THE LEGISLATURE:

Auto body shop bill’s backer denies conflict

Assemblyman’s legislation would block competitor who plans to open near his Henderson employer

Cathleen Allison / Nevada Appeal

Mark Manendo, D-Las Vegas, shown during a February Assembly Corrections Committee hearing, works for a collision repair chain and has requested a bill to bar insurance companies from opening auto body shops in Nevada. Allstate plans to open a shop near where he works.

By David McGrath Schwartz (contact)

Tuesday, April 28, 2009 | 2 a.m.

With Ethics Commission challenged, lawmakers move to police themselves (4-26-2009)
Legislator discloses work ties, then votes (4-22-09)

Full text of Assembly Bill 297

Chris Morris

Archive of Sun politics stories

More Sun stories about politics

Carson City — When Assemblyman Mark Manendo, D-Las Vegas, returns to work at the Henderson body shop where he is the marketing director, a new competitor will be close by — that is, unless a bill he has requested is approved by the Legislature.

Assembly Bill 297 would prevent insurance companies from opening auto body shops.

Manendo has said he wants to prevent the expansion of Sterling Autobody, a repair business owned by Allstate Insurance Co. What Manendo hasn’t said — and claims he didn’t know as he has pushed for the bill’s passage — is that Sterling Autobody is close to finalizing a lease on a building less than half a mile from a store owned by his employer, the Collision Authority chain.

Manendo has said he has no conflict of interest in pushing the bill because he wouldn’t benefit any more from reduced competition in the auto body industry than any other body shop employee in the state.

“I don’t know if that’s entirely true,” said Kara Walker, a commercial real estate adviser for Grubb & Ellis Las Vegas, who has been assisting Sterling Autobody in obtaining a lease for its planned expansion.

The location Sterling is pursuing is at 941 Empire Mesa Way in Henderson, less than a half-mile from the Collision Authority shop at 700 N. Gibson Way.

“They could wave to each other from their back yards,” Walker said. “We are moments away from getting a lease done.”

Manendo’s bill would prevent the Sterling shop from opening.

John Haas, southwest regional counsel for Allstate, confirmed Sterling has been negotiating a lease at the location.

Walker said, “It wasn’t a secret that we were showing that property to (Sterling). It’s been discussed openly. Corporate executives have been out.” She thinks Manendo’s bill is “awfully coincidental.”

Manendo said that’s exactly what it was. He said he had “no idea they were looking in Henderson. I had heard they were looking in Las Vegas” and in Northern Nevada.

“That’s news to me,” he said when shown the location of the proposed Sterling Autobody shop on a map. “That’s absolute news to me.”

Julie Tousa, president of Nevada Center for Public Ethics, said the situation raises concerns. Manendo’s dual role as bill requester and employee of a body shop “gives the appearance that he’s promoting the bill to stop competitors.”

The Legislature has moved to take oversight of members’ potential conflicts of interest away from the independently appointed Nevada Commission on Ethics. Instead, legislative leaders argue, the Senate and Assembly should police themselves. Neither the Assembly nor Senate Ethics committees has met this session.

In defending his support for the bill, Manendo pointed out that other legislators have potential conflicts, from employees of the judicial system who vote on judicial matters to school teachers and firefighters.

If the concern is that Sterling would take away business from his employer, Manendo noted that Collision Authority has only a few cars a month that have Allstate coverage. “Even if this were true, it wouldn’t have much effect on business,” he said.

Haas, of Allstate, pointed out that Sterling doesn’t serve only Allstate customers. Sterling is a preferred provider for more than 30 insurance companies, he said.

Manendo said he brought the bill forward because auto body shops that are owned by insurance companies create a conflict. Allstate “punishes” customers who don’t take their cars to Sterling, he said.

Allstate denies the claim.

Allstate representatives pointed out that in 2008 only 10 percent of Allstate customers in Nevada had their cars repaired at Sterling, 30 percent used a preferred provider and 60 percent settled for a check or used another body shop.

“It’s obvious we’re telling insureds and claimants that they have the right to choose,” Haas said. “It’s clear they’re exercising that choice.”

Haas called Manendo’s bill “an effort to prevent competition in the auto repair industry by eliminating one possible competitor.”

The bill has passed the Assembly and next goes to the Senate.

Discussion: 9 comments so far…

Comments are moderated by Las Vegas Sun editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy.

By bingowaba

April 28, 2009

4:06 a.m.

Suggest removal

Three cheers for transparency! The bill reeks of potential conflicts and ethic questions. It is wise to keep a close watch on Assemblyman Mark Manendo.
By Facts_are_Facts

April 28, 2009

6:01 a.m.

