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Monthly Update ALERT! Sept 2019

President's Message

Date: September 2019

RE: CalABC President’s Message:


Good Day to our CalABC Members and Friends,


As we enter the beginning of Fall it is a good time to reflect on how the year has been going so far with some time to still make a difference for 2019.


The legislature is a frenzy of activity with some bills getting last minute changes in an attempt to get them out the door before the end of the session.


I would encourage you to check out our upcoming Lunch and Learn with not only key information to help you stay out of trouble, but new and powerful tips and tricks to make a positive impact on your operations.


Sometimes we are so worried about external factors that we forget to take a more reflective look to see if things are going the way we envisioned them going.


This is true in my case, but I do take a moment re-evaluate and refocus on my "true north".


Finally there is the final BAR BAG meeting for 2019 coming up on October 17th so check out the agenda and see if the topics are important to you.  I anticipate there being a very heated conversation over fluid maintenance so if your operation is in the fluid maintenance business then this is a "don't miss" session


In addition we will be moving to a quarterly newsletter format with timely special alerts should the need arise.


Until next month; take care of your customers and have a little fun along the way!


Bud Rice

CalABC President






The Legislative session ended late Friday night September 13.  The Governor now has until October 13, 2019 to sign or veto bills on his desk.   Below is a recap of legislation and bills we are tracking.


Legislative Bill Update


1. Unsafe Used Tires.  Support.  AB 949 would prohibit an automotive repair dealer from installing a used unsafe tire as specified.  Status: Signed by Governor.


2. Independent Contractors vs Employees. AB 5. Concerns.  This bill would provide the factors of the "ABC" test, as specified, to be applied to determine the status of workers as employee or independent contractor.  The bill was amended to provide an exemption between business to business, which would include automotive repair shops conducting sublet repairs with third party vendors, provided that vendor meets the specified independent contractor criteria.  Status: Governor's Desk.


3. 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 be eliminated.  This bill would instead require the manufacturer fee to increase to $2.00 starting April 2022, for a total of $4.00 battery fee. Status:  Governor's Desk.


4. Electronic Receipts-Paper Waste.  AB 161. Concerns.  Requires a business to provide a proof of purchase to consumer only at the consumer option.  Also prohibits proof of purchase from containing bisphenol A or bisphenol S.  The bill exempts Invoices. Status: held in Committee. Two-year bill.


5. Private Post-Secondary Education.  AB 1343 & AB 1345. Oppose unless amended. 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:  Both bills held in Committee. Two-year bills.


6. 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: Governor's Desk


7. California Consumer Privacy Act (CCPA). AB 874. Support. Expands the "publicly available" information that is exempted from the definition of "personal information" in the CCPA and clarifies drafting errors.  The bill is supported by the Calif Business Chamber. Status: Governor's Desk.


8. Vehicle Exhaust Noise. AB 112.  Allows an individual who is cited for exhaust noise standard violation to fix the noise violation and provide proof of correction. Status.  Held in Committee - Two-year bill.


9. Tire Tax.  Oppose.  AB 755 would have established 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.  Status: Died on Assembly Floor, two-year bill.


10. 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.  We believe that this bill will most likely move next year.  Status: Senate Rules Committee - Two-year bill.


11. Two bills (AB 1355 Chau (who authored the CCPA Act of 2018) and AB 874 (Irwin)) have made their way through the process intended to further clean up the CCPA Act of 2018.  Both have now garnered the unanimous support by the members of both houses and are “double joined” by one of them, AB 874, which has the weight of the Senator Majority Leader behind it.  Double joining:  If both bills are signed technical amendments will be needed to avoid sections of the first signed bill getting chaptered out by the bill which is signed second.  To achieve this (adopting the technical amendments) the Governor can call a special session in the fall to enact a corrections urgency bill or a corrections urgency bill can be introduced in January.  Either correction bills will become effective on the date the Governor signs.


So, there is a very strong likelihood that some CCPA cleanup will be enacted resulting in a likely delay in the AG’s release of its CCPA regulations.


Upcoming Legislative Proposals


In addition to the above two-year bills, we expect the following legislation to be introduced when the legislators return for next session:


Auto Repair Industry and Grading System.   Concerns.  There continues to be talks of legislation that would create a grading system for auto repair shops similar to restaurants which would help consumers distinguish between good shops from bad.  Nothing has been introduced so far but we expect legislation next year.  Assembly member Low (Chair of the Business and Profession Committee) wants to provide consumers with shop disciplinary information and is looking at introducing legislation. We will work with the assembly member during the interim for possible alternative solutions, including legislation that would streamline the disciplinary process without jeopardizing any repair shop due process rights.


California Safety Inspection program.  There has been discussions of introducing legislation to establish a vehicle safety inspection program in California.  In 2017, Assembly member Chau carried AB 475 which would have required salvage vehicles to pass a safety inspection before the vehicle could be re-registered with the DMV.  AB 475 was eventually dropped due to concerns raised by the auto auction yards and insurers.  We will continue working and monitoring whether another safety inspection bill will be introduced next session. 






Regulation Update!


CalABC Leadership has been working hard this past month to review some pending changes with the BAR Smog Check Program providers since it was determined that Encore would be the new provider for CalVista, and they had subcontracted with Parson’s for their expertise in the Smog Check Program.


While we were initially concerned about the partnership, given some past issues with Parson’s and the BAR as it relates to the Smog Check Program, it appears that our member businesses and others are not opposed to that relationship and the subcontract work that Parson’s will provide for their expertise in handling the CalVista project.


