BILL ANALYSIS Ó
SB 1242
Page 1
Date of Hearing: June 24, 2014
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Susan A. Bonilla, Chair
SB 1242 (Lieu) - As Introduced: February 20, 2014
SENATE VOTE : 36-0
SUBJECT : Automotive repair: Bureau of Automotive Repair.
SUMMARY : Subjects the powers and duties of the Bureau of
Automotive Repair (BAR) to review by the appropriate policy
committees of the Legislature as if these provisions were
scheduled to be repealed on January 1, 2019, and deletes
obsolete references under the Automotive Repair Act (Act).
Specifically, 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provisions were scheduled to be repealed on January 1, 2019.
2) Deletes the outdated requirement for the BAR to be reviewed
in 2003 and removes an obsolete reference to the repealed
Joint Committee on Boards, Commissions, and Consumer
Protection (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 BAR.
EXISTING LAW:
1) Licenses and regulates automotive repair dealers (ARDs) under
the Act, by the BAR within the Department of Consumer Affairs
(DCA). (Business and Professions Code (BPC) Sections 9880 et
seq.)
2) Requires that in 2003, and every four years thereafter, the
Joint Committee hold a public hearing to evaluate and review
the effectiveness and efficiency of the BAR, as specified.
(BPC 9882)
3) Provides for the Governor to appoint, subject to confirmation
by the Senate, a chief of the BAR, and specifies that before
SB 1242
Page 2
a chief is appointed, the Governor shall give due
consideration to any person or persons recommended by the
Board. (BPC 9882.2)
FISCAL EFFECT : Unknown
COMMENTS :
1)Purpose of this bill . This bill requires BAR to be subject to
review by the appropriate policy committees of the Legislature
as if its provisions were scheduled to be repealed on January
1, 2019. This allows the Legislature to comprehensively
review the BAR again in four years. This bill is
author-sponsored.
2)Author's statement . According to the author, "This bill is
one of six 'sunset review bills' authored by Senator Lieu.
This bill will explicitly subject [BAR] to review by the
appropriate policy committees of the Legislature again in four
years, and make technical, updating changes to the [Act].
"Earlier in 2014, the Senate Business, Professions and Economic
Development Committee and the Assembly Business, Professions
and Consumer Protection Committee (Committees) conducted joint
oversight hearings to review 9 regulatory entities: [BAR];
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 bill, and the accompanying sunset bills, are intended to
implement legislative changes as recommended by staff of the
Committees 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)Background and sunset extension . BAR was established within
DCA in 1971 by SB 51 (Beilenson), Chapter 1578, Statutes of
1971. BAR's mission is to, "protect? the health and interests
of California consumers by administering an effective vehicle
emissions reduction program and ensuring quality automotive
repair services from its licensees." The Act mandates a
statewide automotive repair consumer protection program that
SB 1242
Page 3
includes the following:
a) Requires ARDs to be registered and regulated by BAR;
b) Gives BAR the authority to license and regulate official
stations and mechanics in the areas of lamp, brake, and
smog device inspection and repair;
c) Requires consumer protections, including requiring all
ARDs, and lamp, brake, and smog stations, to provide
written estimates and itemized invoices and to obtain prior
written work authorization;
d) Requires BAR to mediate complaints, investigate
violations, and take action against ARDs that fail to
comply;
e) Administers the Smog Check Program to reduce emissions;
and
f) Administers the Consumer Assistance Program, which
provides assistance to income-eligible consumers who fail
smog checks.
BAR licenses and regulates more than 36,000 ARDs, 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. BAR was last subject to sunset review in 2013.
In BAR's 2014 Sunset Background Paper, Committee staff
recommended that the licensing and regulation of the
automotive repair industry continue to be regulated by the
current BAR in order to protect the interests of the public,
and that the BAR be reviewed once again in four years.
Committee staff found that, "The [BAR] 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. The [BAR] should be
continued and reviewed again in 4-years so that the
Legislature may once again review whether the issues and
recommendations in this background paper have been addressed."
SB 1242
Page 4
4)Key issues and updates relating to BAR's sunset background
paper . There were a number of issues raised by the
Committees; however, none of these issues required any
statutory changes at present time.
General Fund (GF) loans: Since Fiscal Year 2002-03, BAR loaned
$219 million to the General Fund, of which $40 million has
been repaid. The current budget anticipates repaying $24
million in Fiscal year 2014-15, leaving an outstanding balance
of $155M.
Committee staff recommended that BAR inform the Committees of
the impact that the outstanding loans have had on BAR's
operations and its ability to expand its program, and the
current status of the loans and any plans to repay those
loans. In BAR's response to the Sunset Background Paper, BAR
stated that the outstanding general fund loans are not
impacting BAR's operations.
Updating registration requirements for ARDs: BAR reported that
the definition of "repair of motor vehicles" may need updating
to clarify what constitutes maintenance and repair of
vehicles, as technology changes over time and ancillary
services increasingly require specialized repair skills. For
example, replacing spark plugs or batteries may require
removing engines or other equipment, and tire services may
require updating a vehicle's on-board diagnostic system for
vehicles equipped with tire pressure monitoring systems
(TPMS).
Committee staff recommended that BAR inform the Committees on
what BAR is doing to protect consumers in this area, and
whether BAR's regulatory authority is sufficient to make
necessary changes or if BAR recommended legislative changes to
enhance or clarify its authority. BAR responded that the
Bureau protects consumers by requiring registration as an ARD
when it is determined that certain automotive technologies
require mechanical expertise in order to ensure the safe
operation of a vehicle. BAR also noted bills in recent years
that sought to propose amending portions of the automotive
repair act, particularly relating to repairing and changes
tires, and that such issues warrant discussion to determine
whether registration might be beneficial and cost-effective.
SB 1242
Page 5
BAR also stated that, "clear regulatory authority to determine
what is a minor or major service would provide better consumer
protection than current law allows."
5)Related legislation . AB 1665 (Jones and Mullin) of 2014 would
authorize BAR to regulate businesses that change and repair
tires as an ARD, and requires ARDs and tire dealers, if a
vehicle is manufactured with a TPMS, to be capable of
diagnosing and servicing the TPMS.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Eunie Linden / B.,P. & C.P. / (916)
319-3301