BILL ANALYSIS �
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 988
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: jones
VERSION: 5/24/13
Analysis by: Carrie Cornwell FISCAL: yes
Hearing date: July 2, 2013
SUBJECT:
New Motor Vehicle Board: recreational off-highway vehicles
DESCRIPTION:
This bill includes dealers, distributors, and manufacturers of
recreational off-highway vehicles under the purview of the New
Motor Vehicle Board.
ANALYSIS:
Existing law defines vehicle manufacturers, distributors,
dealers, franchisors, and franchisees and prescribes their
licensing requirements.
Existing law also creates the New Motor Vehicle Board within
Department of Motor Vehicles (DMV) to act as an independent,
quasi-judicial authority to resolve disputes between franchised
dealers and manufacturers of new vehicles, including motorcycles
and all-terrain vehicles. State law further assigns the board
with responsibility to help resolve disputes between consumers
of new vehicles and dealers or manufacturers of new motor
vehicles.
Last year, AB 1595 (Cook), Chapter 165, defined recreational
off-highway vehicles (ROHVs) as a motor vehicle designed for
operation primarily off of the highway and that has:
A steering wheel;
Non-straddle seating for the operator and passengers;
A maximum speed capability of greater than 30 miles per
hour; and
An engine displacement equal to or less than 1,000 cubic
centimeters.
AB 1595 included ROHVs among off-highway vehicles subject to DMV
registration and identification requirements.
AB 988 (JONES) Page 2
This bill :
1.Expands the definitions of vehicle manufacturer, distributor,
dealer, franchisor, and franchisee to include those in the
business of making and selling ROHVs.
2.Subjects ROHV dealers to the same examination and bonding
requirements as existing law prescribes for motorcycle and
all-terrain vehicle dealers.
3.Includes those dealers who sell and those manufacturers who
make ROHVs within the purview of the New Motor Vehicle Board
for purposes of resolving disputes between franchisees and
franchisors and with consumers.
COMMENTS:
Purpose . Prior to AB 1595 taking effect in January of this
year, state law considered ROHVs to be a form of all-terrain
vehicle, despite the fact that there are inherent differences in
how these two 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.
By distinguishing ROHVs as a class of vehicle separate from
all-terrain vehicles, AB 1595 made it unclear as to whether or
not ROHVs continue to fall under the jurisdiction of the New
Motor Vehicle Board and how ROHV dealers should otherwise be
treated for licensing and bonding purposes. The author
introduced this bill to clarify that ROHVs are subject to the
jurisdiction of the New Motor Vehicle Board, as they were up
until January 1 of this year, and that dealers of ROHVs should
be regulated in the same manner as motorcycle and all-terrain
vehicle dealers.
The author notes that placing ROHVs under the purview of the
NMVB will allow ROHV buyers to continue to take advantage of the
New Motor Vehicle Board's consumer arbitration program and allow
ROHV manufacturers and dealers to continue to use the board as a
means to settle disputes. The sponsor, the California
Motorcycle Dealers Association, includes members that sell ROHVs
and who wish to remain under the jurisdiction of the board for
both disputes with manufacturers and with consumers. The
sponsor asserts that the board's work to resolve disputes helps
to avoid costly legal bills and to lessen the workload of
California's overcrowded court system.
AB 988 (JONES) Page 3
Assembly Votes:
Floor: 75-1
Appr: 16-0
Trans: 16-0
POSITIONS: (Communicated to the committee before noon on
Wednesday, June 26,
2013.)
SUPPORT: California Motorcycle Dealers Association
(sponsor)
OPPOSED: None received.