BILL ANALYSIS Ó SB 1242 Page 1 Date of Hearing: July 2, 2014 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 1242 (Lieu) - As Introduced: February 20, 2014 Policy Committee: Business and Professions Vote: 13 - 0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill deletes obsolete legislative review procedures and instead subjects the powers and duties of the Bureau of Automotive Repair (BAR) to a sunset review-like process by the Legislature as if BAR's provisions were scheduled to be repealed on January 1, 2019. The bill also deletes outdated provisions of the Automotive Repair Act. FISCAL EFFECT 1)No new costs. On-going Special Fund costs of approximately $195 million annually (Vehicle Inspection and Repair Fund, High Polluter Repair or Removal Account, Enhanced Fleet Modernization Subaccount) supporting 592.4 PY. This fund is fully self-supporting with fee revenue. 2)Costs to the Department of Consumer Affairs of updating the Automotive Repair Act are minor and absorbable within existing resources. COMMENTS 1)Purpose . In March 2014, the Senate Business Professions and Economic Development Committee and the Assembly Business, Professions and Consumer Protection Committee conducted joint oversight hearings to review nine regulatory entities. This bill and five other sunset review bills are intended to implement the recommended legislative changes as a result of review by the Committees. While this bill does not add a sunset date to the BAR, it updates its review procedures to SB 1242 Page 2 reflect the current legislative review and oversight process. 2)Background . BAR is responsible for regulating the automotive repair marketplace and for administering the smog check program. BAR also administers the Consumer Assistance Program (CAP), which provides for repair assistance and vehicle retirement payments to eligible vehicle owners if their vehicle fails a smog check. In cooperation with the Air Resources Board, BAR also participates in the administration of the Enhanced Fleet Modernization Program (EFMP), which provides voucher payments to owners of high-polluting vehicles in exchange for the retirement or replacement of those vehicles, as specified. BAR 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 approximately 6,500 Smog Check Inspectors, 5,600 Smog Check Repair Technicians, and 3,200 Brake and Lamp Adjusters. 3)Related Legislation . This bill is one of six bills introduced this session to extend the sunset on licensing boards within the Department of Consumer Affairs - including SB 1244 (Lieu), and SB 1245 (Lieu), which are before this committee today and SB 1243 (Lieu), SB 1246 (Lieu), and SB 1247 (Lieu) which are pending a hearing in this committee. Analysis Prepared by : Jennifer Swenson / APPR. / (916) 319-2081