Local news stories affecting the auto body industry in California, Nevada, Oregon, Washington, Idaho, Montana, Hawaii, Alaska and Wyoming
The Assembly approved AB 1200 (Hayashi) 42-19 on September 9, 2009. The bill now goes to the Governor for his consideration. The CRA will ask him to veto the measure because it will hurt the independent collision repair shops that already suffering during the economic downturn while depriving claimants the benefits of a repair analyses based on the right thing to do, not the cheapest way to go.
The CAA has released an appeal to its members which reads as follows:
You may have read about the Commission on the 21st Century Economy, a blue ribbon tax panel tasked with finding ways to modernize California’s tax system.
What hasn’t gotten much news media attention are some of the specific tax changes that are very alarming for California taxpayers. Proposals under serious consideration include a property tax change that could lead to higher taxes for employers and higher rents for small businesses and average Californian and a doubling of the state gas tax that would cost billions every year.
AB 1200 (Hayashi) narrowly passed in the CA Assembly the evening of Sept. 10 by a vote of 41-19.
The bill is now on the governor's desk awaiting his signature or veto.
AB1200 would allow insurers to legally steer customers even after they have specifically chosen a body shop.
Both California body shop associations and many consumer groups are urging shop owners and consumers to call, fax, and email their opposition to AB1200 to the governor and ask for a veto:
The LA Times is reporting that AB 1200 will likely be approved by the California Assembly, based on the Assembly passing a previous version, and will likely go to the Governor next week.
Consumer Watchdog says it has "heard from consumers who felt they were mistreated by Los Angles-based Mercury Insurance Company. Our advocates and attorneys have observed Mercury's efforts to cheat consumers and avoid accountability through the Legislature, before state insurance regulators, and in the courts. For these reasons, Consumer Watchdog believes that consumers cannot trust Mercury Insurance. Here are the top 10 reasons why you cannot trust Mercury."
Opponents of Assembly Member Mary Hayashi’s (D-Hayward) auto insurance industry-sponsored legislation, A.B. 1200, released a set of documents today they claim show the intent of Hayashi’s bill is profit for insurers, not consumer information or safety.
On Aug. 25, Mary Hayashi chaired a hearing of the State Assembly to investigate fraud in the auto body industry in California. The hearing is closely related to AB 1200, which narrowly failed on the Senate floor during a 19-17 “Aye to Noe” vote on Aug. 24. Even though the vote was 19 in favor, the bill needed a 21 vote majority to pass. The bill was approved for “reconsideration,” which means it can either be voted on again, or it dies. This bill was also taken out of order. Insurance companies are lobbying very hard for this bill.
Bill Status: AB 1200 (Hayashi) was narrowly defeated on the Senate floor on August 24th. But, the bill was granted reconsideration, so victory is not yet assured. The legislation passed the Senate Banking, Finance, and Insurance Committee by a vote of 8 to 1, with 3 abstentions on July 9th.
“Unfortunately, AB1200 has been subject to a disinformation campaign led by those who have a vested interest in not allowing insurers to discuss these options with their claimants. These include trial lawyers who sometimes file questionable or frivolous lawsuits related to auto body shop repair.”
—Assemblywoman Mary Hayashi
In a piece written for the San Francisco Chronicle Open Forum on Aug. 19, Hayashi (photo left) asserted that AB1200 was under attack from a “disinformation campaign.” When looking at the facts of the bill it becomes clear that there is an abundance of disinformation on the bill, largely emanating from Assemblywoman Hayashi and the bill’s insurance company bankrollers.
Assemblywoman Mary Hayashi has authored a bill (AB 1200) that is meant to undo California’s anti-steering consumer protections. Hayashi’s bill is sponsored and supported by the auto insurance industry. The insurance industry supporters maintain that this bill allows insurance companies to better inform their policyholders about the benefits of DRPs. Uniformly opposing Hayashi’s bill are consumer advocacy groups.