BILL ANALYSIS                                                                                                                                                                                                    Ó

                                                                     SB 778

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          778 (Allen)

          As Amended  August 19, 2016

          Majority vote

          SENATE VOTE:  22-12

          |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, |                     |


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          |                |     |Quirk, Santiago,       |                     |
          |                |     |Wagner, Weber, Wood,   |                     |
          |                |     |McCarty                |                     |
          |                |     |                       |                     |
          |                |     |                       |                     |

          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  

          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  

          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  


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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  

          4)Costs will partially offset by approximately $500,000 per year  
            in additional fee revenue from approximately 2,500 new AMP  

          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)  
          FN: 0004618