Governor Signs Bill To Protect Car Buyers

Gov. Schwarzenegger signed the CALPIRG-backed Car Buyers’ Bill of Rights, a bill by Asm. Cindy Montañez (San Fernando), on July 25.

The new law prevents dealers from slipping additional items into car loans and from increasing interestrates on buyers by more than 2.5 percent. It also prevents dealers from selling cars with problems as “certified.” A fourth provision requires dealers to offer consumers the right to return the car within three days but would allow dealers to charge a fee for it.

“We kicked the tires, and while the bill wasn’t as strong as we would have liked, it was certainly road-worthy,” said CALPIRG Legislative Director Steve Blackledge.

Grandma Millie Wins In Court

CALPIRG applauded Attorney General Bill Lockyer’s settlement of $1.52 billion with Enron that resulted from the market manipulation lawsuit in which Enron traders bragged of ripping off “Grandma Millie” in California.

“The settlement is a great first step, but now the Attorney General must fight for consumers in the Enron bankruptcy court, where all those owed money will be fighting for their piece of the pie,” said Steve Blackledge.

Enron’s manipulation was made possible by California’s 1996 deregulation law, which intended to provide consumer choice but resulted in price spikes, blackouts and market manipulation.

“We now know that electricity deregulation was a failed experiment, which is exactly why we urge voters to support Prop. 80 in November, an effort to undo Enron and regulate our electric utilities,” said Blackledge.

Legislature Refuses To Clean Up Elections

Proponents of political reform were delivered dual setbacks this summer as a Senate committee refused to limit campaign contributions on July 13 and an Assembly committee rejected reforms of an election process plagued by partisanship on July 5.

The contribution limit bill (AB 709) by Asm. Lois Wolk (Davis) would have eliminated a loophole that allows uncapped contributions to ballot measures controlled by candidates. Gov. Schwarzenegger, who raised unlimited contributions for the ballot measures he controls, is the latest official to exploit the loophole.

Fair elections bills (SB 11, SB 787) by Sen. Debra Bowen (Marina del Ray) and Sen. Tom McClintock (Thousand Oaks) would have prevented the secretary of state and county elections clerks from taking positions on candidates and ballot measures.

“We had bipartisan support for making elections officials less partisan,” said Blackledge. “In fact, we had bipartisan support for all these measures, but it wasn’t enough to get the job done this year.”