Alex Padilla
- Democratic
Author
(1) Existing law makes it a violation of the Vehicle Code for the holder of a vehicle dealer's license to commit specified actions, including, among other things, to advertise for sale, sell, or purchase for resale a new vehicle of a line-make for which the dealer does not hold a franchise. Existing law also lists various exceptions to this requirement. This bill would expand the list of existing exceptions to also include a vehicle acquired in the ordinary course of business as a new vehicle by a dealer franchised to sell that vehicle if specified conditions are met, including if the manufacturer or distributor of the vehicle files a bankruptcy petition. (2) 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 prohibit a manufacturer, manufacturer branch, distributor, or distributor branch from preventing, or attempting to prevent, by contract or otherwise, a dealer from acquiring, adding, or maintaining a sales or service operation for another line-make of motor vehicles at the same or expanded facility at which the dealer currently operates a dealership if the dealer complies with any reasonable facilities and capital requirements of the manufacturer or distributor or from requiring a dealer to establish or maintain exclusive facilities, personnel, or display space if the imposition of the requirement would be unreasonable in light of all existing circumstances, including economic conditions. In any proceeding under these provisions in which the reasonableness of a facility requirement is an issue, the manufacturer or distributor would have the burden of proof. The bill would also prohibit additional specified unlawful acts by a manufacturer, manufacturer branch, distributor, or distributor branch against a dealer. (3) Under existing law, a violation of the above provisions relating to occupational licensing and business regulations in the Vehicle Code is a misdemeanor. Because this bill would create a new crime, it would impose a state-mandated local program. (4) 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. (5) This bill would declare that it is to take effect immediately as an urgency statute.
Chaptered by Secretary of State. Chapter 12, Statutes of 2009.
Approved by Governor.
Enrolled. To Governor at 11 a.m.
Senate concurs in Assembly amendments. (Ayes 38. Noes 0. Page 1373.) To enrollment.
Read third time. Urgency clause adopted. Passed. (Ayes 72. Noes 0. Page 2175.) To Senate.
In Senate. To unfinished business.
Read second time. To Consent Calendar.
Read second time. Amended. To second reading.
From committee: Do pass as amended. To Consent Calendar. (Ayes 14. Noes 0.)
(Heard in committee on June 11.)
Joint Rule 62(a) file notice (Com. on APPR.) suspended. (Page 2115.)
(Heard in committee on May 21.)
From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 9. Noes 0.) Re-referred to Com. on APPR.
From committee with author's amendments. Read second time. Amended. Re-referred to Com. on TRANS.
From committee with author's amendments. Read second time. Amended. Re-referred to Com. on TRANS.
To Coms. on TRANS. and JUD.
In Assembly. Read first time. Held at Desk.
Read third time. Urgency clause adopted. Passed. (Ayes 35. Noes 0. Page 797.) To Assembly.
To Special Consent Calendar.
Read second time. To third reading.
From committee: Be placed on second reading file pursuant to Senate Rule 28.8.
Set for hearing April 27.
From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 10. Noes 0. Page 499.) Re-referred to Com. on APPR.
From committee with author's amendments. Read second time. Amended. Re-referred to Com. on T. & H.
Set for hearing April 14.
To Com. on T. & H.
From print. May be acted upon on or after March 28.
Introduced. Read first time. To Com. on RLS. for assignment. To print.
| Bill Text Versions | Format |
|---|---|
| SB424 | HTML |
| 02/26/09 - Introduced | |
| 04/02/09 - Amended Senate | |
| 05/12/09 - Amended Assembly | |
| 05/18/09 - Amended Assembly | |
| 06/15/09 - Amended Assembly | |
| 06/22/09 - Enrolled | |
| 07/02/09 - Chaptered |
| Document | Format |
|---|---|
| No related documents. |
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