ASSEMBLY, No. 2893


with committee amendments




DATED: AUGUST 14, 1997


      The Assembly Consumer Affairs and Regulated Professions Committee reports favorably and with committee amendments Assembly Bill No. 2893.

      As amended, this bill revises and expands the scope of the current auto body repair facility licensing law. The bill redefines “auto body repair facility” as a business or person who for compensation engages in the business of repairing, removing, installing or painting integral component parts of a motor vehicle damaged as the result of a collision. In addition, the term “automobile” is replaced by the term “motor vehicle” which is defined in the bill as any vehicle required to be registered with the Division of Motor Vehicles, excluding motorcycles.

      The bill creates two classes of licenses, a full service license and a motor vehicle sublet license, and establishes minimum standards a facility must meet in order to qualify for licensure. For a full service license, the bill provides that a facility must satisfy certain requirements pertaining to: the physical set-up, including equipment necessary to perform auto body repairs; licenses, permits and registrations necessary for the conduct of an auto body repair business; maintenance of proper insurance coverages; and employee training and qualifications. In addition, the bill provides that a dealer of new motor vehicles which does not satisfy the equipment requirements for a full service license may obtain a motor vehicle sublet license provided the dealer agrees in its sublet license application to use only auto body repair facilities licensed pursuant to the provisions of the bill. License applications shall be reviewed by the Director of the Division of Motor Vehicles and a license issued or denied within 90 days of receipt of the completed application and supporting documents.

      Finally, the bill strengthens current auto body repair facility enforcement provisions and allows for the privatization of inspection of auto body repair facilities and reporting activities currently performed by the Division of Motor Vehicles.

      It is the committee’s understanding that the provisions of the bill shall not be applicable to mechanical or electrical repairs performed by automotive repair facilities, such as gasoline stations or garages, regardless of the cause of the damage.