CAWA Member Alert
Machine Shop Registration Requirements

CAWA sponsored law exempts auto parts stores with machine shops from BAR registration requirements

CAWA sponsored legislation, SB 107 passed and signed into law in 1998 helps CAWA members by not requiring auto parts stores with machine shops to meet BAR registration requirements if certain conditions are maintained.

Specifically, Business and Professions Code 9880.2 exempts a person whose primary business is the wholesale supply of new or rebuilt automotive parts who solely engages in the re-machining of individual automotive parts without compensation for warranty adjustments to those parts and who does not engage in repairing or diagnosing malfunctions of motor vehicles or motorcycles. "Primary business" means the business that accounts for the majority of the company's gross sales.

If this describes your business, it is important to remember that prior to commencing work, you must do the following:

1. Provide a notice to the customer that you are not regulated by the BAR.  The notice must also contain the Bureau of Automotive Repair's toll free number (800) 952-5210; and
2. Provide a written description of the re-machining services to be performed to the customer.

All auto parts stores with machine shops must comply with these rules in order to maintain your BAR exemption.

CAWA has been notified by members that they have encountered visits by BAR field representatives claiming they are required to be registered as automotive repair dealers, even though they are exempted from registration requirements based on the language stated in the law. If you encounter a visit from a BAR field rep, show them this alert. If you face further scrutiny by a BAR enforcement officer, contact CAWA and we will work with the BAR on your behalf.

As always, CAWA's legislative team is hard at work in Sacramento, Carson City, Phoenix and Washington DC protecting and promoting your business while advancing the automotive aftermarket industry.

For more information contact CAWA Director of Government Affairs Jennifer Zins at 916-871-0603.

For additional information about CAWA and for the latest industry news, go to www.cawa.org.