Amended in Senate August 12, 2013

Amended in Senate July 10, 2013

Amended in Senate June 11, 2013

Amended in Assembly May 13, 2013

Amended in Assembly April 16, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 501


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 excludebegin insert a tire retailer primarily engaged in the retail sale, service, and installation of new tires on customer vehicles, andend insert a vehicle dealer, as defined, from the definition of a tire broker.

(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.

This bill would expand the definition of “eligible claim,” for purposes of those provisions, to include 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, as specified, or pay to abegin delete thirdend deletebegin insert 3rdend insert 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 thebegin delete thirdend deletebegin insert 3rdend insert party.

This bill would require the consumer to provide specified information if the eligible claim is based on the failure to provide good title or the failure to pay 3rd parties for insurance, service contracts, or goods or services.

(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.

(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:

P3    1

SECTION 1.  

Section 25250.51 of the Health and Safety Code
2 is amended to read:

3

25250.51.  

(a) On and after January 1, 2014, any motor vehicle
4brake friction materials containing any of the following constituents
5in an amount that exceeds the following concentrations shall not
6be sold in this state:

7(1) Cadmium and its compounds: 0.01 percent by weight.

8(2) Chromium (VI)-salts: 0.1 percent by weight.

9(3) Lead and its compounds: 0.1 percent by weight.

10(4) Mercury and its compounds: 0.1 percent by weight.

11(5) Asbestiform fibers: 0.1 percent by weight.

12(b) Motor vehicle manufacturers and distributors, wholesalers,
13or retailers of replacement brake friction materials may continue
14to sell or offer for sale brake friction materials not certified as
15compliant with subdivision (a) solely for the purpose of depletion
16of inventories until December 31, 2023.

17(c) Notwithstanding subdivision (b), motor vehicle dealers may
18continue to sell or offer for sale brake friction material not certified
19as compliant with subdivision (a) if the brake friction material was
20installed on a vehicle before the vehicle was acquired by the dealer.

21

SEC. 2.  

Section 42950 of the Public Resources Code is
22amended to read:

23

42950.  

For purposes of this chapter, the following definitions
24apply:

P4    1(a) “Agricultural purposes” means the use of waste tires as
2bumpers on agricultural equipment or as a ballast to maintain
3covers or structures at an agricultural site.

4(b) (1) “Altered waste tire” means a waste tire that has been
5baled, shredded, chopped, or split apart. “Altered waste tire” does
6not mean crumb rubber.

7(2) “Alteration” or “altering,” with reference to a waste tire,
8means an action that produces an altered waste tire.

9(c) “Applicant” means a person seeking to register as a waste
10tire hauler.

11(d) “Baled tire” means either a whole or an altered tire that has
12been compressed and then secured with a binding material for the
13purpose of reducing its volume.

14(e) “Common carrier” means a “common carrier,” as defined
15in Section 211 of the Public Utilities Code.

16(f) “Crumb rubber” means rubber granules derived from a waste
17tire that are less than or one-quarter inch or six millimeters in size.

18(g) “Repairable tire” means a worn, damaged, or defective tire
19that is retreadable, recappable, or regrooveable, or that can be
20otherwise repaired to return the tire to use as a vehicle tire, and
21 that meets the applicable requirements of the Vehicle Code and
22Title 13 of the California Code of Regulations.

23(h) “Scrap tire” means a worn, damaged, or defective tire that
24is not a repairable tire.

25(i) “Tire broker” means a person that arranges for the shipment
26of used or waste tires to or from a site located within the state, or
27through the state, as that term may be further defined by the
28department by regulation. “Tire broker” does not includebegin insert a tire
29retailer primarily engaged in the retail sale, service, and
30installation of new tires on customer vehicles, or end insert
a vehicle dealer,
31as defined in Section 285 of the Vehicle Code.

32(j) “Tire derived product” means material that meets both of
33the following requirements:

34(1) Is derived from a process using waste tires or waste tire
35equivalents as a feedstock. A process using waste tires or waste
36tire equivalents includes, but is not limited to, shredding, crumbing,
37or chipping.

38(2) Has been sold and removed from the processing facility.

39(k) “Used tire” means a tire that meets both of the following
40requirements:

P5    1(1) The tire is no longer mounted on a vehicle but is still suitable
2for use as a vehicle tire.

3(2) The tire meets the applicable requirements of the Vehicle
4Code and of Title 13 of the California Code of Regulations.

5(l) “Waste tire” means a tire that is no longer mounted on a
6vehicle and is no longer suitable for use as a vehicle tire due to
7wear, damage, or deviation from the manufacturer’s original
8specifications. A waste tire includes a repairable tire, scrap tire,
9and altered waste tire, but does not include a tire derived product,
10crumb rubber, or a used tire.

11(m) “Waste tire generator” or “waste tire generating business”
12means a person as defined by Section 40170 whose act or process
13produces waste tires as defined in Section 42807, causes a waste
14tire hauler to transport those waste tires, or otherwise causes waste
15tires to become subject to regulation. “Waste tire generator” or
16“waste tire generating business” does not include a person who
17transports 10 or fewer waste tires at any one time.

