BILL NUMBER: AB 501 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 10, 2013
AMENDED IN SENATE JUNE 11, 2013
AMENDED IN ASSEMBLY MAY 13, 2013
AMENDED IN ASSEMBLY APRIL 16, 2013
INTRODUCED BY Assembly Member Nazarian
FEBRUARY 20, 2013
An act to amend Section 25250.51 of the Health and Safety Code, to
amend Section 42950 of the Public Resources Code, and to amend
Sections 12200, 12204, and 34601 of, the Vehicle Code, relating to
vehicles.
LEGISLATIVE COUNSEL'S DIGEST
AB 501, as amended, Nazarian. Vehicles.
(1) Existing law prohibits the sale of motor brake friction
materials containing specified constituents in excess of specified
concentrations. Existing law, however, until December 31, 2023,
permits motor vehicle manufacturers and distributors, wholesalers, or
retailers to sell brake friction materials that are not certified as
compliant with that provision solely for the purpose of depletion of
inventories.
This bill would additionally permit motor vehicle dealers to
continue to sell or offer for sale brake friction material not
certified as compliant, as specified, if the brake friction material
was installed before the vehicle was acquired by the dealer.
(2) Existing law defines tire broker to mean a person that
arranges for the shipment of used or waste tires to or from a site
located within the state, or through the state, as defined. Existing
law requires a tire broker to submit periodic information to the
department on the used or waste tires arranged to be shipped to the
tire broker to, from, or through the state.
This bill would exclude a vehicle dealer, as defined,
from the definition of a tire broker a tire retailer
primarily engaged in the retail sale, service, and installation of
tires on customer vehicles, or a vehicle dealer, as defined
.
(3) Existing law establishes the
Consumer Motor Vehicle Recovery Corporation (recovery corporation) to
provide payments to consumers on eligible claims, including, but not
limited to, a claim based on a vehicle dealer or lessor-retailer's
failure to remit license or registration fees or failure to pay
proceeds of a consignment sale, subject to certain requirements and
limitations. Existing law permits a consumer to file an
application with the recovery corporation for the payment of the
consumer's eligible claim if a dealer or lessor-retailer against whom
the claim is asserted has ceased selling and leasing motor vehicles
to the general public or has become subject to a petition in
bankruptcy. Existing law, for purposes of specified
provisions, defines "eligible claim" to mean an unsatisfied claim for
economic loss, that is not barred by the statutes of limitation and
that accrues, as specified, to, among other things, remit license or
registration fees received or contractually obligated to be paid from
a consumer to the department, or pay the amount specified in a
consignment agreement to a consumer after the sale of a consigned
vehicle.
This bill would expand the definition of "eligible claim,"
for purposes of those provisions, to include providing
a claim based on the failure of a vehicle dealer or
lessor-retailer to provide a consumer who purchased a vehicle
from the dealer or lessor-retailer with good title to the vehicle,
free from any security interest or other lien, encumbrance, or claim,
unless otherwise clearly and conspicuously provided for by
the written sale agreement, and to include paying as
specified, or pay to a third party any amount received from, or
contractually obligated to be paid by, a consumer for insurance,
service contracts, or goods or services purchased through the dealer
or lessor-retailer and to be provided by the third party.
(4) Existing law permits a consumer to file an application with
the recovery corporation for the payment of the consumer's eligible
claim if a dealer or lessor-retailer against whom the claim is
asserted has ceased selling and leasing motor vehicles to the general
public or has become subject to a petition in bankruptcy.
This bill would require, require the
consumer to provide specified information if the eligible claim
is based on the failure to provide good title, the
application to be accompanied by a statement from the legal owner or
other claimant of the amount, if any, that he or she received from
the dealer or lessor-retailer. The bill would require the eligible
claim to be limited to the remaining dollar amount necessary to
discharge the valid security interest, lien, encumbrance, or other
clouding title to the vehicle.
This bill would require, if the eligible claim is based
on the failure to pay third parties for insurance, service contracts,
or goods or services, the application to be accompanied by a
statement from the third party of the amount, if any, that he or she
received from the dealer or lessor-retailer. The bill would require
that the eligible claim be limited to the difference between the
dollar amount the consumer paid or was contractually obligated to pay
to the dealer or lessor-retailer for the insurance, service
contracts, or goods or services purchased through the dealer or
lessor-retailer and to be provided by the third party and the dollar
amount actually received by the third party from the dealer or
lessor-retailer for the insurance, service contracts, or goods or
services. title or the failure to pay 3rd parties for
insurance, service contracts, or goods or services.
