Capping Bill Passes California Assembly - BodyShop Business

Capping Bill Passes California Assembly

The California Assembly approved the fifth revision of Senate Bill 1371 (Sen. Lou Correa, D-Santa Ana) – legislation designed to limit the insurance company practice of placing “caps,” arbitrary limits, on reimbursements for collision repairs – on Monday with a 75-0 vote.

In February, when the bill was introduced in the Senate, it stated, "No insurer shall recommend, apply, or include any arbitrary limit, cap, or threshold when adjusting labor, parts, or other material on any written automobile repair estimate."

In April, the Senate added a definition of capping to the bill. After several revisions, the Senate’s final version defined capping as “offering or paying an amount that is unrelated to an accepted industry methodology used in determining paint and materials charges.” This version was unanimously approved in April.

The bill next moved to the Assembly, where capping was finally defined in June as "offering or paying an amount that is unrelated to a methodology used in determining paint and materials charges that is accepted by automobile repair shops and insurers.” This revised version of the bill now must return to the Senate for re-approval.

To read our previous story about this bill, click HERE.

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Deadline for Busch Memorial Scholarships Approaching

Two scholarships will be awarded to students pursuing a collision career.

The ASE Education Foundation announced that the deadline to apply for the Michael Busch Memorial Scholarships is March 31. Presented by the foundation, two scholarships will be awarded for the 2024-25 academic year to students pursuing a career in the collision industry.

Qualified applicants should be graduating high school seniors or have graduated from high school or received a GED certificate. In addition, applicants should be enrolled or planning to enroll as a full-time student in a two- or four-year college or university or in an ASE-accredited post-secondary collision repair program.

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