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Thread: California TPMS bill passes

  1. #1
    TPMSProAlbert
    Guest

    California TPMS bill passes

    SACRAMENTO, Calif.—The California Legislature has passed legislation that its proponents claim will improve automotive safety, protect consumers from “unscrupulous” tire dealers and increase fuel economy.

    Approved with overwhelming bipartisan support, Assembly Bill 1665 is headed to the governor's desk for his signature.

    Enforced by the Bureau of Automotive Repair (BAR), AB 1665 requires all tire dealers to be capable of diagnosing and servicing tire pressure monitoring systems (TPMS), strengthens state oversight of tire dealer and repair shops and provides new recourse for consumers who've been wronged, according to a statement issued by the bill's sponsors, Assemblyman Brian Jones, R-Santee, and Senator Ted Lieu, D-Redondo Beach.

    “This is the most important automotive safety legislation since California's hands-free while driving law took effect,” Mr. Jones said. “TPMS devices are one of the most significant improvements to ensure proper air pressure, which allows our tires to last longer and improves mileage.

    “With passage of this legislation, consumers will also have better assurance that tire dealers are properly trained and certified to service these important warning devices.”

    Mr. Lieu added: “The bottom line is properly inflated tires are safer, last longer and give us better fuel economy and cleaner air. For California, these systems are already saving millions of gallons [of fuel] each year. These fuel savings will only increase as more TPMS vehicles enter our state's car pool.”

    Les Schwab Tire Centers and the California Tire Dealers Association were co-sponsors of A.B. 1665, the CTDA said, because the bill is expected to “level the playing field” for all tire retailers, including those currently operating as “tire sales only” shops that are able to avoid BAR regulation.

    “While most of those operations are legitimate,” the CTDA said, “there are many that advertise below-wholesale cost for new tires in direct competition with CTDA members. When a customer finds that unspoken 'add-ons'—such as mounting, tire inflation, etc.—brings the charges to much higher than the advertised price, there is nowhere to turn other than a local district attorney or Small Claims Court.”

    Under AB 1665, the BAR will inspect all tire shops annually, the CTDA said, and customers will be able to call one number—prominently displayed in the shop—to report unfair charges or other complaints against the business. The annual fee for an automotive repair dealer (ARD) license is $200.

  2. #2
    TPMSProAlbert
    Guest
    BILL ANALYSIS Ó



    AB 1665
    Page 1

    Date of Hearing: April 22, 2014

    ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
    PROTECTION
    Susan A. Bonilla, Chair
    AB 1665 (Jones) - As Amended: March 20, 2014

    SUBJECT : Automotive repair.

    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 activating and
    calibrating 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 rotating tires, adjusting tire pressure, and providing
    tire services 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 and
    tire dealer to check the OBD system to ensure that the TPMS is
    operative and be capable of activating and calibrating the
    TPMS when necessary in accordance with industry protocol.

    5)Makes other technical and conforming changes.

    EXISTING LAW

    1)Provides for the licensing and regulation of ARDs by BAR,
    which is under the Department of Consumer Affairs, pursuant to
    the Automotive Repair Act (Act). (Business and Professions
    Code (BPC) Section 9880 et seq.)

  3. #3
    TPMSProAlbert
    Guest
    AB 1665
    Page 2


    2)Defines "repair of motor vehicles" to mean all maintenance of
    and repairs to motor vehicles performed by an ARD, including
    automotive body repair work, but excluding those repairs made
    pursuant to a commercial business agreement and also excluding
    repairing tires, changing tires, lubricating vehicles,
    installing light bulbs, batteries, windshield wiper blades and
    other minor accessories, cleaning, adjusting, and replacing
    spark plugs, replacing fan belts, oil, and air filters, and
    other minor services which the director of BAR, by regulation,
    determines are customarily performed by a gasoline service
    station. (BPC 9880.1(e))

    a) Prohibit services from being designated as minor
    services that may be exempt if the Director of BAR finds
    that performance of the service requires mechanical
    expertise, has given rise to a high incidence of fraud or
    deceptive practices, or involves a part of the vehicle
    essential to its safe operation. (BPC 9880.1(e))

