BILL ANALYSIS Ó
AB 287
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ASSEMBLY THIRD READING
AB
287 (Gordon, et al.)
As Amended May 28, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
| | | | |
| | | | |
|----------------+------+--------------------+----------------------|
|Transportation |16-0 |Frazier, Achadjian, | |
| | |Baker, Bloom, | |
| | |Campos, Chu, Daly, | |
| | |Dodd, Eduardo | |
| | |Garcia, Gomez, Kim, | |
| | |Linder, Medina, | |
| | |Melendez, Nazarian, | |
| | |O'Donnell | |
| | | | |
|----------------+------+--------------------+----------------------|
|Privacy |11-0 |Gatto, Wilk, Baker, | |
| | |Calderon, Chang, | |
| | |Chau, Cooper, | |
| | |Dababneh, Dahle, | |
| | |Gordon, Low | |
| | | | |
|----------------+------+--------------------+----------------------|
|Appropriations |16-0 |Gomez, Bigelow, | |
| | |Calderon, Chang, | |
| | |Daly, Eggman, | |
| | |Gallagher, Eduardo | |
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| | |Garcia, Gordon, | |
| | |Holden, Jones, | |
| | |Quirk, Rendon, | |
| | |Wagner, Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Enacts the Consumer Automotive Recall Safety Act (Act)
which requires a motor vehicle dealer to obtain a recall database
report within 30 days before sale or offer of a used car,
generally requires a used car to be repaired prior to transfer or
accepted by the consumer unrepaired after providing informed
consent, and prohibits the rental of vehicles subject to a recall.
Specifically, this bill:
1) Prohibits a dealer from displaying or offering for sale a
used vehicle unless the dealer has obtained a recall database
report within 30 days of the display of offer.
2) Prohibits a dealer from selling or leasing a used vehicle
if the recall database report indicates the vehicle is
subject to a "Stop Sale-Stop Drive" recall until the recall
repair has been made.
3) Prohibits a dealer from selling or leasing a used vehicle
if the recall database report indicates the vehicle is
subject to a manufacturer's recall and the line-make is the
same as the franchise of the dealer, until the recall repair
has been made.
4) Allows a dealer to sell or lease a used vehicle that is
subject to a manufacturer's recall, as specified, if the
vehicle is not the same line-make as the franchise of the
dealer if the following conditions are satisfied:
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a) The dealer provides the recall database report to the
consumer disclosing the manufacturer's recall prior to
sale or lease; and,
b) The consumer signs a disclosure agreement
acknowledging the manufacturer's recall, and that the
consumer can get the recall repaired at no cost to the
consumer at a new motor vehicle dealer of the vehicle's
line-make.
5) Clarifies that the disclosure by a dealer and
acknowledgment by the consumer has no legal effect other than
to demonstrate compliance with the law by the dealer, and
should not be interpreted to place consumers in a less
advantageous legal position than if no disclosure had been
made.
6) Specifies that a recall database report and the disclosure
agreement signed by the consumer must be provided separate
from the conditional sales contract or other purchase
agreement.
7) Prohibits a rental car company from renting a vehicle
subject to a recall no later than 48 hours after receiving a
notice of a recall, or sooner if practicable.
8) Allows a rental car company, if a recall notification
indicates that the remedy for the recall is not immediately
available and specifies actions to temporarily repair the
vehicle in a manner to eliminate the safety risk that
prompted the recall, to rent the vehicle after having the
interim repairs completed.
9) Specifies that once the remedy for the rental vehicle
subject to recall becomes available to the rental car
company, the rental car company may not rent the vehicle
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until repaired.
10) Requires the seller of a motor vehicle, including private
party sales, to disclose all recalls related to the vehicle
being sold and requires the buyer to provide an
acknowledgment form to the Department of Motor Vehicles (DMV)
indicating the buyer has received all recall information in
order to transfer vehicle registration, as specified, and
authorizes the DMV to refuse transfer or registration without
that acknowledgment.
11) Requires a vehicle manufacturer to clearly and
conspicuously display all recall notifications on its Web
site.
12) Requires a vehicle manufacturer to provide, upon request,
a consumer seeking to repair a recalled vehicle a rental or
loaner vehicle at no cost until the parts and/or procedures
become available, as specified.
13) Requires a vehicle manufacturer to adequately and fairly
compensate a dealer for costs associated with providing a
rental or loaner vehicle and storing a recalled vehicle
waiting to be repaired, as specified.
14) Specifies that a vehicle manufacturer shall not provide a
consumer with a rental or loaner vehicle that is subject to a
Stop Sale- Stop Drive recall or a manufacturer's recall.
15) Provides that a dealer, rental car company, or private
seller are not legally responsible for any errors,
inaccuracies or omissions contained in the recall database
report, nor do such parties have any legal duty to provide
information added to a recall database after the dealer,
franchisee, rental car company, or private seller obtained
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the required recall database report.
16) Further provides that nothing in this bill shall affect
any legal rights, claims, or remedies otherwise available
under law.
17) Establishes a claims and appeals process, as specified,
between vehicle dealers and manufacturers regarding payment
requirements and obligations identified in the Act.
18) Directs the DMV's New Motor Vehicle Board (Board) to hear
and decide disputes between vehicle dealers and manufacturers
related to the Act's payment requirements and obligations.
19) Requires the certificate of ownership for an automobile to
contain a provision for a recall disclosure, as specified, as
of July 1, 2016, or as soon as the DMV exhausts its existing
supply of certificate of ownership forms.
20) Proclaims that it is unlawful and a misdemeanor violation
for a manufacturer, as specified, to unfairly discriminate
against a dealer based on certain provisions specified in the
Act.
21) Excludes recreational vehicles, motorcycles, off-highway
motor vehicles, vehicles sold by a salvage pool, and
non-repairable vehicles as excluded from the provisions of
this bill.
22) Defines the term "area of responsibility" as it pertains
to dealer franchise agreements.
23) Declares that the consumer-related provisions of this bill
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shall become operable as of July 1, 2016, as specified.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, minor absorbable cost for the DMV to include the
disclosure statement on new certificates of ownership and bills of
sale. [Motor Vehicle Account]
COMMENTS:
1)Purpose of this bill. This bill is intended to provide a
comprehensive solution to the dangers of recalled automobiles by
requiring used car dealers to check for outstanding recalls, and
then either repair the car before transfer, if the car is the
same line-make as the dealer or if the defect is particularly
dangerous, or allow the consumer to provide informed consent and
take the unrepaired car if it is a different line-make. Rental
car companies would be prohibited from renting a vehicle if they
received notice of the recall at least 48 hours in advance.
This bill is sponsored by the California New Car Dealers
Association.
2)Substantial number of recalls announced annually. According to
the author, "[w]hile vehicles have become safer, the number of
vehicles subject to a recall has grown dramatically.?2014 saw a
new record number of recalls in the United States with more than
63.8 million recalls. This number of recalls is more than twice
as many recalls as any previous year and is equivalent to
roughly 25% of the vehicles on the road today. Officials
predict that 2015 could see another record year, as
manufacturers face potential fines from federal regulators,
threats of increased litigation, and as the issue receives
greater coverage in mainstream media."
Analysis Prepared by:
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Hank Dempsey / P. & C.P. / (916) 319-2200 FN:
0000825