BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 496
                                                                  Page  1

          Date of Hearing:   April 28, 2009

                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
                                 Mary Hayashi, Chair
                     AB 496 (Davis) - As Amended:  April 23, 2009
           
          SUBJECT  :   Tire age degradation:  consumer disclosure.

           SUMMARY  :   Requires a tire retailer to disclose a tire's age  
          upon sale, and requires a consumer to initial a statement that  
          they have received such information.  Specifically,  this bill  :  

          1)Requires tire dealers to disclose the age of each new or used  
            tire in a written statement at the time of sale, and for the  
            customer to initial the statement. 

          2)Requires a tire dealer to provide a written disclosure to the  
            customer prior to the sale or installation of any tire about  
            the risk associated with tire age. 

          3)Specifies that each violation is subject to a fine of two  
            hundred fifty dollars ($250). 

          4)Defines "tire dealer" to include any retail tire outlet and  
            any commercial retailer of any vehicle equipped with tires.

          5) Defines "tire" as both new and used tires.

          6)Does not apply to the private sale of used tires included as  
            part of a sale of a used vehicle.

          7)Makes legislative findings and declarations.

           EXISTING LAW  provides for the establishment and enforcement of  
          various product safety standards for consumer products,  
          including, but not limited to, specified warning labels and the  
          prohibited sale of hazardous materials.

           FISCAL EFFECT  :   Unknown.  This bill is keyed non-fiscal.

           COMMENTS  :   

           Purpose of the bill  .  According to the author's office, "As  
          tires age, they experience chemical degradation and become  
          brittle, leading to potential catastrophic tire tread  








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          separations.  Currently, nearly all vehicle manufacturers have  
          adopted a six-year policy warning that tires should be removed  
          from service after six years, regardless of tread depth or use.   
          Unfortunately, these warnings are inconspicuously buried in the  
          depths of several-hundred-page owner's manuals.  Consumer  
          disclosure is an important step to prevent tragedies that  
          continue to occur when aged tires fail catastrophically." 

           Background  .  The U.S. Department of Transportation's (DOT)  
          National Highway Traffic Safety Administration (NHTSA) sets and  
          enforces motor vehicle safety standards, and uses education and  
          research to reduce deaths, injuries, and economic losses  
          resulting from motor vehicle crashes.  NHTSA awards grants to  
          states to help them organize, develop, and implement highway  
          safety programs.  The NHTSA has conducted multi-year research on  
          the aging of tires used on light vehicles (passenger cars, light  
          trucks, and vans) and evaluated several accelerated tire aging  
          methods to determine their relative effectiveness.  A summary of  
          these findings and recommendations were documented in a report  
          to Congress in August 2007. 

          According to the NHTSA report, tire aging refers to the  
          reduction or loss in a tire's material properties, which over  
          time leads to a reduction of performance capabilities.  From  
          1994 to 2004, NHTSA estimates that about 400 fatalities annually  
          may be attributed to tire failures of all types.  Tire failures  
          can be caused by a number of factors such as under- or  
          over-inflation of tires, overloading of vehicles, road hazards,  
          improper maintenance, structural defects, improper installation,  
          and tire aging. 

          Tire aging is caused by the effect of heat and oxygen  
          interacting with the tire's material properties, and results in  
          oxidation.  This process, known as thermo-oxidative degradation,  
          is accelerated by higher temperatures and is a contributing  
          factor in certain tire failures, such as tread separation. Tread  
          separation results from a reduction in peel (adhesion) strength  
          between the steel belts, an increase in hardness of most rubber  
          components, a loss of the rubber components' ability to stretch,  
          increased crack growth rates, and a reduction in tire cycles to  
          failure in fatigue tests. The loss of a tire's elasticity can  
          cause it to become dry and brittle inside, without the  
          appearance of visible signs of degradation.  So, while tires  
          that have never been used before look brand new, they can be  
          fatally dangerous because the tire treads can, without warning,  








                                                                  AB 496
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          suddenly peel off.  The NHTSA's study of tires in Arizona found  
          that tire degradation accelerates in hotter climates.  NHTSA's  
          analysis of data provided by a large insurance company for the  
          years 2002 through 2006 revealed that while 27% of its policy  
          holders were from Texas, California, Louisiana, Florida, and  
          Arizona, 77% of its tire claims came from these states and 85%  
          of these were for tires over six years old.  Some manufacturers,  
          such as Ford Motors, have taken voluntary measures to retire old  
          tires that are at least six years old.  

