Motor vehicle manufacturers, distributors, and dealers.

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 in regard to a dispute with the vehicle manufacturer. Existing law prohibits a franchisor from engaging in specified proscribed business practices. A violation of the Vehicle Code is punishable as an infraction. This bill would prohibit additional acts, including allocating vehicles and parts inconsistent with specified standards. Existing law prohibits a licensed manufacturer, manufacturer branch, distributor, distributor branch, or affiliate from engaging in specified proscribed business practices, including establishing or maintaining a performance standard, sales objective, or program for measuring a dealer's sales, service, or customer service performance, unless specified requirements are satisfied. A violation of the Vehicle Code is punishable as an infraction. This bill would prohibit additional acts, including exercising a right of first refusal in bad faith and implementing or modifying a vehicle reservation system for the sale or lease of motor vehicles that does not comply with specified requirements. This bill would additionally provide that a licensed manufacturer, manufacturer branch, distributor, distributor branch, or affiliate is not unlawfully competing with a franchise by providing an update or repair of motor vehicle software over-the-air at no cost or by creating a new line of motor vehicles and using new or existing franchisees to sell and service those vehicles. The bill would also declare the severability of its provisions. Because a violation of these new provisions would be punishable as a crime, the bill would impose a state-mandated local program. The bill includes legislative findings and declarations and would make other conforming changes. 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.