BILL ANALYSIS Ó
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|Hearing Date:April 28, 2014 |Bill No:SB |
| |1242 |
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SENATE COMMITTEE ON BUSINESS, PROFESSIONS
AND ECONOMIC DEVELOPMENT
Senator Ted W. Lieu, Chair
Bill No: SB 1242Author:Lieu
As Introduced: February 20, 2014 Fiscal:Yes
SUBJECT: Automotive repair: Bureau of Automotive Repair
SUMMARY: Subjects the powers and duties of the Bureau of Automotive
Repair to review by the appropriate policy committees of the
Legislature as if these provisions were scheduled to be repealed on
January 1, 2019; makes technical, updating and correcting changes to
the Automotive Repair Act.
Existing law:
1)Licenses and regulates automotive repair dealers (ARDs) under the
Automotive Repair Act, by the Bureau of Automotive Repair (BAR)
within the Department of Consumer Affairs (DCA).
2)Requires that in 2003, and every 4 years thereafter, the Joint
Committee on Boards, Commissions, and Consumer Protection hold a
public hearing to evaluate and review the effectiveness and
efficiency of the BAR, as specified.
3)Provides for the Governor to appoint, subject to confirmation by the
Senate, a chief of the BAR; and specifies that before a chief is
appointed, the Governor shall give due consideration to any person
or persons recommended by the board.
This bill:
1)Subjects the powers and duties of the BAR to review by the
appropriate policy committees of the Legislature as if these
provisions were scheduled to be repealed on January 1, 2019.
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2)Deletes the outdated requirement for the BAR to be reviewed in 2003,
and removes an obsolete reference to the repealed joint committee.
3)Repeals the provision requiring the Governor, in appointing a chief
of the BAR, to give due consideration to a person "recommend by the
board".
FISCAL EFFECT: Unknown. This bill has been keyed "fiscal" by
Legislative Counsel.
COMMENTS:
1.Purpose. This bill is one of six "sunset review bills" authored by
the Chair of this Committee. This bill provides for the BAR to be
reviewed by the appropriate policy committees of the Legislature,
and makes legislative changes regarding the BAR recommended in the
Committee's background paper.
2.Oversight Hearings and Sunset Review of Licensing Boards and
Commission of DCA. In 2014, the Senate Business and Professions
Committee and the Assembly Business, Professions and Consumer
Protection Committee (Committees) conducted joint oversight hearings
to review 9 regulatory entities: Bureau of Automotive Repair;
Bureau of Home Furnishings and Thermal Insulation; Bureau for
Private Postsecondary Education (BPPE); California Massage Therapy
Certification program; California Board of Acupuncture; California
Tax Preparers Program; Dental Hygiene Committee of California;
Professional Fiduciaries Bureau; and Structural Pest Control Board.
This Committee also reviewed the performance and effectiveness of
the Community Interest Development Manager's Certification Program.
The Committees began their review of the aforementioned licensing
agencies in March and conducted two days of hearings and then more
recently held a hearing on the BPPE. This bill, and the
accompanying sunset bills, are intended to implement legislative
changes as recommended by staff of the Committee's and which are
reflected in the Background Papers prepared by Committee staff for
each agency and program reviewed by the Committees for this year.
3.Review of the Bureau of Automotive Repair (BAR), Issues Identified
and Recommended Changes. The following are some of the major issues
pertaining to the BAR or areas of concern reviewed and discussed by
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the Committee during the review of the BAR, along with background
information concerning each particular issue. Recommendations were
made by Committee staff regarding the particular issues or problem
areas which needed to be addressed.
a) Issue : Technical Cleanup.
Background : BPC § 9882 (b) refers to the Bureau being reviewed by
"the Joint Committee on Boards, Commissions and Consumer
Protection." That joint committee was repealed in 2010 by AB
2130 (Huber, Chapter 670, Statutes of 2010). This section should
be amended, cleaning up the references to the repealed committee.
