The New Motor Vehicle Board
The organization of the Board is defined in Vehicle Code §§ 3000 to 3016. The Board is composed of nine members. The composition of the Board is as follows:
Four licensed new motor vehicle dealers, who must have been licensed as a new motor vehicle dealer for not less than five years. Each of these Board Members is appointed by the Governor.
Five members from the general public, one of whom must be an attorney who has been a member of the California Bar for at least ten years. Of these Board Members, three are appointed by the Governor, one by the Senate Rules Committee, and one by the Speaker of the Assembly. Dealer members of the Board are prohibited for hearing, commenting, advising public members upon, or deciding any matter that involves a dispute between a franchisor, unless all parties stipulate otherwise ( Vehicle Code §§ 3066(d)). This procedure is followed so as to prevent any suggestion of bias or partiality of Board decisions. However, Dealer members may participate in matters which do not involve a dispute between a franchisee and a franchisor, such as a petition filed by a member of the public or an appeal from a Department decision.
JURISDICTION OF THE
BOARD
In General
The Board's statutory jurisdiction under Vehicle Code 3050(c) extends to any person applying for or holding a license as a new motor vehicle dealer, manufacturer, manufacturer branch, distributor, distributor branch, or representative.
In the past, the courts have construed this jurisdiction as primary and exclusive. An aggrieved licensee was required to bring any dispute arising out of the franchise relationship before the Board prior to seeking judicial relief (see Yamaha Motor Company v. Superior Court (1986) 185 Cal. App. 3d 1232, 230 Cal. Rptr. 382; Yamaha Motor Company v. Superior Court (1987) 195 Cal. App. 3d 652, 240 Cal. Rptr. 806; Ray Fladeboe Lincoln Mercury, Inc. v. New Motor Vehicle Board (1992) 10 Cal. App. 4th 51, 12 Cal Rptr. 2d 598; Mathew Zaheri Corp. v. Mitsubishi Motor Sales of America, Inc. (1993) 17 Cal. App. 4th 288, 21 Cal. Rptr. 2d 325.)
Recent court decisions and legislation have held otherwise (see Miller v. Superior Court (1996) 50 Cal. App. 4th 1665, 58 Cal. Rptr. 2d 583; Hardin Oldsmobile v. Superior Court (1997) 52 Cal. App 4th 585, 60 Cal. Rptr. 2d 583; Tovas v. American Honda Motor Company, Inc. (1997) 57 Cal. App. 4th 506, 67 Cal. Rptr. 2d 145; Kemp v. Nissan Motor Corporation in U.S.A. (1997) 57 Cal. App. 4th 1527, 67 Cal. Rptr. 2d 794.) Vehicle Code § 3050 (e), added in 1997 and effective in 1998, provides that "...the courts have jurisdiction over all common law and statutory claims originally cognizable in the courts. For those claims, a party may initiate an action directly in any court of competent jurisdiction."
In 2003, the Board's petition jurisdiction under Vehicle Code section 3050, subdivision (c) was narrowed by the decision in Mazda Motor of America, Inc., v. California New Motor Vehicle Board; David J. Phillips Buick-Pontiac, Inc., Real Party in Interest (2003) 110 Cal. App. 4th 1451; 2 Cal.Rptr.3d 866. The Board's jurisdiction for licensee versus licensee petitions was limited to those in which the petitioner seeks relief under Vehicle Code section 3050, subdivision (c)(1) or (3). Subdivision (c)(1) allows the Board to direct the Department to conduct an investigation of matters that the Board deems reasonable. Subdivision (c)(3) permits the Board to order the Department to "exercise any and all authority or power that the department may have with respect to the issuance, renewal, refusal to renew, suspension, or revocation" of the occupational license of a manufacturer or distributor. The Board's jurisdiction under Vehicle Code section 3050, subdivision (c)(2) which provides that the Board may "undertake to mediate, arbitrate, or otherwise resolve any honest difference of opinion or viewpoint (i.e., hold a hearing) existing between any member of the public and any new motor vehicle dealer, manufacturer, . distributor branch." was limited to petitions brought by members of the public, and does not include licensees as petitioners.
