BILL NUMBER: AB 1274	CHAPTERED  07/22/03

	CHAPTER  88
	FILED WITH SECRETARY OF STATE  JULY 22, 2003
	APPROVED BY GOVERNOR  JULY 21, 2003
	PASSED THE SENATE  JULY 7, 2003
	PASSED THE ASSEMBLY  MAY 29, 2003
	AMENDED IN ASSEMBLY  MAY 8, 2003

INTRODUCED BY   Assembly Member Chavez

                        FEBRUARY 21, 2003

   An act to amend Sections 12140 and 12142 of, and to add Section
12142.5 to, the Insurance Code, relating to motor clubs.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1274, Chavez.  Motor clubs.
   Existing law generally regulates motor clubs, and prohibits a
person from rendering motor club service without first obtaining from
the Insurance Commissioner a certificate of authority.  Existing law
defines motor club service as the rendering or procuring of, or
reimbursement for, any specified service in connection with the
ownership, operation, use, or maintenance of a motor vehicle under
certain conditions.  Existing law exempts specified persons and
entities from the operation of these provisions.
   This bill would provide that a person who is engaged in selling or
furnishing discount service, map service, or travel service, as
defined, or miscellaneous service that is incidental to those
services, but who is not engaged in selling or furnishing certain
other services, is not a motor club and is exempt from the operation
of the regulatory provisions described above. The bill would require
the Insurance Commissioner to adopt regulations specifying the types
of miscellaneous service permitted under its provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 12140 of the Insurance Code is amended to read:

   12140.  This part shall not apply to any of the following:
   (a) A duly authorized attorney at law acting in the usual course
of his profession.
   (b) Any admitted insurer.
   (c) Any association of motor carriers.
   (d) Any person who is directly or indirectly engaged, either as
principal or agent, in selling or offering for sale, furnishing, or
procuring any of the services described in Section 12148, 12152, or
12153, or miscellaneous service that augments or is incidental to any
of those services, but who is not directly or indirectly engaged,
either as principal or agent, in selling or offering for sale,
furnishing, or procuring any other service described in this chapter.

  SEC. 2.  Section 12142 of the Insurance Code is amended to read:
   12142.  (a) Except as provided in subdivision (b), a motor club is
a person, directly or indirectly engaged, either as principal or
agent, in selling or offering for sale, furnishing or procuring motor
club service.
   (b) A person who is directly or indirectly engaged, either as
principal or agent, in selling or offering for sale, furnishing, or
procuring any of the services described in Section 12148, 12152, or
12153, or miscellaneous service that augments or is incidental to any
of those services, but who is not directly or indirectly engaged,
either as principal or agent, in selling or offering for sale,
furnishing, or procuring any other service described in this chapter,
is not a motor club.
  SEC. 3.  Section 12142.5 is added to the Insurance Code, to read:
   12142.5.  The commissioner shall adopt reasonable rules and
regulations specifying the types of miscellaneous service permitted
under subdivision (d) of Section 12140 and subdivision (b) of Section
12142.  The rules and regulations shall be adopted, amended, and
repealed in accordance with the procedure provided in Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code.