| Last Version Text |
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<ns0:Description>
<ns0:Id>20250SB__079194ENR</ns0:Id>
<ns0:VersionNum>94</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-21</ns0:ActionDate>
</ns0:Action>
<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-03-24</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-05-06</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-07-03</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-09-02</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>PASSED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-09-08</ns0:ActionDate>
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<ns0:ActionText>PASSED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-09-10</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>ENROLLED</ns0:ActionText>
<ns0:ActionDate>2025-09-13</ns0:ActionDate>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>791</ns0:MeasureNum>
<ns0:MeasureState>ENR</ns0:MeasureState>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Cortese</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_ORIGINATING">(Coauthors: Senators Archuleta, Ashby, Dahle, Gonzalez, and Strickland)</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_OPPOSITE">(Coauthors: Assembly Members Chen and Flora)</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Cortese</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Archuleta</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Ashby</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Dahle</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Gonzalez</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Strickland</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Chen</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Flora</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to amend, repeal, and add Sections 4456.5 and 11713.1 of the Vehicle Code, relating to vehicles.</ns0:Title>
<ns0:RelatingClause>vehicles</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Vehicle dealers: document processing charge.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>Existing law authorizes a dealer to charge the purchaser or lessee of a vehicle a document processing charge for the preparation and processing of documents, disclosures, and titling, registration, and information security obligations imposed by state and federal law. Existing law authorizes a dealer that has a contractual agreement with the Department of Motor Vehicles to be a private industry partner to set the document processing charge at up to $85 and authorizes all other dealers to set the document processing charge at up to $70.</html:p>
<html:p>This bill would,
until January 1, 2031, subject to specified requirements, authorize a dealer to charge a document processing charge that exceeds those amounts if the charge does not exceed 1% of the total price of the vehicle and does not exceed $260.
The bill would exempt the sale of vehicles to the State of California and any local governmental entity from these provisions. The bill would make a conforming change.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>NO</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_7B900DF4-55C7-45B2-91F3-037C08FF0647">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 4456.5 of the
<ns0:DocName>Vehicle Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_9143C3C9-64A7-4D0A-984F-488233A3BA89">
<ns0:Num>4456.5.</ns0:Num>
<ns0:LawSectionVersion id="id_5771B924-D6F5-46D8-970F-DF40BB3767BA">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A dealer may charge the purchaser or lessee of a vehicle the following charges:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A document processing charge for the preparation and processing of documents, disclosures, and titling, registration, and information security obligations imposed by state and federal law. The dealer document processing charge shall not be represented as a governmental fee.
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
If a dealer has a contractual agreement with the department to be a private industry partner pursuant to Section 1685, the document processing charge shall not exceed eighty-five dollars ($85).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If a dealer does not have a contractual agreement with the department to be a private industry partner pursuant to Section 1685, the document processing charge shall not exceed seventy dollars ($70).
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
Subject to the requirements described in subdivision (b), a dealer may charge a document processing charge that exceeds the amounts specified in subparagraphs (A) and (B) if both of the following conditions are satisfied:
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
The document processing charge does not exceed 1 percent of the total price of the vehicle.
</html:p>
<html:p>
(II)
<html:span class="EnSpace"/>
The document processing charge does not exceed
two hundred sixty dollars ($260).
