BILL ANALYSIS                                                                                                                                                                                                    Ó






           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                        AB 759|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 


                                   THIRD READING 


          Bill No:  AB 759
          Author:   Linder (R)
          Amended:  8/31/15 in Senate
          Vote:     21  

           SENATE TRANS. & HOUSING COMMITTEE:  11-0, 7/14/15
           AYES:  Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva,  
            McGuire, Mendoza, Roth, Wieckowski

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  77-0, 4/30/15 (Consent) - See last page for  
            vote

           SUBJECT:   Recreational vehicles


          SOURCE:   Recreational Vehicle Industry Association
                    California Recreational Vehicle Dealers Association

          
          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.

          Senate Floor Amendments of 8/31/15 correct cross-referencing and  
          other technical errors.

          ANALYSIS:   


          Existing law: 









                                                                     AB 759  
                                                                    Page  2


          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.

          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  







                                                                     AB 759  
                                                                    Page  3


            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.
          
          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes


          SUPPORT:   (Verified9/1/15)


          Recreational Vehicle Industry Association (co-source)
          California Recreational Vehicle Dealers Association (co-source)


          OPPOSITION:   (Verified9/1/15)


          None received

          ASSEMBLY FLOOR:  77-0, 4/30/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau,  
            Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd,  
            Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia,  
            Eduardo Garcia, Gatto, Gipson, Gonzalez, Gordon, Gray, Grove,  
            Hadley, Harper, Roger Hernández, Holden, Irwin, Jones,  
            Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  
            Wilk, Williams, Wood, Atkins
          NO VOTE RECORDED:  Campos, Chávez, Gomez

          Prepared by:Randy Chinn / T. & H. / (916) 651-4121
          9/1/15 20:29:50


                                   ****  END  ****


          







                                                                     AB 759 
                                                                    Page  4