BILL ANALYSIS Ó
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CONCURRENCE IN SENATE AMENDMENTS
AB
873 (Jones)
As Amended August 19, 2016
Majority vote
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|ASSEMBLY: |77-0 |(May 7, 2015) |SENATE: |39-0 |(August 24, |
| | | | | |2016) |
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Original Committee Reference: B. & P.
SUMMARY: Requires the Bureau of Automotive Repair (BAR) to
adopt regulations defining minor services that may be performed
on an automobile without registration; deletes, commencing
January 1, 2018, the current list of minor automotive services
and specifies that, at the time, the BAR's prior regulations
will remain in effect but may be amended as necessary; and makes
conforming changes.
The Senate amendments add chaptering language that makes this
bill contingent on the enactment of SB 778 (Allen) of the
current Legislative Session.
FISCAL EFFECT: According to the Senate Appropriations
Committee:
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1)One-time costs less than $150,000 for the BAR (under the
Director of Consumer Affairs) to develop and adopt regulations
defining minor repairs (Vehicle Inspection and Repair Fund).
2)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
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.
COMMENTS:
Purpose. This bill is sponsored by the author. According to
the author, this bill "will require the [BAR], within the
[Department of Consumer Affairs], 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 rulemaking
process so that:
1)The [BAR] takes a comprehensive technical approach to
determine what business practices necessitate registration as
an automotive repair dealer; and
2)This determination can be periodically updated through the
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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."
Background. The Automotive Repair 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 BAR. It also defines "repair of motor
vehicles" as any maintenance and repair work performed by an
automotive repair dealer, including body repair work, but as
excluding: 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.
Minor Services. During the BAR's 2014 sunset review oversight
hearing, the BAR raised the issue of whether certain ancillary
services that are not subject to registration should be.
Historically, these services were viewed as simple services that
were often performed at gasoline service stations and carried a
lower risk of consumer harm. However, the BAR noted that,
because of advances in automotive technology, many of the
services require specialized repair skills and may require the
removal of automotive systems, engine components, shrouds or
other electrical equipment.
One of the examples cited by the BAR was tire services. The
federal Transportation Recall Enhancement, Accountability and
Documentation (TREAD) Act requires that new vehicles of a
specified weight be equipped with a Tire Pressure Monitoring
System (TPMS). When a vehicle with a TPMS is serviced, the
technician may need specialized training, such as on how to
update the vehicle's on-board diagnostic system. A
malfunctioning TPMS can lead to tire blowouts, undetected slow
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leaks, and other dangerous conditions.
Another example was spark plugs. According to the BAR, some
vehicle manufacturers have made spark plugs inaccessible without
removal of other major systems, such as the removal of motor
mounts or parts of entire engine. Because failure to perform
these services correctly can result in serious harm to
consumers, the BAR believes that an automotive repair dealer
registration should be required to perform those types of
repairs. This bill would authorize the BAR to update the list
of minor services through regulations.
Propulsive Batteries. According to stakeholders, propulsive
batteries are batteries that power or fuel a vehicle's movement,
such as in an electric automobile. Ordinary car batteries only
power various electronics within a vehicle, such as the starter
and interior or exterior lights. Because a propulsive battery
requires specialized training, this bill excludes propulsive
batteries from the list of minor services.
Analysis Prepared by:
Vincent Chee / B. & P. / (916) 319-3301 FN:
0004862