Individual legislator voting records for this vote are not currently available. Includes all politicians who were in office at any point during the 2011-2012 Legislature.

SB 956 - An Act to Add Chapter 1b (Commencing with Section 18500) to Division 8 of the Business and Professions Code, to Amend Section 22054 of the Financial Code, and to Add Sections 241 and 241.1 to the Vehicle Code, Relating to Automobile Sellers and Lenders.

Buy-here-pay-here automobile sellers and lenders. 2011-2012 Legislature. View bill details
Author(s):
Summary:
(1)Existing law prohibits a person from acting as a dealer in vehicles, as specified, without a license issued by the Department of Motor Vehicles. Existing law governs conditional sale contracts, as defined, for the purchase of motor vehicles, including the enforceability of those contracts. Existing law also governs lease contracts, as defined, for the lease of motor vehicles, including the… More
(1)Existing law prohibits a person from acting as a dealer in vehicles, as specified, without a license issued by the Department of Motor Vehicles. Existing law governs conditional sale contracts, as defined, for the purchase of motor vehicles, including the enforceability of those contracts. Existing law also governs lease contracts, as defined, for the lease of motor vehicles, including the enforceability of those contracts. Existing law, the California Finance Lenders Law, the violation of which is a crime, provides for the licensure and regulation of finance lenders by the Commissioner of Corporations, but exempts from its provisions a bona fide conditional contract of sale involving the disposition of personal property when that form of agreement is not used for the purpose of evading provisions of that law.

This bill would enact the Buy-Here-Pay-Here Automobile Dealers Act. The bill would define a “buy-here-pay-here” dealer as a dealer, as defined, who enters into conditional sale contracts, as defined, or lease contracts, as defined, and assigns less than 90% of all unrescinded contracts to an unaffiliated 3rd-party finance or leasing source, within 45 days of the consummation of those contracts. The bill would exclude from this definition automobile sellers who meet specified requirements. This bill would require those dealers to obtain a finance lender license and subject them to specified other provisions of the California Finance Lenders Law. The bill would also define a “buyer-borrower” as a person who enters into a conditional sale contract or lease contract with a buy-here-pay-here automobile dealer. The bill would provide that the Department of Corporations would have regulatory jurisdiction over the lending and repossessing activities of buy-here-pay-here automobile dealers, as specified.

This bill would govern the terms and conditions of contracts entered into by a buy-here-pay-here automobile dealer and the rights of the parties, including, but not limited to, requiring a notice to a buyer-borrower of specified rights under the contract.

(2)Existing law, the Collateral Recovery Act, provides for the licensure and regulation of repossession agencies, as defined, and their employees by the Bureau of Security and Investigative Services within the Department of Consumer Affairs.

This bill would impose additional requirements on a buy-here-pay-here automobile dealer seeking to repossess a vehicle, including, but not limited to, prohibiting a dealer from commencing repossession proceedings due to failure to make a scheduled loan payment prior to the 16th day following the day on which that payment was due, requiring a dealer to hire a licensed repossession agency to repossess the vehicle on the dealer’s behalf, and prohibiting the dealer from charging the buyer-borrower a fee exceeding $500 for the dealer’s costs in connection with the repossession. The bill would also establish a cap on interest rates that could be charged under a conditional sale or lease contract and require a buy-here-pay-here automobile dealer to allow a buyer-borrower 45 days to repay any penalties, fees, and other charges imposed by the dealer on the buyer-borrower in connection with past due payments that have been brought current.

(3)The bill would state findings and declarations of the Legislature with regard to buy-here-pay-here automobile dealers.

(4)Because this bill would expand the scope of a crime, the bill would create a state-mandated local 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. Hide
 
Status:
This bill was passed by both houses and vetoed by the Governor. It did not become law
Senate Vote: On Passage

PASSED on August 30, 2012.

voted YES: 23 voted NO: 14
3 voted present/not voting

An Act to Add Chapter 1b (Commencing with Section 18500) to Division 8 of the Business and Professions Code, to Amend Section 22054 of the Financial Code, and to Add Sections 241 and 241.1 to the Vehicle Code, Relating to Automobile Sellers and Lenders.