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
For purposes of this subparagraph, “total price of the vehicle” means the price of the vehicle before the addition of government charges and any additional accessories and services ordered by the purchaser or lessee.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
This subparagraph shall not apply to the sale of vehicles to the State of California or any local governmental entity, including cities, counties, cities and counties, and special districts.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
An electronic filing charge, not to exceed the actual amount the dealer is charged by a first-line service provider for providing license plate processing, postage, and the fees and services authorized pursuant to
subdivisions (a) and (d) of Section 1685, including services related to reporting vehicle sales and producing temporary license plates pursuant to Sections 4456 and 4456.2. The electronic filing charge shall not be used to pay for additional fees, goods, or services not directly related to the electronic registration of a motor vehicle, including, but not limited to, the receipt by the dealer of free or discounted goods, services, or financial incentives. The director may establish, through the adoption of regulations, the maximum amount that a first-line service provider may charge a dealer. The electronic filing charge shall not be represented as a governmental fee.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
A dealer that charges a document processing charge pursuant to subparagraph (C) of paragraph (1) of subdivision (a) shall comply with all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The dealer shall conspicuously display a notice, not less than 8 inches high and 10 inches wide, in each sales office and sales cubicle of a dealer’s established place of business where written terms of specific sale or lease transactions are discussed with prospective purchasers or lessees, and in each room of a dealer’s established place of business where sale and lease contracts are regularly executed, that states the following:
</html:p>
<html:br/>
<html:p>“The dealer is authorized to collect a document processing charge that varies based on the price of the vehicle, but shall in no event exceed
$260. This charge is not a government fee.”</html:p>
<html:br/>
<html:p>
(2)
<html:span class="EnSpace"/>
The dealer shall provide to the customer, prior to the execution of the sales or lease agreement, a disclosure that includes the specific amount of the document processing charge and the following statement in bold 12-point font:
</html:p>
<html:br/>
<html:p>“The dealer is authorized to collect a document processing charge in the final contract. This charge is not a government fee.”</html:p>
<html:br/>
<html:p>
(3)
<html:span class="EnSpace"/>
A dealer shall not collect any other charge for the preparation and processing of documents, disclosures, and titling, registration, and information security obligations imposed by state and
federal law, unless the charge is expressly authorized by state or federal law.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
As used in this section, the term “first-line service provider” shall have the same meaning as defined in subdivision (b) of Section 1685.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
This section does not prohibit a first-line service provider from entering into contracts with a dealer for products and services unrelated to electronic vehicle registration services.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
This section shall remain in effect only until January 1, 2031, and as of that date is repealed.
</html:p>
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</ns0:BillSection>
<ns0:BillSection id="id_4DD5D0E6-1F89-44F1-9669-A2A16FFDCAB3">
<ns0:Num>SEC. 2.</ns0:Num>
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Section 4456.5 is added to the
<ns0:DocName>Vehicle Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_E716EF7C-B360-4FC6-AFFF-46C6289B7905">
<ns0:Num>4456.5.</ns0:Num>
<ns0:LawSectionVersion id="id_28449A8A-1CA3-4ACF-800B-B5B2181A83CF">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A dealer may charge the purchaser or lessee of a vehicle the following charges:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A document processing charge for the preparation and processing of documents, disclosures, and titling, registration, and information security obligations imposed by state and federal law. The dealer document processing charge shall not be represented as a governmental fee.
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
If a dealer has a contractual agreement with the department to be a private industry partner pursuant to Section 1685, the document processing
charge shall not exceed eighty-five dollars ($85).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If a dealer does not have a contractual agreement with the department to be a private industry partner pursuant to Section 1685, the document processing charge shall not exceed seventy dollars ($70).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
An electronic filing charge, not to exceed the actual amount the dealer is charged by a first-line service provider for providing license plate processing, postage, and the fees and services authorized pursuant to subdivisions (a) and (d) of Section 1685, including services related to reporting vehicle sales and producing temporary license plates pursuant to Sections 4456 and 4456.2. The electronic filing charge shall not be used to pay for additional
fees, goods, or services not directly related to the electronic registration of a motor vehicle, including, but not limited to, the receipt by the dealer of free or discounted goods, services, or financial incentives. The director may establish, through the adoption of regulations, the maximum amount that a first-line service provider may charge a dealer. The electronic filing charge shall not be represented as a governmental fee.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
As used in this section, the term “first-line service provider” shall have the same meaning as defined in subdivision (b) of Section 1685.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
This section does not prohibit a first-line service provider from entering into contracts with a dealer for products and services
unrelated to electronic vehicle registration services.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
This section shall become operative on January 1, 2031.
