BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1174|
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THIRD READING
Bill No: AB 1174
Author: Bonilla (D)
Amended: 8/2/16 in Senate
Vote: 21
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 9-0, 6/27/16
AYES: Hill, Bates, Block, Gaines, Galgiani, Hernandez,
Jackson, Mendoza, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 78-0, 1/27/16 (Consent) - See last page for
vote
SUBJECT: Automotive Repair Act: violations: regulations:
reports
SOURCE: Author
DIGEST: This bill 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 Web site;
requires BAR to track and retain data on every method of
resolution attempted and completed for each automotive repair
dealer (ARD); and requires BAR to submit a report to the
Legislature, by January 1, 2018, that details BAR's resolution
efforts, as specified.
AB 1174
Page 2
ANALYSIS:
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)
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
AB 1174
Page 3
used, how mediation is implemented by BAR, and how
mediation data is collected and reported by BAR.
2)Requires BAR to post on its Web site 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,
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.
6)Clarifies that "policies and procedures" not include the
Bureau's policies and procedures for conducting undercover
investigations.
Background
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
AB 1174
Page 4
resolution or remedies for the family.
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.
Comments
The ARD's position. The Automobile Service Councils of
California, the California Autobody Association, and the
California Automotive Business Coalition have all take a neutral
position on AB 1174.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
SUPPORT: (Verified8/2/16)
Allstate Insurance Company
The Association of California Insurance Companies
The Personal Insurance Federation of California
OPPOSITION: (Verified8/2/16)
AB 1174
Page 5
None received
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."
ASSEMBLY FLOOR: 78-0, 1/27/16
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,
Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,
Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,
Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,
Lopez, Low, Maienschein, Mayes, McCarty, Medina, Melendez,
Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson,
Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,
Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Mathis
Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104
8/3/16 18:17:28
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