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Two California Bills Attempt to Amend the Business and Professions Code The first of two bills introduced in the California Legislature (SB 1460, Lee, not yet assigned to committee) would remove the requirement for insurers to disclose aftermarket parts installation Southwest and make certified parts adequate for Edition compliance with the Business and Professions Code (Section 9875.1). Currently consumers must be advised Texas in writing that aftermarket parts are being installed. Oklahoma Lee’s bill would require only that Louisiana such disclosure be made in the conNew Mexico sumer’s policy statement. The bill also requires certified aftermarket parts vendors or distributors to warrant parts equivalently to OEM, an electronic tracking system to monitor recalls, and a new requirement for reporting defective parts to both the certifying agency and the California’s BAR. The bill would also require vendors to proSoutheast vide the body shop with a service guarantee on defective parts which inEdition cludes a full refund within 60 days.
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In California the Automotive Repair Act establishes the Bureau of Automotive Repair under the supervision and control of the Director of Consumer Affairs. Existing law provides that a person who fails to comply with the act is guilty of a misdemeanor punishable by a fine not exceeding $1,000, by imprisonment not exceeding 6 months, or by both that fine and imprisonment, except as defined. Existing law also prohibits an insurer from requiring the use of nonoriginal equipment or aftermarket replacement parts for repairs on an insured’s automobile unless the insured has been given advance notice of the use of these parts in the repair estimate as well as information on the warranty applicable to these replacement parts. This bill would require an automotive repair dealer or insurer who uses or directs the use of replacement crash parts, as defined, to follow spec-
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See CA Bills, Page 51
VOL. 30 ISSUE 3 APRIL 2012
Nearly 200 Congressmen and Senators Write in Opposition to China’s Auto Parts Practices On March 16, a group of 188 U.S. lawmakers led by U.S. Senator Debbie Stabenow (D-MI) urged President Obama to crack down on “predatory” Chinese pricing practices, which they said are threatening the U.S. auto parts industry and could cost the U.S. more than a million jobs. “We cannot wait until further damage is done,” the nearly 200 members of the House and Senate— including all the Democratic members of the House Ways and Means Committee—said in a letter to President Obama. “Seventy-five percent of the jobs in the automotive sector are in auto parts, and these jobs are at risk in every state in the nation.” The Congressional letter encourages Presidential action against Chinese predatory trade practices in this sector to be one of the “first and highest priorities” of his Administration’s recently created Interagency Trade
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Enforcement Center. The lawmakers praised the administration’s creation of the Interagency Trade Enforcement Center to promote a more coordinated effort, which they say will provide the United States additional resources to examine China’s and other nations’ trade violations. This effort, unlike any that have taken place in recent memory, asks the Administration to further investigate the barriers that China has adopted and initiate appropriate action to level the playing field. The complaint is supported by the United Steel Workers. “Most trade cases are filed by the private sector after substantial injury has occurred. China’s practices in this sector have already caused harm, but the goal is also to alter its policies before the complete decimation of our domestic industry. In these critical economic times, we must take every appropriate action to address unfair See Chinese Auto Parts, Page 52
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U.S. Senate Passes Transportation Bill with Highway Safety Provisions
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The U.S. Senate has passed Senate Bill 1813, a two-year transportation bill worth $109 billion to go toward highway construction and auto safety initiatives. The House of Representatives has not completed work on its highway bill and may take up the Senate bill. The Senate legislation includes the fol-
lowing: ● revises highway safety improvement programs ● directs the secretary to establish requirements for regularly recurring updates and approval of state strategic highway safety plans See Transport bill, Page 10
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