</html:p>
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<ns0:BillSection id="id_3D4D5494-B664-4D31-815F-C435037DDC6F">
<ns0:Num>SEC. 3.</ns0:Num>
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Section 11713.1 of the
<ns0:DocName>Vehicle Code</ns0:DocName>
is amended to read:
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<ns0:Fragment>
<ns0:LawSection id="id_5F5AFC26-2D11-4291-9F3A-70ABF33CA96A">
<ns0:Num>11713.1.</ns0:Num>
<ns0:LawSectionVersion id="id_D2A39663-7246-4B37-9CC8-08604F63E679">
<ns0:Content>
<html:p>It is a violation of this code for the holder of a dealer’s license issued under this article to do any of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Advertise a specific vehicle for sale without identifying the vehicle by its model, model-year, and either its license number or that portion of the vehicle identification number that distinguishes the vehicle from all other vehicles of the same make, model, and model-year. Model-year is not required to be advertised for current model-year vehicles. Year models are no longer current when ensuing year models are available for purchase at retail in California. An advertisement that offers for sale a class of new vehicles in a dealer’s inventory, consisting of five or more vehicles, that
are all of the same make, model, and model-year is not required to include in the advertisement the vehicle identification numbers or license numbers of those vehicles.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Advertise the total price of a vehicle without including all costs to the purchaser at time of sale, except taxes, vehicle registration fees, the California tire fee, as defined in Section 42885 of the Public Resources Code, emission testing charges not exceeding fifty dollars ($50), actual fees charged for certificates pursuant to Section 44060 of the Health and Safety Code, finance charges, and any dealer document processing charge or charge to electronically register or transfer the vehicle.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Exclude from an advertisement of a vehicle for sale that there will be added to the advertised
total price at the time of sale, charges for sales tax, vehicle registration fees, the California tire fee, the fee charged by the state for the issuance of a certificate of compliance or noncompliance pursuant to a statute, finance charges, a charge to electronically register or transfer the vehicle, and a dealer document processing charge.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The obligations imposed by paragraph (1) are satisfied by adding to the advertisement a statement containing no abbreviations and that is worded in substantially the following form: “Plus government fees and taxes, any finance charges, any dealer document processing charge not to exceed
two hundred sixty dollars ($260), any electronic filing charge, and any emission testing charge.”
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
For purposes of paragraph (1), “advertisement” means an advertisement in a newspaper, magazine, or direct mail publication
that is two or more columns in width or one column in width and more than seven inches in length, or on a webpage of a dealer’s internet website that displays the price of a vehicle offered for sale on the Internet, as that term is defined in paragraph (6) of subdivision (f) of Section 17538 of the Business and Professions Code.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Represent the dealer document processing charge, electronic registration or transfer charge, or emission testing charge, as a governmental fee.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Fail to sell a vehicle to a person at the advertised total price, exclusive of taxes, vehicle registration fees, the California tire fee, the fee charged by the state for the issuance of a certificate of compliance or noncompliance pursuant to a statute, finance
charges, mobilehome escrow fees, the amount of a city, county, or city and county imposed fee or tax for a mobilehome, a dealer document processing charge, an electronic registration or transfer charge, and a charge for emission testing not to exceed fifty dollars ($50) plus the actual fees charged for certificates pursuant to Section 44060 of the Health and Safety Code, while the vehicle remains unsold, unless the advertisement states the advertised total price is good only for a specified time and the time has elapsed. Advertised vehicles shall be sold at or below the advertised total price, with statutorily permitted exclusions, regardless of whether the purchaser has knowledge of the advertised total price.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Advertise for sale, sell, or purchase for resale a new vehicle of a line-make for which the
dealer does not hold a franchise.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
This subdivision does not apply to a transaction involving the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A mobilehome.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A commercial coach, as defined in Section 18001.8 of the Health and Safety Code.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
An off-highway motor vehicle subject to identification as defined in Section 38012.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
A manufactured home.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
A new vehicle that will be substantially altered or modified by a converter prior to resale.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
A commercial vehicle with a gross vehicle
weight rating of more than 10,000 pounds.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
A vehicle purchased for export and exported outside the territorial limits of the United States without being registered with the department.
