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CA AB179

Bill

Status

Passed

10/12/2019

Primary Sponsor

Eloise Reyes

Click for details

Origin

State Assembly

2019-2020 Session

AI Summary

  • Restores authority of New Motor Vehicle Board to hear protests by dealer associations challenging manufacturer export and sale-for-resale prohibition policies until January 1, 2030, with relief limited to declarations of policy illegality.

  • Requires franchisors to reimburse franchisees for warranty work using the franchisee's established retail labor rate and retail parts rate, with procedures for franchisees to calculate and modify rates based on qualified repair orders.

  • Prohibits franchisors from taking adverse actions against dealers for seeking warranty reimbursement at retail rates, including penalizing, limiting vehicle allocations, or conducting retaliatory audits.

  • Expands unlawful franchisor practices to include restricting dealer selection of digital service vendors and requiring indemnification for franchisor policy implementation by dealers.

  • Establishes New Motor Vehicle Board authority to resolve disputes regarding warranty reimbursement rate calculations and performance standard reasonableness, with burden of proof on franchisors.

Legislative Description

New Motor Vehicle Board.

Last Action

Chaptered by Secretary of State - Chapter 796, Statutes of 2019.

10/12/2019

Committee Referrals

Appropriations7/10/2019
Judiciary6/25/2019
Transportation6/6/2019
Rules5/29/2019
Appropriations4/23/2019
Transportation1/24/2019

Full Bill Text

No bill text available