zero shall be stated as the total downpayment. The disclosure
92	93	required by this subparagraph shall be labeled “total downpayment”
93	94	and shall contain a descriptor indicating that if the total
94	95	downpayment is a negative number, a zero shall be disclosed as the
95	96	total downpayment and a reference made that the remainder shall be
96	97	included in the disclosure required pursuant to subparagraph (I) of
97	98	paragraph (1).
98	99	(7) The amount of any administrative finance charge, labeled
99	100	“prepaid finance charge.”
100	101	(8) The difference between the amount described in paragraph (5)
101	102	and the sum of the amounts described in paragraphs (6) and (7),
102	103	labeled “amount financed.”
103	104	(b) No particular terminology is required to disclose the items
104	105	set forth in subdivision (a) except as expressly provided in that
105	106	subdivision.
106	107	(c) If payment of all or a portion of the downpayment is to be
107	108	deferred, the deferred payment shall be reflected in the payment
108	109	schedule disclosed pursuant to Regulation Z.
109	110	(d) If the downpayment includes property being traded in, the
110	111	contract shall contain a brief description of that property.
111	112	(e) The contract shall contain the names and addresses of all
112	113	persons to whom the notice required pursuant to Section 2983.2 and
113	114	permitted pursuant to Sections 2983.5 and 2984 is to be sent.
114	115	(f) (1) If the contract includes a finance charge determined on
115	116	the precomputed basis, the contract shall identify the method of
116	117	computing the unearned portion of the finance charge in the event of
117	118	prepayment in full of the buyer’s obligation and contain a statement
118	119	of the amount or method of computation of any charge that may be
119	120	deducted from the amount of any unearned finance charge in computing
120	121	the amount that will be credited to the obligation or refunded to the
121	122	buyer. The method of computing the unearned portion of the finance
122	123	charge shall be sufficiently identified with a reference to the
123	124	actuarial method if the computation will be under that method. The
124	125	method of computing the unearned portion of the finance charge shall
125	126	be sufficiently identified with a reference to the Rule of 78’s, the
126	127	sum of the digits, or the sum of the periodic time balances method in
127	128	all other cases, and those references shall be deemed to be
128	129	equivalent for disclosure purposes.
129	130	(2) If the contract includes a finance charge that is determined
130	131	on the simple-interest basis but provides for a minimum finance
131	132	charge in the event of prepayment in full, the contract shall contain
132	133	a statement of that fact and the amount of the minimum finance
133	134	charge or its method of calculation.
134	135	(g) (1) If the contract includes a finance charge that is
135	136	determined on the precomputed basis and provides that the unearned
136	137	portion of the finance charge to be refunded upon full prepayment of
137	138	the contract is to be determined by a method other than actuarial,
138	139	the contract shall contain a notice, in at least 10-point boldface
139	140	type if the contract is printed, reading as follows: “Notice to
140	141	buyer: (1) Do not sign this agreement before you read it or if it
141	142	contains any blank spaces to be filled in. (2) You are entitled to a
142	143	completely filled-in copy of this agreement. (3) You can prepay the
143	144	full amount due under this agreement at any time and obtain a
144	145	partial refund of the finance charge if it is $1 or more. Because of
145	146	the way the amount of this refund will be figured, the time when you
146	147	prepay could increase the ultimate cost of credit under this
147	148	agreement. (4) If you default in the performance of your obligations
148	149	under this agreement, the vehicle may be repossessed and you may be
149	150	subject to suit and liability for the unpaid indebtedness evidenced
150	151	by this agreement.”
151	152	(2) If the contract includes a finance charge that is determined
152	153	on the precomputed basis and provides for the actuarial method for
153	154	computing the unearned portion of the finance charge upon prepayment
154	155	in full, the contract shall contain a notice, in at least 10-point
155	156	boldface type if the contract is printed, reading as follows:
156	157	“Notice to buyer: (1) Do not sign this agreement before you read it
157	158	or if it contains any blank spaces to be filled in. (2) You are
158	159	entitled to a completely filled-in copy of this agreement. (3) You
159	160	can prepay the full amount due under this agreement at any time and
160	161	obtain a partial refund of the finance charge if it is $1 or more.
161	162	(4) If you default in the performance of your obligations under this
162	163	agreement, the vehicle may be repossessed and you may be subject to
163	164	suit and liability for the unpaid indebtedness evidenced by this
164	165	agreement.”
165	166	(3) If the contract includes a finance charge that is determined
166	167	on the simple-interest basis, the contract shall contain a notice, in
167	168	at least 10-point boldface type if the contract is printed, reading
168	169	as follows: “Notice to buyer: (1) Do not sign this agreement before
169	170	you read it or if it contains any blank spaces to be filled in. (2)
170	171	You are entitled to a completely filled-in copy of this agreement.
171	172	(3) You can prepay the full amount due under this agreement at any
172	173	time. (4) If you default in the performance of your obligations
173	174	under this agreement, the vehicle may be repossessed and you may be
174	175	subject to suit and liability for the unpaid indebtedness evidenced
175	176	by this agreement.”
176	177	(h) The contract shall contain a notice in at least 8-point
177	178	boldface type, acknowledged by the buyer, that reads as follows:
178	179
179	180	“If you have a complaint concerning this sale, you should try to
180	181	resolve it with the seller.
181	182	Complaints concerning unfair or deceptive practices or methods by
182	183	the seller may be referred to the city attorney, the district
183	184	attorney, or an investigator for the Department of Motor Vehicles, or
184	185	any combination thereof.
185	186	After this contract is signed, the seller may not change the
186	187	financing or payment terms unless you agree in writing to the change.
187	188	You do not have to agree to any change, and it is an unfair or
188	189	deceptive practice for the seller to make a unilateral change.
189	190	——————————-
190	191	Buyer’s Signature”
191	192
192	193
193	194	(i) (1) The contract shall contain an itemization of any insurance
194	195	included as part of the amount financed disclosed pursuant to
195	196	paragraph (3) of subdivision (a) and of any insurance included as
196	197	part of the finance charge. The itemization shall identify the type
197	198	of insurance coverage and the premium charged therefor, and, if the
198	199	insurance expires before the date of the last scheduled installment
199	200	included in the repayment schedule, the term of the insurance shall
200	201	be stated.
201	202	(2) If any charge for insurance, other than for credit life or
202	203	disability, is included in the contract balance and disbursement of
203	204	any part thereof is to be made more than one year after the date of
204	205	the conditional sale contract, any finance charge on the amount to be
205	206	disbursed after one year shall be computed from the month the
206	207	disbursement is to be made to the due date of the last installment
207	208	under the conditional sale contract.
208	209	(j) (1) Except for contracts in which the finance charge or a
209	210	portion of the finance charge is determined by the simple-interest
210	211	basis and the amount financed disclosed pursuant to paragraph (8) of
211	212	subdivision (a) is more than two thousand five hundred dollars
212	213	($2,500), the dollar amount of the disclosed finance charge may not
213	214	exceed the greater of:
214	215	(A) (i) One and one-half percent on so much of the unpaid balance
215	216	as does not exceed two hundred twenty-five dollars ($225), 11/6
216	217	percent on so much of the unpaid balance in excess of two hundred
217	218	twenty-five dollars ($225) as does not exceed nine hundred dollars
218	219	($900) and five-sixths of 1 percent on so much of the unpaid balance
219	220	in excess of nine hundred dollars ($900) as does not exceed two
220	221	thousand five hundred dollars ($2,500).
221	222	(ii) One percent of the entire unpaid balance; multiplied in
222	223	either case by the number of months (computed on the basis of a full
223	224	month for any fractional month period in excess of 15 days) elapsing
224	225	between the date of the contract and the due date of the last
225	226	installment.
226	227	(B) If the finance charge is determined by the precomputed basis,
227	228	twenty-five dollars ($25).
228	229	(C) If the finance charge or a portion thereof is determined by
229	230	the simple-interest basis:
230	231	(i) Twenty-five dollars ($25) if the unpaid balance does not
231	232	exceed one thousand dollars ($1,000).
232	233	(ii) Fifty dollars ($50) if the unpaid balance exceeds one
233	234	thousand dollars ($1,000) but does not exceed two thousand dollars
234	235	($2,000).
235	236	(iii) Seventy-five dollars ($75) if the unpaid balance exceeds two
236	237	thousand dollars ($2,000).
