Bill H.2077

HOUSE DOCKET, NO. 2034 FILED ON: 1/20/2011

HOUSE . . . . . . . . . . . . . . . No. 2077

By Ms. Spiliotis of Peabody, a petition (accompanied by bill, House, No. 2077) of Joyce A. Spiliotis and James J. Dwyer for legislation to prohibit insurance companies from designating motor vehicle glass repair shops and require the registration of said shops. Financial Services.

The Commonwealth of Massachusetts

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In the Year Two Thousand Eleven

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An Act relative to motor vehicle glass repair shop registration.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Chapter 100A of the General Laws is hereby amended by striking out section 1, as appearing in the 2008 Official Edition, and inserting in place thereof the following section:-

Section 1. As used in this chapter the following words shall, unless the context clearly requires otherwise, have the following meanings:

“Deputy director”, the deputy director of standards in the office of consumer affairs and business regulation.

“Registered motor vehicle repair shop”, a motor vehicle repair shop which has a current valid certificate of registration for motor vehicle repair issued hereunder.

“Registered motor vehicle glass repair shop”, a motor vehicle glass repair shop which has a current valid certificate of registration for motor vehicle glass repair issued hereunder.

“Motor vehicle repair”, the business or act of repairing damaged motor vehicles in the commonwealth for compensation, excluding motor vehicle glass repair.

“Motor vehicle glass repair”, the business or act of repairing or replacing damaged or undamaged glass in motor vehicles in the commonwealth for compensation.

“Motor vehicle repair shop”, a person or entity which, for compensation, or with the intention or expectation of receiving the same, repairs or undertakes to repair in the commonwealth a damaged motor vehicle as defined in section 34A of chapter 90, excluding motor vehicle glass repair.

“Motor vehicle glass repair shop”, a person or entity which, for compensation, or with the intention or expectation of receiving the same, repairs or replaces or undertakes to repair or replace motor vehicle glass in the commonwealth.

“Person”, an individual, association, partnership or corporation, and the officers, directors and employees of a corporation.

“Unregistered motor vehicle repair shop”, a motor vehicle repair shop that does not have a current valid certificate of registration issued hereunder, which has had its registration revoked or suspended, or which has surrendered its certificate of registration hereunder.

“Unregistered motor vehicle glass repair shop”, a motor vehicle glass repair shop that does not have a current valid certificate of registration issued hereunder, which has had its registration revoked or suspended, or which has surrendered its certificate of registration hereunder.

SECTION 2. Section 2 of said chapter 100A, as so appearing, is hereby amended by inserting after the words “motor vehicle repair”, in line 1, the following words:- or motor vehicle glass repair.

SECTION 3. Said section 2 of said chapter 100A, as so appearing, is hereby further amended by inserting after the words “motor vehicle repair shop”, in lines 2 and 3, in each instance, the following words:- or motor vehicle glass repair shop.

SECTION 4. Said section 2 of said chapter 100A, as so appearing, is hereby further amended by inserting after the words “registered motor vehicle repair shop”, in lines 14 and 15, 21, 23 and 24, 30 and 31 and 33, in each instance, the following words:- or registered motor vehicle glass repair shop.

SECTION 5. Section 3 of said chapter 100A, as so appearing, is hereby amended by inserting after the words “motor vehicle repair”, in line 14, the following words:- or motor vehicle glass repair.

SECTION 6. Said section 3 of said chapter 100A, as so appearing, is hereby further amended by inserting after the words “registered motor vehicle repair shop”, in lines 17, 19 and 20 and 22 and 23, in each instance, the following words:- or registered or previously registered motor vehicle glass repair shop.

SECTION 7. Section 4 of said chapter 100A, as so appearing, is hereby amended by inserting after the word “control”, in line 8, the following words:- and a registered motor vehicle glass repair shop may employ unregistered individuals to repair or replace motor vehicle glass under the registrant’s immediate direction and control.

SECTION 8. Section 6 of said chapter 100A, as so appearing, is hereby amended by inserting after the words “motor vehicle repair shops”, in line 4, the following words:- and motor vehicle glass repair shops.

