The U.S. House of Representatives Committee on Commerce has approved H.R. 1839, the National Salvage Motor Vehicle Consumer Protection Act of 1997. The Senate will most likely review similar legislation during September. ASA believes there is a strong possibility that the bills could pass both the House and Senate prior to the scheduled congressional adjournment deadline this fall.

There have been some major changes in the House bill since last year. The committee also made some technical changes during the mark-up. First, ASA was very pleased the 75 percent salvage definition has been increased to 80 percent in this year's titling bill, as introduced. The bill now defines a "salvage vehicle" as one that has been damaged, destroyed or wrecked up to 80 percent of its pre-accident value.

Second, House Commerce Committee leaders requested that the Congressional Budget Office (CBO) review the possibility of including language requiring post-repair inspections in the body of the bill. CBO is still reviewing this option and ASA supports efforts to address post-repair inspection.

Other key items in the legislation as passed by the committee include, but are not limited to:

• The salvage definition was expanded to include motor vehicles that are up to seven model years old at the time of the accident or have a retail value greater than $7,500. This is a reduction from $10,000. ASA opposed this monetary reduction and will seek to have the value raised back to $10,000 or greater.
• Adoption of definitions and post-repair inspection would be voluntary for states.
• States that do not adopt definitions and implement provisions of the bill would be denied access to the National Motor Vehicle Titling Information System.
• The definition of "non-repairable" remains intact. The bill currently defines it as "any passenger motor vehicle which is incapable of safe operation for use on roads or highways and which has no resale value except as a source of parts or scrap only or which the owner irreversibly designates as a source of parts or scrap."

The Senate definition for salvage is still at 75 percent. ASA will work to get the Senate closer in line with the House legislation. ASA believes that national uniform titling reform should take place in this Congress and ASA supports H.R. 1839.

ASA will continue to work with members of the House and Senate in an effort to improve the salvage definition, specifically with regard to the number of model years included.

Post-repair inspection is a top priority for independent repairers and, depending on the CBO Report, ASA hopes to acquire language in the final bill that will reflect a format for vehicle inspection.

ASA will continue to oppose any percentage definition for non-repairable vehicles. Any altering of the non-repairable definition would not be to the benefit of independent repairers because it would take business away from the shops.

Several organizations, including the Society of Collision Repair Specialists and the Automotive Recyclers Association, are seeking a 90 percent definition for non-repairable vehicles, whereby wrecked automobiles whose repair would cost 90 percent or more of the car's pre-accident worth are automatically deemed "non-repairable." ASA believes this policy would take more vehicles away from repair shops. It has consistently supported legislation and regulations (state and federal) that keep the number of repairable vehicles as high as possible, and continues to support the notion that vehicle owners should be allowed to decide whether or not their vehicles should be repaired regardless of how much damage has been caused in a wreck. ASA hopes that the defeat of the percentage definition in the House will encourage supporters of this effort to withdraw.

The new language, as passed by the House Commerce Committee, will be reviewed by various groups. Consumer groups initially opposed H.R. 1839 and have not commented since the changes have been made in the committee mark-up.

ASA will continue to work toward final passage of H.R. 1839 and will make every effort to protect the interests of independent repairers in the legislative process.

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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