Existing law imposes specified requirements on manufacturers and dealers of motor vehicles and motorcycles sold or leased in this state. Existing law prohibits a dealer from selling, offering for sale, or displaying, any new, assembled motorcycle on its premises, unless there is securely attached to the handlebars of the motorcycle a label, approved by the Department of Motor Vehicles, furnished by the manufacturer of the motorcycle. Under existing law, that label is required to clearly indicate specified information, including the recommended retail price of the motorcycle and the recommended price for each accessory or item of optional equipment physically attached to the motorcycle at the time of its delivery to the dealer. A violation of these provisions is a crime.

This bill would require that label to be in the form of a hang tag, and to include the manufacturers suggested retail price, as defined, for that motorcycle, and the vehicle identification number of that motorcycle. The bill would prohibit a dealer from affixing a supplemental price label containing a price that represents the dealers asking price that exceeds the manufacturers suggested retail price unless the label complies with specified requirements and disclosures. The bill would make additional conforming changes. Because a violation of these requirements would be a crime, the bill would impose 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.

Existing law imposes specified requirements on manufacturers and dealers of motor vehicles and motorcycles sold or leased in this state. Existing law prohibits a dealer from selling, offering for sale, or displaying, any new, assembled motorcycle on its premises, unless there is securely attached to the handlebars of the motorcycle a label, approved by the Department of Motor Vehicles, furnished by the manufacturer of the motorcycle. Under existing law, that label is required to clearly indicate specified information, including the recommended retail price of the motorcycle and the recommended price for each accessory or item of optional equipment physically attached to the motorcycle at the time of its delivery to the dealer. A violation of these provisions is a crime.

This bill would require that label to be in the form of a hang tag, and to include the manufacturers suggested retail price, as defined, for that motorcycle, and the vehicle identification number of that motorcycle. The bill would prohibit a dealer from affixing a supplemental price label containing a price that represents the dealers asking price that exceeds the manufacturers suggested retail price unless the label complies with specified requirements and disclosures. The bill would make additional conforming changes. Because a violation of these requirements would be a crime, the bill would impose 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.

Existing law imposes specified requirements on manufacturers and dealers of motor vehicles and motorcycles sold or leased in this state. Existing law prohibits a dealer from selling, offering for sale, or displaying, any new, assembled motorcycle on its premises, unless there is securely attached to the handlebars of the motorcycle a label, approved by the Department of Motor Vehicles, furnished by the manufacturer of the motorcycle. Under existing law, that label is required to clearly indicate specified information, including the recommended retail price of the motorcycle and the recommended price for each accessory or item of optional equipment physically attached to the motorcycle at the time of its delivery to the dealer. A violation of these provisions is a crime.

This bill would require that label to be in the form of a hang tag, and to include the manufacturers suggested retail price, as defined, for that motorcycle, and the vehicle identification number of that motorcycle. The bill would prohibit a dealer from affixing a supplemental price label containing a price that represents the dealers asking price that exceeds the manufacturers suggested retail price unless the label complies with specified requirements and disclosures. The bill would make additional conforming changes. Because a violation of these requirements would be a crime, the bill would impose 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.

 THIRD READING  

Bill No: AB 2227

Author:

:

Vote:

SENATE JUDICIARY COMMITTEE: 7-0, 6/12/18

AYES: Jackson, Moorlach, Anderson, Hertzberg, Monning, Stern, Wieckowski

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 54-13, 4/23/18 - See last page for vote

SUBJECT:

SOURCE: California Motorcycle Dealers Association

DIGEST:

This bill updates the requirements for the pricing label that is required to be placed on any new, assembled motorcycle. Manufacturers are required to place the manufacturer’s suggested retail price (MSRP) and the vehicle identification number (VIN) of the motorcycle. The dealer is required to place a supplemental price label meeting certain requirements and including specified information on each motorcycle if the dealer’s price exceeds the MSRP.

ANALYSIS:

Existing law:

1. Provides that no person shall act as a dealer, remanufacturer, manufacturer, or transporter, or as a manufacturer branch, remanufacturer branch, distributor, or distributor branch, without having first been issued a license as required. (Veh. Code Sec. 11700.)
2. Prohibits a dealer from selling, offering for sale, or displaying, any new, assembled motorcycle on its premises, unless there is securely attached to its handlebar a label, approved by the Department of Motor Vehicles (DMV), furnished by the manufacturer, on which the manufacturer shall clearly indicate the recommended retail price of the motorcycle; and the recommended price for each accessory or item of optional equipment physically attached to the motorcycle at the time of its delivery to the dealer. (Veh. Code Sec. 24014(a).)
3. Provides that the dealer shall clearly indicate on the label, furnished by the manufacturer, the following:

• The amount charged, if any, over and above the suggested retail price for transportation to the dealership;
• The amount charged, if any, for the assembly, preparation, or both, of the motorcycle;
• The amount charged, if any, for each dealer added accessory or item of optional equipment; and
• The total recommended retail price of the vehicle which shall be the aggregate value of all five of the above elements. (Veh. Code Sec. 24014(b).)

1. Provides that it is unlawful and a violation of the Vehicle Code for a licensed dealer issued a license, as specified, to sell, offer for sale, or display a new motorcycle unless there is securely attached thereto a statement as required by Section 24014. (Veh. Code Sec. 11712.5.)
2. Prohibits a series of acts for holders of a dealer’s license, including making untrue or misleading statements about the features of a vehicle or advertising a vehicle for sale without properly identifying it. In addition, it is a violation of the Vehicle Code for the holder of a dealer’s license to affix on a new vehicle a supplemental price sticker containing a price that represents the dealer’s asking price that exceeds the MSRP unless all of the following occur:

• The supplemental sticker clearly and conspicuously discloses in the largest print appearing on the sticker, other than the print size used for the dealer’s name, that the supplemental sticker price is the dealer’s asking price, or words of similar import, and that it is not the MSRP;
• The supplemental sticker clearly and conspicuously discloses the MSRP; and
• The supplemental sticker lists each item that is not included in the MSRP, and discloses the additional price of each item. If the supplemental sticker price is greater than the sum of the MSRP and the price of the items added by the dealer, the supplemental sticker price shall set forth that difference and describe it as “added mark-up.” (Veh. Code Sec. 11713.1.)

