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Letter to the Editor
Friday December 13
Texas State Senator John Carona Briefs Collision Industry on Proposed Legislation Prohibiting Insurer-Owned Shops
Texas State Sen. John Carona (R-Dallas) briefed the automotive collision repair industry at the International Autobody Congress and Exposition (NACE) in Dallas on legislation he plans to introduce in the Texas legislature. Carona's proposed bill, to be pre-filed this month in advance of the January opening of the legislative session, would prohibit insurance companies from having an ownership interest in auto body repair facilities in Texas.In a NACE press conference, Carona said there is a need to protect the rights of consumers. Although his proposed legislation prohibits insurer-owned repair shops from locating in Texas, it does provide a grace period for insurer-owned facilities already in the state of Texas to divest.
The Automotive Service Association (ASA) sent letters to all 4,650 collision shop owners in Texas requesting they contact their state Senator and ask for his or her support of Carona's bill.
The letter, signed by shop owners from across Texas, stated, "As a small business owner I believe the rights of my customers have to be protected. Senator Carona's legislation provides this protection."
Earlier this year, the ASA board of directors approved the following related position:
ASA opposes insurance companies having a controlling ownership interest in automotive repair facilities and views such ownership as being in direct conflict with the consumers' right to choose. ASA has historically supported the consumers' absolute, unequivocal right to choose a repair facility for a collision or mechanical repair.
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