Bill Text: CA AB326 | 2019-2020 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Electric mobility manufacturers.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed - Dead) 2020-09-01 - Died on call pursuant to Article IV, Section 10(c) of the Constitution. [AB326 Detail]

Download: California-2019-AB326-Amended.html

Amended  IN  Senate  July 22, 2020
Amended  IN  Assembly  January 23, 2020
Amended  IN  Assembly  March 27, 2019
Amended  IN  Assembly  March 19, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 326


Introduced by Assembly Member Muratsuchi

January 30, 2019


An act to add Section 406.5 to, and to add Article 8 (commencing with Section 21300) to Chapter 1 of Division 11 of, the Vehicle Code, relating to motorized carrying devices. An act to add Chapter 2f (commencing with Section 3000) to Title 14 of Part 4 of Division 3 of the Civil Code, and to add Sections 312.6 and 312.7 to, and to add Article 1.01 (commencing with Section 11745) to Chapter 4 of Division 5 of, the Vehicle Code, relating to vehicles.


LEGISLATIVE COUNSEL'S DIGEST


AB 326, as amended, Muratsuchi. Vehicles: motorized carrying devices. Electric mobility manufacturers.
(1) Existing law, known as the Vehicle Leasing Act, specifies requirements for contracts for leases of motor vehicles, including the requirement that the contract contain prescribed information regarding the motor vehicle and the terms of the lease.
This bill would authorize an electric mobility manufacturer to enter into a business transaction, consumer transaction, or government transaction, as those terms are defined, with a consumer for use of an electric mobility manufacturer vehicle and any other membership benefits in exchange for a membership fee or membership initiation fee. The bill would require a membership agreement between an electric mobility manufacturer and a consumer to include specified information, including, but not limited to, a statement of the terms and conditions for the right to use the electric mobility manufacturer vehicle.
This bill would require an electric mobility manufacturer to obtain specified information from a consumer before providing the consumer with an electric mobility manufacturer vehicle including, proof of valid insurance and a copy of the consumer’s valid driver’s license. The bill would require an electric mobility manufacturer to ensure an electric mobility manufacturer vehicle is registered with the appropriate state and local agencies and all fees necessary to operate the vehicle are paid.
This bill would limit the maximum liability of a consumer resulting from damage to an electric mobility manufacturer vehicle in their possession, as specified. The bill would, except as specified, prohibit an electric mobility manufacturer from disclosing identifiable personal information, utilizing electronic tracking information, or disabling a vehicle by using keyless entry technology.
This bill would subject any electric mobility manufacturer that willfully violates any of these provision to a civil penalty not to exceed $2,000.
(2) Existing law establishes a New Motor Vehicle Board that regulates the activities or practices of a new motor vehicle dealer, manufacturer, manufacturer branch, distributor, distributor branch, or representative. Existing law requires licensing by the Department of Motor Vehicles to perform these activities for specified types of vehicles. Existing law generally requires a manufacturer, manufacturer branch, remanufacturer, remanufacturer branch, distributor, distributor branch, transporter, or dealer of vehicles of a type subject to registration, or snowmobiles, motorcycles, all-terrain vehicles, or trailers of a type subject to identification, to make an application to the department for a license containing a general distinguishing number, and prohibits a person from acting in that capacity without having first been issued that license or temporary permit by the department.
This bill would require an electric mobility manufacturer, as defined, in addition to possessing the above-described vehicle manufacturer license, to submit to the department an application, on a form developed by the department, and a licensing fee for the issuance of a permit to operate as an electric mobility manufacturer. The bill would require the department, upon receipt of the completed application and licensing fee, and upon a determination by the department that an applicant meets the requirements to operate as an electric mobility manufacturer, to issue to the applicant, within 120 days, an annual permit, and would provide that the permit be annually renewed thereafter. The bill would authorize an electric mobility manufacturer to enter into business, consumer, and governmental transactions with consumers in this state pursuant to a membership agreement.
This bill would authorize the department to suspend or revoke the electric mobility manufacturer permit, impose an administrative fine, or impose a combination of those penalties, if the department determines that an electric mobility manufacturer has violated specified requirements, including the terms of the permit. For purposes of determining the amount of the administrative fine, the bill would authorize the department to consider specified factors, including the severity of the violation. With respect to the recall of any electric mobility manufacturer vehicle, the bill would require an electric mobility manufacturer to adhere to prescribed standards, including sending a written notice to each consumer in possession of an electric mobility manufacturer vehicle.

Existing law generally regulates the operation of vehicles. Existing law prohibits a local authority from enacting any law on a matter covered by the existing state law regulating the operation of vehicles.

