Updated: MS Legislature Considering Labor Rate Restrictions

The Mississippi State Senate is considering a bill that would prohibit auto repair shops from charging labor rates above the average national rates charged for like-kind work without the express approval of the Commissioner of Insurance.  The bill, SB 2187, was introduced by Senator Videt Carmichael (R-Meridian) earlier this month, and has been referred to the Insurance Committee.  Local auto body shops and the Mississippi Collision Repair Association oppose the bill.  There is an identical bill pending in the House of Representatives, where legislators are also considering three other bills.  The first two bills, HB 831 and HB 832, delineating the maximum insurers must pay on repairs is “the prevailing market rate that a vehicle could be repaired or replaced in accordance with the manufacturer’s suggested repair standards by a contractor or repair shop within a reasonable geographical or trade area of the insured.” The third bill, HB 833, would amend the Mississippi Code to add additional language reiterating that a consumer has the right to select the repair facility of his or her choice.

UPDATE:  These bills died in committee on February 23, 2016.


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