BILL NUMBER: AB 988	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 15, 2014
	AMENDED IN ASSEMBLY  MAY 24, 2013

INTRODUCED BY   Assembly Member Jones

                        FEBRUARY 22, 2013

   An act to amend Sections  285, 286, 296, 331.1, 331.2,
426, 672, 3051, 11701, 11704.5, 11710, and 11723   111,
3001, and 3003  of the Vehicle Code, relating to 
recreational off-highway   all-terrain  vehicles.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 988, as amended, Jones. New Motor Vehicle Board: 
all-terrain vehicles: recreational off-highway vehicles.

    Existing 
    (1)     Existing  law establishes the
New Motor Vehicle Board that regulates the activities or practices of
a new motor vehicle dealer, manufacturer, manufacturer branch,
distributor, distributor branch, or representative, as those terms
are defined by the Vehicle Code. Existing law requires licensing by
the Department of Motor Vehicles to do these activities for specified
types of vehicles. 
   Existing law defines a recreational off-highway vehicle as a motor
vehicle designed by the manufacturer for operation primarily off of
the highway that has a steering wheel, nonstraddle seating, a maximum
speed capability of greater than 30 miles an hour, and an engine
displacement equal to or less than 1,000cc.  
   This bill would include the activities and practices of
recreational off-highway vehicle dealers, manufacturers, manufacturer
branches, distributors, distributor branches, or representatives
within the scope of regulation by the board.  
   This bill would require these entities to make application to the
Department of Motor Vehicles for a license, but would exempt them
from the written examination and education program requirements. The
bill would require an applicant for a dealer's license for a dealer
who deals exclusively in recreational off-highway vehicles to procure
and file a bond with the department in the amount of $10,000 before
a license is issued or renewed. The bill would also require the
holders of these licenses and the dealers, manufacturers,
manufacturer branches, distributors, distributor branches, and
representatives to pay fees for the issuance and renewal of a
license.  
   This bill would make a person who acts as a dealer, among other
things, of recreational off-highway vehicles and utility-terrain
vehicles subject to these licensing provisions and the provisions
governing the New Motor Vehicle Board.  
   (2) Under existing law, the New Motor Vehicle Board consists of 9
members, 4 of whom are required to be new motor vehicle dealers,
which existing law defines as a dealer who acquires for resale new
and unregistered motor vehicles, off-highway motorcycles, or
all-terrain vehicles. Existing law excludes a dealer who deals
exclusively in motorcycles or recreational vehicles from appointment
to the board as a new motor vehicle dealer.  
   This bill would also exclude a dealer who deals exclusively in
all-terrain vehicles from appointment to the board as a new motor
vehicle dealer. 
   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 111 of the   Vehicle
Code   is amended to read: 
   111.   (a)    "All-terrain vehicle" means a
motor vehicle subject to subdivision (a) of Section 38010 
which   that  is all of the following: 
   (a) 
    (1)  Designed for operation off of the highway by an
operator with no more than one passenger. 
   (b) 
    (2)  Fifty inches or less in width. 
   (c) 
    (3)  Nine hundred pounds or less unladen weight.

   (d) 
   (4)  Suspended on three or more low-pressure tires.

   (e) 
    (5)  Has a single seat designed to be straddled by the
operator, or a single seat designed to be straddled by the operator
and a seat for no more than one passenger. 
   (f) 
    (6)  Has handlebars for steering control. 
   (b) Notwithstanding subdivision (a), for purposes of Chapter 6
(commencing with Section 3000) of Division 2 and Chapter 4
(commencing with Section 11700) of Division 5, "all-terrain vehicle"
also means a recreational off-highway vehicle as defined in Section
500 and a utility-terrain vehicle as defined in Section 531. 
   SEC. 2.    Section 3001 of the   Vehicle
Code  is amended to read: 
   3001.  (a) Four of the appointive members of the board shall be
new motor vehicle dealers as defined in Section 426 who have engaged
for a period of not less than five years preceding their appointment
in activities regulated by Article 1 (commencing with Section 11700)
of Chapter 4 of Division 5. These members shall be appointed by the
Governor.
   (b) Each of the five remaining appointive members shall be a
public member who is not a licentiate under Article 1 (commencing
with Section 11700) or 2 (commencing with Section 11800) of Chapter 4
of Division 5 or an employee of such licentiate at the time of
appointment and one of these five appointive members shall have been
admitted to practice law in the state for at least 10 years
immediately preceding his or her appointment. One public member shall
be appointed by the Senate Committee on Rules, one by the Speaker of
the Assembly, and three by the Governor.
   (c) Each member shall be of good moral character.
   (d) This section does not apply to a dealer who deals exclusively
in  motorcycles or   motorcycles, all-terrain
vehicles, as defined in Section 111, or  recreational vehicles,
as defined in subdivision (a) of Section 18010 of the Health and
Safety Code.
   SEC. 3.    Section 3003 of the   Vehicle
Code   is amended to read: 
   3003.  (a) Each appointive member of the board shall be appointed
for a term of four years and shall hold office until the appointment
and qualification of his or her successor or until one year has
elapsed since the expiration of the time for which he or she was
appointed, whichever occurs first.
   (b) The terms of the members of the board first appointed shall
expire as follows: one public member and one new motor vehicle dealer
member, January 15, 1969; two public members and one new motor
vehicle dealer member, January 15, 1970; two public members and two
new motor vehicle dealer members, January 15, 1971. The terms shall
thereupon expire in the same relative order.
   (c) Vacancies occurring shall be filled by appointment for the
unexpired term.
   This section does not apply to a dealer who deals exclusively in
 motorcycles or   motorcycles, all-terrain
vehicles, as defined in Section 111, or  recreational vehicles,
as defined in subdivision (a) of Section 18010 of the Health and
Safety Code. All matter omitted in this version of the bill appears
in the bill as amended in the Assembly May 24, 2013. (JR11)