BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 778|
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VETO
Bill No: SB 778
Author: Allen (D)
Amended: 8/19/16
Vote: 21
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 4-1, 4/29/15
AYES: Hill, Jackson, Leno, Pavley
NOES: Gaines
NO VOTE RECORDED: Wieckowski, Bates
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 5-1, 1/11/16
AYES: Hill, Block, Hernandez, Jackson, Wieckowski
NOES: Bates
NO VOTE RECORDED: Berryhill, Galgiani, Mendoza
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 22-12, 1/25/16
AYES: Allen, Beall, Block, De León, Glazer, Hall, Hancock,
Hernandez, Hill, Jackson, Lara, Leno, Leyva, Liu, McGuire,
Mendoza, Mitchell, Monning, Pan, Pavley, Roth, Wieckowski
NOES: Anderson, Berryhill, Cannella, Fuller, Gaines, Huff,
Moorlach, Morrell, Nguyen, Nielsen, Runner, Vidak
NO VOTE RECORDED: Bates, Galgiani, Hertzberg, Hueso, Stone,
Wolk
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 7-2, 8/25/16
(Pursuant to Senate Rule 29.10)
AYES: Hill, Block, Galgiani, Hernandez, Jackson, Mendoza,
Wieckowski
NOES: Bates, Gaines
SENATE FLOOR: 29-10, 8/29/16
AYES: Allen, Beall, Block, Cannella, De León, Galgiani,
Glazer, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso,
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Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza,
Mitchell, Monning, Nielsen, Pan, Pavley, Roth, Wieckowski,
Wolk
NOES: Anderson, Bates, Berryhill, Fuller, Gaines, Moorlach,
Morrell, Nguyen, Stone, Vidak
ASSEMBLY FLOOR: 66-10, 8/22/16 - See last page for vote
SUBJECT: Automotive repair: oil changes: notification to
customers
SOURCE: Californians Against Waste
DIGEST: This bill 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; adds a contingent enactment provision with AB 873
(Jones); adds chaptering out amendments with AB 873 (Jones); and
makes other conforming changes.
ANALYSIS:
Existing law:
1) Establishes the BAR under the supervision and control of the
Director of the DCA to enforce and administer the Automotive
Repair Act (Act). (Business and Professions Code (BPC) §§
9880-9889.68)
2) Defines an "automotive repair dealer" as a person who engages
in the business of repairing or diagnosing malfunctions of
motor vehicles for compensation.
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(BPC § 9880.1(a))
3) Defines the "repair of motor vehicles" to mean all
maintenance of, and repairs to, motor vehicles, except the
following services: (BPC § 9880.1)
a) Repairing tires;
b) Changing tires;
c) Lubricating vehicles;
d) Installing light bulbs, batteries, windshield wiper
blades and other minor accessories;
e) Cleaning, adjusting and replacing spark plugs;
f) Replacing fan belts, oil and air filters; and,
g) Other minor services that the director determines to
be customarily performed by a gasoline service station.
1) Provides that the Director shall not designate a service as
minor if the Director finds that performance of the service
requires mechanical expertise, has given rise to a high
incidence of fraud or deceptive practices or involves a part
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of the vehicle essential to its safe operation. (BPC §
9880.1(e))
2) Makes it unlawful for any person to engage in the work of an
ARD unless the person has a current, valid registration in
accordance with the Act. (BPC § 9884.6)
3) Makes a violation of the ARD provisions of the Act, which
include among other things prohibitions on making untrue or
misleading statements; committing fraud or gross negligence;
and willful disregard for accepted trade standards for good
and workmanlike repair; a misdemeanor punishable by a fine of
up to $1,000 or six months imprisonment, or both. (BPC §§
9884.7, 9889.20)
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.
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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 "minor services" as services provided by an AMP.
5) Provides that, in order to avoid unnecessary delays to
promote prompt enforcement, motor vehicles purchased pursuant
to this section are exempt from existing laws, rules,
resolutions, or procedures that are otherwise applicable to
the acquisition of motor vehicles to be used by a state
agency.