237	238	(2) The holder of the contract shall not charge, collect, or
238	239	receive a finance charge that exceeds the disclosed finance charge,
239	240	except to the extent (A) caused by the holder’s receipt of one or
240	241	more payments under a contract that provides for determination of the
241	242	finance charge or a portion thereof on the 365-day basis at a time
242	243	or times other than as originally scheduled whether or not the
243	244	parties enter into an agreement pursuant to Section 2982.3, (B)
244	245	permitted by paragraph (2), (3), or (4) of subdivision (c) of Section
245	246	226.17 of Regulation Z, or (C) permitted by subdivisions (a) and (c)
246	247	of Section 2982.8.
247	248	(3) If the finance charge or a portion thereof is determined by
248	249	the simple-interest basis and the amount of the unpaid balance
249	250	exceeds five thousand dollars ($5,000), the holder of the contract
250	251	may, in lieu of its right to a minimum finance charge under
251	252	subparagraph (C) of paragraph (1), charge, receive, or collect on the
252	253	date of the contract an administrative finance charge not to exceed
253	254	seventy-five dollars ($75), provided that the sum of the
254	255	administrative finance charge and the portion of the finance charge
255	256	determined by the simple-interest basis shall not exceed the maximum
256	257	total finance charge permitted by subparagraph (A) of paragraph (1).
257	258	Any administrative finance charge that is charged, received, or
258	259	collected by a holder shall be deemed a finance charge earned on the
259	260	date of the contract.
260	261	(4) If a contract provides for unequal or irregular payments, or
261	262	payments on other than a monthly basis, the maximum finance charge
262	263	shall be at the effective rate provided for in paragraph (1), having
263	264	due regard for the schedule of installments.
264	265	(k) The contract may provide that for each installment in default
265	266	for a period of not less than 10 days the buyer shall pay a
266	267	delinquency charge in an amount not to exceed in the aggregate 5
267	268	percent of the delinquent installment, which amount may be collected
268	269	only once on any installment regardless of the period during which it
269	270	remains in default. Payments timely received by the seller under an
270	271	extension or deferral agreement may not be subject to a delinquency
271	272	charge unless the charge is permitted by Section 2982.3. The contract
272	273	may provide for reasonable collection costs and fees in the event of
273	274	delinquency.
274	275	( l ) Notwithstanding any provision of a contract to
275	276	the contrary, the buyer may pay at any time before maturity the
276	277	entire indebtedness evidenced by the contract without penalty. In the
277	278	event of prepayment in full:
278	279	(1) If the finance charge was determined on the precomputed basis,
279	280	the amount required to prepay the contract shall be the outstanding
280	281	contract balance as of that date, provided, however, that the buyer
281	282	shall be entitled to a refund credit in the amount of the unearned
282	283	portion of the finance charge, except as provided in paragraphs (3)
283	284	and (4). The amount of the unearned portion of the finance charge
284	285	shall be at least as great a proportion of the finance charge,
285	286	including any additional finance charge imposed pursuant to Section
286	287	2982.8 or other additional charge imposed because the contract has
287	288	been extended, deferred, or refinanced, as the sum of the periodic
288	289	monthly time balances payable more than 15 days after the date of
289	290	prepayment bears to the sum of all the periodic monthly time balances
290	291	under the schedule of installments in the contract or, if the
291	292	contract has been extended, deferred, or refinanced, as so extended,
292	293	deferred, or refinanced. If the amount of the refund credit is less
293	294	than one dollar ($1), no refund credit need be made by the holder.
294	295	Any refund credit may be made in cash or credited to the outstanding
295	296	obligations of the buyer under the contract.
296	297	(2) If the finance charge or a portion of the finance charge was
297	298	determined on the simple-interest basis, the amount required to
298	299	prepay the contract shall be the outstanding contract balance as of
299	300	that date, including any earned finance charges that are unpaid as of
300	301	that date and, if applicable, the amount provided in paragraph (3),
301	302	and provided further that in cases where a finance charge is
302	303	determined on the 360-day basis, the payments received under the
303	304	contract shall be assumed to have been received on their respective
304	305	due dates regardless of the actual dates on which the payments were
305	306	received.
306	307	(3) If the minimum finance charge provided by subparagraph (B) or
307	308	subparagraph (C) of paragraph (1) of subdivision (j), if either is
308	309	applicable, is greater than the earned finance charge as of the date
309	310	of prepayment, the holder shall be additionally entitled to the
310	311	difference.
311	312	(4) This subdivision shall not impair the right of the seller or
312	313	the seller’s assignee to receive delinquency charges on delinquent
313	314	installments and reasonable costs and fees as provided in subdivision
314	315	(k) or extension or deferral agreement charges as provided in
315	316	Section 2982.3.
316	317	(5) Notwithstanding any provision of a contract to the contrary,
317	318	if the indebtedness created by any contract is satisfied prior to its
318	319	maturity through surrender of the motor vehicle, repossession of the
319	320	motor vehicle, redemption of the motor vehicle after repossession,
320	321	or any judgment, the outstanding obligation of the buyer shall be
321	322	determined as provided in paragraph (1) or (2). Notwithstanding, the
322	323	buyer’s outstanding obligation shall be computed by the holder as of
323	324	the date the holder recovers the value of the motor vehicle through
324	325	disposition thereof or judgment is entered or, if the holder elects
325	326	to keep the motor vehicle in satisfaction of the buyer’s
326	327	indebtedness, as of the date the holder takes possession of the motor
327	328	vehicle.
328	329	(m) Notwithstanding any other provision of this chapter to the
329	330	contrary, any information required to be disclosed in a conditional
330	331	sale contract under this chapter may be disclosed in any manner,
331	332	method, or terminology required or permitted under Regulation Z, as
332	333	in effect at the time that disclosure is made, except that permitted
333	334	by paragraph (2) of subdivision (c) of Section 226.18 of Regulation
334	335	Z, if all of the requirements and limitations set forth in
335	336	subdivision (a) are satisfied. This chapter does not prohibit the
336	337	disclosure in that contract of additional information required or
337	338	permitted under Regulation Z, as in effect at the time that
338	339	disclosure is made.
339		– (n) If the seller imposes a fee for document preparation, the
340		– contract shall contain a disclosure that the fee is not a
341		– governmental fee.
	340	+ (n) If the seller imposes a charge for document processing or to
	341	+ electronically register or transfer the vehicle, the contract shall
	342	+ contain a disclosure that the charge is not a governmental fee.
342	343	(o) A seller shall not impose an application fee for a transaction
343	344	governed by this chapter.
344	345	(p) The seller or holder may charge and collect a fee not to
345	346	exceed fifteen dollars ($15) for the return by a depository
346	347	institution of a dishonored check, negotiated order of withdrawal, or
347	348	share draft issued in connection with the contract if the contract
348	349	so provides or if the contract contains a generalized statement that
349	350	the buyer may be liable for collection costs incurred in connection
350	351	with the contract.
351	352	(q) The contract shall disclose on its face, by printing the word
352	353	“new” or “used” within a box outlined in red, that is not smaller
353	354	than one-half inch high and one-half inch wide, whether the vehicle
354	355	is sold as a new vehicle, as defined in Section 430 of the Vehicle
355	356	Code, or as a used vehicle, as defined in Section 665 of the Vehicle
356	357	Code.
357	358	(r) The contract shall contain a notice with a heading in at least
358	359	12-point bold type and the text in at least 10-point bold type,
359	360	circumscribed by a line, immediately above the contract signature
360	361	line, that reads as follows:
361	362	THERE IS NO COOLING-OFF PERIOD UNLESS
362	363	YOU
363	364	OBTAIN A CONTRACT CANCELLATION
364	365	OPTION.
365	366	California law does not provide for a
366	367	“”cooling-off” or other cancellation period
367	368	for vehicle sales. Therefore, you cannot
368	369	later cancel this contract simply because you
369	370	change your mind, decide the vehicle costs
370	371	too much, or wish you had acquired a
371	372	different vehicle. After you sign below, you
372	373	may only cancel this contract with the
373	374	agreement of the seller or for legal cause,
374	375	such as
375	376	fraud.
