President Ben Mendoza, Kelly's Body Shop, Santa Ana
1st VP Mike Passof, B & J Body Shop, Rancho Cordova
VP Don Feeley, City Body & Frame, Riverside
Treasurer Ted Stein, Drew Collision, La Mesa
Secretary Kathy Mello, TGIF Body Shop, Fremont
Past Pres. Dave Picton, G & R Body & Paint, Sacramento
CAA Board of Directors Meeting Report
The California Autobody Association held its 1st Quarter Board of Director’s meeting at the Doubletree Spectrum in Irvine on February 9. The prior evening, a reception was hosted by the Orange County chapter for the attendees.
The CAA reported on the new OSHA Hazard Communication Standards that changes the MSDS labeling and employers have until December 1, 2013 to train their employees. More information can be found on the CAA website.
During the board meeting, members were part of two extremely informative presentations:
Rick Leos with Toyota presented information on the new Toyota Predictive Estimating system.
Scott Sorrell, CEO Sales Adrenaline spoke about “How to Charge Higher Prices & Get Your Customers to Thank You For It.” Scott’s presentation was sponsored by Enterprise.
The Education Committee reported discussion on chapters adopting a school and on starting a resume portal for students, as well as helping schools in each chapter on raising money.
The Membership Committee discussed ideas of communicated value to non-members, putting out more information to consumers to identify brand, and a possible CSI program branded CAA.
The Technical Review Committee discussed ways the CAA could put together a blueprinting guide, discussed new glass repair tool, and discussion on new aftermarket parts regulation.
CAA Legislative Committee Report: Department of Insurance
The Department of Insurance (DOI) has finalized its regulations regarding standards for reasonable auto body repairs and procedures and use of aftermarket crash parts. The regulations take effect on March 31, 2013. The regulations:
· Require an insurer to pay for an amount to repair the damaged vehicle to its pre-loss condition in a good and workmanlike manner, based upon the repair standards required by auto body repair shops licensed by the BAR;
· Require an insurer to pay for the costs associated with returning a defective part and the cost to remove and replace the defective part with compliant non-OEM part or an OEM part;
· Require the current insurer’s warranty be expressly stated in the estimate of repair generated by the insurer;
· Require an insurer to cease use of a part known to be non-compliant, and notify the part distributor within thirty (30) days.
The CAA will be working with interested stakeholders, including insurers, distributors and monitoring the new regulations to determine how they are being implemented in the state.
The DOI is also in the process of reviewing and updating regulations pertaining to labor rate survey standards for conducting surveys; and clarification on steering, after a consumer has specifically selected a shop to have car repaired. The CAA will continue working with the DOI on these regulations and will keep members advised.
The Legislature is back in full session. The deadline for bill introduction is February 22. It is anticipated that over 2,000 new bills will be introduced this year. The CAA will review and monitor and bring to the membership attention any legislation that may impact the industry.
CAA along with the ASCCA has scheduled its annual Legislative Day for April 16 in Sacramento. CAA is hoping to get as many members to attend this important event where members have an opportunity to meet with legislators to discuss legislation that impacts automotive repair shops.
The CAA will actively monitor the annual state budget and oppose legislation that would require small business to withhold 3% of payments to independent contractors and/or extend the sales tax to automotive services (labor). The CAA will continue to monitor and keep members updated on this and other proposals that impact small business.
Bureau of Automotive Repair (BAR)
The BAR Chief, John Wallauch was recently confirmed by the State Senate. The CAA testified in support of his appointment as BAR Chief. The BAR also has been working on several areas including increased enforcement of unnecessary preventative maintenance services or as BAR has termed “Wallet Flushes”. BAR is also looking into additional enforcement tools including cite and fine for improper estimates. Also due to recent complaints of improper/unsafe installation of vehicle windshield replacement services, the BAR is discussing the possibility of creating minimum standards for windshield/glass replacement.