BILL ANALYSIS
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THIRD READING
Bill No: SB 234
Author: Corbett (D)
Amended: 4/10/07
Vote: 21
SENATE JUDICIARY COMMITTEE : 5-0, 3/27/07
AYES: Corbett, Harman, Ackerman, Kuehl, Steinberg
SUBJECT : Motor vehicle consumer warranties: members of
the Armed
Forces
SOURCE : Consumers for Auto Reliability and Safety
DIGEST : This bill provides that Californias Lemon Law
cover a motor vehicle purchased by a member of the Armed
Forces in the United States with a manufacturer's express
warranty regardless of the state of purchase or
registration, if both of the following apply: (1) the
member purchased the motor vehicle, as defined, from a
manufacturer who sells vehicles in California, and (2) the
member was stationed in or a resident of California at the
time he or she purchased the vehicle or at the time he or
she filed an action pursuant to California's Lemon Law.
This bill defines "Member of the Armed Forces" for purposes
of California's Lemon Law as a person on full-time active
duty in the Army, Navy, Marine Corps, Air Force, National
Guard, or Coast Guard, and provides that full-time active
duty also include active military service at a designated
CONTINUED
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military service school.
ANALYSIS : Existing law, the Song-Beverly Consumer
Warranty Act, establishes a number of protections for new
and used motor vehicles covered by a manufacturer's express
warranty. [Civil Code Section 1780 et seq.]
Existing case law holds that Song-Beverly only applies to a
motor vehicle sold in California, even if the buyer is a
resident of California, the manufacturer sells such
vehicles in California, and its authorized repair
facilities in California failed to repair the vehicle after
a reasonable number of attempts. [ Cummins, Inc. v.
Superior Court of Riverside County (2005) 36 Cal.4th 478.]
Existing case law holds that a used motor vehicle sold or
leased with a balance of the manufacturer's original
warranty is a "new motor vehicle" for purposes of
California's Lemon Law. [ Jensen v. BMW of North America,
Inc. (1995) 35 Cal.App.4th 112.]
This bill provides that California's "Lemon Law" cover a
motor vehicle purchased by a member of the Armed Forces in
the United States with a manufacturer's express warranty
regardless of the state of purchase or registration, if
both of the following apply: (1) the member purchased the
motor vehicle, as defined, from a manufacturer, or from an
agent or representative of that manufacturer, who sells
vehicles in California and (2) the member was stationed in
or a resident of California at the time he or she purchased
the vehicle or at the time he or she filed an action
pursuant to California's Lemon Law.
Existing law defines "express warranty" as a written
statement arising out of a sale to the consumer of a
consumer good pursuant to which the manufacturer,
distributor, or retailer undertakes to preserve or maintain
the utility or performance of the consumer good or provide
compensation if there is a failure in utility or
performance. [Civil Code Section 1791.2.]
Existing law defines, among other things, "consumer goods,"
"buyer," "distributor," "independent repair or service
facility" and "manufacturer." (Civil Code Section 1791.]
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This bill, for purposes of the Lemon Law, defines "Member
of the Armed Services" to mean a person on full-time active
duty in the Army, Navy, Marine Corps, Air Force, National
Guard, or Coast Guard and provides that full-time active
duty also include active military service at a designated
military service school.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 4/10/07)
Consumers for Auto Reliability and Safety (source)
Consumer Action
Consumer Attorneys of California
Consumer Federation of California
Navy Federal Credit Union
Major General Lehnert - Commanding General of Marine Corps
Installation West, Camp Pendleton, California
California State Commanders Veterans Council
Charles S. Cooper - Major General, USAF, Retired
Steve Lynch - Lt. Col., USAF, Retired
ARGUMENTS IN SUPPORT : The author's office and sponsor
state, "Existing law requires car buyers to purchase their
vehicles in California in order to benefit from the
protections under California's auto lemon law. In some
cases, that results in service members and their families
suffering major hardships when they are saddled with unsafe
and/or inoperable vehicles, purchased in another state.
This can cause our troops additional stress, loss of
income, lack of transportation, and other financial and
service-related hardships and can distract them from their
important mission of protecting our nation.
"Due to varying provisions of state lemon laws, in some
cases, troops may lack protection under the lemon laws of
ANY state.
"In one case, a Lieutenant testified live form Iraq, while
on deployment from a base in Southern California, the auto
manufacturers acknowledged his new truck was a lemon, and
told him that if he were protected by California's lemon
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law the manufacturer would promptly repurchase the lemon,
but since he lacked that protection, they refused to buy it
back. Eventually, that case was resolved, but he
lieutenant had to accept a large deduction and took a hefty
loss, instead of obtaining a complete refund. (Testimony
was delivered live via telephone, before the Joint
Committee on Boards, Commissions, and Consumer Protection,
held May 23, 2006.) In addition, the manufacturer has
attempted to have the vehicle retitled as a VOLUNTARY
BUYBACK, as opposed to a lemon law buyback. This could
mean that some unsuspecting consumer may get saddled with a
lemon."
Proponents assert that this bill is narrowly tailored to
protect a particularly vulnerable population, Armed Forces
members stationed in or residents of California who are
subject to deployment on short notice, and who do not have
any choice of where they are stationed or deployed.
RJG:cm 4/9/07 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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