The Auto Glass Safety Council (AGSC) continued advocating for California auto glass shops during the recent Assembly Judiciary Committee hearing on the proposed California Motor Vehicle Glass Act. The committee voted the bill out of the committee and on to the next phase of the legislative process.
AGSC president and California resident Jacques Navant traveled to the California Capitol Building on the morning of June 9 to testify about how certain provisions in SB 988 would hurt small auto glass repair and replacement companies.
Jacques Navant arrived at the California Capitol early on the morning of June 9.“AGSC has been doing everything possible to advocate for the industry and educate state legislators, including writing a letter to Governor Gavin Newsom,” says Navant. “We wanted to testify today, or at least be present at the hearing, to [continue to] give it all we’ve got.”
SB 988 is based on the National Council of Insurance Legislators (NCOIL) model Motor Vehicle Glass Act and includes a provision requiring auto glass shops to get a claim number from a customer before officially accepting a job.
“Many small or independent shops report that customers can’t always get claim numbers promptly, and those kinds of delays can prevent local businesses from serving customers quickly,” Navant said. “Larger, vertically integrated companies gain an advantage.”
Navant testified that the claim number requirement doesn’t provide any safety, calibration quality or consumer protection benefits.
The bill includes language allowing insurers and third-party administrators to “recommend” shops to consumers. Navant testified that this functionally allows insurers and TPAs to steer customers.
“A consumer’s freedom to choose a repair facility should be real, not theoretical,” he said. “No insurer or TPA should be able to steer customers to a preferred provider.”
Navant told the committee that AGSC supports anti-fraud and disclosure requirements, but they must apply to all parties.
“Insurers, TPAs and affiliated glass companies should disclose business relationships and financial arrangements that may influence referrals or recommendations,” he said.
AGSC also backs the Advanced Driver Assistance Systems (ADAS) stipulations in the bill.
“[The Council] strongly supports the ADAS safety, calibration, documentation and anti-fraud provisions of SB 988,” Navant told the committee. “We are simply asking for two targeted amendments that remove anti-competitive barriers, preserve genuine consumer choice and ensure a level playing field for California’s independent auto glass businesses while maintaining every important safety protection in the bill.”
Jacques Navant was among the first to offer testimony about SB 988 during the Assembly Judiciary Committee hearing.Several other members of the auto glass industry testified, including AGSC-registered member company Apex Auto Glass and Tinting.
Committee members and Senator Grayson, the bill’s sponsor, expressed confusion about the opposing statements, saying that “Safelite and Safelite Solutions aren’t the same company” and that “there’s already anti-steering laws on the books.” AGSC aims to clear up this “confusion” in the days ahead.
Representatives from Safelite and the National Insurance Crime Bureau, which is a group of insurer lobbyists, testified in favor of the bill.
The Judiciary Committee voted to pass the bill out of the committee. It will now return to the Assembly floor for another reading. AGSC will continue its efforts to combat the anti-competitive provisions of bill.