Existing law regulates the operation of certain special vehicles, including electric personal assistive mobility devices and electrically motorized boards. Existing law authorizes a local government to regulate the operation on a sidewalk of certain other vehicles, including bicycles, roller skates, and electric carts. Existing law prohibits a person from obstructing a sidewalk.

This bill would define a motorized carrying device to mean an electric-powered self-propelled device that does not transport a person, but is designed to transport a person’s property, and is controlled by a person in the immediate vicinity of the device, either actively, or passively by means of wireless tethering. The bill would authorize the use of a motorized carrying device, in accordance with specified rules, on sidewalks and crosswalks. A violation of those rules would be an infraction.

By creating a new infraction, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YESNO  

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


SECTION 1.

 It is the intent of the Legislature to ensure the safety, reliability, and cost-effectiveness of the green energy transportation solutions provided to consumers in this state by electric mobility manufacturers.

SEC. 2.

 Chapter 2f (commencing with Section 3000) is added to Title 14 of Part 4 of Division 3 of the Civil Code, to read:
CHAPTER  2f. Electric Mobility Manufacturer Vehicle membership

3000.
 (a) Notwithstanding any other provision set forth in this chapter, this chapter shall be read in conjunction with and shall not supersede or replace the requirements set forth under any other state or federal law applicable to an electric mobility manufacturer, including, but not limited to, any of the following:
(1) The Consumer Automotive Recall Safety Act (Article 1.1 (commencing with Section 11750) of Chapter 4 of Division 5 of the Vehicle Code).
(2) Section 30103 and Sections 30118 to 30120, inclusive, of Title 49 of the United States Code.
(3) The California Consumer Privacy Act (Title 1.81.5 (commencing with Section 1798.100)).
(4) The Consumers Legal Remedies Act (Title 1.5 (commencing with Section 1750)).
(5) The Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code) or Section 17500 of the Business and Professions Code.
(b) Any term in a membership agreement requiring a waiver of any provision of this article shall be contrary to public policy and shall be void.

3001.
 For purposes of this chapter:
(a) “Business transaction” means an agreement between an electric mobility manufacturer to deliver more than 100 electric mobility manufacturer vehicles to a business for use of the electric mobility manufacturer vehicles and any other membership benefits by the business, its executives, agents, employees, customers, or any other authorized user under a membership agreement.
(b) “Clear and conspicuous” shall have the meaning ascribed in subdivision (c) of Section 17601 of the Business and Professions Code.
(c) “Consumer” means any person, customer, member, driver, business, or government entity entering a business transaction, consumer transaction, or government transaction or who is otherwise authorized by law or the membership agreement to use an electric mobility manufacturer vehicle.
(d) “Consumer transaction” means an agreement between an electric mobility manufacturer and any individual consumer for use of an electric mobility manufacturer vehicle and any other membership benefits provided under a membership agreement. “Consumer transaction” does not include any business transaction or government transaction.
(e) “Driver” means a person authorized to drive an electric mobility manufacturer vehicle pursuant to this chapter, any membership agreement, or under any federal, state, or local law relating to operation of a motor vehicle on public roads and highways.
(f) (1) “Electric mobility manufacturer” or “manufacturer” means a company that offers access to an electric mobility manufacturer vehicle, as defined in Section 312.7 of the Vehicle Code, and any related service and component directly to a consumer, and holds both of the following:
(A) A valid vehicle manufacturer license issued by the department pursuant to Article 1 (commencing with Section 11700) of Chapter 4 of Division 5 of the Vehicle Code.
(B) An electric mobility manufacturer permit pursuant to Article 1.01 (commencing with Section 11745) of Chapter 4 of Division 5 of the Vehicle Code.
(2) An electric mobility manufacturer does not include an individual or entity that does any of the following:
(A) Offers an internal combustion engine vehicle or hybrid vehicle product directly to a consumer.
(B) Maintains an existing contractual relationship with a third-party dealer-franchise network in the State of California that is not owned and operated by the electric vehicle manufacturer.
(g) “Electric mobility manufacturer vehicle” means a vehicle that is manufactured or caused to be manufactured by an electric mobility manufacturer and meets all of the following requirements:
(1) Is an all-electric or an all-alternative energy powered vehicle that is in compliance with all of the emissions requirements set by the State Air Resources Board.
(2) Is in compliance with all federal, state, and local laws governing the safety standards of a motor vehicle, as defined in Section 415.
(3) Has two or more doors, excluding a liftgate.
(4) Is designed to carry more than 3, but less than 15, passengers, including the driver, as defined in Section 305 of the Vehicle Code.
(h) “Government transaction” means an agreement between an electric mobility manufacturer and a governmental entity to deliver more than 100 electric mobility manufacturer vehicles to a government entity for use of the electric mobility manufacturer vehicles and any other membership benefits by the government entity, its executives, agents, employees, customers, or any other authorized user under a membership agreement.
(i) “Membership agreement” means an agreement for the use of an electric mobility manufacturer vehicle and any other membership benefits between an electric mobility manufacturer and a consumer, in exchange for payment of a membership initiation fee, membership fee, or any other fee. “Membership agreement” includes a business transaction, consumer transaction, and government transaction.
(j) “Membership benefit” means any benefit, credit, service, offering, or other resource offered to a consumer in addition to the use of an electric mobility manufacturer vehicle, pursuant to a membership agreement.
(k) “Membership fee” means the amount charged by the electric mobility manufacturer on a recurring basis during the membership term, as provided in a membership agreement.
(l) “Membership initiation fee” means any advance deposit, activation fee, charge, or bill separate from the membership fee required by the electric mobility manufacturer to initiate a consumer’s use of an electric mobility manufacturer vehicle or receive any membership benefit.
(m) “Membership term” means the total period that a consumer is in possession of an electric mobility manufacturer vehicle or receives any other defined membership benefit pursuant to a membership agreement.

