BILL ANALYSIS Ó
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No: AB 1174 Hearing Date: June 27,
2016
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|Author: |Bonilla |
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|Version: |June 20, 2016 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Mark Mendoza |
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Subject: Automotive Repair Act: violations: regulations:
reports
SUMMARY: Requires the Bureau of Automotive Repair (BAR or
Bureau) to adopt regulations regarding its policies and
procedures for handling complaints, investigations, and all the
bureau's methods of resolution, as specified; requires BAR to
post the aforementioned policies and procedures on its website;
requires BAR to track and retain data on every method of
resolution attempted and completed for each automotive repair
dealer (ARD); requires BAR to submit a report to the
Legislature, by January 1, 2018, that details BAR's resolution
efforts, as specified.
Existing law:
1) Establishes BAR under the supervision and control of the
Director of the Department of Consumer Affairs (DCA).
(Business and Professions Code (BPC) § 9882)
2) Regulates the business of automotive repair and makes it
unlawful for any person to be an ARD unless registered with
the BAR. (BPC § 9880-9889.68)
3) Provides the Director of DCA the authority to suspend,
revoke, or place on probation the registration of an ARD, as
specified. (BPC § 9884.7)
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4) Requires an ARD to give the customer a written estimated
price for labor and parts necessary for a specific job.
Requires that no work be done and no charges accrue before
authorization to proceed is obtained by the customer. (BPC §
9884.9)
5) Authorizes the Bureau Chief or his/her designee to determine
when and against whom a citation will be issued and to issue
citations containing orders of abatement and fines against
persons who are performing or who have performed services for
which a license or registration is required under the
statutes and regulations enforced by BAR. (Title 16
California Code of Regulations (CCR) § 3394.42)
This bill:
1)Requires BAR to adopt regulations regarding its policies and
procedures for handling complaints, investigations, and all
the bureau's methods of resolution, including, but not limited
to, education, training, conferences, and mediation. The
regulations include, but are not limited to, the following:
a) How a complaint is to be filed with BAR;
b) How a complaint is to be investigated by BAR;
c) How mediation is used by BAR. Requires the regulations
regarding mediation clearly identify when mediation is
used, how mediation is implemented by BAR, and how
mediation data is collected and reported by BAR.
2)Requires BAR to post on its website the policies and
procedures mentioned in Item #1), above.
3)Requires BAR to track and retain data on every method of
resolution attempted and completed for each ARD, including,
but not limited to, the following:
a) The type of complaint being resolved;
b) The remedy or remedies sought and obtained in
resolution, including, but not limited to, restitution,
refund, work to be redone at no charge, bill adjustments,
returns or exchanges, and the dollar amount of any remedy,
AB 1174 (Bonilla) Page 3
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if applicable;
c) The number of complaints where resolution was attempted
but where no remedy was reached and the number of
complaints where mediation was successful.
4)Requires BAR to submit a report to the Legislature, by January
1, 2018, that details BAR's resolution efforts. Requires BAR
to report the data collected in Item #3), above.
5)Defines "method of resolution" to include, but not be limited
to, education, training, conferences, and mediation.
FISCAL EFFECT: Unknown. This bill has been keyed "fiscal" by
Legislative Counsel. While this bill does have an Assembly
Appropriations analysis, this bill now deals with a
substantially different subject matter and has not been reviewed
by either houses' Appropriation Committees.
COMMENTS:
1. Purpose. The Author is the Sponsor of the bill. According
to the Author, "BAR is tasked with overseeing the state's
ARDs and protecting California consumers, but it is unclear
what policies and procedures they have in place for handling
consumer complaints and their subsequent investigations and
resolutions. AB 1174 will enhance the transparency of auto
repair dealers and BAR, to improve consumer protection by
requiring BAR to adopt regulations, developing a clear
process for handling complaints, investigations and all
methods of resolution. In addition, this bill will help
ensure a higher standard of business practices in the auto
repair industry by requiring BAR to track and retain data on
every resolution to a consumer complaint, attempted and
completed by BAR."
