The Alliance of Automotive Service Providers of Minnesota (AASP-MN) will renew its efforts to establish a collision repair shop-licensing program and also aim to ban insurance companies from owning repair shops. The two legislative proposals are carryovers from past sessions, according to Kevin Walli, association lobbyist.
MORE ON SHOP LICENSING
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The licensing proposal would establish basic requirements for shops to operate in the state. Some of the provisions, such as tax identification numbers and environmental permits are already required, Walli said in the association’s online newsletter. There also will be some equipment and continuing education provisions to ensure that shops are capable of making effective and safe repairs to damaged vehicles.
AASP-MN had strong authors for its licensing proposal in 2008, Walli said. However, the Department of Commerce opposed the bill, which was drafted to be a responsibility of the Department of Public Safety.
AASP-MN scheduled a meeting with Department of Commerce officials to discuss why they opposed the measure. One theory is that the department did not want to account for the cost of administering the licensing program in its budget. Walli said shop-licensing fees should cover the costs of administration.
AASP-MN also intends to reintroduce legislation that would prohibit insurance companies from owning repair shops. This legislation was written several years ago and placed on hold while Allstate challenged a similar Texas law. The Texas law was upheld in Federal District Court, in the Federal Circuit Court of Appeals and in U.S. Supreme Court, which refused to hear Allstate’s appeal, thus upholding the lower courts and the Texas law.
With the court case in Texas complete, the path is clear to renew similar efforts in Minnesota, Walli said.