3002.
 (a) An electric mobility manufacturer may enter into a business transaction, consumer transaction, or government transaction with a consumer for use of an electric mobility manufacturer vehicle and any other membership benefits in exchange for a membership fee or membership initiation fee.
(b) A transaction authorized under this section shall require an electric mobility manufacturer to deliver possession of an electric mobility manufacture vehicle to a consumer. However, title, registration, and ownership of the electric mobility manufacturer vehicle shall not be transferred to the consumer.
(c) Before an electric mobility manufacturer permits a consumer to receive an electric mobility manufacturer vehicle, the electric mobility manufacturer shall require the consumer to submit an application to the electric mobility manufacturer that shall require, at a minimum, all of the following information:
(1) The name and address of the applicant.
(2) A copy of the valid driver’s license of the applicant or driver.
(3) Proof that the applicant has valid insurance or has opted in to purchase valid insurance as an insurance add-on to the membership fee, as required in paragraph (2) of subdivision (b) of Section 3007.

3003.
 (a) An electric mobility manufacturer shall not charge a fee to a consumer that is not expressly authorized under this chapter.
(b) An electric mobility manufacturer shall not require a consumer to pay a membership fee or membership initiation fee to the electric mobility manufacturer in person as a condition to receive any membership benefit.

3004.
 (a) A membership agreement shall include, at a minimum, all of the following information:
(1) The amount of any membership initiation fee charged by the electric mobility manufacturer.
(2) The amount and interval of any membership fee charged by the electric mobility manufacturer during the membership term.
(3) An itemized list of any additional fees, penalties, or charges that the electric mobility manufacturer may charge the consumer.
(4) The membership term and any minimum notice of cancellation for a consumer transaction required pursuant to subdivision (e), as applicable.
(5) A statement of the terms and conditions for the right to use the electric mobility manufacturer vehicle, which shall include, at a minimum, all of the following information:
(A) Policies establishing the procedure for a failure to pay a membership fee or membership initiation fee and any interest charged for delinquency.
(B) The electric mobility manufacturer’s right of repossession.
(C) Requirements on repairs and maintenance of the electric mobility manufacturer vehicle.
(D) Conditions for the replacement of a damaged or unusable electric mobility manufacturer vehicle or parts of the electric mobility manufacture vehicle.
(b) An electric mobility manufacturer shall separately and fully disclose all of the following in the membership agreement:
(1) Any membership fee.
(2) Any membership initiation fee.
(3) Any additional mandatory charges that a consumer is required to pay for the use of the electric mobility manufacturer vehicle or any other defined membership.
(c) The electric mobility manufacturer shall have the sole authority to set a membership fee, except as otherwise provided in this chapter.
(d) The electric mobility manufacturer shall clearly and conspicuously disclose all membership benefits to be provided under the membership agreement, including, but not limited to, all of the following:
(1) The amount passed through by the electric mobility manufacturer from the insurance carrier to the consumer for an insurance add-on, to the extent the consumer has elected an insurance add-on pursuant to paragraph (2) of subdivision (a) of Section 3007. Insurance limits provided in the membership agreement shall at the very least meet the minimum requirements imposed by law.
(2) Registration of the electric mobility manufacturer vehicle.
(3) Routine maintenance and repair of the electric mobility manufacturer vehicle.
(4) Costs for charging the electric mobility manufacturer vehicle up to certain amount as provided in the membership agreement.
(e) With respect to any consumer transaction, the membership term shall be subject to cancellation at any time by a consumer upon returning the electric mobility manufacturer vehicle to the electric mobility manufacturer and providing the minimum written notice of cancellation set forth in the membership agreement, which shall not exceed two calendar months. The minimum notice of cancellation requirement must be conspicuously disclosed in the membership agreement. If the written notice of cancellation requirement exceeds one calendar month, the electric mobility manufacturer shall disclose the minimum written notice of cancellation in a separate written acknowledgment signed by the consumer.
(f) The electric mobility manufacturer shall at all times comply with the requirements of Section 17602 of the Business and Professions Code in entering into any consumer transaction, business transaction, or government transaction in which the membership term is subject to automatic renewal.
(g) It shall be unlawful and a violation of Section 11713.19 of the Vehicle Code for an electric mobility manufacturer to negotiate the terms of a membership agreement and then add charges to the membership agreement for any goods or services without first clearly and conspicuously disclosing the goods and services to be added and obtaining the consumer’s consent. For purposes of this subdivision, “goods or services” means any type of good or service, including, but not limited to, insurance and service contracts.

