Bray’s Report

LKQ Corp, one of the largest auto parts recyclers and source for “used” parts for auto damage appraisers in the auto claims industry saw solid 1st quarter results. Click here for the story.

 The Ohio Board of Motor Vehicle Collision Repair Registration, in conjunction with the Ohio 

Attorney General Richard Cordray’s Office, the Hamilton County Common Pleas Court and the Hamilton 

County Sheriff’s Department, carried out a court order Monday to lock down three illegal auto repair facilities. 

 

Injunctions were granted against Jesse Paige, owner of Jesse’s Auto Body; Mike Weigel, owner of Mike’s Auto 

Body & Repair; and Will Scruggs, owner of Will’s Auto Repair & Body Shop; all of Cincinnati, for failing to 

register with the Board.  When the owners failed to meet the registration requirements after the injunction, the 

Board filed a “Contempt of Court” complaint.  The Court issued a deadline for the owners to become compliant 

with the Board and pay back fees.  When the deadline passed without compliance, the Board was granted a 

“Lock-down” order.  The businesses will remain locked down until they are registered.   

 

Michael Greene, Executive Director of the agency, indicated, “Enforcement efforts against illegal repair 

facilities increased in 2007 and 2008, and the trend will continue.  It is not the Board’s intention to close down 

repair shops, but rather bring them into compliance with state and federal regulations.”  He added, “It’s a 

consumer issue, and I would suggest everyone visit our website at www.collisionboard.ohio.gov prior to 

selecting a repair facility.  Consumers can check for registered shops at our e-licensing verification link, and 

learn the rights of a motorist when seeking auto repairs.” 

 

The Ohio Board of Motor Vehicle Collision Repair Registration was created in 1999 to regulate the collision 

repair industry and provide consumer protection.  The Board is entirely funded by registration fees from 

collision shops, auto glass businesses, paintless dent repair companies and airbag replacement units 

throughout Ohio.  The Board is made up of five collision repair shop owners, one mechanical repair shop 

owner, and one person to represent the public, who has no financial interest in the auto repair industry.  

 

For additional information about Ohio’s collision board, visit  www.collisionboard.ohio.gov.

 ASSEMBLY THIRD READING
          AB 1179 (Jones)
          As Amended  April 27, 2009
          Majority vote 

           INSURANCE           10-0
          
           -----------------------------------------------------------------
          |Ayes:|Coto, Garrick, Blakeslee, |     |                          |
          |     |                          |     |                          |
          |     |Charles Calderon, Carter, |     |                          |
          |     |Feuer, Hayashi, Nava,     |     |                          |
          |     |Niello, Torres            |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           -----------------------------------------------------------------
           SUMMARY  :   Adds to the Auto Body Repair Consumer Bill of Rights
          a disclosure that the consumer has a right to seek and obtain an
          independent repair estimate directly from a registered body
          shop, even when pursuing an insurance claim for repair of the
          vehicle.

Here’s a posting we found in the Burbank area.

A light pull on the floor should take this right out……… 

Three Democrat in the U.S. House of Representatives introduced HR 2057 recently. One would think these politicians would have more important issues at hand and could let the States handle laws regarding vehicle repair. 

Here’s the bill text below.

*****************************************

HR 2057 IH

 

111th CONGRESS 

1st SessionH. R. 2057

To protect the rights of consumers to diagnose, service, maintain, and repair their motor vehicles, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

 

April 22, 2009

Mr. TOWNS (for himself, Mr. GEORGE MILLER of California, and Ms. ESHOO) introduced the following bill; which was referred to the Committee on Energy and Commerce

---

A BILL

 

 

 

To protect the rights of consumers to diagnose, service, maintain, and repair their motor vehicles, and for other purposes.

 

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

 

SECTION 1. SHORT TITLE.

 

This Act may be cited as the `Motor Vehicle Owners Right to Repair Act of 2009.’

 

SEC. 2. FINDINGS AND PURPOSES.

 

(a) Findings- The Congress finds the following:

 

•  
  (1) Motor vehicle owners are entitled to choose which service provider will diagnose, service, maintain, or repair their motor vehicles.

 

•  
  (2) Promoting competition in price and quality for the diagnosis of problems, service, maintenance, and repair of motor vehicles will benefit consumers.

 

•  
  (3) Regular diagnosis, service, maintenance, and repair of motor vehicles, motor vehicle equipment, and motor vehicle systems such as pollution control, transmission, antilock brakes, electronic and mechanical systems, heating and air-conditioning, and steering are essential to America’s mobility, minimizing fuel consumption, protecting the environment, and enabling the highest levels of safety possible in modern motor vehicles.

