Feature story,  News Story,  Thomas Greco Publishing

Beating the Drum: ABAT’s 2025 Legislative Plans

Published in Texas Automotive – Thomas Greco Publishing

 

ABAT’s first priority is consumer safety, and that objective guides much of what the association focuses on each year, especially when it comes to its biennial efforts to help legislators understand how proper repairs impact their constituents’ wellbeing.

So, it comes as no surprise that ABAT leaders have already begun planning for the 89th legislative session, opening January 14, 2025. 

Although recent sessions have seen pursuit of two pieces of legislation, ABAT is taking a new approach this time around, going back to its roots to concentrate on the importance of following OEM repair procedures and addressing the safety of aftermarket parts through the Safe Auto Repair Bill.

“ABAT’s Safe Auto Repair Bill addresses many issues repairers face but mostly the need for reimbursement for following OEM procedures and the safety of aftermarket parts,” explains ABAT Executive Director Jill Tuggle, who clarifies, “This is NOT an anti-aftermarket bill; we just want these parts to be safety tested and truly be of ‘like kind and quality’ as it pertains to fit, finish, function and – above all else – crashworthiness. The bill also addresses steering, database manipulation and the insurers’ disregard of repair operations or procedures outlined in the estimating system or Procedure Pages.”

This will be ABAT’s fifth time battling the clock and insurers’ lobbyists at the Capitol. This bill was first introduced in 2017, and although the House Insurance Committee approved the amended version by a six-to-three vote, the session ended before the House voted on it. When it was reintroduced in 2019, the 86th legislative session ended before it received a second hearing; it was defeated by the clock. It stalled in the House during the 2021 session. Although HB1321 was scheduled for public hearing in April 2023 by the House Committee on Insurance, it was left pending in committee when the 88th legislative session ended that June.

“We’ve been beating the drum for safe repairs since 2017, and we’re going to keep on banging until we get the forward movement our industry desperately needs…and which Texas drivers deserve,” notes ABAT President Burl Richards. “We’re still pressing to rectify the same issues, but each session, we learn more and improve our strategies. I’m convinced that the momentum we’ve built will carry us through to the finish line in 2025!”

Richards believes that this legislation is even more relevant than it was in the past. “Insurance companies seem to be clamping down even more on paying for certain processes and procedures. We’re seeing a lot of pushback when it comes to ADAS calibrations. Insurers like to claim calibrations aren’t necessary, or if they agree it’s needed, they still disagree with the pricing paid to sublet calibrations, insisting that dealers can do it cheaper, even though dealers don’t always do it right. But carriers don’t have skin in the game when it comes to liability; their only job is to pay what’s necessary to safely repair the policyholder’s vehicle!

Tuggle is optimistic, pointing to like-minded legislation being introduced around the country as evidence that the Safe Auto Repair Bill has more than merely a fighting chance in 2025. “Burl and I have sat on multiple phone calls with other associations submitting similar legislation in their states, and I believe this is an extremely positive step. We can now demonstrate that shops are calling for safe repairs all across the nation, and I think that will work in our favor. If any of those associations enjoy a victory with their legislative efforts before the Texas session ends, that could have an even more beneficial impact on our efforts.”

Since the session hasn’t started just yet, ABAT’s current focus lies in preparing for the upcoming session. Obtaining sponsorship for the Safe Auto Repair Bill is the first priority since its former long-time sponsor Travis Clardy is no longer a state representative.

“Right now, we’re finalizing the draft and working on obtaining sponsors so we can submit the bill as soon as possible, hopefully before the legislative session opens next month,” according to ABAT Lobbyist Jacob Smith (Longleaf Consulting). “We’re also educating legislators on why this bill matters to them and their constituents. A lot of legislators remember this bill from past sessions, but we’ve got over 30 new members of the House and Senate coming in after the most recent election cycle, so we’re starting over with them to ensure they understand the importance of safe repairs for Texas drivers.”