In addition, BPC § 9882.2 deals with the appointment of the Chief
of the Bureau, and provides for the Governor to give due
consideration to any person "recommended by the board." The term
"board" refers to a "Bureau of Automotive Repair Board" which was
repealed in 1993 by SB 574 (Boatwright, Chapter 1264, Statutes of
1993). This section should be amended, updating the outdated
reference to the board.
Recommendation : Committee staff recommended that BAR should work
with the Committee to identify cleanup amendments for the
Business and Professions Code and the Health and Safety Code
additional provisions relating to the laws under the BAR's
jurisdiction. In its response to the issues raised in the
Committee's Background Paper, BAR indicated that the Department
and BAR are developing recommendations for technical cleanup to
be included in the bill at a later time.
[ The current language in this measure reflects these initial
recommended changes .]
b) Issue : Exempt Areas of Practice.
Background : In its sunset report, the BAR raised the issue of
ancillary services which have typically been regarded as exempt
areas of practice and therefore not subject to regulation and
registration as an ARD, such as replacing spark plugs, batteries,
and fan belts. BAR indicates that because of advances in
automotive technology many of these services require more
specialized repair skills, and necessitate the removal of
automotive systems, engine components, shrouds or other
electrical equipment. The Bureau indicates that and ARD
registration should be required for those carrying out such
complex repairs.
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BPC § 9880.1 (e) defines "repair of motor vehicles" to exclude
repairing tires, changing tires, lubricating vehicles, installing
light bulbs, batteries, windshield wiper blades and other minor
accessories, cleaning, adjusting, and replacing spark plugs,
replacing fan belts, oil, and air filters, and other minor
services determined by the Bureau to be "performed by gasoline
service stations." The law further states that, "No service
shall be designated as minor, for purposes of this section, if
the director finds that performance of the service requires
mechanical expertise, has given rise to a high incidence of fraud
or deceptive practices, or involves a part of the vehicle
essential to its safe operation." A person who engages in such
practices must register as an ARD as provided by BPC § 9884.6.
Another example cited by BAR of repairs exempt from registration
under the Automotive Repair Act is tire services. Many modern
vehicles are equipped with tire pressure monitoring systems that
may require the technician to update the vehicle's on-board
diagnostic system when serviced.
Discussions with repair industry representatives indicate that
recently BAR has determined that some tire dealers must register
as ARDs. This determination has apparently been made because of
the definitions in BPC § 9880.1, and the Federal Transportation
Recall Enhancement, Accountability, and Documentations Act
(TREAD). TREAD requires that beginning with the 2006 model year,
every new vehicle, of less than 10,000 pounds GVWR, must be
equipped with a TPMS (Tire Pressure Monitoring System). BAR has
determined that shops engaging in the repair, removal, and
installation of TPMS must register as ARDs because TREAD mandated
new vehicles be equipped with TPMS in response to numerous
deaths. As a clear health and safety issue, the proper
functioning of such components is essential to the safe operation
of a vehicle. BAR has further indicated that the repair and
diagnosis of TPMS often requires the use of specialized equipment
and adherence to specific diagnostic procedures, which
necessitates specific mechanical expertise.
In its sunset report, BAR indicated that the definition of repair
of motor vehicles may need to be updated by regulation to clarify
what constitutes maintenance and repairs of motor vehicles, given
changes to automotive technology over time.
In its response to the issues raised in the Committee's Background
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Paper, BAR stated that spark plug replacement is a prime example
of these exemptions which might need to be changed. It is not
uncommon for vehicles to have spark plugs replaced if a specific
diagnosis determines that replacement is warranted or at
scheduled intervals of 100,000 miles. Vehicle manufacturers have
made spark plugs inaccessible without removal of other major
systems, even the removal of motor mounts, and in a few cases,
the entire engine, according to BAR. Additionally, these same
services are not exempt from the consumer disclosure and other
protections of the Act if other automotive repair services
performed by the facility require registration with the Bureau.
