AB 473 SIGNED INTO CA LAW!

CNCDA’S FRANCHISE BILL (AB 473) SIGNED BY GOVERNOR NEWSOM

(10.08.23, Sacramento)- Yesterday, California’s Governor officially signed the California New Car Dealer Association’s 2023 Franchise Bill (AB 473), signaling a massive win for franchised new car dealers in the state.

Authored and championed by Assemblymember Cecilia Aguiar-Curry (D-Winters), the bill takes effect January 1, 2024. It will strengthen CA’s franchise laws, creating a fairer and more balanced environment for dealers. It emphasizes accountability and transparency, benefiting all franchised dealer members.

You can read the full request for signature request sent to Governor Newsom outlining details of the bill here. Additionally, we are encouraging all members to attend one of our 2023 New Laws Seminars to learn how to implement these new provisions at your dealership.

AB 473 includes several fundamental tenets:

• Preserving Franchise System Integrity: It prevents manufacturers from introducing new vehicle brand names that would directly compete with their established franchised dealer network.

• Equitable DC Fast Charging: The bill establishes fairness in manufacturer-imposed DC fast charging programs. It prohibits manufacturers from burdening their dealers with the entire cost of installing and maintaining public-facing DC fast chargers.

• Post-sale Subscription Limits: AB 473 limits manufacturers’ ability to offer post-sale subscriptions for features already integrated into the vehicle, ensuring fairness in consumer choices.

• Transparent Reservation Process: Manufacturers are now mandated to adopt an open and fair process for vehicle reservation systems, enhancing transparency for both dealers and consumers.

• Reimbursement for Digital Services: Manufacturers are now obligated to reimburse dealers for any losses incurred due to the use of a non-compliant digital service, particularly if the manufacturer preselected the service.

CNCDA sincerely appreciates all the dealers who supported, called, emailed, and helped us get this across the finish line for a victory on behalf of all franchised dealers statewide. AB 473 passed because of your advocacy and the efforts of CNCDA staff and many others. We also thank Assemblymember Cecilia Aguiar-Curry, whose tremendous support helped lead to the bill’s passage. WE THANK YOU!

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