The bill addresses the findings of the Auto Body Labor Rate Advisory Board, which has concluded for the third time in seventeen years that auto body labor rates in Massachusetts are significantly inadequate and misaligned with economic realities, workforce demands, and public safety expectations. The 2025 Advisory Board's report, based on extensive public engagement and independent economic analysis, reaffirms previous conclusions from 2008 and 2022, indicating that the current market structure fails to produce fair labor rates. The report highlights systemic underpayment that adversely affects repair quality, workforce stability, and consumer safety, emphasizing the need for an increase in labor rates to reflect actual costs and stabilize the industry.

The Advisory Board received seven formal recommendations, with six supporting an increase in labor rates, while one dissenting recommendation from insurance representatives opposed any rate increase. The independent economic analysis presented by Professor John Kwoka indicates that the existing labor rates are not determined in a competitive market but are instead influenced by an imbalance of power favoring insurers. The report calls for decisive action to address the issue, warning that continued inaction could lead to workforce erosion, reduced repair capacity, and compromised safety outcomes. The bill urges the Commonwealth to act on the findings rather than prolonging the study of a problem that has been well-documented.