BILL ANALYSIS Ó
AB 988
Page 1
ASSEMBLY THIRD READING
AB 988 (Jones)
As Amended May 24, 2013
Majority vote
TRANSPORTATION 16-0 APPROPRIATIONS 16-0
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|Ayes:|Gordon, Linder, |Ayes:|Gatto, Harkey, Bigelow, |
| |Achadjian, Ammiano, | |Bocanegra, Bradford, Ian |
| |Blumenfield, Bonta, | |Calderon, Campos, Eggman, |
| |Buchanan, Daly, Frazier, | |Gomez, Hall, Ammiano, |
| |Gatto, Holden, Logue, | |Linder, Pan, Quirk, |
| |Morrell, Nazarian, | |Wagner, Weber |
| |Patterson, Quirk-Silva | | |
| | | | |
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SUMMARY : Adds recreational off-highway vehicles (ROHVs) under
the jurisdiction of the New Motor Vehicle Board (NMVB) and
includes ROHVs as a separate and distinct vehicle type in
statute.
EXISTING LAW :
1)Defines an ROHV as a motor vehicle designed by the
manufacturer for operation primarily off-highway that has a
steering wheel, non-straddle seating, maximum speed capability
greater than 30 miles per hour (mph), and engine displacement
equal to or less than 1,000 cubic centimeters (cc).
2)Authorizes dealers, distributors, franchisees, franchisors,
new motor vehicle dealers, and vehicle manufacturers to make,
distribute, and sell a variety of vehicle types including
off-highway motorcycles, and all-terrain vehicles (ATVs).
3)Establishes the nine-member NMVB within the Department of
Motor Vehicles (DMV).
4)Authorizes the NMVB to settle disputes between franchisors and
franchisees in the new vehicle industry.
5)Authorizes the NMBV to provide a Consumer Mediation Services
Program for dispute resolution by consumers against a new
vehicle dealership, manufacturer, or distributor licensed to
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do business in California.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, increased programming, reporting, and administrative
special fund costs, likely in the hundreds of thousands of
dollars, to the DMV.
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 : The NMVB was created in 1967 as the New Car Dealers
Policy and Appeals Board (Board). At that time, the Board's
function was limited to hearing appeals from 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 Legislature
passed the California Automobile Franchise Act, renaming 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 attempts, through informal
mediation, to resolve disputes between consumers and new motor
vehicle dealers and/or manufacturers or distributors.
Prior to the passage of AB 1595 (Cook), Chapter 165, Statutes of
2012, ROHVs were 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 distinguished ROHVs
as a separate and distinct category of vehicle and established
laws to govern their safe operation. As defined in AB 1595,
ROHVs are vehicles that are used primarily for off-highway
operation, have a steering wheel, non-straddle seating provided
by the manufacture for the operator and all passengers, a
maximum speed capability of greater than 30 mph, and an engine
displacement equal to or less than 1,000 cc (61 ci).
By distinguishing ROHVs as a separate class of vehicle from
motorcycles or ATVs, it became unclear whether or not ROHVs
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would continue to fall under the jurisdiction of the NMVB.
Therefore, by introducing this bill, the author seeks to clarify
that ROHV would continue to be subject to the jurisdiction of
the NMVB, as they were up until 2012.
The author notes that placing ROHV's under the purview of the
NMVB will allow ROHV buyers to continue to take advantage of the
NMVB's consumer arbitration program and allow ROHV manufacturers
and dealers to continue to use the NMVB as a means to settle
disputes.
Recent legislation : AB 1595 (Cook), Chapter 165, Statutes of
2012, defined recreational off-highway vehicles and prescribed
safety regulations for their use.
AB 1266 (Nielsen), Chapter 529, Statutes of 2012, delayed the
effective date of seating restrictions provided in AB 1595
(Cook).
Analysis Prepared by : Victoria Alvarez / TRANS. / (916) 319-
2093
FN: 0000903