Friday, 09 November 2018 20:40

2018 Legislative Roundup: It Was a Very Good Year

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There were a lot of proposed bills this year that could have either helped or hurt the collision repair industry in California.


But by working hard to support or oppose them, CAA lobbyist Jack Molodanof was able to say it was a productive and successful year, legislatively speaking.


"The state legislature adjourned for the year, and the governor finished taking action on many bills," Molodanof said. "CAA had a very successful legislative year, which included supporting new laws that require preventative maintenance facilities to be registered with BAR and allowing customer authorizations through text message and other electronic means. CAA was also actively involved in stopping several pieces of legislation, including bills that would have: 1.) allowed insurers to conduct labor rate surveys in a manner skewing results and suppressing market rates; 2.) treated auto repair facilities as debt collectors and 3.) created new tires fees.”


Below is a summary of key bills that CAA worked on this year, along with BAR activity.


AB 2276 (Burke). Labor Rate Surveys. Oppose. The bill allows insurers to conduct “alternative labor rate surveys” but eliminates important standards set forth in Department of Insurance regulations that produce consistent, accurate and reliable labor rate survey results and instead allows insurers to skew the results in a manner that would suppress market rates. It died on the Senate floor but is expected to be reintroduced next year.


"This was the biggest bill of the year for CAA and the one we really worked hard to defeat," Molodanof said. "The insurers were trying to create alternative labor rate surveys, but the way they drafted the bill, it would have led to a whole new set of problems. CAA stepped up and took an active role fighting this one, and that helped to defeat it. This was a re-introduction of a bill from last year, and we're fairly confident that it will be coming back in one form or another next year, but we'll be prepared if and when that happens."

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