AB 1237

Bill Subjects

Abstract

(1) Existing law generally requires a manufacturer, manufacturer branch, remanufacturer, remanufacturer branch, distributor, distributor branch, transporter, or dealer of vehicles to be licensed by the Department of Motor Vehicles. Under existing law, it is unlawful for a manufacturer, manufacturer branch, distributor, or distributor branch to, among other things, dishonor a warranty, rebate, or other incentive offered to the public or a dealer, as specified, or to unfairly discriminate in favor of a dealership owned or controlled, in whole or part, by a manufacturer or an entity that controls or is controlled by a manufacturer or distributor. This bill would make it unlawful for a manufacturer, manufacturer branch, distributor, or distributor branch, after written demand, to fail to repurchase a noncompliant new motorcycle, all-terrain vehicle, or item of related merchandise originally purchased by a franchisee from the manufacturer or from another franchisee. The bill would require that the repurchase price be the original dealer cost charged by the manufacturer or distributor plus any charges made by the manufacturer or distributor for vehicle distribution or delivery and the cost of any dealer-installed original equipment. The bill would provide that these provisions would not apply to products originally delivered by the manufacturer or distributor to a dealer more than 24 months prior to the repurchase demand. (2) Under existing law, a violation of the above provisions relating to occupational licensing and business regulations in the Vehicle Code is a misdemeanor. Because the bill would create a new crime, it would impose a state-mandated local program. (3) 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.