3005.
 An electric mobility manufacturer shall be responsible for both of the following before a vehicle is transferred or used by a consumer:
(a) Registering the electric mobility manufacturer vehicle with all relevant state and local agencies.
(b) Ensuring that all appropriate fees are paid and permissions are obtained to operate the vehicle.

3006.
 (a) Subject to subdivisions (c), (d), and (e), the total amount of the consumer’s liability to the electric mobility manufacturer for physical damage or loss arising from collision, theft, or vandalism of an electric mobility manufacturer vehicle in their possession during the membership term shall not exceed the following:
(1) The actual cost of parts and labor that the electric mobility manufacturer would have to pay to repair the electric mobility manufacturer vehicle, up to its fair market value, resulting from collision, provided that the electric mobility manufacturer establishes by clear and convincing evidence that the consumer failed to exercise ordinary care while in possession of the electric mobility manufacturer vehicle.
(2) The fair market value cost to replace the electric mobility vehicle resulting from theft, provided that the electric mobility manufacturer establishes by clear and convincing evidence that the consumer failed to exercise ordinary care while in possession of the electric mobility manufacturer vehicle.
(3) The actual cost of parts and labor which the electric mobility manufacturer would have to pay to repair the electric mobility manufacturer vehicle, up to its fair market value, resulting from vandalism, provided that the electric mobility manufacturer establishes by clear and convincing evidence that the consumer failed to exercise ordinary care while in possession of the electric mobility manufacturer vehicle.
(4) Actual charges for tolls, tickets, towing, storage, and impound fees paid by the electric mobility manufacturer incident to the damage, loss, repair, or replacement of the electric mobility manufacturer vehicle.
(5) An administrative charge defined in the membership agreement, which shall include the cost of appraisal and all other costs and expenses incident to the damage, loss, repair, or replacement of the electric mobility manufacturer vehicle, not to exceed five hundred dollars ($500).
(b) This section shall not relieve the consumer from any obligation to pay the recurring membership fee during any period in which the electric mobility manufacturer vehicle is being repaired if the consumer is liable for damage or loss.
(c) All discounts and price reductions or adjustments that are or will be received by the electric vehicle manufacturer shall be subtracted from an estimate of the consumer’s liability pursuant to subdivision (a) if they are not already incorporated in the estimate or otherwise promptly credited or refunded to the consumer.
(d) In no event shall a consumer be liable to the electric mobility manufacturer for any damage or loss arising from a recall under the Consumer Automotive Recall Safety Act (Article 1.1 (commencing with Section 11750) of Chapter 4 of Division 5 of the Vehicle Code), or Section 30102 and Sections 30118 to 30120, inclusive, of Title 49 of the United States Code.
(e) The electric mobility manufacturer shall, before seeking reimbursement directly from the consumer for any costs under subdivision (a), look to any policy of insurance held by any third party involved in the collision, theft, or vandalism or any policy of insurance held by the consumer required pursuant to paragraph (1) or paragraph (2) of subdivision (a) of Section 3007 .

