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Advisory Commission on Auto Body Rates

SECTION 108.   There shall be a special commission to study auto body rates. The commission shall study existing practices in setting rates, and investigate the benefits and costs associated with developing a rate setting system, including but not limited to, establishing a tiered rating system for auto body shops, an average national hourly compensation rate, and use of a cost of labor multiplier for the commonwealth utilizing data provided by the Bureau of Statistics for the U.S. Department of Labor. The commission shall also report on the number of auto body shops in the commonwealth from 2000 until present, including the number of shops that have closed during that time period.

The commission shall consist of the following 11 members: the director of consumer affairs and business regulation, or a designee, who shall chair the commission, 2 members of the senate, 1 of whom shall be the senate chair of the joint committee on financial services and 1 of whom shall be appointed by the senate minority leader, 2 members of the house of representatives, 1 of whom shall be the house chair of the joint committee on financial services and 1 of whom shall be appointed by the house minority leader, 3 members from the auto insurance industry to be appointed by the Automobile Insurers Bureau, 2 members from the auto repairer industry appointed by the state affiliate of the Alliance of Automotive Service Providers, and one member whom shall be a motor vehicle dealer as pursuant to section 1 of chapter 93B of the General Laws to be appointed by the Massachusetts State Auto Dealers Association. All members of the commission shall serve on a voluntary, unpaid basis.

The commission shall hold at least 2 public hearings and file a report of the results of its study including any legislative or regulatory recommendations with the clerks of the senate and house of representatives who shall forward the same to the joint committee on financial services and the senate and house committees on ways and means not later than December 31, 2008.