BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 759|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: AB 759
Author: Linder (R)
Amended: 9/4/15 in Senate
Vote: 21
SENATE TRANS. & HOUSING COMMITTEE: 11-0, 7/14/15
AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva,
McGuire, Mendoza, Roth, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 77-0, 4/30/15 (Consent) - See last page for
vote
SUBJECT: Recreational vehicles
SOURCE: California Recreational Vehicle Dealers Association
Recreational Vehicle Industry Association
DIGEST: This bill authorizes recreational vehicle (RV) dealers
whose franchises have been terminated to continue to sell any
new RV inventory that was purchased by the dealer prior to the
termination.
Senate Floor Amendments of 9/4/15 resolve chaptering-out issues
with AB 1178 (Achadjian) and correct a cross-referencing error.
ANALYSIS:
AB 759
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Existing law:
1)Establishes the New Motor Vehicle Board (NMVB), which is
responsible for resolving disputes between franchised dealers
and manufacturers of new motor vehicles, including motorcycles
and RVs.
2)Prohibits RV dealers from selling new RVs without a franchise
from the RV manufacturer.
This bill:
1)Makes a number of technical changes to the statutes dealing
with the NMVB, including the creation of separate parallel and
nearly identical code sections for RV dealers and auto
dealers.
2)Authorizes RV dealers whose franchises have been terminated to
continue to sell any new RV inventory that was purchased by
the dealer prior to the termination.
Comments
Purpose of the bill. According to the author, inconsistent and
misleading language has crept into the NMVB code sections over
the years. This bill is intended to provide technical and
clarifying changes to the statutes. In addition, the bill
authorizes RV dealers to sell their remaining inventory after a
franchise agreement has ended, a common industry practice. The
bill is sponsored by the Recreational Vehicle Industry
Association and the California Recreational Vehicle Dealers
Association. Many of the technical amendments were proposed by
the NMVB.
Background. The NMVB is a small organization with 13 positions
proposed for FY 2015-2016. Contrary to its name, the NMVB deals
primarily with franchise dealer/manufacturer disputes, though as
a secondary duty they offer a non-binding mediation service
between consumers and new-car dealers and manufacturers. The
NMVB does not have the authority to enforce California's lemon
law.
What's new? The one substantial provision in the bill
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authorizes RV dealers who have lost their franchises to sell any
new RVs in their inventory as new. Because RV dealers own their
inventory, if their franchises are lost that inventory would
have to be sold as used, resulting in a loss to the dealers,
according to the sponsors. Current law is apparently more
honored in the breach than the observance under current
practice. This bill legitimizes that practice.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
SUPPORT: (Verified9/8/15)
Recreational Vehicle Industry Association (co-source)
California Recreational Vehicle Dealers Association (co-source)
OPPOSITION: (Verified9/8/15)
None received
ASSEMBLY FLOOR: 77-0, 4/30/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau,
Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd,
Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia,
Eduardo Garcia, Gatto, Gipson, Gonzalez, Gordon, Gray, Grove,
Hadley, Harper, Roger Hernández, Holden, Irwin, Jones,
Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,
Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,
Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,
Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,
Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Campos, Chávez, Gomez
Prepared by:Randy Chinn / T. & H. / (916) 651-4121
9/8/15 20:25:59
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