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Letter to the Editor

California State Senate Passes SB1648 Against Insurer Ownership of Shops

Senate Bill 1648 successfully passed on the California senate floor on May 28 by a vote of 28 to 7, with support from both Democrats and Republicans. The bill will now go to the State Assembly Insurance Committee for a vote and if passed, will go to the State Assembly floor for final vote before going to the Governor for signature.

The California Autobody Association (CAA), who brought the bill to Senator Jackie Speier to sponsor, is extremely excited about the bill passing in the Senate. "We feel that the passing of this bill, which will make it illegal for insurance companies to own body shops in California, is in the best interest of the consumer," states CAA President Yumi Vaught.

The CAA's position is that if insurance companies are allowed to own shops, it will lead to anti-trust violations, limit the consumer's choices, and create unfair competition.

"This bill still has a long way to go," says David McClune, CAA Executive Director. "It still has to pass the Assembly Insurance Committee and go to the Assembly floor for a vote. Our CAA members and other supporters have worked very hard in communicating our issues to the Senate members but we can't stop now. We still need everyone in support of SB1648 to contact their assembly member and ask them to support the bill."

The California Autobody Association (CAA) is a not-for-profit organization comprised of approximately 800 collision repair businesses and associated professionals belonging to the collision repair industry.

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