1. Requires every manufacturer of new automobiles to securely affix to the windshield, or side window of such automobile a label on which such manufacturer shall disclose specified information concerning such automobile. (15 U.S.C. Sec. 1232.)

This bill:

1. Provides that a dealer shall not sell, offer for sale, or display, any new, assembled motorcycle on its premises, unless there is securely attached to its handlebar a label, in the form of a hang tag, approved by the DMV and furnished by the manufacturer, on which the manufacturer shall clearly indicate, in addition to the information currently required, the MSRP for the motorcycle, which is the sum of the recommended retail price of the motorcycle and the recommended price for any optional equipment; and the VIN.
2. Prohibits a dealer from affixing to a new motorcycle a supplemental price label containing a price that represents the dealer’s asking price that exceeds the MSRP unless the label is in compliance with all of the following:

• The supplemental price label, in lieu of the supplemental sticker provided for in subdivision (q) of Section 11713.1, is securely attached to the handlebar of the motorcycle in a way that does not prevent access to the manufacturer’s hang tag and clearly and conspicuously discloses in the largest print appearing on the label, other than the print size used for the dealer’s name, that the supplemental label price is the dealer’s asking price, or words of similar import, and that it is not the MSRP;
• The supplemental label clearly and conspicuously discloses the MSRP;
• The supplemental label lists each item for which the dealer imposes a charge that is not included in the MSRP, and discloses the additional price of each item, including, but not limited to, the amount charged by the dealer for assembly, preparation, or both, and the amount charged by the dealer for transportation to the dealership. Charges disclosed shall be net of reimbursement received by the dealer from the manufacturer; and
• If the supplemental label price is greater than the sum of the MSRP and the price of the items disclosed above, the supplemental label shall set forth that difference and describe it as “added mark-up.”

Background

In 1958, the United States Congress passed the Disclosure of Automobile Information Act (Act). (15 U.S.C. Sec. 1231 et seq.) The purpose was to address deceptive practices in the misbranding, pricing, and sale of automobiles. The Act required new cars to be labeled with details about the standard and optional features of the vehicle; the suggested price of those features and the suggested retail price of the automobile, and the combination of the two, which comprises the MSRP, well-known as the MSRP; and other information relevant to consumers. Before that point, consumers had access to little information about what was included in the cost of an automobile. The Act serves to increase transparency in automobile sales, protect consumers from deceptive advertising and sales practices, and to foster an open market that allows for the free flow of information. The sticker, required to be placed on all new cars, is referred to as the Monroney sticker.

In 1974, California enacted an analogous version of the Monroney sticker for motorcycles. The law, created by AB 3645 (Thurman, Chapter 1089, Statutes of 1974) and later modified by SB 2169 (Dills, Chapter 623, Statutes of 1978), prohibits dealers from selling a new motorcycle unless it has attached a label provided by the manufacturer and approved by the DMV. The manufacturer is required to indicate the recommended retail price of the motorcycle and the recommended price for each optional feature attached to the motorcycle. The dealer is then required to clearly indicate, on that same label, information regarding any amount charged over the MSRP, including details on the prices charged for any additional items or services.

However, many dealers have expressed confusion with how to indicate certain costs on these labels and comply with the law. This bill modifies the requirements of the label, now referred to as a “hang tag” in this bill. The manufacturer shall explicitly indicate the MSRP and the VIN. The dealer shall include a host of information if it charges a price over the MSRP.

Comments

The author states, “AB 2227 updates a process, similar to the federal process for new car sales, by which motorcycle manufacturers and dealers provide more robust information on the motorcycle hangtag price. The bill ensures that the price tag on motorcycles is clear to the consumer by including the manufacturer’s suggested price, VIN number, and the supplemental add-ons a dealer may include.”

Updating Price Disclosures to Enhance Consumer Protections

The Legislature has long considered consumer protection to be a matter of high importance. State law is replete with statutes aimed at protecting California consumers from unfair, dishonest, or harmful market practices. For example, the Consumers Legal Remedies Act was enacted “to protect the statute’s beneficiaries from deceptive and unfair business practices,” and to provide aggrieved consumers with “strong remedial provisions for violations of the statute.” (Am. Online, Inc. v. Superior Court (2001) 90 Cal.App.4th 1, 11.) Similarly, for over 70 years, California’s Unfair Practices Act (Bus. & Prof. Code Sec. 17000 et seq.) has protected California consumers from “unlawful, unfair or fraudulent business act[s] or practice[s].” (Bus. & Prof. Code Sec. 17200.)

Consumer protection in the field of vehicle sales and advertising is no less a matter of fundamental public policy. The Legislature has enacted a series of laws designed to protect consumers from unfair and misleading vehicle transactions, including the Song-Beverly Consumer Warranty Act (Civ. Code Sec. 1790 et seq.); California’s Lemon Law (Civ. Code Secs. 1793.2, 1793.22) and Lemon-Law Buyback Law (Civ. Code Sec. 1793.23); the Anti-Lemon Laundering Law (Civ. Code Sec. 1793.24); the Rees-Levering Motor Vehicle Sales and Finance Act (Civ. Code Sec. 2981 et seq.); and the Vehicle Leasing Act (Civ. Code Sec. 2985.7 et seq.). Existing provisions in the Vehicle Code regulating how licensed vehicle dealers, manufacturers, and distributors can advertise motorcycles, automobiles, and other vehicles also help ensure that California’s consumers are fully informed of the terms of transactions.

This bill updates the provisions of the Vehicle Code governing price disclosures in connection with the sale of new motorcycles. Existing law requires pricing labels to be supplied by the manufacturer with specified information. (Veh. Code Sec. 24014.) The dealer is then required to clearly indicate additional information.

This bill amends Vehicle Code Section 24014 to require the manufacturer to provide pricing labels, or “hang tags,” that clearly indicate information for the specific motorcycle it is associated with. It adds the MSRP for the motorcycle and the VIN as information required to be included on the hang tag by the manufacturer.