</html:p>
<html:p>
(H)
<html:span class="EnSpace"/>
A vehicle acquired in the ordinary course of business as a new vehicle by a dealer franchised to sell that vehicle, if all of the following apply:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The manufacturer or distributor of the vehicle files a bankruptcy petition.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The franchise agreement of the dealer is terminated, canceled, or rejected by the manufacturer or distributor as part of the bankruptcy proceedings and the termination, cancellation, or rejection is not a result of the revocation by
the department of the dealer’s license or the dealer’s conviction of a crime.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The vehicle is held in the inventory of the dealer on the date the bankruptcy petition is filed.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The vehicle is sold by the dealer within six months of the date the bankruptcy petition is filed.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Subparagraph (H) of paragraph (2) does not entitle a dealer whose franchise agreement has been terminated, canceled, or rejected to continue to perform warranty service repairs or continue to be eligible to offer or receive consumer or dealer incentives offered by the manufacturer or distributor.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
Sell a park trailer, as specified in Section 18009.3 of the Health and Safety
Code, without disclosing in writing to the purchaser that a park trailer is required to be moved by a transporter or a licensed manufacturer or dealer under a permit issued by the Department of Transportation or a local authority with respect to highways under their respective jurisdictions.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
Advertise free merchandise, gifts, or services provided by a dealer contingent on the purchase of a vehicle. “Free” includes merchandise or services offered for sale at a price less than the seller’s cost of the merchandise or services.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Advertise vehicles, and related goods or services, at a specified dealer price, with the intent not to supply reasonably expectable demand, unless the advertisement discloses the number of vehicles in stock at the advertised price.
In addition, whether or not there are sufficient vehicles in stock to supply a reasonably expectable demand, when phrases such as “starting at,” “from,” “beginning as low as,” or words of similar import are used in reference to an advertised price, the advertisement shall disclose the number of vehicles available at that advertised price.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For purposes of this subdivision, in a newspaper advertisement for a vehicle that is two model-years old or newer, the actual phrase that states the number of vehicles in stock at the advertised price shall be printed in a type size that is at least equal to one-quarter of the type size, and in the same style and color of type, used for the advertised price. However, in no case shall the phrase be printed in less than 8-point type size, and the phrase shall be disclosed immediately above, below, or beside
the advertised price without intervening words, pictures, marks, or symbols.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The disclosure required by this subdivision is in addition to any other disclosure required by this code or any regulation regarding identifying vehicles advertised for sale.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
Use “rebate” or similar words, including, but not limited to, “cash back,” in advertising the sale of a vehicle unless the rebate is expressed in a specific dollar amount and is in fact a rebate
offered by the vehicle manufacturer or distributor, a finance company affiliated with a vehicle manufacturer or distributor, a regulated utility, or a governmental entity directly to the retail purchaser of the vehicle or to the assignee of the retail purchaser.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
Require a person to pay a higher price for a vehicle and related goods or services for receiving advertised credit terms than the cash price the same person would have to pay to purchase the same vehicle and related goods or services. For the purpose of this subdivision, “cash price” has the same meaning as defined in subdivision (e) of Section 2981 of the Civil Code.
</html:p>
<html:p>
(l)
<html:span class="EnSpace"/>
Advertise a guaranteed trade-in allowance.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
Misrepresent the authority of a
salesperson, representative, or agent to negotiate the final terms of a transaction.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Use “invoice,” “dealer’s invoice,” “wholesale price,” or similar terms that refer to a dealer’s cost for a vehicle in an advertisement for the sale of a vehicle or advertise that the selling price of a vehicle is above, below, or at either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The manufacturer’s or distributor’s invoice price to a dealer.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A dealer’s cost.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
This subdivision does not apply to either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A communication occurring during face-to-face negotiations for the purchase of a specific
vehicle if the prospective purchaser initiates a discussion of the vehicle’s invoice price or the dealer’s cost for that vehicle.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A communication between a dealer and a prospective commercial purchaser that is not disseminated to the general public. For purposes of this subparagraph, a “commercial purchaser” means a dealer, lessor, lessor-retailer, manufacturer, remanufacturer, distributor, financial institution, governmental entity, or person who purchases 10 or more vehicles during a year.
</html:p>
<html:p>
(o)
<html:span class="EnSpace"/>
Violate a law prohibiting bait and switch advertising, including, but not limited to, the guides against bait advertising set forth in Part 238 (commencing with Section 238) of Title 16 of the Code of Federal Regulations, as those regulations read on January 1, 1988.
</html:p>
<html:p>
(p)
<html:span class="EnSpace"/>
Make an untrue or misleading statement indicating that a vehicle is equipped with all the factory-installed optional equipment the manufacturer offers, including, but not limited to, a false statement that a vehicle is “fully factory equipped.”
