BILL ANALYSIS                                                                                                                                                                                                    Ó

          |SENATE RULES COMMITTEE            |                        AB 759|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |

                                   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


           ASSEMBLY FLOOR:  77-0, 4/30/15 (Consent) - See last page for  

           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  

          Senate Floor Amendments of 9/4/15 resolve chaptering-out issues  
          with AB 1178 (Achadjian) and correct a cross-referencing error.



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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  

          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.


          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  

          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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