Autobody News April 2014 Northeastern Edition

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Northeastern Edition New York Delaware New Jersey Pennsylvania

Maryland Connecticut Rhode Island Massachusetts

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Auto Body Bills in Rhode Island Draw Heavy Fire from Both Sides, Accusations of Lies On March 18, 2014, three auto body bills were heard by the House Committee on Corporations that the Property Casualty Insurers Association of America (PCI) says should be defeated in Rhode Island to protect inherent rights as consumers, according to reports by Randal Edgar in the Providence Journal. There were accusations of lies and counteraccusations of self-interest. There were numbers that suggest costs have risen dramatically and other numbers that suggest they’ve been stable. This year’s clash mostly revolves around two bills, both supported by the Auto Body Association of Rhode Island and opposed by the Property Ca-

sualty Insurers Association of America. House Bill 7404, sponsored by Rep. Stephen Ucci, D-Johnston, expands a law that requires owner approval when aftermarket parts are used on vehicles that are less than 30 months old. Under current law, the rule applies to body parts, but Ucci’s bill would make it apply to all parts. Supporters said the bill would protect owners and ensure that damaged parts on newer cars are replaced with parts from the car’s manufacturer. But opponents said the change would affect even minor parts and could drive up repair costs. House Bill 7796, sponsored by See Rhode Island Bills, Page 8

NY-based MSO Collision Experts Drops State Farm’s Select Service Due to Parts Procurement Requirement

more important for Collision Experts to have the freedom to buy parts from trusted vendors that the company has built relationships with over the years rather than be included in State Farm’s Select Service Program, which requires collision repair shops to purchase parts from PartsTrader. Richard Bowman said “Many of my parts vendors signed up with PartsTrader so we couldn’t use them.” “Sometimes you have to part ways in a partnership,” said Maryann Bowman. “In this case, I believe that See Collision Experts, Page 9

Change Service Requested

P.O. BOX 1516, CARLSBAD, CA 92018

Collision Experts, a New York-based MSO with two locations, said it will no longer be included in State Farm’s Select Service Program because the collision repair shop wants to have the right to decide where to purchase its parts. State Farm’s customers can still choose to have their vehicles repaired at Collision Experts’ shops in Schenectady or Clifton Park, but the national office may no longer refer customers to Collision Experts. Collision Experts CEO and owner Maryann Bowman said it was

VOL. 4 ISSUE 1 APRIL 2014

‘Kiss Bandits’ Vandalize Cars at Body Shop in Saddle Brook, NJ, Doing $40K in Damage On March 8, 2014, a group of four vandals wearing masks resembling those of the band Kiss did an estimated $40,000 worth of damage to about two dozen vehicles parked the Maaco Auto Body Shop in Saddle Brook, NJ. The group can be seen on surveillance video jumping on hoods, spraying graffiti, and smashing in windows. Police said that the suspects appear to be men in their teens or early 20s. A surveillance camera sitting above a Mercedes caught the men as they set to work, destroying it using metal pipes, shovels, spray paint, and a fire extinguisher. The Mercedes is now in police custody as they process it for prints. Shop owner, Walter Karol, said that he had to tell many of his customers that their vehicles were now in

worse shape than when they dropped them off for repairs. Karol said that he has filed an insurance claim and is repairing the cars that were damaged.

So far, there is no motive in the case and police are asking for help in identifying the masked men, hoping to make this performance their last. Call the Saddle Brook Police Detective Bureau at 1-201-587-2940 with any information.

Maryland Parts Bill Receives Unfavorable Vote in Cmte In a vote in the MD House Economic Matters committee on March 14, Maryland House Bill 574 (HB574), sponsored by Delegate John A. Olszewski, Jr., received an unfavorable report out of the committee. Introduced in January, HB574 and its companion, Senate Bill 487, sponsored by Senator John C. Astle, sought to prohibit insurance company personnel from specifying a specific vendor for parts or materials or part procurement process, and would have required OEM crash parts for a period of three years after the date of manufacture of a vehicle. In a 16 to 7 vote on March 14, the MD House Economic Matters committee voted for an unfavorable report on HB574. In Maryland, committees report to the legislature on the bills that are assigned to them as favorable, with or without amendment, unfavorable, or without recommendation. Having been voted out of committee, the bill now returns to the floor of its chamber of origin accompanied by a

report of committee action for consideration. No action has yet been taken on SB487. The bills provided common ground for insurers and non-OEM parts suppliers in opposition. Several insurance and aftermarket parts groups testified in opposition to the bill. Repair facility operators that support the legislation believe it protects consumers and preserves a repair facilities ability to manage its operations. The Washington Metropolitan Auto Body Association, WMABA, supports the proposed legislation believing it necessary to protect the rights of repair facilities to operate their business independently and protect consumers. The Automotive Body Parts Association (ABPA) publicly denounced the legislation prohibiting insurers from requiring the use of alternative collision parts on vehicles less than five years old. “Senate Bill 487 will severely See Maryland Parts Bill, Page 28

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