SACRAMENTO, Calif. -

Despite concern from the Independent Automobile Dealers Association of California about how state legislators still do not have firm classification of what a buy-here, pay-here dealer is, bills are continuing to work their way toward becoming law in the Golden State.

Repeated opposition from IADAC and others has done little to keep a trio of measures from heading toward complete passage before the end of the month, which is lawmakers’ deadline to get bills to the desk of Gov. Jerry Brown.

When lawmakers returned from their summer recess earlier this month, Larry Laskowski, IADAC executive director, reiterated questions he has posed to lawmakers.

“There’s not a definition for a buy-here, pay-here dealer because it’s a business model,” said Laskowski, a dealer for more than 25 years before giving up his independent store to focus on IADAC matters full time.

“It’s not a check box on your DMV application when you’re getting your dealer license that you want to be a buy-here, pay-here dealer. It’s simply a business model,” he continued. “According to the definition they have now, our study says it probably involves 50 percent of the retail dealers just because it’s so broad reaching. Right now they’ve got a big problem with the definition and we don’t have a resolution as of yet.”

Meanwhile, late last week in what the bill’s author said on Twitter are “strong protections for used-car buyers,” the first of a series of measures aimed at regulating BHPH dealers in California received a majority vote from an entire legislative chamber.

After gaining similar support from various committees, the state’s Senate approved AB 1447 on Thursday by a margin of 22-14, prompting the Tweet from Assemblyman Mike Feuer, the bill’s primary sponsor.

Now with Senate approval, the Assembly will have one final vote on whether to push AB 1447 on to Brown for it to become law. Complete legislative approval must occur before the end of the month, and Brown has until Sept. 30 to sign or veto the measure.

To recap, some of the regulations Assembly Bill 1447 would create include:

—Require BHPH dealers to provide a limited warranty that covers most major components and lasts for at least 30 days or 1,000 miles.

—Prohibit BHPH dealers from requiring a buyer to make regular payments in person.

—Require BHPH dealers receive written consent from the buyer prior to selling a vehicle with an electronic tracking device.

—Require BHPH dealers to provide notice to the buyer of the presence of ignition shutdown technology in the vehicle and that such technology be set to provide advance warnings to the driver to help avoid stranding drivers.

Meanwhile, the two other BHPH bills working their way through the approval process are SB 956 and AB 1534. Both are set to be read for a third time before the entire chamber, a process that must finish before a vote can take place.

Senate Bill 956 has three main goals:

—Impose first-ever regulations on dealers offering buy-here, pay-here installment loans by requiring them to obtain a California Finance Lender’s license.

—Limit used-vehicle installment loans to an interest rate of no more than 17.25 percent, which would give California the strongest cap in the nation.

—Change the way BHPH dealers are able to repossess vehicles to include grace periods and make it easier for buyers to reinstate a repossessed unit.

Furthermore, Assembly Bill 1534 received would require a BHPH dealer to display a label on any used vehicle offered for retail sale that states the “reasonable market value” of the unit. The bill would require the label to contain specified information used to determine the vehicle’s reasonable market value and the date the value was determined.

Moreover, AB 1534 would require a BHPH dealer to provide to a prospective buyer of the used vehicle a copy of any information obtained from a nationally recognized pricing guide the dealer utilized to determine the reasonable market value of the vehicle.

Along with IADAC, the National Alliance of Buy-Here, Pay-Here Dealers has been adamant in opposition to all of these measures.

“Based upon estimates I have seen, California will lose over $70 million in sales tax revenue if BHPH does not survive the adverse regulatory environment,” NABD founder Ken Shilson projected.

“In addition, transportation will be unavailable to unbankable consumers who won’t be able to get to and from jobs,” he continued. “This will increase unemployment and be detrimental to the local economy. The economic impact of these initiatives should be carefully considered before enacting these new regulations.”

Should all three bills become California law, Laskowski fears that competition will dwindle because the measures will significantly hurt dealers such as Gus Camacho. Laskowski recapped that Camacho, who operates several independent stores in southern California, testified during several committee hearings as one of IADAC’s most respected members.

“They try to get people bought at a bank and when there are no banks to accept the loan they’ll go ahead and carry it in house,” Laskowski said about Camacho’s store model. “He said their rate is around 24 percent for the BHPH stuff, and he was quite frank in the committee hearing that he buys his money at 12.5 percent. The 17-percent rate cap would not allow enough of a margin to be profitable. He would have to close that portion of his business.”

Laskowski indicated that Camacho told lawmakers he would have to terminate about half of his workforce of about 80 employees if the bills became law.

“It didn’t seem to be too important,” Laskowski surmised. “The fact that Camacho is recognized as a good guy in the industry and would not able to continue, that means you’re going to lose a lot of good dealers. You’re not going to have much left for those credit-challenged consumers to choose from.”