SB 956 — 2011-2012 Legislature

Summary
(1)Existing law prohibits a person from acting as a dealer in vehicles, as specified, without a license issued by the Department of Motor Vehicles. Existing law governs conditional sale contracts, as defined, for the purchase of motor vehicles, including the enforceability of those contracts. Existing law also governs lease contracts, as defined, for the lease of motor vehicles, including the enforceability of those contracts. Existing law, the California Finance Lenders Law, the violation of which is a crime, provides for the licensure and regulation of finance lenders by the Commissioner of Corporations, but exempts from its provisions a bona fide conditional contract of sale involving the disposition of personal property when that form of agreement is not used for the purpose of evading provisions of that law.

This bill would enact the Buy-Here-Pay-Here Automobile Dealers Act. The bill would define a “buy-here-pay-here” dealer as a dealer, as defined, who enters into conditional sale contracts, as defined, or lease contracts, as defined, and assigns less than 90% of all unrescinded contracts to an unaffiliated 3rd-party finance or leasing source, within 45… More
(1)Existing law prohibits a person from acting as a dealer in vehicles, as specified, without a license issued by the Department of Motor Vehicles. Existing law governs conditional sale contracts, as defined, for the purchase of motor vehicles, including the enforceability of those contracts. Existing law also governs lease contracts, as defined, for the lease of motor vehicles, including the enforceability of those contracts. Existing law, the California Finance Lenders Law, the violation of which is a crime, provides for the licensure and regulation of finance lenders by the Commissioner of Corporations, but exempts from its provisions a bona fide conditional contract of sale involving the disposition of personal property when that form of agreement is not used for the purpose of evading provisions of that law.

This bill would enact the Buy-Here-Pay-Here Automobile Dealers Act. The bill would define a “buy-here-pay-here” dealer as a dealer, as defined, who enters into conditional sale contracts, as defined, or lease contracts, as defined, and assigns less than 90% of all unrescinded contracts to an unaffiliated 3rd-party finance or leasing source, within 45 days of the consummation of those contracts. The bill would exclude from this definition automobile sellers who meet specified requirements. This bill would require those dealers to obtain a finance lender license and subject them to specified other provisions of the California Finance Lenders Law. The bill would also define a “buyer-borrower” as a person who enters into a conditional sale contract or lease contract with a buy-here-pay-here automobile dealer. The bill would provide that the Department of Corporations would have regulatory jurisdiction over the lending and repossessing activities of buy-here-pay-here automobile dealers, as specified.

This bill would govern the terms and conditions of contracts entered into by a buy-here-pay-here automobile dealer and the rights of the parties, including, but not limited to, requiring a notice to a buyer-borrower of specified rights under the contract.

(2)Existing law, the Collateral Recovery Act, provides for the licensure and regulation of repossession agencies, as defined, and their employees by the Bureau of Security and Investigative Services within the Department of Consumer Affairs.

This bill would impose additional requirements on a buy-here-pay-here automobile dealer seeking to repossess a vehicle, including, but not limited to, prohibiting a dealer from commencing repossession proceedings due to failure to make a scheduled loan payment prior to the 16th day following the day on which that payment was due, requiring a dealer to hire a licensed repossession agency to repossess the vehicle on the dealer’s behalf, and prohibiting the dealer from charging the buyer-borrower a fee exceeding $500 for the dealer’s costs in connection with the repossession. The bill would also establish a cap on interest rates that could be charged under a conditional sale or lease contract and require a buy-here-pay-here automobile dealer to allow a buyer-borrower 45 days to repay any penalties, fees, and other charges imposed by the dealer on the buyer-borrower in connection with past due payments that have been brought current.