(5)
(4) Existing law excludes from the definition of
commercial motor vehicle, for purposes of certain provisions,
specified trucks and truck tractors with a gross vehicle weight
rating of less than 26,001 pounds, when used solely to tow specified
trailers. Existing law prohibits a motor carrier of property from
operating a commercial motor vehicle on any public highway in this
state, unless it has, among other things, registered with the
department its carrier identification number, as specified, and holds
a valid motor carrier permit issued to that motor carrier by the
department.
This bill would additionally exclude from the definition of
commercial motor vehicle specified trucks and truck tractors, with a
gross vehicle rating of less than 26,0001 pounds, operated solely to
tow specified trailers, including trailers designed to transport
watercraft. This bill would also exclude from the definition of
commercial motor vehicle specified truck and truck tractors, with a
gross vehicle weight rating of less than 16,001 pounds, operated
singly in noncommercial use.
(6)
(5) This bill would make other technical,
nonsubstantive, conforming, and clarifying changes.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25250.51 of the Health and Safety Code is
amended to read:
25250.51. (a) On and after January 1, 2014, any motor vehicle
brake friction materials containing any of the following constituents
in an amount that exceeds the following concentrations shall not be
sold in this state:
(1) Cadmium and its compounds: 0.01 percent by weight.
(2) Chromium (VI)-salts: 0.1 percent by weight.
(3) Lead and its compounds: 0.1 percent by weight.
(4) Mercury and its compounds: 0.1 percent by weight.
(5) Asbestiform fibers: 0.1 percent by weight.
(b) Motor vehicle manufacturers and distributors, wholesalers, or
retailers of replacement brake friction materials may continue to
sell or offer for sale brake friction materials not certified as
compliant with subdivision (a) solely for the purpose of depletion of
inventories until December 31, 2023.
(c) Notwithstanding subdivision (b), motor vehicle dealers may
continue to sell or offer for sale brake friction material not
certified as compliant with subdivision (a) if the brake friction
material was installed on a vehicle before the vehicle was acquired
by the dealer.
SEC. 2. Section 42950 of the Public Resources Code is amended to
read:
42950. For purposes of this chapter, the following definitions
apply:
(a) "Agricultural purposes" means the use of waste tires as
bumpers on agricultural equipment or as a ballast to maintain covers
or structures at an agricultural site.
(b) (1) "Altered waste tire" means a waste tire that has been
baled, shredded, chopped, or split apart. "Altered waste tire" does
not mean crumb rubber.
(2) "Alteration" or "altering," with reference to a waste tire,
means an action that produces an altered waste tire.
(c) "Applicant" means a person seeking to register as a waste tire
hauler.
(d) "Baled tire" means either a whole or an altered tire that has
been compressed and then secured with a binding material for the
purpose of reducing its volume.
(e) "Common carrier" means a "common carrier," as defined in
Section 211 of the Public Utilities Code.
(f) "Crumb rubber" means rubber granules derived from a waste tire
that are less than or one-quarter inch or six millimeters in size.
(g) "Repairable tire" means a worn, damaged, or defective tire
that is retreadable, recappable, or regrooveable, or that can be
otherwise repaired to return the tire to use as a vehicle tire, and
that meets the applicable requirements of the Vehicle Code and Title
13 of the California Code of Regulations.
(h) "Scrap tire" means a worn, damaged, or defective tire that is
not a repairable tire.
(i) "Tire broker" means a person that arranges for the shipment of
used or waste tires to or from a site located within the state, or
through the state, as that term may be further defined by the
department by regulation. "Tire broker" does not include a
tire retailer primarily engaged in the retail sale, service, and
installation of tires on customer vehicles, or a vehicle
dealer, as defined in Section 285 of the Vehicle Code.
(j) "Tire derived product" means material that meets both of the
following requirements:
(1) Is derived from a process using waste tires or waste tire
equivalents as a feedstock. A process using waste tires or waste tire
equivalents includes, but is not limited to, shredding, crumbing, or
chipping.
(2) Has been sold and removed from the processing facility.
(k) "Used tire" means a tire that meets both of the following
requirements:
(1) The tire is no longer mounted on a vehicle but is still
suitable for use as a vehicle tire.
(2) The tire meets the applicable requirements of the Vehicle Code
and of Title 13 of the California Code of Regulations.
(l) "Waste tire" means a tire that is no longer mounted on a
vehicle and is no longer suitable for use as a vehicle tire due to
wear, damage, or deviation from the manufacturer's original
specifications. A waste tire includes a repairable tire, scrap tire,
and altered waste tire, but does not include a tire derived product,
crumb rubber, or a used tire.
(m) "Waste tire generator" or "waste tire generating business"
means a person as defined by Section 40170 whose act or process
produces waste tires as defined in Section 42807, causes a waste tire
hauler to transport those waste tires, or otherwise causes waste
tires to become subject to regulation. "Waste tire generator" or
"waste tire generating business" does not include a person who
transports 10 or fewer waste tires at any one time.
