Chapter 201

2005 -- H 6248 SUBSTITUTE A AS AMENDED

Enacted 07/08/05

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS -- AUTOMOBILE BODY REPAIR

SHOPS

Introduced By: Representatives Moura, Long, McCauley, and Schadone

Date Introduced: March 17, 2005

It is enacted by the General Assembly as follows:

     SECTION 1. Section 5-38-2 of the General Laws in Chapter 5-38 entitled "Automobile

Body Repair Shops" is hereby amended to read as follows:

5-38-2. Duties of department of business regulation. -- (a) (1) The department of

business regulation shall issue licenses as provided for in section 5-38-6; and shall authorize the

transfer of licenses and the establishment of new offices for previously licensed auto body repair

shops. The department of business regulation shall act on all complaints from consumers, the

insurance industry, and/or law enforcement agencies with regard to automobile body repair shop

work.

      (2) The department of business regulation shall adopt reasonable rules and regulations

for the licensing of automobile body repair shops and schools for the instruction in automobile

body repair.

      (b) To establish within the department of business regulation, divisions of commercial

licensing and regulation, the auto collision repair licensing advisory board consisting of seven (7)

nine (9) members appointed by the governor, consisting of the following, who shall serve a term

of five (5) years:

      (1) One president or his or her designee from an association of collision repairers

independent, non-networked, Rhode Island auto body shops;

      (2) Two (2) representatives from the department of business regulation;

      (3) One from the association of new car dealers;

     (4) One from the insurance industry;

     (5) One from law enforcement; and

     (6) One from the general public.; and

(7) One from the glass installation/repairers industry; and

(8) One from an association representing network or direct repair auto body repair shops.

     (c) The board may adopt, amend, and rescind rules and regulations as necessary to carry

out the provisions of this chapter with the prior approval of the director.

      (d) The board may oversee investigations of conduct deemed unprofessional against any

licensed facility, person, or corporation subject to this chapter and may hold hearings to

determine whether the charges are substantiated or unsubstantiated.

      (e) The board may recommend to the director of the department of business regulation

that the director license qualified applicants.

      (f) The board may meet at least once a month or more often upon the call of the

chairperson or director of the department of business regulation.

      (g) To recommend to the director of the department of business regulation to revoke,

suspend or take other disciplinary action with respect to facilities, corporations or persons

licensed under this chapter.

      (h) To adopt and publish with the prior approval of the director of the department of

business regulation rules of procedure and other regulations in accordance with the

Administrative Procedure Act, chapter 35 of title 42.

     (i) The board members shall receive no compensation.

(j) Following each monthly board meeting, the board may, if consistent with the public

interest, submit any: (1) unresolved issue reasonably related to its jurisdiction under this statute to

the director of the department of business regulation for his or her review at his or her discretion;

or (2) seek a declaratory ruling pursuant to central management regulation 3 ("declaratory rulings

and petitions from the director") as to any unresolved issue within the scope of this statute.

(k) Board members shall continue to serve until their replacement is named.

(l) (3) The director will review whether it is economically necessary and administratively

feasible for the department of business regulation to establish a labor rate for the auto collision

repair industry. Such review shall include, but not limited to, the department of business

regulation’s staffing and funding requirements. Further, the department of business regulation is

authorized to immediately retain outside consultants for such review, to be funded by the

legislature and/or the auto body collision repair industry. He shall report his findings to the

legislature no later than January 1, 2006.

     SECTION 2. This act shall take effect upon passage.     

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LC02746/SUB A

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