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AB-2107 New Motor Vehicle Board.(2017-2018)

Bill Status
Reyes (A)
New Motor Vehicle Board.
An act to amend Sections 3010, 3050.5, 3065, 11713.3, 11713.13, and 11726 of, to amend and repeal Sections 3050, 3050.1, 3050.7, and 3085.10 of, to amend, repeal, and add Section 3066 of, to add Sections 3065.2 and 3065.25 to, to add and repeal Section 3065.3 of, to repeal Section 3085.10 of, and to repeal Article 3 (commencing with Section 3052) of Chapter 6 of Division 2 of, the Vehicle Code, relating to new motor vehicles.

Type of Measure
Inactive Bill - Vetoed
Majority Vote Required
Fiscal Committee
State-Mandated Local Program
Non-Tax levy
Last 5 History Actions
Date Action
09/30/18 Vetoed by Governor.
09/10/18 Enrolled and presented to the Governor at 3:30 p.m.
08/30/18 Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0. Page 7028.).
08/29/18 In Assembly. Concurrence in Senate amendments pending.
08/29/18 Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5993.).
Governor's Veto Message
To the Members of the California State Assembly:

I am returning Assembly Bill 2107 without my signature.

This bill modifies the statutory framework governing the relationship between new car dealers and manufacturers, including establishing a complex formula to determine the rate manufacturers will reimburse dealers for warranty and recall repairs.

Under current law, manufacturers are required to reimburse dealers for warranty and recall repairs at a "reasonable" rate negotiated between the two parties. This framework appears to be working reasonably well and I see no reason to adopt the rather complicated formula authorized in this bill--with perhaps unintended consequences.


Edmund G. Brown Jr.