3007.
 (a) Before an electric mobility manufacturer permits a consumer to use an electric mobility manufacturer vehicle, the electric mobility manufacturer shall ensure that one of the following minimum insurance requirements are met:
(1) The consumer carries valid insurance, as described in paragraph (2) of subdivision (b), required to operate the electric mobility manufacturer vehicle, and that insurance names the electronic mobility manufacturer as a contingent or additional insured.
(2) The consumer has elected to pay a membership fee with an insurance add-on for the cost of insurance required to operate the electric mobility manufacturer vehicle.
(b) If the consumer elects to pay a membership fee with an insurance add-on described in paragraph (2) of subdivision (a), the electric mobility manufacturer shall ensure all of the following:
(1) The insurance is offered by a licensed insurer admitted by the commissioner to transact commercial automobile insurance business in the State of California.
(2) The insurance provides automobile liability coverage for the driver or divers of the vehicle in the minimum financial responsibility coverage amount specified in Section 16451 of the Vehicle Code.
(3) The insurance only covers the consumer’s use of the electric mobility manufacturer vehicle during the membership term.
(4) The membership agreement includes a clear and conspicuous summary of the insurance terms, including the amount charged to the consumer for the insurance add-on and any retention or deductible that the consumer is required to pay to the electric mobility manufacturer in the event of any incident triggering insurance coverage.
(5) The electric mobility manufacturer shall not set the price of the insurance add-on or include any markup on the insurance add-on, but merely passes through the cost quoted by the licensed insurer under paragraph (1).
(c) An electric mobility manufacturer shall disclose in the membership agreement at the commencement of the membership term that a membership fee described in paragraph (2) of subdivision (a) may cause the consumer to purchase insurance that is duplicative of coverage that the consumer maintains under their own policy.
(d) When entering into a membership agreement with a foreign individual who elects to pay a membership fee described in paragraph (2) of subdivision (a), the electric mobility manufacturer shall accept service of any summons or complaint against that consumer for any accident or collision resulting from their use of the electric mobility manufacturer vehicle.

3008.
 An electric mobility manufacturer shall not disclose to any person the personally identifiable information of a consumer or any other driver unless any of the following conditions are met:
(a) The disclosure is required by law.
(b) The disclosure is required in order to verify and maintain the operational status of the electric mobility manufacturer vehicle.
(c) The disclosure is required for the purposes of effectuating, or in anticipation of effectuating, the maintenance or repair of an electric mobility manufacturer vehicle or a recall required by the Consumer Automotive Recall Safety Act (Article 1.1 (commencing with Section 11750) of Chapter 4 of Division 5 of the Vehicle Code) and Section 30102 and Sections 30118 to 30120, inclusive, of Title 49 of the United States Code.
(d) The electric mobility manufacturer determines that disclosure is required to protect or defend the terms of the use of the electric mobility manufacturer vehicle pursuant to the membership agreement.
(e) The electric mobility manufacturer determines that disclosure is required to investigate a violation of the membership agreement by the consumer or driver pursuant to the membership agreement.
(f) The consumer or driver provides prior opt-in consent through a separate agreement that clearly discloses the purpose of the disclosure before the disclosure occurs.

3009.
 After transferring a vehicle to a consumer, the electric mobility manufacturer shall not utilize electronic tracking technology to obtain or record the location of the vehicle, unless the consumer is expressly made aware of the existence and use of the tracking technology by the electric mobility manufacturer by way of a clear and conspicuous disclosure, the consumer’s express written consent is obtained, and subdivision (a) or (b), or both, apply:
(a) (1) The electronic tracking technology is used for any of the following purposes:
(A) To determine the date and time the electric mobility manufacturer vehicle departs from and is returned to the electric mobility manufacturer.
(B) To track diagnostic information related to the proper functioning and maintenance of the electric mobility manufacturer vehicle in order to ensure the safety of its occupants.
(C) To verify and maintain the operational status of the tracking technology.
(D) To repossess the electric mobility manufacturer vehicle, provided that the electric mobility manufacturer provides at least 48 hours’ notice by two separate forms of communication to the consumer before utilizing electronic tracking technology to repossess the vehicle.
(E) To verify the location of the electric mobility manufacturer vehicle in order to provide emergency services or roadside assistance to the consumer.
(F) To service the electric mobility manufacturer vehicle or provide any maintenance, repairs, upgrades, or recall.
(G) To collect the electric mobility manufacturer vehicle after its use by the consumer.
(H) To provide any membership benefits to the consumer, provided that the agreement to utilize electronic tracking technology for the membership benefits is clearly and conspicuously set forth in an agreement with the consumer that discloses all permitted uses of the electronic tracking technology by the electric mobility manufacturer.
(2) If electronic tracking technology is activated in response to any of the circumstances described in this subdivision, the electric mobility manufacturer shall maintain a record of information relevant to the activation, including the membership agreement, the return date of the electric mobility manufacturer vehicle, and the date and time the electronic tracking technology was activated. The record shall be maintained for at least 12 months and be made available upon a consumer’s request.
(b) The electronic tracking technology collects and provides only anonymized vehicle and consumer usage data to the electric mobility manufacturer in order for the electric mobility manufacturer to provide or improve existing membership benefits or to expand membership benefit offerings to consumers.

