California 2009-2010 Regular Session Status: To Executive 1 D cosponsors

SB 424 — Vehicles: manufacturers and distributors.

Last action — Chaptered by Secretary of State. Chapter 12, Statutes of 2009.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2009-2010 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

(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.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 12, Statutes of 2009.

  2. Approved by Governor.

  3. Enrolled. To Governor at 11 a.m.

  4. Senate concurs in Assembly amendments. (Ayes 38. Noes 0. Page 1373.) To enrollment.

  5. In Senate. To unfinished business.

  6. Read third time. Urgency clause adopted. Passed. (Ayes 72. Noes 0. Page 2175.) To Senate.

  7. Read second time. To Consent Calendar.

  8. Read second time. Amended. To second reading.

  9. (Heard in committee on June 11.)

  10. From committee: Do pass as amended. To Consent Calendar. (Ayes 14. Noes 0.)

  11. Joint Rule 62(a) file notice (Com. on APPR.) suspended. (Page 2115.)

  12. (Heard in committee on May 21.)

  13. From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 9. Noes 0.) Re-referred to Com. on APPR.

  14. From committee with author's amendments. Read second time. Amended. Re-referred to Com. on TRANS.

  15. From committee with author's amendments. Read second time. Amended. Re-referred to Com. on TRANS.

  16. To Coms. on TRANS. and JUD.

  17. In Assembly. Read first time. Held at Desk.

  18. Read third time. Urgency clause adopted. Passed. (Ayes 35. Noes 0. Page 797.) To Assembly.

  19. To Special Consent Calendar.

  20. Read second time. To third reading.

  21. From committee: Be placed on second reading file pursuant to Senate Rule 28.8.

  22. Set for hearing April 27.

  23. 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.

  24. From committee with author's amendments. Read second time. Amended. Re-referred to Com. on T. & H.

  25. Set for hearing April 14.

  26. To Com. on T. & H.

  27. From print. May be acted upon on or after March 28.

  28. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Stephen C. Padilla · Primary
  • Eng · Cosponsor
  • Florez · Cosponsor
  • Fuentes · Cosponsor
  • Harman · Cosponsor
  • Solorio · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 5 co-sponsors · 116 not signed on

Sponsors (1)

Co-sponsors (5)

  • Eng
  • Florez
  • Fuentes
  • Harman
  • Solorio

Not signed on (116)

116 members have not signed on to this bill.

Show all 116 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Unfinished Business SB424 Padilla Concurrence

Passed 39 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 36002
Democratic 2000
Republican 1000
Total 39002
% of votes cast 95%0%0%5%
How each member voted (41)
Member Party Vote
Yee — Not Voting
Hancock — Yea
Cedillo — Yea
Cogdill — Yea
Lowenthal — Yea
Negrete — Yea
Runner — Yea
Corbett — Yea
Hollingsworth — Yea
Huff — Yea
Ducheny — Yea
Dutton — Yea
Leno — Yea
Liu — Yea
Maldonado — Yea
McLeod — Yea
Oropeza — Not Voting
Pavley — Yea
Price — Yea
Ashburn — Yea
Benoit — Yea
Romero — Yea
Simitian — Yea
Wiggins — Yea
Wolk — Yea
Wright — Yea
Aanestad — Yea
Alquist — Yea
Harman — Yea
Kehoe — Yea
Steinberg — Yea
Walters — Yea
Wyland — Yea
Correa — Yea
Cox — Yea
DeSaulnier — Yea
Denham — Yea
Florez — Yea
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Yea

