AB 1743, as amended, Dababneh. Electronic transactions: motor vehicle finance.
Existing law, the Uniform Electronic Transactions Act (UETA), generally allows parties to contract to conduct transactions by electronic means, imposes specified requirements on electronic transactions in order to comply with the act, and provides specified protections for electronic transactions conducted pursuant to the act. Existing law defines and regulates the form and content of conditional sale contracts and lease contracts for motor vehicles and excepts these contracts from the application of the UETA.
This bill would delete the exemption from the UETA for conditional sale and lease contracts for motor vehicles. The bill would require sellers and lessors to offer buyers and lessees the option of signing their respective contracts and agreements electronically. The bill would require certain disclosures to be made in this regard and to be in a document separate from a conditional sale contract or lease contract. The bill would prohibit a seller or lessor from charging a buyer or lessee for a decision not to sign electronically and would prohibit charging more or less for vehicles based on the decision to sign electronically. The bill would require that the disclosures described here be signed at the seller’s or lessor’s place of business.
This bill wouldbegin delete provide, in the event of a discrepancy between an electronic contract in the possession of the seller and an executed contract in possession of the buyer, as specified, that there is no presumption regarding which is accurate or prevailing.end deletebegin insert require an exact copy of the executed contract to be furnished to the buyer or provided to the lessee at the time the contract is electronically
signed, as specified.end insert
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1633.3 of the Civil Code, as amended
2by Section 1.5 of Chapter 638 of the Statutes of 2015, is amended
3to read:
(a) Except as otherwise provided in subdivisions (b)
5and (c), this title applies to electronic records and electronic
6signatures relating to a transaction.
7(b) This title does not apply to transactions subject to the
8following laws:
9(1) A law governing the creation and execution of wills, codicils,
10or testamentary trusts.
11(2) Division 1 (commencing with Section 1101) of the Uniform
12Commercial Code, except Sections 1206 and 1306.
13(3) Divisions 3 (commencing with Section 3101), 4
14(commencing with Section
4101), 5 (commencing with Section
155101), 8 (commencing with Section 8101), 9 (commencing with
16Section 9101), and 11 (commencing with Section 11101) of the
17Uniform Commercial Code.
18(4) A law that requires that specifically identifiable text or
19disclosures in a record or a portion of a record be separately signed,
20including initialed, from the record. However, this paragraph does
21not apply to Section 1677 or 1678 of this code or Section 1298 of
22the Code of Civil Procedure.
P3 1(c) This title does not apply to any specific transaction described
2in Section 17511.5 of the Business and Professions Code, Section
356.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6, 1689.7,
4or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
5Title 5 of Part 2 of Division 3 of, Section 1720,
1785.15, 1789.14,
61789.16, or 1793.23 of, Chapter 1 (commencing with Section
71801) of Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
81917.712, 1917.713, 1950.6, 1983, 2924b, 2924c, 2924f, 2924i,
92924j, 2924.3, or 2937 of, Article 1.5 (commencing with Section
102945) of Chapter 2 of Title 14 of Part 4 of Division 3 of, Section
112954.5 or 2963 of, Section 3071.5 of, Part 5 (commencing with
12Section 4000) of Division 4 of, or Part 5.3 (commencing with
13Section 6500) of Division 4 of this code, subdivision (b) of Section
1418608 or Section 22328 of the Financial Code, Section 1358.15,
151365, 1368.01, 1368.1, 1371, or 18035.5 of the Health and Safety
16Code, Section 662, paragraph (2) of subdivision (a) of Section
17663, 664, 667.5, 673, 677, paragraph (2) of subdivision (a) of
18Section 678, subdivisions (a) and (b) of Section 678.1, Section
19786 as it applies to individual and group disability policies,
Section
2010192.18, 10199.44, 10199.46, 10235.16, 10235.40, 11624.09, or
2111624.1 of the Insurance Code, Section 779.1, 10010.1, or 16482
22of the Public Utilities Code, or Section 9975 or 11738 of the
23Vehicle Code. An electronic record may not be substituted for any
24notice that is required to be sent pursuant to Section 1162 of the
25Code of Civil Procedure. Nothing in this subdivision shall be
26construed to prohibit the recordation of any document with a county
27recorder by electronic means.
