BILL ANALYSIS �
AB 2502
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2502 (Blumenfield)
As Amended August 24, 2012
2/3 vote. Urgency
-----------------------------------------------------------------
|ASSEMBLY: |76-0 |(May 14, 2012) |SENATE: |37-0 |(August 31, |
| | | | | |2012) |
-----------------------------------------------------------------
Original Committee Reference: TRANS.
SUMMARY : Revises the automobile conditional sales contract law.
Specifically, this bill adds a required disclosure regarding
charges that must be itemized with respect to an automobile
conditional sales contract to show any charge for an electric
vehicle charging station.
The Senate amendments are technical and clarifying.
EXISTING LAW imposes various licensing and regulatory
requirements on dealers of motor vehicles and requires that
certain fees and charges be disclosed in a conditional sales
contract for the purchase of a motor vehicle.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version approved by the Senate.
FISCAL EFFECT : According to the Senate Appropriations
Committee:
1)Ongoing court costs for increased misdemeanor filings
potentially in the range of $24,000 to $48,000 (General Fund)
for 50 to 100 additional filings per year.
2)Minor, absorbable costs to the Department of Motor Vehicles
(DMV) for potential enforcement-related activities.
3)While the impact of this bill independently on local jails is
likely minor, the cumulative effect of increasing the number
of misdemeanors filed could create General Fund cost pressure
on capital outlay, staffing, programming, the courts, and
other resources in the context of recently enacted 2011 Public
Safety Realignment.
AB 2502
Page 2
COMMENTS : The author explains the reason for the bill as
follows:
After years of development, we are on the exciting
forefront of a new technology: electric vehicles.
California has a goal that by 2025 zero-emission electric
or plug-in hybrid vehicles will account for 15 percent, or
one in seven, new cars sold in California.
For decades, the challenge has been to develop a battery
that can provide a long driving time and also be charged
quickly. Electric vehicles are currently sold with primary
chargers which can require up to 20 hours to fully charge
the battery. However, drivers can also purchase a
secondary charger called a "Level 2 Charger" which can cut
the charge time by more than half.
State law governs which accessories may be financed with a
car's purchase price. Unfortunately, current law does not
allow these Level 2 Chargers to be financed with the car.
As Level 2 Chargers cost more than $1,000, this provides a
significant barrier to purchasing not only a Level 2
Charger, but an electric vehicle itself. Without a
secondary charger, the consumer will have to deal with
significantly longer charging times which may make owning
an electric vehicle impractical. AB 2502 addresses this
problem by allowing consumers to finance the Level 2
Charger and electric vehicle together, in one transaction-
making it easier for Californians to own these vehicles.
According to supporters, electric vehicles currently on the
market come with primary chargers which allow the cars to plug
in to a normal electric outlet, which 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 the car owner's place of residence. These secondary chargers
use 220 to 240V to charge the car battery and thus, can reduce
the charge time by more than half. There is no place on the
conditional sales contract to document a charge for such an
item. Supporters believe this provides a barrier to car buyers
who are interested in purchasing an electric vehicle, and the
secondary charger along with it. Although the buyer can finance
the price of the car, they must find alternative financing to
purchase the secondary charger - which, for many, is the feature
AB 2502
Page 3
that would make owning an electric car feasible (due to reducing
charging times). The author states that car manufacturers do
not, themselves, manufacture Level 2 chargers. They instead
partner with third party businesses and recommend that
purchasers of their electric vehicles purchase Level 2 chargers
from specific vendors.
As the foregoing makes clear, secondary Level 2 chargers are
neither necessary for the operation of electric vehicles, nor
are they a component of the vehicle itself. They are a separate
product sold by a variety of electrical equipment manufacturers,
not unlike other after-market additions such as fuel or
performance enhancement equipment, that some buyers may wish to
purchase for their convenience and enjoyment. What makes
electric vehicle charging stations unique for the purposes of
the conditional sales contract, however, is that they are a
separate electrical appliance that is typically installed in the
buyer's home, usually by an electrician.
Analysis Prepared by : Kevin G. Baker / JUD. / (916) 319-2334
FN: 0005866