BILL ANALYSIS �
AB 2042
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ASSEMBLY THIRD READING
AB 2042 (Levine)
As Amended May 23, 2014
Majority vote
JUDICIARY 6-3 APPROPRIATIONS 12-5
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|Ayes:|Wieckowski, Chau, |Ayes:|Gatto, Bocanegra, |
| |Dickinson, Garcia, | |Bradford, |
| |Muratsuchi, Stone | |Ian Calderon, Campos, |
| | | |Eggman, Gomez, Holden, |
| | | |Pan, Quirk, |
| | | |Ridley-Thomas, Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Wagner, Gorell, |Nays:|Bigelow, Donnelly, Jones, |
| |Maienschein | |Linder, Wagner |
| | | | |
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SUMMARY : Simply restates existing law by allowing a contract
for the lease of a zero emission vehicle (ZEV) to contain the
option for the lessee to purchase the vehicle at the end of the
lease term if that lease was counted by the manufacturer towards
meeting the requirements of the California Air Resources Board's
(ARB) ZEV Program.
EXISTING LAW , under the Vehicle Leasing Act, specifies
requirements for contracts for leases of motor vehicles. Among
other things, the Act:
1)Requires that lease contracts be in writing and conform to
particular format restrictions, defines required provisions
particular to leases of used vehicles, and declares that any
person who knowingly and willfully violates any provision of
the chapter is guilty of a misdemeanor.
2)Allows a lessee to terminate a vehicle lease at any time prior
to the expiration date.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, negligible fiscal impact.
COMMENTS : This measure seeks to reiterate existing law under
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the state's Vehicle Leasing Act. Leasing electric vehicles is
one way in which many motor vehicle manufacturers fulfill ARB
zero emission requirements which require that a certain
percentage of vehicles leased or sold by manufacturers in
California be ZEVs.
In March of 2012 Governor Brown signed Executive Order B-16-2012
(the Order) declaring that California should encourage the
development and success of ZEVs to protect the environment,
stimulate economic growth and improve the quality of life in the
State. The Order states that the State should support and
encourage car manufacturers' plans to build and affordably sell
tens of thousands of zero-emission vehicles in California in the
coming years and directs state agencies to support and
facilitate the rapid commercialization of ZEVs, with a target of
having 1 million ZEVs on California roadways by 2020 and 1.5
million ZEVs by 2025.
In 1990 the ARB first adopted regulations establishing its ZEV
Program. The ZEV Program required large manufacturers of motor
vehicles to produce a certain amount of ZEVs based on a
percentage of the overall number of vehicles that each
manufacturer makes for sale in California, among other factors.
At that time, the Board required that in 1998, 2% of the
vehicles that large manufacturers produced for sale in
California had to be ZEVs, increasing to 5% in 2001 and 10% in
2003. The vehicle production percentages and standards set up
by the regulation have been modified several times since their
1990 introduction, but the ZEV mandate remains in place.
As amended most recently, this measure now simply restates
existing law by allowing a contract for the lease of a ZEV to
contain the option for the lessee to purchase the vehicle at the
end of the lease term if that lease was counted by the
manufacturer towards meeting the requirements of the ARB's ZEV
Program.
Analysis Prepared by : Drew Liebert / JUD. / (916) 319-2334
FN: 0003800
AB 2042
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