BILL ANALYSIS
AB 2532
Page 1
Date of Hearing: May 4, 2010
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 2532 (Berryhill) - As Amended: April 12, 2010
SUBJECT : Consumer warranties: Automotive Consumer Notification
Act.
SUMMARY : Deletes the 10,000 pound weight restriction on
vehicles covered under the Lemon Law, and includes in the
definition of "new motor vehicle" a new commercial motor vehicle
or combination of new vehicles that require a class A, class B,
or a class C license, as specified.
EXISTING LAW :
1)Requires manufacturers of consumer goods sold in this state,
including motor vehicles, to maintain sufficient service and
repair facilities to carry out the terms of its express
warranties. If a manufacturer or its representative is unable
to service or repair a new motor vehicle to conform to the
applicable express warranties after a reasonable number of
attempts, the manufacturer must either promptly replace the
vehicle or make restitution to the buyer, at the buyer's
option.
2)Defines "new motor vehicle" for the purposes of this bill as
including, among other things, a new motor vehicle with a
gross vehicle weight under 10,000 pounds that is bought or
used primarily for business purposes by a person, including a
partnership, limited liability company, corporation,
association, or any other legal entity, to which not more than
five motor vehicles are registered in this state.
3)Requires the manufacturer to retitle specified defective
vehicles in its name, request the Department of Motor Vehicles
to inscribe the ownership certificate with the notation "Lemon
Law Buyback," affix a specified decal to the left doorframe of
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the vehicle, deliver a specified notice to the transferee of
the vehicle as prescribed, and obtain the transferee's
acknowledgment.
FISCAL EFFECT : Unknown. This bill is keyed non-fiscal.
COMMENTS :
Purpose of this bill . According to the author's office, "The
Tanner Consumer Protection Act only defines new motor vehicles
as those under 10,000 pounds, thus exempting tractor-trailers
from the provisions of the California "Lemon Law." However, due
to the new on-road diesel regulations imposed by the Air
Resources Board pursuant to AB 32 (Nunez and Pavley), Chapter
488, Statutes of 2006, truck drivers and owners across the state
are experiencing serious problems with the new engines designed
to meet these new standards.
"It is unfair to ask individual consumers and small businesses
to bear the sole burden of paying for the defects in these new
engines. By including all new motor vehicles, regardless of
weight, in the Tanner Consumer Protection Act, this bill is
designed to simply require engine and vehicle manufacturers to
stand behind their product; no different than what the authors
of the original Lemon Law proposed."
Background . The Tanner Consumer Protection Act, also known as
"the Lemon Law" presumes that a vehicle is a "lemon" if the
following criteria are met within 18 months of delivery to the
buyer or lessee or 18,000 miles on the vehicle's odometer,
whichever comes first:
1)The manufacturer or its agents have made four or more attempts
to repair the same warranty problem, or the vehicle has been
out of service for more than 30 days (not necessarily all at
the same time) while being repaired for any number of warranty
problems; or,
2)The manufacturer or its agents have made two or more attempts
to repair a warranty problem that results in a condition that
is likely to cause death or serious bodily injury if the
vehicle is driven; and,
3)The problems are covered by the warranty, substantially reduce
the vehicle's use, value, or safety to the consumer and are
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not caused by abuse of the vehicle; and,
1)If required by the warranty materials or by the owner's
manual, the consumer has directly notified the manufacturer
about the problem(s), preferably in writing. The notice must
be sent to the address shown in the warranty or owner's
manual.
If these criteria are met, the Lemon Law presumes the buyer or
lessee is entitled to a replacement vehicle or a refund of the
purchase price. However, the manufacturer may show that the
criteria have not been met (for example, because the problems
are minor) and therefore, the buyer or lessee is not entitled to
a replacement vehicle or refund.
SB 1718 (Sher), Chapter 679, Statutes of 2000, limited the
definition of "new motor vehicle" to a new motor vehicle with a
gross vehicle weight under 10,000 pounds due to concerns from
manufacturers. Most heavy trucks and commercial vehicles exceed
this amount. Gross vehicle weight (GVW) is the weight that
equals the total unladen weight of the vehicle plus the heaviest
load that will be transported on the vehicle.
Previous legislation . SB 1718 (Sher), Chapter 679, Statutes of
2000, limited the definition of "new motor vehicle" to a new
motor vehicle with a GVW under 10,000 pounds.
AB 1290 (Davis), Chapter 448, Statutes of 1999, expanded the
Lemon Law presumption period from 12 months or 12,000 miles,
whichever occurs first, to 18 months or 18,000 miles, whichever
occurs first.
AB 1848 (Davis), Chapter 352, Statutes of 1998, expanded the
Lemon Law to include up to five vehicles per registered owner
used for both business and personal purposes.
REGISTERED SUPPORT / OPPOSITION :
Support
California Trucking Association
Consumers for Auto Reliability and Safety
Opposition
AB 2532
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None on file.
Analysis Prepared by : Sarah Weaver / B.,P. & C.P. / (916)
319-3301