BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 873 (Jones) - Automotive repair ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 25, 2016 |Policy Vote: B., P. & E.D. 9 - | | | 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 873 would delete the existing list of "minor services" that require a business to register with the Bureau of Automotive Repair. Instead, the bill would require the Director of Consumer Affairs to adopt regulations defining what constitutes a minor repair. Fiscal Impact: One-time costs less than $150,000 for the Bureau of Automotive Repair (under the Director of Consumer Affairs) to develop and adopt regulations defining minor repairs (Vehicle Inspection and Repair Fund). Ongoing costs of about $200,000 per year to register and regulate about 1,000 additional businesses that would be required to register under a new definition of minor repairs (Vehicle Inspection and Repair Fund). According to the Bureau, a revised definition of minor repairs would not likely AB 873 (Jones) Page 1 of ? continue to exempt tire dealers and oil change shops. According to the Bureau, there are about 1,000 such businesses in the state that are not already registered with the Bureau. The costs to register and take any necessary enforcement actions against the newly registered businesses would be offset by the current $200 annual registration fee imposed by the Bureau. Background: Existing law, the Automotive Repair Act (the Act), requires automotive repair dealers who engage in the business of repairing or diagnosing malfunctions of motor vehicles to be licensed and registered with the Bureau of Automotive Repair. For purposes of the Act, "repair of motor vehicles" means any maintenance and repair work performed by an automotive repair dealer, including body repair work, but excluding the following: (1) repairs made under a commercial business agreement; (2) repairing tires and changing tires; (3) lubricating vehicles; (4) installing light bulbs, batteries, windshield wiper blades and other minor accessories; (5) cleaning, adjusting, and replacing spark plugs; (6) replacing fan belts, oil, and air filters; and (7) other minor services customarily performed by gasoline service stations. There are currently about 34,000 automotive repair dealers licensed in California, each of which pays an annual $200 fee for licensure. Proposed Law: AB 873 would delete the existing list of "minor services" that require a business to register with the Bureau of Automotive Repair. Instead, the bill would require the Director of Consumer Affairs to adopt regulations defining what constitutes a minor repair. Specific provisions of the bill would: Exclude the installation of propulsive batteries from the current list of minor services; Require the Director of Consumer Affairs to adopt regulations by January 1, 2018 defining "minor services"; Prohibit the changing of propulsive batteries from being categorized as "minor services"; Delete the current list of "minor services" and require the regulations adopted by the Director to govern "minor AB 873 (Jones) Page 2 of ? services"; Revise the definition of "automotive technician"; Define roadside services. Related Legislation: There have been several bills in recent years, including AB 1665 (Jones, 2014), AB 2065 (Galgiani, 2012), and SB 202 (Galgiani, 2013) that would have required businesses that change or repair tires to register with the Bureau. AB 1665 was vetoed by the Governor and AB 2065 and SB 202 were held in the Assembly Appropriations Committee. Staff Comments: During the sunset review process, conducted by the Senate and Assembly Business and Professions Committees, the Bureau raised issues relating to the current list of "minor services". According to the Bureau, advances in automotive technology mean that services such as tire replacements or changing spark plugs are much more complex than they were in prior years. The Bureau argued that the more technically complex nature of these services means that the Bureau should have regulatory oversight over businesses that provide those services. According to data provided by the Bureau, it has received between 50 and 200 complaints per year against businesses providing tire services that are not registered with the Bureau. The only costs that may be incurred by a local agency relate to crimes and infractions. Under the California Constitution, such costs are not reimbursable by the state. -- END --