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Letter to the Editor
Tuesday March 14
U.S. District Court Finds Texas Insurer-Owned Repair Shop Law Constitutional
The U.S. District Court, Northern District of Texas, has issued a long-awaited opinion on the Texas insurer-owned shop law. The Automotive Service Association (ASA) had supported the legislation - H.B. 1131 - in the Texas legislature, which put a halt to insurer-owned shops in the state of Texas. Texas State Senator John Carona had first broached the issue publicly at an International Autobody Congress and Exposition (NACE) press conference in Dallas.After the legislation became law, Allstate challenged H.B. 1131 in court. In Allstate Insurance Co. and Sterling Collision Centers Inc. v. Greg Abbott, Attorney General; Carol Strayhorn, Comptroller of Public Accounts; the court concluded that "H.B. 1131 does not violate the dormant Commerce Clause and is constitutional, with the exception of the speech restrictions," according to Judge Ed Kinkeade.
Bob Redding, ASA Washington, D.C., representative, said, "We are very pleased with the ruling. This new law in Texas demonstrates what collision shop owners can do when they join together with a common message under a single banner. Texas repairers should be very proud and look to how they can continue to improve the collision repair industry. This decision will have ramifications in the collision industry throughout the United States. Many state collision leaders were watching this decision to determine if similar legislation would be introduced in their states."
To review the decision, go to www.TakingTheHill.com, ASA's legislative Web site.
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