Bill 165, Collision Repair Standards Act, 2002

Versions

Bill 165 2002

An Act to further highway safety
and establish consumer protection
through the regulation of the collision
repair industry, and to make a
complementary amendment to
the Insurance Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Definitions

1. In this Act,

"Advisory Board" means the Collision Repair Advisory Board; ("Conseil consultatif")

"certified collision repair shop" means a collision repair shop that has been certified by the Minister in accordance with the regulations; ("atelier de réparation en cas de collision agréé")

"collision repair" means the repair of automobiles that have been damaged by collision, and includes the repair of automobiles that have been damaged by,

(a) collision with another vehicle,

(b) collision with the roadway or any object on the roadway,

(d) fire, or

(e) vandalism; ("réparation en cas de collision")

"collision repair shop" means a place of business where collision repair is performed; ("atelier de réparation en cas de collision")

"Minister" means the Minister of Consumer and Business Services, or such other member of the Executive Council to whom the administration of this Act may be assigned under the Executive Council Act; ("ministre")

"regulations" means the regulations made under this Act. ("règlements")

Purpose

2. The purposes of this Act are the following:

1. To further highway safety by promoting the proper and efficient repair of automobiles that have sustained structural or body damage.

2. To protect consumers from dishonest, deceptive and fraudulent practices in the repair of such motor vehicles.

3. To provide a fair marketplace for the collision repair industry and those who have an interest in it.

4. To implement a regulatory framework for the collision repair industry which will provide for the certification of collision repair shops based on industry standards, and decertify those collision repair shops which fail to meet those standards.

5. To establish province-wide standards for quality collision repair, and a system of inspection and compliance.

Advisory Board established

3. (1) A board is established under the name Collision Repair Advisory Board in English and Conseil consultatif sur la réparation en cas de collision in French.

Members of board

(2) The Advisory Board consists of nine members appointed by the Lieutenant Governor in Council, of whom,

(a) four shall be persons who work in the collision repair industry;

(b) three shall be persons who work in the automobile insurance industry; and

(c) two shall be persons who do not work in either the collision repair or the automobile insurance industry, and who are not employees of the Ontario Public Service.

Term of office

(3) The terms of office of the members of the Advisory Board are subject to the following rules:

1. Two of the members mentioned in clause (2) (a) and one of the members mentioned in clause (2) (b) shall be appointed for a term of one year.

2. One of the members mentioned in each of clauses (2) (a), (b) and (c) shall be appointed for a term of two years.

3. One of the members mentioned in each of clauses (2) (a), (b) and (c) shall be appointed for a term of three years.

4. Members may be reappointed.

5. When the term of a member expires, he or she continues to serve until a successor is appointed.

Chair and vice-chair

(4) The members of the Advisory Board shall designate a chair and a vice-chair from among the members.

Quorum

(5) Five members of the Advisory Board constitute a quorum.

Procedures and practices

(6) The Advisory Board may make rules establishing its own procedures and practices.

Responsibilities of Advisory Board

4. (1) The Advisory Board shall,

(a) make recommendations to the Minister concerning requirements for the certification and decertification of collision repair shops;

(b) make recommendations to the Minister concerning standards for certified collision repair shops;

(c) review applications for the certification of collision repair shops, and recommend to the Minister whether the application should be granted;

(d) review complaints against certified collision repair shops;

(e) attempt to resolve disputes between consumers and the proprietors of certified collision repair shops;

(f) where it is of the opinion, after giving the proprietor of a certified collision repair shop a chance to be heard, that the repair shop should be decertified according to the standards set by the regulations, advise the Minister accordingly; and

(g) generally, perform all functions related to the certification and regulation of collision repair shops that are referred to it by the Minister.

Delegation

(2) The Advisory Board may, subject to any conditions it sees fit, delegate any of its responsibilities under subsection (1) to,

(a) one of its members;

(b) a committee of its members; or

Powers of Minister

5. The Minister may,

(a) certify collision repair shops;

(b) decertify collision repair shops; and

Inspections

6. (1) The Minister may appoint or designate inspectors for the purposes of this Act.

Entry by inspector

(2) An inspector may enter a certified collision repair shop during normal business hours for the purpose of determining whether the standards set by the regulations are being complied with.

Examination

(3) For the purposes of carrying out an inspection, an inspector may,

(a) examine books and records of the certified collision repair shop;

(b) carry away books and records and make copies of them, on the condition that the books and records are promptly returned; and

Offence

(4) Every person who hinders or obstructs an inspector acting in the course of his or her duties is guilty of an offence and on conviction is liable to a fine not exceeding $5,000.

Regulations

7. The Minister may make regulations,

(a) setting standards for the certification and decertification of collision repair shops;

(b) setting standards that must be met by certified collision repair shops.

Insurance Act

8. The Insurance Act is amended by adding the following sections:

Certified collision repair shops

263.1 (1) An insured who is entitled to payment from an insurer for the repair of damage to an automobile as a result of a collision is entitled, subject to this section, to have the repair performed at any certified collision repair shop within the meaning of the Collision Repair Standards Act, 2002 that will perform the repair at a price that is competitive with that charged by other certified collision repair shops in the immediate geographic area.

Definition

(2) In this section and section 263.2,

"immediate geographic area" means the area within which the owner of an automobile would normally travel for the purpose of obtaining appropriate services or repairs for his or her automobile.

Payments only for certified collision repair
shops

263.2 (1) Despite the terms of any policy, an insurer may not make a payment for the repair of damage to an automobile due to a collision, unless the repair is performed at a certified collision repair shop within the meaning of the Collision Repair Standards Act, 2002.

Exceptions

(2) Subsection (1) does not apply to the following:

1. Repair of damage that takes place outside of Ontario, where it would not be practicable to have the repair performed in Ontario.

2. Situations where there is no certified collision repair shop within the immediate geographic area.

3. Repair of damage to equipment that is not part of the structure or body of an automobile, including, without being limited to, electronic entertainment equipment.

Commencement

9. This Act comes into force 30 days after the day it receives Royal Assent.

Short title

10. The short title of this Act is the Collision Repair Standards Act, 2002.

EXPLANATORY NOTE

The Bill empowers the Minister to establish a regulatory framework for the collision repair industry, including the certification and decertification of collision repair shops.

The Bill also establishes the Collision Repair Advisory Board to perform an advisory function concerning the automobile collision repair industry.

The Bill also amends the Insurance Act to provide that, subject to certain conditions, a consumer may have collision repairs performed at a certified collision repair shop of his or her choosing. Insurance payments may only be made in respect of repairs that are performed at certified collision repair shops.