SEC. 3. Section 12200 of the Vehicle Code is amended to read:
12200. The following definitions apply to this chapter:
(a) "Application" means an application to the recovery corporation
for the payment of an eligible claim from the recovery fund that is
filed with the recovery corporation after January 1, 2009.
(b) "Consumer" means a person who either (1) purchased or leased,
or became obligated to purchase or lease, a motor vehicle to be used
primarily for personal, family, or household purposes from a dealer
or lessor-retailer licensed under this code, or (2) consigned for
sale a motor vehicle that was used primarily for personal, family, or
household purposes to a dealer licensed under this code.
(c) "Eligible claim" means an unsatisfied claim for economic loss,
not barred by the statutes of limitation, that accrues after July 1,
2008, as a result of the failure of a dealer licensed under this
code, or if applicable, a lessor-retailer licensed under this code,
to do any of the following:
(1) Remit license or registration fees received or contractually
obligated to be paid from a consumer to the department.
(2) Pay to the legal owner of a vehicle transferred as a trade-in
by a consumer to the dealer or lessor-retailer the amount necessary
to discharge the prior credit balance owed to the legal owner.
(3) Pay to the lessor registered in accordance with Section 4453.5
of a vehicle transferred as a trade-in by a consumer to the dealer
or lessor-retailer the amount the dealer or lessor-retailer agreed to
pay to the lessor.
(4) Pay the amount specified in a consignment agreement to a
consumer after the sale of a consigned vehicle.
(5) Provide a consumer who purchased a vehicle from the dealer or
lessor-retailer with good title to the vehicle, free from any
security interest or other lien, encumbrance, or claim, unless
otherwise clearly and conspicuously provided for by the written sale
agreement.
(6) Pay to a third party any amount received from, or
contractually obligated to be paid by, a consumer for insurance,
service contracts, or goods or services purchased through the dealer
or lessor-retailer and to be provided by the third party.
(d) "Participant" means a dealer licensed under this code or a
lessor-retailer licensed under this code.
(e) "Recovery corporation" means the Consumer Motor Vehicle
Recovery Corporation.
(f) "Recovery fund" means the consumer recovery fund established
by the recovery corporation pursuant to Section 12203 for the payment
of eligible claims.
SEC. 4. Section 12204 of the Vehicle Code is amended to read:
12204. (a) A consumer may file an application with the recovery
corporation for the payment of the consumer's eligible claim if a
dealer or lessor-retailer against whom the claim is asserted has
ceased selling and leasing motor vehicles to the general public or
has become subject to a petition in bankruptcy.
(b) (1) The application shall be verified and shall set forth all
of the following information:
(A) The consumer's name, address, and telephone number.
(B) The amount of the eligible claim.
(C) A description of the circumstances demonstrating an eligible
claim.
(D) A statement indicating the consumer's belief that the dealer
or lessor-retailer has ceased selling and leasing motor vehicles to
the general public or has become subject to a petition in bankruptcy
and the reasons for this belief.
(E) A statement indicating what action, if any, the applicant has
taken to recover the amount of the eligible claim.
(F) A statement indicating that the consumer's application for
payment does not include any amount for which the consumer has
obtained recovery under the dealer's bond required by Section 11710.
(2) Nothing in this chapter shall be construed to require a
consumer to bring a civil action to obtain recovery, file a
bankruptcy claim, or file a crime report with a law enforcement
agency in order to obtain payment of an eligible claim submitted to
the recovery corporation.
(c) The application shall be accompanied by a copy of the
agreement between the consumer and the dealer or lessor-retailer,
unless the agreement is unnecessary to the recovery corporation's
determination of the validity of the claim.
(d) If the eligible claim is based on the failure to remit license
or registration fees, the application shall be accompanied by
evidence demonstrating that the consumer paid money or other
consideration for the fees, or became obligated to pay the fees, and
that the fees had not been remitted. The eligible claim shall be
limited to the dollar amount of the license or registration fees not
remitted and a late charge or penalty.
(e) If the eligible claim is based on the failure to pay the
proceeds of a consignment sale, the application shall be accompanied
by the consignment agreement, evidence that the consigned vehicle was
sold, and by the consumer's verified statement that the consumer did
not receive the portion of the proceeds of the sale to which the
consumer was entitled. The eligible claim is limited to the dollar
amount specified in a written consignment agreement to be paid to the
consignor.
(f) If the eligible claim is based on the failure to pay the legal
owner of the consumer's trade-in vehicle, the application shall be
accompanied by a statement from the legal owner of the amount, if
any, that he or she received from the dealer or lessor-retailer. The
eligible claim is limited to the dollar amount necessary to discharge
the credit balance owing on the trade-in vehicle.