28(d) This title applies to an electronic record or electronic
29signature otherwise excluded from the application of this title under
30subdivision (b) when used for a transaction subject to a law other
31than those specified in subdivision (b).
32(e) A transaction subject to this title is also subject to
other
33applicable substantive law.
34(f) The exclusion of a transaction from the application of this
35title under subdivision (b) or (c) shall be construed only to exclude
36the transaction from the application of this title, but shall not be
37construed to prohibit the transaction from being conducted by
38electronic means if the transaction may be conducted by electronic
39means under any other applicable law.
P4 1(g) Notwithstanding subdivisions (b) and (c), this title shall
2apply to electronic records and electronic signatures relating to
3transactions conducted by a person licensed, certified, or registered
4pursuant to the Alarm Company Act (Chapter 11.6 (commencing
5with Section 7590) of Division 3 of the Business and Professions
6Code) for purposes of activities authorized by Section
7599.54 of
7the Business and Professions Code.
8(h) This section shall remain in effect only until January 1, 2019,
9and as of that date is repealed, unless a later enacted statute, that
10is enacted before January 1, 2019, deletes or extends that date.
Section 1633.3 of the Civil Code, as amended by
12Section 2.5 of Chapter 638 of the Statutes of 2015, is amended to
13read:
(a) Except as otherwise provided in subdivisions (b)
15and (c), this title applies to electronic records and electronic
16signatures relating to a transaction.
17(b) This title does not apply to transactions subject to the
18following laws:
19(1) A law governing the creation and execution of wills, codicils,
20or testamentary trusts.
21(2) Division 1 (commencing with Section 1101) of the Uniform
22Commercial Code, except Sections 1206 and 1306.
23(3) Divisions 3 (commencing with Section 3101), 4
24(commencing with
Section 4101), 5 (commencing with Section
255101), 8 (commencing with Section 8101), 9 (commencing with
26Section 9101), and 11 (commencing with Section 11101) of the
27Uniform Commercial Code.
28(4) A law that requires that specifically identifiable text or
29disclosures in a record or a portion of a record be separately signed,
30including initialed, from the record. However, this paragraph does
31not apply to Section 1677 or 1678 of this code or Section 1298 of
32the Code of Civil Procedure.
33(c) This title does not apply to any specific transaction described
34in Section 17511.5 of the Business and Professions Code, Section
3556.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6, 1689.7,
36or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
37Title 5 of Part 2 of Division 3 of, Section
1720, 1785.15, 1789.14,
381789.16, or 1793.23 of, Chapter 1 (commencing with Section
391801) of Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
401917.712, 1917.713, 1950.6, 1983, 2924b, 2924c, 2924f, 2924i,
P5 12924j, 2924.3, or 2937 of, Article 1.5 (commencing with Section
22945) of Chapter 2 of Title 14 of Part 4 of Division 3 of, Section
32954.5 or 2963 of, Section 3071.5 of Part 5 (commencing with
4Section 4000) of Division 4 of, or Part 5.3 (commencing with
5Section 6500) of Division 4 of this code, subdivision (b) of Section
618608 or Section 22328 of the Financial Code, Section 1358.15,
71365, 1368.01, 1368.1, 1371, or 18035.5 of the Health and Safety
8Code, Section 662, 663, 664, 667.5, 673, 677, 678, 678.1, 786 as
9it applies to individual and group disability policies, 10192.18,
1010199.44, 10199.46, 10235.16, 10235.40, 11624.09, or 11624.1
11of the Insurance Code, Section 779.1, 10010.1, or
16482 of the
12Public Utilities Code, or Section 9975 or 11738 of the Vehicle
13Code. An electronic record may not be substituted for any notice
14that is required to be sent pursuant to Section 1162 of the Code of
15Civil Procedure. Nothing in this subdivision shall be construed to
16prohibit the recordation of any document with a county recorder
17by electronic means.
18(d) This title applies to an electronic record or electronic
19signature otherwise excluded from the application of this title under
20subdivision (b) when used for a transaction subject to a law other
21than those specified in subdivision (b).
22(e) A transaction subject to this title is also subject to other
23applicable substantive law.
24(f) The exclusion of a transaction
from the application of this
25title under subdivision (b) or (c) shall be construed only to exclude
26the transaction from the application of this title, but shall not be
27construed to prohibit the transaction from being conducted by
28electronic means if the transaction may be conducted by electronic
29means under any other applicable law.