Official roll call →

SB 424 Padilla Consent Calendar Second Day

Passed 80 Yea · 0 Nay · 11 Other
Party YeaNayPresentNot Voting
Democratic 2001
Unaffiliated 750010
Republican 3000
Total 800011
% of votes cast 88%0%0%12%
How each member voted (91)
Member Party Vote
Bill — Yea
Tom — Yea
Ammiano — Yea
Beall — Yea
Eng — Yea
Evans — Yea
Fuentes — Yea
Fuller — Yea
Galgiani — Yea
Garrick — Yea
Hagman — Yea
Hall — Yea
Hayashi — Yea
Hernandez — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Hill — Yea
Huffman — Yea
Yamada — Yea
Fletcher — Yea
Fong — Yea
V. — Yea
Manuel — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
Audra — Yea
Carter — Yea
Charles — Not Voting
Chesbro — Yea
Conway — Yea
Cook — Yea
Coto — Yea
Davis — Yea
DeVore — Yea
Duvall — Yea
Jeffries — Yea
Krekorian — Yea
Lieu — Not Voting
Mendoza — Yea
Miller — Yea
Monning — Yea
Nava — Yea
Ruskin — Yea
Silva — Yea
Smyth — Yea
Swanson — Yea
Torres — Yea
Torrico — Yea
Bonnie — Not Voting
Lowenthal — Not Voting
John — Not Voting
A. — Not Voting
Perez — Not Voting
Tran — Not Voting
Adams — Yea
Anderson — Yea
Bass — Yea
Blakeslee — Yea
Block — Yea
Blumenfield — Yea
Brownley — Yea
Buchanan — Yea
Harkey — Yea
Huber — Yea
Knight — Yea
Logue — Not Voting
Ma — Yea
Nestande — Yea
Nielsen — Yea
Skinner — Yea
Solorio — Not Voting
Torlakson — Yea
Villines — Yea
Emmerson — Yea
Feuer — Yea
Furutani — Yea
Gilmore — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Bill Berryhill — Yea
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Not Voting
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Yea
Strickland, Tony Republican Yea

Official roll call →

Do pass as amended, to Consent Calendar.

Passed 18 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 17002
Republican 1000
Democratic 0001
Total 18003
% of votes cast 86%0%0%14%
How each member voted (21)
Member Party Vote
Hall — Yea
De — Yea
Leon — Yea
John — Yea
A. — Yea
Perez — Yea
Audra — Yea
Charles — Not Voting
Fuentes — Yea
Coto — Yea
Harkey — Yea
Miller — Yea
Nielsen — Yea
Duvall — Not Voting
Skinner — Yea
Torlakson — Yea
Ammiano — Yea
Solorio — Yea
Davis — Yea
Calderon, Lisa Democratic Not Voting
Strickland, Tony Republican Yea

Official roll call →

Do pass and be re-referred to the Committee on Appropriations.

Passed 12 Yea · 0 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 11004
Democratic 1000
Republican 0001
Total 12005
% of votes cast 71%0%0%29%
How each member voted (17)
Member Party Vote
Bonnie — Yea
John — Yea
A. — Yea
Perez — Yea
Galgiani — Not Voting
Conway — Not Voting
Garrick — Yea
Miller — Not Voting
Torlakson — Not Voting
Blumenfield — Yea
Buchanan — Yea
Jeffries — Yea
Solorio — Yea
Eng — Yea
Furutani — Yea
Lowenthal, Josh Democratic Yea
Niello, Roger W. Republican Not Voting

Official roll call →

Special Consent #2 SB424 Padilla

Passed 36 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 32004
Democratic 3000
Republican 1000
Total 36004
% of votes cast 90%0%0%10%
How each member voted (40)
Member Party Vote
Yee — Yea
Cogdill — Yea
Corbett — Yea
Alquist — Yea
Ashburn — Yea
Benoit — Yea
Ducheny — Yea
Wyland — Yea
Negrete — Yea
Runner — Not Voting
Florez — Yea
Cedillo — Not Voting
Hancock — Yea
Huff — Yea
Liu — Yea
Maldonado — Yea
McLeod — Yea
Oropeza — Yea
DeSaulnier — Not Voting
Dutton — Yea
Pavley — Yea
Romero — Yea
Simitian — Yea
Steinberg — Yea
Walters — Yea
Wolk — Yea
Wright — Yea
Aanestad — Not Voting
Harman — Yea
Hollingsworth — Yea
Kehoe — Yea
Leno — Yea
Wiggins — Yea
Correa — Yea
Cox — Yea
Denham — Yea
Calderon, Lisa Democratic Yea
Lowenthal, Josh Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Yea

Official roll call →

Do pass, but re-refer to the Committee on Appropriations.

Passed 10 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 9001
Democratic 1000
Total 10001
% of votes cast 91%0%0%9%
How each member voted (11)
Member Party Vote
Hollingsworth — Yea
Huff — Yea
Kehoe — Yea
Oropeza — Not Voting
Pavley — Yea
Simitian — Yea
Wolk — Yea
Ashburn — Yea
Harman — Yea
DeSaulnier — Yea
Lowenthal, Josh Democratic Yea

Official roll call →

Subjects

labor transportation
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Frequently asked questions

What does SB 424 do?
(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.
Who sponsors SB 424?
SB 424 is sponsored by Padilla, Stephen C. (Democratic), Eng, Florez, Fuentes, Harman, and Solorio.
What is the current status of SB 424?
This bill died with 2009-2010 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 424?
Track SB 424 free on One Click Politics — get push/email alerts when it moves.

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