BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 287 (Gordon) - Vehicle safety: recalls ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: August 2, 2016 |Policy Vote: T. & H. 11 - 0, | | | JUD. 7 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 11, 2016 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- *********** ANALYSIS ADDENDUM - SUSPENSE FILE *********** The following information is revised to reflect amendments adopted by the committee on August 11, 2016 Bill Summary: AB 287 would require the Department of Motor Vehicles (DMV) to notify vehicle owners on their registration renewal notices if a vehicle is subject to a manufacturer's recall, as specified. The bill would also prohibit a dealer or car rental company from loaning or renting a vehicle is subject to a recall until the repair has been made. Fiscal Impact: Unknown one-time DMV costs, potentially in the range of $75,000 to $150,000, to contract with an outside entity to AB 287 (Gordon) Page 1 of ? provide vehicle recall database reports for vehicles subject to registration renewal. (Motor Vehicle Account) One-time DMV programming costs of approximately $125,000 to make IT changes to the vehicle registration database systems to provide for the vehicle recall disclosure. Timing of the programming would depend upon when the DMV declares that it has access to a recall database and funding available to provide the disclosure on vehicle registration renewals. (Motor Vehicle Account) Ongoing DMV costs of approximately $580,000 for field office and call center staff time to respond to inquiries about the recall notices, assuming a small percentage of the 4.5 - 5 million registration renewal customers request additional information. Potential DMV costs beginning in 2017-18 for ongoing dealership inspections and enforcement activities. Staff estimates any additional activities would result in minor costs. (Motor Vehicle Account) Author Amendments: Add a provision that authorizes DMV to suspend a dealer's license for failure to comply with the bill (applies to provisions that prohibit a dealer from loaning or renting a vehicle subject to a recall). Specify that the prohibition against dealers and rental car companies from renting or loaning a vehicle subject to a recall only applies to dealers or companies with a fleet of 34 or fewer loaner or rental vehicles. Revise the language that DMV would include on registration renewal documents. Delete the delayed operative date of July 1, 2017. Make a clarifying change. -- END -- AB 287 (Gordon) Page 2 of ?