BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 287 (Gordon) - Vehicle safety: recalls
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|Version: August 2, 2016 |Policy Vote: T. & H. 11 - 0, |
| | JUD. 7 - 0 |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: August 11, 2016 |Consultant: Mark McKenzie |
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*********** 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
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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.
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