376	377	However, California law does require a seller
377	378	to offer a 2-day contract cancellation option
378	379	on used vehicles with a purchase price of
379	380	less than $40,000, subject to certain
380	381	statutory conditions. This contract
381	382	cancellation option requirement does not
382	383	apply to the sale of a recreational vehicle,
383	384	a motorcycle, or an off-highway motor vehicle
384	385	subject to identification under California
385	386	law. See the vehicle contract cancellation
386	387	option agreement for details.
390		– (s) This section shall become inoperative on July 1, 2012, and, as
391		– of January 1, 2013, is repealed, unless a later enacted statute that
392		– is enacted before January 1, 2013, deletes or extends the dates on
393		– which it becomes inoperative and is repealed.
	391	+ (s) This section shall become operative on July 1, 2012.

  Section 5 and 6 (merged)

1		– SEC. 5. Section 2985.8 of the Civil Code is amended to read:
2		– 2985.8. (a) A lease contract shall be in writing and the print
	1	+ SEC. 6. Section 2985.8 is added to the Civil Code, to read:
	2	+ 2985.8. (a) A lease contract shall be in writing, and the print
3	3	portion of the contract shall be printed in at least 8-point type and
4	4	shall contain in a single document all of the agreements of the
5	5	lessor and lessee with respect to the obligations of each party.
6	6	(b) At the top of the lease contract, a title that contains the
7	7	words “LEASE CONTRACT” or “LEASE AGREEMENT” shall appear in at least
8	8	12-point boldface type.
9	9	(c) A lease contract shall disclose all of the following:
10	10	(1) All of the information prescribed by Regulation M set forth in
11	11	the manner required or permitted by Regulation M, whether or not
12	12	Regulation M applies to the transaction.
13	13	(2) A separate statement labeled “Itemization of Gross Capitalized
14	14	Cost” that shall appear immediately following or directly adjacent
15	15	to the disclosures required to be segregated by Regulation M. The
16	16	Itemization of Gross Capitalized Cost shall include all of the
17	17	following and shall be circumscribed by a line:
18	18	(A) The agreed-upon value of the vehicle as equipped at the time
19	19	of signing the lease.
20	20	(B) The agreed-upon value and a description of each accessory and
21	21	item of optional equipment the lessor agrees to add to the vehicle
22	22	after signing the lease.
23	23	(C) The premium for each policy of insurance.
24	24	(D) The amount charged for each service contract.
25	25	(E) Any charge for an optional debt cancellation agreement.
26	26	(F) Any outstanding prior credit or lease balance.
27	27	(G) An itemization by type and agreed-upon value of each good or
28	28	service included in the gross capitalized cost other than those items
29	29	included in the disclosures required in subparagraphs (A) to (F),
30	30	inclusive.
31	31	(3) The vehicle identification number of the leased vehicle.
32	32	(4) A brief description of each vehicle or other property being
33	33	traded in and the agreed-upon value of the vehicle or property if the
34	34	amount due at the time of signing the lease or upon delivery is paid
35	35	in whole or in part with a net trade-in allowance or the
36	36	“Itemization of Gross Capitalized Cost” includes any portion of the
37	37	outstanding prior credit or lease balance from the trade-in property.
38	38
39		– (5) The fee, if any, to be retained by the lessor for document
40		– preparation, which fee may not exceed forty-five dollars ($45) and
41		– shall not be represented as a governmental fee.
42		– (6) The amount of any optional business partnership automation
43		– program fee to register or transfer the vehicle, which shall be
44		– labeled “Optional DMV Electronic Filing Fee.”
	39	+ (5) The charge, if any, to be retained by the lessor for document
	40	+ processing authorized pursuant to Section 4456.5 of the Vehicle Code,
	41	+ which may not be represented as a governmental fee.
	42	+ (6) The charge, if any, to electronically register or transfer the
	43	+ vehicle authorized pursuant to Section 4456.5 of the Vehicle Code,
	44	+ which shall not be represented as a governmental fee.
45	45	(d) A lease contract shall contain, in at least 8-point boldface
46	46	type, above the space provided for the lessee’s signature and
47	47	circumscribed by a line, the following notice: “(1) Do not sign this
48	48	lease before you read it or if it contains any blank spaces to be
49	49	filled in; (2) You are entitled to a completely filled in copy of
50	50	this lease; (3) Warning–Unless a charge is included in this lease
51	51	for public liability or property damage insurance, payment for that
52	52	coverage is not provided by this lease.”
53	53	(e) A lease contract shall contain, in at least 8-point boldface
54	54	type, on the first page of the contract and circumscribed by a line,
55	55	the following notice:
56	56	“THERE IS NO COOLING OFF PERIOD
57	57
58	58	California law does not provide for a “cooling off” or other
59	59	cancellation period for vehicle leases. Therefore, you cannot later
60	60	cancel this lease simply because you change your mind, decided the
61	61	vehicle costs too much, or wish you had acquired a different vehicle.
62	62	You may cancel this lease only with the agreement of the lessor or
63	63	for legal cause, such as fraud.”
64	64
65	65	(f) A lease contract shall contain, in at least 8-point boldface
66	66	type, the following notice: “You have the right to return the
67	67	vehicle, and receive a refund of any payments made if the credit
68	68	application is not approved, unless nonapproval results from an
69	69	incomplete application or from incorrect information provided by you.”
70	70
71	71	(g) The lease contract shall be signed by the lessor and lessee,
72	72	or their authorized representatives, and an exact copy of the fully
73	73	executed lease contract shall be provided to the lessee at the time
74	74	of signing.
75	75	(h) A motor vehicle shall not be delivered under a lease contract
76	76	subject to this chapter until the lessor provides to the lessee a
77	77	fully executed copy of the lease contract.
78	78	(i) The lessor shall not obtain the signature of the lessee to a
79	79	contract when it contains blank spaces to be filled in after it has
80	80	been signed.
81	81	(j) If the lease contract contains a provision that holds the
82	82	lessee liable for the difference between (1) the adjusted capitalized
83	83	cost disclosed in the lease contract reduced by the amounts
84	84	described in subparagraph (A) of paragraph (5) of subdivision (b) of
85	85	Section 2987 and (2) the settlement proceeds of the lessee’s required
86	86	insurance and deductible in the event of theft or damage to the
87	87	vehicle that results in a total loss, the lease contract shall
88	88	contain the following notice in at least 8-point boldface type on the
89	89	first page of the contract:
90	90	“GAP LIABILITY NOTICE
91	91
92	92	In the event of theft or damage to the vehicle that results in a
93	93	total loss, there may be a GAP between the amount due upon early
94	94	termination and the proceeds of your insurance settlement and
95	95	deductible. THIS LEASE PROVIDES THAT YOU ARE LIABLE FOR THE GAP
96	96	AMOUNT. Optional coverage for the GAP amount may be offered for an
97	97	additional price.”
98	98
99		– (k) This section shall become inoperative on July 1, 2012, and, as
100		– of January 1, 2013, is repealed, unless a later enacted statute that
101		– is enacted before January 1, 2013, deletes or extends the dates on
102		– which it becomes inoperative and is repealed.
	99	+ (k) This section shall become operative on July 1, 2012.

  Section 7 and 8 (merged)

1		– SEC. 7. Section 4456 of the Vehicle Code is amended to read:
	1	+ SEC. 8. Section 4456 is added to the Vehicle Code, to read:
2	2	4456. (a) When selling a vehicle, dealers and lessor-retailers
3	3	shall use numbered report-of-sale forms issued by the department. The
4	4	forms shall be used in accordance with the following terms and
5	5	conditions:
6	6	(1) The dealer or lessor-retailer shall attach for display a copy
7	7	of the report of sale on the vehicle before the vehicle is delivered
8	8	to the purchaser.
9	9	(2) The dealer or lessor-retailer shall submit to the department
10	10	an application accompanied by all fees and penalties due for
11	11	registration or transfer of registration of the vehicle within 30
12	12	days from the date of sale, as provided in subdivision (c) of Section
13	13	9553, if the vehicle is a used vehicle, and 20 days if the vehicle
14	14	is a new vehicle. Penalties due for noncompliance with this paragraph
15	15	shall be paid by the dealer or lessor-retailer. The dealer or
16	16	lessor-retailer shall not charge the purchaser for the penalties.
17	17	(3) As part of an application to transfer registration of a used
18	18	vehicle, the dealer or lessor-retailer shall include all of the
19	19	following information on the certificate of title, application for a
20	20	duplicate certificate of title, or form prescribed by the department:
21	21
22	22	(A) Date of sale and report of sale number.
