SF 3510

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to public safety; establishing licensing standards for collision repair
shops; amending Minnesota Statutes 2007 Supplement, section 72B.092,
subdivision 1; proposing coding for new law in Minnesota Statutes, chapter
299A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2007 Supplement, section 72B.092, subdivision 1, is
amended to read:

Subdivision 1.

Prohibitions on insurer.

No adjuster or insurer, director, officer,
broker, agent, attorney-in-fact, employee, or other representative of an insurer shall
in collision cases:

deleted text begin (a) deleted text end new text begin (1) new text end limit the freedom of an insured or claimant to choose the shop;

deleted text begin (b) deleted text end new text begin (2) new text end require that an insured or claimant present the claim or the automobile for
loss adjustment or inspection at a "drive-in" claim center or any other similar facility
solely under the control of the insurer;

deleted text begin (c) deleted text end new text begin (3) new text end engage in boycotts, intimidation or coercive tactics in negotiating repairs to
damaged motor vehicles which they insure or are liable to claimants to have repaired;

deleted text begin (d) deleted text end new text begin (4) new text end attempt to secure, except in an emergency, the insured's or claimant's
signature authorizing the party securing the signature to act in behalf of the insured or
claimant in selection of a repair shop facility;

deleted text begin (e) deleted text end new text begin (5) new text end adjust a damage appraisal of a repair shop when the extent of damage is in
dispute without conducting a physical inspection of the vehicle; deleted text begin or
deleted text end

deleted text begin (f) deleted text end new text begin (6) new text end specify the use of a particular vendor for the procurement of parts or other
materials necessary for the satisfactory repair of the vehicle. This clause does not require
the insurer to pay more than a reasonable market price for parts of like kind and quality in
adjusting a claim deleted text begin . deleted text end new text begin ;
new text end

new text begin (7) adjust or pay a claim for repairs of an insured's or claimant's vehicle with an
auto body repair facility that does not have a current auto body repair facility license
pursuant to section 299A.67. An insurer shall make reasonable efforts to determine that an
auto body repair facility with which they seek to process or adjust a claim for repairs is
properly licensed. Upon finding that an auto body repair facility is not properly licensed
and reporting that finding to the commissioner, an insurer shall be deemed to have made
reasonable efforts to determine whether an auto repair facility is licensed if the insurer
has reviewed the roster of licensed shops maintained by the commissioner pursuant to
section 299A.67, subdivision 11; or
new text end

new text begin (8) rely upon rates paid to an unlicensed auto body repair facility to calculate the
insurer's prevailing rate for payment of repair services.
new text end

Sec. 2.

new text begin [299A.67] LICENSURE OF AUTO BODY REPAIR FACILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Administration. new text end

new text begin The Department of Public Safety shall administer a
licensing program for auto body repair facilities.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined have the
meanings given them.
new text end

new text begin (b) "Auto body repair facility" means each location operated by a business or person
who, for compensation, engages in the business of repairing, removing, installing, or
painting integral component parts of a chassis or body of a motor vehicle.
new text end

new text begin (c) "Commissioner" means the commissioner of the Department of Public Safety.
new text end

new text begin (d) "Motor vehicle" means any device propelled or drawn by any power other than
muscular power in, upon, or by which any person or property is or may be transported
or drawn upon a highway. The term does not include building and road construction
equipment not subject to motor vehicle registration fees, snowmobiles, three-wheel
off-road vehicles, boat trailers, snowmobile trailers, and other utility trailers, farm tractors,
and agricultural machinery not designed primarily for highway transportation, but which
may incidentally transport persons or property on a public highway, or any other device
which may not be lawfully operated upon a highway at the time of sale.
new text end

new text begin Subd. 3. new text end

new text begin Minimum licensure requirements. new text end

new text begin The commissioner shall establish the
following minimum requirements that an auto body repair facility must satisfy in order
to secure a license:
new text end

new text begin (1) federal tax identification number;
new text end

new text begin (2) state tax identification number;
new text end

new text begin (3) hazardous waste license and an Environmental Protection Agency identification
number or evidence of exemption from the permits;
new text end

new text begin (4) air emissions permit, or evidence of exemption from the permit;
new text end

new text begin (5) proof of workers' compensation insurance coverage as required under section
176.181, subdivision 2, and liability insurance that protects customers' property and
provides the public and employees with remedies for liability arising from the business
operations;
new text end

new text begin (6) evidence that at least one employee or 50 percent of the employees performing
repairs at the auto body repair facility, whichever is greater, have completed a recognized
auto body repair training course involving at least eight hours of training annually. Current
National Institute for Automobile Service Excellence (ASE) certification or completion of
training courses available through the Inter-Industry Conference on Auto Collision Repair
(ICAR), industry manufacturers or trade associations, or a generally recognized auto body
repair training program shall qualify to satisfy this requirement;
new text end

new text begin (7) possession of a gas metal arc welder (GMA-MIG) and evidence that at least one
employee is certified in proper welding techniques by ICAR, the American Welding
Society, or equivalent welding certification;
new text end

new text begin (8) availability of equipment to safely raise and support vehicles for inspection
and repair;
new text end

new text begin (9) possession, maintenance, and utilization for all spray painting of:
new text end

