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North Carolina Introduces Shop Licensing Bill

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April 2, 2015—The North Carolina General Assembly on Tuesday introduced Senate Bill 454 that would require collision and mechanical repair shops to be licensed to conduct business in the state.

If the bill passes, a shop or estimator would be guilty of a Class 3 misdemeanor if it is not properly licensed after Dec. 1.

The General Assembly’s stated purpose of the bill is “to protect the safety and welfare of the people of North Carolina against unqualified motor vehicle repair shops, collision repair estimators, service advisors, collision repair technicians and mechanical repair technicians or improper motor vehicle or collision repair.”

The bill would establish a board of examiners consisting of seven members who would administer the provisions of the bill. Five of the members would be motor vehicle repair shop owners and/or collision repair shop owners or managers, one would be a chief officer or executive director of an automotive trade association, and one would be a consumer.

In order to become licensed, a shop would have to submit a completed application on a form approved by the board; pay a required fee; provide a list of all employees who perform repairs in the shop; remain in compliance with the rules adopted by the board; renew the license every two years; display a sign designating them as a licensed shop; and meet the minimum facility requirements established by the board.

The bill also has an anti-steering provision, noting that no insurance company should recommend the use of a particular shop or service without informing the consumer that it is up to their discretion.

For the full copy of the bill, visit the North Carolina General Assembly website.

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