(3)The bill would state findings and declarations of the Legislature with regard to buy-here-pay-here automobile dealers.

(4)Because this bill would expand the scope of a crime, the bill would create a state-mandated local 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. Hide
Learn More
At LegInfo.ca.gov
Title
An Act to Add Chapter 1b (Commencing with Section 18500) to Division 8 of the Business and Professions Code, to Amend Section 22054 of the Financial Code, and to Add Sections 241 and 241.1 to the Vehicle Code, Relating to Automobile Sellers and Lenders.
Author(s)
Ted Lieu
Co-Authors
Subjects
  • Buy-here-pay-here automobile sellers and lenders
Major Actions
Introduced1/09/2012
Referred to Committee
Passed Senate Committee on Banking, Finance and Insurance4/18/2012
Passed Senate Committee on Judiciary4/24/2012
Passed Senate Committee on Appropriations5/14/2012
Passed Senate Committee on Appropriations5/24/2012
Passed Senate5/31/2012
Passed Assembly Committee on Banking and Finance6/25/2012
Passed Assembly Committee on Judiciary7/03/2012
Passed Assembly Committee on Appropriations8/16/2012
Passed Assembly8/28/2012
Passed Senate8/30/2012
Presented to the governor (enrolled)9/10/2012
Vetoed by Governor9/29/2012
Vetoed by Governor9/29/2012
Bill History
Chamber/CommitteeMotionDateResult
select this voteSenate Committee on Banking, Finance and InsuranceDo pass, but re-refer to the Committee on Judiciary.4/18/2012This motion PASSED the Senate Committee on Banking, Finance and Insurance
5 voted YES 2 voted NO 0 voted present/not voting
select this voteSenate Committee on JudiciaryDo pass as amended, and re-refer to the Committee on Appropriations.4/24/2012This motion PASSED the Senate Committee on Judiciary
3 voted YES 2 voted NO 0 voted present/not voting
select this voteSenate Committee on AppropriationsPlaced on Appropriations Suspense file.5/14/2012This motion PASSED the Senate Committee on Appropriations
7 voted YES 0 voted NO 0 voted present/not voting
select this voteSenate Committee on AppropriationsDo pass.5/24/2012This motion PASSED the Senate Committee on Appropriations
5 voted YES 2 voted NO 0 voted present/not voting
select this voteSenateSenate 3rd Reading SB956 Lieu5/31/2012This bill PASSED the Senate
24 voted YES 12 voted NO 4 voted present/not voting
select this voteAssembly Committee on Banking and FinanceDo pass and be re-referred to the Committee on Judiciary.6/25/2012This motion PASSED the Assembly Committee on Banking and Finance
7 voted YES 2 voted NO 3 voted present/not voting
select this voteAssembly Committee on JudiciaryDo pass as amended and be re-referred to the Committee on Appropriations.7/03/2012This motion PASSED the Assembly Committee on Judiciary
7 voted YES 3 voted NO 0 voted present/not voting
select this voteAssembly Committee on AppropriationsDo pass as amended.8/16/2012This motion PASSED the Assembly Committee on Appropriations
12 voted YES 5 voted NO 0 voted present/not voting
select this voteAssemblySB 956 Lieu Senate Third Reading By FEUER8/28/2012This bill PASSED the Assembly
52 voted YES 26 voted NO 2 voted present/not voting
currently selectedSenateUnfinished Business SB956 Lieu Concurrence8/30/2012This bill PASSED the Senate
