BILL ANALYSIS �
AB 988
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 988 (Jones)
As Amended June 15, 2014
Majority vote
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|ASSEMBLY: |75-1 |(May 29, 2013) |SENATE: |34-2 |(August 7, |
| | | | | |2014) |
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Original Committee Reference: TRANS.
SUMMARY : Makes dealers of recreational off-highway vehicles
(ROHVs) and utility-terrain vehicles (UTVs) subject to New Motor
Vehicle Board (NMVB) licensing requirements and excludes dealers
who only sell all-terrain vehicles (ATVs) from appointment to
NMVB.
The Senate amendments achieve the effect of earlier versions of
this bill (adding ROHVs under the Department of Motor Vehicles'
(DMV's) jurisdiction) but instead of making them a separate and
distinct class of vehicle (which would result in DMV programming
costs), the Senate amendments instead include ROHVs and UTVs
under the definition of ATVs since ATV licensing requirements
are already established. Further, to achieve full
representation on this NMVB, this bill also excludes dealers who
sell only ATVs from being appointed to the NMVB.
EXISTING LAW :
1)Defines an ROHV as a motor vehicle designed by the
manufacturer for operation primarily off-highway that has a
steering wheel, non-straddle seating, maximum speed capability
greater than 30 miles per hour (mph), and engine displacement
equal to or less than 1,000 cubic centimeters (cc).
2)Authorizes dealers, distributors, franchisees, franchisors,
new motor vehicle dealers, and vehicle manufacturers to make,
distribute, and sell a variety of vehicle types including
off-highway motorcycles, and ATVs.
3)Establishes the nine-member NMVB within the DMV.
4)Authorizes the NMVB to settle disputes between franchisors and
franchisees in the new vehicle industry.
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5)Authorizes the NMBV to provide a Consumer Mediation Services
Program for dispute resolution by consumers against a new
vehicle dealership, manufacturer, or distributor licensed to
do business in California.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : The NMVB was created in 1967 as the New Car Dealers
Policy and Appeals Board (Board). At that time, the Board's
function was limited to hearing appeals from final decisions by
the Director of DMV that were adverse to the occupational
license of new motor vehicle dealers, manufacturers,
distributors, or representatives. In 1973, the Legislature
passed the California Automobile Franchise Act, renaming the
Board the NMVB and creating a broad statutory framework for
regulating and settling disputes in the new vehicle industry.
The NMVB operates in a quasi-judicial capacity to resolve
disputes between franchised dealers and
manufacturers/distributors of new motor vehicles (including
motorcycles and recreational vehicles). The NMVB also provides
consumer mediation services that attempts, through informal
mediation, to resolve disputes between consumers and new motor
vehicle dealers and/or manufacturers or distributors.
Prior to the passage of AB 1595 (Cook), Chapter 165, Statutes of
2012, ROHVs were considered to be a form of ATV, despite the
fact that there are inherent differences in how the vehicles are
designed, configured, and operated. AB 1595 distinguished ROHVs
as a separate and distinct category of vehicle and established
laws to govern their safe operation. As defined in AB 1595,
ROHVs are vehicles that are used primarily for off-highway
operation, have a steering wheel, non-straddle seating provided
by the manufacture for the operator and all passengers, a
maximum speed capability of greater than 30 mph, and an engine
displacement equal to or less than 1,000 cc (61 ci).
By distinguishing ROHVs as a separate class of vehicle from
motorcycles or ATVs, it became unclear whether or not ROHVs
would continue to fall under the jurisdiction of the NMVB.
Therefore, the author introduced this bill to clarify that ROHVs
would continue to be subject to the jurisdiction of the NMVB, as
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they were up until 2012, so that ROHV buyers would be able to
continue to take advantage of the NMVB's consumer arbitration
program and ROHV manufacturers and dealers would continue to use
the NMVB as a means to settle disputes.
Earlier version of this bill accomplished this by describing
ROHV's in the Vehicle Code as a separate and distinct class of
vehicle. In doing so, however, it created costs for DMV since
ROHV dealers, manufacturers, and distributors would need to be
separately licensed. To address cost, this bill was amended to
add ROHVs and UTVs under the definition of ATVs-- which
eliminated the need to establish separate dealer licensing.
Additionally, to ensure representation of all motor vehicle
types on NMVB, this bill also requires that dealers who sit on
NMVB cannot exclusively sell ATV's.
Recent legislation: AB 1595 defined recreational off-highway
vehicles and prescribed safety regulations for their use.
AB 1266 (Nielsen), Chapter 529, Statutes of 2012, delayed the
effective date of seating restrictions provided in AB 1595.
Analysis Prepared by : Victoria Alvarez / TRANS. / (916) 319-
2093
FN: 0004175