The California Autobody Association (CAA) recently applauded Gov. Arnold Schwarzenegger’s veto of S.B. 1167 (Sen. Pat Wiggins, D-Santa Rosa), an anti-steering bill, because it would have delayed the Department of Insurance from taking any action against steering. The bill, which the Collision Repair Association of California (CRA) originally co-sponsored until it was revised, would have required insurers to ask policyholders if they’ve chosen a repair shop prior to suggesting one and, due to revisions, would have also created a task force to study issues addressed by Insurance Code Section 758.5 (the anti-steering statute).
“The CAA did not support the amended version of this bill,” CAA Executive Director David McClune said. “This bill would have required the Department of Insurance (DOI) to spend two years studying the issue of steering. The DOI has had plenty of time to study this issue. If this bill had passed, it would have potentially delayed any action by the department on steering for at least two years.”
After it was vetoed, the bill was sent back to the Senate, where it’s now listed under “unfinished business.”
The CAA is part of a task force studying labor rate surveys and steering with the DOI. The department is currently working on revised regulation to address labor rate surveys.
The CAA plans to post these draft regulations on its Web site, www.calautobody.com.
