It is enacted by the General Assembly as follows:

SECTION 1. Chapter 31-3 of the General Laws entitled "REGISTRATION OF VEHICLES" is hereby amended by adding thereto the following section:

{ADD 31-3-20.1. Operation with auto body repair shop plates. -- ADD} {ADD (a) An auto body repair shop, officially licensed by the Department of Business Regulations, may loan a motor vehicle to a client/customer whose registered motor vehicle is undergoing auto body repair on the premises of the respective auto body repair shop and may affix to the loaned motor vehicle number plates registered to the motor vehicle undergoing auto body repair when the number plates are of the same classification and the licensed auto body repair shop may issue a temporary certificate of registration to the loaned motor vehicle under which certificate the loaned vehicle may be operated upon the public highways for a period of twenty (20) days from the date of issuance. The certificate shall be issued upon a form to be obtained from the registry and shall be titled "Agreement - Temporary Loan of Motor Vehicle". ADD}

{ADD It shall be issued under such conditions as the registry may impose. The certificate shall be carried in the loaned vehicle for which it is issued and the operator or person in control of the loaned vehicle shall display the certificate for examination upon demand of any proper officer. The client/customer shall furnish proof to the auto body repair shop that he/she has liability and property damage insurance which will cover any damage to any person or property caused by the operation of the loaned vehicle for which the client/customer would have been liable if he/she had been the owner. ADD}

{ADD This proof of insurance shall be set forth on the certificate issued by the registry and shall be subject to such condition as the registry may impose; provided that in the event the client/customer loaned the vehicle shall not have proper insurance in effect, then any liability or property damage shall be covered by the auto body repair shop's insurance policy. Section 31-47-12(d) shall be applicable to loaned motor vehicles and the acceptable evidence of financial responsibility as filed in the rules and regulations relative to compulsory insurance or financial responsibility shall apply. ADD}

{ADD (b) An auto body repair shop may not extend the use of "Agreement - Temporary Loan of Motor Vehicle" certificates to anyone who is not a client/customer whose registered motor vehicle is undergoing auto body repair on the premises of the respective auto body repair shop This legislation does not apply to any motor vehicle owned by dealer, manufacturer or operator of an auto body repair shop which is rented or leased for compensation to any person for any purpose. ADD}

{ADD (c) Every auto body repair shop shall keep a record of each loaned vehicle showing the date loaned, date returned, name, address, and operator's license number of the client/customer, the number plate transferred to the loaned vehicle and the number of the certificate issued. This record shall be available during business hours for examination by any police officer or inspector designated by the Registrar of Motor Vehicles. This legislation does not apply to any motor vehicle owned by dealer, manufacturer or operator of an auto body repair shop which is rented or leased for compensation to any person for any purpose.ADD}

{ADD (d) Penalties. Any owner and/or employee of any auto body repair shop or client/customer who shall violate the provisions of this section shall be guilty of a violation and subject to a fine of two hundred dollars ($200) and the authority to issue "Agreement - Temporary Loan of Motor Vehicle" certificates revoked. ADD}

SECTION 2. This act shall take effect upon passage.