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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 Bill
    ALEXANDRIA, 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.