BILL ANALYSIS Ó
AB 873
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Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
873 (Jones) - As Amended April 13, 2015
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|Policy |Business and Professions |Vote:|14 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY: This bill, effective January 1, 2017, sunsets the
definitions used for purposes of the Automotive Repair Act and
recasts them with several significant changes, and directs the
Director of the Department of Consumer Services to adopt
regulations defining "minor services." Specifically, this bill:
AB 873
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1)Modifies the definition of "repair of motor vehicles" to:
a) Delete the list of minor services excluded from its
definition, and thus can currently be performed by those
exempted from registration with the Bureau of Automotive
Repair (BAR), and instead requires the Director of the
Department of Consumer Affairs (DCA) to adopt new
regulations by January 1, 2017, defining "minor services."
b) Add roadside services to the list of services that are
excluded from its definition, and thus can be performed by
those not registered with BAR.
1)Modifies the definition of "automotive technician" to delete
the provisions describing the specific work an automotive
technician performs, and instead aligns it with the services
determined in the new regulations.
FISCAL EFFECT:
DCA costs (special funds) to update regulations will be minor
and absorbable within existing resources.
COMMENTS:
1)Purpose. According to the author, this bill "will require the
[BAR], within the [DCA], to determine through regulation which
automotive services are minor and which necessitate oversight.
The Automotive Repair Act of 1971 has not been significantly
update[d] since it was enacted. Existing law should be
updated and a determination of what constitutes minor repair
work and major repair should be developed through the formal
AB 873
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rulemaking process so that:
a) The [BAR] takes a comprehensive technical approach to
determine what business practices necessitate registration
as an automotive repair dealer; and
b) This determination can be periodically updated through
the rulemaking process, as the automotive industry
continues to evolve. This approach allows the industry to
participate through the rulemaking process to help
determine which services are minor and should be excluded
from registration and which services are major and require
registration."
1)Background. In 2014, the Assembly Committee on Business,
Professions and Consumer Protection and the Senate Committee
on Business, Professions and Economic Development (Committees)
conducted joint oversight hearings to review the BAR and eight
other regulatory entities. In its Sunset Report to the
Committees, the BAR raised the issue of ancillary services
which have typically been seen as simple enough to be
considered exempt areas of practice, and therefore not subject
to regulation and registration. Examples include changing and
fixing tires, replacing spark plugs, batteries and fan belts.
The BAR noted that, because of advances in automotive
technology, many of these services now require specialized
repair skills and may require the removal of automotive
systems, engine components, shrouds or other electrical
equipment.
2)Motor Club Exemption. Certified motor clubs are permitted to
provide emergency road services, such as the repair or
replacement of the equipment, tires, or mechanical parts of a
motor vehicle. Current law specifically exempts some of the
motor club emergency roadside services from registration with
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the BAR, such as tire repair and battery installation. This
bill would delete the list of exempted services that normally
exempt motor clubs from registration with the BAR. However,
it will also add language specifically exempting motor club
roadside services.
3)New Approach. This bill is the fourth attempt to bring
tire-only businesses under the enforcement jurisdiction of
BAR. While the previous attempts added the provisions directly
in statute, this bill instead provides the option to make the
changes through the regulatory process which allows for
stakeholder input.
4)Prior Legislation.
a) AB 1665 (Jones) of 2014, would have deleted "repairing
tires" and "changing tires" from the list of repair
services exempt from registration as an automotive repair
dealer under the BAR. It would have also required an
automotive repair dealer to be capable of diagnosing and
servicing TPMS, as specified. This bill was vetoed
Governor Brown. His veto message stated that further review
and input from stakeholders was needed.
b) SB 202 (Galgiani) of 2013, would have deleted repairing
and changing tires from those exclusion lists. It would
have also excluded tire services provided by or on behalf
of a motor club or an operator of a tow truck from the
definitions of "repair of motor vehicles" and "automotive
technician." This bill was held on this Committee's
Suspense File.
c) AB 2065 (Galgiani) of 2012 was substantially similar to
SB 202. This bill was held on this Committee's Suspense
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File.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081