BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 873 (Jones) - Automotive repair
          
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          |Version: May 25, 2016           |Policy Vote: B., P. & E.D. 9 -  |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: August 1, 2016    |Consultant: Brendan McCarthy    |
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          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  







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            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  








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            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.




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