BILL ANALYSIS                                                                                                                                                                                                    



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 287 (Gordon) - Vehicle safety:  recalls
          
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          |Version: August 2, 2016         |Policy Vote: T. & H. 11 - 0,    |
          |                                |          JUD. 7 - 0            |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: August 11, 2016   |Consultant: Mark McKenzie       |
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          *********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
             The following information is revised to reflect amendments 
                     adopted by the committee on August 11, 2016






          Bill  
          Summary:  AB 287 would require the Department of Motor Vehicles  
          (DMV) to notify vehicle owners on their registration renewal  
          notices if a vehicle is subject to a manufacturer's recall, as  
          specified.  The bill would also prohibit a dealer or car rental  
          company from loaning or renting a vehicle is subject to a recall  
          until the repair has been made.


          Fiscal  
          Impact:  
           Unknown one-time DMV costs, potentially in the range of  
            $75,000 to $150,000, to contract with an outside entity to  







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            provide vehicle recall database reports for vehicles subject  
            to registration renewal.  (Motor Vehicle Account)

           One-time DMV programming costs of approximately $125,000 to  
            make IT changes to the vehicle registration database systems  
            to provide for the vehicle recall disclosure.  Timing of the  
            programming would depend upon when the DMV declares that it  
            has access to a recall database and funding available to  
            provide the disclosure on vehicle registration renewals.   
            (Motor Vehicle Account)

           Ongoing DMV costs of approximately $580,000 for field office  
            and call center staff time to respond to inquiries about the  
            recall notices, assuming a small percentage of the 4.5 - 5  
            million registration renewal customers request additional  
            information. 

           Potential DMV costs beginning in 2017-18 for ongoing  
            dealership inspections and enforcement activities.  Staff  
            estimates any additional activities would result in minor  
            costs. (Motor Vehicle Account)


          Author  
          Amendments:  
           Add a provision that authorizes DMV to suspend a dealer's  
            license for failure to comply with the bill (applies to  
            provisions that prohibit a dealer from loaning or renting a  
            vehicle subject to a recall).
           Specify that the prohibition against dealers and rental car  
            companies from renting or loaning a vehicle subject to a  
            recall only applies to dealers or companies with a fleet of 34  
            or fewer loaner or rental vehicles.
           Revise the language that DMV would include on registration  
            renewal documents.
           Delete the delayed operative date of July 1, 2017.
           Make a clarifying change.


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