23 voted YES 14 voted NO 3 voted present/not voting
ActionDateDescription
Introduced1/09/2012
1/09/2012Introduced. Read first time. To Com. on RLS. for assignment. To print.
1/10/2012From printer. May be acted upon on or after February 9.
2/02/2012Referred to Coms. on B. & F.I. and JUD.
3/09/2012Set for hearing April 11.
3/26/2012From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I.
4/04/2012Hearing postponed by committee.
4/05/2012Set for hearing April 18.
4/09/2012From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I.
4/18/2012From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 2. Page 3204.) (April 18). Re-referred to Com. on JUD.
select this voteVote4/18/2012Do pass, but re-refer to the Committee on Judiciary.
4/20/2012Set for hearing April 24.
select this voteVote4/24/2012Do pass as amended, and re-refer to the Committee on Appropriations.
4/30/2012From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 3. Noes 2. Page 3309.) (April 24).
5/01/2012Read second time and amended. Re-referred to Com. on APPR.
5/04/2012Set for hearing May 14.
5/14/2012Placed on APPR. suspense file.
select this voteVote5/14/2012Placed on Appropriations Suspense file.
5/18/2012Set for hearing May 24.
5/21/2012From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.
select this voteVote5/24/2012Do pass.
5/24/2012From committee: Do pass. (Ayes 5. Noes 2. Page 3588.) (May 24).
5/25/2012Read second time. Ordered to third reading.
5/31/2012Read third time. Passed. (Ayes 24. Noes 12. Page 3737.) Ordered to the Assembly.
5/31/2012In Assembly. Read first time. Held at Desk.
select this voteSenate Vote on Passage5/31/2012Senate 3rd Reading SB956 Lieu
6/14/2012Referred to Coms. on B. & F. and JUD.
6/19/2012From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.
select this voteVote6/25/2012Do pass and be re-referred to the Committee on Judiciary.
6/26/2012From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 2.) (June 25). Re-referred to Com. on JUD.
select this voteVote7/03/2012Do pass as amended and be re-referred to the Committee on Appropriations.
7/05/2012From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 3.) (July 3).
8/06/2012Read second time and amended. Re-referred to Com. on APPR. Joint Rule 62(a) file notice suspended. (Page 5751.)
8/08/2012Set, first hearing. Referred to APPR. suspense file.
8/16/2012From committee: Do pass as amended. (Ayes 12. Noes 5.) (August 16).
select this voteVote8/16/2012Do pass as amended.
8/20/2012Read second time and amended. Ordered to second reading.
8/21/2012Read second time. Ordered to third reading.
8/24/2012Read third time and amended. (Page 6252.) Ordered to third reading.
8/28/2012Read third time. Passed. (Ayes 52. Noes 26. Page 6452.) Ordered to the Senate.
8/28/2012In Senate. Concurrence in Assembly amendments pending.
select this voteAssembly Vote on Passage8/28/2012SB 956 Lieu Senate Third Reading By FEUER
8/30/2012Assembly amendments concurred in. (Ayes 23. Noes 14. Page 5010.) Ordered to engrossing and enrolling.
currently selectedSenate Vote on Passage8/30/2012Unfinished Business SB956 Lieu Concurrence
9/10/2012Enrolled and presented to the Governor at 9:45 a.m.
Vetoed9/29/2012Vetoed by the Governor.
9/29/2012In Senate. Consideration of Governor's veto pending.

