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Monthly Update ALERT! June 2019




President's Message


Date: June 2019

RE: CalABC President’s Message:


FEAR – Has three meanings.  Forget Everything and Run.  Face Everything AND Rise. Or False Expectations Appear Real!  The choice is yours!


Good Day to our CalABC Members and Friends,


At the last Bureau of Automotive Repair’s Advisory Committee meeting in April, there was a presentation regarding the pending changes to the smog program and how QR (Quick Response) Codes were going to be added to ARD licenses.  During the presentation, everyone just sat there in silence and took in the presentation while asking a few questions.  The BAR believes adding the QR code will help a customer in who is at your business and can scan the QR code to immediately be directed to the BAR website with all the information about your business that is part of a public record.  It will allow the customer to review your BAR history AND provide easy access to be able to start a complaint.  Now, HOW DOES THAT MAKE YOU FEEL?  Somehow this great new idea by BAR is supposed to help the motoring public!  My thought is really?  So, somebody doesn’t like the way your front counter person says hi that day and BOOM, that’s the beginning of a complaint.  Or wait is there something even more unique and in the works at BAR these days?  Possibly this is the beginning of an online rating system for shops!  How handy are the QR codes for the makings of lawyers doing business like the Trevor Law Group, we all hold so dearly in our hearts!  Think about what can happen here to your shop, your investment and your livelihood!


I don’t know about you, but I am kind of tired of being accused of things that either didn’t happen OR better yet, the details are so convoluted and inaccurate but that gets entered as part of the complaint. The shop is guilty before even having a chance to address the issue to respond and resolve.  By adding a QR code to our licenses that are posted on the wall – we should all not only be shaking our heads in dismay BUT SHOULD BE STANDING UP AND FIGHTING AGAINST THIS PROPOSED IDEA!  I know CalABC’s Executive Director, Johan Gallo will be attending the BAR Workshop in July when this “Great IDEA” is discussed.  I have no clue if other industries like construction and cosmetology have this same requirement on their licenses or if this just starting with automotive repair shops!  In the end, the QR Code should not be implemented before the full ramifications are understood. Keep in mind, if you think the complaints being posted isn’t bad enough, consider what if the BAR has filed an administrative action against your business, then that’s going to be posted on your business history and accessible to all and that is before you’ve even had your day in court! What happened to “Due Process”? More like a public execution of your business before your day in court.


What if YOU decide this customer is NOT a customer and YOU decide NOT to work on their vehicle?  Now you probably upset the customer by telling them to take a hike, and they then click on the QR code and you are off to complain land!  I know I have been ranting about this topic today and, but I really believe this is a bad idea.


CalABC’s theme this year has been “If you aren’t at the table, then you are on the menu”.  CalABC will be at the table but we need your help as well.  If you are called upon to call or send an email, WE NEED to jump up and follow through.  This grassroots type of advocating for our industry works and has been proven time and time again!  Grassroots efforts are why the Tire Tax and Privacy Bills failed this year.  CalABC also needs more members and financial help!  If you are not a member, and to be honest I really don’t understand why you are not supporting the industry’s best California Advocacy Coalition and supporting our efforts join today.  It takes all of us to be on the same team, working together to fight QUESTIONABLE GREAT IDEAS developed by government employees who have no concern about what it takes to run a business.


Please help CalABC with our fight against these proposed laws and regulations that have a detrimental impact on our business, sadly those in charge of the rules and regulations don’t seem to care!  Johan Gallo, CalABC Executive Director, and Jack Molodonof have worked hard over the last 30 plus years to help this industry grow and prosper.  Give Johan a call at 949-433-4513, email him at or check out our website at  You can apply for membership or just donate to the Coalition.


I am advocating we ALL STAND UP and fight the QR code on the licenses! Things will happen quickly so become a part of us and stop this new wrinkle in our lives.  Regulation makers seem to forget business owners are taxpayers.  We too have a right to hold them accountable for CREATING BAD REGULATIONS and HOLD THEM ACCOUNTABLE FOR FAIRNESS IN THE REGULATED COMMUNITY! 


Please be prosperous and meet us at the table!


Nikki Ayers

CalABC President









Legislative Bills


Here is the legislative update.  The deadline for each house to pass bills introduced in that house is May 31, 2019.  If the bill does not pass the house of origin by May 31 it becomes a 2-year bill.  Keep in mind that we’re heading into the summer months and what I like to call Silly Season, as bills tend to see major amendments or become completely gutted and something completely different. We will track the Summer Recess which is between July 12-Aug 12. 


Sept 13 last day of the session.  Oct 13 last day for Governor to sign or veto bills.


1. Tire Tax.  Oppose.  AB 755 would establish a new tax of $1.50 per tire, on top of the current $1.75 tax already charged for a total of $3.25.  The additional revenue would go to storm-water projects that remediate zinc pollutants.  Member Alerts have been sent requesting that members contact their assembly members and ask them to vote "no" on the measure.  Status: Pending on the Assembly Floor.


2. 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.  Status: Senate Rules Committee.


3. Career Technical Education (CTE) Funding. Support. AB 1303 increases ongoing annual funding to $450 million a year from the current $150 million for the CTE Incentive Grant Program.  Status: Pending on the Assembly Floor.


4. Installing Unsafe Used Tires.  Support.  AB 949 would prohibit 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.  The bill specifies that visual inspection shall be used to determine whether a tire is unsafe and a tire repair is exempt provided it is repaired according to industry standards. Status: Senate.


5. 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 the consumer, for a total of $4.00. Status: Senate.


6. Independent Contractors. AB 5. Oppose.  This bill would provide the factors of the "ABC" test, as specified, to be applied to determine the status of workers as an employee or independent contractor. Status: Pending on the Assembly Floor.


7. Electronic Receipts-Paper Waste.  AB 161. Concerns.  Beginning Jan 2022, prohibits businesses from providing paper receipts to consumers except upon request. The bill exempts Invoices. Status: Senate.


8. Private Post-Secondary Education.  AB 1343 & AB 1345. Concerns. These bills are part of bill package targeting bad actors in the Private Post-Secondary Education.  These bills need to be amended to address concerns, otherwise, they will negatively impact good performing schools including Universal Technical Institute (UTI).  Status: Senate.


9. Smog Check Exemption.  AB 210.  Expands the existing smog check exemption from pre-1976 model vehicles to pre-1983 model year vehicles. Status: Assembly Transportation. Not heard. Two-year bill.


10. Illegal Tire Dumping.  AB 215.  Support. This bill increases the penalties for illegal dumping of waste, including tires, on private property. Status: Assembly Appropriations Committee. Two-year bill.


11. Minimum Franchise Tax.  SB 349. Support.  This bill would reduce the minimum franchise tax, as provided, based on the gross receipts of a corporation. The bill is sponsored by the California Small Business Association. Status: Assembly.

12. Grading System for Auto Repair Industry.   Concerns.  Based on the Northern California Bay Area NBC news story regarding a consumer who suffered damages to the vehicle repaired by a shop which happened to be under a 3-year BAR investigation, there was a 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 continue to closely monitor. 


12. Grading System for Auto Repair Industry.   Concerns.  Based on the Northern California Bay Area NBC news story regarding a consumer who suffered damages to the vehicle repaired by a shop which happened to be under a 3-year BAR investigation, there was a 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 continue to closely monitor.


Tuesday, June 11, 2019

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