    b) Defines "automotive technician" to mean an ARD or ARD's
    employee, who for salary or wage, repairs motor vehicles
    and performs maintenance, diagnostics, repair, removal, or
    installation of any integral component parts of an engine,
    driveline, chassis, or body of any vehicle, but excluding:
    repairing tires, changing tires, lubricating vehicles,
    installing light bulbs, batteries, windshield wiper blades,
    and other minor accessories; cleaning, replacing fan belts,
    oil, and air filters, and other minor services which the
    director of the BAR, by regulation, determines are
    customarily performed by a gasoline service station. (BPC
    9880.1(g))

    c) Limits the ARD registration fee to $200 for each place
    of business in this state and the annual ARD registration
    renewal fee to $200 if renewed prior to its expiration
    date, and provides that the renewal fee for a delinquent
    renewal shall be 1 1/2 times the renewal fee, but not more
    than the renewal fee plus $50. (BPC 9886.3)

    FISCAL EFFECT : Unknown

    COMMENTS :

    1)Purpose of this bill . This bill would require BAR to regulate

  4. #4
    TPMSProAlbert
    Guest
    AB 1665
    Page 3

    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 AB 1665
    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
    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

  5. #5
    TPMSProAlbert
    Guest
    AB 1665
    Page 4

    federal compliance issue."

    3)TPMS and federal law . Congress passed the Transportation
    Recall Enhancement, Accountability and Documentations Act
    (TREAD Act) in 2000 in response to a major recall of defective
    tires that created unsafe driving conditions. The TREAD Act
    mandates new vehicles that are less than 10,000 pounds gross
    vehicle weight to be equipped with TPMS beginning with the
    2006 model year, to alert drivers when the pressure in a tire
    falls more than 25 percent below the manufacturer's
    recommended tire pressure.

    TPMS continuously monitors the pressure in the tires through
    sensors located in the tires (direct system) or the use of
    wheel speed and other vehicle sensors (indirect system). The
    information collected by the sensors is transmitted to the OBD
    system that interprets the sensor signals and warns the driver
    when tire pressure is below the minimum acceptable level.
    Under federal law, motor vehicle repair businesses are
    prohibited from "making inoperative" any part of a device
    installed in a motor vehicle in compliance with an applicable
    motor vehicle safety standard. As a result, individuals who
    service vehicles with TPMS are prohibited from installing
    tires and rims without TPMS sensors on a vehicle with a
    functioning TPMS system, and are required to make sure that a
    vehicle's TPMS remains operational.

    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 [Act]."

    This bill would implement BAR's position by making clear that
    tire change and repair services are no longer exempt from BAR

  6. #6
    TPMSProAlbert
    Guest
    AB 1665
    Page 5

    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 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.

  7. #7
    TPMSProAlbert
    Guest
    AB 1665
    Page 6

    5)Exemptions for motor vehicle clubs and tow truck operators .
    This bill exempts tire services provided by a motor vehicle
    club holding a certificate of authority under the Insurance
    Code and a tow truck operator possessing a valid motor carrier
    permit under the Vehicle Code from licensure as an ARD. Motor
    clubs, such as the American Automobile Association of Northern
    California, Nevada & Utah or the Allstate Motor Club, and tow
    truck operators often provide emergency flat repair, tire
    changing or other tire services to their members and vehicle
    owners.

    This bill also seeks to exempts tire rotation and tire pressure
    adjustment services. However, because tire rotation and tire
    pressure adjustment services may affect the vehicle's TPMS and
    therefore its safety, the Committee may wish to consider
    deleting these exemptions as potentially dangerous to
    consumers.

    6)Questions for the Committee . Under this bill, individuals
    providing tire changing and repair services would be required
    to register with BAR as ARDs. The bill currently imposes
    TPMS-related requirements on ARDs "and tire dealers," but tire
    dealers are undefined under the Act and anyone working on cars
    with TPMS would be required to register as ARDs under the
    bill. In addition, the bill requires ARDs to "check the [OBD]
    system to ensure that the TPMS is operative," but according to
    BAR, a vehicle's TPMS system may have an indicator that is
    separate from the OBD system, which would require an
    individual to check the TPMS separately.

