BILL ANALYSIS Ó
SB 778
Page 1
SENATE THIRD READING
SB
778 (Allen)
As Amended August 19, 2016
Majority vote
SENATE VOTE: 22-12
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+-----------------------+---------------------|
|Privacy |8-0 |Chau, Wilk, Calderon, | |
| | |Cooper, Dababneh, | |
| | |Gatto, Gordon, Low | |
| | | | |
|----------------+-----+-----------------------+---------------------|
|Business & |14-1 |Salas, Baker, Bloom, |Brough |
|Professions | |Campos, Chávez, Dodd, | |
| | |Eggman, Gatto, Gomez, | |
| | |Holden, Jones, Mullin, | |
| | |Ting, Wood | |
| | | | |
|----------------+-----+-----------------------+---------------------|
|Appropriations |17-3 |Gonzalez, Bloom, |Bigelow, Gallagher, |
| | |Bonilla, Bonta, |Obernolte |
| | |Calderon, Chang, Daly, | |
| | |Eggman, Eduardo | |
| | |Garcia, Holden, Jones, | |
SB 778
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| | |Quirk, Santiago, | |
| | |Wagner, Weber, Wood, | |
| | |McCarty | |
| | | | |
| | | | |
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SUMMARY: Requires an automotive repair dealer (ARD) who
performs oil change services to use the manufacturer's published
oil drain schedule, except as specified, when recommending an
oil change to a customer; establishes a new registration type
under the Bureau of Automotive Repair (BAR) for automotive
maintenance providers (AMPs); subjects AMPs to the oil changing
requirements and other select ARD requirements, as specified;
and makes other conforming changes. Specifically, this bill:
1)Makes several findings and declarations regarding waste of
automotive oil and oil change intervals, including that to
reduce waste, it is the intent of the Legislature to ensure
that an ARD or AMP follows a vehicle manufacturer's published
maintenance schedule unless the manufacture specifies
conditions that require shorter oil change intervals.
2)Amends the title of the Automotive Repair Act to the
Automotive Repair and Maintenance Act.
3)Defines "Automotive Maintenance Provider" as a person who, for
compensation, engages in the business of the preventative
automotive maintenance services associated with fluid and
filter changes, fluid treatments, and belt and windshield
wiper blade replacement.
4)Defines "recommended" or "recommendation" to mean any written
recommendation, including, but not limited to, a
recommendation of an oil drain interval in the form of a
window sticker or a key tag, or through programmable settings
in the vehicle's oil life indicator.
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5)Provides that "recommended" or "recommendation" does not mean
resetting a preset or nonprogrammable oil life indicator or an
oil life monitor based on a mathematical algorithm of the
vehicle's usage.
6)Requires an ARD or an AMP who performs oil change services and
recommends a date or mileage for an oil drain interval to
follow the vehicle manufacturer published maintenance
schedule, except as specified.
7)Provides that, if an ARD or an AMP recommends a date or
mileage for an oil drain interval that deviates from the
vehicle manufacturer's published maintenance schedule for
reasons, including, but not limited to, compliance with a
consumer's preference, the basis for the date or mileage
recommendation shall be noted on the final invoice or on a
document attached to the final invoice.
8)Specifies that written communications and advertisements that
do not suggest a date or mileage interval are not a
recommendation.
9)Specifies that none of the oil change requirements under this
bill shall be construed as prohibiting the customer from
selecting any date or mileage for an oil drain interval of his
or her choice and having that choice reflected on future
recommendations from an ARD or an AMP.
10)Specifies that, when an ARD or an AMP performs an oil change
service, the dealer shall include the following oil change
disclosure statement on the final invoice or on a document
attached to the final invoice: "It is important to change
your oil at the proper intervals. Your vehicle manufacturer
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publishes oil change intervals in your owner's manual and on
the manufacturer's Web site."
11)Subjects AMPs to the same registration requirements as ARD's
and makes conforming changes. Excludes language and
provisions specific to the repair of motor vehicles, including
repair specific terms, such as "install" or "retrofit"; the
requirement for compliance with Penal Code Section 551
relating to referrals and agreements with insurance companies;
requirements relating to repair-specific estimates and
repair-specific activities; and the prohibition against liens
without a valid registration.
12)Specifies that a facility cannot register as both an
"automotive repair dealer" and an "automotive maintenance
provider."
13)Codifies DCA's current process for purchasing vehicles for
enforcement actions against automotive repair dealers and
automotive maintenance providers.
14)Incorporates the language contained in AB 873 (Jones) of the
current legislative session to avoid chaptering conflicts.
15)Makes the enactment of this bill contingent on the enactment
of AB 873 (Jones).
16)Makes other technical and conforming changes.
FISCAL EFFECT: According to the Assembly Appropriations
Committee:
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1)Major costs of $1.7 million in 2017-18 and $1.5 million in
2018-19 (special funds) to the Bureau to fund 15.0 two-year
limited-term positions to promulgate regulations and for
inspection-related activities.
2)Minor costs for licensing of $78,000 in 2017-18 and $70,000
annually ongoing to the Bureau to fund 1.0 Program Technician
II to process AMP registration applications.
3)Ongoing costs of $185,000 for Attorney General (AG) and
$36,000 for the Office of Administrative Hearings beginning in
2017-18.
4)Costs will partially offset by approximately $500,000 per year
in additional fee revenue from approximately 2,500 new AMP
registrants.
COMMENTS: This bill is intended to protect consumers and the
environment by ensuring that all drivers receive accurate
information about when they need to change the oil in their
cars, so they can avoid needless oil changes, save time and
money, and reduce oil waste. The bill would prohibit auto
dealers, repair shops, and maintenance shops from using window
stickers and other written reminders that recommend oil changes
more frequently than the vehicle manufacturer recommends. This
bill is sponsored by Californians Against Waste.
According to an article published by Edmunds, a Web-based
automotive information provider, a Jiffy Lube customer who buys
high quality oil but follows the window sticker recommendation
of "three months or 3,000 miles" would waste $369 and 15.2
quarts of useable oil every year. Over five years of the car's
life and 60,000 miles of driving, this would amount to $1,847
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and 125 quarts of wasted oil.
This bill establishes a new registration scheme under the BAR
for AMPs, which is similar to the registration scheme for ARDs.
The enactment of this bill is contingent on the enactment of AB
873 (Jones), which deletes the current list of minor repairs
exempted from registration with the Bureau of Automotive Repair
(BAR), effective January 1, 2018, and requires the director of
the Department of Consumer Affairs (DCA), prior to January 1,
2018, to adopt regulations defining a new list; excludes
propulsive batteries from the current list of minor services;
and excludes motor clubs and operators of tow trucks from the
definition of roadside services.
Analysis Prepared by:
Jennie Bretschneider / P. & C.P. / (916)
319-2200
FN: 0004618