23	23	(B) Purchaser’s name and address.
24	24	(C) Dealer’s name, address, number, and signature or signature of
25	25	authorized agent.
26	26	(D) Salesperson number.
27	27	(4) If the department returns an application and the application
28	28	was first received by the department within 30 days of the date of
29	29	sale of the vehicle if the vehicle is a used vehicle, and 20 days if
30	30	the vehicle is a new vehicle, the dealer or lessor-retailer shall
31	31	submit a corrected application to the department within 50 days from
32	32	the date of sale of the vehicle if the vehicle is a used vehicle, and
33	33	40 days if the vehicle is a new vehicle, or within 30 days from the
34	34	date that the application is first returned by the department if the
35	35	vehicle is a used vehicle, and 20 days if the vehicle is a new
36	36	vehicle, whichever is later.
37	37	(5) If the department returns an application and the application
38	38	was first received by the department more than 30 days from the date
39	39	of sale of the vehicle if the vehicle is a used vehicle, and 20 days
40	40	if the vehicle is a new vehicle, the dealer or lessor-retailer shall
41	41	submit a corrected application to the department within 50 days from
42	42	the date of sale of the vehicle if the vehicle is a used vehicle, and
43	43	40 days if the vehicle is a new vehicle.
44	44	(6) An application first received by the department more than 50
45	45	days from the date of sale of the vehicle if the vehicle is a used
46	46	vehicle, and 40 days if the vehicle is a new vehicle, is subject to
47	47	the penalties specified in subdivisions (a) and (b) of Section
48	48	4456.1.
49	49	(7) The dealer or lessor-retailer shall report the sale pursuant
50	50	to Section 5901.
51	51	(b) (1) A transfer that takes place through a dealer conducting a
52	52	wholesale vehicle auction shall be reported to the department by that
53	53	dealer on a single form approved by the department. The completed
54	54	form shall contain, at a minimum, all of the following information:
55	55	(A) The name and address of the seller.
56	56	(B) The seller’s dealer number, if applicable.
57	57	(C) The date of delivery to the dealer conducting the auction.
58	58	(D) The actual mileage of the vehicle as indicated by the vehicle’
59	59	s odometer at the time of delivery to the dealer conducting the
60	60	auction.
61	61	(E) The name, address, and occupational license number of the
62	62	dealer conducting the auction.
63	63	(F) The name, address, and occupational license number of the
64	64	buyer.
65	65	(G) The signature of the dealer conducting the auction.
66	66	(2) Submission of the completed form specified in paragraph (1) to
67	67	the department shall fully satisfy the requirements of subdivision
68	68	(a) and subdivision (a) of Section 5901 with respect to the dealer
69	69	selling at auction and the dealer conducting the auction.
70	70	(3) The single form required by this subdivision does not relieve
71	71	a dealer of any obligation or responsibility that is required by any
72	72	other provision of law.
73	73	(c) A vehicle displaying a copy of the report of sale may be
74	74	operated without license plates or registration card until either of
75	75	the following, whichever occurs first:
76	76	(1) The license plates and registration card are received by the
77	77	purchaser.
78		– (2) A six-month period, commencing with the date of sale of the
	78	+ (2) A 90-day period, commencing with the date of sale of the
79	79	vehicle, has expired.
80		– (d) This section shall become inoperative on July 1, 2012, and, as
81		– of January 1, 2013, is repealed, unless a later enacted statute that
82		– is enacted before January 1, 2013, deletes or extends the dates on
83		– which it becomes inoperative and is repealed.
	80	+ (d) This section shall become operative on July 1, 2012.

  Section 9, 10

	1	+ SEC. 9. Section 4456.4 is added to the Vehicle Code, to read:
	2	+ 4456.4. (a) A motor vehicle sold or leased by a new motor vehicle
	3	+ dealer shall be registered by the dealer using electronic programs
	4	+ provided by a qualified private industry partner pursuant to Section
	5	+ 1685 if the department permits the transaction to be processed
	6	+ electronically.
	7	+ (b) This section does not apply to the sale or lease of a
	8	+ motorcycle or off-highway motor vehicle subject to identification
	9	+ under Section 38010 or a recreational vehicle as defined in Section
	10	+ 18010 of the Health and Safety Code.
	11	+ (c) This section shall become operative on July 1, 2012.
	12	+ SEC. 10. Section 4456.5 is added to the Vehicle Code, to read:
	13	+ 4456.5. (a) A dealer may charge the purchaser or lessee of a
	14	+ vehicle the following charges:
	15	+ (1) A document processing charge for the preparation and
	16	+ processing of documents, disclosures, and titling, registration, and
	17	+ information security obligations imposed by state and federal law.
	18	+ The dealer document processing charge shall not be represented as a
	19	+ governmental fee.
	20	+ (A) If a dealer has a contractual agreement with the department to
	21	+ be a private industry partner pursuant to Section 1685, the document
	22	+ processing charge shall not exceed eighty dollars ($80).
	23	+ (B) If a dealer does not have a contractual agreement with the
	24	+ department to be a private industry partner pursuant to Section 1685,
	25	+ the document processing charge shall not exceed sixty-five dollars
	26	+ ($65).
	27	+ (2) An electronic filing charge, not to exceed the actual amount
	28	+ the dealer is charged by a first-line service provider for providing
	29	+ license plate processing, postage, and the fees and services
	30	+ authorized pursuant to subdivisions (a) and (d) of Section 1685. The
	31	+ director may establish, through the adoption of regulations, the
	32	+ maximum amount that a first-line service provider may charge a
	33	+ dealer. The electronic filing charge shall not be represented as a
	34	+ governmental fee.
	35	+ (b) As used in this section, the term “first-line service provider”
	36	+ shall have the same meaning as defined in subdivision (b) of Section
	37	+ 1685.
	38	+ (c) This section shall become operative on July 1, 2012.

  Section 11, 12

1		– SEC. 11. Section 5202 of the Vehicle Code is amended to read:
	1	+ SEC. 12. Section 5202 is added to the Vehicle Code, to read:
2	2	5202. (a) A license plate issued by this state or any other
3		– jurisdiction within or without the United States shall remain
4		– attached during the period of its validity to the vehicle for which
5		– it is issued while being operated within this state or during the
6		– time the vehicle is being held for sale in this state, or until the
7		– time that a vehicle with special or identification plates is no
8		– longer entitled to those plates; and a person shall not operate, nor
9		– shall an owner knowingly permit to be operated, upon a highway a
10		– vehicle unless the license plate is so attached. Special permits
11		– issued in lieu of plates shall be attached and displayed on the
12		– vehicle for which issued during the period of their validity.
13		– (b) This section shall become inoperative on July 1, 2012, and, as
14		– of January 1, 2013, is repealed, unless a later enacted statute that
15		– is enacted before January 1, 2013, deletes or extends the dates on
16		– which it becomes inoperative and is repealed.
	3	+ jurisdiction within or without the United States shall be attached
	4	+ upon receipt and remain attached during the period of its validity to
	5	+ the vehicle for which it is issued while being operated within this
	6	+ state or during the time the vehicle is being held for sale in this
	7	+ state, or until the time that a vehicle with special or
	8	+ identification plates is no longer entitled to those plates; and a
	9	+ person shall not operate, and an owner shall not knowingly permit to
	10	+ be operated, upon any highway, a vehicle unless the license plate is
	11	+ so attached. A special permit issued in lieu of plates shall be
	12	+ attached and displayed on the vehicle for which the permit was issued
	13	+ during the period of the permit’s validity.
	14	+ (b) This section shall become operative on July 1, 2012.

  Section 13 and 14 (merged)

1		– SEC. 13. Section 11713.1 of the Vehicle Code is amended to read:
	1	+ SEC. 14. Section 11713.1 is added to the Vehicle Code, to read:
2	2	11713.1. It is a violation of this code for the holder of a
3	3	dealer’s license issued under this article to do any of the
4	4	following:
5	5	(a) Advertise a specific vehicle for sale without identifying the
6	6	vehicle by its model, model-year, and either its license number or
7	7	that portion of the vehicle identification number that distinguishes
8	8	the vehicle from all other vehicles of the same make, model, and
9	9	model-year. Model-year is not required to be advertised for current
10	10	model-year vehicles. Year models are no longer current when ensuing
11	11	year models are available for purchase at retail in California. An
12	12	advertisement that offers for sale a class of new vehicles in a
13	13	dealer’s inventory, consisting of five or more vehicles, that are all
14	14	of the same make, model, and model-year is not required to include
15	15	in the advertisement the vehicle identification numbers or license
16	16	numbers of those vehicles.
