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:
AB 1174
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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. /
AB 1174
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(916) 319-3301
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