Chapter 154
2015 -- H 5491 SUBSTITUTE A AS AMENDED
Enacted 07/09/2015

A N   A C T


Introduced By: Representatives Corvese, Winfield, Carnevale, and Slater
Date Introduced: February 12, 2015

It is enacted by the General Assembly as follows:
     SECTION 1. Section 5-38-5 of the General Laws in Chapter 5-38 entitled "Automobile
Body Repair Shops" is hereby amended to read as follows:
     5-38-5. Rules and regulations. -- The auto collision repair licensing advisory board shall
shall, with the director's approval:
      (1) Establish any rules, regulations, and procedures that it deems appropriate, and all
those rules, regulations, and procedures constitute a public record.
      (2) Establish standards for sanitary, hygienic, and healthful conditions of the work
premises and facilities used by persons licensed by the board.
      (3) Establish minimum requirements for the licenser of auto body repair shops.
      (4) Establish minimum requirements for the certification of auto repair technicians, other
than those whose work is limited to glass repair and/or replacement.
     (5) Establish two (2) classifications of full collision licensees based upon the following:
     (i) Class A certification: To be eligible for Class A certification, a full collision licensed
auto body repair facility must meet the following minimum requirements:
     (A) Comply with all requirements for licensure promulgated by the department pursuant
to subsections (1) through (4) of this section; and
     (B) Be certified by at least one automobile manufacturer for the repair and refinishing of
aluminum, high strength steel, and other metal or alloy; and
     (C) Ensure customer satisfaction by providing each customer with a written, limited-
lifetime warranty that is valid against workmanship defects and maintain a system for
documenting customer complaints and responses to service; and
     (D) Provide evidence of certification of all technicians employed at the auto body repair
facility by methods approved by the department regulations pursuant to subsection (4) of this
section:
     (ii) Class B certification: To be eligible for Class B certification, a full collision licensed
auto body repair facility must establish that it has met all of the requirements promulgated by the
department pursuant to subsections (1) through (4) of this section.
     (iii) Class certification shall be issued to qualifying full collision licensed auto body
repair facilities upon initial application for licensure and upon license renewal.
     (iv) Notwithstanding subsection (iii) above, full collision licensed auto body repair
facilities seeking Class A certification must apply to the department on or before December l,
2015; all Class A applications must include documentation evidencing automobile manufacturer
certification pursuant to § 5-38-5(5)(i)(B). Resulting classification designations (A or B) must be
issued on or before April l, 2016, by the department. Any applicant requesting Class A
certification must submit a three hundred dollar ($300) application fee.
     (v) Any full collision licensed auto body repair facility that does not apply for
certification on or before March 1, 2016, will be designated as a Class B full collision auto body
repair facility.
     (vi) After initial issuance of class designation by the department, pursuant to subsection
(iv) of this section, a designated Class B auto body repair facility may apply for Class A
certification at any time in a calendar year with an application fee of three hundred dollars ($300).
The new classification, if any, resulting from a full collision licensed auto body repair facility's
application received prior to December 31 of any calendar year must be updated on the
department's listing of licensed auto body repair facilities for use by insurers in the auto body
labor rate survey pursuant to § 27-29-4.4 of the next calendar year.
     (vii) The auto collision repair licensing advisory board shall review the regulations
promulgated under subsection (5) of this section at least every two (2) years. If new regulations
are promulgated as a result of a review by the board, licensees must be given reasonable time to
comply with any new requirements of class designations.
     (viii) The department shall adopt such regulations necessary to carry out the provisions of
this section on or before January 31, 2016.
     SECTION 2. Section 27-29-4.4 of the General Laws in Chapter 27-29 entitled "Unfair
Competition and Practices" is hereby amended to read as follows:
     27-29-4.4. Auto body repair labor rate surveys. -- (a) Every insurance carrier
authorized to sell motor vehicle liability insurance in the state shall conduct an auto body repair
labor rate survey, subject to and in accordance with to, and in accordance with, the following
provisions:
      (1) When used in this section the following definitions shall apply:
      (i) "Auto body labor rate survey" is an analysis of information gathered from auto body
repair shops regarding the rates of labor that repair shops charge in a certain geographic area.
      (ii) "Prevailing auto body labor rate" means the rate determined and set by an insurer as a
result of conducting an auto body labor rate survey in a particular geographic area, area and used
by insurers as a basis for determining the cost to settle automobile property damage claims.
      (iii) "Independent auto body repair facility" means any auto body repair facility that does
not have a formal agreement and/or written contract with an insurer to provide auto body repair
services to insureds and/or claimants.
      (iv) "Direct repair program" means any methods through which an insurer refers,
suggests, recommends a specific auto body repair facility, with whom the insurer has a formal
agreement and/or contract to provide auto body repair services, to insureds and/or claimants.
      (v) "Contract rate" means any labor rate to which an auto body repair facility and an
insurer have agreed in a formal agreement and/or written contract.
      (2) Each insurer must conduct an a separate and distinct auto body labor rate survey, for
each classification of auto body shops as established by the department of business regulation
pursuant to § 5-38-5, in writing, annually to determine a separate and distinct prevailing auto
body labor rate for each classification of fully licensed auto body repair facilities.
      (3) Insurers may not use an auto body labor rate survey, survey; contract rates from auto
body repair facilities with which it has a formal agreement or contract to provide auto body repair
services to insureds and/or claimants, claimants; rates paid as a result of subrogation, rates
obtained from auto body repair facilities in a different classification than that being surveyed, or
rates from a repair shop facility holding a limited or special use license.
      (4) Each auto body labor rate survey shall include the following:
      (i) The name and address of each shop surveyed in the labor survey;
      (ii) The total number of shops surveyed;
      (iii) The prevailing rate established by the insurer for each classification of full collision
licensed auto body repair facilities; and
      (iv) A description of the formula or method used to calculate or determine the specific
prevailing rate reported.
      (5) Each insurer must report the results of their auto body labor rate survey to the
department of business regulation insurance division.
      (6) The department of business regulation must promulgate regulations related to auto
body labor rate surveys by October 1, 2006 2006, establishing the following:
      (i) A questionnaire that must be used by all insurers in their labor rate survey;
      (ii) Date of reporting; and
      (iii) Number or percentage of shops to be surveyed.
      (7) The department of business regulation shall review all surveys submitted for
compliance with this section and any rules and regulations promulgated by the department.
     (b) Nothing contained in § 27-29-4.4 shall require an insurer to establish the prevailing
rate for each classification of full collision licensed auto body repair facilities based solely on the
survey results.
     SECTION 3. Section 1 of this act shall take effect upon passage. Section 2 of this act
shall take effect on January 1, 2016.
========
LC001381/SUB A/2
========