SECTION 9. Section 7 of said chapter 100A, as so appearing, is hereby amended by inserting after the words “registered motor vehicle repair shop”, in line 1, the following words:- and registered motor vehicle glass repair shop.

SECTION 10. Said section 7 of said chapter 100A, as so appearing, is hereby further amended by inserting after the words “unregistered motor vehicle repair shop”, in line 3, the following words:- or unregistered motor vehicle glass repair shop.

SECTION 11. Said section 7 of said chapter 100A, as so appearing, is hereby further amended by inserting after the words “registered motor vehicle repair shop”, in line 6, the following words:- or a registered motor vehicle glass repair shop unless so registered.

SECTION 12. Section 8 of said chapter 100A, as so appearing, is hereby amended by inserting after the words “registered motor vehicle repair shop”, in line 1, the following words:- or registered motor vehicle glass repair shop.

SECTION 13. Said section 8 of said chapter 100A, as so appearing, is hereby further amended by inserting after the words “motor vehicle repair”, in line 2, the following words:- or motor vehicle glass repair.

SECTION 14. Section 9 of said chapter 100A, as so appearing, is hereby amended by inserting after the words “registered motor vehicle repair shop”, in line 1, the following words:- and registered motor vehicle glass repair shop.

SECTION 15. Said section 9 said chapter 100A, as so appearing, is hereby further amended by adding following subsection:-

(d) A registered motor vehicle glass repair shop shall maintain records for each motor vehicle upon which motor vehicle glass repair services have been performed, showing the usage of all glass parts, major accessory parts including moldings and major hardware component parts and the adhesive system used in the motor vehicle glass repair, including the brand, product number or name and lot and batch numbers for the adhesive system product used. Records shall be maintained for 18 months or as long as a warranty on the motor vehicle glass repair service performed is in effect, whichever is longer.

SECTION 16. Said chapter 100A is hereby further amended by adding the following 4 sections:-

Section 11. A person applying for registration or renewal as a registered motor vehicle glass repair shop in the commonwealth shall meet the following requirements:

(a) a registered motor vehicle glass repair shop shall maintain a physical place of business within the commonwealth at which it has indoor facilities to perform motor vehicle glass repair services or from which it may lawfully dispatch mobile service vans;

(b) a registered motor vehicle glass repair shop mobile service van shall be a commercial vehicle properly registered and insured in the commonwealth;

(c) a registered motor vehicle glass repair shop shall possess and maintain in working order the equipment necessary to provide motor vehicle windshield glass stone chip repair;

(d) a registered motor vehicle glass repair shop that provides motor vehicle glass replacement services shall possess and maintain the equipment necessary to perform motor vehicle glass replacement services;

(e) a motor vehicle glass repair shop shall obtain all required local, state and federal licenses and permits including a state sales tax identification number and a federal tax identification number; and

(f) a registered motor vehicle glass repair shop shall not subcontract or sublet motor vehicle glass repair services to another person or entity not in its employ, unless such person or entity is also a duly registered motor vehicle glass repair shop.

Section 12. (a) Upon request, a registered motor vehicle glass repair shop shall disclose to the consumer all information relating to the charges for repair or replacement services, including the amount of the charges, the identification and line item charges for the parts provided and verification of parts used, regardless of whether the amount is paid by the consumer or billed to the insurance company thereof.

(b) A motor vehicle glass repair shop shall advise the consumer of post-repair practices that may be necessary to insure safe operation of the consumer’s vehicle.

Section 13. The division of standards shall have the right to inspect the premises of an applicant for a motor vehicle glass repair shop registration or of a registered motor vehicle glass repair shop for the purpose of ascertaining compliance with the requirements of this chapter. Failure to comply with any of the requirements shall result in denial of an application or, if already registered, the suspension of a motor vehicle glass shop registration until such time as the division re-inspects the facility and determines the shop is in compliance.

