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Store Research

Vehicles; dealers; consumer protection

SB 729, c. 437

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.

SB 729, c. 437: Vehicles; dealers; consumer protection. 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.

This bill was sponsored by the California District Attorneys Association, and supported by the Automobile Club of Southern California, the California Motor Car Dealers Association, the California State Automobile Association , the Congress of California Seniors , the Independent Automobile Dealers of California, and the Office of the Attorney General.

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.

If you would like to order the legislative history of this bill [click here] .