Michigan HB 4778 Referred to House Insurance Committee

The Michigan Commerce Committee met this morning at 9 a.m. and referred a bill that could affect the auto glass industry to the insurance committee, who will soon schedule a public hearing. The bill, House Bill 4778, which was sponsored by Rep. Barbara Farrah, is intended to prohibit insurance companies from having ownership interests in certain motor vehicle repair facilities. The bill also would require motor vehicle repair facilities that already have such ownership interests in repair facilities to post a notice at in the repair facility stating:

"This repair facility is owned in whole or in part by [insert name of insurer]. You are hereby notified that you are entitled to seek repairs at a repair facility of your choice."

The bill also would require repair facilities to notify the vehicle owner of these rights verbally and in writing.

"It was referred to the commerce committee initially," says Libby McGaughey, a representative from Farrah's office. "What happened today is it was re-referred to the insurance committee, where it makes sense for it to go, and Rep. Farrah sits on that committee as well."

She adds, "There will be hearing in the insurance committee, but that date has not been set yet."

CLICK HERE for the full text of the bill.

Need more info and analysis about the issues?
CLICK HERE to subscribe to AGRR magazine.