BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1174


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1174 (Bonilla)


          As Amended  August 2, 2016


          Majority vote


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          |ASSEMBLY:  |      |(January 27,   |SENATE: |36-0  |(August 18,      |
          |           |      |2016)          |        |      |2016)            |
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                 (vote not relevant)




          Original Committee Reference:  B. & P.


          SUMMARY:  Requires the Bureau of Automotive Repair (BAR) to  
          adopt regulations regarding its policies and procedures for  
          handling complaints, investigations, and all the BAR's methods  
          of resolution, as specified; requires BAR to post the 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. 


          The Senate amendments delete the Assembly version of this bill,  
          and instead:










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          1)Requires BAR to adopt regulations regarding its policies and  
            procedures for handling complaints, investigations, and all  
            the BAR'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; and,


             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 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; and,


             c)   The number of complaints where resolution was attempted  
               but where no remedy was reached and the number of  
               complaints where mediation was successful.









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          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:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, this bill will result  
          in negligible state costs.


          COMMENTS:  


          Purpose.  This bill is sponsored by the author.  According to  
          the author, "[The] BAR receives approximately 15,000 consumer  
          complaints involving automotive repair dealers each year.  While  
          every complaint results in some form of action by BAR, over 95%  
          of them never result in disciplinary action, such as a citation  
          or fine, and thus are not subject to public disclosure.  BAR  
          posts complaints and findings to their website, but only if  
          disciplinary action is taken.


          "[This bill] will improve consumer protection and increase the  
          transparency of businesses and state agency by requiring BAR to  
          adopt, and post to their website, regulations regarding the  
          bureau's policies and procedures for handling complaints,  
          investigations and all methods of resolution.  In addition, it  
          requires BAR to track and retain data on all attempted and  
          completed resolution efforts for each auto repair dealer and to  
          annually report the data to the Legislature.  Lastly, [this  
          bill] clarifies the existing authority of the Director of the  
          Department of Consumer Affairs to expand BAR's citation and  
          fining capabilities, to eliminate bad business practices and  
          create a higher standard in the auto repair industry."










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          Background.  The Bureau of Automotive Repair.  The BAR was  
          created by SB 51 (Beilenson), Chapter 1578, Statutes of 1971,  
          which established the BAR within the 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 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.








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          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. 


          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. 


          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.


          This bill was substantially amended in the Senate and the  
          Assembly-approved version of this bill was deleted.  This bill,  
          as amended in the Senate, is inconsistent with the Assembly  
          actions and the provisions of this bill, as amended in the  
          Senate, have not been head in an Assembly policy committee.


          Analysis Prepared by:                                             
                          Vincent Chee / Gabby Nepomuceno / B. & P. /  








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