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Looming Supreme Court Ruling Overshadows Week of Hearings by Ed Attanasio
Body shops and insurance companies are both very interested in three separate, yet connected cases, all of which could seriously affect how they work together for many years to come. While California auto body and insurance company representatives were weighing in on Insurance Commissioner Dave Jones’ proposals to stop improper labor rate surveys and steering during the last week of April, an upcoming critical state Supreme Court decision could potentially hijack them both. On April 27, a joint oversight
hearing held by the Senate Committee on Insurance took place in the Capitol. The subject for debate was entitled Legislation, Regulation and Litigation: Enforcement of the Unfair Act Practices. In his introduction, Chairman Richard Roth, D-Riverside, the chairman of the Insurance Committee, outlined the The Unfair Practices Act (UPA), which establishes a basic code of conduct for insurers to make sure that policyholders and claimants are treated fairly. “Over the last decade or so, the insurance industry and the Department of See Supreme Court Ruling, Page 24
Aftermarket Parts Disclosure Legislation Passes NH Legislature, Bill is Before Governor for Signature
quiring the use of aftermarket parts. Specifically, the bill states: No insurer shall require or specify the use of after market parts on: I. A leased motor vehicle if the lease provides that such parts will cause a diminution of the residual value of such vehicle; or II. A motor vehicle that has been placed in service within the immediately preceding 5 years or has fewer than 50,000 miles recorded on the odometer. 2 Effective Date. This act shall take effect January 1, 2017. The Automotive Service AssociSee NH Parts Bill, Page 18
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P.O. BOX 1516, CARLSBAD, CA 92018
New Hampshire Senate Bill 436, introduced by State Senator Nancy Stiles, R-24, passed the New Hampshire House of Representatives on May 11th. It had passed the Senate on March 3, 2016. This bill prohibits an insurer from requiring or specifying the use of after market parts on certain leased vehicles or vehicles less than 5 years old or with fewer than 50,000 miles. S.B. 436 requires an insurer to disclose whether or not an estimate has been prepared based on the use of aftermarket parts. Any insurer that fails to provide the disclosure would be prohibited from requesting or re-
VOL. 34 ISSUE 6 JUNE 2016
Homeland Security’s Bruce Foucart Talks to ABN about Counterfeit OEM Parts by Stacey Phillips, Assistant Editor
With the number of OEM counterfeit parts cases on the rise, Autobody News talked to Bruce Foucart to learn more about where these parts are coming from and what collision repair shops should be aware of. Foucart is the director of the National Intellectual Property Rights Coordination Center for Homeland Security Investigations in Arlington, VA. He has 30 years of experience as a leader and manager at both the headquarters and field activities of U.S. Immigration and Customs Enforcement and its predecessor agency, U.S. Customs Service.
What types of counterfeit parts Q: have you seen during your investigations?
Bruce Foucart,director of the National Intellectual Property Rights Coordination Center for Homeland Security Investigations
What we have found is that every part that goes into a car, A: whether it is interior or exterior, it’s all being counterfeited now—smart keys, See Counterfeit Parts, Page 58
Minimum Wage Hike in CA Becomes Law; Overview of Implications for Employers by Jennifer Barrera, Reprinted with permission from the California Chamber of Commerce, www.calchamber.com
California is the first state in the nation to commit to raising the minimum wage to $15 per hour statewide. Employers need to prepare for the minimum wage increase. Governor Edmund G. Brown Jr. this week signed SB 3 (Leno; D-San Francisco), a job killer bill that will increase the minimum wage in California to $15 per hour by 2022 (2023 for companies employing 25 or fewer people since there is a one-year implementation delay for small business). SB 3 calls for an increase of $.50 per hour beginning January 1, 2017 and an increase of $.50 per hour in January 2018. The rate would increase $1 per year thereafter until 2022. Small business would not be required to begin the scheduled increases until
2018. Once the minimum wage reaches $15 per hour for all businesses, wages could then be increased each year up to 3.5% (rounded to the nearest 10 cents) for inflation as measured by the national Consumer Price Index. Until the minimum wage reaches $15, the Governor has discretionary authority to suspend increases based on current economic conditions. However, these “offramps” are discretionary and would come into play only if there are declining state revenues from sales tax, a decline in the labor market or if there is a budget deficit (this offramp is permitted to occur only twice). The new law also phases in sick leave for In-Home Supportive Services workers starting in July 2018. Minimum Wage California employers must pay emSee Minimum Wage Hike, Page 18
Presorted Standard US Postage PAID San Bernardino, CA Permit #2244