Subject: SB 95 Senate Bill - Bill Analysis
From: <Saved by Windows Internet Explorer 7>
Date: Thu, 16 Jul 2009 10:22:51 -0700

BILL ANALYSIS

SB 95
Page 1

Date of Hearing: July 15, 2009

ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair

SB 95 (Corbett) - As Amended: July 1, 2009

Policy Committee:
JudiciaryVote:10-0

Urgency: No State Mandated Local Program:
No Reimbursable:

SUMMARY

This bill enacts the California Car Buyers' Protection Act of
2009. Specifically, this bill:

1)Places specified requirements on a dealer when the dealer
purchases or obtains a trade-in vehicle in a sale or lease
transaction and that vehicle has an existing credit or lease
balance.

2)Increases by $25 the fee for the original license and annual
renewal license for dealers and lessor-retailers, and
increases by $50 the fee for the original and renewal of an
autobroker's endorsement to a dealer's license.

3)Expresses legislative intent that the portion of the dealer or
retail-lessor license fee to be used by the DMV to investigate
noncompliance of dealers and retail lessors with state
licensing requirements be increased from $15 to $40.

FISCAL EFFECT

Annual increased license fee revenue to the DMV of $475,000, and
one-time programming and administrative costs of $100,000 to
implement the fee increases. The additional revenues will be
available, upon appropriation, to the DMV's Occupational
Licensing and Investigative Services program.

COMMENTS

Purpose . According to the author, this bill, sponsored by the
Consumers for Auto Reliability and Safety (CARS), is intended to

SB 95
Page 2

require dealers to pay-off car liens before trading or selling
the vehicles so consumers are not stuck with two car payments.
The most recent amendments, which removed opposition to the
bill, require a dealer to payoff a lien before it sells or
trades the vehicle, and do so within 21 days. In addition, the
bill increases funding for DMV investigators by a small increase
in the dealer license fee.

The author indicates that the DMV is reporting a significant
increase in the number of consumer complaints involving a
dealer's failure to pay off a trade-in. As of the end of
February 2009, the DMV was investigating 256 active cases where
a dealer has failed to pay off a consumer's trade-in and 564
additional consumer complaints that the consumer had not yet
received verification that title to a vehicle bought from or
sold to a dealer had been transferred.

Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081