Despite Crash Parts Law Suit, Sen. Holden Intros His 2nd Anti-Consumer, Anti-Competition Crash Parts Bill
16 January 2001
Despite Crash Parts Law Suit, Sen. Holden Intros His 2nd Anti-Consumer, Anti-Competition Crash Parts BillALEXANDRIA, Va., Jan. 15 The Coalition for Auto Repair Equality (CARE), representing many companies in the Montana Automotive Aftermarket, among them: NAPA, Midas, CARQUEST, Checker Auto Parts and Jiffy Lube, today, as in the last Montana legislative session, stated its strong opposition to Sen. Ric Holden's second attempt to introduce a car parts monopoly bill, SB 86. "Despite Rep. Paul Sliter's crash parts bill, HB 506, having a class action law suit 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 (OEMs) and the Montana auto body shops, stated Sandy Bass-Cors, CARE's executive director. Following the contentious defeat of Montana crash parts bills, HB 181, sponsored by Rep. Paul Sliter and SB 263, sponsored by Sen. Ric Holden, HB 506, also sponsored by Rep. Sliter was signed into law by then-Gov. Marc Racicot. Following HB 506's signing, the National Association of Independent Insurers and several out-of-state glass shops filed a class action law suit on the following grounds: (1) Abridgement of First Amendment Rights (HB 506 prohibits insurers from recommending certain repair shops) and (2) Interference with Interstate Commerce law. This bill is still in litigation. "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 are not required to sign a waiver for an OEM part. 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. "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," claims Bass-Cors. Crash parts bills have gone down in flames in every state but one, including the two in Montana. There is no need for Sen. Holden to burden the motoring taxpayers of Montana with car parts monopoly legislation," concluded Bass-Cors. The Senate Business and Labor Committee will conduct a hearing on SB 86 on Jan. 16th.