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July 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 Governor has signed the new $297.9 billion state budget for the fiscal year. The budget addresses a $46.8 billion shortfall through measures such as reducing state spending, utilizing reserves and suspending certain tax breaks for businesses. The legislature will adjourned, Wednesday, July 3, for a one-month summer recess and will reconvene on Aug. 5. 

The State Legislature began the year with many bills to consider, and as the session moves forward, the California Autobody Association (CAA) is monitoring the bills. Here’s the 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: Governor’s desk.

• AB 2288 — Private Civil Actions — Support. This bill, along with SB 92, contains the legislative language to reform California’s broken 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 broken 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 four 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. Support. 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 Privacy and Consumer Protection 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 Privacy and Consumer Protection 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.

Bureau of Automotive Repair (BAR) Regulations

• BAR Meeting. The BAR Advisory Group meeting is being held in Sacramento on July 18. The agenda should be available on July 8. CAA plans on attending the meeting and providing a report afterward.

• BAR Citation & Fine Program — Appeals. The BAR has increased the number of citations and fines issued to California automotive repair dealers (ARD). BAR has started conducting appeal conferences, where automotive dealers can remotely, contest, their citations before a three-member panel. This panel includes a public member, an industry representative and BAR representative. The first conference was held on June 27, and BAR plans to hold these appeal conferences regularly. If the citation is upheld, the ARD can opt to attend an 8-hour remedial training course. Successful completion of this course removes the citation from the BAR website, ensuring it is not visible to consumers and competitors.

• Storage Fee Regulations. The BAR continues to work on revising new storage regulations which would place limitations (caps) on what all automotive repair shops can charge for vehicle storage and impose new administrative requirements on automotive repair shops. BAR is planning a another workshop on the issue and mostly like will be held on July 18, after the BAR Advisory Group Committee meeting. CAA will continue to monitor and report.

• Tear Down and Insurance Disclosure Requirements. BAR is also 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. CAA continues to monitor this regulation and will provide updates accordingly.

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