State of California

Mark Hopkins Hotel
Room: Peacock Court
California and Mason Streets
San Francisco, CA

September 24, 1980
10:00 a.m.



80-18-1 CONTINUATION OF Public Hearing to Consider 001
Proposed Amendments to Title 13, California
Administrative Code, Sections 2035-2042,
Regarding Warranty of Emissions-Related
Components of Vehicles.

80-18-2 Other Business
a. Executive Session
b. Research Proposals
c. Delegations to Executive Officer

ITEM NO.: 80-18-1

Proposed Amendments to Title 13, California Administrative Code,
Sections 2035-2042, Regarding Warranty of Emissions-Related
Components of Vehicles.


Health and Safety Code Section 43204 requires motor vehicle
manufacturers to warrant that motor vehicles and motor vehicle
engines are designed, built and equipped so as to conform to
applicable emission standards and are free from defects in
materials and workmanship which would cause failure to conform to
applicable regulations for the useful life of the vehicle or
engine. To implement this section, in December of 1978, the Air
Resources Board (ARB) adopted emission control system warranty
regulations for vehicles sold and registered in California.
Since their adoption, the regulations have by and large been well
accepted by industry and the public and appear to be
accomplishing their intent of minimizing defects in vehicle
emissions control systems and providing for prompt repair or
replacement of defects in such systems. However, both before the
regulations were adopted and especially afterwards, concern was
expressed by various parties that the warranty could have a
harmful economic effect on the aftermarket service industry.
After the regulations were adopted, the California State
Legislature adopted a resolution addressing this issue, and the
Bureau of Competition of the Federal Trade Commission provided
comments on potential anticompetitive effects. In response to
this reaction, this proposal includes the deletion of specific
portions of the regulations, changes in the regulations' language
as requested by the State Legislature and Bureau of Competition,
as well as minor changes to the regulations that reflect 18
months of experience in enforcing the regulations.

The staff proposes to include in the warranty regulations the
penalties contained in Health and Safety Code Section 43016,
currently $500 per violations. At present, no remedy exists to
enforce many aspects of the warranty regulations. Section 2037
requires manufacturers to administer warranty claims long after
certification requirements (Section 2036(a), (b), (c), (d), and
(e)) have been satisfied, but no specific penalties exist to
enforce compliance after certification is granted. For effective
enforcement of the warranty regulations, a clear penalty is

The other most significant changes are proposed at the request of
the Federal Trade Commission's Bureau of Competition to lessen
what the Bureau perceives as possible anticompetitive effects of
the warranty regulations. The first proposed change would
require manufacturers to establish a procedure to enable
independent service facilities to perform warranted work that is
reimbursed by the manufacturer. The second proposed change would
allow the use of any replacement part (as that term is defined in
ARB regulations) in warranty repairs replacing the current
provision where manufacturers may designate which parts may be
used in these repairs.

The ARB staff believes that the changes to the warranty
regulations are necessary and prudent in light of our experience
with the regulations and the comments received. The proposed
changes will clarify to both the manufacturer and consumer their
rights and responsibilities under these regulations.