During the 1990s, West Virginia took the lead in moving replacement crash parts legislation. Early in the debate came the discussion of whether original equipment manufacturers should have exclusive access to collision repairs during a vehicle's warranty period. After a lengthy interval, the crash parts issue is back in the public eye. To fully comprehend recent crash parts headlines, one must review the period of time leading up to the respite in crash parts policy activity.

Following the West Virginia legislation, the Automotive Service Association hosted two national summits on replacement crash parts policy. The first summit was held in Dallas and the second in Washington, D.C. Leaders from all industry segments - insurance, automotive repair, new car dealers, automakers, aftermarket parts manufacturers, parts distributors and consumer organizations - were invited to attend. Although ASA's efforts were not supported by every segment of the industry, ASA, the National Automobile Dealers Association and the automakers moved forward with model notice and consent legislation for the states.

ASA took a delegation of collision repairers to meet with the U.S. Justice Department's top litigator and chief antitrust policy official to discuss what options were available to repairers forced to use specific replacement crash parts.

This legislation was introduced in as many as 20 state legislatures in a given year during those years following the summits. Opposed by the insurance industry, these bills faced much difficulty and did not resolve the policy problems repairers faced with replacement crash parts. ASA reviewed numerous quality and safety studies from many companies and organizations. Although these initiatives were helpful, there were limited independent or third-party reviews of crash parts that could benefit the policy debate around the country. ASA asked the National Highway Traffic Safety Administration's top researcher to review this issue and hosted NHTSA in a northern Virginia repair facility. ASA leaders briefed a NHTSA representative and displayed various parts concerns but NHTSA's findings were inconclusive.

In Consumer Reports magazine, the general public saw firsthand the concerns repairers had raised during the state legislative policy debates. ASA was interviewed by Consumer Reports over a long period of time in developing the feature article. In February 1999, Consumer Reports showcased the crash parts problem with a cover story, "Shoddy Auto Parts."

During 2000, ASA met with the leaders of the U.S. House of Representative's Commerce Committee and with the leaders of the Senate Commerce Committee. The House Commerce Committee requested the U.S. General Accounting Office review the issue of replacement crash parts. In January 2001, the GAO released its Report to Congress. The GAO report highlighted the disconnect at NHTSA as far as its responsibility to the general motoring public in dealing with replacement crash parts issues. Although the report was clear in pointing out NHTSA's regulatory responsibilities in the crash parts area, it stopped short of an outright calling for NHTSA to be the chief regulator responsible for these parts. Much of this "lack of clarity" in the report was a result of the limited safety studies or independent quality studies on replacement crash parts.

Despite many proposed bills, few states have moved forward with a formal vehicle owner notice and written consent policy format as to what types of crash parts are used in the repair. The 1999 decision for the plaintiffs in the Illinois case, Avery vs. State Farm Mutual Automobile Insurance Co., provided a brief respite from the pressures to use specific replacement crash parts. Some insurers relaxed their mandated policies for the types of parts to be used. During the period following the Avery decision, state efforts to force notice and consent crash parts programs subsided.

As the Avery decision continues on appeal, the pressures to reduce repair costs have increased and some insurer parts policies have reverted to pre-Avery conditions. With this revival in industry parts pressure, states are again looking at notice and consent legislation. The Certified Automotive Parts Association (CAPA), during the policy lull, developed its own initiative for states to designate certain entities to certify aftermarket parts. This policy has not progressed to date and generally has not been accepted by collision repairers.

North Carolina legislation establishing notice and consent protections for vehicle owners, House Bill 1152, has passed the House of Representatives and is now being considered in the state Senate. ASA has asked that North Carolina collision repairers contact their state senators and request support for the legislation. (See letter.)

The state legislature in Alaska is also reviewing legislation protecting the rights of the vehicle owner. The approach in Alaska, House Bill 99 and Senate Bill 32, is to use a warranty structure in their legislation versus the notice and consent model legislation.

ASA is meeting with coalition associations to discuss how to resolve replacement crash parts policy concerns. The 2004 legislative sessions around the country may highlight the increasing interest in the crash parts policy area. Policymakers in many states will begin reviewing policy options for the 2004 sessions over the summer and fall of this year. Look for many repairers to put crash parts policy at the top of the list.

Bob Redding is the Automotive Service Association's Washington, D.C., representative. He is a member of several federal and state advisory committees involved in the automotive industry. For more information about the legislative activities of ASA, visit www.TakingTheHill.com.

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