The Texas Senate on May 27 passed House Resolution 1131, the insurer-owned repair shop legislation, by a unanimous vote of 31 to 0. On April 8, the Texas House of Representatives passed the bill by a voice vote.
Body shops and consumers in Texas have reason to celebrate! Republican Texas Governor Rick Perry signed into law on June 20 Texas House Bill 1131, the Insurer-Owned Repair Facility Legislation. Earlier, the Texas Senate passed the legislation by a unanimous vote of 31 to 0.
Late breaking news
The State Bureau of Automotive Repair (BAR) announced on July 2 that it has filed accusations against five more Caliber Collision Center locations, including El Cajon (N. Johnson Avenue), Riverside (Indiana Avenue), Costa Mesa, Chino and Murietta.
The California Autobody Association (CAA), which had been "patiently waiting this year," according to Executive Director David McClune, to see if Texas would be successful in passing legislation prohibiting insurers from owning collision repair shops, now says it may be ready to try again.
Aftermarket parts manufacturers and CAPA are likely vexed by the newly-released Crash Parts Certification Study, published in July by the California Bureau of Automotive Repair (BAR). The report blasts the parts certification process, concluding that "certification has no value to the customer . . . if there are problems with the certified product the certifying entity does not stand behind their own certification process."
California's anti-steering legislation, SB 551, took a major step forward on July 9 when an amended version passed the Assembly Insurance Committee by unanimous vote and then moved to the assembly floor. Bill sponsor Sen. Jackie Speier (D-San Francisco) plans to move forward after she and supporters of the bill - the California Autobody Association (CAA) and the State Department of Insurance - can work out clarifying language. The bill passed the State Senate in early June.
Contending that they need to comply with restrictions placed on them by Texas House Bill 1131, Allstate Insurance Company is introducing a new direct repair program in the state of Texas. The new law, which was passed on June 20, requires Allstate to change its existing relationships with auto body repair shops and provide uniformity between its owned (Sterling Collision Centers) and non-owned auto body repair operations.
Now that SB 551 has been signed into law, it is the responsibility of collision repair shop owners to become familiar with its provisions and implications. Kelly Swenson, first vice president and president-elect of the California Autobody Association (CAA), spoke passionately at the CAA Annual Convention in October about the victory achieved for the collision repair industry by the passage of SB 551. Swenson suggested that all shop owners post the law in their facilities and indicated that training on the law and its implications would be offered early in 2004. The law goes into effect January 1, 2004. Enforcement falls to the Department of Insurance.