This bill also prohibits a dealer from affixing to a new motorcycle a supplemental price label containing a price that represents the dealer’s asking price that exceeds the MSRP unless the label is in compliance with all of the following:

• The supplemental price label, in lieu of the supplemental sticker provided for in subdivision (q) of Section 11713.1, is securely attached to the handlebar of the motorcycle in a way that does not prevent access to the manufacturer’s hang tag and clearly and conspicuously discloses in the largest print appearing on the label, other than the print size used for the dealer’s name, that the supplemental label price is the dealer’s asking price, or words of similar import, and that it is not the MSRP;
• The supplemental label clearly and conspicuously discloses the MSRP;
• The supplemental label lists each item for which the dealer imposes a charge that is not included in the MSRP, and discloses the additional price of each item, including, but not limited to, the amount charged by the dealer for assembly, preparation, or both, and the amount charged by the dealer for transportation to the dealership. Charges disclosed shall be net of reimbursement received by the dealer from the manufacturer; and,
• If the supplemental label price is greater than the sum of the MSRP and the price of the items disclosed above, the supplemental label shall set forth that difference and describe it as “added mark-up.”

This new hang tag provides more detailed information for consumers looking to make sense of the listed price for a new motorcycle.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 7/3/18)

California Motorcycle Dealers Association (source)

A&S Motorcycles

Bert’s Mega Mall

California Harley-Davidson

Contra Costa Powersports

Harley-Davidson of Glendale

HB Scooters

Honda of Glendale

PCP Motorsports

Temecula Motorsports

Tracy Motorsports

OPPOSITION: (Verified 7/3/18)

Motorcycle Industry Council

Pestotnik LLP

ARGUMENTS IN SUPPORT: The California Motorcycle Dealers Association, the sponsor of this bill, writes that “uniformity of hang tag practices among the motorcycle manufacturers has continued to prove elusive,” and it indicates that it has “recently seen conflicting interpretations of the manner in which hang tag laws are expected to coexist with other important consumer protection laws.” It states that this bill will “finally mandate more clarity for this significant consumer protection issue that is also of extreme importance to this state’s motorcycle dealers.”

ARGUMENTS IN OPPOSITION: The Motorcycle Industry Council (MIC), which represents manufacturers and distributors of motorcycles, writes in opposition to this bill. Specifically, MIC is opposed to the inclusion of the VIN on a motorcycle’s hang tag. It argues this requirement: “(1) will not improve price transparency; (2) is unduly burdensome on a number of [manufacturers and distributors] who would be required to change current efficient hang tag distribution systems; and (3) a motorcycle’s VIN is already easily accessible to consumers.” It should be noted that an automobile’s VIN is required on the Monroney sticker. Including this number could help ensure the information on a hang tag is properly connected to the motorcycle it corresponds to.

ASSEMBLY FLOOR: 54-13, 4/23/18

AYES: Aguiar-Curry, Arambula, Berman, Bigelow, Bloom, Bonta, Burke, Caballero, Calderon, Carrillo, Chau, Chiu, Chu, Cooley, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gipson, Gloria, Gonzalez Fletcher, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Lackey, Levine, Limón, Low, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Weber, Wood, Rendon

NOES: Acosta, Travis Allen, Baker, Brough, Chávez, Choi, Cunningham, Harper, Kiley, Mayes, Melendez, Voepel, Waldron

NO VOTE RECORDED: Cervantes, Chen, Cooper, Dahle, Gallagher, Cristina Garcia, Eduardo Garcia, Gray, Mathis, Patterson, Quirk

Prepared by:

7/3/18 15:23:10

**** END ****

SENATE JUDICIARY COMMITTEE

Senator Hannah-Beth Jackson, Chair

2017-2018 Regular Session

Bill No: AB 2227 (Author:Friedman)

Version: February 13, 2018

Hearing Date: June 12, 2018

Fiscal: Yes

Urgency: No

Consultant: CK

SUBJECT

Motorcycles: hang tags

DESCRIPTION

This bill would update the requirements for the pricing label that is required to be placed on any new, assembled motorcycle. Manufacturers would be required to place the manufacturer’s suggested retail price (MSRP) and the vehicle identification number of the motorcycle. The dealer would be required to place a supplemental price label meeting certain requirements and including specified information on each motorcycle if the dealer’s price exceeds the MSRP.

BACKGROUND

In 1958, the United States Congress passed the Disclosure of Automobile Information Act (the Act). (15 U.S.C. Sec. 1231 et seq.) The purpose was to address deceptive practices in the misbranding, pricing, and sale of automobiles. The Act required new cars to be labeled with details about the standard and optional features of the vehicle; the suggested price of those features and the suggested retail price of the automobile, and the combination of the two, which comprises the manufacturer’s suggested retail price, well-known as the MSRP; and other information relevant to consumers. Before that point, consumers had access to little information about what was included in the cost of an automobile. The Act serves to increase transparency in automobile sales, protect consumers from deceptive advertising and sales practices, and to foster an open market that allows for the free flow of information. The sticker, required to be placed on all new cars, is referred to as the Monroney sticker.

In 1974, California enacted an analogous version of the Monroney sticker for motorcycles. The law, created by AB 3645 (Thurman, Ch. 1089, Stats. 1974) and later modified by SB 2169 (Dills, Ch. 623, Stats. 1978), prohibits dealers from selling a new motorcycle unless it has attached a label provided by the manufacturer and approved by the Department of Motor Vehicles. The manufacturer is required to indicate the recommended retail price of the motorcycle and the recommended price for each optional feature attached to the motorcycle. The dealer is then required to clearly indicate, on that same label, information regarding any amount charged over the MSRP, including details on the prices charged for any additional items or services.

However, many dealers have expressed their confusion with how to indicate certain costs on these labels and remain in compliance with the law. This bill would modify the requirements of the label, now referred to as a “hang tag” in the bill. The manufacturer would have to explicitly indicate the MSRP and the vehicle identification number. The dealer would have to include a host of information if it charges a price over the MSRP.

CHANGES TO EXISTING LAW

Existing law provides that no person shall act as a dealer, remanufacturer, manufacturer, or transporter, or as a manufacturer branch, remanufacturer branch, distributor, or distributor branch, without having first been issued a license as required. (Veh. Code Sec. 11700.)

