“The reduction in legislative activity during 2010 was an encouraging sign,” said Passmore. “We are hopeful that the trend will continue in 2011.”

Passmore expects that aftermarket parts, steering, labor rates and estimating practices will remain on the front burner next year, although he is hopeful that repairers and insurers are moving closer together on at least some issues. "One of the things I said at NACE was that I was hopeful there was some additional rapprochement in the industry," Passmore says.

According to the Automotive Service Association, the number of collision related bills the association tracked nationwide was 1,345 in 2010, down a bit from the 1,608 bills being tracked in 2009. However, the number of state collision regulations tracked was up in 2010, rising from 571 to 704.

Part of that decrease in activity could probably be attributed to the fact that state legislatures have been preoccupied with budget issues (the majority of states are facing drastic shortfalls), as well as the recent election cycle.

Many state legislators also may have delayed introducing new insurance-related bills because of the uncertainty surrounding financial services reform in the U.S. Congress, which may eventually establish federal (rather than state) oversight of insurance. "If I'm a state legislator interested in insurance issues, I'm watching what's going on in Congress," says Bob Redding, Washington representative for the ASA.

And collision organizations are beginning to take other approaches beyond introducing or supporting specific bills. "Collision groups haven't given up on the idea of legislation by any means, but I think there are approaches that are being taken to look at alternative ways of doing things," says Aaron Schulenburg, executive director of the Society of Collision Repair Specialists. "They may be looking at different regulatory approaches that don’t necessarily require the passing of a bill."

As an example, Schulenburg cites in Maryland, the Washington Metropolitan Auto Body Association (WMABA) helped pass legislation that added an exclusion to the salvage threshold law for cosmetic damage, as well as the cost of towing and storage. WMABA didn't introduce that legislation, but worked behind the scenes to influence its content.

The Houston Auto Body Association also successfully had insurance company surveys released to the public by working through the Department of Insurance and attorney general's office. "That's a great example of something that could have a positive impact on a variety of states, because it demonstrated a process that was well thought out and avoided some of the costs and pitfalls of legislation," Schulenburg says. "Legislation can be difficult, because all it takes is one word to change the intent and meaning of a bill."

Redding notes that airbags and refinishing issues, along with salvage operations, saw a lot of legislative activity this year. Gov. Arnold Schwarzenegger vetoed an airbag fraud bill in California, while Rhode Island's governor signed another such bill into law in September.

Legislative landscape is shifting
The November elections will have a big impact on legislative activities next year. More than half the states now have new governors, and many of these states have switched from Democratic to Republican control in the statehouse or the legislature, or vice versa.

"At the end of the day you want to make sure when you introduce new language, you introduce it in front of a sympathetic ear," Schulenburg says. "So I think that both the economic factor and, more importantly, the election factor played a significant role in the decision [of many associations] to sit back this year. I don't think that's an indication that the industry is just complacent or satisfied; I think a lot of it is strategic."

Looking forward, Redding says repairer associations should be watching how insurance reform plays out at the federal level now that the House of Representatives is firmly in Republican hands, and with some key legislators not returning in the next session. The Motor Vehicle Safety Act, which would give the National Highway Traffic Safety Administration more regulatory muscle, also will likely get pushed into the next Congress.

"However, don't anticipate much happening in the next two years at the federal level, because we're going to have another highly contentious election year in 2012," Redding says. "We'll have increased gridlock. We only have about 15 months of potential activity before the system gets bogged down again in the summer of 2012."

Passmore says he expects aftermarket parts to remain a hot legislative topic next year, and NCOIL is expected to vote on its proposed model parts bill in November. "We support the availability of an alternative market for replacement parts because it benefits consumers," Passmore says. "We're not endorsing one part over another, but we feel strongly that there should be an alternative and that the laws should not unnecessarily impede competition from taking place."