Effective January 1, 2004, the Vehicle Code was amended to bring new recreational vehicles as defined in Health and Safety Code section 18010 (a) under the jurisdiction of the Board for purposes of dispute resolution and fee collection (Veh. Code §§ 3069.1 - 3079).
Powers & Duties
The powers and duties of the Board are defined in Vehicle Code § § 3050 and 3051. Legislation extended the authority of the Board to adopt rules and regulation for franchisees and franchisors of all-terrain vehicles pursuant to Vehicle Code § 3051. In addition to delegating rulemaking authority to the Board, Vehicle Code § 3050 empowers the Board to take action in three specific circumstances - protest, petitions, and appeals.
As a quasi-judicial body, the Board is empowered by Vehicle Code § 3050.1(a) to administer oaths, take depositions, certify to official acts, and issue subpoenas to compel the attendance of witnesses or the production of documents. These powers are capable of being enforced by the superior courts upon application by the Board ( Vehicle Code § 3050.2(a)).
Further, in any protest, petition, or appeal, the Board, its Executive Director, or a hearing officer may order a mandatory settlement conference. The failure of a party to appear, to be prepared, or to have the authority to settle the matter at such a conference, may result in the Board taking action adverse to that party including, but not limited to suspension of proceedings before the Board, dismissal of all or part of proceedings before the Board and/or requirement of the payment of all Board cost by the party at fault ( Vehicle Code § 3050.4).
* The Board has delegated to its Executive Director all statutory referenced authority of "Secretary."
Enforcement of Board Orders
The Vehicle Code provides for sanctions, injunctions, and penalties for violating orders of the Board or the requirements of those sections of the Vehicle Code within the Board's authority. Vehicle Code § 11726 provides for enforcement of Board orders by permitting any licensee to recover damages, attorney fees, and injunctive relief for a willful failure to comply with a Board order. These enforcement actions may be brought in any court of competent jurisdiction.
Action on decisions of the Board are undertaken at scheduled, noticed Board meetings. In order for the Board to take action, a quorum of members must be present. Quorum requirements for Board action are listed below:
PROTEST
A quorum consists of three of the five Public Members of the Board.
PETITIONS
Where the parties are a franchisee and a franchisor, a quorum consists of three of the five Public Members of the Board. Where the parties are a member of the public and an applicant/licensee, a quorum consists of five of the nine Members of the Board.
APPEALS
A quorum consists of five of the nine Members of the Board.
BOARD MEETINGS
The Board is required to statute to meet at least twice during each calendar year, with supplemental meeting scheduled as necessary. All Board meetings are open to the public (see Government Code §§ 11120 et seq.) with the exception of executive sessions during which the Board deliberates on pending matters, i.e., a Proposed Decision or a Ruling. Meeting agendas are mailed to all affected parties and to the public mailing list at lease 10 days prior to the scheduled meetings.
For additional information
about the Board, or to be placed on the Board's public
mailing list, please call our office at (916) 445-1888,
or e-mail us at nmvb@nmvb.ca.gov.
BOARD EXECUTIVE STAFF
WILLIAM G. BRENNAN, Executive Director
HOWARD WEINBERG, Esq., General Counsel
ROBIN P. PARKER, Esq., Senior Staff Counsel
BOARD ADMINISTRATIVE LAW JUDGES
LINDA WAITS
ANTHONY SKROCKI
MERILYN WONG
JEROLD A. PROD
MARYBELLE ARCHIBALD
DIANA WOODWARD-HAGLE
DEPARTMENT OF MOTOR VEHICLES
Administrative support for the Board's activities is provided by the Department of Motor Vehicles. Information concerning the operations and services of the Department is available on the Internet at www.dmv.ca.gov