Industry attains big victory in defeating California Senate Bill 1059 at last moment

SACRAMENTO, CA--Legislative victory was pulled from the jaws of defeat when ABPA member companies helped to sink, at the last moment, a destructive anti-industry bill in late May.

      More than a dozen and a half member companies were enlisted in the campaign to contact key state delegates, asking them to oppose SB 1059

SB 1059 would have placed certain restrictions on the use of independently produced aftermarket parts--a three year moratorium--and would have allowed the car companies a competitive advantage in the marketplace.  This destructive marketplace initiative was supported by the car companies, their dealers and some collision repair shops.
The independent aftermarket had good reason to support the campaign against passage including:

•Violates Magnuson-Moss Act by intimidating and misleading consumers into thinking that their vehicle warranties will become void if other than OEM parts are used in its repair.

•Discriminates against the aftermarket by legislating a competitive advantage for the car companies

•Enhances the OEM’s Monopoly by restricting the use of aftermarket parts and driving consumers back to the car dealers

•May prevent consumers from having a timely, good-quality repair at a competitive price

•May prevent consumers from benefiting from better warranties, better prices and availability from aftermarket parts
Despite the merits of the argument against passage of the legislation, it appeared the car had Senate committee support to make it happen.

Sottile and her staff enlisted California-based companies to campaign against the legislation and reversed a seemingly hopeless situation when it appeared from all intent that the Senate bill would be passed.

While Sottile traveled to Sacramento on behalf of the industry, she and the LKQ Corporate staff in Ft. Lauderdale, Fl., were greatly assisted with on-site coordination. Those efforts were under the direction of Jennifer Zins of Plotkins Zins & Associates, a capital-based grassroots expert in the California capital city.         

Working closely with Zins, Sottile’s staff and other Quality Parts Coalition members, ABPA member companies were kept in the loop during that period in which the hearings on the legislation were taking place and the vote was scheduled.

Over a two week period leading up to the vote, the grassroots effort increased dramatically starting with letters from California ABPA owners, managers and employees to the members of the California Senate. The first wave of opposition letters started earlier in May and the timing of the industry’s activities was critical. 

All California ABPA member companies were given instructions and legislative contact information in order to best coordinate and expedite the process of communications. 

Member companies were also asked to encourage all of their employees to participate, however, both Zins and Sottile made sure that ABPA member companies understood that all of what was taking place was completely voluntary.
Additionally, there was a petition circulated among the companies and several hundred signatures were collected asking the legislature to stop the car companies’ grab for a monopoly position on the sale of parts.

Said Sottile, “It’s ironic that the car companies--and those shops which support a parts monopoly--always gauge their legislation in terms of being consumer oriented when the throttling of competition is anything but.”

The final phase of opposition in the Senate included making opposition phone calls to members of the California Senate asking them to vote “NO” on SB 1059 and had to be triggered at exactly the right time. 

Meanwhile, copies of the letter which the Government Relations Committee wanted sent read as follows:
The Honorable (Name of Senator), California State Senate, State Capitol, Sacramento, California 95814
RE:  SB 1059 – OPPOSE
“Dear Senator:
“SB 1059 by Senator Migden will be heard before the full Senate in the coming weeks.  I am respectfully asking that you oppose this bill as it creates restrictions for consumers in automotive parts and repairs. 
“SB 1059 is an anti-consumer, anti-competition bill that restricts the use of aftermarket parts on vehicles.  
“California’s automotive aftermarket is vital to the state’s economy.  The state employs nearly one quarter million people representing roughly 1.4% of the state’s total workforce.  The automotive aftermarket has nearly 30,000 establishments and annual aftermarket sales are approximately $31 billion.
“Aftermarket parts are high quality parts offering an affordable option to the original equipment parts.  What many people do not know is that aftermarket parts are often manufactured at the same companies that manufacture car company parts and the only difference is the price.  Aftermarket parts are identical parts that come with long term or life time warranties and cost up to 50 percent less than the identical car company part.
“Please do not vote for this bill that will eliminate choice for California consumers.  SB 1059 is not necessary and is discriminatory and supported by exaggeration and false claims.
“A no vote on the bill will help preserve a robust independent automotive aftermarket industry which is vital to the state’s economy.”
Sincerely, Name and Business

There was a group of selected senators to whom the correspondence was sent, primarily because, regardless of party affiliation, they had shown a propensity for being in the corner of the consumer and they best understood the issue involved.

Among them were Senators Gloria Negrete-McLeod, Ron Calderon, Leland Yee, Lou Correa, Dean Florez, Alex Padilla and Mark Ridley-Thomas.

Reports Sottile, “This was an especially rewarding campaign.  First, our opposition thought they had it wired to put a hammer-lock on the independent parts industry with this bill.”

“Second, they had enlisted a small but vocal group of body shops to make it appear as if there were grassroots support for this type of legislation and that it was in the interest of the public, which it definitely was not. 
“Third, they had counted all of their chickens before they came home to roost and were dismissing our opposition in light of what they believed was insurmountable support for this legislation.”

Sottile, who has always been modest about her successes on behalf of the industry before legislative bodies, reports that this result gave her a great deal of satisfaction and for several reasons, not the least of which was the support she received from those ABPA member companies in the field who understood the situation and positively reacted.
Among the ABPA members who were enlisted in this campaign to defeat SB 1059 were the following companies: 
Aftersoft Network, N.A., Inc., American Condensers, Can-Am Autoparts, Inc., Collision Parts Network, Inc., Collision Parts Warehouse, Inc., CSF, Inc., Eco Automotive Distributors, Genera Corporation, Genera Distribution Center West, Golden Legion Group, Gordon Auto Parts USA Corp. and Hansen VTF.

Also, KAPA Auto Body Parts, Inc., K-Source, Inc., Leader Ft Automotive, Inc., Legend Automotive Industries, Inc., Levan Group, Macro Automotive Products, Maxzone Auto Parts Corp., Metro Distributors, Inc., Pacific Auto Co. (PAC) and Pacific Best, Inc. (Wholesale Division)

Rounding out the list were Quality Plus Automotive Parts Inc., Sabry Lee (USA), Inc., San Jose Trading Co., Inc., US Auto Parts Network, Inc., and Westin Automotive Products.