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August legislative update: California bills that can impact auto repair

CAA continues to review, monitor and report on bills as they make their way through the legislative process — here’s the latest on where they stand

Sacramento, Calif.—The legislature has returned to Sacramento from summer recess. Lawmakers have about 1,300 bills remaining, with a deadline of August 31 to send them to the Governor. As the session moves forward, the California Autobody Association (CAA) is monitoring the bills. The following is CAA’s breakdown of where bills presently stand.

Legislation

Electric Vehicle Batteries  

• SB 615 –Electric Vehicle Batteries – Concerns, amendments requested. This bill, among other things, requires that automotive repair dealers who remove electric battery from a vehicle for repair, remanufacturing, or recycling must ensure that the battery is disposed of properly, adhering to the end-of-life requirements specified in the legislation. Status: Assembly Appropriations Committee.

Employment       

• AB 518 – Paid Family Leave – Concerns. Expands the definition of “family member” for purposes of the Paid Family Leave Program to allow workers to take time off to care for a seriously ill designated person. Status: Senate Inactive File.

• AB 1870 – Workers’ Compensation Notice – Watch. This bill would require the existing posted workers’ compensation notice to include information concerning an injured employee ability to consult a licensed attorney to advise them of their rights under workers’ compensation laws. Status: Signed by Governor.

• AB 2288 – Private Civil Actions – Support. This bill, along with SB 92, contains the legislative language to reform California’s Attorney General’s Act (PAGA). These bills address major problems in the law while protecting workers and limiting shakedown lawsuits that hurt employers. Status: Signed by Governor.

• AB 2751 – Employer Communications During Nonworking hours – Concerns. This bill requires employers to establish a workplace policy that provides employees the right to disconnect from communications from employer during nonworking hours. Status: Assembly Appropriations Committee – Held in Committee.

• SB 92 – Private Civil Actions – Support. This bill, along with AB 2288, contains the legislative language to reform California’s Attorney General’s Act (PAGA). These bills address major problems in the law while protecting workers and limiting shakedown lawsuits that hurt employers. Status: Signed by Governor.

• SB 1116 – Unemployment Insurance: eligibility of benefits – Concerns – This bill will provide unemployment benefits to workers that go on strike which increases unemployment insurance taxes to all employers: Status: Senate Insurance Committee – Failed passage.

Vehicle Emissions     

• SB 301 – Zero-Emission Aftermarket – Watch. Requires CARB to establish the Zero Emissions Aftermarket project to provide an applicant with a rebate up to $4,000 for a vehicle that has been converted to a zero-emission vehicle. Status: Vetoed by Governor. 

• AB 2418 – Vehicular Air Pollution: Heavy Duty Trucks – Watch. This bill would exempt a 2024 and subsequent model heavy duty truck that meets federal emission standards from state regulations governing exhaust emissions. Status: Assembly Transportation Committee.

Career Tech Funding

• AB 377- Career Tech Education- Support. Increases Career Technical Education funding from $300 million each year to $450 million. Status: Senate Appropriations Committee. – Held in Committee. 

• AB 2273 – Career Technical Education – Watch. This bill establishes the California pilot paid internship program to help pupils for higher skill jobs of the future and appropriates $12 million dollars to the Department of Education to allocate grant funds to school districts for the internship programs. Status: Assembly Appropriations Committee – Held in Committee.

• AB 1927 – Career Technical Education Instructors – Watch. This bill would expand the Golden State Teacher Grant Program to also award grants to students who commit to work for 4 years as a credentialed career technical education instructor. Status: Assembly Appropriations Committee – Held in Committee.

Catalytic Converters

• AB 2188 – Vehicles – Support. This bill creates an exemption allowing owners of newer vehicles, no older than five years, to replace a stolen catalytic converter with a similar federal EPA compliant model, rather than a California ARB compliant converter. Status: Assembly Transportation Committee.

• AB 2536 – Vehicles; local registration fees. Watch. This bill would define vehicle theft crimes to include the theft of vehicle parts or components such as catalytic converters. By expanding theft crimes to include converters, counties will be able to access funding and allocate resources to address theft of converters. Status: Signed by the Governor. 

Other Bills of Interest 

• AB 1901 – Vehicles: Total Loss Claim: Salvage Certificate. Watch. This bill would, if an insurance company requests a salvage pool to take possession of a vehicle that is subject of a total loss claim, and insurance company does not take possession of the vehicle, authorize the insurance company to direct the salvage pool to release the vehicle to the registered and legal owner. Status: Senate Appropriations Committee. 

