BILL ANALYSIS Ó
AB 1174
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GOVERNOR'S VETO
AB
1174 (Bonilla)
As Enrolled September 8, 2016
2/3 vote
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|ASSEMBLY: | |(January 27, |SENATE: |36-0 |(August 18, |
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(vote not relevant)
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|COMMITTEE VOTE: |16-0 |(August 24, |RECOMMENDATION: |concur |
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(B. & P.)
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|ASSEMBLY: |79-0 |(August 30, | | | |
AB 1174
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Original Committee Reference: B. & P.
SUMMARY: Requires the Bureau of Automotive Repair (BAR) to
adopt regulations regarding its policies and procedures for
handling specified enforcement actions, as specified, requires
the BAR to track and retain data on every method of resolution,
and requires the BAR to submit a report that details the BAR's
resolution efforts to the Legislature by January 1, 2018, and
annually thereafter, as specified.
The Senate amendments delete the original contents of this bill
and insert the current contents.
FISCAL EFFECT: According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS:
Purpose. This bill is sponsored by the author. According to
the author, the "BAR is tasked with overseeing the state's ARDs
[automotive repair dealers] 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. [This bill] will enhance the
transparency of [ARDs] and BAR, improve consumer protection by
requiring BAR to adopt regulations, and develop a clear process
AB 1174
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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."
Background. In February 2016, the National Broadcasting Company
(NBC) Bay Area Investigative Unit ran a report which
investigated a situation in which a San Jose Midas automobile
repair shop covered up damage to a SUV (sport utility vehicle)
that fell from a mechanical lift. While the vehicle was
elevated by a mechanical lift, the vehicle fell on its side and
was significantly damaged. After the shop returned the vehicle,
the family noticed several issues and reported the issues to the
shop.
According to the NBC report, the shop initially denied that
there were any issues. Eventually, whistleblower employees
contacted the family and explained that the district manager
ordered them to repair the vehicle without informing the family
of what happened. The NBC report states that the district
manager "confirmed 'the lift malfunctioned' and in a memo to the
[family] admitted, there was a 'cover-up,' but [the district
manager] denied any involvement and blamed it all on [the]
employees."
According to the NBC report, the family filed a complaint with
the BAR. However, at the time, discussions with both Midas and
the BAR led to no resolution for the family and the family
considered suing.
Bureau of Automotive Repair. The BAR is the state agency tasked
with enforcing the Automotive Repair Act. Both the Automotive
Repair Act and the BAR were established by SB 51 (Beilenson),
Chapter 1578, Statutes of 1971. The purpose of the Act is to
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provide an additional layer of consumer protection from unsafe
and unethical automotive repair practices and improve consumer
confidence.
The Act protects consumers by establishing various notice and
technician competency requirements that ARDs must follow. Those
who wish to perform automotive repairs for a fee must register
with the BAR and comply with the requirements, which include
providing various notices and prohibit incompetent, negligent,
and fraudulent practices. The Act makes it a crime, usually a
misdemeanor, for failing to register or otherwise fail to comply
with the requirements if performing repairs as defined by the
Act.
The Act authorizes the BAR to mediate complaints, investigate
violations, and take disciplinary action against ARDs and
technicians that fail to comply with the Act or the BAR's
regulations. The BAR can be viewed as a first line of defense
against unfair, deceptive, and harmful practices. The BAR's
broad investigatory authority includes the ability to perform
interviews, inspect premises, and utilize sting operations.
However, the BAR is an administrative and regulatory agency, not
a law enforcement agency. The BAR's statutory authority is
limited to administrative fines and various actions related to
an ARD's registration. Further, as a state agency, it is
required to comply with the due process rights of its
registrants, and all registrants are entitled to notice and a
hearing when being deprived of a registration.
Still, operating without a registration when required by the Act
is a crime. If the BAR finds an egregious case, it is
authorized to refer the case to a district attorney or city
attorney for prosecution. In addition, consumers may sue for
damages.
AB 1174
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GOVERNOR'S VETO MESSAGE:
I am returning Assembly Bill 1174 without my signature.
This bill requires the Bureau of Automotive Repair (Bureau) to
adopt regulations regarding its policies and procedures for
handling complaints and investigations.
This bill is unnecessary and duplicative of existing practice at
the Bureau.
Analysis Prepared by:
Vincent Chee / B. & P. / (916) 319-3301 FN:
0005060