California Code of Regulations
TITLE 16. Professional And Vocational Regulations
Division 33.1 Arbitration Certification Program

Article 4: Certification Procedure

3399.1. Application for Certification:

(a) Upon receiving a request for an application for certification, the Arbitration Certification Program will inform the prospective applicant that the Arbitration Certification Program is available to confer with the prospective applicant in advance of the filing of an application for the purpose of discussing questions relating to the application. However, no application shall be decided in advance of filing.

(b)An applicant seeking certification of an arbitration program shall file with the Arbitration Certification Program an application with all information and materials required by this subchapter. The application shall consist of (1) a completed "Application for Certification" following in the format prescribed in Appendix A, signed by or on behalf of each party to the application, and (2) the materials required by Section 3399.2 and Appendix A. The application need not include any confidential or proprietary data; provided, however, that the applicant shall have the burden of demonstrating that the arbitration program is in substantial compliance with Civil Code Section 1793.22(d), Chapter 9 of Division 1 of the Business and Professions Code, and this subchapter.

(c)Within 30 days after receipt of the application, the Arbitration Certification Program will both acknowledge receipt of the application and notify the applicant whether or not the application is complete. If the application is not complete, the Arbitration Certification Program will state what additional information or materials must be provided. If the applicant does not provide the information and materials requested by the Arbitration Certification Program within 30 days, the Arbitration Certification Program may deem the application as withdrawn.

(d)After receipt of the application, the Arbitration Certification Program may, in its discretion, schedule an informal conference with the applicant to discuss the application, the accompanying materials and information, and any additional materials and information that may be required by this subchapter. The informal conference is not an evidentiary hearing or a forum for the determination whether certification is appropriate.

(e)After the Arbitration Certification Program has accepted the application for certification as complete, the Arbitration Certification Program will conduct a review of the arbitration program described in the application, which will include one or more on-site inspections of any program that is already operating, to determine whether the certification which is requested should be granted.

(f)The Arbitration Certification Program will make a determination whether to certify an arbitration program or to deny certification not later than 90 days after the date the Arbitration Certification Program accepts the application for certification as complete.

(g)If the Arbitration Certification Program determines that the arbitration program is in substantial compliance with Civil Code Section 1793.22(d), Chapter 9 of Division 1 of the Business and Professions Code, and this subchapter, the Arbitration Certification Program will certify the arbitration program.

(h)If the Arbitration Certification Program determines that the arbitration program is not in substantial compliance with Civil Code Section 1793.22(d), Chapter 9 of Division 1 of the Business and Professions Code, or this subchapter, the Arbitration Certification Program will deny certification, and will state, in writing, the reasons for the denial and the modifications in the operation of the program that are required in order for the program to be certified.

(i)If the Arbitration Certification Program denies certification of the arbitration program, the applicant may either reapply for certification or request a hearing. A request for a hearing shall be filed with the Arbitration Certification Program within 30 days after service of the notice of denial.

Note: Authority cited: Sections 472.1(b) and (c), and 472.4(f), Business and Professions Code. Reference: Sections 472.1(a) and (c), and 472.2 Business and Professions Code; and Sections 360.5 and 363, Financial Code.

3399.2 Materials to Accompany Application

(a)The application shall be accompanied by the following materials:

(1) The arbitration program's written operating procedures (Section 3398.3(a)).
(2) All other written manuals, publications and documents prepared by or for the manufacturer or the arbitration program, or either of them, which constitute or describe the arbitration program's operating procedures in whole or in part, including but not limited to the policies and procedures that implement this subchapter.
(3) All written agreements between the manufacturer and the arbitration program (including exchanges of correspondence) which define the relationship between the manufacturer and the arbitration program, including but not limited to agreements relating to handling and referring disputes; responding to requests from the program, the manufacturer or the consumer for information; implementing the decisions of the program; and responding to complaints about the decision or the operation of the arbitration program.
(4) All written warranties on new motor vehicles offered by the manufacturer for sale or lease in California at the time the manufacturer has applied for certification; and all owner's manuals, books, pamphlets and other materials provided by the manufacturer to consumers which describe the manufacturer's current written warranties, the protections and benefits they provide to consumers, the steps which consumers must follow to obtain warranty service, or the procedures used by the manufacturer for handling complaints from consumers regarding vehicles sold or leased in California. Where documents are substantially similar for several models of vehicles, the applicant need only submit one example of each document, provided that the applicant clearly identifies the models to which the exemplar applies.
(5) All published descriptions of the arbitration program, its purposes, or its availability and use, provided to consumers by either the manufacturer or the arbitration program.
(6) Examples of the notices, disclosures and other documents prescribed by Sections 3397.2(a), 3398.2(h), 3398.4(c), and 3398.12(a), and of any disclosures given pursuant to Civil Code Sections 1793.22(b) or (c).

(b) The application shall include an index of the materials that accompany the application.

Note: Authority cited: Sections 472.1(c) and 472.4(f), Business and Professions Code. Reference: 16 CFR Section 703.5(a).

3399.3 Audits of Arbitration Programs - REPEALED JULY 1996

3399.4 Reports to the Arbitration Certification Program by Arbitration Programs

(a) The arbitration program shall notify the Arbitration Certification Program in writing of any material changes in the information or materials submitted in or with the application for certification or subsequently at the request of the Arbitration Certification Program, and shall do so either before or within a reasonable time after the change becomes effective.