 

•  
  (4) Computers of various kinds are now used by manufacturers in motor vehicle equipment and motor vehicle systems. On-board computer technology controls virtually all of the vehicle’s systems, and only service technicians with the necessary tools and information can access the computers to perform diagnosis, service, maintenance, and repair of the vehicle.

 

•  
  (5) Manufacturers have made available to their authorized dealers and service providers the information, tools, codes, and replacement equipment necessary to diagnose problems and to service, maintain, and repair motor vehicles that incorporate computers in their motor vehicle systems.

 

•  
  (6) Consumers in the United States have benefited from the availability of a wide choice of service providers for their motor vehicles. The American economy has also benefited from the availability of an aftermarket tools and parts supply that provides jobs to over 5 million workers in 495,000 businesses, and generates $200 billion in annual sales.

 

•  
  (7) Vehicles are now being equipped with systems that permit vehicles to communicate repair and diagnostic information wirelessly with the vehicle manufacturer and repair facilities. Car owners have the right to choose where and to whom information generated by their vehicle and vehicle computers is sent.

 

(b) Purposes- The purposes of this Act are–

 

•  
  (1) to protect motor vehicle owners’ right to choose a service provider for the diagnosis, service, maintenance, and repair of their motor vehicles;

 

•  
  (2) to promote competition in price and quality among service providers; and

 

•  
  (3) to promote safety and fuel efficiency by allowing consumers to choose among competing service providers.

 

SEC. 3. MANUFACTURER REQUIREMENTS.

 

(a) Duty To Disclose Information- The manufacturer of a motor vehicle sold, leased, or otherwise introduced into commerce in the United States must provide to the motor vehicle owner and service providers, using reasonable business means and on a non-discriminatory basis, all information to diagnose, service, maintain, or repair the motor vehicle. This information must include–

 

•  
  (1) information about safety alerts, recalls, service bulletins and the need for adjustments to maintain vehicle efficiency, safety and convenience; and

 

•  
  (2) all information of any kind provided directly, indirectly, or wirelessly to new car dealers or any repair facility to diagnose, service, maintain, repair, activate, certify, or install any motor vehicle equipment (including replacement parts and equipment) in a motor vehicle.

 

(b) Duty To Make Tools Available- The manufacturer of a motor vehicle sold, leased, or otherwise introduced into commerce in the United States must offer for sale to the motor vehicle owner and to all service providers on a reasonable and non-discriminatory basis, any tool for the diagnosis, service, maintenance, or repair of a motor vehicle, and provide all information that enables aftermarket tool companies to manufacture tools with the same functional characteristics as those tools made available by the manufacturers to authorized dealers.

 

(c) Replacement Equipment- The manufacturer of a motor vehicle sold, leased, or otherwise introduced into commerce in the United States must offer for sale to motor vehicle owners, and to all service providers on reasonable and non-discriminatory terms, all equipment for diagnosis, service, maintenance, or repair of a motor vehicle.

 

(d) Protection of Trade Secrets-

 

•  
  (1) A manufacturer may not be required to publicly disclose information that, if made public, would divulge methods or processes entitled to protection as trade secrets.

 

•  
  (2) No information may be withheld by a manufacturer on the ground that it is a trade secret if that information is provided (directly or indirectly) to authorized dealers or service providers.

 

SEC. 4. AUTHORITY OF FEDERAL TRADE COMMISSION.

 

(a) In General- For the purpose of enforcing compliance with this Act, the Federal Trade Commission may utilize all authority conferred on it by the Federal Trade Commission Act, or otherwise.

 

(b) Violation of Section 3- A violation of section 3 of this Act constitutes an unfair method of competition and an unfair or deceptive act or practice within the meaning of section 5(a)(1) of the Federal Trade Commission Act (15 U.S.C. 45(a)(1)).

 

(c) Violation of a Rule- Violation of a rule prescribed under section 4(d) of this Act constitutes violation of a rule defining an unfair or deceptive act or practice prescribed under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).

 

(d) Rulemaking- The Federal Trade Commission may prescribe rules to implement this Act.

 

(e) Cooperation With Department of Transportation- The Federal Trade Commission must cooperate with the Department of Transportation to publish technical service bulletins on a Federal Internet Website.