</html:p>
<html:p>
(q)
<html:span class="EnSpace"/>
Except as provided in Section 24014, affix on a new vehicle a supplemental price sticker containing a price that represents the dealer’s asking price that exceeds the manufacturer’s suggested retail price unless all of the following occur:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The supplemental sticker clearly and conspicuously discloses in the largest print appearing on the sticker, other than the print size used for the dealer’s name, that the supplemental sticker price is the dealer’s asking price, or words
of similar import, and that it is not the manufacturer’s suggested retail price.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The supplemental sticker clearly and conspicuously discloses the manufacturer’s suggested retail price.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The supplemental sticker lists each item that is not included in the manufacturer’s suggested retail price, and discloses the additional price of each item. If the supplemental sticker price is greater than the sum of the manufacturer’s suggested retail price and the price of the items added by the dealer, the supplemental sticker price shall set forth that difference and describe it as “added mark-up.”
</html:p>
<html:p>
(r)
<html:span class="EnSpace"/>
Advertise an underselling claim, including, but not limited to, “we have the lowest prices” or “we will beat any dealer’s
price,” unless the dealer has conducted a recent survey showing that the dealer sells its vehicles at lower prices than another licensee in its trade area and maintains records to adequately substantiate the claims. The substantiating records shall be made available to the department upon request.
</html:p>
<html:p>
(s)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Advertise an incentive offered by the manufacturer or
distributor if the dealer is required to contribute to the cost of the incentive as a condition of participating in the incentive program, unless the dealer discloses in a clear and conspicuous manner that dealer participation may affect consumer cost.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For purposes of this subdivision, “incentive” means anything of value offered to induce people to purchase a vehicle, including, but not limited to, discounts, savings claims, rebates, below-market finance rates, and free merchandise or services.
</html:p>
<html:p>
(t)
<html:span class="EnSpace"/>
Display or offer for sale a used vehicle unless there is affixed to the vehicle the Federal Trade Commission’s Buyer’s Guide as required by Part 455 of Title 16 of the Code of Federal Regulations.
</html:p>
<html:p>
(u)
<html:span class="EnSpace"/>
Fail to
disclose in writing to the franchisor of a new motor vehicle dealer the name of the purchaser, date of sale, and the vehicle identification number of each new motor vehicle sold of the line-make of that franchisor, or intentionally submit to that franchisor a false name for the purchaser or false date for the date of sale.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
Enter into a contract for the retail sale of a motor vehicle unless the contract clearly and conspicuously discloses whether the vehicle is being sold as a new vehicle or a used vehicle, as defined in this code.
</html:p>
<html:p>
(w)
<html:span class="EnSpace"/>
Use a simulated check, as defined in subdivision (a) of Section 22433 of the Business and Professions Code, in an advertisement for the sale or lease of a vehicle.
</html:p>
<html:p>
(x)
<html:span class="EnSpace"/>
Fail to
disclose, in a clear and conspicuous manner in at least 10-point boldface type on the face of a contract for the retail sale of a new motor vehicle that this transaction is, or is not, subject to a fee received by an autobroker from the selling new motor vehicle dealer, and the name of the autobroker, if applicable.
</html:p>
<html:p>
(y)
<html:span class="EnSpace"/>
Sell or lease a new motor vehicle after October 1, 2012, unless the dealer has a contractual agreement with the department to be a private industry partner pursuant to Section 1685. This subdivision does not apply to the sale or lease of a motorcycle or off-highway motor vehicle subject to identification under Section 38010 or a recreational vehicle as defined in Section 18010 of the Health and Safety Code.
</html:p>
<html:p>
(z)
<html:span class="EnSpace"/>
As used in this section, “make” and “model” have the same meaning
as is provided in Section 565.12 of Title 49 of the Code of Federal Regulations.
