Taking The Hill
Salvage Bill Fails
The House and the Senate have adjourned without passing legislation to establish nationally uniform requirements for the titling of collision damaged vehicles. Senate Majority Leader Trent Lott (R-Miss.) hoped to include the legislation in the omnibus spending bill, but House and Senate leaders could not agree on a compromise.
Versions of the legislation had passed both the House and the Senate, but disagreements over the definition of "salvage vehicle" and the preemption of state law kept the legislation from moving forward.
ASA supports the concept of a national definition because the current inconsistencies in state definitions provide opportunities for title washing, inappropriate title branding, and frustration for consumers who purchase previously damaged vehicles. Some in Congress, however, had called for a definition that ASA believes is much too broad and would include older vehicles with minor damage. If a practical solution is not possible at the federal level, repairers are better off with a state-by-state approach.
ASA urged Congress to define a salvage vehicle as one that is up to 5 years old or has a retail value of more than $10,000 and whose cost to repair exceeds 80 percent of the retail value. ASA also urged Congress to reject any percentage definition of a "non-repairable" vehicle that might be offered to the legislation.
ASA and the aftermarket believe consumers should have the opportunity to choose for themselves whether or not to have their vehicles repaired and the motor vehicle aftermarket should have the opportunity to repair them.
Budget Increase for Office of Advocacy
The U.S. Congress has increased the budget of the Office of Advocacy. Created by Congress in the 1970s to help small business in its interaction with the Executive Branch and with Congress, the research budget of the office has dwindled from $3.7 million in its year of creation to $700,000 today.
This year, the small business community tried to strengthen the research function of the Office of Advocacy and sought a budget of $1.4 million. While that amount was agreed to in the Senate, the House took a more conservative approach and included $800,000 for research.
Earlier this year, the Automotive Service Association (ASA) as part of the Small Business Legislative Council, signed a "Statement of Principle" regarding the Office of Advocacy. The statement emphasized the importance of the office and advocated additional appropriations.
Small business groups believe that the Office of Advocacy has lost some of its effectiveness to work on behalf of small business. Originally employing 85 individuals for research, there are now only 48.
Congress Accelerates Health Care Deduction
The U.S. Congress has passed legislation that will accelerate the health care deduction for the self-employed to 100 percent by 2003. The deduction is being phased in and was to reach 100 percent by 2007. This bill implements the 100 percent deduction four years ahead of schedule.
Various plans to increase the health care deduction were considered by Congress this year. One measure, part of the House-planned $80 billion tax cut, would address the disparities between self-employed and employer-sponsored health care deductions. The legislation, however, was never considered by the Senate.
The accelerated health care deduction passed by Congress and signed by the President raises the current 45 percent deduction to 60 percent in 1999, 70 percent in 2002, and 100 percent in 2003.
Senate Approves Teen Driving Bill
The U.S. House and Senate have passed legislation that would ease job driving restrictions for teenagers. The legislation has been presented to the president for his signature.
If enacted, the legislation would increase the time that 17-year-olds can drive on the job from 20 percent of a workday to 33 percent, and 5 percent of a workweek to 20 percent.
The legislation contains several restrictions, including the towing of vehicles and time-sensitive deliveries, but overall the legislation is positive for independent repairers. In addition, teenagers would not be able to drive beyond a 30-mile radius of the business or transport more than three passengers.
Sears Case Could Invoke Industry Problems || The Basics of Four-Wheel Alignment Service || Getting Things Straight in the Body Shop || "How's Your Business?" Annual Survey || AutoInc.'s Tribute to Bud Merwin || The Increasing Cost of Doing Business || Guest Editorial || Tech to Tech || Tech Tips || News Briefs || Taking the Hill || Around ASA || Net Worth || Stat Corner || Shop Profile || Chairman's Message
AutoInc. Magazine ® Vol. XLVI, December 1998 (http://www.asashop.org)