AB 2107: New Motor Vehicle Board.

Existing law establishes the New Motor Vehicle Board in the Department of Motor Vehicles, and requires the board to hear and decide certain protests presented by a motor vehicle franchisee in regard to a dispute with the vehicle manufacturer. Existing law, until January 1, 2019, authorizes the board to hear protests by an association challenging the legality of an export or sale-for-resale prohibition policy of a manufacturer, manufacturer branch, distributor, or distributor branch and establishes procedures for hearing those protests, as specified.

This bill would extend the operation of the provisions authorizing the board to hear these protests and establishing the hearing procedures until January 1, 2024.

Existing law requires the board to hear an appeal filed by a new motor vehicle dealer, manufacturer, manufacturer branch, distributor, or distributor branch licensee or applicant of a decision by the department.

This bill would remove this requirement for the board to hear those appeals, and would repeal applicable provisions.

Existing law authorizes the board, under specified circumstances, to mediate, arbitrate, or otherwise resolve certain disputes between a member of the public and a new motor vehicle dealer, manufacturer, manufacturer branch, distributor, distributor branch, or representative.

This bill would authorize the board to hear those disputes only if they are brought by the member of the public or the member of the public consents to the jurisdiction of the board.

Existing law requires a franchisor to fairly compensate for labor and parts used to fulfill warranty obligations.

This bill would instead require a franchisor to reimburse a franchisee according to a retail labor rate and retail parts rate established by each franchisee. The bill would prescribe the method by which a franchisee may establish or alter those reimbursement rates and would require the board to resolve any disputes regarding the calculation of those rates. The bill would prohibit specified actions by a franchisor related to the establishment of those reimbursement rates.

Existing law prohibits a licensed manufacturer, manufacturer branch, distributor, distributor branch, or affiliate from engaging in specified proscribed business practices. A violation of these provisions is a misdemeanor.

This bill would prohibit additional acts, including making it unlawful for these entities to restrict dealers from selecting certain vendors of their choice, as specified. Because a violation of these new provisions would be punishable as a crime, the bill would impose a state-mandated local program.

The bill includes legislative findings and declarations and would make other conforming changes.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.