</html:p>
<html:p>
(aa)
<html:span class="EnSpace"/>
This section shall remain in effect only until January 1, 2031, and as of that date is repealed.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_AF46BE63-6B95-403F-8340-7573253EC35B">
<ns0:Num>SEC. 4.</ns0:Num>
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Section 11713.1 is added to the
<ns0:DocName>Vehicle Code</ns0:DocName>
, to read:
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<ns0:Fragment>
<ns0:LawSection id="id_F19010F0-7A7B-4BB5-82C8-57497285EE6F">
<ns0:Num>11713.1.</ns0:Num>
<ns0:LawSectionVersion id="id_F3DA268F-AC21-4B7D-AB31-5A111E2038A3">
<ns0:Content>
<html:p>It is a violation of this code for the holder of a dealer’s license issued under this article to do any of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Advertise a specific vehicle for sale without identifying the vehicle by its model, model-year, and either its license number or that portion of the vehicle identification number that distinguishes the vehicle from all other vehicles of the same make, model, and model-year. Model-year is not required to be advertised for current model-year vehicles. Year models are no longer current when ensuing year models are available for purchase at retail in California. An advertisement that offers for sale a class of new vehicles in a dealer’s inventory, consisting of five or more
vehicles, that are all of the same make, model, and model-year is not required to include in the advertisement the vehicle identification numbers or license numbers of those vehicles.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Advertise the total price of a vehicle without including all costs to the purchaser at time of sale, except taxes, vehicle registration fees, the California tire fee, as defined in Section 42885 of the Public Resources Code, emission testing charges not exceeding fifty dollars ($50), actual fees charged for certificates pursuant to Section 44060 of the Health and Safety Code, finance charges, and any dealer document processing charge or charge to electronically register or transfer the vehicle.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Exclude from an advertisement of a vehicle
for sale that there will be added to the advertised total price at the time of sale, charges for sales tax, vehicle registration fees, the California tire fee, the fee charged by the state for the issuance of a certificate of compliance or noncompliance pursuant to a statute, finance charges, a charge to electronically register or transfer the vehicle, and a dealer document processing charge.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The obligations imposed by paragraph (1) are satisfied by adding to the advertisement a statement containing no abbreviations and that is worded in substantially the following form: “Plus government fees and taxes, any finance charges, any dealer document processing charge, any electronic filing charge, and any emission testing charge.”
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
For purposes of
paragraph (1), “advertisement” means an advertisement in a newspaper, magazine, or direct mail publication that is two or more columns in width or one column in width and more than seven inches in length, or on a webpage of a dealer’s internet website that displays the price of a vehicle offered for sale on the Internet, as that term is defined in paragraph (6) of subdivision (f) of Section 17538 of the Business and Professions Code.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Represent the dealer document processing charge, electronic registration or transfer charge, or emission testing charge as a governmental fee.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Fail to sell a vehicle to a person at the advertised total price, exclusive of taxes, vehicle registration fees, the California tire fee, the fee charged by the state for the issuance of a certificate of compliance or noncompliance pursuant to a statute, finance charges, mobilehome escrow fees, the
amount of a city, county, or city and county imposed fee or tax for a mobilehome, a dealer document processing charge, an electronic registration or transfer charge, and a charge for emission testing not to exceed fifty dollars ($50) plus the actual fees charged for certificates pursuant to Section 44060 of the Health and Safety Code, while the vehicle remains unsold, unless the advertisement states the advertised total price is good only for a specified time and the time has elapsed. Advertised vehicles shall be sold at or below the advertised total price, with statutorily permitted exclusions, regardless of whether the purchaser has knowledge of the advertised total price.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Advertise for sale, sell, or purchase for resale a new vehicle of a line-make for which the dealer does not hold a franchise.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
This subdivision does not apply to a transaction involving the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A mobilehome.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A commercial coach as defined in Section 18001.8 of the Health and Safety Code.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
An off-highway motor vehicle subject to identification as defined in Section 38012.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
A manufactured home.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
A new vehicle that will be substantially altered or modified by a converter
prior to resale.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
A commercial vehicle with a gross vehicle weight rating of more than 10,000 pounds.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
A vehicle purchased for export and exported outside the territorial limits of the United States without being registered with the department.
