California Gov. Arnold Schwarzenegger vetoed two bills recently that were opposed by the collision repair industry.
The governor vetoed Assembly Bill 2825, which would have required repairers to give customers wholesale invoices for crash parts. The bill was strongly opposed by the collision repair industry in California. Proponents of the bill said it would prevent parts switching on vehicles undergoing repairs.
“The bill is essentially similar to a bill I vetoed last year,” Schwarzenegger wrote in a letter to the California State Assembly. “The provisions in this measure are duplicative of existing law and therefore unnecessary. Requiring automotive repair dealers to provide additional paperwork is unnecessarily burdensome and would increase expenses that could be passed on to the consumer, with no additional benefit.”
He also vetoed Senate Bill 1167, which would have required the Department of Insurance to convene a task force to study steering issues, and report its findings in writing to the legislature by Dec. 31, 2009.
The bill was introduced in February by Senator Pat Wiggins (D-Santa Rosa) and sponsored by the Collision Repair Association of California. The original language of the bill would have prohibited insurers from suggesting alternative repair choices to consumers if they had already selected a repair shop.
It was amended several times and passed by the Senate on Aug. 7. One of the amendments required the the insurance commissioner form a task force to study issues addressed by the insurance code on steering.
"The California Autobody Association (CAA) did not support the amended version of this bill," says David McClune, CAA executive director. "This bill would have required the Department of Insurance (DOI) to spend two years studying the issue of steering. The DOI has plenty of time to study this issue. If this bill had passed, it would have potentially delayed any action by the department on steering for at least two years.
A CAA task force is working with the DOI to address labor rate surveys, steering and capping of rates.
The final version of the statute would have prohibited insurers from requiring that a vehicle be repaired at a specific shop, and required them to provide each insured with an Auto Body Repair Consumer Bill of Rights.
In a letter to members of the California State Senate, Schwarzenegger said the bill was not a high priority: “The historic delay in passing the 2008-2009 State Budget has forced me to prioritize the bills sent to my desk at the end of the year’s legislative session. Given the delay, I am only signing bills that are the highest priority for California. This bill does not meet that standard and I cannot sign it at this time.”
