BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: SB 211
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  Emmerson 
                                                         VERSION: 3/14/11
          Analysis by:  Michelle Leinfelder                       
          FISCAL:yes
          Hearing date:  March 29, 2011



          SUBJECT:

          Enforcement of tire inflation regulation

          DESCRIPTION:

          This bill modifies the penalties on Automotive Service Providers 
          for violations of the Under Inflated Vehicle Tires regulation.

          ANALYSIS:

          AB 32 (Nunez, Pavley), Chapter 488, Statutes of 2006, charged 
          the State Air Resources Board (ARB) with monitoring and 
          regulating sources of greenhouse gas (GHG) emissions in order to 
          reduce GHG to 1990 levels by the year 2020.  The transportation 
          sector produces 38 percent of human-induced GHG in California, 
          and passenger vehicles account for 74 percent of the 
          transportation emissions.

          In order to address GHG emissions in the near-term, ARB 
          identified nine early-action measures, one of which was the 
          Under Inflated Vehicle Tires regulation that it developed.  
          Under-inflated tires contribute to GHG emissions by increasing 
          tire rolling resistance, and therefore, reducing fuel 
          efficiency.

          On August 30, 2010, the Office of Administrative Law adopted the 
          Under Inflated Vehicle Tires regulation (Section 95550 of Title 
          17 of the California Code of Regulations), which became 
          effective on September 1, 2010.  The regulation defines an 
          Automotive Service Provider (ASP) and requires ASPs to check and 
          inflate the tires of each passenger car brought in for service 
          to within two (2) pounds per square inch (psi) of the 
          recommended tire pressure rating.  The ASP is required to 
          indicate tire inflation service on a vehicle service invoice and 
          keep these invoices for a minimum of three years. 





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          A customer may decline tire inflation service if the customer 
          can "affirm" that he or she performed a tire pressure check and 
          inflation service within the last 30 days or that he or she will 
          perform a tire pressure check and inflation service within the 
          next seven days.  In the event that a customer declines service, 
          the ASP is required to indicate why tire inflation service was 
          not performed on the vehicle service invoice. 

          The Under Inflated Vehicle Tires regulation also states that 
          penalties may be assessed on an ASP, according to existing 
          statutory penalty provisions for air pollution emissions, if the 
          regulation is not followed.  For vehicular air pollution, 
          existing statutory provisions impose civil or administrative 
          penalties on "motor vehicle fuel distributors" of $1000 per day 
          to upwards of $250,000 per day, depending on the offense.  ARB 
          cites the same penalty code for any vehicle air pollution 
          regulation.

          ARB staff indicate, however, that ARB has yet to develop an 
          enforcement plan for the Under Inflated Vehicle Tires 
          regulation, but any potential enforcement will not take place 
          until after January 1, 2012.  This allows time for education and 
          outreach to ASPs on the requirements of the regulation.  ARB 
          staff further indicate that the aforementioned penalties are 
          maximum penalties, and air pollution penalties are determined 
          considering a number of factors, including but not limited to: 
          the extent of harm caused by the violation, nature and 
          persistence of the violation, length of time and frequency of 
          the violation, the financial burden on the violator, and actions 
          taken to mitigate the violation. 

          ARB staff assert that penalties will be assessed on ASPs, not 
          vehicle drivers or owners, and that ASPs that occasionally fail 
          to offer check and inflate service or properly mark an invoice 
          would not be cited unless other known violations have occurred.

           This bill:  

          1)Adds to statute that tire pressure gauges may be accurate to 
          within 2 psi.

          2)Amends the penalty that an ASP could incur for a violation of 
          the Under Inflated Vehicle             Tires regulation to be a 
          civil penalty of not more than twenty dollars ($20) for the 
          first violation and not more than fifty dollars ($50) for each 
          subsequent violation.




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          3)States that customers of ASPs would not be subject to civil or 
          criminal penalties for                 violations of the Under 
          Inflated Vehicle Tires regulation. 
          
          COMMENTS:

          1)  Purpose  .  The author states that the penalties for the Under 
          Inflated Vehicle Tires regulation      far outweigh the offense. 
           This bill will amend the law governing the Under Inflated 
          Vehicle Tires regulation such that "misinflating" tires would be 
          non-criminal, minor infractions.  This bill will also codify the 
          accuracy specifications for tire pressure gauges used by ASPs.  
          By   codifying the accuracy specifications, the industry will be 
          given comfort that the                 specifications cannot be 
          altered at some future date without prior legislative approval.

          2)  This bill establishes enforcement  .  The Under Inflated Vehicle 
          Tires regulation references            penalties for AB 32 
          violations.  Those penalties assess civil or administrative 
          penalties for  vehicular air pollution emissions violations that 
          range from $1000 per day to $250,000 per day.  ARB does not have 
          a penalty and enforcement strategy specifically for the Under 
          Inflated Vehicle Tires regulation.  This bill establishes a 
          penalty structure for this regulation. ARB staff asserts that 
          fines of $1000 per day, as referenced in the regulation, would 
          be excessive for violations of the regulation.  Some may, 
          however, claim that $20 for the first  offense and $50 for 
          subsequent offenses, as prescribed in the bill, are too small.  
          Some may   also question whether this bill would set a precedent 
          for legislation to dictate penalty     structures for other 
          agencies in the future. 

          3)  Customers not subject to penalties .  While the Under Inflated 
          Vehicle Tires regulation does          not subject customers of 
          an ASP to penalties for under-inflated tires, the regulation 
          does say that customers must "affirm" to having had their tire 
          pressure checked within the last 30 days     or to performing a 
          tire pressure check in the next seven days.  There is nothing 
          further in the                         regulation to clarify 
          what an affirmation entails or if a false affirmation could be 
          subject to penalty.  This bill addresses this vagueness in the 
          regulation by putting into statute that a    customer of an ASP 
          would not subject to civil or criminal penalties for a violation 
          of the     regulation. 





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          4)  Regulation implemented before education has taken place .  ARB 
          implemented the Under                  Inflated Vehicle Tires 
          regulation on September 1, 2010; however, ARB staff asserts that 
            potential enforcement of the regulation will not take place 
          until after January 1, 2012.  Until    that time, ARB staff is 
          working with the Bureau of Automotive Repair and other local and 
            state agencies that work with ASPs on education and outreach.  
          It, therefore, seems                   premature to implement a 
          regulation before a penalty and enforcement plan is in place.  
          It would also be premature to implement enforcement before 
          education and outreach has taken       place.  Had education and 
          outreach on a penalty structure and enforcement plan taken place 
            before this regulation was implemented, then this bill would 
          not be necessary.

          5)  Double-referral  .  The Rules Committee referred this bill both 
          to the Transportation and              Housing Committee and to 
          the Environmental Quality Committee.  Therefore, if this bill 
          passes this committee, it will be referred to the Committee on 
          Environmental Quality.
          
          POSITIONS:  (Communicated to the Committee before noon on 
          Wednesday,                                             March 23, 
          2011)

               SUPPORT:  Les Schwab Tire Centers
                         California New Car Dealers Association
                         Rubber Manufacturers Association
                         California Tire Dealers Association
                         California Autobody Association
                         Automotive Service Councils of California
          
               OPPOSED:  None received.