</html:p>
<html:p>
(H)
<html:span class="EnSpace"/>
A vehicle acquired in the ordinary course of business as a new vehicle by a dealer franchised to sell that vehicle, if all of the following apply:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The manufacturer or distributor of the vehicle files a bankruptcy petition.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
The franchise agreement of the dealer is terminated, canceled, or rejected by the manufacturer or distributor as part of the bankruptcy proceedings and the termination, cancellation, or rejection is not a result of the revocation by the department of the dealer’s license or the dealer’s conviction of a crime.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
The vehicle is held in the inventory of the dealer on the date the bankruptcy petition is filed.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
The vehicle is sold by the dealer within six months of the date the bankruptcy petition is filed.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Subparagraph (H) of paragraph (2) does not
entitle a dealer whose franchise agreement has been terminated, canceled, or rejected to continue to perform warranty service repairs or continue to be eligible to offer or receive consumer or dealer incentives offered by the manufacturer or distributor.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
Sell a park trailer, as specified in Section 18009.3 of the Health and Safety Code, without disclosing in writing to the purchaser that a park trailer is required to be moved by a transporter or a licensed manufacturer or dealer under a permit issued by the Department of Transportation or a local authority with respect to highways under their respective jurisdictions.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
Advertise free merchandise, gifts, or services provided by a dealer contingent on the purchase of a vehicle. “Free” includes
merchandise or services offered for sale at a price less than the seller’s cost of the merchandise or services.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Advertise vehicles, and related goods or services, at a specified dealer price, with the intent not to supply reasonably expectable demand, unless the advertisement discloses the number of vehicles in stock at the advertised price. In addition, whether or not there are sufficient vehicles in stock to supply a reasonably expectable demand, if phrases such as “starting at,” “from,” “beginning as low as,” or words of similar import are used in reference to an advertised price, the advertisement shall disclose the number of vehicles available at that advertised price.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For purposes of this subdivision, in a newspaper advertisement for a vehicle that is two model-years old or
newer, the actual phrase that states the number of vehicles in stock at the advertised price shall be printed in a type size that is at least equal to one-quarter of the type size, and in the same style and color of type, used for the advertised price. However, in no case shall the phrase be printed in less than 8-point type size, and the phrase shall be disclosed immediately above, below, or beside the advertised price without intervening words, pictures, marks, or symbols.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The disclosure required by this subdivision is in addition to any other disclosure required by this code or any regulation regarding identifying vehicles advertised for sale.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
Use “rebate” or similar words, including, but not limited to, “cash back,” in advertising the sale
of a vehicle unless the rebate is expressed in a specific dollar amount and is in fact a rebate offered by the vehicle manufacturer or distributor, a finance company affiliated with a vehicle manufacturer or distributor, a regulated utility, or a governmental entity directly to the retail purchaser of the vehicle or to the assignee of the retail purchaser.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Require a person to pay a higher price for a vehicle and related goods or services for receiving advertised credit terms than the cash price the same person would have to pay to purchase the same vehicle and related goods or services.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For the purpose of this subdivision, “cash price” has the same meaning as defined in subdivision (e) of Section 2981 of the Civil Code.
</html:p>
<html:p>
(
<html:i>l</html:i>
)
<html:span class="EnSpace"/>
Advertise a guaranteed trade-in allowance.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
Misrepresent the authority of a salesperson, representative, or agent to negotiate the final terms of a transaction.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Use “invoice,” “dealer’s invoice,” “wholesale price,” or similar terms that refer to a dealer’s cost for a vehicle in an advertisement for the sale of a vehicle or advertise that the selling price of a vehicle is above, below, or at either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The manufacturer’s or distributor’s invoice price to a dealer.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A dealer’s cost.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
This subdivision does not apply to either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A communication occurring during face-to-face negotiations for the purchase of a specific vehicle if the prospective purchaser initiates a discussion of the vehicle’s invoice price or the dealer’s cost for that vehicle.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
A communication between a dealer and a prospective commercial purchaser that is not disseminated to the general public.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
For purposes of this subparagraph, a
“commercial purchaser” means a dealer, lessor, lessor-retailer, manufacturer, remanufacturer, distributor, financial institution, governmental entity, or person who purchases 10 or more vehicles during a year.
</html:p>
<html:p>
(o)
<html:span class="EnSpace"/>
Violate a law prohibiting bait and switch advertising, including, but not limited to, the guides against bait advertising set forth in Part 238 (commencing with Section 238) of Title 16 of the Code of Federal Regulations, as those regulations read on January 1, 1988.
