Bill Text: CA AB1211 | 2021-2022 | Regular Session | Amended


Bill Title: Electric mobility manufacturers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2022-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1211 Detail]

Download: California-2021-AB1211-Amended.html

Amended  IN  Assembly  March 22, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1211


Introduced by Assembly Member Muratsuchi

February 19, 2021


An act to amend Section 2985.7 of the Civil Code, relating to vehicles. An act to add Chapter 2f (commencing with Section 3000) to Title 14 of Part 4 of Division 3 of the Civil Code, relating to vehicles.


LEGISLATIVE COUNSEL'S DIGEST


AB 1211, as amended, Muratsuchi. Vehicle Leasing Act. 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 that the consumer has valid insurance or elects to purchase 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 relevant 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 violates any of these provisions to a civil penalty of not less than $100, and not to exceed $2,000, in addition to actual damages plus reasonable attorney’s fees and costs, as specified.
(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 to obtain the above-described vehicle manufacturer license, which would authorize an electric mobility manufacturer to enter into business, consumer, and government transactions with consumers in this state pursuant to a membership agreement.
Existing law, the Consumer Automotive Recall Safety Act, generally prohibits an applicable dealer or rental car company, as defined, from loaning, renting, or offering for loan or rent a vehicle subject to a manufacturer’s recall after receiving a notice of the recall, as specified, until the vehicle has been repaired.
This bill would make an electric mobility manufacturer subject to the Consumer Automotive Recall Safety Act and other requirements relating to recalls and consumer notifications and 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.
This bill would specify that these provisions apply only to electric mobility manufacturers.

Existing law, known as the Vehicle Leasing Act, specifies requirements for contracts for leases of motor vehicles, including the requirement that the lease contract contain prescribed information regarding the motor vehicle and the terms of the lease. Existing law defines terms for purposes of the act.

This bill would make a nonsubstantive change to the provision defining terms for purposes of the act.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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.
(6) The Rosenthal Fair Debt Collection Practices Act (Title 1.6C (commencing with Section 1788)).
(7) Sections 1861.02 to 1861.16, inclusive, of the Insurance Code.
(8) The Electronic Communications Privacy Act (Chapter 3.6 (commencing with Section 1546) of Title 12 of Part 2 of the Penal Code).
(b) Any term in a membership agreement requiring a waiver of any provision of this chapter shall be contrary to public policy and shall be void.
(c) This chapter shall not be construed to alter, limit, expand, or otherwise affect the rights, obligations, or relationships between or among entities or individuals described under Article 1 (commencing with Section 11700) of Chapter 4 of Division 5 of the Vehicle Code.

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 subdivision (g), and any related service and component directly to a consumer, and the manufacturer of the vehicle or its affiliate holds 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.
(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 zero-emission vehicle as defined in Section 44258 of the Health and Safety Code.
(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.
(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, as described in paragraph (2) of subdivision (b) of Section 3007, or elects to purchase insurance, as described in paragraph (2) of subdivision (a) 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 the optional purchase of insurance, to the extent the consumer has elected to purchase insurance 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 set forth in paragraph (2) of subdivision (b) of Section 3007.
(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 45 days. The minimum notice of cancellation requirement shall 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 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 performing both of the following requirements 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, in any of the following circumstances, exceed any of 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 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 primarily liable for damage or loss. However, even if the consumer is not primarily liable, the consumer shall pay the recurring membership fee for any period during which that consumer is given a replacement vehicle.
(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 30103 and Sections 30118 to 30120, inclusive, of Title 49 of the United States Code. A consumer shall not be responsible for payment of a membership fee when a vehicle is being repaired due to a recall except in circumstances in which the consumer is given a replacement vehicle.
(e) If insurance coverage exists under the consumer’s applicable insurance policy, the consumer may require that the electric mobility manufacturer submit any claims to the consumer’s applicable insurance carrier.  The electric mobility manufacturer shall not make any written or oral representations that it will not present claims or negotiate with the consumer’s insurance carrier. Upon request of the consumer, the amount of the claim for collision, theft, or vandalism shall be resolved between the insurance carrier and the electric mobility manufacturer.  The consumer shall remain responsible for payment to the electric mobility manufacturer for any loss recoverable under this subdivision for which the consumer’s applicable insurance policy does not provide coverage.

