California 2013-2014 Regular Session Status: Enacted 1 D cosponsors

SB 155 — Vehicles: motor vehicle manufacturers and distributors.

Last action — Chaptered by Secretary of State. Chapter 512, Statutes of 2013.

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

This bill has been enacted into law. Introduced January 31, 2013. Enacted.

Prognosis

Likely to advance 72% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 D).

  • Cleared a recorded vote

    Passed 7 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

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. Existing law prescribes procedures to be followed by franchisors, franchisees, and the board regarding claims for warranty reimbursement or incentive compensation. Existing law authorizes franchisors to conduct audits of franchisee warranty records and incentive records on a reasonable basis, and authorizes a franchisor to audit the franchisee's incentive records for 18 months, and warranty records for 12 months, after a claim is paid or credit issued. Existing law prohibits the disapproval of franchisee claims except for good cause, as specified, and requires that a notice of disapproval state the specific grounds upon which the disapproval is based. Existing law gives a franchisee one year from receipt of the notice of disapproval of an incentive compensation payment to appeal the disapproval to the franchisor and file a protest with the board. This bill would revise these provisions to require, among other things, the franchisor to provide the franchisee with the specific grounds upon which any previously approved claims are disapproved following an audit, and to prohibit a previously approved claim from being charged back to the franchisee except under certain circumstances, including when the claim is false or fraudulent. The bill would require the franchisor to provide a reasonable appeal process to allow the franchisee to respond to any disapproval with additional supporting documentation or information rebutting the disapproval or to cure noncompliance, as provided. The bill would authorize the audit of a franchisee's incentive and warranty records for 9 months after a claim is paid or credit is issued, as specified. The bill would give a franchisee 6 months from the date of receipt of a specified written notice to file a protest with the board, and would specify that in the protest proceeding the franchisor has the burden of proof. Existing law requires every vehicle franchisor to properly fulfill every warranty agreement made by it and adequately and fairly compensate each of its franchisees for labor and parts used to fulfill that warranty when the franchisee has fulfilled warranty obligations of repair and servicing. Existing law also requires the franchisor to file a copy of its warranty reimbursement schedule or formula with the board, and requires the board to determine the reasonableness of the warranty reimbursement schedule or formula if the franchisee files a notice of protest with the board. This bill would additionally require a franchisor to adequately and fairly compensate each of its franchisees for labor and parts used to provide diagnostic services under a warranty, and would prohibit a franchisor from replacing, modifying, or supplementing a warranty reimbursement schedule to impose a fixed percentage or other reduction in the time and compensation allowed for warranty repairs not attributable to a specific repair. The bill would also require, if the board determines that the warranty reimbursement schedule or formula fails to provide adequate compensation, the franchisor to correct the failure by amending or replacing the warranty reimbursement schedule and implementing the correction as to all franchisees within 30 days after receipt of the board's order. Existing law generally requires a 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 engage in specified practices, including requiring a dealer to make a material alteration, expansion, or addition to any dealership facility, unless the required alteration, expansion, or addition is reasonable in light of all existing circumstances, including economic conditions. This bill would prohibit a required facility alteration, expansion, or addition from being deemed reasonable if it requires that the dealer purchase goods or services from a specific vendor if goods or services of a substantially similar kind, quality, and general design concept are available from another vendor, except as specified. The bill would also prohibit the establishment or maintenance of a performance standard, sales objective, or program for measuring a dealer's sales, service, or customer service performance that may materially affect the dealer, including, but not limited to, the dealer's right to payment under any incentive or reimbursement program or establishment of working capital requirements, unless certain requirements are satisfied. The bill would also prohibit a manufacturer, manufacturer branch, distributor, or distributor branch from taking or threatening to take any adverse action against a dealer pursuant to a published export or sale-for-resale prohibition because the dealer sold or leased a vehicle to a customer who either exported the vehicle to a foreign country or resold the vehicle, unless the dealer was provided an export or sale-for-resale prohibition policy, in writing, prior to the sale or lease and the dealer knew or should have known of the customer's intent to export or resell the vehicle, as specified. Because a violation of these provisions would be a crime, this bill would impose a state-mandated local program. 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.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 512, Statutes of 2013.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 5 p.m.

  4. Assembly amendments concurred in. (Ayes 38. Noes 0. Page 2366.) Ordered to engrossing and enrolling.

  5. In Senate. Concurrence in Assembly amendments pending.

  6. Read third time. Passed. (Ayes 77. Noes 1. Page 3142.) Ordered to the Senate.

  7. Ordered to third reading.

  8. Read third time and amended. (Page 2943.)

  9. Read second time. Ordered to third reading.

  10. From committee: Do pass. (Ayes 16. Noes 0.) (August 30).

  11. From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.

  12. From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (August 13). Re-referred to Com. on APPR.

  13. Set, first hearing. Hearing canceled at the request of author.

  14. From committee: Do pass and re-refer to Com. on JUD. (Ayes 15. Noes 0.) (June 17). Re-referred to Com. on JUD.

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

  16. Re-referred to Coms. on TRANS. and JUD.

  17. Referred to Coms. on JUD. and TRANS.

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

  19. Read third time. Passed. (Ayes 36. Noes 0. Page 1042.) Ordered to the Assembly.

  20. Read second time. Ordered to third reading.

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

  22. Set for hearing May 20.

  23. Read second time and amended. Re-referred to Com. on APPR.

  24. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0. Page 753.) (April 30).

