Calif. Auto Body Labor Rate Survey Bill Goes to Senate

June 26, 2018

The California Assembly voted 75-0 for a bill allowing insurers to conduct labor rate surveys under new formats. Now the California labor rate survey bill will be discussed on Wednesday by the Senate Insurance Committee.

June 26, 2018—On May 31, the California Assembly voted 75-0 for a bill allowing insurers to conduct labor rate surveys under new formats. 

A Senate Insurance Committee hearing is scheduled for the California labor rate survey bill at 1:30 p.m. PST on Wednesday.

The California Assembly Insurance Committee passed a labor rate survey bill that would require a specific template and cut direct repair program rates.

AB 2276 requirements include surveying a minimum of 30 auto body repair shops or 30 percent of auto body repair shops, whichever is greater. The insurer or auto body repair shop could negotiate a labor rate that is higher or lower than the prevailing auto body repair labor rate. 

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