(SACRAMENTO, CA) Governor Jerry Brown signed legislation authored by State Assemblymember Bob Blumenfield (D-San Fernando Valley) that will provide Californians with an unprecedented consumer protection against unknowingly buying an unsafe, stolen or junk car. The bill also requires new car dealers to register cars electronically, making the process up to 600% faster and saving the state millions of dollars.
"Buying a car comes second only to the commitment that comes with buying a home," said Blumenfield. "With working families striving to stretch their dollars in this tough economy, there couldn't be a better time to help ensure that family cars are a good and safe investment. By signing this law, the governor can protect consumers and save the state nearly the same sum as the budget cuts causing 70 state parks to close next year."
Assembly Bill (AB) 1215 implements a first in the nation requirement that all new and used car dealers post a red sticker on the used cars they sell that are flagged in a federally mandated database – the National Motor Vehicle Title Information System (NMVTIS) – as a "junk," "salvage," or "flood" branded vehicle. A sample sticker is attached. NMVTIS is maintained by the U.S. Department of Justice and is the only vehicle database to which 100 percent of the nation's insurers, junk and salvage yards, and state motor vehicle departments are required to report updated title information every 30 days.
"Consumer advocates have long sought the protections offered in this bill," said Rosemary Shahan, President of Consumers for Auto Reliability and Safety. "For the first time, auto dealers will be required to provide vital information about a vehicle's safety, reliability, and worth before consumers even start negotiating. In California, millions of the most hazardous cars will be marked with a red sticker to warn consumers that they merit close scrutiny or should be avoided."
AB 1215 also requires new car dealers to use electronic vehicle registration for all car sales starting next July, saving the state over $9 million a year by reducing administrative costs at the Department of Motor Vehicles. The bill specifies that these staffing efficiencies should be transferred to reduce lines at DMV field offices. Furthermore, AB 1215 caps dealer document charges at the second lowest in the nation.
"No other state can match the built-in protections and convenience awaiting Californians," said Peter Welch, President of the California New Car Dealers Association. "Like every small business, dealers want to focus on customers instead of paperwork. This bill offers much needed relief and a better product, bringing Californians their new license plates in about a month instead of up to six months."
California is the nation's largest car market. Last year, over 800,000 used cars were sold through new car dealerships.
AB 1215 passed the State Assembly 67-4 and the State Senate 30-4. Additional information is available at http://www.leginfo.ca.gov.
Contact: Anthony Matthews, tel. (916) 319-2040