• AB 2386 – Tobacco: Vehicle Sale Disclosures. Watch. This bill requires preowned vehicle retailers to provide customers with a specified tobacco residue disclosure at the point of sale and prior to transfer of ownership. Status: Assembly Health Committee.

• SB 359 – Automobile Dismantling. Watch. This bill extends the operation of DMV and other agencies to review and coordinate enforcement and compliance activity related to unlicensed and unregulated automobile dismantling. Status: Senate Appropriations Committee.

• SB 903 – Environmental Health: Product Safety. Concerns. Prohibits a person from distributing, selling or offering for sale in the state a product that contains Polyfluoroalkyl substance, unless currently unavoidable. These substances are used in many products, including automotive products such as gaskets, shock absorbers and bushings. Status: Senate Appropriations Committee – Held in Committee.

• SB 961 – Vehicles Safety Equipment. Concerns. This bill requires 50% of certain vehicles, commencing with 2030 model year to be equipped with an intelligent speed limiter that would alert the driver the speed of the vehicle to 10 miles per hour over the speed limit. Status: Assembly Appropriations Committee.

• SB 1313 – Vehicle Equipment: Driver Monitoring Defeat Systems. Watch. This bill would prohibit vehicles from being equipped with a device that is designed for, or is capable of, neutralizing, disabling, or otherwise interfering with a direct driver monitoring system, Status: Assembly Appropriations Committee.

• SB 1526 – Consumer Affairs. Watch. This bill, among other things, revises BAR applications and renewal forms to include applicable BAR accepted educational certifications. Status: Assembly Appropriations Committee.

Regulations Update

Bureau of Automotive Repair Regulations  

• BAR Citation & Fine Program. The BAR has increased the number of citations and fines issued to California automotive repair dealers. BAR has started conducting appeal conferences, where automotive dealers can remotely, contest, their citations before a three-member panel. The next appeal conference is scheduled for August 8, 2024. This panel includes a public member, an industry representative and BAR representative. Successful completion of this course removes the citation from the BAR website, ensuring it is not visible to consumers and competitors.

• BAR Vehicle Safety Systems Inspection Program (VSSI) Update. The VSSI program is being implemented in a three-phase approach. The Licensing of the VSSI stations and Technicians (Phase 1) started March 27, 2024. The VSSI inspections (Phase 2) started July 8, 2024. The current Brake and Lamp Inspection Program will end (Phase 3) on September 27, 2024. At that time, the DMV will no longer accept brake and lamp certificates of compliance for registration purposes and BAR will collect and refund all unused brake and lamp certificates. Implementation information on the VSSI program is on the BAR website, including steps to obtain a VSSI station and/or technician license. See the link for presentation.  

• Storage Fee Regulations. The BAR is proposing regulations that will make major changes to how shops can charge for vehicle storage fees. The regulations require shops that perform repairs resulting from accidents or theft recoveries to report their daily storage rate to BAR annually. Shops must determine the daily storage rate based upon specified factors and the reported rate must remain unchanged (locked in) for one year. Shops must also post and display current daily storage rates visibly to customers and notify them in writing, when charges will accrue. Many concerns have been raised, including how storage fees are calculated, the possibility that shops charging rates regulated by the BAR. BAR will be reviewing concerns.

• Tear Down and Insurance Disclosure Requirements. BAR is working on regulations that will revise current tear down (disassembly) disclosure requirements and require all auto repair shops accepting payments for repairs from insurers to include the expected payment amount from the insurer on the estimate.

California Energy Commission (CEC) – Replacement Tire Regulations

The California Energy Commission (CEC) proposed regulations that would mandate tire retailers including automotive repair dealers, to display signs, provide tire disclosures to consumers and include them on all advertising. We worked with CEC to pursue exemptions for tire sellers who engage in occasional sales as well as to provide clarification for requirements relating to signs, disclosures and advertising.  We provided suggested amendments and met with CEC to express concerns. We continue checking to see if they will move forward, but CEC has not provided any updates.

Department of Toxics and Substances Control (DTSC) 

CAA continues to monitor and raise concerns with the DTSC regarding regulations and requirements that could increase facility and generator fees. Such increases would subsequently raise hazardous waste disposal fees for auto body shops and other automotive repair shops. Additionally, over the last few years, many businesses, including automotive repair dealers, have become subjects of hazardous waste enforcement suits. This occurred after the DTSC, in conjunction with local enforcement agencies conducted “dumpster dive” inspections to determine the exact nature of waste is being disposed of by these businesses.

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