Current Issues

Date: November 27, 2018

As a service to AASA, HDMA, MERA and OESA members, MEMA contracts with iStateLink to provide timely updates on key issues affecting parts suppliers on the state level. For brief summaries of state activity, see below. For more in-depth information, including bill text and legislative outlook, please click here. If you need the password for iStateLink, please contact Catherine Boland.

Emissions/Climate Change


Sponsor: Senator Cristina Castro (D)

Summary: This measure shall establish the Volkswagen Settlement Task Force. The Task Force will consist of 10 members to be appointed by the Governor, with the advice and consent of the Senate, the members must be appointed within 30 days after the effective date of this amendatory Act of the 100th General Assembly. The members shall include:

(A) the Director of the Agency, or his or her designee, who shall serve as chairperson of the Task Force;
(B) one representative of the Department of Transportation;
(C) one representative of the Department of Public Health
(D) one representative of a statewide association representing school superintendents;
(E) one representative of the Chicago Transit Authority;
(F) one representative of an electric utility that serves more than 3,000,000 retail customers in the State;
(G) one representative from a non-profit organization with a focus on respiratory health;
(H) one representative from a non-profit organization with a focus on environmental justice;
(I) one representative from a non-profit organization focused on clean transportation; and
(J) one representative from a statewide environmental non-profit organization.

Task Force members shall serve without compensation, but may be reimbursed for reasonable and necessary expenses incurred in performing duties associated with the Task Force. The Task Force shall conduct at least 6 public listening sessions statewide to gather public input on priorities for use of the funds received by the State from the State Trust Agreement.

Based on recommendations from the Task Force, public listening sessions, and the need for the State to meet air pollution standards, the Agency shall develop and publish a draft State plan outlining how it will spend allocated funds from the State Trust Agreement for beneficial projects in the State that mitigate the excess emissions of nitrogen oxides from Volkswagen diesel vehicles. The State plan shall include, but not be limited to, overall goals for the use of the funds, eligible mitigation activities to meet the stated goals, spending allocation levels, expected emissions reduction benefits, the process for public input, and the other factors set out in the State Trust Agreement.

After publishing the draft State plan the Agency shall publicly announce on its website, through the news media, and to all who have signed up for email updates under this Section, a 90-day public comment period during which the Agency shall accept written comments on the draft. During the 90-day public comment period the Agency shall conduct 6 public stakeholder hearings statewide to seek public comment on the draft State plan, including which eligible mitigation activities should be included in the State plan, the relative percentages of available funds to allocate to each category of activity, and geographic priority areas for emissions reductions.

The Agency shall develop a list of stakeholder groups to notify of the public listening sessions, including, but not limited to, regional planning organizations, regional transit authority, transportation organizations, schools, shuttle and transit bus operators. After receiving and considering the recommendations of the Task Force, reactions from written submissions, and the 6 public hearings under this Section, the Agency shall prepare and publish a final State plan.

Status: Introduced 2/15/2018. Referred to Senate Environment and Conservation Committee 2/27/2018. Hearing canceled 3/15/2018. Hearing held; passed committee 4/12/2018. Amendment #1 filed 4/20/2018. Amendment #1 referred to Senate Environment and Conservation Committee 4/23/2018. Hearing held; amendment adopted; passed Senate 4/26/2018. Referred to House Environment Committee 5/7/2018. Amendment #2 Filed; referred to House Rules Committee 5/11/2018. Hearing held 5/15/2018. Hearing held 5/24/2018.  Hearing Scheduled 11/27/2018.

Outlook: This measure will be heard November 27. The hearing will be open to the public and testimony will be accepted at the discretion of the Chair. A vote may occur at the discretion of the Chair.

At the May 24 hearing, no action was taken on this measure.

A second amendment was filed on this measure. The amendment adds a member to the Volkswagen Settlement Environment Beneficiary Mitigation Plan Task Force appointed by a combination utility that provides electric service to at least 1,000,000 retail customers and gas service to at least 500,000 retail customers in Illinois, as well as a member appointed by an organization representing trucks. The amendment also removes a member appointed by an electric utility that serves fewer than 3,000,000 retail customers from the task force.

This measure was referred to the House Environment Committee, chaired by Representative Carol Sente (D). The sponsor does not serve on the committee of referral. An amendment has been filed on this measure. The amendment text is not yet available. The measure awaits further consideration before the committee, and a timeline for consideration has not yet been established.

At the April 26 hearing, the amendment was adopted by a 5-2 vote, then passed the Senate by a 31-21 vote. The measure awaits further consideration in the House.

Warranties/Service Contracts

OHIO H.B. 632

Sponsor: Representative George Lang (R)

Summary: This bill provides that "motor vehicle ancillary product protection contract" means a contract or agreement that is effective for a specified duration and paid for by means other than the purchase of a motor vehicle, or its parts or equipment, to perform any one or more repair or replacement of tires or wheels damaged because of a road hazard and replacement of a lost, stolen, or inoperable key or key fob. 

A motor vehicle ancillary product protection contract may, but is not required to, provide for incidental payment of indemnity under limited circumstances, including, without limitation, towing, rental, and emergency road services. 

"Motor vehicle service contract" means a contract or agreement to perform or pay for the repair, replacement, or maintenance of a motor vehicle due to defect in materials or workmanship, normal wear and tear, mechanical or electrical breakdown, or failure of parts or equipment of a motor vehicle, with or without additional provisions for incidental payment of indemnity under limited circumstances, including, without limitation, towing, rental, and emergency road services, that is effective for a specified duration and paid for by means other than the purchase of a motor vehicle. 

 "Road hazard" means a condition that may cause damage or wear and tear to a tire or wheel on a public or private roadway, roadside, driveway, or parking lot or garage, including potholes, nails, glass, road debris, and curbs. "Road hazard" does not include fire, theft, vandalism or malicious mischief, or other perils normally covered by automobile physical damage insurance. 

 The contracts identified in divisions (A)(3)(c)(i) to (v) of this section are not insurance and are not subject to any provision of the insurance laws of this state unless expressly made so.

 A contract or agreement described in division (A)(3) (a)(iv) of this section in which the provider is a tire manufacturer shall be exempt from the requirements of division (B) of this section if the contract or agreement conspicuously states all of the following:

(1) That the contract or agreement is not an insurance contract;
(2) That any covered obligations or claims under the contract or agreement are the responsibility of the provider;
(3) The name, address, and telephone number of any administrator responsible for the administration of the contract or agreement, the provider obligated to perform under the contract or agreement, and the contract seller;
(4) The procedure for making a claim under the contract or agreement, including a toll-free telephone number for claims service and a procedure for obtaining emergency repairs or replacements performed outside normal business hours.

Status: Introduced 5/3/2018. Referred to House Transportation and Public Safety Committee 5/15/2018. Hearing held 6/6/2018.  Hearing Scheduled 11/28/2018.

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