January 14, 2022
The Honorable Senator Neil D. Breslin
The Honorable Senator Brooks
New York State Senate
Chairman of Senate Insurance Committee
172 State Street, Capital Building
Albany, NY 12247
MEMORANDUM IN OPPOSITION BILL: SB 6028
Dear Senator, Breslin:
The subject Bill will make pre-insurance fraud prevention vehicle inspections, as stipulated in Regulation 79, optional, or allow for inspections to be deferred. Bill S.6028 allows insures to dispense with or defer inspections of private passenger automobiles.
We are writing to you regarding Bill S.6028 that has been recently introduced in the New York State Senate, and pending in the Senate Insurance Committee. Bill S.6028 will make vehicle inspections, as stipulated in Regulation 79, optional, or allow for inspections to be waived, that will have an adverse impact on the members of LIGRA, their families and employees located on Long Island and throughout New York City. This Bill will also impair the ability of law enforcement to control auto theft and crime. Due to these points, we are firmly opposed to the Bill.
The 500-plus members of LIGRA primarily consist of small gas stations and related repair facilities. In
order for our members to remain viable, they must attract new customers, but in today’s economic
environment this creates a challenge since our margins are shrinking at just the time when we need new
revenue. For our members the inspection process enables us to attract new customers and protect both
our current jobs and create new ones. The inspection process is also critical to maintaining the health of
our facilities and providing jobs in our community.
Aside from the direct benefit to our members in customer traffic, the Regulation also has lead to a
decrease in automobile theft and crime. Regulation 79 requires the physical inspection of approximately
8 percent of the vehicles in New York State and after Regulation 79 became law in 1978 this inspection
process resulted in automobile theft in New York State declining by 7 percent while, simultaneously, the
automobile theft rate in New Jersey, Pennsylvania and Connecticut increased by 36 percent, 16 percent,
and 18 percent respectively.
If this Bill is enacted, they will remove a critically important crime fighting tool and will create an
environment in New York State that is conducive to automobile crime and returns us to the pre-enactment situation. As this occurs, there will be a commensurate increase in adverse insurance losses, which will drive up insurance premiums. On behalf of our members, and in the interest of protecting jobs while keeping a lid on automobile crime, we wish to reiterate our firm opposition.