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Massachusetts Labor Rate Bill Ready for Governor's Signature

Headlines | News Archive | August 2008 |  Massachusetts Labor Rate Bill Ready for Governor's Signature

Massachusetts Labor Rate Bill Ready for Governor's Signature Language taken from the Massachusetts Auto Body Labor Rate Bill, H-1085, was included in the final version of the Budget Conference Committee and sent to Governor Deval Patrick for his signature. The Labor Rate language was included as Outside Section 108 of the Budget Conference Report, which represents the budget document sent from the state legislature to the executive branch. Governor Patrick has ten days to sign it or reject it. Section 108 can be vetoed as a separate line item. Hhowever, leading legislators believe any veto could be overridden. The section calls for a special commission that will study the way Labor Rates are currently set and investigate the benefits and costs of developing a rate setting system, including a shop rating system, average national rates, and using a Bureau of Labor Statistics (BLR) multiplier based on Massachusetts labor wages. This commission will also look into the number of existing shops and the number that have closed since 2000. Additionally, this document also requires the commission to hold at least two public hearings and file a report to include legislative or regulatory recommendations with various committees and officers by December 31, 2008. The commission will consist of three representatives from the Collision Repair Industry. Two will be appointed by the Massachusetts chapter of the Alliance of Automotive Service Providers (AASP MA/RI), and one from the Massachusetts State Auto Dealers Association (MSADA). The commission will also include three Insurance Industry representatives and five state legislators. The chairperson is to be designated by the Secretary of Consumer Affairs and Business Regulation. The bill was introduced into the state legislature in January of 2007 by the AASP MA/RI and the Central Massachusetts Auto Rebuilders Association (CMARA), and sponsored by State Rep. Robert Spellane (D) of Worcester, MA. The industry united behind the bill, organizing letter-writing and phone campaigns as well as several “Legislative Days” at the Massachusetts State House. Nearly half of all legislators had declared their support for the bill with more than two dozen allowing the use of their names on the website, www.passthelaborratebill.org. Due to the strong mobilization effort, the bill progressed through the political process at a very quick pace. Typically, bills take an average of nearly eight years to pass. State Senate leaders were so supportive of the bill that they decided that it should be able to shortcut the final, sometimes agonizing process of being sent through the procedural committees in the House of Representatives. By including the major portions of the bill in their version of the budget, the Senate put a spotlight on the issue by including it the final state budget.

Headlines | News Archive | August 2008 |  Massachusetts Labor Rate Bill Ready for Governor's Signature

 

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