Existing law prohibits a dealer from selling, offering for sale, or displaying, any new, assembled motorcycle on its premises, unless there is securely attached to its handlebar a label, approved by the Department of Motor Vehicles, furnished by the manufacturer, on which the manufacturer shall clearly indicate the following:

• the recommended retail price of the motorcycle; and
• the recommended price for each accessory or item of optional equipment physically attached to the motorcycle at the time of its delivery to the dealer. (Veh. Code Sec. 24014(a).)

Existing law provides that the dealer shall clearly indicate on the label, furnished by the manufacturer, the following:

• the amount charged, if any, over and above the suggested retail price for transportation to the dealership;
• the amount charged, if any, for the assembly, preparation, or both, of the motorcycle;
• the amount charged, if any, for each dealer added accessory or item of optional equipment; and
• the total recommended retail price of the vehicle which shall be the aggregate value of all five of the above elements. (Veh. Code Sec. 24014(b).)

Existing law provides that it is unlawful and a violation of the Vehicle Code for a licensed dealer issued a license, as specified, to sell, offer for sale, or display a new motorcycle unless there is securely attached thereto a statement as required by Section 24014. (Veh. Code Sec. 11712.5.)

Existing law prohibits a series of acts for holders of a dealer’s license, including making untrue or misleading statements about the features of a vehicle or advertising a vehicle for sale without properly identifying it. In addition, it is a violation of the Vehicle code for the holder of a dealer’s license to affix on a new vehicle a supplemental price sticker containing a price that represents the dealer’s asking price that exceeds the manufacturer’s suggested retail price unless all of the following occur:

• the supplemental sticker clearly and conspicuously discloses in the largest print appearing on the sticker, other than the print size used for the dealer’s name, that the supplemental sticker price is the dealer’s asking price, or words of similar import, and that it is not the manufacturer’s suggested retail price;
• the supplemental sticker clearly and conspicuously discloses the manufacturer’s suggested retail price (MSRP); and
• the supplemental sticker lists each item that is not included in the manufacturer’s suggested retail price, and discloses the additional price of each item. If the supplemental sticker price is greater than the sum of the MSRP and the price of the items added by the dealer, the supplemental sticker price shall set forth that difference and describe it as “added mark-up.” (Veh. Code Sec. 11713.1.)

Existing law requires every manufacturer of new automobiles to securely affix to the windshield, or side window of such automobile a label on which such manufacturer shall disclose specified information concerning such automobile, including:

• the make, model, and serial or identification number;
• the manufacturer’s suggested retail price (MSRP);
• the retail delivered price suggested by the manufacturer for each accessory or item of optional equipment, physically attached to such automobile at the time of its delivery to such dealer, which is not included within the price of such automobile; and
• the amount charged, if any, to such dealer for the transportation of such automobile to the location at which it is delivered to such dealer. (15 U.S.C. Sec. 1232.)

This bill would provide that a dealer shall not sell, offer for sale, or display, any new, assembled motorcycle on its premises, unless there is securely attached to its handlebar a label, in the form of a hang tag, approved by the Department of Motor Vehicles and furnished by the manufacturer, on which the manufacturer shall clearly indicate, in addition to the information currently required, the following for that specific motorcycle:

• the MSRP for the motorcycle, which is the sum of the recommended retail price of the motorcycle and the recommended price for any optional equipment; and
• the vehicle identification number.

This bill would also prohibit a dealer from affixing to a new motorcycle a supplemental price label containing a price that represents the dealer’s asking price that exceeds the MSRP unless the label is in compliance with all of the following:

• the supplemental price label, in lieu of the supplemental sticker provided for in subdivision (q) of Section 11713.1, is securely attached to the handlebar of the motorcycle in a way that does not prevent access to the manufacturer’s hang tag and clearly and conspicuously discloses in the largest print appearing on the label, other than the print size used for the dealer’s name, that the supplemental label price is the dealer’s asking price, or words of similar import, and that it is not the MSRP;
• the supplemental label clearly and conspicuously discloses the MSRP;
• the supplemental label lists each item for which the dealer imposes a charge that is not included in the MSRP, and discloses the additional price of each item, including, but not limited to, the amount charged by the dealer for assembly, preparation, or both, and the amount charged by the dealer for transportation to the dealership. Charges disclosed shall be net of reimbursement received by the dealer from the manufacturer; and
• if the supplemental label price is greater than the sum of the manufacturer’s suggested retail price and the price of the items disclosed above, the supplemental label shall set forth that difference and describe it as “added mark-up.”

COMMENT

1. Stated need for the bill

According to the author:

AB 2227 updates a process, similar to the federal process for new car sales, by which motorcycle manufacturers and dealers provide more robust information on the motorcycle hangtag price. The bill ensures that the price tag on motorcycles is clear to the consumer by including the manufacturer’s suggested price, VIN number, and the supplemental add-ons a dealer may include.

2. Updating price disclosures to enhance consumer protections

The Legislature has long considered consumer protection to be a matter of high importance. State law is replete with statutes aimed at protecting California consumers from unfair, dishonest, or harmful market practices. For example, the Consumers Legal Remedies Act was enacted “to protect the statute’s beneficiaries from deceptive and unfair business practices,” and to provide aggrieved consumers with “strong remedial provisions for violations of the statute.” (Am. Online, Inc. v. Superior Court (2001) 90 Cal.App.4th 1, 11.) Similarly, for over 70 years, California’s Unfair Practices Act (Bus. & Prof. Code Sec. 17000 et seq.) has protected California consumers from “unlawful, unfair or fraudulent business act[s] or practice[s].” (Bus. & Prof. Code Sec. 17200.)

Consumer protection in the field of vehicle sales and advertising is no less a matter of fundamental public policy. The Legislature has enacted a series of laws designed to protect consumers from unfair and misleading vehicle transactions, including the Song-Beverly Consumer Warranty Act (Civ. Code Sec. 1790 et seq.); California’s Lemon Law (Civ. Code Secs. 1793.2, 1793.22) and Lemon-Law Buyback Law (Civ. Code Sec. 1793.23); the Anti-Lemon Laundering Law (Civ. Code Sec. 1793.24); the Rees-Levering Motor Vehicle Sales and Finance Act (Civ. Code Sec. 2981 et seq.); and the Vehicle Leasing Act (Civ. Code Sec. 2985.7 et seq.). Existing provisions in the Vehicle Code regulating how licensed vehicle dealers, manufacturers, and distributors can advertise motorcycles, automobiles, and other vehicles also help ensure that California’s consumers are fully informed of the terms of transactions.

