BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 496
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          ASSEMBLY THIRD READING
          AB 496 (Davis) 
          As Amended  May 26, 2009
          Majority vote

           BUSINESS AND PROFESSIONS               7-4                      
           
           ----------------------------------------------------------------- 
          |Ayes:|Hayashi, Eng, Hernandez,  |     |                          |
          |     |Nava,                     |     |                          |
          |     |John A. Perez, Price,     |     |                          |
          |     |Ruskin                    |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Emmerson, Conway, Niello, |     |                          |
          |     |Smyth                     |     |                          |
           ----------------------------------------------------------------- 

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

          1)Requires tire dealers to disclose the manufacture date of each  
            new or used tire in a written statement prior to sale, at the  
            point of sale, or prior to installation, and for the customer  
            to initial and date the statement. 

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

          3)Specifies that each violation is subject to a fine of $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)Specifies that tires refer to passenger or light truck tires.

          7)Exempts the following from disclosure requirements: 

             a)   The private sale of used tires; 








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             b)   The sale or lease of any new or used vehicle; and, 

             c)   The sale of tires by a motor vehicle dealer whose  
               primary business is the sale or service of motor vehicles. 

          8)Deems a tire dealer compliant with disclosure requirements if  
            the customer has initialed and dated the tire manufacture date  
            disclosure prior to, or at the point of, sale. 

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

          The United States Department of Transportation's (USDOT)  
          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.  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  








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          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, suddenly peel off.  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 claims 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  
          USDOT 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  








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          last four numbers represent the week and year the tire was  
          built.  For example, the numbers 3197 means the 31st week of  
          1997.  This information is used to contact consumers if a tire  
          defect requires a recall.


           Analysis Prepared by  :    Joanna Gin / B. & P. / (916) 319-3301 


                                                                FN: 0000967