BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 642
                                                                  Page  1

          Date of Hearing:   August 17, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    SB 642 (Padilla) - As Amended:  July 13, 2011 

          Policy Committee:                             JudiciaryVote:8-2
                       Transportation                         10-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill: 

          1)Prohibits the waiver, whether by coercion or voluntarily, of a 
            dealer's right to protest actions, such as termination of 
            franchise, to the New Motor Vehicle Board (NMVB).

          2)Allows temporary manufacturer-ownership of an auto dealership 
            only under limited circumstances and prohibits a manufacturer 
            from taking certain actions preferable to a manufacturer-owned 
            dealership.  

          3)Prohibits manufacturers from discriminating against franchised 
            dealers for selling certain products and services not approved 
            by the manufacturer.

           FISCAL EFFECT  

          Minor, absorbable costs to the Department of Motor Vehicles 
          (DMV), which administers the NMVB a quasi-judicial program to 
          resolve disputes between franchised dealers and manufacturers 
          and distributors of new motor vehicles, including automobiles, 
          recreational vehicles, motorcycles, all-terrain vehicles, heavy 
          trucks and buses. 

           COMMENTS  

           Rationale  .  The author intends this bill to prevent a dealer 
          franchise owner from being coerced by manufacturers into 
          negotiating away their right to appeal disputes to the NMVB and 
          to prevent manufacturers from engaging in practices that 








                                                                  SB 642
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          unfairly discriminate against franchise dealers.

           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081