BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1242
                                                                  Page  1

          Date of Hearing:   July 2, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                 SB 1242 (Lieu) - As Introduced:  February 20, 2014 

          Policy Committee:                             Business and  
          Professions  Vote:                            13 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill deletes obsolete legislative review procedures and  
          instead subjects the powers and duties of the Bureau of  
          Automotive Repair (BAR) to a sunset review-like process by the  
          Legislature as if BAR's provisions were scheduled to be repealed  
          on January 1, 2019.  The bill also deletes outdated provisions  
          of the Automotive Repair Act.

           FISCAL EFFECT  

          1)No new costs. On-going Special Fund costs of approximately  
            $195 million annually (Vehicle Inspection and Repair Fund,  
            High Polluter Repair or Removal Account, Enhanced Fleet  
            Modernization Subaccount) supporting 592.4 PY. This fund is  
            fully self-supporting with fee revenue.  

          2)Costs to the Department of Consumer Affairs of updating the  
            Automotive Repair Act are minor and absorbable within existing  
            resources.  

           COMMENTS  

           1)Purpose  . In March 2014, the Senate Business Professions and  
            Economic Development Committee and the Assembly Business,  
            Professions and Consumer Protection Committee conducted joint  
            oversight hearings to review nine regulatory entities. 

            This bill and five other sunset review bills are intended to  
            implement the recommended legislative changes as a result of  
            review by the Committees.  While this bill does not add a  
            sunset date to the BAR, it updates its review procedures to  








                                                                  SB 1242
                                                                  Page  2

            reflect the current legislative review and oversight process.

           2)Background  .  BAR is responsible for regulating the automotive  
            repair marketplace and for administering the smog check  
            program.  BAR also administers the Consumer Assistance Program  
            (CAP), which provides for repair assistance and vehicle  
            retirement payments to eligible vehicle owners if their  
            vehicle fails a smog check.  In cooperation with the Air  
            Resources Board, BAR also participates in the administration  
            of the Enhanced Fleet Modernization Program (EFMP), which  
            provides voucher payments to owners of high-polluting vehicles  
            in exchange for the retirement or replacement of those  
            vehicles, as specified. 

            BAR licenses and regulates more than 36,000 Automotive Repair  
            Dealers, 4,900 Smog Check Test and Repair Stations, 2,300 Smog  
            Check Test Only Stations, 35 Smog Check Repair Only Stations,  
            4,000 STAR Certified Stations, and 2,100 Brake and Lamp  
            Stations.  Individually, BAR licenses approximately 6,500 Smog  
            Check Inspectors, 5,600 Smog Check Repair Technicians, and  
            3,200 Brake and Lamp Adjusters.

           3)Related Legislation  . This bill is one of six bills introduced  
            this session to extend the sunset on licensing boards within  
            the Department of Consumer Affairs - including SB 1244 (Lieu),  
            and SB 1245 (Lieu), which are before this committee today and  
            SB 1243 (Lieu), SB 1246 (Lieu), and SB 1247 (Lieu) which are  
            pending a hearing in this committee.


           Analysis Prepared by  :    Jennifer Swenson / APPR. / (916)  
          319-2081