BILL ANALYSIS �
AB 1665
Page 1
GOVERNOR'S VETO
AB 1665 (Jones)
As Amended June 26, 2014
2/3 vote
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|ASSEMBLY: |77-1 |(May 28, 2014) |SENATE: |36-0 |(August 18, |
| | | | | |2014) |
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ASSEMBLY: 75-2 (August 20,
2014)
Original Committee Reference: B., P. & C.P.
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 that repair
tires or change tires, 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.
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4)Requires, if a vehicle is manufactured with TPMS, an ARD that
repairs tires or changes tires to be capable of diagnosing and
servicing the TPMS in accordance with industry standards.
5)Makes other technical and conforming changes.
FISCAL EFFECT : According to the Senate Appropriations
Committee:
1)Annual license revenue gains of approximately $560,000
(Vehicle Inspection and Repair Fund), assuming an estimated
2,800 tire shops would be licensed as automotive repair
dealers under BAR's regulatory jurisdiction.
2)According to BAR, any additional costs to process new
applications, investigate more complaints, and conduct
enforcement activities would be covered by new license fee
revenues.
3)BAR indicates that one-time workload related to processing
applications would be accomplished through short-term
redirection of existing staff.
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.
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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
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
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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 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
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effectively grant BAR disciplinary authority over such cases.
The TREAD 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.
GOVERNOR'S VETO MESSAGE :
Earlier this year, the legislature conducted an
oversight hearing that highlighted the need for the
Bureau of Automotive Repair to update its regulations
to better reflect changes in automotive technology
that have occurred in recent decades. As a result,
the legislature passed this bill to require businesses
that change or repair tires for compensation to
register as automotive repair dealers.
Before a new licensing scheme is enacted, a more
comprehensive review is needed.
I am directing the Bureau to work with interested
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parties to determine which, if any, automotive repair
services merit further regulation.
Analysis Prepared by : Eunie Linden / B., P. & C.P. / (916)
319-3301
FN: 0005711