BILL ANALYSIS                                                                                                                                                                                                    Ó

          |SENATE RULES COMMITTEE            |                        SB 778|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |


          Bill No:  SB 778
          Author:   Allen (D) 
          Amended:  8/19/16  
          Vote:     21 

           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 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,  

           SENATE BUS., PROF. & ECON. DEV. COMMITTEE:  7-2, 8/25/16  
            (Pursuant to Senate Rule 29.10)
           AYES:  Hill, Block, Galgiani, Hernandez, Jackson, Mendoza,  
           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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                                                                    Page  2

            Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza,  
            Mitchell, Monning, Nielsen, Pan, Pavley, Roth, Wieckowski,  
           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  

          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.


          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) §§  

          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 §  

          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  

          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  

          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  

          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,  

              a)    Repair specific terms, such as "install" or  

              b)    The requirement for compliance with Penal Code § 551  
                relating to referrals and agreements with insurance  


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              c)    Requirements relating to repair-specific estimates and  
                repair-specific activities; and

              d)    The prohibition against liens without a valid  

          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. 



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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  

          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  

          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
          CarMax Auto Superstores 
          Clean Water Action
          Consumer Federation of California
          Consumers for Auto Reliability and Safety
          Management Task Force
          Natural Resources Defense Council
          Northern California Recycling Association
          Oil Changers, Inc.
          Sierra Club California
          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  

          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."


               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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