17	17	(b) Advertise the total price of a vehicle without including all
18	18	costs to the purchaser at time of sale, except taxes, vehicle
19	19	registration fees, the California tire fee, as defined in Section
20		– 42885 of the Public Resources Code, emission testing fees not
	20	+ 42885 of the Public Resources Code, emission testing charges not
21	21	exceeding fifty dollars ($50), actual fees charged for certificates
22	22	pursuant to Section 44060 of the Health and Safety Code, finance
23		– charges, and any dealer document preparation charge. The dealer
24		– document preparation charge shall not exceed fifty-five dollars
25		– ($55).
	23	+ charges, and any dealer document processing charge or charge to
	24	+ electronically register or transfer the vehicle.
26	25	(c) (1) Exclude from an advertisement of a vehicle for sale that
27	26	there will be added to the advertised total price at the time of
28	27	sale, charges for sales tax, vehicle registration fees, the
29	28	California tire fee, the fee charged by the state for the issuance of
30	29	a certificate of compliance or noncompliance pursuant to a statute,
31		– finance charges, and a dealer document preparation charge.
	30	+ finance charges, a charge to electronically register or transfer the
	31	+ vehicle, and a dealer document processing charge.
32	32	(2) The obligations imposed by paragraph (1) are satisfied by
33	33	adding to the advertisement a statement containing no abbreviations
34	34	and that is worded in substantially the following form: “Plus
35	35	government fees and taxes, any finance charges, any dealer document
36		– preparation charge, and any emission testing charge.”
	36	+ processing charge, any electronic filing charge, and any emission
	37	+ testing charge.”
37	38	(3) For purposes of paragraph (1), “advertisement” means an
38	39	advertisement in a newspaper, magazine, or direct mail publication
39	40	that is two or more columns in width or one column in width and more
40	41	than seven inches in length, or on a Web page of a dealer’s Internet
41	42	Web site that displays the price of a vehicle offered for sale on the
42	43	Internet, as that term is defined in paragraph (6) of subdivision
43	44	(f) of Section 17538 of the Business and Professions Code.
44		– (d) Represent the dealer document preparation charge or
45		– certificate of compliance or noncompliance fee, as a governmental
46		– fee.
	45	+ (d) Represent the dealer document processing charge, electronic
	46	+ registration or transfer charge, or emission testing charge, as a
	47	+ governmental fee.
47	48	(e) Fail to sell a vehicle to a person at the advertised total
48	49	price, exclusive of taxes, vehicle registration fees, the California
49	50	tire fee, the fee charged by the state for the issuance of a
50	51	certificate of compliance or noncompliance pursuant to a statute,
51	52	finance charges, mobilehome escrow fees, the amount of a city,
52		– county, or city and county imposed fee or tax for a mobilehome, and a
53		– dealer document preparation charge, which charges shall not exceed
54		– fifty-five dollars ($55) for the document preparation charge and not
55		– to exceed fifty dollars ($50) for emission testing plus the actual
56		– fees charged for certificates pursuant to Section 44060 of the Health
57		– and Safety Code, while the vehicle remains unsold, unless the
58		– advertisement states the advertised total price is good only for a
59		– specified time and the time has elapsed. Advertised vehicles shall be
60		– sold at or below the advertised total price, with statutorily
61		– permitted exclusions, regardless of whether the purchaser has
62		– knowledge of the advertised total price.
	53	+ county, or city and county imposed fee or tax for a mobilehome, a
	54	+ dealer document processing charge, an electronic registration or
	55	+ transfer charge, and a charge for emission testing not to exceed
	56	+ fifty dollars ($50) plus the actual fees charged for certificates
	57	+ pursuant to Section 44060 of the Health and Safety Code, while the
	58	+ vehicle remains unsold, unless the advertisement states the
	59	+ advertised total price is good only for a specified time and the time
	60	+ has elapsed. Advertised vehicles shall be sold at or below the
	61	+ advertised total price, with statutorily permitted exclusions,
	62	+ regardless of whether the purchaser has knowledge of the advertised
	63	+ total price.
63	64	(f) (1) Advertise for sale, sell, or purchase for resale a new
64	65	vehicle of a line-make for which the dealer does not hold a
65	66	franchise.
66	67	(2) This subdivision does not apply to a transaction involving the
67	68	following:
68	69	(A) A mobilehome.
69	70	(B) A recreational vehicle as defined in Section 18010 of the
70	71	Health and Safety Code.
71	72	(C) A commercial coach, as defined in Section 18001.8 of the
72	73	Health and Safety Code.
73	74	(D) An off-highway motor vehicle subject to identification as
74	75	defined in Section 38012.
75	76	(E) A manufactured home.
76	77	(F) A new vehicle that will be substantially altered or modified
77	78	by a converter prior to resale.
78	79	(G) A commercial vehicle with a gross vehicle weight rating of
79	80	more than 10,000 pounds.
80	81	(H) A vehicle purchased for export and exported outside the
81	82	territorial limits of the United States without being registered with
82	83	the department.
83	84	(I) A vehicle acquired in the ordinary course of business as a new
84	85	vehicle by a dealer franchised to sell that vehicle, if all of the
85	86	following apply:
86	87	(i) The manufacturer or distributor of the vehicle files a
87	88	bankruptcy petition.
88	89	(ii) The franchise agreement of the dealer is terminated,
89	90	canceled, or rejected by the manufacturer or distributor as part of
90	91	the bankruptcy proceedings and the termination, cancellation, or
91	92	rejection is not a result of the revocation by the department of the
92	93	dealer’s license or the dealer’s conviction of a crime.
93	94	(iii) The vehicle is held in the inventory of the dealer on the
94	95	date the bankruptcy petition is filed.
95	96	(iv) The vehicle is sold by the dealer within six months of the
96	97	date the bankruptcy petition is filed.
97	98	(3) Subparagraph (I) of paragraph (2) does not entitle a dealer
98	99	whose franchise agreement has been terminated, canceled, or rejected
99	100	to continue to perform warranty service repairs or continue to be
100	101	eligible to offer or receive consumer or dealer incentives offered by
101	102	the manufacturer or distributor.
102	103	(g) Sell a park trailer, as specified in Section 18009.3 of the
103	104	Health and Safety Code, without disclosing in writing to the
104	105	purchaser that a park trailer is required to be moved by a
105	106	transporter or a licensed manufacturer or dealer under a permit
106	107	issued by the Department of Transportation or a local authority with
107	108	respect to highways under their respective jurisdictions.
108	109	(h) Advertise free merchandise, gifts, or services provided by a
109	110	dealer contingent on the purchase of a vehicle. “Free” includes
110	111	merchandise or services offered for sale at a price less than the
111	112	seller’s cost of the merchandise or services.
112		– (i) (1) Advertise vehicles, and related goods or services, at a
	113	+ (i) (1) Advertise vehicles, and related goods or services, at a
113	114	specified dealer price, with the intent not to supply reasonably
114	115	expectable demand, unless the advertisement discloses the number of
115	116	vehicles in stock at the advertised price. In addition, whether or
116	117	not there are sufficient vehicles in stock to supply a reasonably
117	118	expectable demand, when phrases such as “starting at,” “from,”
118	119	“beginning as low as,” or words of similar import are used in
119	120	reference to an advertised price, the advertisement shall disclose
120	121	the number of vehicles available at that advertised price.
121	122	(2) For purposes of this subdivision, in a newspaper advertisement
122	123	for a vehicle that is two model-years old or newer, the actual
123	124	phrase that states the number of vehicles in stock at the advertised
124	125	price shall be printed in a type size that is at least equal to
125	126	one-quarter of the type size, and in the same style and color of
126	127	type, used for the advertised price. However, in no case shall the
127	128	phrase be printed in less than 8-point type size, and the phrase
128	129	shall be disclosed immediately above, below, or beside the advertised
129	130	price without intervening words, pictures, marks, or symbols.
