Ohio Autobody Association concerned about SB 306 provisions, asks industry to speak up to legislators

The Ohio Autobody Association (OABA) is encouraging the collision repair industry to oppose state Senate Bill 306 because of concerns regarding assignment of benefits, vehicle storage fees, and more.

The Senate passed SB 306 unanimously in March. The House Insurance Committee recommended its substitute for passage 10-1 in June.

“The Ohio Auto Body Association opposes SB 306 in its current form and believes independent collision repair businesses deserve fair and equal treatment when legislation directly affects their businesses, employees, and customers,” OABA states in an email campaign opposing the bill.

“It is imperative that every collision repair shop owner, employee, vendor, and industry supporter contact their Ohio State Representative immediately and ask them to VOTE NO on SB 306. We also strongly encourage you to contact Ohio Speaker of the House Matt Huffman and respectfully ask him not to advance SB 306 and to oppose the bill in its current form.”

The bill seeks to amend several sections of state law and to enact two sections of the Revised Code to reflect “changes to Ohio insurance laws, certain towed vehicles, and repair shop activities.”

In the OABA email, the association states it “has identified several provisions of concern for independent collision repair businesses and the consumers they serve,” including:

“Assignment of Benefits – The bill restricts assignment of benefits, which can affect a repair facility’s ability to bill and negotiate directly with an insurer on behalf of its customer.

• • “Storage and total loss claims — Provisions affecting storage charges and total loss claims may shift costs associated with delays in the claims process to independent repair facilities.
  • “Insurer access to repair facilities — Requirements involving insurer access without advance notice raise operational, workplace safety, security, and liability concerns.
  • “Legal costs and underpayments — Restrictions involving recovery of legal costs may make it more difficult for repair facilities to address legitimate insurer underpayments.
  • “Different treatment for independent shops — Dealership-owned collision centers are exempt from provisions that would apply to independent collision repair businesses performing similar repair work.”

The version of the bill approved by the Senate states, “No repair facility, or third party acting on behalf of a repair facility, shall represent, negotiate, obtain, or attempt to obtain an assignment of claims, rights, benefits, power of attorney, or proceeds from a consumer. A repair facility shall cease assessing or accruing any and all charges for any fee reasonably related to storage, regardless of how the fee is listed on a bill or list of charges, once the repair facility has been notified by the insurer, or has otherwise determined, that the vehicle has been deemed a total loss.

“A repair facility shall allow prompt access to the vehicle by the insurer for the purposes of inspection and valuation of the loss. In no case shall access be prohibited during normal business hours after the vehicle is towed or otherwise delivered to the repair facility. A violation of this section constitutes a deceptive act or practice in connection with a consumer transaction…”

Related to legal fees, the bill states that “no repair facility shall require a consumer to sign a contract requiring the consumer to pay the legal fees of the repair facility for filing any action designed to return the vehicle to the consumer.”

OABA states shop employees will also be affected if the bill is signed into law.

“SB 306 is not simply a business-owner issue. Changes affecting the financial health and operation of independent collision repair businesses can also have consequences for: jobs and job security, wages and benefits, training and advancement opportunities, investment in equipment and technology, and long-term business stability.

“That is why OABA believes it is important for both owners and employees to understand what is contained in SB 306 and how the legislation could affect their industry and livelihood.”

OABA has provided a sample letter for shop owners that it says outlines the concerns an independent collision repair business owner might consider when reviewing SB 306. It also offers resources for employees, including a sample letter, which OABA says explains how the bill could affect people working in Ohio’s collision repair industry.

“We encourage everyone in Ohio’s collision repair industry to become informed about SB 306, review the legislation, and understand how its provisions may affect independent collision repair businesses, their employees, and the consumers they serve,” the OABA email states.

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Featured image: Ohio State House in Columbus. (Credit: Ultima_Gaina/iStock)