This bill would update the provisions of the Vehicle Code that govern price disclosures in connection with the sale of new motorcycles. Existing law requires pricing labels to be supplied by the manufacturer with specified information. (Veh. Code Sec. 24014.) The dealer is then required to clearly indicate specified additional information.

This bill would amend Section 24014 to require the manufacturer to provide pricing labels, or “hang tags,” that clearly indicate information for the specific motorcycle it is associated with. It would add the manufacturer’s suggested retail price (MSRP) for the motorcycle and the vehicle identification number (VIN) as information required to be included on the hang tag by the manufacturer.

This bill would also prohibit a dealer from affixing to a new motorcycle a supplemental price label containing a price that represents the dealer’s asking price that exceeds the MSRP unless the label is in compliance with all of the following:

• the supplemental price label, in lieu of the supplemental sticker provided for in subdivision (q) of Section 11713.1, is securely attached to the handlebar of the motorcycle in a way that does not prevent access to the manufacturer’s hang tag and clearly and conspicuously discloses in the largest print appearing on the label, other than the print size used for the dealer’s name, that the supplemental label price is the dealer’s asking price, or words of similar import, and that it is not the manufacturer’s suggested retail price;
• the supplemental label clearly and conspicuously discloses the manufacturer’s suggested retail price;
• the supplemental label lists each item for which the dealer imposes a charge that is not included in the manufacturer’s suggested retail price, and discloses the additional price of each item, including, but not limited to, the amount charged by the dealer for assembly, preparation, or both, and the amount charged by the dealer for transportation to the dealership. Charges disclosed shall be net of reimbursement received by the dealer from the manufacturer; and,
• if the supplemental label price is greater than the sum of the manufacturer’s suggested retail price and the price of the items disclosed above, the supplemental label shall set forth that difference and describe it as “added mark-up.”

This new hang tag would provide more detailed information for consumers looking to make sense of the listed price for a new motorcycle. It would also give clear guidance to motorcycle dealers as to what is required of them.

3. Support and Opposition

The California Motorcycle Dealers Association, the sponsor of this bill, writes that “uniformity of hang tag practices among the motorcycle manufacturers has continued to prove elusive,” and it indicates that it has “recently seen conflicting interpretations of the manner in which hang tag laws are expected to coexist with other important consumer protection laws.” It states that this bill will “finally mandate more clarity for this significant consumer protection issue that is also of extreme importance to this state’s motorcycle dealers.”

California Harley-Davidson states it supports the bill “because it provides a standard, by the use of a supplement price label, for [their] dealership to appropriately display the legitimate costs [they] incur for delivery and preparation, while being fully consumer transparent in doing so.”

A number of motorcycle dealers have also written in support citing the “very confusing” hang tag requirement in existing law. They express a belief that this bill will assist them in staying compliant with the law.

The Motorcycle Industry Council (MIC), which represents manufacturers and distributors of motorcycles, writes in opposition to the bill. Specifically, MIC is opposed to the inclusion of the VIN on a motorcycle’s hang tag. It argues this requirement: “(1) will not improve price transparency; (2) is unduly burdensome on a number of [manufacturers and distributors] who would be required to change current efficient hang tag distribution systems; and (3) a motorcycle’s VIN is already easily accessible to consumers.” It should be noted that an automobile’s VIN is required on the Monroney sticker. Including this number could help ensure the information on a hang tag is properly connected to the motorcycle it corresponds to.

Pestotnik LLP, a San Diego law firm, writes in opposition, specifically with concerns about the provision allowing dealers to indicate charges “net of reimbursement.” The firm contends that this will allow dealers to improperly hide price hikes into charges for services such as assembly or preparation for which the dealers are already fully compensated by the manufacturer. The author does indicate that the modifications in the dealer portion of the hang tag is intended to allow a dealer to charge their costs for freight, setup and preparation above the amount received from the manufacturer or distributor. However, the sponsors respond:

An argument against the bill concerns adding the following sentence: “Charges disclosed shall be net of reimbursement received by the dealer from the manufacturer.” While acknowledging the obvious – that this language limits, rather than expands, what dealers may charge – the claim is that this language would open a “loophole,” but a loophole into what law it fails to clearly state. It tries to leave the impression that new vehicle dealers are prohibited from identifying any charges for vehicle preparation and delivery, but this is simply untrue.

Support: A&S Motorcycles; Bert’s Mega Mall; California Harley-Davidson; Contra Costa Powersports; Harley-Davidson of Glendale; HB Scooters; Honda of Glendale; PCP Motorsports; Temecula Motorsports; Tracy Motorsports

Opposition: Motorcycle Industry Council; Pestotnik LLP

HISTORY

Source: California Motorcycle Dealers Association

Related Pending Legislation: None Known

Prior Legislation:

SB 2169 (Dills, Ch. 623, Stats. 1978) See Background.

AB 3645 (Thurman, Ch. 1089, Stats. 1974) See Background.

Prior Vote:

Assembly Floor (Ayes 54, Noes 13)

Assembly Appropriations Committee (Ayes 12, Noes 0)

Assembly Privacy and Consumer Protection Committee (Ayes 7, Noes 2)

**************

ASSEMBLY THIRD READING

ATR Bill Id:AB 2227

Author:(Friedman)

As Introduced Ver:

Majority vote

SUMMARY: Requires motorcycle manufacturers to provide Department of Motor Vehicle (DMV) approved "hang tags" to motorcycle dealers, containing specified information, for display on any new motorcycles offered for sale, and also requires any additional markups by the dealer to adhere to certain requirements. Specifically, this bill:

