Opposition Mounts To Montana Bill

HELENA, Mont.--Hearings begin today (Jan. 16) before the state Senate Business and Labor Committee on Senate Bill 86, which is being opposed by an aftermarket association called CARE--The Coalition for Auto Repair Equality.

CARE’s Montana aftermarket members include NAPA, Midas, CARQUEST, Checker Auto Parts and Jiffy Lube.

CARE calls the proposed legislation “a car parts monopoly bill,” and the association intends to fight its passage.

“Senate Bill 86 calls for what many have interpreted as ‘intimidation tactics’ by requiring that motoring consumers sign a waiver in order to accept an aftermarket crash part, but they are not required to sign a waiver for an OEM part,” said Sandy Bass-Cors, CARE’s executive director. “In addition, SB 86 proposes that the U.S. Dept. of Transportation become a certifier of parts, which would create more Washington federal involvement and interference in an area that should be left to consumer choice,” she said.

“Many aftermarket parts are manufactured by the same manufacturer of OEM parts. Therefore, to claim that legislation is needed to control and protect consumers from aftermarket crash or hard parts is a bogus claim, perpetuated by those whose only desire is to have higher markups and thus charge more for parts. Rural motoring taxpayers and those with fixed- and low-incomes will be hurt the most by the higher prices, higher insurance premiums and the anticipated longer wait to receive parts,” Bass-Cors said.

“Crash parts bills have gone down in flames in every state but one, including...two in Montana,” she said, criticizing state Sen. Ric Holden for introducing the latest proposal.

“Despite Rep. Paul Sliter’s crash parts bill--House Bill 506--having a class action lawsuit immediately filed against it, the State of Montana and former Insurance Commissioner O’Keefe, Sen. Holden has introduced yet another crash parts bill that will hand a legislative monopoly on vehicle crash parts to the Original Equipment Manufacturers and the Montana auto body shops,” said Bass-Cors.

HB 506 remains under litigation. Bass-Cors explained that following HB 506’s signing by then-Gov. Marc Racicot, the National Association of Independent Insurers and several out-of-state glass shops filed a class action law suit citing two main points:

1. Abridgement of First Amendment Rights (HB 506 prohibits insurers from recommending certain repair shops).

2. Interference with Interstate Commerce law.

“There is no need for Sen. Holden to burden the motoring taxpayers of Montana with car parts monopoly legislation,” Bass-Cors concluded.