    The Committee may wish to clarify that all individuals who work
    on TPMS are required to register as ARDs, and remove the
    specific means by which an ARD can check the TPMS and instead
    require that ARDs be generally capable of diagnosing and
    servicing the TPMS.

    7)Arguments in support . According to Les Schwab Tire Centers,
    "[This] bill would bring the entire tire service and repair
    industry in compliance with the current federal and industry
    standards for the activation, calibration, maintenance, and
    replacement of the [TPMSs] embedded in all cars and light
    weight trucks sold in California and the USA since 2007."

    "[This bill] would additionally remove the [Act's] 42-year old
    exemption for tire sales only stores. This would be a

  8. #8
    TPMSProAlbert
    Guest
    AB 1665
    Page 7

    significant consumer protection advancement. Placing these
    long-time exempt businesses under the jurisdiction of [BAR]
    would finally require them to give written estimates [and]
    meet both the minimum industry requirements for conducting
    tire repairs and the federal and industry standards for
    servicing the TPMSs."

    According to the California Tire Dealers Association, "CTDA
    supports this bill for two key reasons: 1) properly inflated
    tires are safer for occupants in all vehicles; and 2) properly
    inflated tires improve fuel economy and benefit the
    environment. [This bill] requires that all tire dealers, when
    servicing a vehicle manufacturer with [TPMS], must have the
    appropriate calibration equipment and a qualified technician
    in accordance with industry protocol."

    According to the California New Car Dealers Association,
    "[There] is widespread potential for fraud among "tire sales
    only" shops preying on customers by quoting one price for
    replacing tires, but charging an inflated amount after the
    tires have been installed. This bill would require "tire
    sales only" shops to provide customers with written estimates
    for parts and labor before any work is done to their vehicle
    and prohibit additional charges from accruing without the
    customer's prior authorization. [This bill] levels the
    playing field for our dealer members, creates a fairer
    business environment, and protects consumers."

    8)Related legislation . SB 202 (Galgiani) of 2013 would have
    deleted tire repair and changing from the list of services
    exempt from licensure as an ARD under BAR, as specified. This
    bill was held in the Assembly Appropriations Committee.

    9)Previous legislation . AB 2065 (Galgiani) of 2012 was nearly
    identical to SB 202 and also would have deleted tire repair
    and changing from the list of services exempt from licensure
    as an ARD under BAR. This bill was held in the Assembly
    Appropriations Committee.

    10)Suggested Committee Amendments . The Committee may wish to
    delete the exemptions for tire rotation and tire pressure
    adjustment services because those services may affect the
    vehicle's TPMS. The Committee may also consider deleting
    "tire dealers" from the bill to reduce any confusion about who
    is required to register with BAR. The Committee may also wish

  9. #9
    TPMSProAlbert
    Guest
    AB 1665
    Page 8

    to remove the specific means by which an ARD can check the
    TPMS and instead require that ARDs be generally capable of
    diagnosing and servicing the TPMS.

    On page 3, delete lines 12-13, and renumber remaining
    paragraphs.

    On page 3, line 24, strike "cleaning," and add "cleaning
    or"

    On page 4, delete lines 26-27 and renumber remaining
    subparagraphs.

    On page 5, delete lines 13-17 and insert, "If a vehicle is
    manufactured with a TPMS, the automotive repair dealer
    shall be capable of diagnosing and servicing the TPMS in
    accordance with industry standards."

    REGISTERED SUPPORT / OPPOSITION :

    Support

    Les Schwab Tire Centers (co-sponsor)
    California Tire Dealers Association (co-sponsor)
    California New Car Dealers Association

    Opposition

    None on file.

    Analysis Prepared by : Eunie Linden / B.,P. & C.P. / (916)
    319-3301

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