Recent legislation proposed to remove the exemption for companies
that only replace tires. AB 2065 (Galgiani, 2012) and SB 202
(Galgiani, 2013) sought to remove the exemption for tire repair
and changing. Both of those bills were held on the Assembly
Appropriations Suspense File.
Recommendation : Committee staff recommended the BAR to give input
on this issue, and asked whether the Bureau's regulatory
authority is sufficient in these areas. In its reply to the
Committee, BAR does not make a specific recommendation for
legislation in this area.
[ The current language in this measure does not reflect any changes
to Automotive Repair Act regarding this issue, however, AB 1655
(Jones) which was introduced this year amends BPC § 9880.1 to
authorize BAR to regulate businesses that change and repair tires
as an ARD .]
c) Issue : Continued Regulation by the Bureau.
Background : The Bureau of Automotive Repair (BAR) was created by
SB 51 (Beilenson, Chapter 1578, Statutes of 1971) which
established the Bureau within the Department of Consumer Affairs
(DCA) and codified the Automotive Repair Act (Act). California
became the first state in the nation to implement a comprehensive
program for the regulation of the automotive repair industry.
The primary purpose of the Act was to protect consumers from
unethical and illegal behavior by the automotive repair industry,
and achieve consumer confidence in the California auto repair
industry.
The Act established a statewide automotive repair consumer
protection program, including the requirement that automotive
repair dealers (ARDs) be registered and regulated by BAR. The
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Act also gave BAR the authority to license and regulate official
stations and mechanics in the areas of lamp, brake, and smog
device inspection and repair. The Act protects consumers by
requiring all ARD's, including lamp, brake, and smog stations to:
(1) provide written estimates that detail the parts and labor to
be provided; (2) obtain authorization from their customers prior
to commencing any repair services; and (3) provide customers with
itemized invoices that detail the parts provided and the labor
performed.
The Act further requires BAR to mediate complaints, investigate
violations, and take action against ARDs and licensed technicians
that fail to comply with the Act or regulations adopted under the
Act. BAR has authority to pursue these same consumer protections
against both licensed and unlicensed individuals.
In 1984, BAR implemented a biennial Smog Check Program, also known
as the Motor Vehicle Inspection and Maintenance Program, under SB
33 (Presley, Chapter 892, Statutes of 1982). The bill required
BAR to implement, maintain, and enforce the Smog Check Program,
which licenses Smog Check stations and technicians in an effort
to reduce air pollution from vehicles through mandatory testing
of vehicle emission control components. Smog Check stations must
also register as ARDs to ensure that consumers receive protection
associated with vehicle repairs. In addition, BAR ensures that
the equipment used to perform Smog Check inspections and the
inspections performed at Smog Check stations by Smog Check
Inspectors or Technicians will achieve reductions in vehicle
emissions of hydrocarbons, carbon monoxide, and oxides of
nitrogen.
In 2010, AB 2289 (Eng, Chapter 258, Statutes of 2010) enhanced
BAR's authority to administer the Smog Check Program. That bill
authorized BAR to certify high performing Smog Check stations as
STAR certified, which allows those stations to inspect and repair
vehicles that are likely to be high polluters.
BAR additionally administers the Consumer Assistance Program (CAP),
which was created by SB 198 (Kopp, Chapter 28, Statutes of 1994)
and provides income eligible consumers whose vehicle fails a
biennial Smog Check up to $500 in emissions-related repairs. CAP
can also compensate consumers up to $1,500 for the voluntary
retirement of an eligible vehicle that has failed its Smog Check.
