SEC. 17. Section 11713.26 is added to the Vehicle Code, to read:
11713.26. (a) A dealer shall not display or offer for sale at
retail a used vehicle, as defined in Section 665 and subject to
registration under this code, unless the dealer first obtains a
NMVTIS vehicle history report from a NMVTIS data provider for the
vehicle identification number of the vehicle.
(b) If a NMVTIS vehicle history report for a used vehicle
indicates that the vehicle is or has been a junk automobile or a
salvage automobile or the vehicle has been reported as a junk
automobile or a salvage automobile by a junk yard, salvage yard, or
insurance carrier pursuant to Section 30504 of Title 49 of the United
States Code, or the certificate of title contains a brand, a dealer
shall do both of the following:
(1) Post the following disclosure on the vehicle while it is
displayed for sale at retail in at least 14-point bold black type,
except for the title “Warning” which shall be in at least 18-point
bold black type, on at least a 4 x 5.5 inch red background in close
proximity to the Federal Trade Commission’s Buyer’s Guide:


“WARNING

According to a vehicle history report issued by the National Motor
Vehicle Title Information System (NMVTIS), this vehicle has been
reported as a total-loss vehicle by an insurance company, has been
reported into NMVTIS by a junk or salvage reporting entity, or has a
title brand which may materially affect the value, safety, and/or
condition of the vehicle. Because of its history as a junk, salvage,
or title-branded vehicle, the manufacturer’s warranty or service
contract on this vehicle may be affected. Ask the dealer to see a
copy of the NMVTIS vehicle history report. You may independently
obtain the report by checking NMVTIS online at
www.vehiclehistory.gov.”

(2) Provide the retail purchaser with a copy of the NMVTIS vehicle
history report upon request prior to sale.
(c) Subdivisions (a) and (b) do not apply to a used vehicle for
which NMVTIS does not have a record if the dealer attempts to obtain
a NMVTIS vehicle history report for the vehicle.
(d) As used in this section the following terms have the following
meanings:
(1) “NMVTIS” means the National Motor Vehicle Title Information
System established pursuant to Section 30501 et seq. of Title 49 of
the United States Code.
(2) “NMVTIS vehicle history report” means a report obtained by an
NMVTIS data provider that contains:
(A) The date of the report.
(B) Any disclaimer required by the operator of NMVTIS.
(C) If available from NMVTIS, information establishing the
following:
(i) Whether the vehicle is titled in a particular state.
(ii) Whether the title to the vehicle was branded by a state.
(iii) The validity and status of a document purporting to be a
certificate of title for the vehicle.
(iv) Whether the vehicle is or has been a junk automobile or a
salvage automobile.
(v) The odometer mileage disclosure required pursuant to Section
32705 of Title 49 of the United States Code for that vehicle on the
date the certificate of title for that vehicle was issued and any
later mileage information.
(vi) Whether the vehicle has been reported as a junk automobile or
a salvage automobile pursuant to Section 30504 of Title 49 of the
United States Code.
(3) “Junk automobile,” “operator,” and “salvage automobile” shall
have the same meanings as defined in Section 25.52 of Title 28 of the
Code of Federal Regulations.
(4) “NMVTIS data provider” means a person authorized by the NMVTIS
operator as an access portal provider for NMVTIS.
(5) “NMVTIS operator” means the individual or entity authorized or
designated as the operator of NMVTIS pursuant to subdivision (b) of
Section 30502 of Title 49 of the United States Code, or the office
designated by the United States Attorney General, if there is no
authorized or designated individual or entity.
(e) Nothing in this section shall prohibit a NMVTIS data provider
from including, in a NMVTIS vehicle history report containing the
information required by paragraph (2) of subdivision (d), additional
vehicle history information obtained from resources other than
NMVTIS.
(f) This section shall not create any legal duty upon the dealer
related to the accuracy, errors, or omissions contained in a NMVTIS
vehicle history report that is obtained from a NMVTIS data provider
or any legal duty to provide information added to NMVTIS after the
dealer obtained the NMVTIS vehicle history report pursuant to
subdivision (a).
(g) (1) In the event that all NMVTIS data providers cease to make
NMVTIS vehicle history reports available to the public, this section
shall become inoperative.
(2) In the event that all NMVTIS data providers cease to make
NMVTIS vehicle history reports available to the public, it is the
intent of the Legislature that the United States Department of
Justice notify the Legislature and the department.
(h) This section does not apply to the sale of a recreational
vehicle, a motorcycle, or an off-highway motor vehicle subject to
identification under Section 38010.
(i) This section shall become operative on July 1, 2012.
SEC. 18. 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.