 

(f) Limitation- The Federal Trade Commission may not prescribe rules that–

 

•  
  (1) interfere with the authority of the Administrator of the Environmental Protection Agency under section 202(m) of the Clean Air Act (42 U.S.C. 7521(m)) with regard to motor vehicle emissions control diagnostics systems; or

 

•  
  (2) conflict with rules prescribed by the Administrator of the Environmental Protection Agency.

 

SEC. 5. ACTION BY STATES.

 

(a) In General- Whenever an attorney general of any State has reason to believe that the interests of the residents of that State have been or are being threatened or adversely affected by a violation of section 3 of this Act, or by the violation of a rule promulgated by the Federal Trade Commission to implement this Act, the State, as parens patriae, may bring a civil action on behalf of its residents to enjoin violations, to obtain damages, restitution, or other compensation on behalf of residents of the State, or to obtain such further relief as the court may deem appropriate.

 

(b) Notice- The State must serve prior written notice of any civil action under subsection (a) of this section upon the Federal Trade Commission with a copy of its complaint, except that if it is not feasible for the State to provide such prior notice, the State must serve notice immediately upon instituting an action. Upon receiving a notice of a civil action, the Federal Trade Commission may–

 

•  
  (1) intervene in the action;

 

•  
  (2) upon intervening, to be heard on all matters arising therein; and

 

•  
  (3) to appeal.

 

(c) Construction- For purposes of bringing any civil action under subsection (a) of this section, nothing in this chapter will prevent an attorney general from exercising the powers conferred on the attorney general by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence.

 

(d) Actions by Federal Trade Commission- Whenever a civil action has been instituted by or the Federal Trade Commission for violation of any rule prescribed under section 4(d) of this Act, no State may, during the pendency of the action instituted by the Federal Trade Commission, institute a civil action under this Act against any defendant named in the complaint in such action for violation of any rule as alleged in such complaint.

 

(e) Actions by Other State Officials-

 

•  
  (1) Nothing contained in this section may prohibit an authorized State official from proceeding in State court on the basis of an alleged violation of any civil or criminal statute of such State.

 

•  
  (2) In addition to actions brought by an attorney general of a State under subsection (a) of this section, an action may be brought by officers of a State who are so authorized.

 

SEC. 6. CONSUMERS’ RIGHTS.

 

A consumer or service provider may bring a civil action to enjoin any violation of section 3 of this Act or of any rule issued pursuant to this Act and for damages (including court costs and reasonable attorney and expert witness fees). The action may be brought in any court of competent jurisdiction.

 

SEC. 7. DEFINITIONS.

 

In this Act:

 

•  
  (1) The term `commerce’ has the meaning given that term in section 4 of the Federal Trade Commission Act (15 U.S.C. 44).

 

•  
  (2) The terms `manufacturer’, `motor vehicle’, and `motor vehicle equipment’ have the meanings given those terms in section 30102(a) of title 49, United States Code.

 

•  
  (3) The term `motor vehicle owner’ and the term `consumer’ mean any person who owns, leases, or otherwise has the legal right to use and possess a motor vehicle, or the agent of such person.

 

•  
  (4) The term `service provider’ means any person engaged in the diagnosis, service, maintenance, or repair of motor vehicles or motor vehicle engines.

 

•  
  (5) The term `replacement equipment’ has the meaning given that term in section 30102(b)(1) of title 49, United States Code.

 

•  
  (6) The term `model year’ has the meaning given that term in section 32901(a) of title 49, United States Code.

 

•  
  (7) The term `dealer’ has the meaning given that term in section 30102(a) of title 49, United States Code.

 

•  
  (8) The term `technical service bulletin’ means a communication sent to a dealer about the diagnosis, service, maintenance or repair of a motor vehicle or item of motor vehicle equipment and shall include all communications sent to the Secretary of Transportation under sections 30166(f) and 30166(m)(3)(A)(ii) of title 49, United States Code.

END

Here’s another labor rate update for the Riverside County area….

In this interesting article, a Nevada state assemblyman/Body shop marketing director will be competing against Allstate’s, Sterling Autobody unless AB 297 is approved. Click here for the story.

Well, AB 1179 just had some amendments made yesterday.. here’s was changed below. Apparently the estimate vs. assessment language was removed with a focus now changed to  require this focus..

