BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2502|
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THIRD READING
Bill No: AB 2502
Author: Blumenfield (D)
Amended: 8/20/12 in Senate
Vote: 21
SENATE JUDICIARY COMMITTEE : 4-0, 7/3/12
AYES: Evans, Blakeslee, Corbett, Leno
NO VOTE RECORDED: Harman
ASSEMBLY FLOOR : 76-0, 5/14/12 (Consent) - See last page
for vote
SUBJECT : Vehicles: conditional sale contracts
SOURCE : Author
DIGEST : This bill, as of July 1, 2013, revises the
automobile conditional sales contract law to allow electric
vehicle charging stations to be sold with, and financed as
part, of an automobile purchase, with a required disclosure
regarding charges.
Senate Floor Amendments of 8/20/12 clarify disclosure of
electric vehicle charging station costs. Specifically,
these amendments revise the proposed disclosure by,
instead, requiring the conditional sales contract to
contain the total amount charged for the electric vehicle
charging station. The amendments would additionally
require the seller, prior to the execution of the
conditional sales contract, to provide the buyer with a
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AB 2502
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written disclosure that includes a description and price of
each of the following: (1) electric vehicle charging
station device; (2) any materials and wiring; and (3) any
installation services included in the total charge. That
disclosure must be in a separate document, at least
12-point type, and be signed by the buyer. The amendments
also delay enactment until July 1, 2013.
ANALYSIS : Existing law, the Rees-Levering Motor Vehicle
Sales and Finance Act, sets forth numerous disclosure
requirements to be included in an automobile conditional
sale contract, including disclosures regarding finance
charges, and sets forth the permissible fees and charges in
an automobile conditional sale contract for the sale of a
motor vehicle. (Civil Code Section 2982 et seq.)
This bill:
1.Requires, as of July 1, 2013, the disclosure and
labeling, as specified, of the total amount charged by
the seller for an electric vehicle charging station,
which may include only the charges for the station
device, any materials and wiring, and any installation
services .
2.Requires a seller, as of July 1, 2013, before executing a
conditional sale contract that includes a charge for an
electric vehicle charging station, to provide the buyer
with, and obtain the buyer's signature on, a written
disclosure, in a specified manner, that includes a
description and price of the electric vehicle charging
station, any materials and wiring, and equipment
installation services included in the total charge.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: Yes
SUPPORT : (Verified 8/28/12)
Alliance of Automobile Manufacturers
California New Car Dealers Association
Coalition for Clean Air
CODA Automotive
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ARGUMENTS IN SUPPORT : According to the author:
We are at the beginning of a new era in car
technology: that of electric vehicles. Those models
currently on the market come with primary chargers
which allow the cars to plug in to a normal electric
outlet, though they require hours to fully charge the
battery. Level 2 Chargers (so-called secondary
chargers) are also available for purchase. Most of
these secondary chargers are charging stations that
can be installed in electric vehicle owner's places of
residence. They use 220 to 240V to charge the car
battery and thus, can reduce the charge time by more
than half. These secondary chargers costs upwards of
$1,000, yet cannot be financed with the car purchase
itself because they are not considered accessories
under current law. There is no place on the
conditional sales contract to document a charge for
such an item. This provides a barrier to car buyers
who are interested in purchasing an electric vehicle,
and the secondary charger along with it. Although
they can finance the car, they must find alternative
financing to purchase the secondary charger- which,
for many, is the feature that would make owning an
electric car feasible (due to reducing charging
times).
AB 2502 creates a line on the conditional sales
contract so that secondary chargers may be financed
with the vehicle. Other add on items, such as Lo-Jack
and On-Star, already can be financed with the vehicle
itself. This would be a similar such item, except it
is not installed in the vehicle itself, but rather in
the vehicle owner's residence.
ASSEMBLY FLOOR : 76-0, 5/14/12
AYES: Achadjian, Alejo, Allen, Ammiano, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Furutani, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove,
Hagman, Halderman, Hall, Harkey, Hayashi, Roger
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Hern�ndez, Hill, Huber, Hueso, Huffman, Jeffries, Jones,
Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor,
Mendoza, Miller, Mitchell, Monning, Morrell, Nestande,
Nielsen, Norby, Olsen, Pan, V. Manuel P�rez, Portantino,
Silva, Skinner, Smyth, Solorio, Swanson, Torres, Wagner,
Wieckowski, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Atkins, Fletcher, Perea, Valadao
RJG:nd 8/28/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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