BILL ANALYSIS Ó
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: AB 759 Hearing Date: 7/14/2015
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|Author: |Linder |
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|Version: |3/26/2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Randy Chinn |
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SUBJECT: Recreational vehicles
DIGEST: This bill authorizes RV dealers whose franchises have
been terminated to continue to sell any new RV inventory that
was purchased by the dealer prior to the termination.
ANALYSIS:
Existing law:
1)Establishes the New Motor Vehicle Board (NMVB), which is
responsible for resolving disputes between franchised dealers
and manufacturers of new motor vehicles, including motorcycles
and recreational vehicles (RVs).
2)Prohibits RV dealers from selling new RVs without a franchise
from the RV manufacturer.
This bill:
1)Makes a number of technical changes to the statutes dealing
with the NMVB, including the creation of separate parallel and
nearly identical code sections for RV dealers and auto
dealers.
2)Authorizes RV dealers whose franchises have been terminated to
continue to sell any new RV inventory that was purchased by
the dealer prior to the termination.
AB 759 (Linder) Page 2 of ?
COMMENTS:
1)Purpose of the bill. According to the author, inconsistent
and misleading language has crept into the NMVB code sections
over the years. This bill is intended to provide technical
and clarifying changes to the statutes. In addition, the bill
authorizes RV dealers to sell their remaining inventory after
a franchise agreement has ended, a common industry practice.
The bill is sponsored by the Recreational Vehicle Industry
Association and the California Recreational Vehicle Dealers
Association. Many of the technical amendments were proposed
by the NMVB.
2)Background. The NMVB is a small organization with 13
positions proposed for FY 2015-2016. Contrary to its name,
the NMVB deals primarily with franchise dealer/manufacturer
disputes, though as a secondary duty they offer a non-binding
mediation service between consumers and new-car dealers and
manufacturers. The NMVB does not have the authority to
enforce California's lemon law.
3)What's new? The one substantial provision in the bill
authorizes RV dealers who have lost their franchises to sell
any new RVs in their inventory as new. Because RV dealers own
their inventory, if their franchises are lost that inventory
would have to be sold as used, resulting in a loss to the
dealers, according to the sponsors. Current law is apparently
more honored in the breach than the observance under current
practice. This bill legitimizes that practice.
Assembly Votes
Floor: 77-0
Appr: 17-0
Trans: 15-0
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes
Local: Yes
POSITIONS: (Communicated to the committee before noon on
Wednesday,
July 8, 2015.)
SUPPORT:
AB 759 (Linder) Page 3 of ?
California Recreational Vehicle Dealers Association (co-sponsor)
Recreational Vehicle Industry Association (co-sponsor)
OPPOSITION:
None received
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