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AB 179, California’s New Motor Vehicle Franchise Bill, Unanimously Passes Out of First Committee

Contact: Jenny Dudikoff
Phone: 916-441-2599

SACRAMENTO, CA – AB 179, the California New Car Dealers Association’s priority bill for the 2019 legislative session, was heard yesterday in the California State Assembly.  With bipartisan support, AB 179 established a huge win, unanimously passing out of its first policy committee – Assembly Transportation, with a vote of 14-0.

AB 179, authored by Assemblymember Eloise Reyes (D-San Bernardino), seeks to strengthen and protect California’s franchise system, California new car dealers and new car buyers. AB 179 contains a number of provisions designed to improve California’s franchise laws by:

  1. Strengthening California’s franchise laws
  2. Addressing inappropriate treatment of dealers by manufacturers
  3. Enforcing manufacturer accountability for unlawful actions against dealers
  4. Conforming California franchise laws to recent actions in other states

“AB 179 started where last year’s AB 2107 left off, including topics that are of critical importance to the dealer franchise system in California. While we believe that Governor Brown got his veto wrong, we are confident that the legislature and the new administration will see why this is good policy not only for California local businesses but also California new car buyers,” said California New Car Dealers Association Chairperson, Ted Nicholas of Three-Way Chevrolet in Bakersfield. “CNCDA and our members statewide are eager to work together with the author and stakeholders on this bill and we are committed to achieving a stronger, more equitable new motor vehicle franchise system.”

With passage out of its first committee, AB 179 will be heard next month in the Assembly Appropriations Committee.

For CNCDA background on the bill, please visit our AB 179 Factsheet. For full bill text, please click here.

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About CNCDA
For more than 95 years, CNCDA has represented the interests of California’s franchised new car dealers. CNCDA members are primarily engaged in the retail sale and lease of new and used motor vehicles, but also provide customers with automotive products, parts, service and repair. Our members sold more than 2 million new cars and trucks in 2018 and employ more than 135,000 Californians, significantly contributing to our state’s economy. As the nation’s largest state association of franchised new car and truck dealers—with nearly 1,200 members—CNCDA serves its members by providing legal compliance and legislative, regulatory and legal advocacy.

CNCDA is working to continuously provide our members with the most up to date information on the coronavirus as it pertains to dealerships.

Visit our Dealership Coronavirus Resources webpage for more information.

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