News: Last Chance for Collision Repairers to Grade Insurers
State insurance commissioner would determine minimum labor rate allowable in Massachusetts by averaging rates of five New England states.
House Bill 969, the Massachusetts labor rate bill, will be heard on June 20 by the State Joint Committee on Financial Services.
The bill would mandate that the state insurance commissioner determine the minimum auto body labor rate allowable in Massachusetts by averaging the rates of five New England states Rhode Island, Connecticut, New Hampshire, Maine and Vermont. The rates would be provided by estimating system providers.
The bill also states, "Upon setting the rate, the commissioner shall have the discretion to adjust the hourly rate by not more than 3 percent greater or 3 percent less than said average. The commissioner shall review the hourly labor rate once every three years to make readjustments as necessary."
The bill was initially introduced into the State Legislature in 2007-2008, and an agreement to send the bill forward for study by a Special Commission was all it could muster. The bill was refiled in 2009-2010, and lawmakers had a positive reception to it, but it was not moved to the floor in time for a vote on the final day.