Suggest removal

I personally had my vehicle repaired at Collision Authority aka Green Valley collision Center. The repairs were so bad that I took it to Franks Auto Body to get the work done by Collision Authority corrected.

Green valley collision was also instrumental in making sure that individuals that had there vehicles repaired cannot collect depreciation for the vehicle being in an accident due to no non-disclosure laws. With car fax it is now public info and the owners of vehicles involved in accidents cannot get reimbursed for thei losses due to depreciation.
By LasVegas2009

April 28, 2009

7:02 a.m.

Suggest removal

Looks like Mark Manendo is a snake! I hope this ends his political career and we don't here from him again. These people get a position and start working there own agenda. When we see these little issues arise we need to correct the behavior. He needs to resign and resign now.
By hard_working_man

April 28, 2009

11:05 a.m.

Suggest removal

All State says "Sterling is a preferred provider for more than 30 insurance companies." Name them? I live in Reno but I know Collision Authority as a part of the NV Collision Industry Association. They have four locations not just the Henderson location and Mr. Manendo does not work out of the Henderson location. I have meet Mr. Manendo while in Las Vegas for community meetings and got to know him. He does not make a lot of money doing his marketing job and has ZERO finincial interest in that company. We too have a marketing dept and that employee "if he was a legislator" would not make and more or less money with the passage of the bill so why would Manendo be any different? Sounds like All State will go to any length to kill a bill. They are the ones with a clear conflict. Maybe body shops should start selling insurance! I bet All State would freak out. I have lived in Nv all my life, we hae a citizen legislature. Legislators that are teachers vote on budgets that directly impact their own pay. Business owners "unlike Manendo" vote on bills that have a financial impact, a doctor voted against a bill that could cost him hundrends of thousands of $ if he were in a lawsuit. Someone works for the judges in Reno and votes on bills that affects his employer. Local government employees serve as legislators, do they vote on those bills? You be they do all the time. How about this newspaper goes down the line and mentiones every single legislator, county and city elected officials. Is All State paying this reporter on the side to run these stories? Seem to just target one bill and one legislator. Sounds like discrimination!
By Citizen_X

April 28, 2009

12:57 p.m.

Suggest removal

It looks to me like he is trying to prevent small business in Nevada from being taken over by massive insurance companies. By allowing an insurance company to own a body shop they will control the entire repair process. There will be no checks or balances in getting your car fixed. It's the age old saying "You can't let the fox guard the hen house." It doesn't seem that bad to me.
By bodyman

April 28, 2009

7:24 p.m.

Suggest removal

I am sure there are many great repair facilities in NV, both insuraance owned and independent. After reading this article is seems very clear to me that Allstate has been very accomidating to their insured by allowing them to have their vehicles repaired by other repair shops. They state that ten percent of their claims were repaired at Sterling in 2008, that doesn't seem to be an unusually high number to me.

It is however hard for me to belive that Mr. Manendo did not know Sterling was planing on expanding in his back yard. If it is true as he states that they would not effect his business then why should he care. If his company doesn't want to work for or with Allstate that is their choice.

To me Allstate owning a body shop is like AAA owning towtrucks. They have a responsibility to take care of their insured and if they need to provide company owned stores to do it so be it.
By Political_Perspective

April 28, 2009

8:27 p.m.

Suggest removal

Mr. Manendo is once again in another political scandal this makes the 4th one this decade. Why doesn't the Legislature have an ethics review? I don't want to see Nevada turn into Illinois.

"A long habit of not thinking a thing wrong gives it a superficial appearance of being right." (Thomas Pain)
By sam_in_reno

May 13, 2009

11:16 a.m.

Suggest removal

If an insurer owned hospital, being diagnosed and treated by an insurer employed doctor and having your treatment administered based on the cost appeals to you, indeed you are very uninformed ....

The agent takes your money, the claims department is compensated to keep it. Why would anyone want to expand the potential for a conflict of interest by allowing an insurance giant to control repair procedures with the clear goal of reducing dollar severity thru used parts, aftermarket parts and repairing components that should be replaced ? If you think for one moment your best interests are theirs you need to go online and see how the good hands have treated un-suspecting, trusting individuals....
By smartin

May 19, 2009

6:03 a.m.

Suggest removal

So he's a crook too? You locals better check his emails. He said to a reporter from this paper that he received only ONE email or call against the smoking ban. Surely, this middle aged Kansas lady wasn't the ONLY one who emailed. And what I got back was an insult. So, I'm not going to be coming to visit and shop and gamble in Vegas. And I know, for a fact, that he received numerous emails from out of state. I was hoping that Cy or the paper would get to the bottom of this lying. What he said was NOT in the best interest of Nevada. This guy is BAD news on MANY levels!!!!!!