California Signature Authentication Law - AB1570 1 1

[Yorick]

California Signature Authentication Law - AB1570

I think this is important enough to post here:

California Assembly Members enacted a new law which became effective January 1, 2017 which requires certification of autographed memorabilia.  Here is a portion of the text that introduces the law (AB1570):

This bill would instead define the term “collectible” to mean all
autographed items, whether or not sports related, as specified, and would
make conforming changes to the provisions regulating the sale or offer to
sell by a dealer to a consumer of a collectible in this state. The bill would
exclude a pawnbroker licensed pursuant to a specified law, under specified
circumstances, the personality who signs the memorabilia, and a provider
or operator of an online marketplace, as specified, from the definition of a
dealer.

This new law has far reaching effects on collectors of any medium that includes a signature.  If you reside in California and have the ability to protest/petition the removal/validity of this law, I would strongly urge you to do so.  I have no idea how California comic conventions are going to function, or how this will affect CGC's Signature Series books.  I was first made aware of this horrible law through a Eureka California bookseller (http://eurekabooksellers.com/your-signed-books-and-artwork-just-got-harder-to-sell-in-california/).

The full text of the Bill can be found online as well, but I find that the Eureka Bookseller has a very well written synopsis of what this means to collectors.

[CardiacKid1]

Yet another example of government overreach, hurting the very people they think they are trying to protect.  

 

Stay out of our lives and let us pursue happiness.

[Yorick]

I interpret the new law to mean that anyone in California buying or selling a CGC Sig Series comic must have the name and address of the CGC witness to include with the book.  Penalties look pretty harsh too.

I'm considering going to a government sponsored "seized assets" auction in order to buy a signed item, and then in turn sue them to make a cool half million dollars....  I would never do that to a fellow collector though.

[Bird]

when they exempt the person who signs the item I thought that included SS as well. But I live in NJ so I didn't give it a second thought.

[Yorick]

6 minutes ago, Bird said:

when they exempt the person who signs the item I thought that included SS as well. But I live in NJ so I didn't give it a second thought.

There is no liability placed on the signer (artists/writers).  The burden goes to whomever wants to sell an item with an autograph that is valued at more than $5.  The law is REALLY stupid.  It might affect anyone outside of California, because if you sell to someone IN California you could potentially be sued by the California collector.  Check out the Eureka Bookseller website.  They show a link to Neil Gaimen's new limited edition signed book from Easton Press that WILL NOT SHIP TO CALIFORNIA.  Ridiculous.

[Yorick]

I should probably post here that I am not an attorney.  If you need legal advice, contact a lawyer.

[STORMSHADOW_80]

Wouldn't the CGC label function as a COA?

[Yorick]

12 hours ago, STORMSHADOW_80 said:

Wouldn't the CGC label function as a COA?

The label does not fulfill the requirements of this new BS law.  It does not identify CGC's witness by name.   Also check out sub-section "(8)".  Now my own name and address has to be shipped around with a CGC Sig book for the next seven years?!!

(b) Whenever a dealer, in selling or offering to sell to a consumer a
collectible in or from this state, provides a description of that collectible as
being autographed, the dealer shall furnish a certificate of authenticity to
the consumer at the time of sale. The certificate of authenticity shall be in
writing, shall be signed by the dealer or his or her authorized agent, and
shall specify the date of sale. The certificate of authenticity shall be in at
least 10-point boldface type and shall contain the dealer’s true legal name
and street address. The dealer shall retain a copy of the certificate of
authenticity for not less than seven years. Each certificate of authenticity
shall do all of the following:
(1) Describe the collectible and specify the name of the personality who
autographed it.
(2) Either specify the purchase price and date of sale or be accompanied
by a separate invoice setting forth that information.
(3) Contain an express warranty, which shall be conclusively presumed
to be part of the bargain, of the authenticity of the collectible. This warranty
shall not be negated or limited by reason of the lack of words such as
“warranty” or “guarantee” or because the dealer does not have a specific
intent or authorization to make the warranty or because any statement
relevant to the collectible is or purports to be, or is capable of being, merely
the dealer’s opinion.
(4) Specify whether the collectible is offered as one of a limited edition
and, if so, specify (A) how the collectible and edition are numbered and (B)
the size of the edition and the size of any prior or anticipated future edition,
if known. If the size of the edition and the size of any prior or anticipated
future edition is not known, the certificate shall contain an explicit statement
to that effect.
(5) Indicate whether the dealer is surety bonded or is otherwise insured
to protect the consumer against errors and omissions of the dealer and, if
bonded or insured, provide proof thereof.
(6) Indicate the last four digits of the dealer’s resale certificate number
from the State Board of Equalization.
(7) Indicate whether the item was autographed in the presence of the
dealer and specify the date and location of, and the name of a witness to,
the autograph signing.
(8) Indicate whether the item was obtained or purchased from a third
party. If so, indicate the name and address of this third party.
(9) Include an identifying serial number that corresponds to an identifying
number printed on the collectible item, if any. The serial number shall also
be printed on the sales receipt. If the sales receipt is printed electronically,
the dealer may manually write the serial number on the receipt.