(g) If the eligible claim is based on the failure to pay the
lessor of the consumer's trade-in vehicle, the application shall be
accompanied by a statement from the lessor of the amount, if any,
that the lessor received from the dealer or lessor-retailer. The
eligible claim is limited to the dollar amount necessary to pay the
lessor the total amount that the dealer or lessor-retailer agreed
with the consumer to pay the lessor.
(h) If the eligible claim is based on the failure to provide good
title, the application shall be accompanied by a statement from the
legal owner or other claimant of the amount, if any, that he or she
received from the dealer or lessor-retailer. The eligible claim is
limited to the remaining dollar amount necessary to discharge the
valid security interest, lien, encumbrance, or other claim clouding
title to the vehicle.
(i) If the eligible claim is based on the failure to pay third
parties for insurance, service contracts, or goods or services, the
application shall be accompanied by a statement from the third party
of the amount, if any, that he or she received from the dealer or
lessor-retailer. The eligible claim is limited to the difference
between the dollar amount the consumer paid or was contractually
obligated to pay to the dealer or lessor-retailer for the insurance,
service contracts, or goods or services purchased through the dealer
or lessor-retailer and to be provided by the third party and the
dollar amount actually received by the third party from the dealer or
lessor-retailer for the insurance, service contracts, or goods or
services.
(j) The recovery corporation may require reasonable additional
information designed to facilitate payment of eligible claims.
(k) (1) For claims that have accrued on or after July 1, 2008, and
before January 1, 2009, the application shall be filed within 18
months of the date upon which the dealer or lessor-retailer ceased
selling or leasing motor vehicles to the general public or became
subject to a petition in bankruptcy.
(2) For claims that have accrued on or after January 1, 2009, the
application shall be filed within one year of the date upon which the
dealer or lessor-retailer ceased selling or leasing motor vehicles
to the general public or became subject to a petition in bankruptcy.
SEC. 5. Section 34601 of the Vehicle Code is amended to read:
34601. (a) As used in this division, "motor carrier of property"
means any person who operates any commercial motor vehicle as defined
in subdivision (c). "Motor carrier of property" does not include a
household goods carrier, as defined in Section 5109 of the Public
Utilities Code, a household goods carrier transporting used office,
store, and institution furniture and fixtures under its household
goods carrier permit pursuant to Section 5137 of the Public Utilities
Code, persons providing only transportation of passengers, or a
passenger stage corporation transporting baggage and express upon a
passenger vehicle incidental to the transportation of passengers.
(b) As used in this division, "for-hire motor carrier of property"
means a motor carrier of property as defined in subdivision (a) who
transports property for compensation.
(c) (1) As used in this division, except as provided in paragraph
(2), a "commercial motor vehicle" means any self-propelled vehicle
listed in subdivisions (a), (b), (f), (g), and (k) of Section 34500,
any motortruck of two or more axles that is more than 10,000 pounds
gross vehicle weight rating, and any other motor vehicle used to
transport property for compensation.
(2) As used in this division, "commercial motor vehicle" does not
include any of the following:
(A) Vehicles identified in subdivision (f) of Section 34500, if
the gross vehicle weight rating of the towing vehicle is 10,000
pounds or less.
(B) Vehicles identified in subdivision (g) of Section 34500, if
the hazardous material transportation does not require the display of
placards under Section 27903, a license under Section 32000.5, or a
hazardous waste transporter registration under Section 25163 of the
Health and Safety Code, and the vehicle is not operated in commercial
use.
(C) Vehicles operated by a household goods carrier, as defined in
Section 5109 of the Public Utilities Code, under the household goods
carrier permit pursuant to Section 5137 of that code.
(D) Vehicles operated by a household goods carrier to transport
used office, store, and institution furniture and fixtures under its
household goods carrier permit pursuant to Section 5137 of the Public
Utilities Code.
(E) Pickup trucks as defined in Section 471, if the conditions in
subparagraphs (A) and (B) are also met.
(F) Two-axle daily rental trucks with a gross vehicle weight
rating of less than 26,001 pounds, when operated in noncommercial
use.
(G) Motortrucks or two-axle truck tractors, with a gross vehicle
weight rating of less than 26,001 pounds, operated solely to tow a
camp trailer, trailer coach, fifth-wheel travel trailer, trailer
designed to transport watercraft, or utility trailer. Vehicle
combinations described in this subparagraph are not subject to
Section 27900, 34501.12, or 34507.5.
(H) Motortrucks or two-axle truck tractors, with a gross vehicle
weight rating of less than 16,001 pounds, operated singly in
noncommercial use.
(d) For purposes of this chapter, "private carrier" means a motor
carrier of property, who transports only his or her own property,
including, but not limited to, the delivery of goods sold by that
carrier.