The second item we’ve been working on was to determine who would attend the October workshop on behalf of the oil companies to help set the future regulations with the Department of Food and Agriculture’s Weights and Measures Enforcement Division the enforces the proper labeling and use of automatic transmission fluids by service providers. This topic has been discussed for several years when back in 2017 they gave a presentation at the BAR Advisory Meeting where they stated that if you, as a service provider used generic automatic transmission fluids and added another additive to meet that vehicle manufacturer’s specifications, you would be cited for altering the content of the generic fluid with the additive that made the label “false and misleading” since the additive wasn’t on the original fluid label.


The subject of using Original Equipment (OE) fluids versus a generic fluid with an additive was then bantered about for several more years and it appeared in April to soften when they did another presentation at the BAR Advisory meeting that seemed to indicate they wanted to meet with industry and find a solution. Then CalABC was advised they have a regulation proposal that would ban the use of a “generic fluid” with an additive and cite any service provider that uses anything but the OE Manufacturer’s automatic transmission fluid. Again, consulting with the oil company engineers and representatives, it’s clear they no longer believe you can use an additive with any ATF, and you must use the OE ATF required for that vehicle. October’s workshop should be interesting given the recent position changes on this topic. Stay Tuned.


The next BAR Advisory Group meeting is scheduled for Thursday October 17, 2019.   


Workshops. The BAR is also planning to hold two separate workshops after the next BAR Advisory Committee meeting. One workshop will address auto body equipment standards and the other will address transmission fluid additives. 



Reminder, we need everyone’s help in getting oil producers to the October Workshop to ensure we have the specialist at the table in developing policy for the future applications of transmission fluids and additives. Please send that information to me and I will forward them to Chief Dorais and Allen Morrison. 


CalABC Hot Topic Monthly Alert!

Provided Courtesy of Celly Services & Board Member, Sam Celly.


Organics Recycling is Mandatory for Businesses

To:         Environmental Health and Safety Coordinator

From:    Sam Celly, BChE MChE JD CSP

Date:      August 26, 2019

Ref:        California Organic Waste Recycling Regulations


THE REGULATION:  In October 2014, Governor Brown signed AB 1826 Chesbro (Chapter 727, Statutes of 2014) requiring that businesses to recycle their organic waste on and after April 1, 2016 based on the amount of weekly waste they generate. This law also requires that on and after January 1, 2016, local jurisdictions across the state implement an organic waste recycling program to divert organic waste generated by businesses.  Organic waste, also referred to as ‘organics’, means food waste, green waste, landscape and pruning waste, nonhazardous wood waste, and food-soiled paper waste that is mixed in with food waste. This law phases in the mandatory recycling of commercial organics over time, while also offering an exemption process for rural counties. In particular, the minimum threshold of organic waste generation by businesses decreases over time. This means larger segments of the commercial sector will increasingly be required to comply.  Legislation was enacted as China has stopped taking waste from the US, and landfills in the US are reaching critical capacity.  California is making this legislative decision to take the load off landfills by requiring recycling at all levels in the state.  (Source:


IMPLEMENTATION:  Effective January 1, 2019, California law AB 1826 also requires that businesses that have organic waste of 30 gallons (4 cubic yards) or more per week, must separate organic waste from other wastes.  If your organic waste at the business is 30 gallons or more per week, you must set up separate containers for organics in the office and break rooms.  Looking ahead, per AB 1826, if the State of California determines that the statewide recycling of organics in the year 2020 has not been reduced to 50% of the organic waste generated in 2014, then the organic recycling requirements on business will expand to cover businesses generating 15 gallons of organic waste per week.  Even though the law was effective January 1, the counties and cities are now putting pressure on businesses to reduce the waste to landfills and are slowly ratcheting up the enforcement. 


ACTION NEEDED:  Actions needed by management include clear labeling of containers for organic waste and directing employees to use them correctly.  Janitorial services will then be required to collect the waste from the facility, keep them separated in organic and non-organic categories, and transfer the waste to the commercial hauler-provided specific containers for organic and non-organic waste.  Essentially, management must provide separate containers for organic waste and non-organic waste (paper, plastic and glass) in the break room(s) and other locations where employees eat food and may dispose food and food-soiled paper.  Commercial waste haulers for the facility must be contacted to provide separate bins for haul away, so that the janitorial staff can dispose the waste into proper containers as required by law.


NOTE:  Mandatory recycling of organic waste is the next step toward achieving California’s aggressive recycling and greenhouse gas (GHG) emission goals. California disposes approximately 30 million tons of waste in landfills each year, of which more than 30 percent could be used for compost or mulch (Waste Characterization Study 2014). Organic waste such as green materials and food materials are recyclable through composting, mulching, and anaerobic digestion to produce renewable energy and fuel. GHG emissions resulting from the decomposition of organic wastes in land-fills have been identified as a significant source of emissions contributing to global climate change. Reducing the amount of organic material sent to landfills and increasing the production of compost and mulch are part of the AB 32 Scoping Plan (California Global Warming Solutions Act of 2006). 


DISCLAIMER:  The contents of this newsletter are merely for informational purposes only and are not to be considered as legal advice.   Employers must consult their lawyer for legal matters and EPA/OSHA consultants for matters related to Environmental, Health & Safety. The article was authored by Sam Celly of Celly Services, Inc. who has been helping automobile dealers comply with EPA and OSHA regulations since 1987.  Sam received his BE (1984) and MS (1986) in Chemical Engineering, followed by a J.D. from Southwestern University School of Law (1997).  Our newsletters can be accessed at  Your comments/questions are always welcome.  Please send them to


Celly Services is a great member

and are always here to help.  

You can reach Sam at 562-704-4000 or

Tuesday, October 1, 2019

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