Section 14. Any motor vehicle glass repair to be performed in the commonwealth shall be performed by a registered motor vehicle glass repair shop. A person, including an insurer, insurance agent, third-party administrator or a motor vehicle service establishment or other party receiving a report of, or an inquiry regarding, motor vehicle glass damage or a request for motor vehicle glass repair services shall inform the person making such report or inquiry that, under Massachusetts law, such motor vehicle glass repair must be performed by a motor vehicle glass repair shop registered in accordance with Massachusetts law.

SECTION 17. Chapter 175 of the General Laws is hereby amended inserting after section 113W the following section:-

Section 113X. (a) This section shall apply to any motor vehicle glass repair or replacement which is to be performed in the commonwealth and which is covered in whole or in part by motor vehicle liability insurance.

(b) An insurer, insurance producer, adjuster or third party administrator for such insurer shall not:

(i) require a person to use a particular registered motor vehicle glass repair shop for such motor vehicle glass repair or replacement;

(ii) use or employ unfair or deceptive acts or practices for the purpose of inducing a person to use a particular registered motor vehicle glass repair shop to provide motor vehicle glass repair services, including, but not limited to, engaging in an act or practice designed to intimidate, threaten or coerce a person to use, or for having used, a particular registered motor vehicle glass repair shop; or

(iii) negotiate with a motor vehicle glass repair shop to provide motor vehicle glass repair if such shop is not a duly registered and licensed repair shop in the commonwealth.

(c) If an insured selects a particular registered motor vehicle glass repair shop to provide motor vehicle glass repair services, no appraiser or employee of an independent appraisal company, no insurance company or employee thereof and no representative or third party biller shall require that such motor vehicle glass repair be made at a different registered motor vehicle glass repair shop.

(d) Once a registered motor vehicle glass repair shop has been selected to provide motor vehicle glass repair services, an insurer or third party biller shall not assign or dispatch the repair work or forward a related policy or policyholder’s contact or repair scheduling information to a different registered motor vehicle glass repair shop without the knowledge and consent of the insured.

(e) An insured may at any point in time elect to change their choice of registered motor vehicle glass repair shop.

(f) An insurer may, either directly or through its producers, adjusters or third party administrator, provide directly or through other means, including electronic transmissions, information to assist in selecting a motor vehicle glass repair shop or scheduling such motor vehicle glass repair shop to perform motor vehicle glass repair.

(g) Whenever it appears to the commissioner that an insurance company, producer, third party biller or adjuster for such insurance company has violated this section the commissioner may, after providing notice and an opportunity to be heard, order that the violator pay a civil assessment of not less than $1,000 nor more than $5,000 for each violation. The fine shall be collected by the division of insurance and deposited in a retained revenue account to be used by the division to carry out the enforcement of this section.

SECTION 18. Section 3 of chapter 176D of the General Laws is hereby amended by striking out subsection (12), as so appearing, and inserting in place thereof the following subsection:-

(12) Any violation of sections 2B, 95, 113X, 181 to 183, inclusive, 187B to 187D, inclusive, 189, 193E or 193K of chapter 175.

SECTION 19. Notwithstanding any general or special law to the contrary, a registered motor vehicle repair shop, as defined in section 1 of chapter 100A of the General Laws, performing motor vehicle glass repair on the effective date of this act shall not be required to register as a motor vehicle glass repair shop until its motor vehicle repair shop registration in effect on said effect date has expired.

SECTION 20. Notwithstanding any general or special law to the contrary, a registered motor vehicle repair shop, as defined in section 1 of chapter 100A of the General Laws, performing motor vehicle glass repair on the effective date of this act shall not be required to register with the division of standards as both a registered motor vehicle repair shop and a registered motor vehicle glass repair shop.

SECTION 21. The commissioner of the division of insurance shall adopt rules and regulations for the administration and enforcement of section 113X of chapter 175 of the General Laws.

Name:	District/Address:	Date Added:
Joyce A. Spiliotis	12th Essex	1/20/2011
James J. Dwyer	30th Middlesex	2/3/2011