California Assembly Bill AB473

California 2023-2024 Regular Session

• Introduced: 2/6/23
• Refer: 2/17/23
• Report Pass: 3/6/23
• Refer: 3/7/23
• Report Pass: 3/14/23
• Refer: 3/16/23
• Report Pass: 4/12/23
• Refer: 4/17/23
• Report Pass: 4/25/23
• Refer: 4/25/23
• Refer: 5/17/23
• Report Pass: 5/18/23
• Engrossed: 5/22/23
• Refer: 5/23/23
• Refer: 5/31/23
• Report Pass: 6/15/23
• Report Pass: 6/28/23
• Refer: 6/15/23
• Refer: 6/29/23
• Report Pass: 7/3/23
• Refer: 7/3/23
• Report Pass: 7/12/23
• Refer: 7/13/23
• Enrolled: 9/7/23
• Chaptered: 10/7/23
• Passed: 10/7/23

Caption

Motor vehicle manufacturers, distributors, and dealers.

Impact

The enactment of AB 473 will primarily affect the regulation of motor vehicle franchises within California. This bill is designed to enhance dealer protections against unfair practices by franchisors, which include rights to fair compensation for warranty service and prohibitions against coercive demands for facility upgrades. It will reinforce the structure of the New Motor Vehicle Board, allowing for a more robust framework for dispute resolution between dealers and manufacturers. Consequently, this may lead to a more transparent and equitable marketplace for both automobile dealers and consumers.

Summary

Assembly Bill No. 473, introduced by Aguiar-Curry, amends the Vehicle Code in California, particularly concerning the practices of motor vehicle manufacturers, distributors, and dealers. The legislation aims to strengthen regulations on how franchisors engage with franchisee dealers to ensure fair competition and protect dealer interests. It prohibits practices that would allocate vehicles and parts inconsistently with set standards and restricts the imposition of unfair performance requirements. These changes are a response to concerns that some practices imposed by manufacturers could limit dealers' ability to operate effectively and competitively in the market.

Sentiment

The sentiment surrounding AB 473 appears generally positive among dealers and consumer advocacy groups, who see it as a significant step forward in protecting their rights against potentially exploitative practices by manufacturers. However, some concerns were raised by manufacturers about the implications of increased regulatory oversight, suggesting a possible tension between fostering dealer independence and maintaining operational efficiencies for manufacturers. Overall, the bill is perceived as a necessary reform to enhance fairness and compliance in the automotive market.

Contention

Despite broad support, AB 473 has faced contention concerning its implications on how manufacturers may conduct business with their franchisees. Critics argue that the restrictions may hinder manufacturers' ability to implement performance standards essential for quality control and competitiveness. Additionally, the bill's lack of reimbursement provisions for local agencies prompted debate, as some stakeholders expressed concerns about the potential financial impact on local governance structures involved in enforcement and oversight of these new regulations.