1. Requires a motorcycle manufacturer to provide dealers with a DMV-approved hang tag containing: (1) the vehicle identification number (VIN) of the motorcycle; (2) the recommended retail price of the motorcycle; (3) the recommended price for each accessory or item of optional equipment physically attached to the motorcycle at the time of its delivery to the dealer; and (4) the manufacturer's suggested retail price (MSRP) of the vehicle, which is the sum of the recommended retail price and the recommended price for any accessories.
2. Prohibits a motorcycle dealer from affixing a supplemental price label containing a price that exceeds the MSRP unless the label complies with all of the following:
   1. The supplemental price label is securely attached to the motorcycle handlebar without preventing access to the manufacturer's hang tag and clearly and conspicuously discloses, as specified, that the supplemental label price is the dealer's asking price and that it is not the MSRP;
   2. The supplemental label clearly and conspicuously discloses MSRP;
   3. The supplemental label lists each item for which the dealer imposes a charge that is not in the MSRP, and discloses the additional price of each item, including, but not limited to, the amount charged by the dealer for assembly, preparation, or both, and the amount charged by the dealer for transportation to the dealership, as specified; and
   4. If the supplemental label price is greater than the sum of the MSRP and the price of the items disclosed under the paragraph directly above, the supplemental label shall set forth that difference and describe it as "added mark-up."

EXISTING LAW:

1. Requires under the federal Automobile Information Disclosure Act, that a label be affixed to the side window or windshield of every new car sold in the United States, and requires that the label contain specified information, including: (1) the MSRP; (2) engine and transmission specifications; (3) standard equipment and warranty details; (4) optional equipment and pricing; (5) city and highway fuel economy ratings; and (6) crash test ratings. (Title 15 United States Code Section 1231 et seq.)
2. Prohibits, as matter of state law, a dealer from selling, offering to sale, or displaying, any new, assembled motorcycle unless there is a label attached to its handlebar, approved by the DMV, furnished by the manufacturer, on which the manufacturer clearly indicates: (1) the recommended retail price of the motorcycle; and (2) the recommended price for each accessory or item of optional equipment, as specified. (Vehicle Code Section (VEH) 24104(a), California Code of Regulations Section (CCR) 11712.5.)
3. Requires, on the same label referenced above, that the dealer indicate the following amounts charged, if any, above the suggested retail price: (1) amount charged for transportation to the dealership; (2) amount charged for assembly and/or preparation of the motorcycle; the amount charged for each dealer-added accessory or item of optional equipment; and (3) the total recommended retail price of the motorcycle, which shall be the aggregate of these two provisions. (VEH 24104(b), CCR 11712.5.)

FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill would create minor costs to DMV to update publications and distribute information.

COMMENTS: Current law requires motorcycle dealers to display a hang tag, provided by the manufacturer and approved by the DMV, on each motorcycle for sale. These hang tags must include the recommended retail price, the recommended price for each accessory attached to the motorcycle, any amount over the retail price attributable to transportation to the dealership, any amount for assembly, and the total recommended price of the motorcycle.

This bill will require motorcycle hang tags to include more robust information, similar to what is currently required for the sale of automobiles, to provide more uniform and transparent pricing to consumers. According to the author:

This bill ensures that tags are more transparent and less dealer ambiguous. As a result, hang tags are uniform in appearance and language. This bill establishes procedures to ensure that manufacturers seek and receive departmental approval for their hang tags, and that such hang tags are keyed to a unit's VIN. Modifications in the dealer portion of the hang tag that would allow a dealer to: charge the cost to dealer above the amount received from an [manufacturers] for freight, charge the cost to dealer above the amount received from [a manufacturer] for setup and/or preparation, and include a line for dealer 'Added Mark-up', if appropriate.

In opposition, the Motorcycle Industry Council, a national trade association of manufacturers and distributor of motorcycles, scooters, and parts and accessories writes, "[r]equiring the VIN on the motorcycle hang tag would present a logistical burden on dealers. It would be incumbent upon the dealer to match each motorcycle to the appropriate VIN-specific hang tag, given that hang tags are not shipped with the motorcycle in the crate. Lost hang tags would have to be reordered from the OEM [Original Equipment Manufacturer] and vehicles removed from the sales floor during this time. Potentially, the OEM would charge for the hang tags and/or the wholesale cost of California motorcycles would increase. This would result in a higher cost to the ultimate consumer."

Previous legislation: SB 2169 (Dills) Chapter 623, Statutes of 1978, required that a label with price and safety information be placed on the windshield of every new car being sold in California.

AB 3645 (Thurman) Chapter 1089, Statutes of 1974, required that information related to suggested retail prices be affixed to new motorcycles being sold in California.

Analysis Prepared by: Nichole Rapier / P. & C.P. / (916) 319-2200 FN: 0002719

Date of Hearing: April 18, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 2227

Author:(Friedman) – As Introduced Ver:February 13, 2018

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill updates the requirements for motorcycle manufacturers to provide “hang tags”—price sheets with specific information about the motorcycle—approved by the Department of Motor Vehicles (DMV). Specifically, this bill:

1. Expands the information required on each motorcycle hang tag to include the vehicle identification number (VIN) of the motorcycle.
2. Prohibits a motorcycle dealer from affixing a supplemental price label containing a price that exceeds the MSRP unless the label complies with specified requirements.

FISCAL EFFECT:

Minor costs to DMV to update publications and distribute information.

COMMENTS:

1. Background. Current law requires motorcycle dealers to display a hang tag, provided by the manufacturer and approved by the DMV, on each motorcycle for sale. These hang tags must include the recommended retail price, the recommended price for each accessory attached to the motorcycle, any amount over the retail price attributable to transportation to the dealership, any amount for assembly, and the total recommended price of the motorcycle.
2. Purpose. This bill will require motorcycle hang tags to include more robust information, similar to what is currently required for the sale of automobiles, to provide more uniform and transparent pricing to consumers. According to the author:

This bill ensures that tags are more transparent and less dealer ambiguous. As a result, hang tags are uniform in appearance and language. This bill establishes procedures to ensure that manufacturers seek and receive departmental approval for their hang tags, and that such hang tags are keyed to a unit’s VIN. Modifications in the dealer portion of the hang tag that would allow a dealer to: charge the cost to dealer above the amount received from an [manufacturers] for freight, charge the cost to dealer above the amount

received from [a manufacturer] for setup and/or preparation, and include a line for dealer ‘Added Mark-up’, if appropriate.