6) Authorizes DCA to purchase vehicles of various makes, models,
and condition for investigative purposes, as specified.
7) Prohibits a facility registered with the Director from
registering as both an automotive repair dealer and an
automotive maintenance provider. Provides a business that
maintains multiple facilities to register the facilities
separately with the individual facilities registered as an
automotive repair dealer or an automotive maintenance
provider.
8) Authorizes BAR to adopt, amend, or repeal regulations to
regulate AMPs.
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9) 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.
10)Provides that "recommended" or "recommendation" does not mean
written communications or advertisements that do not suggest
timing or mileage for an oil drain interval or resetting a
preset or nonprogrammable oil life indicator or an oil life
monitor based on a mathematical algorithm of the vehicle's
usage.
11)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.
12)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.
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13)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.
14)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 publishes oil change intervals in
your owner's manual and on the manufacturer's Web site."
15)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:
a) Repair specific terms, such as "install" or
"retrofit";
b) The requirement for compliance with Penal Code § 551
relating to referrals and agreements with insurance
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companies;
c) Requirements relating to repair-specific estimates and
repair-specific activities; and
d) The prohibition against liens without a valid
registration.
1) Requires the AMP registration and renewal fee be no more than
$200 for each place of business in the state.
2) Adds a contingent enactment provision with AB 873 (Jones).
3) Incorporates the language contained in AB 873 (Jones) of the
current legislative session to avoid chaptering conflicts.
4) Makes other conforming changes.
Background
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According to the Author, "For decades, drivers have been told
that taking proper care of their vehicle means getting the oil
changed every three months or 3,000 miles. While this may have
been true 30 years ago, advances in motor oil and engine
technology have allowed drivers to extend oil change intervals
greatly. Most vehicles built since 2000 call for an oil change
at intervals of 7,500 or greater. Further, many new vehicles
require the use high quality motor oil that can last 10,000 or
even 25,000 miles between changes. However, most busy car
owners rarely read their owner's manuals; and therefore, have no
idea how often they should change their oil. They simply follow
the windshield reminder sticker, which stubbornly insists on
following the outdated 3,000 miles change interval. In fact, a
2012 survey by CalRecycle indicated almost 10 million
Californians change their motor oil every 3,000 miles or less.
This means Californians are unnecessarily wasting money and
needlessly wasting oil simply because they are cautiously
following the recommendations of their repair dealer. [This
bill] will finally put an end to this wasteful practice by
requiring any shop performing oil changes to follow the
manufacturer's maintenance schedule when recommending how soon
to return for the next oil change."
Enforcement by BAR. Currently, the BAR regulates the automotive
repair industry and enforces the Act. The primary purposes of
the Act are to protect consumers from unethical and illegal
behavior by the automotive repair industry and improve consumer
confidence in the California auto repair industry.
The Act mandates a statewide automotive repair consumer
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protection program, including the requirement that ARDs be
registered and regulated by BAR. The Act also gives the BAR the
authority to license and regulate official stations and
mechanics in the areas of lamp, brake, and smog device
inspection and repair.
The Act protects consumers by requiring all ARD's, including
lamp, brake, and smog stations to: (1) post a sign with
information for consumers; (2) provide written estimates that
detail the parts and labor to be provided; (3) obtain
authorization from their customers prior to commencing any
repair services; and (4) provide customers with itemized
invoices that detail the parts provided and the labor performed.
The Act further requires the 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.
However, existing law exempts those performing minor services,
which at the time of the enactment of the Act, were services
typically performed at gas stations, such as oil changes,
replacing light bulbs, and changing air filters. The rationale
for excluding these services was that they were simple services
that carried a lower risk of serious consumer harm.
