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Texas Bill Demands Independent Survey of Auto Body Labor Rates, Cracks Down on Steering by Houston Auto Body Association
The latest version of a Texas House bill would determine the state’s prevailing rate through a “transparent and unbiased” third-party labor rate survey. It also would prevent carriers from using coercion or most incentives—including a guarantee of no out-of-pocket costs—designed to bring customers to the carrier’s network of direct repair shops agreeing to repair the vehicle under certain rates and/or terms.
Labor rates Shops in several states have criticized
the practice of a carrier insisting that the “prevailing rate” for a particular market is a certain dollar amount - but refusing to reveal the data demonstrating how this value was calculated or basing the calcuations on questionable methodology. Lawsuits also have suggested carriers which do not conduct surveys simply base their view of a “prevailing rate” on whatever State Farm’s black box of a survey produces. The California Department of Insurance recently cited allegations of flawed surveys in mandating that any carrier conducting a survey had to folSee TX Bill Survey, Page 15
Dent Zone’s Jeff Snowden Awarded Lifetime Achievement Award at 2017 International Mobile Tech Expo
Jeff Snowden, one of the been with Dent Zone since its early advocates of paintless inception in 1991. dent repair (PDR) and a long“Jeff’s technical knowltime employee of Dent Zone, edge as well as his relationwas presented the Lifetime ship and networking skills Achievement Award at the Inhave played a role in growternational Mobile Tech Expo ing the industry into a naKevin Halewood, in Orlando recently. Snowden tionally recognized field,” Mobile Tech Expo was recognized for his more said Kevin Halewood, Mothan 25 years of service and Show Director, pre- bile Tech Expo founder and senting Lifetime leadership in the PDR indusshow director. “He has been Achievement try. both a proponent and proAward to Jeff Dent Zone, which is part Snowden at MTE moter, as well as a connector 2017. Credit: of the Nobilis Group, is one of of people.” Business Wire the pioneering companies in Snowden was an influential paintless dent repair and a leading contributor to the industry from the beprovider for the industry. Snowden has See Jeff Snowden, Page 48
VOL. 35 ISSUE 5 MAY 2017
Collision Shop Owners Share the (Mostly) Pros and (Few) Cons of Getting OEM Certified
Are automaker shop certifications a of pretty much everyone else because of us getting certified, but it’s really potential substitute for collision repair only been to my benefit. An insurer can shops seeking less dependence on intake any [agreement] I have [with surer direct repair programs? them] away, but they can’t take my cerThat was among the questions addressed by a panel of shop owners at tification. The DRPs helped us get to the recent NORTHEAST Automotive the point where we had the money to spend on OEM certification. Services Show held in SecauBut you get to the point where cus, N.J. James Carvino of you say, ‘Listen, I don’t need RoJo Collision in Brooklyn, you. So if you don’t want to NY, whose shop holds certifipay my rate or do this, you cations from about 10 aucan take the program and go tomakers, said he’s eliminated because now I’m certified. I most of the shop’s DRP reladon’t really need you. You tionships other than two with James Carvino can’t cripple my business.’” insurance companies “that are very understanding.” Tom Elder of Kompact Cars, “I basically have no issue [with Inc. in Clarksburg, NJ agreed, saying them], and I think they are happy to the 11 DRPs he previously had have someone who, even though my “helped us become better financed estimates may be 400 lines, they can and better equipped,” but that Mersee the car and know I’m doing the cedes-Benz and other OEM certificawork,” Carvino said. “I had to get rid See OEM Certification, Page 16
Northeast Lawmakers Consider Proposed Collision Repair Legislation A number of bills impacting collision repairers have been introduced in state legislatures throughout the Northeast this year. A Maryland bill (SB 1007), for example, would have required insurers in that state to use either OEM parts or non-OEM crash parts certified by an organization meeting specific requirements; those requirements appeared to allow the use of parts certified by the Certified Automotive Parts Association (CAPA) but not NSF-certified nonOEM parts. A March hearing scheduled on the bill, however, was canceled after the bill received an unfavorable report from a Senate committee and was withdrawn. A half-dozen industry-related bills have been introduced in New York. One (AB 1678) would limit the sale of automotive refinish materials labeled “for professional use only” to only
those with a valid state tax and federal EPA identification number, and who meet all local ordinances for the application of such materials. Two of the New York bills are parts-related bills. The first (AB 6617) would require that vehicle owners provide a written signature consenting to the parts that will be used in the repair of their vehicle; that disclosure form would be required to define each of the types of parts used. The bill also would require the use of only new OEM parts on vehicles two years old or newer, or for the duration of the manufacturer’s sheet metal warranty on the vehicle, whichever is longer. The bill also would make clear that the insurer is responsible for additional costs for labor or materials if non-OEM parts stipulated for use are found to be “ill-fitting.” See Northeast Lawmakers, Page 18
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