CAA Legislative Update 2019
1) Sales Tax on Labor. Oppose. SB 522 intends to make major tax reforms including expanding the sales tax to all services, including automotive repair labor.
2) Tax on Tires. Oppose. AB 755 would establish a new tax of $1.50 per tire, on top of the current $1.75 tax already charged, meaning a total of $13.00 of taxes for a new set of 4 tires. The additional tax would be used for storm water compliance.
3) Career Technical Education (CTE) Funding. Support. AB 1303 increases funding for CTE programs by providing ongoing $450 million per year.
4) Auto Collision Coverage. AB 1538. The bill is intended to address issues associated with “non-substandard” auto policies sold to low income consumers containing provisions preventing the insured from obtaining a “cash out” on damage vehicles unless the insured can demonstrate they have deductible money (usually $1,000).
5. Unsafe Used Tires. AB 949 would prohibited an automotive repair dealer from installing a used unsafe tire as specified. The bill would not apply to a tire mounted on a wheel that is temporarily removed from the vehicle and reinstalled on the same vehicle.
6. Grading System for Auto Repair Shops. Concerns. Based on a recent Northern California Bay Area NBC news story regarding a consumer who suffered damages to vehicle repaired by a shop which happened to be under a 3-year BAR investigation, there was discussion of introducing legislation that would create a grading system for auto repair shops similar to restaurants. Legislation has not been introduced so far but we will closely monitor.
7. Battery Fees. AB 142. Concerns. Current law requires both consumers and manufacturers to pay a $1.00 for each new battery sold until April 2022, at which point the consumer fee would increase to $2.00 and the manufacturer fee would go away. This bill would instead require the manufacturer to pay $2.00 starting from April 2022, in addition to the current $2.00 fee from consumer, for a total of $4.00.
Bureau of Automotive Repair (BAR)
The CAA continues to work with BAR on various issues, including the implementation of the new electronic signature regulations and updated Write it Right handbook. The BAR is in the process of holding auto body workshops and exploring the possibility of creating new and/or updated auto body repair standards.
Department of Insurance
Ricardo Lara is the new Insurance Commissioner. CAA will be working with the new Commissioner on various issues and plans on holding a meet and greet in the near future.
This year’s legislative day is scheduled for April 23, 2019 in Sacramento. Legislative day will give attendees the opportunity to learn how the legislative process works and how you can personally influence the outcome of bills and proposals. Meetings will be set up for attendees giving the opportunity to discuss key topics of interest to the auto body industry.