3010.
 Notwithstanding Section 3008, an electric mobility manufacturer may equip an electric mobility manufacturer vehicle with any of the following:
(a) GPS-based technology that provides navigation assistance to the occupants of the electric mobility manufacturer vehicle.
(b) Electronic surveillance technology that allows for the remote locking or unlocking of the electric mobility manufacturer vehicle at the request of the consumer.
(c) Electronic surveillance technology that allows the electric mobility manufacturer to effectuate a recall or to perform its obligations under the membership agreement, including roadside assistance, towing, repair or maintenance services, or charging services for the benefit of the consumer.

3011.
 (a) After transferring a vehicle to a consumer, and during the membership term, unless required by law, subpoena, or order from law enforcement, the electric mobility manufacturer shall not disable a consumer’s access to a vehicle by use of keyless entry technology unless the electric mobility manufacturer complies with all of the following provisions:
(1) (A) The electric mobility manufacturer provides clear and conspicuous written notice to the consumer at the time the membership agreement is signed that the electric mobility manufacturer vehicle is equipped with keyless entry technology that can be remotely enabled or disabled by the electric mobility manufacturer.
(B) The written notice provided under this paragraph shall inform the consumer of the electric mobility manufacturer’s requirements under this subdivision.
(2) (A) For membership agreements on weekly payment terms, the electric mobility manufacturer provides a warning at least five days before remotely disabling a consumer’s access to the electric mobility manufacturer vehicle using keyless entry technology.
(B) For all other membership agreements not subject to subparagraph (A), the electric mobility manufacturer provides a warning at least seven days before remotely disabling a consumer’s access to the electric mobility manufacturer vehicle using keyless entry technology.
(3) The electric mobility manufacturer provides a final warning at least 48 hours before remotely disabling a consumer’s access to an electric mobility manufacturer vehicle using keyless entry technology. The electric mobility manufacturer shall disclose to the consumer the manner and method that warnings will occur.
(4) The electric mobility manufacturer offers the consumer a choice of warning methods, including warning from the device, telephone call, email, or text message, if available.
(5) Under no circumstances shall an electric mobility manufacturer cause keyless entry technology to disable access to an electric mobility manufacturer vehicle while an electric mobility manufacturer vehicle is in motion.
(b) This section does not prohibit an electric mobility manufacturer from using keyless entry technology to disable consumer access to a vehicle, without the necessity of providing the notice requirements under this section after the end of the membership term.
(c) For purposes of this section, “keyless entry technology” means technology that an electric mobility manufacturer can use to remotely enable or disable access to, an electric mobility manufacturer vehicle.

3012.
 (a) Any electric mobility manufacturer that willfully violates any provision of this chapter shall be subject to a civil penalty not to exceed two thousand dollars ($2,000). This section shall not limit a consumer’s ability to bring a private civil action for damages against an electric mobility manufacturer that violates this chapter.
(b) A violation of this chapter shall be actionable under the California Consumer Privacy Act of 2018 (Title 1.81.5 (commencing with Section 1798.100)), the Consumers Legal Remedies Act (Title 1.5 (commencing with Section 1750) of Part 4 of Division 3 of the Civil Code), the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code), Section 17500 of the Business and Professions Code, or any other applicable state or federal law. The rights and remedies provided by this section are cumulative and shall not be construed as restricting any right or remedy that is otherwise available.

SEC. 3.

 Section 312.6 is added to the Vehicle Code, immediately following Section 312.5, to read:

312.6.
 (a) An “electric mobility manufacturer” is a company that offers access to an electric mobility manufacturer vehicle, as defined in Section 312.7, and any related service and component directly to a consumer, and holds both of the following:
(1) A valid vehicle manufacturer license issued by the department pursuant to Article 1 (commencing with Section 11700) of Chapter 4 of Division 5.
(2) An electric mobility manufacturer permit pursuant to Article 1.01 (commencing with Section 11745) of Chapter 4 of Division 5.
(b) An electric mobility manufacturer does not do either of the following:
(1) Offer an internal combustion engine vehicle or hybrid vehicle product directly to a consumer.
(2) Maintain an existing contractual relationship with a third-party dealer-franchise network in the State of California that is not owned and operated by the electric mobility manufacturer.

SEC. 4.

 Section 312.7 is added to the Vehicle Code, to read:

312.7.
 An “electric mobility manufacturer vehicle” is a vehicle that is manufactured or caused to be manufactured by an electric mobility manufacturer and meets all of the following requirements:
(a) Is an all-electric or an all-alternative energy-powered vehicle that is in compliance with all of the emissions requirements set by the State Air Resources Board.
(b) Is in compliance with all federal, state, and local laws governing the safety standards of a motor vehicle, as defined in Section 415.
(c) Has two or more doors, excluding a lift gate.
(d) Is designed to carry more than 3, but less than 15, passengers, including the driver, as defined in Section 305.

SEC. 5.