(b) The arbitration program shall provide to the Arbitration Certification Program, six months after certification and annually thereafter, a report on disputes closed during the reporting period, which shall contain the following information in the case of each dispute (including disputes over which the program did not exercise jurisdiction):

(1) The name, address, and telephone number of the consumer.
(2) The name of the manufacturer of the vehicle.
(3) The office where the dispute was processed.
(4) The number or other identification of the dispute used by the process, if one exists.
(5) With respect to each dispute:

(A) the date when notification of the dispute was received by the program;
(B)the dates of all meetings held to decide the dispute;
(C)the date of decision of the arbitrator;
(D)the fact and date of performance of the decision by the manufacturer; and
(E)the elapsed time in days between (A) and (C).

(6) The nature of the consumer's request for relief categorized by one or more of the following:

(A) repair;
(B) replacement;
(C) return and restitution;
(D) either replacement or return and restitution;
(E) reimbursement of expenses;
(F) other.

(7) The nature of the decision or decisions categorized by one or more of the following:

(A) repair;
(B) replacement;
(C) return and restitution;
(D) either replacement or return and restitution;
(E) reimbursement of expenses;
(F) no relief;
(G) other.

(8) Any report of any information required by this subchapter (other than the annual audit required under Section 3399.3), or any portion thereof, may be submitted in electronic form compatible with the Arbitration Certification Program's computer system.

Note: Authority cited: Sections 472.1(c) and (d), 472.3(a), and 472.4(f), Business and Professions Code. Reference: Sections 472.1(b) and 472.4(f), Business and Professions Code; 16 CFR Section 703.6.

3399.5 Review of Program Operations by the Arbitration Certification Program

(a) The Arbitration Certification Program will conduct a review of the operation and performance of each certified program at least once annually. The review may consist of:

(1) An examination of updates of all information and materials required in the application and periodic reports.
(2) One or more on-site inspections of the program's facilities, records and operations, including the records of individual disputes, interviews of the program's staff and arbitrators, and attendance at meetings held to decide disputes.
(3) Evaluation of the qualifications, training, and performance of arbitrators.
(4) Investigation and analysis of complaints from any source regarding the operation of the program.
(5) An evaluation of consumer satisfaction based on the results of an annual random mail or telephone survey by the Arbitration Certification Program.
(6) An evaluation of other information obtained through the Arbitration Certification Program's monitoring and inspection or which is relevant to continuing certification.

(b) All of the statistical summaries and other records of the arbitration program shall be available for inspection and copying by the Arbitration Certification Program.

(c) The arbitration program, on request by the Arbitration Certification Program, shall forward to the Arbitration Certification Program, without charge, a copy of all or any portion of the records of any individual dispute or disputes.

(d) The Arbitration Certification Program may, in its discretion, schedule an informal conference with an arbitration program to discuss an apparent lack of compliance with Civil Code Section 1793.22(d), Chapter 9 of Division 1 of the Business and Professions Code, or this subchapter, and any modifications in the operation of the program that the Arbitration Certification Program believes may be required in order for the program to be in substantial compliance. The informal conference is not an evidentiary hearing or a forum for the determination whether certification or decertification is appropriate.

Note: Authority cited: Sections 472.1(b), 472.3(a), and 472.4(f), Business and Professions Code. Reference: Sections 472.3(a) and 472.4(a), Business and Professions Code; Section 363, Financial Code.

3399.6 Decertification

(a) If it appears to the Arbitration Certification Program that an arbitration program is not in substantial compliance with Civil Code Section 1793.22(d), Chapter 9 of Division 1 of the Business and Professions Code, or this subchapter, the Arbitration Certification Program may issue a written notice of causes for decertification. The notice will specify the reasons for the notice and prescribe the modifications in the operation of the arbitration program which, if timely made, will enable the program to retain its certification. The written notice will be served on the party or parties to the original application designated to receive notices from the Arbitration Certification Program.

(b) No arbitration program shall be decertified unless and until either: (1) a decision to decertify is made by the Arbitration Certification Program pursuant to the notice of causes for decertification after a hearing under subdivision (c) of this section, or (2) the expiration of 180 days after service of the notice of causes for decertification as provided in subdivision (d) of this section.

(c) The entity or entities on whom service of the notice of causes for decertification is made, or any of them, shall have a right to a hearing upon written request filed with the Arbitration Certification Program within 30 days after service of the notice. The date of service shall be deemed to be the date of transmittal by the Arbitration Certification Program. If a request is made, the program will be decertified only if a decision to decertify the program is made by the Arbitration Certification Program after a hearing. The Arbitration Certification Program will conclude the decertification proceedings within 180 calendar days after service of its written notice of causes for decertification.

(d) The decertification shall become effective 180 days after the notice is served. However, the Arbitration Certification Program will withdraw the notice prior to its effective date if the Arbitration Certification Program determines, after a public hearing, that the entity or entities have made the modifications in the operation of the program required in the notice of decertification, and the program is in substantial compliance with the requirements of Civil Code Section 1793.22(d), Chapter 9 of Division 1 of the Business and Professions Code, and this subchapter.

(e) Any person may request copies of all notices and decisions issued by the Arbitration Certification Program under this section.

Note: Authority cited: Section 472.4(f), Business and Professions Code. Reference: Section 472.3(c), Business and Professions Code; Federal Constitution, 14th Amendment; California Constitution, Art. I, Section 7; see Witkin, Calif. Proc., Const. Law, Sections 518-577, and Kash v. Los Angeles (1977) 19 Cal. 3d 294, 138 Cal. Rptr. 53.an