BILL NUMBER: AB 501	CHAPTERED
	BILL TEXT

	CHAPTER  392
	FILED WITH SECRETARY OF STATE  SEPTEMBER 27, 2013
	APPROVED BY GOVERNOR  SEPTEMBER 27, 2013
	PASSED THE SENATE  SEPTEMBER 9, 2013
	PASSED THE ASSEMBLY  SEPTEMBER 10, 2013
	AMENDED IN SENATE  SEPTEMBER 3, 2013
	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

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, 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,
authorizes 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 authorize 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 tire retailer primarily engaged in the
retail sale, service, and installation of new tires on customer
vehicles, and 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 a 3rd 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 3rd
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 26,001 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.
   (6) This bill would incorporate additional changes to Section
34601 of the Vehicle Code proposed by AB 529 that would become
operative if this bill and AB 529 are both enacted and this bill is
enacted last.



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 new 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.
  SEC. 5.5.  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.
   (e) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
  SEC. 6.  Section 5.5 of this bill incorporates changes to Section
34601 of the Vehicle Code proposed by both this bill and Assembly
Bill 529. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2014, (2) each
bill amends Section 34601 of the Vehicle Code, and (3) this bill is
enacted after Assembly Bill 529, in which case Section 5 of this bill
shall not become operative.