Budget Amendment ID: FY2022-S3-5

TRP 5

Auto Body Rates Commission

Messrs. Rush, Keenan, Tarr, O'Connor and Montigny moved that the proposed new text be amended in section 3, by inserting after section 48 the following section:-

“SECTION 48A.  (a) There shall be a special commission to study auto body rates. The commission shall consist of: the chairs of the joint committee on financial services, who shall serve as co-chairs; the commissioner of insurance or a designee; 1 member of the senate appointed by the minority leader of the senate; 1 member of the house of representatives appointed by the minority leader of the house of representatives; the attorney general or a designee; 3 members from the auto insurance industry appointed by the Automobile Insurers Bureau; 3 members from the auto repairer industry appointed by the Alliance of Automotive Service Providers of Massachusetts, Inc.; 1 member appointed by the governor, who shall represent a vocational-technical school or program; and 1 member who shall be a motor vehicle dealer licensed under section 1 of chapter 93B of the General Laws appointed by the Massachusetts State Auto Dealers Association. Members of the commission shall serve without compensation.

(b) The study shall include, but not be limited to: (i) an analysis of auto body labor rates in the commonwealth, including a comparison of labor rates in surrounding states; (ii) an analysis of the impact of managed competition in the automobile insurance market on labor rates; (iii) an assessment of whether current labor rates are reasonable and, if not, an evaluation of potential methods for calculating a reasonable labor rate; (iv) the number of auto body shops in the commonwealth each year from 2008 until present, including the number of shops that have closed during that time period; and (v) an analysis of the impact of labor rates on the auto body shop workforce.

(c) The commission shall hold not less than 2 public hearings in geographically diverse areas of the commonwealth and file a report of its findings, including any legislative or regulatory recommendations, with the clerks of the senate and house of representatives, the joint committee on financial services and the senate and house committees on ways and means not later than December 31, 2021.”.