In 2010, CAP began administration of the Enhanced Fleet
Modernization Program (EFMP), which was created by AB 118 (Núñez,
Chapter 750, Statutes of 2007). EFMP offers eligible consumers
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up to $1,500 in compensation to voluntarily retire an eligible
vehicle regardless of Smog Check history. In the South Coast and
San Joaquin Valley air districts, EFMP also offers consumers who
volunteer to retire their vehicle a voucher worth up to $2,500
toward the purchase of a newer, cleaner vehicle in a program
administered by the Air Resources Board (ARB).
The Bureau licenses and regulates more than 36,000 Automotive
Repair Dealers, 4,900 Smog Check Test and Repair Stations, 2,300
Smog Check Test Only Stations, 35 Smog Check Repair Only
Stations, 4,000 STAR Certified Stations, and 2,100 Brake and Lamp
Stations. Individually, BAR licenses some 6,500 Smog Check
Inspectors, 5,600 Smog Check Repair Technicians, and 3,200 Brake
and Lamp Adjusters.
Committee staff noted that the health, safety and welfare of
consumers are protected by the presence of a strong licensing and
regulatory agency with oversight over the automotive repair
industry. The Bureau has made improvements in recent years in
meeting the mandates of the law, improving its licensing and
regulatory activities, and protecting the interests of
Californian consumers.
Recommendation : Committee staff recommended that the Bureau
should be continued and reviewed again in four years so that the
Legislature may once again review whether the issues and
recommendations in the Committee's Background Paper have been
addressed.
[ The current language in this measure reflects this recommended
change .]
4. Current Related Legislation. SB 1243 (Lieu, 2014) Extends until
January 1, 2017, the term of the Veterinary Medical Board, which
provides for the licensing and registration of veterinarians and
registered veterinary technicians and the regulation of the
practice of veterinary medicine by the Veterinary Medical Board.
The bill also extends the terms of the executive officer of the
Veterinary Medical Board. This bill also extends to January 1,
2019, the law regulating the practice of common interest
development managers, and the law establishing the California Tax
Education Council, which provides for the Council to register and
regulate tax preparers. This bill also subjects the board and
organizations to be reviewed by the appropriate policy committees
of the Legislature. ( Status : This bill will also be heard before
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the BP&ED Committee during today's hearing.)
SB 1244 (Lieu, 2014) Extends until January 1, 2019 the term of the
Structural Pest Control Board which provides for the licensing and
regulation of individuals and business involved in the structural
pest control industry in California. The bill also extends the
term of the board's executive officer and subjects the board to be
reviewed by the appropriate policy committees of the Legislature.
( Status : This bill will also be heard before the BP&ED Committee
during today's hearing.)
SB 1245 (Lieu, 2014) Extends until January 1, 2019 the term of the
Dental Hygiene Committee of California which provides for the
licensing and regulation of dental hygienists. The bill also
extends the term of the Committee's executive officer and subjects
the Committee to be reviewed by the appropriate policy committees
of the Legislature.
( Status : This bill will also be heard before the BP&ED Committee
during today's hearing.)
SB 1246 (Lieu, 2014) Extends until January 1, 2019 the term of the
Acupuncture Board which provides for the licensing and regulation
of doctors of acupuncture under the Acupuncture Licensure Act and
subjects the Board to be reviewed by the appropriate policy
committees of the Legislature. ( Status : This bill will also be
heard before the BP&ED Committee during today's hearing.)
SB 1247 (Lieu, 2014) Extends until January 1, 2019 the term of the
California Private Postsecondary Education Act of 2009, which
provides for the regulation of private postsecondary educational
institutions by the Bureau for Private Postsecondary Education in
the Department of Consumer Affairs. The bill also extends the
term of the Student Tuition Recovery Fund under the administration
of the bureau, and subjects the Bureau to review by the appropriate
policy committees of the Legislature. ( Status : This bill will also
be heard before the BP&ED Committee during today's hearing.)
SUPPORT AND OPPOSITION:
Support: None received as of April 23, 2014.
Opposition: None received as of April 23, 2014.
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Consultant:G. V. Ayers