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S 797

Relates to amending provisions requiring the termination of connected vehicle services upon the request of a domestic violence victim

2025 Regular Session Introduced by Andrew Gounardes

Sets a statewide minimum auto body labor rate (not below $55/hour) based on an annual advisory board recommendation.

SUBSTITUTED BY A434
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WeVote Research Nonpartisan
Bill Summary · S 797

Summary — S 797 (Massachusetts): "An Act reforming auto body labor rates"

Note: the bill text provided addresses auto body labor rates. The title you supplied (about terminating connected vehicle services for domestic violence victims) appears inconsistent with the bill text below; this summary follows the bill text relating to auto body labor rates.

Purpose

Establish a formal, data-driven process within the Massachusetts Division of Insurance to evaluate and recommend a fair minimum hourly labor rate that insurers pay to registered motor vehicle repair shops for insured claims. The aim is to create an advisory board to collect industry data, produce annual recommendations, and require the insurance commissioner to set a statewide minimum labor rate (not below $55/hour).

Key provisions

  • Adds two new sections to Chapter 100A of the General Laws:
    • Section 15 — Creates an Auto Body Labor Rate Advisory Board housed in the Division of Insurance.
    • Composition:
      • 1 member appointed by the Commissioner of Insurance
      • 1 member appointed by the Attorney General
      • 1 member appointed by the Director of the Division of Insurance Standards
      • 3 members from the auto insurance industry (appointed by the Automobile Insurers Bureau of Massachusetts); those three select a co‑chair
      • 3 members from the auto repair industry (appointed by the Alliance of Automotive Service Providers of Massachusetts), representing different geographic regions; those three select a co‑chair
      • 1 member appointed by the Massachusetts State Automobile Dealers Association
      • 4 members appointed by the co‑chairs: 1 from vocational‑technical schools, 2 from consumer advocacy groups, and 1 economist with insurance‑industry expertise
    • Duties:
      • Meet at least twice per year
      • Design and run an annual survey of relevant auto body shops to compile contracted, posted, and prevailing hourly labor rates and other relevant information
      • Collect industry data including neighboring-state labor rates, shop costs, total labor costs, inflation, workforce statistics, vocational school trends, and insurance premium data
      • Annually review and analyze data and make a recommendation for a fair and equitable labor rate
      • File an annual report (findings, conclusions, recommendations) by December 31 with legislative committees and the Division of Insurance
    • Section 16 — Requires the Commissioner of Insurance to set a minimum hourly labor rate:
    • The commissioner must set a minimum hourly rate within 30 days of receiving the advisory board’s annual report.
    • The minimum hourly rate may not be less than $55/hour.
    • The minimum rate goes into effect 30 days after it is set by the commissioner.

Who would be affected

  • Registered motor vehicle repair shops/auto body shops (reimbursement rates paid by insurers)
  • Auto insurers (required to pay at least the set minimum on insured repair claims)
  • Consumers (potential indirect effects on premiums and repair costs)
  • Vocational-technical schools, workforce stakeholders, consumer advocacy groups (participation on board and in data gathering)

Timeline and procedural status

  • Filed with Senate docket No. 76 (filed 1/7/2025; introduced/read twice 2/27/2025)
  • Referred to committees on Financial Services and Homeland Security & Governmental Affairs; hearing events scheduled/rescheduled in Oct 2025 per actions
  • Status recorded as “SUBSTITUTED BY A434” (companion/substitute bill A434)
  • Advisory board report required annually by December 31; commissioner must act within 30 days thereafter; chosen minimum becomes effective 30 days after being set

Potential impact (practical considerations)

  • Could increase insurer payments for labor on repair claims if the advisory board’s recommendation and commissioner’s set minimum exceed current reimbursement levels; the statutory floor of $55/hr establishes a baseline.
  • Higher insurer outlays may influence insurance pricing/premiums over time.
  • A standardized process and regular data collection may reduce disputes between shops and insurers and better reflect local market conditions.
  • Inclusion of vocational schools and workforce data could inform long‑term technician workforce planning.

Notes

  • The bill text is specific to Massachusetts law (amendment to Chapter 100A).
  • The sponsors list provided in the source material appears to include federal senators and may not correspond to this state bill; this summary focuses on the bill text and legislative actions supplied.

Compiled from official sources — confirm details with the bill’s official record.

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