Smith is also eager to find out who will be serving as the Speaker of the House in Texas. “Representative Dade Phelan was a champion for the automotive industry last session, and I have faith he will be speaker again, but we won’t know for sure until January. It’s likely that there will be a new chair of the House Committee on Insurance, which could definitely work in our favor.”

While ABAT will not be submitting a bill related to Right to Appraisal next session, the association believes that the movement made during the 88th legislative session made enough noise to inspire others to sponsor like-minded bills, and they hope to support any fair appraisal bills that further their cause.

“Appraisal has to be fixed in Texas,” Smith shares, expressing the belief that “it’s going to be one of the biggest issues this session on multiple fronts from multiple organizations. ABAT is taking a backseat to focus on safe repairs in 2025, but we will definitely be supporting an appraisal bill at some point.”

“ABAT will always do our utmost to protect consumer safety, whether that’s their physical safety, which we’re seeking to preserve through our Safe Auto Repair Bill, or if they need us to protect their rights,” Tuggle insists. 

“When a repair shop and the insurer cannot agree on the terms of a repair bill, it’s imperative that consumers be able to invoke the Right to Appraisal to ensure they are not being taken advantage of by greedy insurance carriers,” Richards adds.

How can ABAT members and other Texas body shops help beat the drum for the Safe Auto Repair Bill?

“Can you imagine getting paid for all OEM recommended procedures? Can you imagine using parts that all fit correctly and have been safety-tested and really are of like kind and quality?” Tuggle asks. “For too long, our industry has convinced ourselves that we don’t stand a chance against the insurance industry because they’re so much bigger than us, but our voices MATTER.

“We cannot do this without YOU,” she stresses. “We are stronger together, and we need support from each shop that is impacted by these insurer behaviors – that’s every Lone Star shop, if you’re honest with yourself! One way that shops can support ABAT’s legislative agenda in 2025 is by becoming a Political Champion with a one-time donation to help us cross the finish line this time around.” (More information is available online at abat.us/rta.)

“We’re facing a giant, but every session, we’ve gotten better and outworked them,” Smith insists. “We’ve just been beaten by the clock. To protect consumers, we need to make some noise to alert legislators to the industry’s issues so they can help. Auto body shop owners are voters and their constituents, so you can make a difference by voicing your concerns!” He encourages shops to contact their state representatives and senators, whose contact information can be found at wrm.capitol.texas.gov, to share their concerns and garner their support. 

“We need to keep educating consumers about their right to a safe repair and exactly what that means,” Richards says. “We also want to educate our legislators about this legislation and how it impacts Texas drivers, and if we can get consumers to call their legislators to help them understand why they need to support the Safe Auto Repair Bill, we can absolutely get the support we need to pass this legislation. We’re fighting a big, multi-billion dollar industry that will stop at nothing to save a buck, but we have the advantage of ‘right’ on our side. We just need to get enough people marching along and banging those bongos so that we’re heard loud and clear!”

As always, ABAT plans to make noise in some other ways as well. 

The association has scheduled some virtual meetings for the coming months, and Richards is excited to move forward with plans to distribute independent surveys to help determine the true “prevailing procedures and prices” in various Texas markets. “This is important because the results will provide information about what procedures shops are actually requesting and getting paid for. In addition to giving us information to combat insurers’ attempts at under-indemnification of our customers, it will help ABAT understand what types of education we should provide for our members in the future. It will also provide shops with evidence that they’re not the only ones, and hopefully, that will give them the confidence to continue demanding compensation for everything involved in a safe and proper repair. It’s all about educating each other and our industry.”

ABAT also looks forward to the 2025 Texas Auto Body Trade Show, scheduled September 12-13, 2025, which will be moving to a new location: the Marriott Dallas Allen Hotel and Convention Center (Allen). Stay tuned as more details become available at abat.us/tradeshow.

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