Total contributions given to Senators from interest groups that…

4.4 times as much
$707,723
$0
$0
$88,900
$2,250
$798,873
$181,002
$181,002

opposed this bill

9 Organizations Supported and 6 Opposed; See Which Ones

Organizations that took a position on
An Act to Add Chapter 1b (Commencing with Section 18500) to Division 8 of the Business and Professions Code, to Amend Section 22054 of the Financial Code, and to Add Sections 241 and 241.1 to the Vehicle Code, Relating to Automobile Sellers and Lenders.: Unfinished Business SB956 Lieu Concurrence

9 organizations supported this bill

American Federation of State, County and Municipal Employees
Senate Committee on Banking and Financial Institutions (2012, April 16). Senate Committee Analysis. Retrieved May 31, 2012, from Leginfo: Bill Analysis.
California Immigrant Policy Center
Senate Committee on Banking and Financial Institutions (2012, April 16). Senate Committee Analysis. Retrieved May 31, 2012, from Leginfo: Bill Analysis.
Center for Responsible Lending
Senate Committee on Banking and Financial Institutions (2012, April 16). Senate Committee Analysis. Retrieved May 31, 2012, from Leginfo: Bill Analysis.
Consumer Attorneys of California
Senate Committee on Banking and Financial Institutions (2012, April 16). Senate Committee Analysis. Retrieved May 31, 2012, from Leginfo: Bill Analysis.
Consumer Federation of California
Senate Committee on Banking and Financial Institutions (2012, April 16). Senate Committee Analysis. Retrieved May 31, 2012, from Leginfo: Bill Analysis.
Consumers for Auto Reliability and Safety
Senate Committee on Banking and Financial Institutions (2012, April 16). Senate Committee Analysis. Retrieved May 31, 2012, from Leginfo: Bill Analysis.
El Segundo Chamber of Commerce
Senate Committee on Banking and Financial Institutions (2012, April 16). Senate Committee Analysis. Retrieved May 31, 2012, from Leginfo: Bill Analysis.
Silicon Valley Community Foundation
Senate Committee on Banking and Financial Institutions (2012, April 16). Senate Committee Analysis. Retrieved May 31, 2012, from Leginfo: Bill Analysis.
Torrance Area Chamber of Commerce
Senate Committee on Banking and Financial Institutions (2012, April 16). Senate Committee Analysis. Retrieved May 31, 2012, from Leginfo: Bill Analysis.

6 organizations opposed this bill

D&h Motors, Riverside, Ca
Senate Committee on Banking and Financial Institutions (2012, April 16). Senate Committee Analysis. Retrieved May 31, 2012, from Leginfo: Bill Analysis.
Highway Motors, Chico, Ca
Senate Committee on Banking and Financial Institutions (2012, April 16). Senate Committee Analysis. Retrieved May 31, 2012, from Leginfo: Bill Analysis.
Independent Automobile Dealers Association of California
Senate Committee on Banking and Financial Institutions (2012, April 16). Senate Committee Analysis. Retrieved May 31, 2012, from Leginfo: Bill Analysis.
National Alliance Of Buy Here Pay Here Dealers
Senate Committee on Banking and Financial Institutions (2012, April 16). Senate Committee Analysis. Retrieved May 31, 2012, from Leginfo: Bill Analysis.
National Independent Automobile Dealers Association
Senate Committee on Banking and Financial Institutions (2012, April 16). Senate Committee Analysis. Retrieved May 31, 2012, from Leginfo: Bill Analysis.
Warranty Motors, Ukiah, Ca
Senate Committee on Banking and Financial Institutions (2012, April 16). Senate Committee Analysis. Retrieved May 31, 2012, from Leginfo: Bill Analysis.

Need proof?

View citations of support and opposition

Includes reported contributions to campaigns of Senators in office on day of vote, from interest groups invested in the vote according to MapLight, January 1, 2009 – December 31, 2012.
Contributions data source: FollowTheMoney.org