new text begin (i) an enclosed area for refinishing which complies with Occupational Safety and
Health Administration standards for spray finishing, Code of Federal Regulations, title
29, part 1910.107, and Code of Federal Regulations, title 29, part 1910.94, and all other
applicable safety, fire, environmental, and other regulations; and
new text end

new text begin (ii) a filtration method to reduce particles from the air exhausted from the spray
area that is accepted by the industry according to standards established by the state or
federal government;
new text end

new text begin (10) possession and maintenance of a current auto body repair facility reference
source for estimating the cost of repairs in either book or computerized form which is
accepted by the industry;
new text end

new text begin (11) availability of a four-point anchoring system capable of holding a vehicle in
stationary position during frame or unibody pulls;
new text end

new text begin (12) availability of equipment or the means for performing automobile four-wheel
alignment;
new text end

new text begin (13) equipment necessary to perform or the means for performing vehicle air
conditioner servicing including the means to evacuate, recycle, recharge, and recover
refrigerants and a technician-employee certified to perform the repairs; and
new text end

new text begin (14) equipment necessary to perform or the means for performing mechanical
repairs necessitated by collision damage.
new text end

new text begin Subd. 4. new text end

new text begin Exclusions from licensing. new text end

new text begin (a) An applicant for an auto body repair
facility license that does not meet the requirements of subdivision 3, clauses (11) to (14),
may satisfy those requirements by entering into and maintaining a written agreement or
agreements to have work performed by an entity that provides the services so required.
new text end

new text begin (b) Businesses that specialize solely in particular auto body repair services including
paintless dent repair, bumper repair service, wheel reconditioning, leather and vinyl repair,
air bag replacement, rust-proofing, four-wheel alignment, air conditioning services,
mechanical repairs or structural repairs, or glass replacement service are not required to
obtain an auto body repair facility license to conduct business.
new text end

new text begin (c) Business solely engaged in repairing motor vehicles for a single commercial
entity are not required to obtain an auto body repair facility license.
new text end

new text begin Subd. 5. new text end

new text begin Licensure application. new text end

new text begin The commissioner shall develop a form that
requires the name, address, and contact person and evidence of compliance with licensure
requirements established in this section for an auto body repair facility seeking a license
from the state.
new text end

new text begin Subd. 6. new text end

new text begin Issuance or suspension of license. new text end

new text begin (a) The commissioner may not issue
a license to an auto body repair facility unless it has met all of the requirements of
subdivision 3.
new text end

new text begin (b) The commissioner shall suspend the license of an auto body repair facility for
ten days upon a violation within a 12-month period of any of the licensure requirements
established under this section. The suspension shall be lifted and the license restored to
good standing upon provision of evidence by the auto body repair facility that the facility
has complied with all licensure requirements.
new text end

new text begin (c) The commissioner may issue a temporary license for up to 90 days at the request
of an auto body repair facility to provide additional time to comply with licensing
standards such as training requirements that may require advance scheduling.
new text end

new text begin Subd. 7. new text end

new text begin Review of applications for licensure, notification of refusal to grant
a license or to suspend a license; hearing. new text end

new text begin (a) Applications for a new or renewal auto
body repair facility license shall be reviewed by the commissioner and a license shall be
issued or denied within 90 days following receipt by the commissioner of the completed
application and supporting documents.
new text end

new text begin (b) Upon refusal to grant a license or to suspend a license of an auto body repair
facility, the commissioner shall notify the auto body repair facility in writing by certified
mail. The auto body repair facility shall be given a hearing by the commissioner if, within
30 days after notification, the facility files with the commissioner a written request for a
hearing concerning the refusal to grant a license or suspension of the license.
new text end

new text begin (c) Upon the sale or other transfer of ownership interest in a licensed auto body
repair facility, the new owner may continue to operate under the previous owner's license
for a period of 90 days during which time the new owner must submit an application
for licensure on the owner's own behalf.
new text end

new text begin Subd. 8. new text end

new text begin Investigations. new text end

new text begin The commissioner shall, at the commissioner's own
initiative or in response to complaints, investigate on a continuing basis and gather
evidence of violations of this section, or of any rule adopted under this section, by auto
body repair facilities.
new text end

new text begin Subd. 9. new text end

new text begin Penalties. new text end

new text begin The commissioner may impose a fine not to exceed $2,500 for a
first offense of conducting business as an auto body repair facility without a license and an
amount not to exceed $5,000 for each subsequent offense.
new text end

new text begin Subd. 10. new text end

new text begin License fee. new text end

new text begin The commissioner shall establish an annual fee for the
issuance and renewal of an auto body repair facility license. The fee shall not exceed
$250 for the first year that a shop receives a license. The annual renewal fee for an auto
body repair facility's license may not exceed $100 per year. A facility that has its license
suspended in any given year must secure a license by submitting a new application to
the commissioner and paying a $250 license fee as if the auto body repair facility were
receiving a new license.
new text end

new text begin Subd. 11. new text end

new text begin Roster of licensed auto body repair facilities. new text end

new text begin The commissioner
shall maintain a roster of currently licensed auto body repair facilities that is available
electronically via the department's Web site.
new text end

new text begin Subd. 12. new text end

new text begin Display of license. new text end

new text begin A licensed auto body repair facility must display its
current license in a prominent location that is readily visible by the business's customers.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective August 1, 2009.
new text end