Contact:	Bob Redding (202) 543-1440
For Release:	Immediate News Bulletin 98-36 April 22, 1998

Legislation Restricting Consumer's Right to Choose Passes Assembly

Washington, D.C., April 22, 1998 - Legislation has passed the New Jersey Assembly that would severely restrict the right of consumers to choose a collision repair facility. The Automotive Service Association (ASA) is concerned that this legislation helps reign in the costs of insurance by placing restrictions on independent repairers.

ASA Washington Representative Bob Redding said, "This is an enormous piece of legislation and we believe that most legislators were not aware of this provision. It makes the entire piece of legislation anti-consumer, anti-free enterprise, and anti-small business. We call on Gov. Whitman to conditionally veto Section 64 and return the bill to the legislature."

Section 64 would allow consumers to continue to choose their repairer. However, that repairer must repair the vehicle at the same price that the insurer's network would have charged.

"The Automobile Insurance Cost Reduction Act" is meant to help lower the costs of insurance, but will penalize independent repair shops rather than insurance companies. This is an enormous piece of legislation and buried within it is a section that is extremely detrimental to the independent collision repair industry.

The legislation was introduced on April 2 and originally passed the Senate on that same day. The legislation was amended in the Assembly before it passed on April 20th, and now must go back to the Senate. Passage may be as early as the week of April 27th.

"This legislation would put enormous financial pressure on independent repairers when they are conducting repairs. Our industry is committed to excellence, but demand that small business owners are not penalized in the quest to lower insurance rates," said Redding.

The Automotive Service Association is the largest not-for-profit trade association of its kind, serving more than 13,000 businesses and approximately 60,000 professionals from all segments of the automotive service industry. ASA is headquartered in Bedford, Texas.

ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. Additional information about ASA, including past news releases, is available on the ASA Web Site on the Internet (http://www.asashop.org).