Missouri/Kansas Legislation:

We are pleased to announce that SB775 did receive a “Do Pass” vote in the Small Business, Insurance, and Industrial Relations Committee on May 12, 2008. This is quite an accomplishment for a bill which no one thought would have a chance. Thank you collision repair industry for your support of this very important consumer legislation. Unity and numbers can have an effect, let’s be sure this carries over to 2009.

LEGISLATIVE REPORT May 9, 2008

This will be our session closing report for 2008. We will post bi- monthly news updates on legislative matters until the start of the sessions in Missouri and Kansas in January. Important developments will be posted to the web site when necessary.

STORM would like to take this opportunity to thank all those across both states that gave of their time and money to be there to support legislative efforts in both states. These people went above and beyond just caring they jumped in and helped whether it was with physical support or monetary support for the effort. They did it not for themselves but for the industry. Those who lobby on behalf of the collision repairer cannot express their gratitude enough. You have proven that David can take on Goliath. It makes our job worthwhile.

Recapping 2008

Kansas:

HB2651 - http://www.kslegislature.org/bills/2008/2551.pdf- Assigned to House Transportation Committee
HB2652 - http://www.kslegislature.org/bills/2008/2652.pdf- Assigned to House Transportation Committee
HB2653 - http://www.kslegislature.org/bills/2008/2653.pdf- Assigned to House Insurance Committee
HB2655 - http://www.kslegislature.org/bills/2008/2655.pdf- Assigned to House Insurance Committee

These bills were consumer oriented bills which would have improved the interaction in the claims process. HB2651 offered amendments to the existing salvage title definition which would have brought Kansas in line with the Missouri version and been beneficial to the consumer who wanted to have his vehicle repaired.

HB 2652 was offered to establish rules in preparing estimates for the consumer which would have reflected the true amount of damage as close as possible and established that “short sheeting” was not an acceptable practice.

HB2653 dealt with the practice of deceptive referral of the vehicle owner to a repair facility or the common slang term of “steering”. The bill would have established certain rules which would have allowed the consumer free choice of repair facilities while not prohibiting the insurer from explaining their program unless the vehicle owner expressed a choice at which time all “persuasive” tactics would have had to stop.

HB2655 established that if a manual or automated system was used to prepare an estimate then it would be used in its entirety and ensure that compensation was made if materials could be documented. This bill would have provided the vehicle owner the knowledge that their estimate was prepared correctly and with all needed procedures for a proper repair.

Unfortunately because of election year politics and special interest groups which may have developed problems with the bills which were not related to the merit of the bills they were unfortunately not given a hearing in time so they could make it through the process.

These bills will be reintroduced in 2009 in both houses and rigorously promoted. The vehicle owner is the customer of the repairer which is why we consider these bills important to the consumer.

Missouri:

Missouri provided a much busier schedule although only three bills were introduced. These three bills were introduced on our behalf by Senator Wes Shoemyer and Co-Sponsored by Senator John Greishiemer. Even with election year we were able to bring SB775 to a hearing.

This was due to the unity and resolve shown by the collision repairer. On Collision Industry Day at the Capitol approximately 70 collision repair professionals took to the halls of the Capitol to explain the importance of the three following bills. It is a very good feeling for those who work the Capitol when the group is introduced in both Houses and asked to stand; when they did they represented almost all the gallery in both Houses. Because of this support Senator Shoemyer was able to get a hearing for SB775.

At the hearing for SB775 the collision repair professionals again answered the call, many driving several hours from their area of the state, to support and testify in support of SB775. These professionals actually filled the Senate hearing room leaving only standing room only.

This resolve, unity and support did not go unnoticed by the opponents of SB775. It is the first time in industry history that all three associations plus such a large contingent of repairers showed this unity and support.

SB775 did, through the efforts of all the professional collision repairers who gave of their time to support the bill, make it out of Committee with a “Do Pass” vote. This is enormous for the collision industry. Due to time constraints though it is unlikely that it will advance much further this session.

There is no doubt that the collision repairer in Missouri made a positive statement on behalf of the vehicle owner and his freedom of choice concerning where his vehicle is repaired. The Small Business, Insurance and Industrial Relations Committee were duly impressed with the testimony we as an industry presented, enough so to vote the SB775 as “Do Pass”. Overtures have also been made by opponents of the bill to attempt to find a common ground from which to approach the refilled bill so that a positive outcome can be achieved. SB775 and the companion bill will be re-introduced for the 2009 session.

A long summer is ahead in preparing strategies for 2009 and building support for our bills. Many think that as lobbyist the job is over at the end of the session, quite to the contrary, our work for 2009 has just begun. We will need the continued support of those that have put their “shoulder to the wheel” along with adding many new supporters.

SB 775 – Prohibits automobile insurers from requiring the use of specific repair shops and imposes certain conditions on physical damage appraisers.

Summary and Full Text of Bill may be found at:
http://www.senate.mo.gov/08info/BTS_Web/Bill.aspx?SessionType=R&BillID=149

SB 868 - Makes it an unfair practice for an insurance company not to follow all components of a repair manual when appraising a damaged vehicle

Summary and Full Text may be found at:
http://www.senate.mo.gov/08info/BTS_Web/Bill.aspx?SessionType=R&BillID=116

SB 986- Under this act every physical damage appraiser is required to give the consumer a copy of the estimate of damage describing the labor and parts needed on the vehicle and use the manual or automated system in it's entirety without modification to establish the estimated price of repair. It also states the estimator will provide a copy of any additional amounts to the consumer. Most importantly it establishes that an appraiser shall not develop a pattern or practice of preparing estimates of damage which vary over 10% from the completed repairs.
http://www.senate.mo.gov/08info/BTS_Web/Bill.aspx?SessionType=R&BillID=47472

Do not think that just because none of the bills introduced in 2008 made it completely through the legislative process that progress was not made. For the first time in the halls of both Kansas and Missouri Capitols the collision repair industry established it was a professional business that legislators needed to be aware of. Opponents of the collision repair industry veiws were impressed with the professionalism and the resolve of our industry to get things accomplished. It is very important that we do not let this momentum be lost. It is extremely important that we come back stronger and harder for 2009.

Watch our web site from now to January for up to date information. Our reports will be bi monthly unless something important makes an appearance and then we will immediately post it on our web site. If you want on the email list please send us an email with your name and email address and expressing a desire to be on the mailing list.

Thank everyone in the collision industry for a spirited year of legislation and wonderful year of support.

All the associations and those they represent account for approximately 16,000 professionals in the Missouri auto repair industry.

Bob Smith, AAM bobsmith@storminc.com