Amended in Senate June 15, 2014

Amended in Assembly May 24, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 988

Introduced by Assembly Member Jones

February 22, 2013

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

LEGISLATIVE COUNSEL’S DIGEST

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

begin delete

Existing

end delete

begin insert (1) end insert begin insert   end insert begin insert Existing end insert 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.

begin delete

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.

end delete begin delete

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.

end delete begin delete

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.

end delete begin insert

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.

end insert begin insert

(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.

end insert begin insert

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.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 111 of the end insert begin insert Vehicle Code end insert begin insert is amended to
read: end insert

111.  

begin insert (a) end insert begin insert   end insert “All-terrain vehicle” means a motor vehicle subject
to subdivision (a) of Section 38010 begin delete which end delete begin insert that end insert is all of the
following:

begin delete

(a)

end delete

begin insert (1) end insert  Designed for operation off of the highway by an operator
with no more than one passenger.

begin delete

(b)

end delete

begin insert (2) end insert  Fifty inches or less in width.

begin delete

(c)

end delete

begin insert (3) end insert  Nine hundred pounds or less unladen weight.

begin delete

(d)

end delete

begin insert (4) end insert  Suspended on three or more low-pressure tires.

begin delete

(e)

end delete

begin insert (5) end insert  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.

begin delete

(f)

end delete

begin insert (6) end insert  Has handlebars for steering control.

begin insert

(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.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 3001 of the end insert begin insert Vehicle Code end insert begin insert is amended to read: end insert

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 begin delete motorcycles or end delete begin insert motorcycles, all-terrain vehicles, as defined in
Section 111, or end insert recreational vehicles, as defined in subdivision (a)
of Section 18010 of the Health and Safety Code.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 3003 of the end insert begin insert Vehicle Code end insert begin insert is amended to read: end insert

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
begin delete motorcycles or end delete begin insert motorcycles, all-terrain vehicles, as defined in
Section 111, or end insert 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)