BILL ANALYSIS Ó
AB 287
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CONCURRENCE IN SENATE AMENDMENTS
AB
287 (Gordon, et al.)
As Amended August 19, 2016
Majority vote
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|ASSEMBLY: | |(June 2, 2015) |SENATE: |39-0 |(August 23, |
| | | | | |2016) |
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(vote not relevant)
Original Committee Reference: TRANS.
SUMMARY: Enacts the Consumer Automotive Recall Safety Act
(Act), which would prohibit a dealer or car rental company from
loaning or renting a vehicle is subject to a recall until the
repair has been made.
The Senate amendments largely delete the language passed by the
Assembly, and would instead:
1)Require the warranty reimbursement schedule or formula used by
every franchisor to be reasonable with respect to the time and
compensation allowed to the franchisee for costs directly
associated with the disposal of hazardous materials that are
associated with a recall repair.
AB 287
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2)Authorize the Department of Motor Vehicles (DMV) to suspend a
dealer's license for violation of any provision of the Act, or
any rule or regulation adopted pursuant thereto.
3)Require that, no later than 48 hours after receiving notice of
a manufacturer's recall or sooner if practicable, a dealer or
rental car company with a motor vehicle fleet of 34 or fewer
loaner or rental vehicles shall not loan, rent, or offer for
loan or rent a vehicle subject to that recall until the recall
repair has been made.
4)Authorize the dealer or 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 loan or rent the vehicle after
having the repairs completed.
5)Prohibit the dealer or rental car company from loaning or
renting the vehicle until the vehicle has been repaired, once
the remedy for the vehicle becomes available to the dealer or
rental car company.
6)Require DMV to include in each vehicle registration renewal
notice the following recall disclosure statement:
NOTICE: Many vehicles have been recalled recently for needed
repairs. Did you know you can check to see if your vehicle has
an unrepaired manufacturer's safety recall? For most vehicles,
manufacturer's safety recalls are repaired for free. You can
check for any recalls and how to get the recall repaired at
www.safercar.gov.
7)Define the terms "warranty," "dealer," "manufacturer's
recall," "recall database," "recall database report," and
"rental car company."
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8)Revise the legislative findings and declarations
9)Declare that the Act does not create any legal duty upon the
dealer, rental car company, or department related to the
accuracy, errors, or omissions contained in a recall database
report or any legal duty to provide information added to a
recall database after the dealer, rental car company, or
department obtained the recall database report.
10)Declare that the rights and remedies provided by the Act are
cumulative and shall not be construed as restricting any right
or remedy that is otherwise available.
11)Declare the provisions of the Act to be severable.
12)Declare that no reimbursement is required pursuant to the
California Constitution because the only costs that may be
incurred by a local agency or school district will be incurred
because this bill creates a new crime or infraction,
eliminates a crime or infraction, changes the penalty for a
crime or infraction, or changes the definition of a crime.
13)Make other clarifying or nonsubstantive changes.
FISCAL EFFECT: According to the Senate Appropriations
Committee:
1)Likely minor one-time DMV costs, potentially as high as
$50,000, related to the printing of the recall disclosure
statement on vehicle registration renewal documents. Ongoing
administrative costs would be minor and absorbable. (Motor
Vehicle Account)
2)Potential DMV costs beginning in 2017-18 for ongoing
dealership inspections and enforcement activities. Staff
estimates any additional activities would result in minor
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costs. (Motor Vehicle Account)
COMMENTS: This bill is intended to address the danger posed by
consumers driving cars with unknown or unremedied recall notices
by requiring smaller dealers and rental car companies (those
with fleets of 34 or fewer cars) to ground automobiles with
outstanding recall notices no later than 48 hours after receipt
of notice, and either fix or temporarily repair the car before
making it available to a consumer.
Analysis Prepared by:
Hank Dempsey / P. & C.P. / (916) 319-2200 FN:
0004899