As a result, individuals who only perform oil changes are not
currently regulated by the BAR. While the BAR can send cease
and desist letters to individuals suspected of performing
automotive repairs, without an ARD registration, the BAR is
unable to refer cases to the Office of the Attorney General or
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the district attorney and take any administrative disciplinary
action since no registration requirements exist for those who
provide oil change services.
To allow the BAR to enforce the oil changing requirements under
this bill, this bill creates a new category of registrants
called AMPs. According to the Author, the purpose of generating
a new type of registration is to avoid overburdening those who
do not perform major repairs (maintenance only). Specifically,
creating a new category creates a clear delineation of the scope
of the work an ARD or AMP may perform and the requirements. The
delineation may relieve unforeseen issues with liability,
insurance, and other regulatory compliance and risk management
concerns.
Also, it is important to note, that the creation of the new AMP
registration has been wholly vetted and discussed by all
stakeholders, including industry representatives, the
Administration, and both houses' Business and Professions
Committees.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
According to the Assembly Appropriations Committee analysis
dated August 3, 2016, BAR will incur costs to fund 15 two-year
limited-term positions to promulgate regulations and for
inspection-related activities, as well as ongoing costs to
process AMP registration applications, and costs for the Office
of Administrative Hearings. The analysis does note that the
costs will be offset by additional fee revenue stemming from
approximately 2,500 new AMP registrants.
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SUPPORT: (Verified10/11/16)
Californians Against Waste (source)
Automotive Oil Change Association
Biosynthetic Technologies
California League of Conservation Voters
California Product Stewardship Council
CALPIRG
CarMax Auto Superstores
Clean Water Action
Consumer Federation of California
Consumers for Auto Reliability and Safety
Honda
Management Task Force
Natural Resources Defense Council
Northern California Recycling Association
Oil Changers, Inc.
Sierra Club California
StopWaste
LA County Solid Waste Management Committee/Integrated Waste
Management Task Force
The Solid Waste Association of North America
Tri-CED Community Recycling
Wildcoast Costasalvaje
OPPOSITION: (Verified10/11/16)
None received
ARGUMENTS IN SUPPORT: Californians Against Waste (sponsor) and
others similarly write in support, "Used motor oil, which is
insoluble and contains heavy metals and toxic chemicals, if
improperly disposed can enter our oceans and fresh waters via
the storm water systems, endangering humans, fish and wildlife.
In addition, one gallon of used motor oil can foul the taste of
1 million gallons of water. This hazardous waste is also often
burned as fuel, creating dangerous air pollution. While
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California has a motor oil collection and recycling program,
source reduction makes the best environmental and economic
sense.
It is particularly important that the bill apply equally to
currently unlicensed facilities that perform oil changes, and
require them to properly register with the [BAR], become
licensed, and comply with all applicable laws. Given the stakes
involved, ensuring compliance with environmental and consumer
protections is important enough to warrant uniform enforcement
of the law."
GOVERNOR'S VETO MESSAGE:
I am returning Senate Bill 778 without my signature.
This bill creates a new registration category for oil
change stations under the Bureau of Automotive Repair.
I believe that, before a new registration program is
enacted, a more comprehensive review is needed. AB 873,
which I signed, provides just that process.
ASSEMBLY FLOOR: 66-10, 8/22/16
AYES: Alejo, Arambula, Atkins, Baker, Bloom, Bonilla, Bonta,
Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu,
Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier,
Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez,
Gonzalez, Gordon, Gray, Roger Hernández, Holden, Irwin, Jones,
Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,
Maienschein, Mathis, McCarty, Medina, Mullin, Nazarian,
O'Donnell, Olsen, Quirk, Ridley-Thomas, Rodriguez, Salas,
Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner,
Waldron, Weber, Wilk, Williams, Wood, Rendon
NOES: Achadjian, Travis Allen, Bigelow, Brough, Beth Gaines,
Gallagher, Grove, Harper, Obernolte, Patterson
NO VOTE RECORDED: Dahle, Hadley, Mayes, Melendez
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Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104
10/17/16 14:50:06
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