18

SEC. 3.  

Section 12200 of the Vehicle Code is amended to read:

19

12200.  

The following definitions apply to this chapter:

20(a) “Application” means an application to the recovery
21corporation for the payment of an eligible claim from the recovery
22fund that is filed with the recovery corporation after January 1,
232009.

24(b) “Consumer” means a person who either (1) purchased or
25leased, or became obligated to purchase or lease, a motor vehicle
26to be used primarily for personal, family, or household purposes
27from a dealer or lessor-retailer licensed under this code, or (2)
28consigned for sale a motor vehicle that was used primarily for
29personal, family, or household purposes to a dealer licensed under
30this code.

31(c) “Eligible claim” means an unsatisfied claim for economic
32loss, not barred by the statutes of limitation, that accrues after July
331, 2008, as a result of the failure of a dealer licensed under this
34code,begin delete orend deletebegin insert or,end insert if applicable, a lessor-retailer licensed under this code,
35to do any of the following:

36(1) Remit license or registration fees received or contractually
37obligated to be paid from a consumer to the department.

38(2) Pay to the legal owner of a vehicle transferred as a trade-in
39by a consumer to the dealer or lessor-retailer the amount necessary
40to discharge the prior credit balance owed to the legal owner.

P6    1(3) Pay to the lessor registered in accordance with Section
24453.5 of a vehicle transferred as a trade-in by a consumer to the
3dealer or lessor-retailer the amount the dealer or lessor-retailer
4agreed to pay to the lessor.

5(4) Pay the amount specified in a consignment agreement to a
6consumer after the sale of a consigned vehicle.

7(5) Provide a consumer who purchased a vehicle from the dealer
8or lessor-retailer with good title to the vehicle, free from any
9security interest or other lien, encumbrance, or claim, unless
10otherwise clearly and conspicuously provided for by the written
11sale agreement.

12(6) Pay to a third party any amount received from, or
13contractually obligated to be paid by, a consumer for insurance,
14service contracts, or goods or services purchased through the dealer
15or lessor-retailer and to be provided by the third party.

16(d) “Participant” means a dealer licensed under this code or a
17lessor-retailer licensed under this code.

18(e) “Recovery corporation” means the Consumer Motor Vehicle
19Recovery Corporation.

20(f) “Recovery fund” means the consumer recovery fund
21established by the recovery corporation pursuant to Section 12203
22for the payment of eligible claims.

23

SEC. 4.  

Section 12204 of the Vehicle Code is amended to read:

24

12204.  

(a) A consumer may file an application with the
25recovery corporation for the payment of the consumer’s eligible
26claim if a dealer or lessor-retailer against whom the claim is
27asserted has ceased selling and leasing motor vehicles to the general
28public or has become subject to a petition in bankruptcy.

29(b) (1) The application shall be verified and shall set forth all
30of the following information:

31(A) The consumer’s name, address, and telephone number.

32(B) The amount of the eligible claim.

33(C) A description of the circumstances demonstrating an eligible
34claim.

35(D) A statement indicating the consumer’s belief that the dealer
36or lessor-retailer has ceased selling and leasing motor vehicles to
37the general public or has become subject to a petition in bankruptcy
38and the reasons for this belief.

39(E) A statement indicating what action, if any, the applicant has
40taken to recover the amount of the eligible claim.

P7    1(F) A statement indicating that the consumer’s application for
2payment does not include any amount for which the consumer has
3obtained recovery under the dealer’s bond required by Section
411710.

5(2) Nothing in this chapter shall be construed to require a
6consumer to bring a civil action to obtain recovery, file a
7bankruptcy claim, or file a crime report with a law enforcement
8agency in order to obtain payment of an eligible claim submitted
9to the recovery corporation.

10(c) The application shall be accompanied by a copy of the
11agreement between the consumer and the dealer or lessor-retailer,
12unless the agreement is unnecessary to the recovery corporation’s
13determination of the validity of the claim.

14(d) If the eligible claim is based on the failure to remit license
15or registration fees, the application shall be accompanied by
16evidence demonstrating that the consumer paid money or other
17consideration for the fees, or became obligated to pay the fees,
18and that the fees had not been remitted. The eligible claim shall
19be limited to the dollar amount of the license or registration fees
20not remitted and a late charge or penalty.

21(e) If the eligible claim is based on the failure to pay the
22proceeds of a consignment sale, the application shall be
23accompanied by the consignment agreement, evidence that the
24consigned vehicle was sold, and by the consumer’s verified
25statement that the consumer did not receive the portion of the
26proceeds of the sale to which the consumer was entitled. The
27eligible claim is limited to the dollar amount specified in a written
28consignment agreement to be paid to the consignor.

29(f) If the eligible claim is based on the failure to pay the legal
30owner of the consumer’s trade-in vehicle, the application shall be
31accompanied by a statement from the legal owner of the amount,
32if any, that he or she received from the dealer or lessor-retailer.
33The eligible claim is limited to the dollar amount necessary to
34discharge the credit balance owing on the trade-in vehicle.