130	131	(3) The disclosure required by this subdivision is in addition to
131	132	any other disclosure required by this code or any regulation
132	133	regarding identifying vehicles advertised for sale.
133	134	(j) Use “rebate” or similar words, including, but not limited to,
134	135	“cash back,” in advertising the sale of a vehicle unless the rebate
135	136	is expressed in a specific dollar amount and is in fact a rebate
136	137	offered by the vehicle manufacturer or distributor directly to the
137	138	retail purchaser of the vehicle or to the assignee of the retail
138	139	purchaser.
139	140	(k) Require a person to pay a higher price for a vehicle and
140	141	related goods or services for receiving advertised credit terms than
141	142	the cash price the same person would have to pay to purchase the same
142	143	vehicle and related goods or services. For the purpose of this
143	144	subdivision, “cash price” has the meaning as defined in subdivision
144	145	(e) of Section 2981 of the Civil Code.
145		– ( l ) Advertise a guaranteed trade-in allowance.
	146	+ (l) Advertise a guaranteed trade-in allowance.
146	147	(m) Misrepresent the authority of a salesperson, representative,
147	148	or agent to negotiate the final terms of a transaction.
148	149	(n) (1) Use “invoice,” “dealer’s invoice,” “wholesale price,” or
149	150	similar terms that refer to a dealer’s cost for a vehicle in an
150	151	advertisement for the sale of a vehicle or advertise that the selling
151	152	price of a vehicle is above, below, or at either of the following:
152	153	(A) The manufacturer’s or distributor’s invoice price to a dealer.
153	154
154	155	(B) A dealer’s cost.
155	156	(2) This subdivision does not apply to either of the following:
156	157	(A) A communication occurring during face-to-face negotiations for
157	158	the purchase of a specific vehicle if the prospective purchaser
158	159	initiates a discussion of the vehicle’s invoice price or the dealer’s
159	160	cost for that vehicle.
160	161	(B) A communication between a dealer and a prospective commercial
161	162	purchaser that is not disseminated to the general public. For
162	163	purposes of this subparagraph, a “commercial purchaser” means a
163	164	dealer, lessor, lessor-retailer, manufacturer, remanufacturer,
164	165	distributor, financial institution, governmental entity, or person
165	166	who purchases 10 or more vehicles during a year.
166	167	(o) Violate a law prohibiting bait and switch advertising,
167	168	including, but not limited to, the guides against bait advertising
168	169	set forth in Part 238 (commencing with Section 238) of Title 16 of
169	170	the Code of Federal Regulations, as those regulations read on January
170	171	1, 1988.
171	172	(p) Make an untrue or misleading statement indicating that a
172	173	vehicle is equipped with all the factory-installed optional equipment
173	174	the manufacturer offers, including, but not limited to, a false
174	175	statement that a vehicle is “fully factory equipped.”
175	176	(q) Affix on a new vehicle a supplemental price sticker containing
176	177	a price that represents the dealer’s asking price that exceeds the
177	178	manufacturer’s suggested retail price unless all of the following
178	179	occur:
179	180	(1) The supplemental sticker clearly and conspicuously discloses
180	181	in the largest print appearing on the sticker, other than the print
181	182	size used for the dealer’s name, that the supplemental sticker price
182	183	is the dealer’s asking price, or words of similar import, and that it
183	184	is not the manufacturer’s suggested retail price.
184	185	(2) The supplemental sticker clearly and conspicuously discloses
185	186	the manufacturer’s suggested retail price.
186	187	(3) The supplemental sticker lists each item that is not included
187	188	in the manufacturer’s suggested retail price, and discloses the
188	189	additional price of each item. If the supplemental sticker price is
189	190	greater than the sum of the manufacturer’s suggested retail price and
190	191	the price of the items added by the dealer, the supplemental sticker
191	192	price shall set forth that difference and describe it as “added
192	193	mark-up.”
193	194	(r) Advertise an underselling claim, including, but not limited
194	195	to, “we have the lowest prices” or “we will beat any dealer’s price,”
195	196	unless the dealer has conducted a recent survey showing that the
196	197	dealer sells its vehicles at lower prices than another licensee in
197	198	its trade area and maintains records to adequately substantiate the
198	199	claims. The substantiating records shall be made available to the
199	200	department upon request.
200	201	(s) (1) Advertise an incentive offered by the manufacturer or
201	202	distributor if the dealer is required to contribute to the cost of
202	203	the incentive as a condition of participating in the incentive
203	204	program, unless the dealer discloses in a clear and conspicuous
204	205	manner that dealer participation may affect consumer cost.
205	206	(2) For purposes of this subdivision, “incentive” means anything
206	207	of value offered to induce people to purchase a vehicle, including,
207	208	but not limited to, discounts, savings claims, rebates, below-market
208	209	finance rates, and free merchandise or services.
209	210	(t) Display or offer for sale a used vehicle unless there is
210	211	affixed to the vehicle the Federal Trade Commission’s Buyer’s Guide
211	212	as required by Part 455 of Title 16 of the Code of Federal
212	213	Regulations.
213	214	(u) Fail to disclose in writing to the franchisor of a new motor
214	215	vehicle dealer the name of the purchaser, date of sale, and the
215	216	vehicle identification number of each new motor vehicle sold of the
216	217	line-make of that franchisor, or intentionally submit to that
217	218	franchisor a false name for the purchaser or false date for the date
218	219	of sale.
219	220	(v) Enter into a contract for the retail sale of a motor vehicle
220	221	unless the contract clearly and conspicuously discloses whether the
221	222	vehicle is being sold as a new vehicle or a used vehicle, as defined
222	223	in this code.
223	224	(w) Use a simulated check, as defined in subdivision (a) of
224	225	Section 22433 of the Business and Professions Code, in an
225	226	advertisement for the sale or lease of a vehicle.
226	227	(x) Fail to disclose, in a clear and conspicuous manner in at
227	228	least 10-point boldface type on the face of a contract for the retail
228	229	sale of a new motor vehicle that this transaction is, or is not,
229	230	subject to a fee received by an autobroker from the selling new motor
230	231	vehicle dealer, and the name of the autobroker, if applicable.
231		– (y) As used in this section, “make” and “model” have the same
	232	+ (y) Sell or lease a new motor vehicle after October 1, 2012,
	233	+ unless the dealer has a contractual agreement with the department to
	234	+ be a private industry partner pursuant to Section 1685. This
	235	+ subdivision does not apply to the sale or lease of a motorcycle or
	236	+ off-highway motor vehicle subject to identification under Section
	237	+ 38010 or a recreational vehicle as defined in Section 18010 of the
	238	+ Health and Safety Code.
	239	+ (z) As used in this section, “make” and “model” have the same
232	240	meaning as is provided in Section 565.3 of Title 49 of the Code of
233	241	Federal Regulations.
234		– (z) This section shall become inoperative on July 1, 2012, and, as
235		– of January 1, 2013, is repealed, unless a later enacted statute that
236		– is enacted before January 1, 2013, deletes or extends the dates on
237		– which it becomes inoperative and is repealed.
	242	+ (aa) This section shall become operative on July 1, 2012.

  Section 15, 16

1		– SEC. 15. Section 11713.21 of the Vehicle Code is amended to read:
	1	+ SEC. 16. Section 11713.21 is added to the Vehicle Code, to read:
2	2	11713.21. (a) (1) A dealer shall not sell a used vehicle, as
3	3	defined in Section 665 and subject to registration under this code,
4	4	at retail to an individual for personal, family, or household use
5	5	without offering the buyer a contract cancellation option agreement
6	6	that allows the buyer to return the vehicle without cause. This
7	7	section does not apply to a used vehicle having a purchase price of
8	8	forty thousand dollars ($40,000) or more, a motorcycle, as defined in
9	9	Section 400, or a recreational vehicle, as defined in Section 18010
10	10	of the Health and Safety Code.
11	11	(2) The purchase price for the contract cancellation option shall
12	12	not exceed the following:
13	13	(A) Seventy-five dollars ($75) for a vehicle with a cash price of
14	14	five thousand dollars ($5,000) or less.
15	15	(B) One hundred fifty dollars ($150) for a vehicle with a cash
16	16	price of more than five thousand dollars ($5,000), but not more than
17	17	ten thousand dollars ($10,000).