  25. From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.

  26. Set for hearing April 30.

  27. Set, first hearing. Hearing canceled at the request of author.

  28. Set for hearing April 23.

  29. From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.

  30. Referred to Com. on JUD.

  31. From printer. May be acted upon on or after March 3.

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

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"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 SB155 Padilla Concurrence

Passed 38 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 35001
Democratic 3000
Total 38001
% of votes cast 97%0%0%3%
How each member voted (39)
Member Party Vote
Hernandez — Yea
Hill — Yea
Knight — Yea
Liu — Yea
Pavley — Yea
Steinberg — Yea
Cannella — Yea
Evans — Yea
Galgiani — Yea
Hancock — Yea
Hueso — Yea
Anderson — Yea
Beall — Yea
Block — Yea
Huff — Yea
Lara — Yea
Leno — Yea
Lieu — Yea
Monning — Yea
Nielsen — Yea
Roth — Yea
Torres — Yea
Vidak — Yea
Walters — Yea
Wolk — Yea
De León — Not Voting
Wright — Yea
Wyland — Yea
Corbett — Yea
Emmerson — Yea
Correa — Yea
DeSaulnier — Yea
Fuller — Yea
Yee — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Calderon, Lisa Democratic Yea
Jackson, Corey A. Democratic Yea
Padilla, Stephen C. Democratic Yea

Official roll call →

SB 155 Padilla Senate Third Reading By HOLDEN

Passed 77 Yea · 1 Nay
Party YeaNayPresentNot Voting
Unaffiliated 70100
Democratic 4000
Republican 3000
Total 77100
% of votes cast 99%1%0%0%
How each member voted (78)
Member Party Vote
Achadjian — Yea
Ammiano — Yea
Bigelow — Yea
Bradford — Yea
Brown — Yea
Buchanan — Yea
Harkey — Yea
Linder — Yea
Mansoor — Yea
Medina — Yea
Nazarian — Yea
Perea — Yea
Quirk — Yea
Ting — Yea
Wieckowski — Yea
Williams — Yea
Frazier — Yea
Campos — Yea
Gordon — Yea
Gorell — Yea
Hall — Yea
Chau — Yea
Allen — Yea
Chávez — Yea
Bonilla — Yea
Holden — Yea
Logue — Yea
Morrell — Yea
Mullin — Yea
Olsen — Yea
Gray — Yea
Rendon — Yea
Mitchell — Yea
Alejo — Yea
Bloom — Yea
Conway — Yea
Cooley — Yea
Daly — Yea
Eggman — Yea
Skinner — Yea
Wagner — Yea
Weber — Yea
Wilk — Yea
Bocanegra — Yea
John A. Pérez — Yea
Salas — Yea
Lowenthal — Yea
Garcia — Yea
Atkins — Yea
Fong — Yea
Gatto — Yea
Chesbro — Yea
Donnelly — Nay
Jones-Sawyer — Yea
Levine — Yea
Maienschein — Yea
Melendez — Yea
Nestande — Yea
Pan — Yea
Waldron — Yea
Dickinson — Yea
Fox — Yea
Yamada — Yea
Gomez — Yea
Hagman — Yea
Beth Gaines — Yea
Jim Patterson — Yea
Lorena Gonzalez — Yea
Mark Stone — Yea
Roger Hernández — Yea
V. Manuel Pérez — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Muratsuchi, Al Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea

Official roll call →

Do pass.

Passed 16 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 15001
Democratic 1000
Total 16001
% of votes cast 94%0%0%6%
How each member voted (17)
Member Party Vote
Bradford — Yea
Harkey — Yea
Pan — Yea
Quirk — Yea
Bocanegra — Yea
Hall — Yea
Campos — Yea
Holden — Yea
Linder — Yea
Bigelow — Yea
Donnelly — Not Voting
Eggman — Yea
Wagner — Yea
Weber — Yea
Gatto — Yea
Gomez — Yea
Calderon, Lisa Democratic Yea

Official roll call →

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

Passed 15 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 12001
Democratic 2000
Republican 1000
Total 15001
% of votes cast 94%0%0%6%
How each member voted (16)
Member Party Vote
Achadjian — Yea
Ammiano — Yea
Blumenfield — Not Voting
Buchanan — Yea
Holden — Yea
Linder — Yea
Frazier — Yea
Lowenthal — Yea
Daly — Yea
Logue — Yea
Morrell — Yea
Nazarian — Yea
Gatto — Yea
Bonta, Mia Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Patterson, Joe Republican Yea

