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Store Research

Senate Bill 729 (Padilla - 2007)

Chapter 437, Statutes of 2007, SB 729

Some bill research does not include the Governor's file because at the time we researched the bill, the sitting Governor had not released his chaptered bill file. If the Governor's file is not included with this particular research, please contact our office (1-530-666-1917 or quote@legintent.com) and we will be happy to provide this file at no charge if it is available. Please Note: Governor files did not exist prior to 1943.

As of July 1, 2008, creates the Consumer Motor Vehicle Recovery Corporation and the Consumer Recovery Fund, with a board of directors with certain powers and duties, in order to provide payments to consumers on specified eligible claims when a vehicle dealer (1) fails to remit license or registration fees, (2) fails to pay off a trade-in's sale or lease balance owed, or (3) fails to make payment on a consignment sale agreement.  Eligible claims include claims where the dealer/lessor has ceased selling or leasing vehicles or is in bankruptcy. 

Currently, when a consumer purchases or leases a vehicle and trades-in another vehicle, part of the sale or lease agreement is that the dealer or lessor-retailer will pay the license and registration fees on the purchased or leased vehicle, and will pay off the loan or lease on the trade-in vehicle. In addition, when a dealer takes in a vehicle on consignment and then sells the consigned vehicle, the dealer is obligated to pay the consumer pursuant to the consignment agreement.

The author and sponsor of this bill state that often when a dealer or lessor-retailer goes out of business or enters bankruptcy, that dealer or lessor-retailer fails to meet its obligations to the consumer, including failure to pay license and registration fees, balances due on trade-ins, and payments due pursuant to a consignment agreement. This bill creates a consumer restitution fund to address these problems.