Analysis Prepared by: Jessica Peters / APPR. / (916) 319-2081

Date of Hearing: April 3, 2018

ASSEMBLY COMMITTEE ON PRIVACY AND CONSUMER PROTECTION

Ed Chau, Chair

ABPCA Bill Id:AB 2227 (

Author:Friedman) – As Introduced Ver:February 13, 2018

SUBJECT: Motorcycles: hang tags

SUMMARY: This bill would require motorcycle manufacturers to provide Department of Motor Vehicle (DMV)-approved “hang tags” to motorcycle dealers, containing specified information, for display on any new motorcycle offered for sale, and would also require any additional markups by the dealer to adhere to certain requirements. Specifically, this bill would:

1. Require a motorcycle manufacturer to provide dealers with a DMV-approved hang tag containing: (1) the vehicle identification number (VIN) of the motorcycle; (2) the recommended retail price of the motorcycle; (3) the recommended price for each accessory or item of optional equipment physically attached to the motorcycle at the time of its delivery to the dealer; and (4) the manufacturer’s suggested retail price (MSRP) of the vehicle, which is the sum of the recommended retail price and the recommended price for any accessories.
2. Prohibit a motorcycle dealer from affixing a supplemental price label containing a price that exceeds the MSRP unless the label complies with all of the following:
   • the supplemental price label is securely attached to the motorcycle handlebar without preventing access to the manufacturer’s hang tag and clearly and conspicuously discloses, as specified, that the supplemental label price is the dealer’s asking price and that it is not the MSRP;
   • the supplemental label clearly and conspicuously discloses MSRP;
   • the supplemental label lists each item for which the dealer imposes a charge that is not in the MSRP, and discloses the additional price of each item, including, but not limited to, the amount charged by the dealer for assembly, preparation, or both, and the amount charged by the dealer for transportation to the dealership, as specified; and
   • if the supplemental label price is greater than the sum of the MSRP and the price of the items disclosed under the paragraph directly above, the supplemental label shall set forth that difference and describe it as “added mark-up.”

EXISTING LAW:

1. Requires under the federal Automobile Information Disclosure Act, that a label be affixed to the side window or windshield of every new car sold in the United States, and requires that the label contain specified information, including: (1) the MSRP; (2) engine and transmission specifications; (3) standard equipment and warranty details; (4) optional equipment and pricing; (5) city and highway fuel economy ratings; and (6) crash test ratings. (15 U.S.C. Sec. 1231 et seq.)
2. Prohibits, as matter of state law, a dealer from selling, offering to sale, or displaying, any new, assembled motorcycle unless there is a label attached to its handlebar, approved by the DMV, furnished by the manufacturer, on which the manufacturer clearly indicates: (1) the recommended retail price of the motorcycle; and (2) the recommended price for each accessory or item of optional equipment, as specified. (Veh. Code Sec. 24104(a), Cal. Code Reg. Sec 11712.5.)
3. Requires, on the same label referenced above, that the dealer indicate the following amounts charged, if any, above the suggested retail price: (1) amount charged for transportation to the dealership; (2) amount charged for assembly and/or preparation of the motorcycle; the amount charged for each dealer-added accessory or item of optional equipment; and (4) the total recommended retail price of the motorcycle, which shall be the aggregate of these two provisions. (Veh. Code Sec. 24104(b), Cal. Code Reg. Sec 11712.5.)

FISCAL EFFECT: Unknown

COMMENTS:

1) Purpose of this bill: This bill seeks to establish a process, similar to the federal process for new car sales, by which motorcycle manufacturers and dealers shall provide uniform and transparent pricing information to consumers. This bill is sponsored by the California Motorcycle Dealers Association.

1. Author’s statement: According to the author, “this bill ensures that tags are more transparent and less dealer ambiguous. As a result, hang tags are uniform in appearance and language. This bill establishes procedures to ensure that manufacturers seek and receive departmental approval for their hang tags, and that such hang tags are keyed to a unit’s VIN. Modifications in the dealer portion of the hang tag that would allow a dealer to: Charge the cost to dealer above the amount received from an [manufacturers] for freight, Charge the cost to dealer above the amount received from [a manufacturer] for setup and/or Preparation, and Include a line for dealer ‘Added Mark-up’, if appropriate.”
2. Motorcycle hang tags: In 1974 the Legislature passed AB 3645 (Thurman, Ch. 1089, Stats. 1974) requiring that information related to suggested retail prices be affixed to new motorcycles being sold in California. AB 3645 was modeled on the federally mandated “Monroney sticker” law, which requires that a label with price and safety information be placed on the windshield of every new car. The Motorcycle Dealers Association supported that bill and in 1978 co-sponsored SB 2169 (Dills, Ch. 623, Stats. 1978) which required that the labels be approved by the DMV and provided to motorcycle dealers by manufacturers.

The sponsor argues that despite this prior legislation, uniformity of hang tag practices among motorcycle manufacturers has continued to prove elusive, and that there is evidence of conflicting interpretations of how hang tag laws interact with other consumer protection laws. Specifically, the sponsor alleges that the DMV has not approved any of the hang tags supplied by motorcycle manufacturers, and that until recently many manufacturers did not supply the required hang tags to dealerships at all. Of those supplied, the sponsor claims that many of the hang tags are not keyed by VIN to the motorcycles shipped.

Regarding the VIN, the Motorcycle Industry Council, representing manufacturers and distributors, argues that requiring manufacturers to include the VIN on hang tags would be burdensome on manufacturers, yet serve no purpose. Specifically, MIC argues:

Motorcycles come crated from the factory while the hang tag is delivered separately. The hang tag is only required in California. Additionally, hang tags are often provided electronically by the OEM to the dealer as templates that are only model and model year specific. By requiring the OEM to also include each motorcycle VIN, as proposed under Section 24014(a)(4), the cost and time incurred by the OEM to create hang tags that are specific to each motorcycle would be burdensome and significant.

Requiring the VIN on the motorcycle hang tag would present a logistical burden on dealers. It would be incumbent upon the dealer to match each motorcycle to the appropriate VIN-specific hang tag, given that hang tags are not shipped with the motorcycle in the crate. Lost hang tags would have to be reordered from the OEM and vehicles removed from the sales floor during this time. Potentially, the OEM would charge for the hang tags and/or the wholesale cost of California motorcycles would increase. This would result in a higher cost to the ultimate consumer.