</html:p>
<html:p>
(p)
<html:span class="EnSpace"/>
Make an untrue or misleading statement indicating that a vehicle is equipped with all the factory-installed optional equipment the manufacturer offers, including, but not limited to, a false statement that a vehicle is “fully factory equipped.”
</html:p>
<html:p>
(q)
<html:span class="EnSpace"/>
Except as provided in Section 24014, affix on a new vehicle a supplemental price sticker containing a price that represents the dealer’s asking price that exceeds the manufacturer’s suggested retail price unless all of the following occur:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The supplemental sticker clearly and conspicuously discloses in the largest print appearing on the sticker, other than the print size used for the dealer’s name, that the supplemental sticker price is the dealer’s asking price, or words of similar import, and that it is not the manufacturer’s suggested retail price.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The supplemental sticker clearly and conspicuously discloses the manufacturer’s suggested retail price.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The supplemental sticker lists each item that is not included in the manufacturer’s suggested retail price, and discloses the additional price of each item. If the supplemental sticker price is greater than the sum of the manufacturer’s suggested retail price and the price of the items added by the dealer, the supplemental sticker price shall set forth that difference and describe it as “added mark-up.”
</html:p>
<html:p>
(r)
<html:span class="EnSpace"/>
Advertise an underselling claim, including, but not limited to, “we have the lowest prices” or “we will beat any dealer’s price,” unless the dealer has conducted a recent survey showing that the dealer sells its vehicles at lower prices than another licensee in its trade area and maintains records to adequately substantiate the claims. The substantiating records shall be made available to the department upon
request.
</html:p>
<html:p>
(s)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Advertise an incentive offered by the manufacturer or distributor if the dealer is required to contribute to the cost of the incentive as a condition of participating in the incentive program, unless the dealer discloses in a clear and conspicuous manner that dealer participation may affect consumer cost.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For purposes of this subdivision, “incentive” means anything of value offered to induce people to purchase a vehicle, including, but not limited to, discounts, savings claims, rebates, below-market finance rates, and free merchandise or services.
</html:p>
<html:p>
(t)
<html:span class="EnSpace"/>
Display or offer for sale a
used vehicle unless there is affixed to the vehicle the Federal Trade Commission’s Buyer’s Guide as required by Part 455 of Title 16 of the Code of Federal Regulations.
</html:p>
<html:p>
(u)
<html:span class="EnSpace"/>
Fail to disclose in writing to the franchisor of a new motor vehicle dealer the name of the purchaser, date of sale, and the vehicle identification number of each new motor vehicle sold of the line-make of that franchisor, or intentionally submit to that franchisor a false name for the purchaser or false date for the date of sale.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
Enter into a contract for the retail sale of a motor vehicle unless the contract clearly and conspicuously discloses whether the vehicle is being sold as a new vehicle or a used vehicle, as defined in this code.
</html:p>
<html:p>
(w)
<html:span class="EnSpace"/>
Use a simulated check, as defined in subdivision (a) of Section 22433 of the Business and Professions Code, in an advertisement for the sale or lease of a vehicle.
</html:p>
<html:p>
(x)
<html:span class="EnSpace"/>
Fail to disclose, in a clear and conspicuous manner in at least 10-point boldface type on the face of a contract for the retail sale of a new motor vehicle, that this transaction is, or is not, subject to a fee received by an autobroker from the selling new motor vehicle dealer and the name of the autobroker, if applicable.
</html:p>
<html:p>
(y)
<html:span class="EnSpace"/>
Sell or lease a new motor vehicle after October 1, 2012, unless the dealer has a contractual agreement with the department to be a private industry partner pursuant to Section 1685. This subdivision does not apply to the sale or lease of a motorcycle or
off-highway motor vehicle subject to identification under Section 38010 or a recreational vehicle as defined in Section 18010 of the Health and Safety Code.
</html:p>
<html:p>
(z)
<html:span class="EnSpace"/>
As used in this section, “make” and “model” have the same meaning as is provided in Section 565.12 of Title 49 of the Code of Federal Regulations.
</html:p>
<html:p>
(aa)
<html:span class="EnSpace"/>
This section shall become operative on January 1, 2031.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>
|