Friday, 30 May 2008 17:00

SB 1059 is killed for 2008

The bill would have required insurers to spell out the use of aftermarket parts in insurance policies written on vehicles three-years-old or less, but it did not make it off the CA Senate floor last week. The bill was approved to be heard before the Senate adjourned at the end of this month---however, it was not brought up again, killing it for this legislative session.

Aftermarket organizations celebrate

A large coalition including CAWA, Automotive Aftermarket Industry Association (AAIA), the Coalition for Automotive Repair Equality, LKQ/Keystone, California Retailers Association, AAA, insurance industry and others, who worked together to lobby against SB 1059 are claiming victory in its defeat.

    “The California State Senate clearly understands that SB 1059 is bad for California consumers,” said Rodney Pierini, president and CEO, CAWA. “Given the soaring costs of fuel and increasing costs of everyday goods and services, consumers deserve options from both the high costs of original equipment parts as well as increased insurance premiums.
    “Insurers being forced to approve only one sourced, high-priced part when the same or better quality aftermarket part is available and backed by long-term or lifetime warranties, is a lose-lose for consumers.”
    Aftermarket replacement parts are in most cases manufactured by the same companies that manufacture the car company parts, and the only difference can be the box it is marketed in and the price of the part. In addition, aftermarket parts are identical or even more improved parts that come with long-term or life-time warranties and cost up to 50 percent less than the identical car company part.
    “Aftermarket businesses and their employees should be extremely proud of this accomplishment,” said Aaron Lowe, vice president government affairs, AAIA. “Working together, there is no stopping the automotive aftermarket when faced with constant ploys by the car companies and others to restrict our ability to serve our customers, offer affordable and quality automotive replacement parts and remain competitive in the marketplace.”

see previous story posted below (5-22-08)

SB 1059’s First Attempt at Winning California State Senate Approval Fell Three Votes Short of Passage—2nd Try Set for Next Week

The Collision Repair Association of California’s SB 1059 (Migden) came up three votes short today as it failed passage by a vote of 18-19. The bill would require insurers to spell out the use of aftermarket parts in insurance policies written on vehicles three-years-old or less. Under the Rules of the State Senate, the bill may be voted on again prior to the passage deadline of May 30.

“I won’t mask our disappointment today at falling short,” stated Richard Steffen, CRA’s lobbyist, “but our effort has earned us the support of the state’s major consumer organizations. The days of insurers hiding aftermarket parts usage from their customers will eventually end. ”
 
Steffen said that scores of insurer representatives were spreading mistruths about SB 1059. The two most common misstatements were that the bill conflicted with federal warranty law and it banned the use of aftermarket parts on new cars.  Steffen said the best defense of the bill was to ask legislators to read it. “The bill clearly states that aftermarket parts can be used if the insurance policy requires their use,” stated Steffen. “Insurers apparently don’t want vehicle owners to know about aftermarket part usage.”

Steffen indicated SB 1059, will be subject to one more vote sometime next week.

Contact: Richard Steffen, 916-524-8046

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