LEGISLATIVE UPDATE
January 6, 2026
From: Jack Molodanof
Sent: Tuesday, January 6, 2026
Subject: Legislative & Regulatory Updates - Jan 2026
Good morning,
Happy new year!
The Legislature reconvened yesterday, entering 2026 amid a challenging fiscal environment. The state faces an estimated $18 billion budget shortfall and is preparing for the potential impacts of reductions in federal funding. We anticipate the introduction of more than 2,000 new bills this year, with a February 20 deadline for bill introductions.
We will monitor and review relevant legislation and bring key measures to your attention for consideration and action.
Below are the legislative updates, including two-year bills carrying over from the prior session, as well as regulatory updates.
Please let me know if you have any questions.
Thank you.
Jack Molodanof
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Legislation
Electric Vehicle Batteries
SB 615 – Electric Vehicle Batteries – Concerns. This bill, among other things, requires that automotive repair dealers who remove electric battery from a vehicle for repair, remanufacturing, or recycling must ensure that the battery is disposed of properly, adhering to the end-of-life requirements specified in the legislation. Status: Assembly Floor - Inactive File-Two-year bill.
Employment
AB 1234 – Employment – Nonpayment of Wages. Concerns. This bill would impose up to a 30% administrative penalty fee on every order, decision, or award issued by the Labor Commissioner. Status: Senate Floor – Inactive File – Two-year bill.
AB 1331 – Workplace Surveillance- Concerns. This bill would limit the use of workplace surveillance tools, as defined, by employers, including by prohibiting an employer from monitoring or surveilling workers in employee-only, employer-designated areas, as specified. The bill would provide workers with the right to leave behind workplace surveillance tools that are on their person or in their possession when entering certain employee-only areas and public bathrooms and during off-duty hours, as specified. The bill would prohibit a worker from removing or physically tampering with any component of a workplace surveillance tool that is part of or embedded in employer equipment or vehicles. Status: Senate Floor – Inactive File – Two-year-bill.
AB 1371 – Occupational Safety: Hazardous Waste – Watch. This bill would, among other things, allow an employee, acting in good faith, to refuse to perform a tasked assigned by an employer if it would violate those prescribed safety standards or if the employee has a reasonable apprehension that the performance of the assigned task would result in injury or illness to the employee or other employees. Status: Assembly Labor & Employment Committee. Two-year bill.
SB 310 – Failure to Pay Wages: Penalties – Concerns. Existing law allows wage claim penalties to either be recovered by an employee as a statutory penalty or by the Labor Commissioner as a civil penalty, as prescribed. This bill also would permit the penalty to be recovered by an independent civil action through the Private Attorneys General Act (PAGA). Status: Senate Floor – Inactive File.
Vehicle Emissions
AB 1368 – Smog Check- Exemption – Watch. This bill would extend the smog check exemption from vehicles that were manufactured prior to the 1976 model year, to any motor vehicle that is 30 or more model years old. Status: Assembly Transportation Committee. Two-year bill.
SB 712 – Smog Check: Exemption - Watch. This bill, known as the Jay “Leno’s Law”, would, commencing on January 1, 2027, fully exempt from the smog check requirements, both biennially and at transfer, a motor vehicle that is at least 35 model years old, was manufactured prior to the 1981 model year, has been assigned a special identification plate indicating that it is a historical vehicle, and is insured as a collector motor vehicle. vehicle, as specified. The bill, beginning January 1, 2028, would expand this exemption by one model year, every year, for 5 years. Status: Assembly Appropriations Committee – Held in Committee - Two-year bill.
Career Technical Education
SB 343 – Career Technical Education – Watch. This bill would allow school districts, county offices of education, and charter schools to credit coursework completed in an apprenticeship or pre-apprenticeship program toward one required course in visual or performing arts, foreign language, or career technical education for high school graduation, if specified requirements are met. Status: Senate Education Committee - Two-year bill.