Official roll call →

3rd Reading

Passed 36 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 33003
Democratic 3000
Total 36003
% of votes cast 92%0%0%8%
How each member voted (39)
Member Party Vote
Anderson — Yea
Block — Yea
Hernandez — Yea
Hueso — Yea
Leno — Yea
Liu — Not Voting
Nielsen — Yea
Pavley — Yea
Walters — Yea
Wright — Yea
Emmerson — Yea
Cannella — Yea
Wyland — Yea
De León — Yea
Corbett — Yea
Evans — Not Voting
Galgiani — Yea
Hill — Yea
Correa — Yea
Huff — Yea
Beall — Yea
Knight — Yea
Lara — Yea
Lieu — Yea
Monning — Yea
Price — Yea
Roth — Yea
Steinberg — Yea
Torres — Yea
Wolk — Yea
DeSaulnier — Yea
Fuller — Yea
Yee — Yea
Hancock — Yea
Beth Gaines — Yea
Bill Berryhill — Not Voting
Calderon, Lisa Democratic Yea
Jackson, Corey A. Democratic Yea
Padilla, Stephen C. Democratic Yea

Official roll call →

Subjects

labor transportation
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Frequently asked questions

What does SB 155 do?
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. Existing law prescribes procedures to be followed by franchisors, franchisees, and the board regarding claims for warranty reimbursement or incentive compensation. Existing law authorizes franchisors to conduct audits of franchisee warranty records and incentive records on a reasonable basis, and authorizes a franchisor to audit the franchisee's incentive records for 18 months, and warranty records for 12 months, after a claim is paid or credit issued. Existing law prohibits the disapproval of franchisee claims except for good cause, as specified, and requires that a notice of disapproval state the specific grounds upon which the disapproval is based. Existing law gives a franchisee one year from receipt of the notice of disapproval of an incentive compensation payment to appeal the disapproval to the franchisor and file a protest with the board. This bill would revise these provisions to require, among other things, the franchisor to provide the franchisee with the specific grounds upon which any previously approved claims are disapproved following an audit, and to prohibit a previously approved claim from being charged back to the franchisee except under certain circumstances, including when the claim is false or fraudulent. The bill would require the franchisor to provide a reasonable appeal process to allow the franchisee to respond to any disapproval with additional supporting documentation or information rebutting the disapproval or to cure noncompliance, as provided. The bill would authorize the audit of a franchisee's incentive and warranty records for 9 months after a claim is paid or credit is issued, as specified. The bill would give a franchisee 6 months from the date of receipt of a specified written notice to file a protest with the board, and would specify that in the protest proceeding the franchisor has the burden of proof. Existing law requires every vehicle franchisor to properly fulfill every warranty agreement made by it and adequately and fairly compensate each of its franchisees for labor and parts used to fulfill that warranty when the franchisee has fulfilled warranty obligations of repair and servicing. Existing law also requires the franchisor to file a copy of its warranty reimbursement schedule or formula with the board, and requires the board to determine the reasonableness of the warranty reimbursement schedule or formula if the franchisee files a notice of protest with the board. This bill would additionally require a franchisor to adequately and fairly compensate each of its franchisees for labor and parts used to provide diagnostic services under a warranty, and would prohibit a franchisor from replacing, modifying, or supplementing a warranty reimbursement schedule to impose a fixed percentage or other reduction in the time and compensation allowed for warranty repairs not attributable to a specific repair. The bill would also require, if the board determines that the warranty reimbursement schedule or formula fails to provide adequate compensation, the franchisor to correct the failure by amending or replacing the warranty reimbursement schedule and implementing the correction as to all franchisees within 30 days after receipt of the board's order. Existing law generally requires a 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 engage in specified practices, including requiring a dealer to make a material alteration, expansion, or addition to any dealership facility, unless the required alteration, expansion, or addition is reasonable in light of all existing circumstances, including economic conditions. This bill would prohibit a required facility alteration, expansion, or addition from being deemed reasonable if it requires that the dealer purchase goods or services from a specific vendor if goods or services of a substantially similar kind, quality, and general design concept are available from another vendor, except as specified. The bill would also prohibit the establishment or maintenance of a performance standard, sales objective, or program for measuring a dealer's sales, service, or customer service performance that may materially affect the dealer, including, but not limited to, the dealer's right to payment under any incentive or reimbursement program or establishment of working capital requirements, unless certain requirements are satisfied. The bill would also prohibit a manufacturer, manufacturer branch, distributor, or distributor branch from taking or threatening to take any adverse action against a dealer pursuant to a published export or sale-for-resale prohibition because the dealer sold or leased a vehicle to a customer who either exported the vehicle to a foreign country or resold the vehicle, unless the dealer was provided an export or sale-for-resale prohibition policy, in writing, prior to the sale or lease and the dealer knew or should have known of the customer's intent to export or resell the vehicle, as specified. Because a violation of these provisions would be a crime, this bill would impose a state-mandated local program. 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.
Who sponsors SB 155?
SB 155 is sponsored by Padilla, Stephen C. (Democratic).
What is the current status of SB 155?
This bill has been enacted into law. Introduced January 31, 2013. Enacted.
Where can I track SB 155?
Track SB 155 free on One Click Politics — get push/email alerts when it moves.

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