BILL ANALYSIS �
AB 1665
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ASSEMBLY THIRD READING
AB 1665 (Jones)
As Amended May 23, 2014
Majority vote
BUSINESS & PROFESSIONS 14-0 APPROPRIATIONS 16-0
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|Ayes:|Bonilla, Jones, |Ayes:|Gatto, Bigelow, |
| |Bocanegra, Campos, | |Bocanegra, Bradford, Ian |
| |Dickinson, Eggman, | |Calderon, Campos, Eggman, |
| |Gordon, Hagman, Holden, | |Gomez, Holden, Jones, |
| |Maienschein, Mullin, | |Linder, Pan, Quirk, |
| |Skinner, Ting, Wilk | |Ridley-Thomas, Wagner, |
| | | |Weber |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Authorizes the Bureau of Automotive Repair (BAR) to
regulate businesses that change and repair tires as an
automotive repair dealer (ARD), and requires ARDs and tire
dealers, if a vehicle is manufactured with a tire pressure
monitoring system (TPMS), to be capable of diagnosing and
servicing the TPMS. Specifically, this bill :
1)Deletes tire changing and tire repair from the list of
services that are excluded from the definitions of the "repair
of motor vehicles" and "automotive technician" and that are
exempt from BAR regulation, thereby making tire changing and
tire repair subject to BAR's authority.
2)Exempts tire services provided by or on behalf of a motor
vehicle club or a tow truck operator possessing a valid motor
carrier permit, as specified, from the definitions of the
"repair of motor vehicles" and the duties of an "automotive
technician."
3)Defines TPMS as the automotive safety device that warns the
driver by using a lighted icon on the onboard diagnostic (OBD)
system that one or more of the tires are underinflated.
4)Requires, if a vehicle is manufactured with TPMS, an ARD to be
capable of diagnosing and servicing the TPMS in accordance
with industry standards.
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5)Makes other technical and conforming changes.
FISCAL EFFECT : According to the Assembly Appropriations
Committee,"[r]egistering and overseeing 2,800 new tire
facilities (an 8% workload increase for BAR) as ARDs could
result in on-going costs in the range of a several hundred
thousand dollars. Those costs should be fully offset by
increased licensing revenue (Vehicle Inspection and Repair
Fund)."
COMMENTS :
1)Purpose of this bill. This bill would require BAR to regulate
and license as ARDs businesses that change and repair tires,
except as specified, and would require ARDs and tire dealers
to activate and calibrate TPMS when necessary, in accordance
with BAR's previous announcement that businesses that diagnose
TPMS be registered with BAR. The author contends that this
bill would increase consumer protection by requiring
individuals that service vehicles with TPMS to be capable of
activating and calibrating the TPMS system, and also ensuring
that tire shops are under BAR's jurisdiction, so that BAR
could investigate complaints and take enforcement action
against these businesses if necessary. This bill is sponsored
by Les Schwab Tire Centers and the California Tire Dealers
Association.
2)Author's statement. According to the author, "On November 1,
2000, Congress enacted the TREAD Act (Transportation Recall
Enhancement Accountability Documentation) as a direct
consequence of its hearings on the safety and fatalities
related to the Firestone tire situation at the time. It
directed National Highway and Traffic Safety Administration
(NHSTA) to adopt regulations to update the Federal motor
vehicle safety standards and to require a system in new motor
vehicles that warns the operator when a tire is significantly
under inflated. The warning telltale appears on the dashboard
screen as a red cross-section of a tire.
"According to the November 22, 2011, (NHTSA) letter of
explanation to the Tire Industry Association: 'In the case of
a vehicle equipped with a functioning TPMS system, a service
provider would violate the "making inoperative" prohibition
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under Section 30122(b) of Title 49 of the United States Code
by installing new tires and wheels that do not have a
functioning TPMS system. To avoid a "make inoperative"
violation, the service provider would need to decline to
install the new tires and rims, use the TPMS sensors from the
original wheels (if they are compatible), or convince the
motorist to purchase new TPMS sensors and ensure the sensors
are properly integrated with the vehicle's TPMS system.'"
"[This bill] is necessary because it will improve automotive
safety through properly inflated tires, and will improve fuel
economy with an estimated annual savings in the hundreds of
millions of gallons of gas in California alone. Finally, this
is an environmentally friendly bill that will in turn provide
better air quality for all Californians. This is also a
federal compliance issue."
3)TPMS. Because TPMS is a vehicle safety device and its proper
functioning is essential to the safe operation of a vehicle,
and also because the repair and diagnosis of TPMS often
requires specialized equipment and adherence to specific
diagnostic procedures, BAR has determined, under its existing
authority to distinguish minor services that are exempt from
major services that require registration, that businesses that
work with TPMS need to be registered as an ARD. In a March
2013 Chief's Message, former BAR Chief John Wallauch stated,
"Tire stores that diagnosis TPMS sensors must be registered
with [BAR]. Businesses benefit from this registration because
it establishes a level-playing field where all tire stores
that serve these warning devices are registered. Consumers
will benefit because they will receive a written estimate and
be protected by all other provisions in the [Automotive Repair
Act]."
This bill would implement BAR's position by making clear that
tire change and repair services are no longer exempt from BAR
oversight. It would also require ARDs that service vehicles
with TPMS be capable of repairing and diagnosing TPMS in
accordance with industry protocols.
4)Proposed oversight by BAR. Last year, SB 202 (Galgiani) of
2013 sought to include tire repair and changing in the list of
services performed by an ARD. Although this bill is distinct
from SB 202 in that it would define TPMS and require ARDs that
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work on vehicles with TPMS to be capable of diagnosing and
servicing the TPMS, this bill would also include tire repair
and changing in the list of services performed by an ARD and
automotive technician. As a result, tire repair and changing
services generally would be licensed and regulated under BAR.
The annual fee for an ARD license is $200.
According to supporters of the bill, consumers have encountered
situations where they are quoted one price for replacing
tires, but are charged an additional amount after the tires
have been installed. Consumers may file a civil action in a
small claims court, or ask public prosecutors to take legal
action for a false advertisement claim, but many consumers are
unlikely to take those actions. This bill would effectively
grant BAR disciplinary authority over such cases.
The Act requires all ARDs to provide customers with a written
estimate prior to commencement of work, record all work done
on an invoice and describe all service work done and parts
supplied, and seek customer approval for additional work or
costs, as specified. The author contends that this bill would
increase consumer protection by subjecting individuals
offering tire changing and repair services to the same
requirements. In addition, BAR would have the authority to
investigate complaints related to tire services and take
disciplinary action by issuing a citation, suspension or
revocation of an ARD license, potentially shutting down a
bad-actor licensee.
According to BAR, it receives very few consumer complaints
relating to unlicensed tire shops. However, because
individuals providing tire changing and repair services are
currently not regulated by BAR, it is not clear how many
problems simply went unreported, or how many more complaints
BAR would receive if these individuals were under BAR's
jurisdiction.
Analysis Prepared by : Eunie Linden / B., P. & C.P. / (916)
319-3301
FN: 0003762
AB 1665
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