PITTSBURGH Three trade
groups are speaking out against proposed legislation in Ohio
that would relax the rules on who can buy salvage vehicles.
The United Coalition of Ohio
Auto Recyclers (UCOAR), the Ohio Auto and Truck Recyclers
Association (OATRA) and the Automotive Recyclers Association
claim that the proposed rule would weaken standards on who can
buy salvage vehicles, thus causing disruption from out-of-state
UCOAR and ARA recently attended
a hearing before the Ohio House Insurance Committee to voice
The current law allows only
licensed automobile recyclers to buy vehicles, while the bill
would open the buying up to unlicensed persons. The
associations argue that anyone could buy salvage vehicles,
doctor their vehicle identification numbers and resell them to
"This bill has the potential to
eliminate up to 2,500 jobs or more in Ohio. Now, that is a
problem," a UCOAR spokesman said. "Ohio has sound rules in
place governing the sale and disposition of badly damaged
salvage vehicles. Opening up that market to an unregulated
free-for-all scheme will only put our public safety at risk
while killing Ohio jobs."
The Ohio automobile recycling
industry would shed 20 percent of its jobs if the bill were
enacted, because unlicensed buyers would inflate selling
prices, according to OATRA.
"This legislation will cause
Ohio to lose jobs and taxable revenue," OATRA president Jim
McKinney said. "This bill would pad the pockets of salvage
auctions and insurance companies at the expense of jobs
generated by small businesses in Ohio."
The draft of the legislation
offers no details as to why it has been introduced. The Ohio
Legislative Service Commission has indicated that passage would
cause the state to lose as much as $50,000 per year in revenue,
as the need for a buyer identification card requirement and
salvage acquisition license would be eliminated.