18	18	(C) Two hundred fifty dollars ($250) for a vehicle with a cash
19	19	price of more than ten thousand dollars ($10,000), but not more than
20	20	thirty thousand dollars ($30,000).
21	21	(D) One percent of the purchase price for a vehicle with a cash
22	22	price of more than thirty thousand dollars ($30,000), but less than
23	23	forty thousand dollars ($40,000).
24	24	The term “cash price” as used in this paragraph has the same
25	25	meaning as described in subparagraph (A) of paragraph (1) of
26	26	subdivision (a) of Section 2982 of the Civil Code. “Cash price” also
27		– excludes registration, transfer, titling, license, and California
28		– tire and optional business partnership automation fees.
	27	+ excludes registration, transfer, titling, and license fees, the
	28	+ California tire fee, and any charge to electronically register or
	29	+ transfer the vehicle.
29	30	(b) To comply with subdivision (a), and notwithstanding Section
30	31	2981.9 of the Civil Code, a contract cancellation option agreement
31	32	shall be contained in a document separate from the conditional sales
32	33	contract or other vehicle purchase agreement and shall contain, at a
33	34	minimum, the following:
34	35	(1) The name of the seller and the buyer.
35	36	(2) A description and the Vehicle Identification Number of the
36	37	vehicle purchased.
37	38	(3) A statement specifying the time within which the buyer must
38	39	exercise the right to cancel the purchase under the contract
39	40	cancellation option and return the vehicle to the dealer. The dealer
40	41	shall not specify a time that is earlier than the dealer’s close of
41	42	business on the second day following the day on which the vehicle was
42	43	originally delivered to the buyer by the dealer.
43	44	(4) A statement that clearly and conspicuously specifies the
44	45	dollar amount of any restocking fee the buyer must pay to the dealer
45	46	to exercise the right to cancel the purchase under the contract
46	47	cancellation option. The restocking fee shall not exceed one hundred
47	48	seventy-five dollars ($175) if the vehicle’s cash price is five
48	49	thousand dollars ($5,000) or less, three hundred fifty dollars ($350)
49	50	if the vehicle’s cash price is less than ten thousand dollars
50	51	($10,000), and five hundred dollars ($500) if the vehicle cash price
51	52	is ten thousand dollars ($10,000) or more. The dealer shall apply
52	53	toward the restocking fee the price paid by the buyer for the
53	54	contract cancellation option. The price for the purchase of the
54	55	contract cancellation option is not otherwise subject to setoff or
55	56	refund.
56	57	(5) Notwithstanding paragraph (4), when a buyer, who leased the
57	58	purchased vehicle immediately preceding the dealer’s sale of the
58	59	vehicle to the buyer, exercises the contract cancellation option, the
59	60	limit on the amount of a restocking fee required to be paid by the
60	61	buyer shall be increased. That increased amount shall be the amount
61	62	the buyer would have been obligated to pay the lessor, at the time of
62	63	the termination of the lease, for the following charges, as
63	64	specified in the lease, and as if the buyer had not purchased the
64	65	contract cancellation option:
65	66	(A) Excess mileage.
66	67	(B) Unrepaired damage.
67	68	(C) Excess wear and tear.
68	69	(6) A statement specifying the maximum number of miles that the
69	70	vehicle may be driven after its original delivery by the dealer to
70	71	the buyer to remain eligible for cancellation under the contract
71	72	cancellation option. A dealer shall not specify fewer than 250 miles
72	73	in the contract cancellation option agreement.
73	74	(7) A statement that the contract cancellation option gives the
74	75	buyer the right to cancel the purchase and obtain a full refund,
75	76	minus the purchase price for the contract cancellation option
76	77	agreement; and that the right to cancel will apply only if, within
77	78	the time specified in the contract cancellation option agreement, the
78	79	following are personally delivered to the selling dealer by the
79	80	buyer: a written notice exercising the right to cancel the purchase
80	81	signed by the buyer; any restocking fee specified in the contract
81	82	cancellation option agreement minus the purchase price for the
82	83	contract cancellation option agreement; the original contract
83	84	cancellation option agreement and vehicle purchase contract and
84	85	related documents, if the seller gave those original documents to the
85	86	buyer; all original vehicle titling and registration documents, if
86	87	the seller gave those original documents to the buyer; and the
87	88	vehicle, free of all liens and encumbrances, other than any lien or
88	89	encumbrance created by or incidental to the conditional sales
89	90	contract, any loan arranged by the dealer, or any purchase money loan
90	91	obtained by the buyer from a third party, and in the same condition
91	92	as when it was delivered by the dealer to the buyer, reasonable wear
92	93	and tear and any defect or mechanical problem that manifests or
93	94	becomes evident after delivery that was not caused by the buyer
94	95	excepted, and which must not have been driven beyond the mileage
95	96	limit specified in the contract cancellation option agreement. The
96	97	agreement may also provide that the buyer will execute documents
97	98	reasonably necessary to effectuate the cancellation and refund and as
98	99	reasonably required to comply with applicable law.
99	100	(8) At the bottom of the contract cancellation option agreement, a
100	101	statement that may be signed by the buyer to indicate the buyer’s
101	102	election to exercise the right to cancel the purchase under the terms
102	103	of the contract cancellation option agreement, and the last date and
103	104	time by which the option to cancel may be exercised, followed by a
104	105	line for the buyer’s signature. A particular form of statement is not
105	106	required, but the following statement is sufficient: “By signing
106	107	below, I elect to exercise my right to cancel the purchase of the
107	108	vehicle described in this agreement.” The buyer’s delivery of the
108	109	purchase cancellation agreement to the dealer with the buyer’s
109	110	signature following this statement shall constitute sufficient
110		– written notice exercising the right to cancel the purchase under
111		– paragraph (6). The dealer shall provide the buyer with the statement
	111	+ written notice exercising the right to cancel the purchase pursuant
	112	+ to paragraph (6). The dealer shall provide the buyer with the statement
112	113	required by this paragraph in duplicate to enable the buyer to return
113	114	the signed cancellation notice and retain a copy of the cancellation
114	115	agreement.
115	116	(9) If, pursuant to paragraph (5), the limit on the restocking fee
116	117	is increased by the amount the buyer, who exercises a contract
117	118	cancellation option would have been obligated to pay the lessor, upon
118	119	termination of the lease, for charges for excess mileage, unrepaired
119	120	damage, or excess wear and tear, as specified in the lease, the
120	121	dealer shall provide the buyer with a notice of the contents of
121	122	paragraph (5), including a statement regarding the increased
122	123	restocking fee.
123	124	(c) (1) No later than the second day following the day on which
124	125	the buyer exercises the right to cancel the purchase in compliance
125	126	with the contract cancellation option agreement, the dealer shall
126	127	cancel the contract and provide the buyer with a full refund,
127	128	including that portion of the sales tax attributable to amounts
128	129	excluded pursuant to Section 6012.3 of the Revenue and Taxation Code.
129	130
130	131	(2) If the buyer was not charged for the contract cancellation
131	132	option agreement, the dealer shall return to the buyer, no later than
132	133	the day following the day on which the buyer exercises the right to
133	134	cancel the purchase, any motor vehicle the buyer left with the seller
134	135	as a downpayment or trade-in. If the dealer has sold or otherwise
135	136	transferred title to the motor vehicle that was left as a downpayment
136	137	or trade-in, the full refund described in paragraph (1) shall
137	138	include the fair market value of the motor vehicle left as a
138	139	downpayment or trade-in, or its value as stated in the contract or
139	140	purchase order, whichever is greater.
140	141	(3) If the buyer was charged for the contract cancellation option
141	142	agreement, the dealer shall retain any motor vehicle the buyer left
142	143	with the dealer as a downpayment or trade-in until the buyer
143	144	exercises the right to cancel or the right to cancel expires. If the
144	145	buyer exercises the right to cancel the purchase, the dealer shall
145	146	return to the buyer, no later than the day following the day on which
146	147	the buyer exercises the right to cancel the purchase, any motor
147	148	vehicle the buyer left with the seller as a downpayment or trade-in.
148	149	If the dealer has inadvertently sold or otherwise transferred title
149	150	to the motor vehicle as the result of a bona fide error,
150	151	notwithstanding reasonable procedures designed to avoid that error,
151	152	the inadvertent sale or transfer of title shall not be deemed a
152	153	violation of this paragraph, and the full refund described in
153	154	paragraph (1) shall include the retail market value of the motor
154	155	vehicle left as a downpayment or trade-in, or its value as stated in
155	156	the contract or purchase order, whichever is greater.
