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AB 2107, New Motor Vehicle Franchise Bill, Unanimously Approved by the California State Assembly

Contact: Jenny Dudikoff
Phone: 916-441-2599

Yesterday, AB 2107, a comprehensive franchise bill sponsored by the California New Car Dealers Association (CNCDA) received a bi-partisan unanimous vote to move off the California State Assembly Floor and on to the upper house, the California State Senate. “After multiple amendments at the request of stakeholders, and despite strenuous opposition efforts from the manufacturers, members of the State Assembly supported the bill with an initial vote of 75 – 0,” stated Brian Maas, President of the California New Car Dealers Association. “We are eager to continue moving forward with this critical legislation and are committed to achieving a stronger, more equitable new motor vehicle franchise system for our members and their customers.”

AB 2107, authored by Assemblymember Eloise Reyes (D-San Bernardino), 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

The bill will now move on to be considered in the State Senate in coming weeks.

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