 Article 1.01 (commencing with Section 11745) is added to Chapter 4 of Division 5 of the Vehicle Code, to read:
Article  1.01. Electric Mobility Manufacturer

11745.
 (a) An electric mobility manufacturer shall not engage in business in this state to manufacture, cause to be manufactured, or offer use of an electric mobility manufacturer vehicle or other membership benefits to a consumer unless the electric mobility manufacturer holds both of the following:
(1) A valid vehicle manufacturer license issued by the department pursuant to Article 1 (commencing with Section 11700).
(2) A separate permit to act as an electric mobility manufacturer issued by the department pursuant to this article.
(b) A person shall submit to the department an application, on a form developed by the department, for the issuance of a permit to operate as an electric mobility manufacturer. The application shall be accompanied by a licensing fee prescribed by the department pursuant to subdivision (c), and shall include other information as reasonably requested by the department.
(c) The department shall charge and collect a fee in an amount established by the department by regulation from each applicant for a permit to operate as an electric mobility manufacturer in this state. The fee required by this subdivision shall not exceed the reasonable costs to the department for issuing the permit and carrying out its duties pursuant to this article. That fee shall not be refundable. The department shall issue a permit to operate as an electric mobility manufacturer if the applicant has paid the fee required by this subdivision.
(d) Upon receipt of a completed application and payment of the fee described in subdivision (c), and upon a determination by the department that an applicant meets the requirements for the issuance of a permit to operate as an electric mobility manufacturer, the department shall issue to the applicant within 120 days an annual permit to operate as an electric mobility manufacturer in this state, and the permit shall be renewed on an annual basis thereafter.
(e) In accordance with the requirements of this section, the possession of a valid license and permit, as specified under paragraphs (1) and (2) of subdivision (a), authorizes an electric mobility manufacturer to enter into business, consumer, and governmental transactions with consumers in this state pursuant to a membership agreement that complies with the requirements of Chapter 2f (commencing with Section 3000) of Title 14 of Part 4 of Division 3 of the Civil Code.
(f) An electric mobility manufacturer shall be subject to requirements specified in Chapter 1 (commencing with Section 4000) and Chapter 6 (commencing with Section 9101) of Division 3, authorized to participate in the fleet vehicle registration program, as specified in Article 9.5 (commencing with Section 5301) of Chapter 1 of Division 3, and exempt from any obligation to display the business name, trademark, or logo on the exterior of the electric mobility manufacturer vehicle in accordance with fleet registration.
(g) An electric mobility manufacturer who holds a valid vehicle manufacturer license issued by the department pursuant to Article 1 (commencing with Section 11700) and a permit to operate as an electric mobility manufacturer shall be considered an owner of a motor vehicle, and shall be subject to the provisions specified in Section 30106 of Title 49 of the United States Code.
(h) The requirements of this article do not exempt a person from any law governing the operation of a motor vehicle upon the highways of this state.

11746.
 (a) If the department determines that an electric mobility manufacturer has violated the terms of a permit issued pursuant to this article, a requirement in this article, or regulations adopted by the department, the department may take any of the following actions:
(1) Suspend or revoke the permit issued to the electric mobility manufacturer.
(2) Impose against the electric mobility manufacturer an administrative fine in an amount not to exceed ten thousand dollars ($10,000) per violation.
(3) Impose any combination of the penalties specified in paragraphs (1) and (2).
(b) To determine the amount of an administrative fine imposed pursuant to subdivision (a), the department shall consider all of the following:
(1) The size of the electric mobility manufacturer.
(2) The severity of the violation.
(3) Any good faith efforts by the electric mobility manufacturer to remedy the violation.
(4) The history of previous violations by the electric mobility manufacturer.
(5) Any other factor that the department determines to be relevant.
(c) Notwithstanding the requirements of this article, a person or electric mobility manufacturer who violates a requirement of this article shall not be subject to a criminal penalty for that violation.

