BILL ANALYSIS Ó
AB 988
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Date of Hearing: May 1, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 988 (Jones) - As Introduced: February 22, 2013
Policy Committee:
TransportationVote:16-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill clarifies that recreational off-highway vehicles
(ROHVs) are within the jurisdiction of the New Motor Vehicle
Board (NMVB).
FISCAL EFFECT
Increased programming, reporting, and administrative special
fund costs, likely in the hundreds of thousands of dollars, to
the DMV.
The DMV indicates moderate to major programming to create a new
type license code-a two- digit code used to distinguish
dealers/manufacturers of autos, motorcycles, trailers,
motorhomes, etc. DMV indicates it does not have the data space
required to add another code to the current data field.
Programming will be needed to consolidate other off-road
vehicles, such as ATV's or snowmobiles into one general
off-highway vehicle code.
The license code type is also used to determine certain
licensing requirements and the fee amounts generated on
dealer/manufacturer license renewal notices. The license number
and type license is also used to collect and allocate money
collected from the dealers/manufacturers to the NMVB to support
their program activities.
Changes to occupational license cards will also be required. The
license is posted to alert the public and enforcement entities
of the seller's eligibility and any consumer requirements.
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The department's internal reporting will have to be retooled to
correctly capture transactions performed, numbers of licensees,
information service reports, and the fees collected from the
licensing group.
DMV's Online Occupational License Status Information will also
require programming modification to correctly identify the new
type of product(s) sold by a licensed dealer, distributor and
manufacturer. This is a no-fee online service to provide
consumers with public record data on licensed dealers and their
current license status.
Due to competing programming efforts currently scheduled, the
programming required for this bill would most likely not be
completed by the implementation date, which will require a
manual workaround process, increasing implementation costs.
COMMENTS
1)Background . The NMVB was created in 1967, as the New Car
Dealers Policy and Appeals Board, to hear appeals of final
decisions by the Director of DMV that were adverse to the
occupational license of new motor vehicle dealers,
manufacturers, distributors, or representatives. In 1973, the
California Automobile Franchise Act renamed the Board the NMVB
and creating a broad statutory framework for regulating and
settling disputes in the new vehicle industry.
The NMVB operates in a quasi-judicial capacity to resolve
disputes between franchised dealers and
manufacturers/distributors of new motor vehicles (including
motorcycles and recreational vehicles). The NMVB also provides
consumer mediation services that attempt to resolve disputes
between consumers and new motor vehicle dealers and/or
manufacturers or distributors.
2)Purpose . ROHVs had been considered to be a form of ATV,
despite the fact that there are inherent differences in how
the vehicles are designed, configured, and operated. AB 1595
(Cook)/Chapter 165 or 2012, distinguished ROHVs as a separate
and distinct category of vehicle and established laws to
govern their safe operation. With this statutory distinction,
however, it became unclear whether or not ROHVs would continue
to fall under the jurisdiction of the NMVB. AB 988 clarifies
AB 988
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that ROHVs will continue to be subject to the NMVB
jurisdiction.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081