FOR IMMEDIATE RELEASE
For Further Information:
Aaron Schulenburg, SCRS Executive Director
Phone: (302) 423-3537 or Email:
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SCRS Effectively Minimizes Negative Ramifications of NCOIL Model Act
Prosser, WA, November 25, 2009 - On November 19th - 21st the Society of Collision Repair Specialists (SCRS) participated in hearings held by the National Conference of Insurance Legislators (NCOIL) in New Orleans, Louisiana relative to a proposed model act on airbag fraud and being entertained by the NCOIL Property and Casualty committee.
SCRS had previously provided testimony in opposition to the model at the summer NCOIL meeting held in Philadelphia, Pennsylvania, and has since been involved in at least seven interim conference calls with legislators held on both this particular model act, and another that addresses both aftermarket crash parts and steering. NCOIL model acts are developed and passed by NCOIL, and then made available for individual state's legislators to consider for adoption within their own legislative sessions.
In the most recent November meeting, SCRS' testimony of opposition, delivered by Executive Director Aaron Schulenburg, was paired with similar opposing testimonials from the Alliance of Auto Manufacturers (AAM), the Association of International Auto Manufacturers (AIAM) and various individuals representing automakers such as BMW and GM. The opposition was not against direct notification to the consumer, or more thorough documentation as outlined in the model; but was specifically over the perception that the model may legitimize the use of salvaged airbags by describing a proper process to follow if they are used in the repair process. It was also conveyed that the industries hold a tremendous amount of concern over the safety for the consumer and liability for the repair facilities that is tied to the use of salvaged airbags, a currently uncommon practice in collision repair facilities. In addition, the testimony offered by SCRS discussed concerns of the "unintended consequences" the model may have, which could generate a more widespread use of airbags, opening the door for insurers to specify these parts in claims settlement, which was seemingly legitimized through the original language in the model.
The preliminary hearing was held on Thursday, November 19th with a vote held on Saturday, November 21st. After the preliminary hearing, SCRS offered an interim update via email to its affiliate associations urging the state affiliates and its members to immediately start on a grassroots outreach to the state legislators who were in attendance at the meeting, and strongly urge to oppose the model act as written.
"I am proud of the efforts from those 'back home' in our industry," stated Schulenburg. "I had numerous representatives of the legislature serving on the NCOIL committee comment to me on how many calls and emails they received from SCRS members and collision repair facilities on Friday. It was very obvious that the direct communication from our industry to the legislators from the district level was impactful and effective in their votes on Saturday. Our industry's voice was heard, and the concerns expressed certainly played a large role in improving the outcome."
After much lobbying and discussion with the representatives, the opposing parties, including SCRS, supported an amendment offered by Kentucky Representative Steve Riggs which added that, "any person who installs a salvaged airbag in a vehicle shall apply a permanent, durable label that clearly states that the vehicle contains a salvaged airbag. Such label must be permanently installed on the dashboard of the vehicle. Any person who removes such a label shall be guilty of a criminal offense."
"We appreciate the support from Representative Riggs and all those who voted in favor of including this amendment in the model," added SCRS Chairman Barry Dorn. "This one amendment reduces the negative impact we felt the bill had the potential to unleash, and ensures that any consumer who owns or enters the vehicle, now or in the future, is aware of the presence of salvaged airbags and can make informed decisions due to that very visible information."
Schulenburg concluded, "It is obvious that there are many entities pulling at the state level legislators in attendance at NCOIL, but we are fortunate they are willing to listen to, and act upon, reason. It is important for our industry to have a strong and unwavering voice present as decisions that impact our industry our made; a voice that represents the best interest of those who continue to pick the tools up and fix the car the right way without compromise, and I am glad that SCRS could be involved on behalf of our members in this capacity."
About SCRS: Through its direct members and 37 affiliate associations, SCRS is comprised of 6,000 collision repair businesses and 58,500 specialized professionals who work with consumers and insurance companies to repair collision-damaged vehicles. Additional information about SCRS including other news releases is available at the SCRS Web site: www.scrs.com. You can e-mail SCRS at the following address:
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