In early October, 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 Jan. 1, 2024. It will strengthen California’s franchise laws, creating a fairer and more balanced environment for dealers. It emphasizes accountability and transparency, benefiting all franchised dealer members.

After months of advocating, negotiating and engaging with our members, this is a significant victory for dealers across the state and the industry’s future. The passage of AB 473 is a significant step forward to a more robust new motor vehicle franchise system for California’s new car dealers.

Overcoming significant manufacturer opposition, the unanimous passage and signature of AB 473 would not have been possible without the support and guidance from CNCDA leadership and the dedication and engagement of dealer members throughout the state.

We must also thank the author of AB 473, Assemblymember Cecilia Aguiar-Curry (D-Winters). Her steadfast support and commitment to our cause has been second to none. If you know Assemblymember Aguiar-Curry personally, please reach out and thank her for being a champion for California dealers.

AB 473 will strengthen and update California’s motor vehicle franchise laws by enforcing manufacturer accountability for unlawful treatment of dealers by manufacturers and 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.