State of California

Crystal Ballroom
Hotel San Franciscan
1231 Market Street
San Francisco, CA 94103

February 22, 1978
10:00 a.m.

78-3-1 Public Hearing to Consider Proposed Emissions
Warranty Regulations.

78-3-2 Consideration of Resolution Reserving Certain
Powers to the Air Resources Board.

78-3-3 Other Business -
a. Executive Session - Personnel & Litigation
b. Research Proposals

ITEM NO.: 78-3-1

Public Hearing to Consider Proposed Emissions Warranty


Adopt Resolution 78-7.


From its field surveillance and enforcement data, the staff has
determined that the emissions warranty mandated by Section 43204
of the Health and Safety Code is not being interpreted uniformly
by vehicle and engine manufacturers or consumers, and is not
accomplishing the intended emissions benefit. Therefore, the
staff is proposing regulations which would clarify the rights and
responsibilities of all parties involved in a warranty claim.

The staff has proposed a list of examples of emissions-related
parts which are included in the warranty. This list could vary
according to what type of vehicle a manufacturer produced and
what type of emissions-related parts were contained on the
vehicles. Manufacturers would be required to submit their lists
of emissions-related parts, a statement of their warranties to
the consumer, and their maintenance instruction for each vehicle
type to the Executive Officer for approval prior to
certification. The Executive Officer could require modification
to any of these documents.

The staff proposes to offer non-binding arbitration to aid in
settling warranty disputes. After reviewing a dispute, the
Executive Officer would issue a Finding of Defect if a
warrantable defect were found in the vehicle or engine. This
process is intended to give the consumer's word some credence in
cases where, otherwise, he or she would have little recourse but
acquiescence to the dealer or manufacturer's opinion in a
warranty dispute.

A list of specific adjustments which are simple for vehicle
owners or service personnel to perform would be excluded from
warranty coverage; however, adjustments which are limited or
restricted by a factory installed limiter cap would be covered
under the warranty. Malfunctions arising from abuse, neglect,
improper maintenance, or lack of maintenance would be excluded
from warranty coverage if the manufacturer could show that one of
these conditions were responsible for the defect.

The proposed regulations would require an automobile manufacturer
to bear the costs of the diagnosis of a warrantable defect
identified by one of its franchised dealerships. In cases where
both a warrantable and a non-warrantable defect were found, the
costs would have to be split accordingly. However, for vehicles
undergoing repair work as a result of the State's Motor Vehicle
Inspection Program (MVIP), the vehicle owner shall not be liable
for more cost than the $50-75 limitation which applies to the
MVIP. If the manufacturer expended diagnostic time equivalent to
the maximum amount the consumer could be required to pay under
MVIP and found neither a warrantable defect nor a non-warrantable
malfunction then the defect which caused the vehicle to fail the
MVIP standards shall be presumed warrantable and the manufacturer
would be liable for all diagnostic expenses.

In addition, the staff is proposing an emissions warranty for
aftermarket replacement parts which would ensure that they are
actually meeting the Board's durability and emissions performance
criteria. Replacement parts would be required to carry and
express warranty equivalent to the time or mileage specified for
the original equipment part.