Every motorcycle already has its VIN on its certification label which is required to be attached to the motorcycle in an easily readable location should a customer want to see the VIN for any reason. The certification label is required under National Highway Traffic Safety Administration regulations (49 CFR Part 567) to signify that the motorcycle is compliant with all applicable Federal Motor Vehicle Safety Standards.

We can’t understand any benefit or justification for this requirement. It only serves to add costs, which are ultimately passed on to the consumer, and logistical difficulties for no purpose. However, we do know that requiring the OEM to include the VIN on a motorcycle’s hang tag will not provide any pricing transparency benefit to the consumer.

In response, the author writes, “Including the VIN on a motorcycle hang tag is consistent with motor vehicle standards, such as the Monroney Sticker for automotive vehicles, and is a common practice mandated by the DMV at the state and federal level. The hangtag has been required by the manufacturer since 1978. Without including the VIN on motorcycle hang tags, motorcycles can be shipped incorrectly to dealers, and add undue burden on the dealers to determine the VIN based on vehicle configuration and model. The most efficient way for the dealer to verify a motorcycle configuration and model is via a motorcycle’s VIN. Motorcycle Manufacturers (OEMs) are already mandated to supply hangtags for highway and off-road motorcycles. The additional step of including the VIN on a hangtag does not present a significant burden, considering the benefit to the dealer and the consumer to ensure the make and model of the motorcycle is consistent with the manufacturers’ price. Inclusion of the VIN on the motorcycle hangtag ensures that the price and value of a motorcycle are consistently reflected to the consumer.”

With respect to the sponsor’s assertion that the DMV has not approved manufacturers’ hang tags, guidelines published by the DMV suggest that the department does in fact approve manufacturers’ hang tags and requires them to be affixed to new motorcycles offered for sale. By way of example, on October 19, 2017, the DMV published a memo providing the following:

A motorcycle manufacturer hangtag must meet the requirements pursuant to CVC [secs.] 11712.5 and 24014, and be submitted to the DMV Occupational Licensing Compliance Unit for review and approval prior to initial licensing. […]

If a motorcycle manufacturer is currently licensed, they shall submit the current version of the hangtag with their renewal application. DMV will review the hangtag for compliance with statutory and regulatory requirements. Once approved by DMV, a manufacturer is not required to submit a hangtag during subsequent renewal cycles. However, if a motorcycle manufacturer wants to change or modify a DMV-approved hangtag, the proposed version must be submitted to DMV for approval prior to use and distribution.

Each motorcycle dealer and manufacturer licensed under California Vehicle Code, Division 5, Chapter 4, Article 1, shall specifically list all required information pursuant to CVC [secs.] 11712.5, 11713.1 and 24014, and California Code of Regulations (CCR) [sec.] 262.03 on the DMV-approved label that is affixed to the handlebars of the motorcycles which they offer for sale.

Any motorcycle dealer or manufacturer found to be noncompliant with regulatory requirements or statute may be subject to disciplinary action(s) pursuant to CVC §11705. (See Occupational Licensing Industry News, OLIN 2017-03 Motorcycle Label Requirements, found at https://www.dmv.ca.gov/portal/wcm/connect/c62bebd2-1cbc-49e2-b96d-245e5c5e84ae/17olin03.pdf?MOD=AJPERES <as of March 21, 2018>[emphasis in original].)

Insomuch that this bill would require a new piece of information on hang tags, the VIN, the DMV will have to approve hang tags for all manufacturers not currently providing this information in an expedient manner, lest dealers and manufacturers alike be out of compliance with the law and subject to disciplinary action. Given the practical implications of this volume of applications, manufacturers should consider submitting applications for new hang tags to the DMV prior to the enactment of this bill, to ensure that dealers will be able to sell new motorcycles in 2019 without dealers or manufacturers being subject to disciplinary action for lack of a proper hang tag.

1. Supplemental price label: If a dealer wishes to charge an amount for a new motorcycle that is in excess of the MSRP, existing law requires that the dealer indicate on the manufacturer-provided label, the following amounts charged, if any, above the suggested retail price: (1) amount charged for transportation to the dealership; (2) amount charged for assembly and/or preparation of the motorcycle; the amount charged for each dealer-added accessory or item of optional equipment; and (4) the total recommended retail price of the motorcycle, which shall be the aggregate of these provisions. This bill would instead prohibit a dealer from posting an asking price above a manufacturer’s MSRP unless the dealer attaches a supplemental price label that meets certain requirements. The sponsors argue that this provision is necessary because “the portion of the hang tag that is supposed to be filled out by dealers is confusing because dealers are unsure if they can include costs incurred by them for additional transportation and assembly/preparation. Additionally, often dealers want to charge a higher retail margin for certain, higher desirable models, and there is no statutorily-provided line for that to be disclosed. To further confuse the issue, some dealers, voluntarily, have taken to using ”supplemental stickers” to disclose these costs, but supplemental stickers were designed to work with the federally mandated Monroney Sticker for autos, not new motorcycle sales.”

Accordingly, when a dealer wishes to charge an amount in excess of the MSRP for a new motorcycle, this bill would take the information required on the supplemental sticker designed for the sale of automobiles, and instead require that same information be provided on a motorcycle hang tag. The bill would require that this supplemental price label be displayed in a manner that does not prevent access to the manufacturer’s hang tag. To the extent that this bill will create a uniform process for displaying information about the advertised price of new motorcycles, it should increase transparency in pricing and arguably benefit consumers in making informed decisions.

1. Prior legislation: SB 2169 (Dills, Ch. 623, Stats. 1978) see Comment 4.

AB 3645 (Thurman, Ch. 1089, Stats. 1974) see Comment 4.

REGISTERED SUPPORT / OPPOSITION:

Support

California Motorcycle Dealers Association (sponsor)

A&S Motorcycles

Bert’s Mega Mall

California Harley-Davidson

Contra Costa Powersports

Harley-Davidson of Glendale

HB Scooters

Honda of Glendale

PCP Motorsports

Tracy Motorsports

Opposition

Motorcycle Industry Council.

Analysis Prepared by: Nichole Rapier / P. & C.P. / (916) 319-2200