[fatlab123]

Just saw this post ...I used the old version of this law to settle a lawsuit I had with a sports memorabilia dealer.  The part of the law that scared the dealer was "a civil penalty in an amount equal to 10 times actual damages, plus court costs, reasonable attorney’s fees, interest, and expert witness fees, if applicable, incurred by the consumer in the action. The court, in its discretion, may award additional damages based on the egregiousness of the dealer’s conduct" At the time almost 20 years ago there was no record or we couldn't find one of a suit where there was a judgement.  The dealer didn't want to take a chance ..so we settled out of court .  It can help someone who has been take advantage of. 

[Mercury Man]

Meanwhile in January of 2017  

Less than four years after declaring California’s budget balanced for the foreseeable future, Gov. Jerry Brown on Tuesday said the state is projected to run a $1.6-billion deficit by next summer .

Maybe they should get back to more pressing matters? 

[Yorick]

16 hours ago, fatlab123 said:

Just saw this post ...I used the old version of this law to settle a lawsuit I had with a sports memorabilia dealer.  The part of the law that scared the dealer was "a civil penalty in an amount equal to 10 times actual damages, plus court costs, reasonable attorney’s fees, interest, and expert witness fees, if applicable, incurred by the consumer in the action. The court, in its discretion, may award additional damages based on the egregiousness of the dealer’s conduct" At the time almost 20 years ago there was no record or we couldn't find one of a suit where there was a judgement.  The dealer didn't want to take a chance ..so we settled out of court .  It can help someone who has been take advantage of. 

Since you settled, are you able to give any information about the case?  Maybe a general overview?

I know there is fraud out there, but with so many companies that verify signatures these days I feel that Govt is going overboard.  As collectors, we generally police ourselves and do our own analysis of authenticity etc.  If we needed to go so far as initiating a lawsuit, we have fraud laws to use.

[fatlab123]

I can tell you that I purchased a large lot of signed sport memorabilia with coa.  When I attempted to sell some of the pieces that is when I found out they were fake.  I attempted to return the items they refused and didn't believe they were fake.  This is when I had to prove they were fake.  I had to get expert's to prove it.  I had baseball player Ted Williams son, Reggie Jackson, former fbi fraud agent , talked to upper deck fraud team.  It was small but possibly big case due to the law at the time wanting to find out what would happen. Also the person behind the fraud sports stuff was selling stuff at swap meets and movie theaters . Sorry to say anyone who bought sports memorabilia at the oc swap meet in the 90's it probably fake.

[Yorick]

9 hours ago, fatlab123 said:

I can tell you that I purchased a large lot of signed sport memorabilia with coa.  When I attempted to sell some of the pieces that is when I found out they were fake.  I attempted to return the items they refused and didn't believe they were fake.  This is when I had to prove they were fake.  I had to get expert's to prove it.  I had baseball player Ted Williams son, Reggie Jackson, former fbi fraud agent , talked to upper deck fraud team.  It was small but possibly big case due to the law at the time wanting to find out what would happen. Also the person behind the fraud sports stuff was selling stuff at swap meets and movie theaters . Sorry to say anyone who bought sports memorabilia at the oc swap meet in the 90's it probably fake.

That is an awful situation to be in.  I am glad that you were able to use that code to settle the case, but I think you could have done without it.

I looked up the penalties for fraud (which appears to be Penal Code 470) and it appears they use $950 as the breaking point between misdemeanor and felony fraud.

The potential penalties for a misdemeanor California forgery conviction include:

-Up to one (1) year in county jail,

-A fine of up to one thousand dollars ($1,000),

-Informal (also known as summary) probation, and/or

-Payment of restitution to any victims.

And if you are charged with felony forgery, the penalties may include:

-Sixteen (16) months, two (2) years or three (3) years in county jail,

-A fine of up to ten thousand dollars ($10,000),

-Informal or formal probation, and/or

-Payment of restitution to any victims.

[fatlab123]

Thanks I was glad to settle . Also I purchased it through a third party " sorry need to be vague here" .  So we didn't know who we should go after the third party or the consigner .  Now the law sounds like it would be the third party .  

[Yorick]

11 hours ago, fatlab123 said:

Thanks I was glad to settle . Also I purchased it through a third party " sorry need to be vague here" .  So we didn't know who we should go after the third party or the consigner .  Now the law sounds like it would be the third party .  

I would also have trouble in that situation assigning blame.  For me, I would probably attribute blame to the entity that provided the certificate of authenticity.  Was the consignor the one that provided the certificates?  It would also be very difficult to prove who was responsible for the fraud/forgery.

Actually the new law would make the consignor responsible.  The intermediaries are off the hook (such as auction houses like ebay).

It looks like I made a mistake on the fraud law above: that is the penalty for FORGERY.  The penalty for fraud is about the same.  So in your case, the penalties could have been doubled against the seller.

I still believe the new law is "government overreach" as @cardiackid1 stated so eloquently.