          In its report, NHTSA states that further research on tire aging  
          is needed in order to decide what further steps, if any, should  
          be taken to address safety issues related to tire aging, and  
          maintains that it is unable to isolate tire aging for motor  
          vehicle crashes because tire age is not coded in most crash  
          databases. 

          Since 1971, tire manufacturers have been required to place a DOT  
          identification code on the sidewall of a tire.  The code begins  
          with the letters "DOT" and indicates that the tire meets all  
          federal standards.  The next two numbers or letters represent  
          the plant where the tire was manufactured, and the last four  
          numbers represent the week and year the tire was built.  For  
          example, the numbers 3197 means the 31st week of 1997.  The  
          other numbers are marketing codes used at the manufacturer's  
          discretion.  This information is used to contact consumers if a  
          tire defect requires a recall.

           Support  .  According to the sponsor, Safety Research &  
          Strategies, Inc., "Tire age is an important factor in  
          maintaining a safe vehicle.  While vehicle and tire  
          manufacturers have issued various guidelines, consumers are  
          largely unaware of tire age as it is encoded in the Tire  
          Identification Number (a.k.a. DOT number) in a manner that is  
          inconsistent with other standard methods of dating.  Requiring  
          disclosure of tire age by dealers will greatly assist motorists  
          in discerning whether the tires that are being sold are in fact  
          reasonably new and whether they are within the recommended  
          manufacturer guidelines." 

          Patrick James of the American Center for Van and Tire Safety  
          based in Knoxville, TN, writes, "In July 2007, my ten-year old  
          daughter was killed in a single vehicle van rollover accident  
          when the left rear tire of the van lost its tread.  The tire had  
          recently been installed on the van by a tire retailer.  It was  








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          the original "spare tire" on the van and had never been in  
          service.  Unfortunately, although it appeared "new", it was 13  
          years old.  This fact was never mentioned by the service  
          technician.  Had the technician pointed out the tire age, it  
          would not have been installed and the tragic accident likely  
          would never have happened." 

          The American Federation of State, County, and Municipal  
          Employees writes, "Driving on aged tires creates a hazard to the  
          driver, passengers, and other cars on the road.  By requiring  
          the dealer to disclose the age of tires sold, the consumer has  
          the ability to make a conscientious decision as to whether the  
          tire is safe." 

           Oppose  .  According to the Les Schwab Tire Centers, "Two of the  
          three automobile manufactures in the USA have adopted a policy  
          recommending their customers consider replacing the tires if  
          they have been in use for six years.  These are all  
          recommendations probably because very little scientific data had  
          shed much light on the subject.  Credit to NBC National News in  
          its coverage of this very issue for stating they too had found  
          no scientific data to support whether or not, for instance, a  
          six-year-old tire was any less safe that a newer production? AB  
          496 is an idea that is ahead of the scientific research  
          community.

          According to the California Tire Dealers, "The bill's  
          requirements also impact the sale of good "used" tires in  
          California, where 2 million to 3 million are sold annually,  
          mostly in low-income communities.  Used tires may be 3, 4, or 5  
          years old, but are name-brand tires that someone can buy for $15  
          or $20 rather than $100 or more for a new one.  Because they are  
          used, there is no manufacturers' warranty, but there is also no  
          evidence that these tires are dangerous after six years."  

          According to the Civil Justice Association of California, "We  
          fear?the ability to receive a civil penalty?will do more to  
          enrich lawyers than to protect drivers." 
           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Safety Research & Strategies, Inc. (sponsor)
          American Center for Van and Tire Safety








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          American Federation of State, County, and Municipal Employees  
          (ASFCME) 
          Consumer Attorneys of California
          Consumers for Auto Reliability and Safety 

           Opposition 
           
          CalChamber
          California New Car Dealers Association
          California Retailers Association
          California Service Station and Automotive Repair Association
          California Tire Dealers Association
          Civil Justice Association of California
          Les Schwab Tire Centers 
          Rubber Manufacturers Association
          Numerous Individuals 
           
          Analysis Prepared by  :    Joanna Gin / B. & P. / (916) 319-3301