BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 427
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 SB 427 (Negrete McLeod) - As Amended:  May 20, 2010 

          Policy Committee:                              Business and  
          Professions  Vote:                            7 - 3 

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill increases the penalty from $1,000 to $5,000 under the  
          Automotive Repair Act (Act) for failing to repair an air bag and  
          requires a consumer disclosure on customer invoices stating that  
          it is unlawful to install any part, other than the type  
          described in the written estimate, without prior approval from  
          the consumer. In addition, the bill makes minor technical  
          amendments to the Act.  

           FISCAL EFFECT  

          Potential nonreimbursable costs to local government for  
          additional enforcement, offset to some extent by additional fine  
          revenues.

           COMMENTS 

           1)Purpose  . This bill clarifies that airbags are required to be  
            repaired to their 'original operating condition' to ensure  
            repair shops that intentionally skirt the law are more easily  
            prosecuted for their crime, and increases the penalty for  
            those who fail to comply with the law.

            In addition, this bill ensures consumers are made aware of the  
            prohibition against parts switching, and provides consumers  
            with the means to protect themselves against this type of  
            fraud by providing them contact information for the Bureau of  
            Automotive Repair (BAR) if they suspect anything wrong with  
            the repair of their car.

           2)Related Legislation  . AB 2825 (Carter) of 2008 would have  








                                                                  SB 427
                                                                  Page  2

            authorized a customer to receive copies of invoices from the  
            distributor, dealer or manufacturer for all crash parts  
            installed in excess of $50, required the written estimate and  
            the final invoice to include a notice stating that installing  
            parts other than those described on the estimate without the  
            customer's prior approval is unlawful, and required copies of  
            crash part invoices, if requested by the consumer, to be  
            attached to the final invoice.  AB 2825 was vetoed. The  
            governor stated the bill was duplicative of existing law and  
            therefore unnecessary. 

            AB 1483 (Carter) of 2007 would have required an auto repair  
            dealer, once repairs are completed, to provide a written  
            affirmation to the customer on the first page of the final  
            invoice that the parts identified on the estimate are the  
            parts that were installed on the vehicle during repair.  That  
            bill was vetoed, with a statement that it was duplicative of  
            existing law and therefore unnecessary.

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081