30(g) Notwithstanding subdivisions (b) and (c), this title shall
31apply to electronic records and electronic signatures relating to
32transactions conducted by a person licensed, certified, or registered
33pursuant to the Alarm Company Act (Chapter 11.6 (commencing
34with Section 7590) of Division 3 of the Business and Professions
35Code) for purposes of activities authorized by Section 7599.54 of
36the Business and Professions Code.
37(h) This section shall become operative on January 1, 2019.
38(i) This section shall remain in effect only until January 1, 2021,
39and as of that date is repealed, unless a later enacted statute, that
40is enacted before January 1, 2021, deletes or extends that date.
Section 1633.3 of the Civil Code, as added by Section
23.5 of Chapter 638 of the Statutes of 2015, is amended to read:
(a) Except as otherwise provided in subdivisions (b)
4and (c), this title applies to electronic records and electronic
5signatures relating to a transaction.
6(b) This title does not apply to transactions subject to the
7following laws:
8(1) A law governing the creation and execution of wills, codicils,
9or testamentary trusts.
10(2) Division 1 (commencing with Section 1101) of the Uniform
11Commercial Code, except Sections 1206 and 1306.
12(3) Divisions 3 (commencing with Section 3101), 4
13(commencing with
Section 4101), 5 (commencing with Section
145101), 8 (commencing with Section 8101), 9 (commencing with
15Section 9101), and 11 (commencing with Section 11101) of the
16Uniform Commercial Code.
17(4) A law that requires that specifically identifiable text or
18disclosures in a record or a portion of a record be separately signed,
19including initialed, from the record. However, this paragraph does
20not apply to Section 1677 or 1678 of this code or Section 1298 of
21the Code of Civil Procedure.
22(c) This title does not apply to any specific transaction described
23in Section 17511.5 of the Business and Professions Code, Section
2456.11, 56.17, 798.14, 1133, or 1134 of, Section 1689.6, 1689.7,
25or 1689.13 of, Chapter 2.5 (commencing with Section 1695) of
26Title 5 of Part 2 of Division 3 of, Section
1720, 1785.15, 1789.14,
271789.16, or 1793.23 of, Chapter 1 (commencing with Section
281801) of Title 2 of Part 4 of Division 3 of, Section 1861.24, 1862.5,
291917.712, 1917.713, 1950.6, 1983, 2924b, 2924c, 2924f, 2924i,
302924j, 2924.3, or 2937 of, Article 1.5 (commencing with Section
312945) of Chapter 2 of Title 14 of Part 4 of Division 3 of, Section
322954.5 or 2963 of, Section 3071.5 of Part 5 (commencing with
33Section 4000) of Division 4 of, or Part 5.3 (commencing with
34Section 6500) of Division 4 of this code, subdivision (b) of Section
3518608 or Section 22328 of the Financial Code, Section 1358.15,
361365, 1368.01, 1368.1, 1371, or 18035.5 of the Health and Safety
37Code, Section 662, 663, 664, 667.5, 673, 677, 678, 678.1, 786,
3810086, 10113.7, 10127.7, 10127.9, 10127.10, 10192.18, 10199.44,
3910199.46, 10235.16, 10235.40, 10509.4, 10509.7, 11624.09, or
4011624.1 of the Insurance Code, Section 779.1, 10010.1, or
16482
P7 1of the Public Utilities Code, or Section 9975 or 11738 of the
2Vehicle Code. An electronic record may not be substituted for any
3notice that is required to be sent pursuant to Section 1162 of the
4Code of Civil Procedure. Nothing in this subdivision shall be
5construed to prohibit the recordation of any document with a county
6recorder by electronic means.
7(d) This title applies to an electronic record or electronic
8signature otherwise excluded from the application of this title under
9subdivision (b) when used for a transaction subject to a law other
10than those specified in subdivision (b).
11(e) A transaction subject to this title is also subject to other
12applicable substantive law.
13(f) The exclusion of a
transaction from the application of this
14title under subdivision (b) or (c) shall be construed only to exclude
15the transaction from the application of this title, but shall not be
16construed to prohibit the transaction from being conducted by
17electronic means if the transaction may be conducted by electronic
18means under any other applicable law.
