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Maryland House Bill Center of Debate Over Use of OEM & Aftermarket Parts, Stakeholders Speak
Maryland House Bill 1258 would require insurance companies A controversial bill in Maryto pay for the use of car comland, addressing the type of pany-branded parts (OEM collision parts being used parts) for repairs made during during a repair, was presented the first two years after a veat a committee hearing March hicle’s date of manufacture. For vehicles older than two 10 in front of state delegates. years, the bill would limit reRepresentatives from the colFormer shop owner lision repair industry testified and current member pairs to either “certified” parts or original manufacturer parts. about whether to put restricof the Maryland tions on the use of OEM and House of Delegates, Regardless of the vehicle’s Rick Impallaria, aftermarket parts. This has manufacture date, an insured been a recurring debate in introduced HB 1258 motorist may consent in writMaryland, as well as across the United ing that he or she would like to use afStates. See MD HB 1248, Page 12 by Stacey Phillips, Assistant Editor
VA Photo-Appraisal Bill Passes with WMABA’s Input and Suggested Amendments, Update on PA Bill
See VA and PA Photo Bills, Page 20
P.O. BOX 1516, CARLSBAD, CA 92018
In January, VA Senate Bill 193 was presented to allow photos of collision damage to be used during the appraisal process, creating a stir among industry advocates who feared its passage could pose potential risks to consumers and collision repair professionals in VA. The Washington Metropolitan Auto Body Association (WMABA) quickly went to work to negotiate a compromise, and according to WMABA’s Executive Director Jordan Hendler, “The bill passed with our suggested amendments which was great.” The original wording in VA Sen-
ate Bill 193 did not seek to remove the requirement for vehicle appraisals to be based on physical inspections, but it would have permitted an initial appraisal based on photos to be used as the final appraisal. This provision caused Hendler and others to fear that consumers would cash out a claim without a physical inspection which could reduce the value of their vehicles since over 90% of VA estimates require a supplement. Because WMABA also saw potential benefits for consumers and shop owners from the proposed legislation, Hendler focused on refining the lan-
Change Service Requested
by Chasidy Rae Sisk
VOL. 7 ISSUE 1 APRIL 2016
Connecticut Senate Considers Shop Tax Legislation by ASA Staff
The Connecticut Joint Committee on Finance, Revenue and Bonding held a hearing on Senate Bill (SB) 335. If passed, this legislation would eliminate the sales and use tax on goods used exclusively in a business process. Specifically, SB 335 would correct a 1999 Department of Revenue Services ruling that has allowed taxation on paint and materials at the point-of-sale to shops, followed by shops then taxing customers for the same paint and materials. Speaking on behalf of the bill, Lisa Siembab, executive director of the Automotive Service Association of Connecticut (ASA-CT) said, “Collision repairers in the state of Connecticut have been unfairly penalized by an interpretation of the law that al-
lows paint and materials to be subject to double taxation. ASA-CT believes that the current law does not take into consideration the evolution of industry practices, and we think that SB 335 is a good first step toward lifting this unnecessary burden on small businesses and their customers.” In a letter of support submitted to the Committee, ASA also described how taxation of paint and materials is unfairly applied when shops purchase it, and again when they sell it. It also explained that today’s auto body repair business practices, related to the purchase of paint and materials, works to the advantage of vehicle owners or consumers and the environment, i.e. purchasing and mixing what is needed. To view the text of the legislation, please go to www.TakingTheHill.com.
NABR Launches New VRS Labor Rate Survey for Luxury Brands and Special Vehicles
National AutoBody Research (NABR) announced in March the launch of the new VRS Labor Rate Survey for Luxury Brands and Special Vehicles. Intended for collision repairers who work on highline vehicles and have luxury brand manufacturer certifications, the online survey is free and is accessible on the NABR website. Through the survey and its VRS technology, NABR measures and reports the market-based labor prices collision repairers charge for working on luxury brand vehicles, such as Audi, Bentley, Mercedes, or Tesla, for example, as well as special vehicles such as the new Ford F-150 or Nissan GT-R. “This new survey fills a large gap in collision repair pricing information and enables a new level of pricing sophistication for repairers,” said Sam Valenzuela, president of NABR. “Previously, there was no easy way for a repairer to know what competitive market labor rates were for working on luxury and special vehicles, or to know whether their price was above or below market.”
“The significance of this new survey and new pricing data cannot be overstated,” said Eric McKenzie, director of body shop operations for Park Place Dealerships, which includes Park Place Bodywerks in Dallas, TX. “This is a real breakthrough for the industry, helping us all understand market prices nationwide for repairing highline vehicles. Intuitively, shops know they cannot charge standard door rates for repairing these luxury brands, given the tremendous investment required to achieve those manufacturer certifications. Yet, it is not really clear what the market price is either, so this new VRS survey will shine light on that topic, to everyone’s benefit.” ds of dollars. Any collision repair owner or general manager may request a free, no-obligation demonstration of the VRS by contacting Sam Valenzuela, president, National AutoBody Research, 913-226-6550, Sam@National AutoBodyResearch.com. You can also visit www.National AutoBodyResearch.com for more information.
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