It is enacted by the General Assembly as follows:

SECTION 1. Sections 5-38-2, 5-38-4 and 5-38-5 of the General Laws in Chapter 5-38 entitled "Automobile Body Repair Shops" are hereby amended to read as follows:

{ADD 5-38-2. Duties of department of business regulation. -- ADD} {ADD (1) ADD} The department of business regulation shall issue licenses as provided for in section 5-38-6; and shall authorize the transfer of licenses and the establishment of new offices for previously licensed auto body repair shops. The department {ADD of business regulation ADD} shall act on all complaints from consumers, the insurance industry, and/or law enforcement agencies with regard to automobile body repair shop work. The department {ADD of business regulation ADD} shall adopt reasonable rules and regulations for the licensing of automobile body repair shops and schools for the instruction in automobile body repair.

{ADD (2) To establish within the department of business regulation, divisions of professional regulation, the auto collision repair licensing advisory board consisting of seven (7) members appointed by the governor, consisting of the following, who shall serve a term of five (5) years:

(a) one (1) president or his designee from association of collision repairers;

(b) two (2) representatives from the department of business regulation;

(c) one (1) from association of new car dealers;

(d) one (1) from insurance industry;

(e) one (1) from law enforcement; and

(f) one (1) from general public.

(3) The board shall adopt, amend and rescind such rules and regulations as it deems necessary to carry out the provisions of this chapter with the prior approval of the director;

(4) The board shall oversee investigations of conduct deemed unprofessional against any licensed facility, person, or corporation subject to this chapter and to hold hearings to determine whether such charges are subtantiated or unsubstantiated;

(5) The board shall recommend to the director of business regulation to license duly qualified applicants for licensing;

(6) The board shall meet at least once a month or more often upon the call of the chairman or director of business regulation;

(7) To recommend to the director of business regulation to revoke, suspend or other disciplinary action with respect to facilities, corporations or persons licensed under this chapter;

(8) To adopt and publish with the prior approval of the director of business regulation rules of procedure and other regulations in accordance with the administrative procedure act, chapter 35 of title 42.

(9) The board members shall receive no compensation. ADD}

{ADD 5-38-4. Practices for which license is required. -- ADD} {ADD An annual license shall be issued to businesses, corporations and persons meeting the qualifications set by the Auto Collision Repair Licensing Advisory Board and paying the required fees. Qualification shall be set by the auto collision repair licensing board and approved by the director. ADD}

No person, firm or corporation shall engage within this state in the business of auto body repairing or painting or shall enter into contracts for the repairing, replacing or painting of auto bodies or parts of auto bodies or shall advertise or represent in any form or manner that he, she or it is an auto body shop unless that person, firm or corporation shall possess a license in full force and effect from the department of business regulation specifying that person, firm or corporation as licensed to operate or conduct an auto body shop.

This chapter shall apply to every new and used motor vehicle dealer as defined in section 31-1-19 of the general laws, but shall not apply to or require the obtaining of a license by persons, firms or corporations whose business is or may be limited to the making or entering into contracts for the making of mechanical or electrical repairs or adjustments to motor vehicles.

{ADD 5-38-5. Rules and regulations. -- ADD} The {DEL department of business regulation DEL} {ADD auto collision repair licensing advisory board ADD} shall {ADD with the director's approval: (1) ADD} establish such rules, regulations and procedures as it may deem appropriate, and all those rules, regulations, and procedures shall constitute a public record.

{ADD (2) Establish standards for sanitary, hygienic and healthful conditions of the work premises and facilities used by persons licensed by the board.

(3) Establish minimum requirements for the licenser of auto body repair shops. ADD}

SECTION 2. This act shall take effect upon passage, provided however, that for those provisions that require compliance by auto body repair shops and their personnel shall not be implemented until September 1, 1994.