11747.
 (a) An electric mobility manufacturer shall be subject to the requirements of the Consumer Automotive Recall Safety Act (Article 1.1 (commencing with Section 11750)), and Section 30102 and Sections 30118 to 30120, inclusive, of Title 49 of the United States Code. An electric mobility manufacturer shall comply with requirements relating to recalls, consumer notifications, and other requirements required by law or regulation.
(b) With respect to the recall of any electric mobility manufacturer vehicle, an electric mobility manufacturer shall adhere to all of the following:
(1) Following any notice-related triggering event, as described under Section 30118(b) and (c) of Title 49 of the United States Code, an electric mobility manufacturer shall promptly comply with all of the following:
(A) For any electric mobility manufacturer vehicle under a membership agreement at the time of the triggering event, the electronic mobility manufacturer shall send a written notice to each consumer in possession of an electric mobility manufacturer vehicle in compliance with Section 30119 of Title 49 of the United States Code.
(B) For any electric mobility manufacturer vehicle that is not under a membership agreement with a consumer at the time of the triggering event, the electric mobility manufacturer shall refrain from engaging in any new business transaction, consumer transaction, or government transaction involving that vehicle unless, or until, the electric mobility manufacturer vehicle is remedied pursuant to Section 30120 of Title 49 of the United States Code or a temporary fix is implemented as provided in paragraph (2).
(2) If a remedy for the defect or noncompliance is not immediately available, and the electric mobility manufacturer temporarily alters the electric mobility manufacturer vehicle in order to eliminate the safety risk posed by the defect or noncompliance identified in the notice under Section 30118(b) and (c) of Title 49 of the United States Code, the electric mobility manufacturer, after causing those specified actions to be performed, may engage in a business transaction, consumer transaction, or government transaction involving the electric mobility manufacturer vehicle. However, once the permanent remedy for the electric mobility manufacturer vehicle becomes available and the consumer presents the vehicle to the electric mobility manufacturer for remedy or the vehicle is already in the electric mobility manufacturer’s possession, the electric mobility manufacturer may not engage in a business transaction, consumer transaction, or government transaction involving the vehicle until the vehicle has been remedied under Section 30120 of Title 49 of the United States Code.

SECTION 1.Section 406.5 is added to the Vehicle Code, to read:
406.5.

A “motorized carrying device” is an electric-powered self-propelled device that does not transport a person, but is designed to transport a person’s property, and is controlled by a person in the immediate vicinity of the device, either actively, or passively by means of wireless tethering.

SEC. 2.Article 8 (commencing with Section 21300) is added to Chapter 1 of Division 11 of the Vehicle Code, to read:
8.Operation of Motorized Carrying Devices
21300.

For the purposes of this article, a motorized carrying device means a vehicle defined in Section 406.5.

21301.

(a)A motorized carrying device is not subject to the provisions applicable to a motor vehicle, and the operator of a motorized carrying device is not subject to the provisions applicable to the driver of a motor vehicle or other vehicle, when applicable, by this code or any other code.

(b)The provisions of this code applicable to a pedestrian, except when in conflict with this article or when, by their nature can have no application, shall apply to a motorized carrying device and to a person operating a motorized carrying device, as to the device in that person’s active or passive control.

21302.

(a)A motorized carrying device may be operated on a sidewalk or crosswalk in accordance with this article.

(b)A motorized carrying device shall not be larger than an average person nor occupy a space larger than the space an average person occupies, and shall not exceed an unladen weight of 85 pounds.

21303.

(a)A person operating a motorized carrying device shall be in the immediate vicinity of the device and actively monitor the device at all times. This section does not require a person to maintain unbroken visual contact with the device, but does require a person to be actively aware of the path of travel of the device.

(b)A person operating a motorized carrying device shall ensure that the device yields the right-of-way to any pedestrian or operator of a bicycle or any personal assistive mobility device on the sidewalk or in a crosswalk.

21304.

A person operating a motorized carrying device shall not do any of the following:

(a)Allow the device to operate in violation of any pedestrian sign or signal.

(b)Allow the device to unreasonably interfere with any pedestrian or vehicular traffic.

(c)Allow the device to travel at a rate of speed in excess of eight miles per hour.

(d)Operate the device at a distance of more than 10 feet from the person.

(e)Operate the device upon a highway, except on a sidewalk, in a crosswalk, or when otherwise lawfully crossing a highway.

(f)Transport any hazardous material using the device.

21305.

Every motorized carrying device shall be equipped with a braking system that does all of the following:

(a)Allows the vehicle to come to a controlled and complete stop.

(b)Can be activated by the person operating the device.

(c)Is automatically activated if the device loses contact with the person operating the device.

21306.

A motorized carrying device operating during darkness upon a highway or a sidewalk shall be equipped with all of the following:

(a)A lamp emitting a white light that, while the motorized carrying device is in motion, illuminates the highway or sidewalk in front of the motorized carrying device and is visible from a distance of 300 feet in front and from the sides of the motorized carrying device.

(b)A red reflector or a solid or flashing red light with a built-in reflector on the rear shall be visible from a distance of 500 feet to the rear when directly in front of lawful upper beams of headlamps on a motor vehicle.

(c)A white or yellow reflector on each side of the motorized carrying device that is visible from the front and rear of the motorized carrying device from a distance of 200 feet.

21307.

Any violation of this article shall be punished as an infraction.

21308.

This article does not require the Department of Motor Vehicles to update the California Driver’s Handbook to include the information provided in this article prior to when the handbook would otherwise be revised or reprinted.

SEC. 3.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

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