Other Bills of Interest
AB 1325 – Lubricants and Waste Oil: Producer Responsibility – Watch - Repeals the California Oil Enhancement Program and replaces it with a Lubricant and Waste Oil Producer Responsibility Program (Program), which establishes an expanded producer responsibility program (EPR) for used oil and other automotive fluids. Status: Assembly Natural Resources Committee – Two-year bill.
AB 1421 – Vehicle: Road usage Charge – Watch. This bill would require the commission, in consultation with the Transportation Agency, state agencies, and stakeholders, to research and develop recommendations on a road user charge or mileage-based fee system and submit a report to the appropriate legislative committees by January 1, 2027. Status: Assembly Transportation Committee – Two year bill.
SB 354 – Insurance Consumer Privacy Protection Act of 2025 – Watch. This bill would create and update standards for the collection, processing, retaining, or sharing, collectively known as “processing”, of consumers’ personal information by licensees and their third-party service providers. Status: Assembly Insurance Committee – Two-year bill.
Regulations
BAR Vehicle Storage Fee Regulations. The BAR has released proposed regulations that would significantly impact how automotive repair dealers charge vehicle storage fees and set a troubling precedent for the future. The proposal raises several concerns, including allowing BAR to publicly survey and post vehicle storage rates, imposing an unrealistic one-day customer notification requirement, and effectively requiring repair shops to provide at least three days of free storage before fees may accrue. We have submitted written comments outlining concerns. For more details, see the link below. https://www.bar.ca.gov/public-workshops/
BAR Tear Down and Towing Regulations. Effective July 1, 2025, new regulations imposed requirements on automotive repair dealers, including but not limited to: disclosing third-party payor amounts to be paid in the estimate or providing specific written notice if the amount is unknown: following requirements for preparing an estimate based on one provided by a third-party payor; and, when a shop arranges towing on behalf of a customer, listing towing fees on a separate document rather than including them in the repair estimate. Due to concerns raised regarding the towing fee documentation, BAR has indicated that it plans to make changes to the towing documentation requirements. We will work with BAR on these changes to address concerns See link for full regulatory text. https://www.bar.ca.gov/pdf/regulatory-actions/tear-down-2024...
Mobile Repair, Referral Services and Internet-Based Advertising. These new regulations took effect on October 1, 2025 and require a mobile ARD to provide physical address where repairs are performed. A brick and mortar ARD that offers mobile services may only conduct repairs withing 50 miles of the shop location (50-mile exemption) otherwise a mobile ARD registration is required and these regulations require all shops to clearly display in any internet-based advertising the following 1) the Business name; 2) the ARD registration number and 3) the phone number registered with BAR. Due to questions and concerns with regard to the new internet-based advertising requirements, BAR has indicated that they were going to provide further clarification through possible revised regulations and/or FAQs with examples to the industry. We will work with BAR to make sure clarification is provided for the industry. See link for full regulatory text. https://www.bar.ca.gov/pdf/regulatory-actions/tear-down-2024...
California Energy Commission (CEC) – Replacement Tire Regulations. The California Energy Commission (CEC) has indicated its desire to create replacement tire efficiency regulations that require tire retailers, including all automotive repair dealers, to display signs, provide tire efficiency disclosures to consumers and to include this information in all advertising, and ensure retailers receive training on the sale of these new efficient tires. There has been no public announcement of when they will release the revised tire regulation text. We will continue to monitor and provide updates as they become available. For more details, see the link below. https://www.energy.ca.gov/programs-and-topics/programs/repla...
BAR Advisory Committee Meeting. The next BAR Advisory Group (BAG) meeting is scheduled for January 29, 2026. The BAG is an important committee that advises BAR on issues and programs affecting the automotive repair industry. Established in 2001, the BAG is comprised of volunteer representatives from various member associations and organizations. The group holds quarterly public meetings to promote collaboration and the exchange of ideas. We plan to attend and participate and will provide a report following the meeting. Once the agenda is released, we will forward it. See link for details. https://www.bar.ca.gov/bar-advisory-group