Section 130

Section 130 Auto Body Rates Commission

(a) There shall be a special commission established pursuant to section 2A of chapter 4 of the General Laws to study auto body labor 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 of Massachusetts; 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 Automobile Dealers Association, Inc. 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 to the 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 labor workforce.

(c) The commission shall hold not fewer 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.