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 buyers.
UCOAR and ARA recently attended a hearing before the Ohio House Insurance Committee to voice their opposition.
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 unsuspecting buyers.
"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.