AB 2107 Summary

• Extends the New Motor Vehicle Board's authority to hear protests challenging export and sale-for-resale prohibition policies until January 1, 2024 (previously set to expire January 1, 2019).

• Requires franchisors to reimburse franchisees for warranty work at the franchisee's established retail labor rate and retail parts rate, with a prescribed method for franchisees to calculate these rates based on qualified repair orders submitted no more than once per calendar year.

• Prohibits franchisors from taking adverse actions against franchisees for seeking warranty reimbursement at retail rates, including penalizing, auditing, or restricting vehicle allocations in retaliation.

• Adds new restrictions on franchisor conduct, including prohibiting restrictions on dealers' selection of digital service vendors and preventing manufacturers from requiring exclusive vendor use for facility upgrades unless providing substantial cost reimbursement.

• Removes the New Motor Vehicle Board's requirement to hear appeals of Department of Motor Vehicles licensing decisions and limits the board's jurisdiction over public disputes to those initiated by the public or with public consent.