BILL NUMBER: AB 1618	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Firebaugh

                        FEBRUARY 21, 2003

   An act to amend Section 11713 of the Vehicle Code, relating to
vehicles.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1618, as introduced, Firebaugh.  Vehicle dealers: sales:  front
license plate bracket.
   Existing law prohibits the holder of certain occupational licenses
issued by the Department of Motor Vehicles from engaging in certain
practices, including, delivering, following the sale of a vehicle, a
vehicle for operation on California highways that does not meet all
of the statutory equipment requirements.
   This bill would also prohibit, the delivery, after January 1,
2005, a motor vehicle, other than motorcycle, that is not equipped
with a front license plate bracket.
   Because the violation of this prohibition would be a crime, this
bill would impose a state-mandated program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 11713 of the Vehicle Code is amended to read:
   11713.  No holder of any license issued under this article shall
do any of the following:
   (a) Make or disseminate, or cause to be made or disseminated,
before the public in this state, in any newspaper or other
publication, or any advertising device, or by public outcry or
proclamation, or in any other manner or means whatever, any statement
which is untrue or misleading and which is known, or which by the
exercise of reasonable care should be known, to be untrue or
misleading; or to so make or disseminate, or cause to be so
disseminated, any statement as part of a plan or scheme with the
intent not to sell any vehicle or service so advertised at the price
stated therein, or as so advertised.
   (b) (1) (A) Advertise or offer for sale or exchange in any manner,
any vehicle not actually for sale at the premises of the dealer or
available to the dealer directly from the manufacturer or distributor
of the vehicle at the time of the advertisement or offer.  However,
a dealer who has been issued an autobroker's endorsement to his or
her dealer's license may advertise his or her service of arranging or
negotiating the purchase of a new motor vehicle from a franchised
new motor vehicle dealer and may specify the line-makes and models of
those new vehicles.  Autobrokering service advertisements may not
advertise the price or payment terms of any vehicle and shall
disclose that the advertiser is an autobroker or auto buying service,
and shall clearly and conspicuously state the following:  "All new
cars arranged for sale are subject to price and availability from the
selling franchised new car dealer."
   (B) As to printed advertisements, the disclosure statement
required by subparagraph (A) shall be printed in not less than
10-point bold type size and shall be textually segregated from the
other portions of the printed advertisement.
   (2) Notwithstanding subparagraph (A), classified advertisements
for autobrokering services that measure two column inches or less are
exempt from the disclosure statement in subparagraph (A) pertaining
to price and availability.
   (3) Radio advertisements of a duration of less than 11 seconds
that do not reference specific line-makes or models of motor vehicles
are exempt from the disclosure statement required in subparagraph
(A).
   (c) Fail, within 48 hours, in writing to withdraw any
advertisement of a vehicle that has been sold or withdrawn from sale.

   (d) Advertise or represent a vehicle as a new vehicle if the
vehicle is a used vehicle.
   (e) Engage in the business for which the licensee is licensed
without having in force and effect a bond as required by this
article.
   (f) Engage in the business for which the dealer is licensed
without at all times maintaining an established place of business as
required by this code.
   (g) Include, as an added cost to the selling price of a vehicle,
an amount for licensing or transfer of title of the vehicle, which is
not due to the state unless, prior to the sale, that amount has been
paid by a dealer to the state in order to avoid penalties that would
have accrued because of late payment of the fees.  However, a dealer
may collect from the second purchaser of a vehicle a prorated fee
based upon the number of months remaining in the registration year
for that vehicle, if the vehicle had been previously sold by the
dealer and the sale was subsequently rescinded and all the fees that
were paid, as required by this code and Chapter 2 (commencing with
Section 10751) of Division 2 of the Revenue and Taxation Code, were
returned to the first purchaser of the vehicle.
   (h) Employ any person as a salesperson who has not been licensed
pursuant to Article 2 (commencing with Section 11800), and whose
license is not displayed on the premises of the dealer as required by
Section 11812, or willfully fail to notify the department by mail
within 10 days of the employment or termination of employment of a
salesperson.
   (i) Deliver, following the sale, a vehicle for operation on
California highways, if the vehicle does not meet all of the
equipment requirements of Division 12 (commencing with Section 24000)
 , and deliver, after January 1, 2005, a motor vehicle, other
than a motorcycle, that is not equipped with a front license plate
bracket  .  This subdivision does not apply to the sale of a
leased vehicle to the lessee if the lessee is in possession of the
vehicle immediately prior to the time of the sale and the vehicle is
registered in this state.
   (j) Use, or permit the use of, the special plates assigned to him
or her for any purpose other than as permitted by Section 11715.
   (k) Advertise or otherwise represent, or knowingly allow to be
advertised or represented on behalf of, or at the place of business
of, the licenseholder that no downpayment is required in connection
with the sale of a vehicle when a downpayment is in fact required and
the buyer is advised or induced to finance the downpayment by a loan
in addition to any other loan financing the remainder of the
purchase price of the vehicle.
   (l) Participate in the sale of a vehicle required to be reported
to the Department of Motor Vehicles under Section 5900 or 5901
without making the return and payment of the full sales tax due and
required by Section 6451 of the Revenue and Taxation Code.
   (m) Permit the use of the dealer's license, supplies, or books by
any other person for the purpose of permitting that person to engage
in the purchase or sale of vehicles required to be registered under
this code, or permit the use of the dealer's license, supplies, or
books to operate a branch location to be used by any other person,
whether or not the licensee has any financial or equitable interest
or investment in the vehicles purchased or sold by, or the business
of, or branch location used by, the other person.
   (n) Violate any provision of Article 10 (commencing with Section
28050) of Chapter 5 of Division 12.
   (o) Sell a previously unregistered vehicle without disclosing in
writing to the purchaser the date on which any manufacturer's or
distributor's warranty commenced.
   (p) Accept a purchase deposit relative to the sale of a vehicle,
unless the vehicle is present at the premises of the dealer or
available to the dealer directly from the manufacturer or distributor
of the vehicle at the time the dealer accepts the deposit.  Purchase
deposits accepted by an autobroker when brokering a retail sale
shall be governed by Sections 11736 and 11737.
   (q) Consign for sale to another dealer a new vehicle.
   (r) Display a vehicle for sale at a location other than an
established place of business authorized by the department for that
dealer or display a new motor vehicle at the business premises of
another dealer registered as an autobroker.  This subdivision does
not apply to the display of a vehicle pursuant to subdivision (b) of
Section 11709 or the demonstration of the qualities of a motor
vehicle by way of a test drive.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.