35(g) If the eligible claim is based on the failure to pay the lessor
36of the consumer’s trade-in vehicle, the application shall be
37accompanied by a statement from the lessor of the amount, if any,
38that the lessor received from the dealer or lessor-retailer. The
39eligible claim is limited to the dollar amount necessary to pay the
P8    1lessor the total amount that the dealer or lessor-retailer agreed with
2the consumer to pay the lessor.

3(h) If the eligible claim is based on the failure to provide good
4title, the application shall be accompanied by a statement from the
5legal owner or other claimant of the amount, if any, that he or she
6received from the dealer or lessor-retailer. The eligible claim is
7limited to the remaining dollar amount necessary to discharge the
8valid security interest, lien, encumbrance, or other claim clouding
9title to the vehicle.

10(i) If the eligible claim is based on the failure to pay third parties
11for insurance, service contracts, or goods or services, the
12application shall be accompanied by a statement from the third
13party of the amount, if any, that he or she received from the dealer
14or lessor-retailer. The eligible claim is limited to the difference
15between the dollar amount the consumer paid or was contractually
16obligated to pay to the dealer or lessor-retailer for the insurance,
17service contracts, or goods or services purchased through the dealer
18 or lessor-retailer and to be provided by the third party and the
19dollar amount actually received by the third party from the dealer
20or lessor-retailer for the insurance, service contracts, or goods or
21services.

22(j) The recovery corporation may require reasonable additional
23information designed to facilitate payment of eligible claims.

24(k) (1) For claims that have accrued on or after July 1, 2008,
25and before January 1, 2009, the application shall be filed within
2618 months of the date upon which the dealer or lessor-retailer
27ceased selling or leasing motor vehicles to the general public or
28became subject to a petition in bankruptcy.

29(2) For claims that have accrued on or after January 1, 2009,
30 the application shall be filed within one year of the date upon which
31the dealer or lessor-retailer ceased selling or leasing motor vehicles
32to the general public or became subject to a petition in bankruptcy.

33

SEC. 5.  

Section 34601 of the Vehicle Code is amended to read:

34

34601.  

(a) As used in this division, “motor carrier of property”
35means any person who operates any commercial motor vehicle as
36defined in subdivision (c). “Motor carrier of property” does not
37include a household goods carrier, as defined in Section 5109 of
38the Public Utilities Code, a household goods carrier transporting
39used office, store, and institution furniture and fixtures under its
40household goods carrier permit pursuant to Section 5137 of the
P9    1Public Utilities Code, persons providing only transportation of
2passengers, or a passenger stage corporation transporting baggage
3and express upon a passenger vehicle incidental to the
4transportation of passengers.

5(b) As used in this division, “for-hire motor carrier of property”
6means a motor carrier of property as defined in subdivision (a)
7who transports property for compensation.

8(c) (1) As used in this division, except as provided in paragraph
9(2), a “commercial motor vehicle” means any self-propelled vehicle
10listed in subdivisions (a), (b), (f), (g), and (k) of Section 34500,
11any motortruck of two or more axles that is more than 10,000
12pounds gross vehicle weight rating, and any other motor vehicle
13used to transport property for compensation.

14(2) As used in this division, “commercial motor vehicle” does
15not include any of the following:

16(A) Vehicles identified in subdivision (f) of Section 34500, if
17the gross vehicle weight rating of the towing vehicle is 10,000
18pounds or less.

19(B) Vehicles identified in subdivision (g) of Section 34500, if
20the hazardous material transportation does not require the display
21of placards under Section 27903, a license under Section 32000.5,
22or a hazardous waste transporter registration under Section 25163
23of the Health and Safety Code, and the vehicle is not operated in
24commercial use.

25(C) Vehicles operated by a household goods carrier, as defined
26in Section 5109 of the Public Utilities Code, under the household
27goods carrier permit pursuant to Section 5137 of that code.

28(D) Vehicles operated by a household goods carrier to transport
29used office, store, and institution furniture and fixtures under its
30household goods carrier permit pursuant to Section 5137 of the
31Public Utilities Code.

32(E) Pickup trucks as defined in Section 471, if the conditions
33in subparagraphs (A) and (B) are also met.

34(F) Two-axle daily rental trucks with a gross vehicle weight
35rating of less than 26,001 pounds, when operated in noncommercial
36use.

37(G) Motortrucks or two-axle truck tractors, with a gross vehicle
38weight rating of less than 26,001 pounds, operated solely to tow
39a camp trailer, trailer coach, fifth-wheel travel trailer, trailer
40designed to transport watercraft, or utility trailer. Vehicle
P10   1combinations described in this subparagraph are not subject to
2Section 27900, 34501.12, or 34507.5.

3(H) Motortrucks or two-axle truck tractors, with a gross vehicle
4weight rating of less than 16,001 pounds, operated singly in
5noncommercial use.

6(d) For purposes of this chapter, “private carrier” means a motor
7carrier of property, who transports only his or her own property,
8including, but not limited to, the delivery of goods sold by that
9carrier.



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