MABA Legislation and Labor Rate Bill Get Favorable Recommendation From Financial Services Committee

For Immediate Release:
February, 2008

Massachusetts Auto Body Association, Inc.
20 East Street, Hanover, MA 02339
(781) 826-0553 • (800) ITS-MABA • Fax (781) 826-0953
Email: mail@massautobody.org
Website: www. massautobody.org or www.itsmaba.com

For Information Contact:
Stephen Regan
Cell: 617-257-1222
Email: ReganStrategies@comcast.net

Cooperation of three associations key factor in success

On Tuesday February 12, 2008, the Massachusetts Legislature’s Joint Committee on Financial Services gave a favorable recommendation to several bills that the Massachusetts Auto Body Association (MABA) had filed for this legislative session.  In addition, the Committee also gave a key labor rate bill drafted by the AASP-MA/RI chapter, with assistance from the Central Mass Auto Rebuilders Association and support from MABA, a favorable recommendation as well.

MABA had filed nine (9) separate bills on issues ranging from arbitration to shop equipment requirements, steering and labor rate.  Of the nine five were either favorably reported or combined into other redrafts that were reported favorably.  This is an unprecedented success for the advancement of collision repair related bills that are favored by the collision repairers and collision repair associations.  A sixth bill dealt with labor rate, but at a May 9th hearing earlier this year MABA endorsed the AASP-MA/RI labor rate bill and asked the Committee to take no action on theirs. 

MABA spokesman Stephen Regan credited much of the success on two main factors; the professionalism that the association showed over the years through their participation in the legislature’s ‘Auto Body Working Group” and the united front and strong working relationship of the states three collision repair associations.  He also credited the legislators who participated in the “Working Group” who spent a great deal of time listening to both sides and evaluating all the facts and following through on their commitment to their constituents to make the necessary changes to resolve the multiple problems facing the collision repair industry.

“If there is one message, or lesson, that I hope all collision repairers and their associations take from this success it is that you must remain professional at all times, no matter how long it takes or how difficult the environment has become, when dealing with your elected officials and state officials,” said Regan.  “You also need to offer legislative language as your solution and not just complain about your circumstances.  Legislators are much more likely to evaluate a proposal you have presented to them and act on it, rather than listen and take information and draft their own proposal,” Regan added.

“In addition I believe that the solidarity shown by the three state associations on so many of the issues truly impressed the legislators and regulators we were lobbying.  I know we all have some differences of opinion and philosophies but we kept them private so as not to give our opponents any advantage.  I think when MABA publicly supported the AASP-MA/RI labor rate bill over their own legislation it showed how unified we were and it was not about ego or authorship but about supporting each other and using the best solutions to the problem even when it is another’s idea,” Regan added.

The timing of these bills receiving a favorable report by the Committee and becoming eligible for a vote on the House floor could not be better.  MABA has been in the process of hosting four regional legislative forums where state Senators and Representatives have been invited to meet with repairers in their districts to hear about the problems they are having and to get them to support their legislative proposals.  Three of the four have been completed and the fourth is scheduled for Tuesday February 19th in Brockton, MA.  In addition there will be a Lobby Day on Beacon Hill on February 27th organized by AASP-MA/RI and supported by all the associations.  You can contact MABA for information at 1-800-ITS-MABA. 

At the MABA regional legislative meetings attendees are being asked to call, write, or visit their Senator and State Representative and ask them to contact the House leadership and ask that House Bills 1085, 1051, and 1049 are brought up for a vote on the House floor.  They have also prepared a draft of a letter that repairers can mail to their Senator and State Representative that describes the legislation, what it means to them and their business, and what they can do to help.  If someone is unaware of who their Senator or State Representatives is they may go to the following link at the Massachusetts Secretary of State’s office and type in their home or business address at: www.wheredoivotema.com/bal/myelectioninfo.php or they can contact the MABA office at 1-800-ITS-MABA and ask for Nancy.

While there were many bills reported from the Committee on February 12th MABA is asking that repairers focus on the following three bills.  House Bill 1085 is the comprehensive Labor Rate bill, which would establish a Commission that would set a minimum labor rate to be paid by insurers to repairers based upon the national average labor rate adjusted for Massachusetts’ cost of living.  House Bill 1051 would provide the strongest anti-steering language ever drafted by adding insurance agents to the list of those who shall not steer, make steering an Unfair Claim Settlement Practice and provides specific monetary fines not less that $100 or more than $500 for each steering offense.  The bill further provides that insurers must recognize and use the manual that a repairer has used to create a supplement request, allows a repairer to mandate that an insurance appraiser complete a supplement on the premises during the negotiation and allow a shop, at their discretion, to send a supplement request electronically with digital photos. 

House Bill 1049, which also received a favorable recommendation by the Committee, was drafted with the intent of incorporating into Massachusetts law relevant portions of the 1963 Consent Decree, which is an agreement between 250 insurers and the US Department of Justice to avoid an anti trust lawsuit filed against insurers by the federal government.  The bill would specifically prohibit insurers from directing state licensed appraisers from following insurer guidelines instead of state regulations, steering, and most importantly dictating what parts and procedures are used during a repair, and the prices that are paid to repairers for parts, services, and labor.

“Getting these bills out of Committee with a favorable recommendation is a great first step, but still just the first step.  We will now need to contact our legislators to obtain their support in making sure these bills are voted on.  Then and only then will we get the much needed positive changes that these bills can bring to our industry,“ concluded Regan.

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