Section 78 Auto Body Labor Reimbursement Rate 1

Said chapter 175 is hereby further amended by adding the following 2 sections:-
Section 231. (a) There shall be, within the division of insurance, a permanent auto body labor reimbursement rate advisory board to address any issues related to auto body labor reimbursement rates. The advisory board shall consist of: 1 member appointed by the commissioner of insurance, who shall serve as a co-chair; 1 member appointed by the attorney general, who shall serve as a co-chair; 1 member from the auto insurance industry appointed by the Massachusetts Insurance Federation, Inc., or its successor; 1 member from the auto repair industry appointed by the Massachusetts Auto Body Association, Inc., or its successor; and 1 member appointed by the Massachusetts State Automobile Dealers Association, Inc., or its successor. No board member shall serve more than 3 consecutive 2-year terms.
(b) The advisory board shall meet not less than 1 time per year. The advisory board shall be responsible for creating, implementing and overseeing a survey not more than once every 4 years that shall be given to relevant auto body shops and insurers as determined by the advisory board. The survey shall compile data pertaining to contracted hourly labor reimbursement rates, posted hourly labor reimbursement rates and any additional information the advisory board deems relevant. The advisory board shall collect industry data including, but not limited to: (i) labor reimbursement rates in neighboring states; (ii) total labor costs and total repair costs for repairs, including the total cost of repair; (iii) inflation data; (iv) workforce data; (v) vocational school trends; (vi) automobile insurance premiums; and (vii) any additional information as requested by the advisory board. The results of the survey and the data collected shall be reviewed and analyzed by the advisory board.
(c) Not later than December 31 every fourth year, the advisory board shall file a report of its findings and conclusions, and any recommendations of the individual members of the advisory board with the clerk of the senate and house of representatives, the joint committee on financial services, the senate and house committees on ways and means and the division of insurance.
Section 232. (a) The commissioner of insurance shall, every 4 years, issue the labor reimbursement rate survey to auto body shops and insurers, as established by the auto body labor reimbursement rate advisory board established in section 231.
(b)(1) Not less than every 4 years, the commissioner of insurance shall review the findings of the survey for evidence of whether there is a reasonable degree of competition in the auto body repair market.
(2) If the commissioner, through review of the labor reimbursement rate surveys and consideration of competition concludes that a reasonable degree of competition does not exist, then the commissioner shall implement a full rate hearing, under the regulations of the division of insurance, to establish a minimum auto body labor reimbursement rate for the commonwealth or a region thereof.
(c) In addition to competition, in setting the auto body labor reimbursement rate, the commissioner shall consider: (i) the best available market data relative to auto body repairs and the resulting insurance claims; and (ii) the impact on coverage premiums, including, but not limited to, phasing in the labor rate over a period of not more than 3 years.