Collision Repair Standards Act, 2002

CHAPTER 31

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

Assented to December 13, 2002

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,

(c) an act of theft or attempted theft,

(d) fire, or

(e) vandalism; (“réparation en cas de collision”)

“collision repair shop” means a place of business where collision repair is performed, and includes an entity that provides towing services, where the entity is owned or operated either in whole or in part by an entity that provides collision repair; (“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.

Board membership

(2)  The Advisory Board consists of 10 members appointed by the Lieutenant Governor in Council, of whom,

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

(b) four shall be persons who represent the consumers of Ontario and who do not work in the collision repair industry; and

(c) two shall be employees of the Government of Ontario.

Terms of office

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

1. Members serve for a term set by the Lieutenant Governor in Council in the instrument of appointment.

2. Members may be reappointed.

3. 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 an annual report to the Minister concerning its activities, including an annual budget indicating the Advisory Board is self-financing, and make the report available to the public;

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

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

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

(e) review complaints against certified collision repair shops;

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

(g) 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

(h) 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 prescribed in the regulations, delegate any of its responsibilities under subsection (1) to,

(a) one of its members;

(b) a committee of its members; or

(c) one or more employees of the Ministry over which the Minister presides.

SPPA

(3)  The Statutory Powers Procedure Act applies to procedures and hearings of the Advisory Board.

Powers of Minister

5.  The Minister may,

(a) certify collision repair shops;

(b) decertify collision repair shops; and

(c) refer matters concerning the collision repair industry to the Advisory Board for review and advice.

Motorist’s Bill of Rights

6.  (1)  At the time of providing an estimate to a customer, every operator of a certified collision repair shop shall provide every customer with a copy of the Motorist’s Bill of Rights that complies with subsection (2).

Same

(2)  The Motorist’s Bill of Rights shall contain at least the following elements:

1. A statement advising the consumer of his or her right to select a certified collision repair shop for auto body damage.

2. A statement advising the consumer that an insurer may suggest that the work be done at a particular collision repair shop but may not require this work to be done at a particular collision repair shop.

3. A statement advising the consumer of his or her right to be informed about whether the auto body repairs will be made with new original equipment parts, new aftermarket parts, or other type of parts.

4. A statement confirming to the consumer that the repairer will, before the consumer takes custody of the repaired vehicle, provide the consumer with a certificate acknowledging that the repair has been made in accordance with all applicable safety standards.

5. Toll-free phone number and Internet address for reporting suspected fraud and other complaints and concerns about collision repair shops to the Advisory Board.

Inspections

7.  (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

(c) make reasonable inquiries.

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.

Duty to be certified

8.  (1)  No person shall operate a collision repair shop that is not certified by the Minister in accordance with the regulations.

Penalty

(2)  Every person who contravenes this section is guilty of an offence, and on conviction is liable to a fine not exceeding $10,000 for a first offence and not exceeding $50,000 or to imprisonment for not more than six months, or to both, for each subsequent offence.

Regulations

9.  (1)  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;

(c) prescribing anything that may be prescribed for the purposes of this Act;

(d) generally for implementing the provisions of this Act.

Fees

(2)  The Lieutenant Governor in Council may make regulations,

(a) requiring applicants for the certification of collision repair shops to pay reasonable fees to support the operation of the Advisory Board;

(b) to ensure that the Advisory Board is self-financing.

Insurance Act

10.  The Insurance Act is amended by adding the following section:

Payment for collision repair

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 to have the repair performed at any certified collision repair shop within the meaning of the Collision Repair Standards Act, 2002, subject to any rules that may be made in regulations under subsection (3).

Cooling-off period

(2)  Despite the terms of any policy, an insurer is not required to make a payment for the repair of damage to an automobile due to a collision where the automobile was towed to a collision repair shop or a collision reporting centre, and the automobile was not released for repair with the consent of both the insurer and the insured.

Regulations

(3)  The Lieutenant Governor in Council may make regulations setting out rules for the purposes of subsection (1).

Definition

(4)  In this section,

“collision” includes,

(a) collision with another vehicle,

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

(c) an act of theft or attempted theft,

(d) fire, or

(e) vandalism.

Commencement

11.  This Act comes into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

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