2. The Bureau of Automotive Repair. BAR was created by SB 51
(Beilenson, Chapter 1578, Statutes of 1971) which established
BAR within DCA and codified the Automotive Repair Act (Act).
California became the first state in the nation to implement
a comprehensive program for the regulation of the automotive
repair industry, and creation of the Act was supported by
AB 1174 (Bonilla) Page 4
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consumers and many organizations in the industry. The
primary purpose of the Act was to protect consumers from
unethical and illegal behavior by the automotive repair
industry, and achieve consumer confidence in the California
auto repair industry.
The Act mandated a statewide automotive repair consumer
protection program, including the requirement that ARDs be
registered and regulated by BAR. The Act also gives BAR the
authority to license and regulate official stations and
mechanics in the areas of lamp and brake replacement and
repair, and smog device inspection and repair. The Act
protects consumers by requiring all ARD's, including lamp,
brake, and smog stations to: (1) provide written estimates
that detail the parts and labor to be provided; (2) obtain
authorization from their customers prior to commencing any
repair services; (3) provide customers with itemized invoices
that detail the parts provided and the labor performed.
The Act further requires BAR to mediate complaints,
investigate violations, and take action against ARDs and
licensed technicians that fail to comply with the Act or
regulations adopted under the Act. BAR has authority to
pursue these same consumer protections against both licensed
and unlicensed individuals.
BAR licenses and regulates more than 36,000 ARDs, 5,310 Smog
Check Test and Repair Stations, 2,140 Smog Check Test Only
Stations, 42 Smog Check Repair Only Stations, 4,600 STAR
Certified Stations, and 2,104 Brake and Lamp Stations.
Individually, BAR licenses some 15,582 Smog Check Inspectors,
9,997 Smog Check Repair Technicians, and 3,125 Brake and Lamp
Adjusters.
3. NBC Bay Area Investigation. In February 2016, the NBC Bay
Area Investigative Unit ran a report highlighting how a San
Jose Midas covered up damage to an SUV that fell from a
mechanical lift. While repairing the car, the car crashed on
its side, breaking the right window and piercing the bottom
of the vehicle. After returning the vehicle, the family
noticed several issues with the car and reported them to the
shop. However, discussions with both the Midas and BAR led
to no resolution or remedies for the family.
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Because the BAR did not take swift action against the ARD,
questions were raised about its consumer protection "mission"
and ability to discipline a licensee. The Investigative Unit
discovered that, "fewer than three percent of the complaints
pertaining to auto repairs result in any kind of enforcement
action. That's because under state law the BAR has limited
authority to issue penalties for violations." Currently, BAR
only has citation and fine authority over unlicensed activity
and when an ARD is in violation of the state's Smog Check
Program. All other complaints are required to go through the
typical procedure for handling complaints.
Because of this auto shop cover up, this bill has been
introduced to bring more transparency to the public about how
BAR handles its complaint and disciplinary proceedings.
Additionally, this bill will require BAR to track and retain
data on every method of resolution attempted and completed by
BAR for each ARD.
4. Arguments in Support. The Personal Insurance Federation of
California and
The Association of California Insurance Companies underscore
that, "AB 1174 would make changes to BAR in an effort protect
the automotive repair consumer and increase the transparency
of automotive repair dealers. The bill would require the BAR
adopt regulations regarding the policies and procedures for
handling complaints, investigations and all methods of
resolution, including education, training, conferences, and
mediation, and post to their website these policies and
procedures? PIFC and ACIC have a long-standing record of
supporting measures that enhance transparency and improves
consumer protections. AB 1174 is such a measure."
SUPPORT AND OPPOSITION:
Support:
Allstate Insurance Company
The Association of California Insurance Companies
The Automotive Service Councils of California (Neutral)
The California Autobody Association (Neutral)
The Personal Insurance Federation of California
California Automotive Business Coalition (Neutral)
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Opposition:
None on file as of June 21, 2016.
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