19(g) Notwithstanding subdivisions (b) and (c), this title shall
20apply to electronic records and electronic signatures relating to
21transactions conducted by a person licensed, certified, or registered
22pursuant to the Alarm Company Act (Chapter 11.6 (commencing
23with Section 7590) of Division 3 of the Business and Professions
24Code) for purposes of activities authorized by Section 7599.54 of
25the Business and Professions Code.
26(h) This section shall become operative on January 1, 2021.
Section 2984.7 is added to the Civil Code, to read:
(a) (1) Prior to the execution of a conditional sale
29contract to which Section 1633.3 may apply, the seller shall offer
30the buyer the option of signing electronically the conditional sale
31contract and agreements as part of the transaction of the vehicle.
32A person’s consent to opt in to signing electronically may be
33acquired in writing or electronically. The consent form for opting
34in shall disclose, in writing or electronically, all of the following:
35(A) The election to sign electronically the conditional sale
36contract and other agreements as part of the transaction of the
37vehicle is voluntary.
38(B) The buyer may opt out at any time.
39(2) The buyer’s signature, in writing or electronically, shall be
40set forth immediately below the opt-in consent disclosure.
P8 1(b) (1) The seller shall not charge a buyer for the decision not
2to sign a conditional sale contract electronically.
3(2) The seller shall not charge more or less for the purchase of
4a vehicle to a buyer opting to sign a conditional sale contract
5electronically.
6(c) Notwithstanding Section 2981.9, the disclosure of the option
7to sign electronically and the buyer’s consent to it, if applicable,
8as described in subdivision (a), shall be in a document separate
9from the
conditional sale contract.
10(d) In the event of a discrepancy between an electronic copy of
11the executed contract in the possession of the seller and a copy of
12the executed contract provided to the buyer pursuant to Section
132981.9, there shall be no presumption that either the seller’s copy
14or the buyer’s copy is the accurate or prevailing copy for purposes
15of determining the buyer’s obligations. Any provision in a contract
16that purports to provide otherwise is void.
17
(d) An exact copy of the contract executed pursuant to Section
181633.3 shall be furnished to the
buyer by the seller at the time that
19the buyer and the seller have electronically signed it as proscribed
20by Section 2981.9.
Section 2984.8 is added to the Civil Code, to read:
A conditional sale contract to which Section 1633.3
23applies shall be signed at the seller’s place of business.
Section 2986 is added to the Civil Code, to read:
(a) (1) Prior to the execution of a lease contract to which
26Section 1633.3 may apply, the lessor shall offer the lessee the
27option of signing electronically the lease contract and agreements
28as part of the transaction of the vehicle. A person’s consent to opt
29in to signing electronically may be acquired in writing or
30electronically. The consent form for opting in shall disclose, in
31writing or electronically, all of the following:
32(A) The election to sign electronically the lease contract and
33other agreements as part of the transaction of the vehicle is
34voluntary.
35(B) The lessee may opt out at any time.
36(2) The lessee’s signature, in writing or electronically, shall be
37set forth immediately below the opt-in consent disclosure.
38(b) (1) The lessor shall not charge a lessee for the decision not
39to sign a lease contract electronically.
P9 1(2) The lessor shall not charge more or less for the lease of a
2vehicle to a lessee opting to sign a lease contract electronically.
3(c) Notwithstanding Section 2985.8, the disclosure of the option
4to sign electronically and the lessee’s consent to it, if applicable,
5as described in subdivision (a), shall be in a document separate
6from the lease contract.
7(d) In the event of a discrepancy between an electronic copy of
8the executed contract in the possession of the lessor and a copy of
9the executed contract provided to the lessee pursuant to subdivision
10(g) of Section 2985.8, there shall be no presumption that either the
11lessor’s copy or the lessee’s copy is the accurate or prevailing copy
12for purposes of determining the lessee’s obligations. Any provision
13in a contract that purports to provide otherwise is void.
14
(d) An exact copy of the lease contract executed pursuant to
15Section 1633.3 shall be provided to the lessee at the time of the
16electronic signing as proscribed by Section 2985.8.
Section 2986.1 is added to the Civil Code, to read:
A lease contract to which Section 1633.3 applies shall
19be signed at the lessor’s place of business.
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