A08041 Summary:

BILL NOA08041
 
SAME ASSAME AS S08350
 
SPONSORKay
 
COSPNSRMcDonald, Weprin
 
MLTSPNSR
 
 
Directs the department of financial services, in consultation with the department of transportation to conduct a study and prepare a report on the fair market value of labor rates for services covered under motor vehicle insurance policies.
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A08041 Actions:

BILL NOA08041
 
04/22/2025referred to insurance
05/28/2025reported referred to ways and means
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A08041 Committee Votes:

INSURANCE Chair:Weprin DATE:05/28/2025AYE/NAY:24/0 Action: Favorable refer to committee Ways and Means
WeprinAyeBlankenbushAye
CookAyeHawleyAye
LavineExcusedPalmesanoAye
SteckAyeGandolfoAye
DilanAyeJensenAye
HunterAyeBlumencranzAye
JacobsonAyeBendettAye
MeeksAye
ForrestAye
AndersonAye
CruzAye
BoresAye
LunsfordAye
BergerAye
EichensteinAye
KayAye
YegerAye
WiederAye

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A08041 Floor Votes:

There are no votes for this bill in this legislative session.
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A08041 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8041
 
SPONSOR: Kay
  TITLE OF BILL: An act directing the department of financial services to conduct a study on the fair market value of labor rates for services covered under motor vehicle insurance policies   PURPOSE: Directs the Department of Financial services to conduct a study of the fair market value of labor rates for services covered under motor vehi- cle insurance policies.   SUMMARY OF PROVISIONS: Section one directs the Department of Financial Services to conduct a study and prepare a report on the fair market value of labor rates for services covered under motor vehicle insurance policies. Section two directs the Department of Financial Services, in consulta- tion with the Department of Transportation, to issue a report on the findings of the study along with any appropriate regulatory or legisla- tive actions to the Governor, the Temporary President of the Senate, and the Speaker of Assembly. Section three establishes the effective date.   JUSTIFICATION: Small automotive repair businesses are being unfairly treated, by the predatory practices of big-name insurance companies, which deceptively steer their members toward preferred shops that accept unreasonably low labor rates. At the same time, they direct insured drivers away from choosing a repair shop they know and trust. This is not a sustainable system for small businesses, or for any auto body shop that takes pride in providing high-quality work. Notably, these deceptive tactics deployed by the insurance industry silently prey on their own insured members, often forcing them to pay out of pocket unless they use a "preferred" shop. These shops are compelled to accept unreasonably low labor rates simply because the insurance company dictates the rate, with no regard for whether it is fair or reasonable. There are no true negotiations between repair shops and . insurance companies to determine these rates. Anecdotally, these rates are often far below what many shops consider fair. In some cases, insurance compa- nies have even sent threatening letters to small auto body shops, warn- ing them not to discuss labor rates with other businesses, further limiting transparency and fair competition. Without transparency in how insurance companies determine "fair market value" for labor, there is no way to assess whether the rates they offer are equitable. Currently, New York State does not provide clear guidance on how insurers are allowed to establish these labor rates. This lack of meaningful oversight leads to financial hardship for small repair shops when insurers can unilaterally decide what they are willing to pay, regardless of whether that amount is fair. If these deceptive practices are not addressed through legislation, they will have a devas- tating impact on mom-and-pop auto body shops across New York. The relationship between a customer and a trusted automobile repair shop is built on loyalty and confidence. People should not be forced to take their car elsewhere simply because-their insurance company requires them to do so. This legislation will give New York State the tools it needs to confront these deceptive practices by providing data and legislative recommenda- tions on labor rates and what constitutes a fair market value for auto repairs.   PRIOR LEGISLATIVE HISTORY: New Bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT: Minimal.   EFFECTIVE DATE: Immediately.
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A08041 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8041
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                     April 22, 2025
                                       ___________
 
        Introduced by M. of A. KAY -- read once and referred to the Committee on
          Insurance
 
        AN ACT directing the department of financial services to conduct a study
          on  the  fair  market  value of labor rates for services covered under
          motor vehicle insurance policies
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. The department of financial services, in consultation with
     2  the department of transportation shall conduct a  study  and  prepare  a
     3  report  on  the  fair  market  value of labor rates for services covered
     4  under motor vehicle insurance policies.
     5    § 2. Within one year of the effective date of this act, the department
     6  of financial services, in consultation with the department of  transpor-
     7  tation  shall  issue  a  report  of the findings of the study along with
     8  recommendations for any appropriate regulatory or legislative actions to
     9  the governor, the temporary president of the senate and the  speaker  of
    10  the assembly.
    11    § 3. This act shall take effect immediately.
 
 
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11619-01-5
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A08041 LFIN:

 NO LFIN
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A08041 Chamber Video/Transcript:

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