156	157	(d) If the dealer received a portion of the purchase price by
157	158	credit card, or other third-party payer on the buyer’s account, the
158	159	dealer may refund that portion of the purchase price to the credit
159	160	card issuer or third-party payer for credit to the buyer’s account.
160	161	(e) Notwithstanding subdivision (a), a dealer is not required to
161	162	offer a contract cancellation option agreement to an individual who
162	163	exercised his or her right to cancel the purchase of a vehicle from
163	164	the dealer pursuant to a contract cancellation option agreement
164	165	during the immediately preceding 30 days. A dealer is not required to
165	166	give notice to a subsequent buyer of the return of a vehicle
166	167	pursuant to this section. This subdivision does not abrogate or limit
167	168	any disclosure obligation imposed by any other law.
168	169	(f) This section does not affect or alter the legal rights,
169	170	duties, obligations, or liabilities of the buyer, the dealer, or the
170	171	dealer’s agents or assigns, that would exist in the absence of a
171	172	contract cancellation option agreement. The buyer is the owner of a
172	173	vehicle when he or she takes delivery of a vehicle until the vehicle
173	174	is returned to the dealer pursuant to a contract cancellation option
174	175	agreement, and the existence of a contract cancellation option
175	176	agreement shall not impose permissive user liability on the dealer,
176	177	or the dealer’s agents or assigns, under Section 460 or 17150 or
177	178	otherwise.
178	179	(g) This section does not affect the ability of a buyer to rescind
179	180	the contract or revoke acceptance under any other law.
180		– (h) This section shall become inoperative on July 1, 2012, and, as
181		– of January 1, 2013, is repealed, unless a later enacted statute that
182		– is enacted before January 1, 2013, deletes or extends the dates on
183		– which it becomes inoperative and is repealed.
	181	+ (h) This section shall become operative on July 1, 2012.

  Section 17, 18  

	1	+ SEC. 17. Section 11713.26 is added to the Vehicle Code, to read:
	2	+ 11713.26. (a) A dealer shall not display or offer for sale at
	3	+ retail a used vehicle, as defined in Section 665 and subject to
	4	+ registration under this code, unless the dealer first obtains a
	5	+ NMVTIS vehicle history report from a NMVTIS data provider for the
	6	+ vehicle identification number of the vehicle.
	7	+ (b) If a NMVTIS vehicle history report for a used vehicle
	8	+ indicates that the vehicle is or has been a junk automobile or a
	9	+ salvage automobile or the vehicle has been reported as a junk
	10	+ automobile or a salvage automobile by a junk yard, salvage yard, or
	11	+ insurance carrier pursuant to Section 30504 of Title 49 of the United
	12	+ States Code, or the certificate of title contains a brand, a dealer
	13	+ shall do both of the following:
	14	+ (1) Post the following disclosure on the vehicle while it is
	15	+ displayed for sale at retail in at least 14-point bold black type,
	16	+ except for the title “Warning” which shall be in at least 18-point
	17	+ bold black type, on at least a 4 x 5.5 inch red background in close
	18	+ proximity to the Federal Trade Commission’s Buyer’s Guide:
	19	+
	20	+
	21	+ “WARNING
	22	+
	23	+ According to a vehicle history report issued by the National Motor
	24	+ Vehicle Title Information System (NMVTIS), this vehicle has been
	25	+ reported as a total-loss vehicle by an insurance company, has been
	26	+ reported into NMVTIS by a junk or salvage reporting entity, or has a
	27	+ title brand which may materially affect the value, safety, and/or
	28	+ condition of the vehicle. Because of its history as a junk, salvage,
	29	+ or title-branded vehicle, the manufacturer’s warranty or service
	30	+ contract on this vehicle may be affected. Ask the dealer to see a
	31	+ copy of the NMVTIS vehicle history report. You may independently
	32	+ obtain the report by checking NMVTIS online at
	33	+ www.vehiclehistory.gov.”
1	34
	35	+ (2) Provide the retail purchaser with a copy of the NMVTIS vehicle
	36	+ history report upon request prior to sale.
	37	+ (c) Subdivisions (a) and (b) do not apply to a used vehicle for
	38	+ which NMVTIS does not have a record if the dealer attempts to obtain
	39	+ a NMVTIS vehicle history report for the vehicle.
	40	+ (d) As used in this section the following terms have the following
	41	+ meanings:
	42	+ (1) “NMVTIS” means the National Motor Vehicle Title Information
	43	+ System established pursuant to Section 30501 et seq. of Title 49 of
	44	+ the United States Code.
	45	+ (2) “NMVTIS vehicle history report” means a report obtained by an
	46	+ NMVTIS data provider that contains:
	47	+ (A) The date of the report.
	48	+ (B) Any disclaimer required by the operator of NMVTIS.
	49	+ (C) If available from NMVTIS, information establishing the
	50	+ following:
	51	+ (i) Whether the vehicle is titled in a particular state.
	52	+ (ii) Whether the title to the vehicle was branded by a state.
	53	+ (iii) The validity and status of a document purporting to be a
	54	+ certificate of title for the vehicle.
	55	+ (iv) Whether the vehicle is or has been a junk automobile or a
	56	+ salvage automobile.
	57	+ (v) The odometer mileage disclosure required pursuant to Section
	58	+ 32705 of Title 49 of the United States Code for that vehicle on the
	59	+ date the certificate of title for that vehicle was issued and any
	60	+ later mileage information.
	61	+ (vi) Whether the vehicle has been reported as a junk automobile or
	62	+ a salvage automobile pursuant to Section 30504 of Title 49 of the
	63	+ United States Code.
	64	+ (3) “Junk automobile,” “operator,” and “salvage automobile” shall
	65	+ have the same meanings as defined in Section 25.52 of Title 28 of the
	66	+ Code of Federal Regulations.
	67	+ (4) “NMVTIS data provider” means a person authorized by the NMVTIS
	68	+ operator as an access portal provider for NMVTIS.
	69	+ (5) “NMVTIS operator” means the individual or entity authorized or
	70	+ designated as the operator of NMVTIS pursuant to subdivision (b) of
	71	+ Section 30502 of Title 49 of the United States Code, or the office
	72	+ designated by the United States Attorney General, if there is no
	73	+ authorized or designated individual or entity.
	74	+ (e) Nothing in this section shall prohibit a NMVTIS data provider
	75	+ from including, in a NMVTIS vehicle history report containing the
	76	+ information required by paragraph (2) of subdivision (d), additional
	77	+ vehicle history information obtained from resources other than
	78	+ NMVTIS.
	79	+ (f) This section shall not create any legal duty upon the dealer
	80	+ related to the accuracy, errors, or omissions contained in a NMVTIS
	81	+ vehicle history report that is obtained from a NMVTIS data provider
	82	+ or any legal duty to provide information added to NMVTIS after the
	83	+ dealer obtained the NMVTIS vehicle history report pursuant to
	84	+ subdivision (a).
	85	+ (g) (1) In the event that all NMVTIS data providers cease to make
	86	+ NMVTIS vehicle history reports available to the public, this section
	87	+ shall become inoperative.
	88	+ (2) In the event that all NMVTIS data providers cease to make
	89	+ NMVTIS vehicle history reports available to the public, it is the
	90	+ intent of the Legislature that the United States Department of
	91	+ Justice notify the Legislature and the department.
	92	+ (h) This section does not apply to the sale of a recreational
	93	+ vehicle, a motorcycle, or an off-highway motor vehicle subject to
	94	+ identification under Section 38010.
	95	+ (i) This section shall become operative on July 1, 2012.
	96	+ SEC. 18. No reimbursement is required by this act pursuant to
	97	+ Section 6 of Article XIII B of the California Constitution because
	98	+ the only costs that may be incurred by a local agency or school
	99	+ district will be incurred because this act creates a new crime or
	100	+ infraction, eliminates a crime or infraction, or changes the penalty
	101	+ for a crime or infraction, within the meaning of Section 17556 of the
	102	+ Government Code, or changes the definition of a crime within the
	103	+ meaning of Section 6 of Article XIII B of the California
	104	+ Constitution.