"regarding a consumer's right to seek and obtain an independent repair
estimate directly from a registered auto body repair shop for repair
of a damaged vehicle, even when pursuing an insurance claim for
repair of that vehicle, be included in the Auto Body Repair Consumer
Bill of Rights  "

*************************************

BILL NUMBER: AB 1179	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 27, 2009

INTRODUCED BY   Assembly Member Jones

                        FEBRUARY 27, 2009

   An act to  add Section 758.3 to   amend
Section 1874.87 of  the Insurance Code, relating to motor
vehicle insurance.

	LEGISLATIVE COUNSEL'S DIGEST

   AB 1179, as amended, Jones. Motor vehicle insurance: damage
assessments.
   Existing law generally regulates the conduct of motor vehicle
insurers relative to insureds or claimants. Under existing law,
 motor vehicle insurers are prohibited from requiring that
insureds or claimants use a specific automotive repair shop 
 insurers are required to provide each insured with an Auto Body
Repair Consumer Bill of Rights containing specified information
relating to the rights of insureds relative to covered auto body
repairs  .
   This bill would  , in addition, require insurers to
disclose in writing to claimants that any damage assessment, as
defined, made by the insurer is not a written estimate of repair
costs, as defined. This bill would also require insurers to disclose
that the actual cost of repair may be higher than the damage
assessment, as specified   require that information
regarding a consumer's right to seek and obtain an independent repair
estimate directly from a registered auto body repair shop for repair
of a damaged vehicle, even when pursuing an insurance claim for
repair of that vehicle, be included in the Auto Body Repair Consumer
Bill of Rights  .
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 1874.87 of the  
Insurance Code   is amended to read: 
   1874.87.  (a) Each insurer subject to this article shall provide
each insured with an Auto Body Repair Consumer Bill of Rights either
at the time of application for an automobile insurance policy or
following an accident that is reported to the insurer. If the insurer
provides the insured with an electronic copy of a policy, the bill
of rights may also be transmitted electronically.
   (b) The bill of rights shall be a standardized form developed by
the department with the purpose of presenting easy-to-read facts for
auto insurance consumers. The content of the bill of rights shall be
determined by the department, and at a minimum, shall contain
information about all of the following:
   (1) A consumer's right to select an auto body repair shop for auto
body damage covered by the insurance policy and that an insurer may
not require this work to be done at a particular auto body repair
shop.
   (2) The consumer's right to be informed about auto body repairs
made with new original equipment crash parts, new aftermarket crash
parts, and used crash parts.
   (3) The consumer's right to be informed about coverage for towing
services, and for a replacement rental vehicle while a damaged
vehicle is being repaired.
   (4) Toll-free telephone numbers and Internet addresses for
reporting suspected fraud or other complaints and concerns about auto
body repair shops to the Bureau of Automotive Repair. 
   (5) A consumer's right to seek and obtain an independent repair
estimate directly from a registered auto body repair shop for repair
of a damaged vehicle, even when pursuing an insurance claim for
repair of that vehicle. 
   (c) The department shall consult with the Bureau of Automotive
Repair in determining the information to be contained in the bill of
rights. 
  SECTION 1.    Section 758.3 is added to the
Insurance Code, to read:
   758.3.  (a) For purposes of this section only, a "damage
assessment" is any communication presented to a claimant that is
intended to convey the cost of vehicle repair and that has been
prepared by an insurer or by an individual or entity associated with
the insurer and not registered as an automotive repair dealer
pursuant to Section 9884.6 of the Business and Professions Code.
   (b) For purposes of this section only, a "written estimate" is a
document prepared by an automotive repair dealer registered in
accordance with the requirements of Sections 9884.6 and 9884.9 of the
Business and Professions Code and Section 3353 of Title 16 of the
California Code of Regulations.
   (c) Any insurer who provides a claimant with a damage assessment
shall do so in writing, and the assessment shall contain the
following disclosure on the first page of the document in a minimum
of 16-point type:
   "THIS DAMAGE ASSESSMENT IS NOT A WRITTEN ESTIMATE OF REPAIR COSTS.
A WRITTEN ESTIMATE OF REPAIR COSTS CAN ONLY BE PREPARED BY AN
AUTOMOTIVE REPAIR DEALER REGISTERED WITH THE CALIFORNIA BUREAU OF
AUTOMOTIVE REPAIR. THE ACTUAL COSTS OF REPAIR MAY BE HIGHER THAN THE
COSTS CONTAINED IN THIS DAMAGE ASSESSMENT." 

North Carolina introduces estimator licensing bill that would require a high school diploma, a collision repair course approved by the state , one year of experience and the successful passing of a test. Click here for the bill text.