ARBITRATION CERTIFICATION PROGRAM

1625 North Market Blvd., Suite N-112, Sacramento, CA 95834 Tel: (916) 574-7350 / Fax: (916) 574-8638 / http://www.lemonlaw.ca.gov

FACTS AT A GLANCE

PROGRAM STAFF

Program Chief Deputy Program Chief Legislative Contact Sherrie Moffet-Bell José Escobar Alexis Ramirez

LAWS AND REGULATIONS

Business and Profession Code §§ 472 - 472.5 Commercial Code Division 2 § 2101 et. seq Health and Safety Code §§ 43204 - 43205.5 Song Beverly Consumer Warranty Act (Lemon Law): Civil Code §§ 1790 - 1795.93 Vehicle Code Chapter 4 of Division 5 § 11700 et seq. Title 16, Division 33.1, California Code of Regulations §§ 3396.1 - 3399.6

BUDGET ACT OF 2015: FY 2015-16

Arbitration Certification Program Fund: $1,180,000 Authorized positions: 8.0

SUNSET REVIEW

Pursuant to Business and Professions Code § 472.4 the Arbitration Certification Program is required to submit a biennial report to the Legislature evaluating the effectiveness of the Certification of Third-Party Dispute Resolution Processes for New Motor Vehicles. The next report is due in 2017.

STATE CERTIFICATION STATISTICS

The Arbitration Certification Program has approved arbitration programs to provide thirdparty arbitration services for participating automobile manufacturers. These manufacturers represent many of the major car brands, with the exception of Acura, Daewoo, Daihatsu, Honda, Lexus, Mercedes-Benz, Mitsubishi, Peugeot, Subaru, Suzuki, and Volvo.

FEES

The Arbitration Certification Program’s operating expenses are generated by a fee of up to $1 for each motor vehicle sold or leased by manufacturers in California. These fees are collected by the New Motor Vehicle Board, within the Department of Motor Vehicles, and deposited into the Certification Account.

DETAILS

PROGRAM BACKGROUND

The Arbitration Certification Program was established in 1987 to certify and monitor arbitration programs sponsored by new vehicle manufacturers, in accordance with the Song Beverly Consumer Warranty Act, also known as the California Lemon Law. This law provides certain protections for consumers when purchasing a new motor vehicle and provides for returns, replacements or significant repairs to be made. Specifically, manufacturers are required to repurchase or replace vehicles if they are unable to provide an adequate solution to the needed repair. The Arbitration Certification Program has established and maintains standards for certifying new vehicle warranty arbitration programs, reviews applications for program certification, and monitors certified programs for continued compliance with regulatory and statutory requirements.

COMMITTEES

None.

RECIPROCITY Not applicable.

LEGISLATIVE HISTORY

None.