Contributions by Legislator

Namesort iconPartyDistrict$ From Interest Groups
That Supported
$ From Interest Groups
That Opposed
Vote
Elaine AlquistDCA-13$750$0
Joel AndersonRCA-36$18,125$7,250
Tom BerryhillRCA-14$9,800$5,000
Sam BlakesleeRCA-15$0$0
Ron CalderonDCA-30$13,300$2,000
Anthony CannellaRCA-12$7,900$4,400
Ellen CorbettDCA-10$14,700$1,000
Lou CorreaDCA-34$28,300$5,500
Kevin De LeonDCA-22$42,499$4,500
Mark DeSaulnierDCA-7$22,380$6,000
Bob DuttonRCA-31$7,750$0
Bill EmmersonRCA-37$5,550$6,500
Noreen EvansDCA-2$20,720$7,800
Jean FullerRCA-18$1,000$5,500
Ted GainesRCA-1$3,000$6,500
Loni HancockDCA-9$57,200$4,500
Tom HarmanRCA-35$8,000$5,100
Ed HernandezDCA-24$26,749$8,400
Bob HuffRCA-29$16,600$8,800
Christine KehoeDCA-39$5,300$0
Doug La MalfaRCA-4$2,000$5,600
Mark LenoDCA-3$32,250$6,100
Ted LieuDCA-28$53,950$4,750
Carol LiuDCA-21$7,400$4,300
Alan LowenthalDCA-27$0$0
Gloria Negrete McLeodDCA-32$8,900$5,800
Alex PadillaDCA-20$16,700$3,800
Fran PavleyDCA-23$72,500$0
Curren PriceDCA-26$16,000$1,300
Michael RubioDCA-16$24,400$9,900
Sharon RunnerRCA-17$0$2,000
Joe SimitianDCA-11$5,500$0
Darrell SteinbergDCA-6$100,600$2,000
Tony StricklandRCA-19$9,000$6,602
Juan VargasDCA-40$57,200$6,500
Mimi WaltersRCA-33$2,000$12,000
Lois WolkDCA-5$14,550$5,500
Rod WrightDCA-25$22,300$6,600
Mark WylandRCA-38$1,000$5,500
Leland YeeDCA-8$43,000$4,000

Add Data Filters:

Legislator Filters
Legislator Filters
Show All
NamePartyDistrict$ From Interest Groups
That Supported
$ From Interest Groups
That Opposed
Vote
Elaine AlquistDCA-13$750$0
Joel AndersonRCA-36$18,125$7,250
Tom BerryhillRCA-14$9,800$5,000
Sam BlakesleeRCA-15$0$0
Ron CalderonDCA-30$13,300$2,000
Anthony CannellaRCA-12$7,900$4,400
Ellen CorbettDCA-10$14,700$1,000
Lou CorreaDCA-34$28,300$5,500
Kevin De LeonDCA-22$42,499$4,500
Mark DeSaulnierDCA-7$22,380$6,000
Bob DuttonRCA-31$7,750$0
Bill EmmersonRCA-37$5,550$6,500
Noreen EvansDCA-2$20,720$7,800
Jean FullerRCA-18$1,000$5,500
Ted GainesRCA-1$3,000$6,500
Loni HancockDCA-9$57,200$4,500
Tom HarmanRCA-35$8,000$5,100
Ed HernandezDCA-24$26,749$8,400
Bob HuffRCA-29$16,600$8,800
Christine KehoeDCA-39$5,300$0
Doug La MalfaRCA-4$2,000$5,600
Mark LenoDCA-3$32,250$6,100
Ted LieuDCA-28$53,950$4,750
Carol LiuDCA-21$7,400$4,300
Alan LowenthalDCA-27$0$0
Gloria Negrete McLeodDCA-32$8,900$5,800
Alex PadillaDCA-20$16,700$3,800
Fran PavleyDCA-23$72,500$0
Curren PriceDCA-26$16,000$1,300
Michael RubioDCA-16$24,400$9,900
Sharon RunnerRCA-17$0$2,000
Joe SimitianDCA-11$5,500$0
Darrell SteinbergDCA-6$100,600$2,000
Tony StricklandRCA-19$9,000$6,602
Juan VargasDCA-40$57,200$6,500
Mimi WaltersRCA-33$2,000$12,000
Lois WolkDCA-5$14,550$5,500
Rod WrightDCA-25$22,300$6,600
Mark WylandRCA-38$1,000$5,500
Leland YeeDCA-8$43,000$4,000

Interest Groups that supported this bill

$ Donated
State & local government employee unions$707,723
Chambers of commerce$88,900
Nonprofit foundations$2,250
Human rights$0
Consumer groups$0

Interest Groups that opposed this bill

$ Donated
Auto dealers, new & used$181,002
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