Rhode Island Governor Throws Monkey Wrench at Motoring Consumers by Allowing Anti-Consumer Bill to Become Law, States Care

ALEXANDRIA, Va., July 18 -- Over 400 Rhode Island small business people and consumers faxed, called and signed petitions into Gov. Donald Carcieri's office requesting that he veto an anti-consumer, anti-small business bill, House Bill 7705. But, rather than listen to the pleas of Rhode Island's small businesses and consumers, he threw a monkey wrench at them by allowing the bill to become law on July 12, 2006.

HB 7705 states that for any automobile which is LESS than thirty (30) months beyond the date of manufacture, the insurer and the auto body repair shop must provide a written notice to the vehicle owner that he or she is entitled to "original equipment manufacturer parts (OEM) in the repair of a motor vehicle body replacement part. To comply with this provision, written notice may be provided on the appraisal written on behalf of the insurer and the estimate prepared by the auto body repair shop.

"This is in violation of federal law known as the Magnuson-Moss Act, passed in the 1970s, which prohibits repairs from being tied to warranties. And, the less than 30 months is definitely within the warranty period," stated Sandy Bass-Cors, Executive Director for the Coalition for Auto Repair Equality (CARE). Consumers don't have to sign for car dealer parts.

"This was truly a 'dead-of-night' bill. House Bill 7705 was in the Senate Commerce, House and Municipal Government Committee as a 'Study Bill'. The Committee Chairman, Senator Frank Caprio, unexpectedly called a meeting at 1 a.m. and passed the bill. House Bill 7705 quickly went to the floor and then the Governor's desk," stated Bass-Cors.

"Laws such as HB 7705 plant the seeds of doubt in consumers' minds as to the high quality of aftermarket parts, making the aftermarket parts sound inferior. In actuality, aftermarket parts and car dealer parts are manufactured by the same companies, the only differences are that the aftermarket parts cost up to 50 percent less than car dealer parts and aftermarket parts come with life-time or long-term warranties, which car dealer parts do not.

"All this legislation does is intimidate consumers into buying higher- priced parts. House Bill 7705 hurts low and fixed income motorists, hurts small businesses and will eventually hurt the Rhode Island economy that depends on a competitive auto repair industry. No one gains from passage of HB 7705, except those selling car dealer parts," said Bass-Cors.

In addition to Rhode Island's small businesses who requested the Governor's veto, the Department of Business & Regulations, an original supporter of the bill, requested that the Governor not allow this bill to become law.

"Rhode Island's independent repair locations number nearly 700. House Bill 7705 will make it much more difficult for them to repair and sell parts," concluded Bass-Cors.

CARE represents companies in the automotive aftermarket, among them: NAPA, Midas, CARQUEST, AutoZone, Advance Auto, Jiffy Lube, O'Reilly's and others. Five million people nationwide are employed in the aftermarket in over 495,000 locations, including "mom and pop" shops.