July 1, 2009

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11160 Sun Center Dr.
Rancho Cordova, CA 95670
Phone: (916) 635-9774
(800) 332-2292
Fax: (916) 635-9995
Email: programs@cawa.org

SACRAMENTO, California - June 29, 2009 -  The California/Nevada/Arizona Automotive Wholesalers' Association (CAWA), and the Automotive Aftermarket Industry Association (AAIA) announced today that SB 346 (Kehoe) has stalled in the Legislature and becomes a 2-year bill, meaning no further action will be taken on the bill this legislative session.

SB 346 was introduced into the California Legislature by Senator Kehoe (D-San Diego) in early 2009.  The bill, sponsored by Sustainable Conservation (SusCon) sought to limit copper content in brake pads to .5% by 2021 and then to .05% by 2032.  In addition, the bill required at least a $1.00 fee on each axle pad set sold which would be collected by retailers and installers with no guarantee that the fee would not increase.  Lastly the bill sought to impose penalties for non compliance upwards of $10,000 per violation.

This announcement comes on the heels of CAWA and AAIA's recent change of position from "support if amended" to "oppose".  Upon communicating this change of position to the bill’s sponsor, CAWA learned that the bill would be held over, essentially dead for this legislative session and will be eligible for reconsideration next year.

"We believe the CAWA Board's opposition was instrumental in SusCon shelving the bill for this year. CAWA's legislative team has been working closely with SusCon for over a year trying to work out some objections we had to the bill including unrealistic and unsustainable timelines; refusal to cap the fee at $1.00; and CAWA's concern over the point of fee collection at the retailer and installer level," stated Rodney Pierini, CAWA President & CEO.

"Because we were unable to work out these major concerns and we could see no path toward resolution, the CAWA Board recently changed their position from "support if amended" to "oppose" as we could no longer support the bill as drafted."

Founded in 1955, CAWA is a nonprofit trade organization representing automotive jobbers, warehouse distributors, retailers, manufacturers and manufacturer's representatives in California, Nevada and Arizona.  CAWA's mission is to provide communications, education, legislative and regulatory advocacy and group purchasing of services for its members while promoting the automotive aftermarket industry.

For additional information about CAWA and for the latest industry news, go to www.cawa.org.

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