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 electric mobility manufacturer as a contingent or additional insured.
(2) The consumer has elected to pay a membership fee including an additional charge for the cost of insurance required to operate the electric mobility manufacturer vehicle.
(b) If the consumer elects to pay a membership fee with insurance, as 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 Insurance Commissioner to either:
(A) Transact personal automobile insurance business in the State of California, with respect to any consumer transaction.
(B) Transact commercial automobile insurance business in the State of California, with respect to any business transaction or government transaction.
(2) For individual consumers entering into a consumer transaction, the insurance provides personal automobile liability coverage for the driver or drivers of the vehicle in the minimum financial responsibility coverage amount specified in Section 16451 of the Vehicle Code. For consumers entering into any business transaction or government transaction, the insurance provides commercial automobile liability coverage for drivers of the vehicles in the minimum financial responsibility coverage amounts specified in Section 16500.5 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 any insurance 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) If the consumer elects to pay a membership fee with an additional charge for insurance, as described in paragraph (2) of subdivision (a), the electric mobility manufacturer shall not set the price of the insurance charge or include any markup on the insurance charge, but shall merely pass 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 30103 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 the extent required by law or subpoena.
(I) To the extent required to facilitate any insurance claim or accident investigation arising from a consumer’s use of the electric mobility manufacturer vehicle.
(J) To provide any of the following:
(i) Information about the electric mobility manufacturer vehicle to the consumer.
(ii) Software updates.
(iii) Maintenance, service, or repair.
(iv) Charging services.
(v) Remote access to the electric mobility manufacturer vehicle to the consumer or as directed by the consumer.
(vi) Navigation assistance.
(vii) On-demand services requested by the consumer. With respect to this clause, the electric mobility manufacturer shall obtain prior opt-in consent from the consumer in a separate agreement clearly disclosing the purpose of electronic tracking and the types of on-demand services offered. Consent cannot be a condition of the transaction, the consumer shall have the right to opt out at any time, and the electric mobility manufacturer shall provide an effective mechanism for a consumer to revoke their consent.
(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.

3009.5.
 In the event of a conflict between this chapter and any other law, the law that affords the greatest protection for the right of privacy for consumers shall control.

3010.
 Notwithstanding Section 3009, 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 violates any provision of this chapter shall be subject to a civil penalty of no less than one hundred dollars ($100) and not to exceed two thousand dollars ($2,000), in addition to actual damages plus reasonable attorney’s fees and costs. In no event shall lost profits be recoverable in any private civil action arising from a business transaction or government transaction. 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.

3013.
 (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 30103 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 electric 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.

3014.
 (a) 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 of the Vehicle Code, 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 of the Vehicle Code, 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.
(b) An electric mobility manufacturer who holds a valid vehicle manufacturer license issued by the department pursuant to Article 1 (commencing with Section 11700) of the Vehicle Code 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.
(c) The requirements of this chapter do not exempt a person from any law governing the operation of a motor vehicle upon the highways of this state.

3015.
 This chapter applies only to electric mobility manufacturers and does not apply to, nor preclude, diminish, impair, or modify the actions, rights, obligations, products, or services of any other organization, company, or person to the extent they do not operate as an electric mobility manufacturer.

SECTION 1.Section 2985.7 of the Civil Code is amended to read:
2985.7.

(a)“Motor vehicle” means any vehicle required to be registered under the Vehicle Code. Motor vehicle does not include any trailer that is sold in conjunction with a vessel.

(b)“Lessor” includes “bailor” and is a person who is engaged in the business of leasing, offering to lease or arranging the lease of a motor vehicle under a lease contract.

For the purpose of this subdivision, “person” means an individual, partnership, corporation, limited liability company, estate, trust, cooperative, association or any other legal entity.

(c)“Lessee” includes “bailee” and is a natural person who leases, offers to lease or is offered the lease of a motor vehicle under a lease contract.

(d)“Lease contract” means any contract for or in contemplation of the lease or bailment for the use of a motor vehicle, and the purchase of services incidental thereto, by a natural person for a term exceeding four months, primarily for personal, family or household purposes, whether or not it is agreed that the lessee bear the risk of the motor vehicle’s depreciation. Lease contract does not include a lease for agricultural, business or commercial purposes, or to a government or governmental agency or instrumentality.

(e)“Regulation M” means any rule, regulation, or interpretation promulgated by the Board of Governors of the Federal Reserve System under the federal Consumer Leasing Act (15 U.S.C. Secs. 1667-1667e), and any interpretation or approval issued by an official or employee of the Federal Reserve System duly authorized by the board to issue such interpretations or approvals.

(f)“Constant yield method” means the following:

(1)In the case of a periodic payment lease, the method of determining the rent charge portion of each base payment in which the rent charge for each computational period is earned in advance by multiplying the constant rate implicit in the lease contract times the balance subject to rent charge as it declines during the scheduled lease term. At any time during the scheduled term of a periodic payment lease, the balance subject to rent charge is the difference between the adjusted capitalized cost and the sum of (A) all depreciation and other amortized amounts accrued during the preceding computational periods and (B) the first base periodic payment.

(2)In the case of a single payment lease, the method of determining the periodic earning of rent charges in which the rent charge for each computational period is earned in advance by multiplying the constant rate implicit in the lease contract times the balance subject to rent charge as it increases during the scheduled lease term. At any time during the scheduled term of a single payment lease, the balance subject to rent charge is determined by subtracting from the residual value the total rent charge scheduled to be earned over the term of the lease contract and adding to the difference all rent charges accrued during the preceding computational periods.

(3)Periodic rent charge calculations are based on the assumption that the lessor will receive the lease payments on their exact due dates and that the lease does not end before its scheduled termination date.

feedback