COLONIAL WEST CHEVROLET 314 John Fitch Highway Fitchburg, MA. 01420
Phone Number: 978-345-5532
FAX Number: 978-345-1152
COLONIAL CADILLAC
201 Cambridge Road Woburn, MA 01801
Phone Number: 781-935-7009
FAX Number: 781-933-7728
2018 MEMBERSHIP APPLICATION
As a member of the Alliance of Automotive Service Providers of Massachusetts (AASP/MA), I will abide by the association’s bylaws and code of ethics. I understand that membership in AASP of Massachusetts is non-transferable, and I must remain current with my dues in order to be a member in good standing I understand that if I discontinue my membership that I must immediately cease using any association promotions, logos or materials. Additionally, I understand that as part of my AASP of Massachusetts membership, I will receive New England Automotive Report, the official publication of AASP of Massachusetts, faxes, emails and other mailings.
Primary
Supporting the Future of Our Industry
The Collision Repair Education Foundation (CREF) will be hosting a Career Fair in Marlborough on April 26, and there’s no better opportunity to show your support for the future technicians of our industry than to attend As we approach this exciting event, I want to encourage all AASP/MA shops – and all association vendors – to really consider purchasing a table and being a part of the festivities.
This is our pool of future technicians! Supporting the collision industry voc-tech students is of paramount importance to our future as an industry and can benefit your own business in more ways than you think I was recently reading an article that used the phrase “grow your own,” and it stood out to me days after, serving as a great reminder with the Career Fair right on the horizon A shop owner had attended an event similar to CREF’s Career Fair and made a connection with a student who was really interested in getting into a shop After being mentored by the owner, this student was excited enough to start telling his friends looking to break into the industry about the great work environment this shop had created for him From there, the shop welcomed three more trade school students and created a mentoring program Now, the owner is growing his own technicians
PUBLISHER
Thomas Greco - thomas@grecopublishing com
SALES DIRECTOR
Alicia Figurelli - alicia@grecopublishing com
EDITORIAL DIRECTOR
Joel Gausten - joel@grecopublishing com
CREATIVE DIRECTOR
Lea Velocci - lea@grecopublishing com
EDITORIAL/CREATIVE COORDINATOR
Kristen Dalli - kristen@grecopublishing com
PRODUCTION
Donna Greco - donna@grecopublishing com
This story is not out of the realm of possibility for any one of us. There are a lot of diamonds in the rough out there who are waiting for the guidance and leadership your shop can provide For a lot of kids going to trade school, all it takes is making a connection – and the only way to do that is by engaging with them In speaking with Brandon Eckenrode at CREF recently, he told me he already had hundreds of students signed up to attend the Career Fair, which is even more of a reason to attend as a shop owner This event is well-attended, and your chances of helping to further along the careers of the next generation of repairers are very high
We want these students – these soon-to-be technicians – to be able to network with local shop owners and really get a feel for the industry so they can become productive, dedicated workers in the not-too distant future. The best way for that to happen is for our member shops to come out in droves to show these students what an incredible, motivating and fulfilling career they can have in the automotive repair industry.
AASP/MA PRESIDENT MOLLY BRODEUR is the Chief Operating Officer of Al Brodeur's Auto Body in Marlborough, MA. She can be reached at (508) 485-1082 or molly@albrodeur.com.
PRESIDENT
Molly Brodeur
VICE PRESIDENT
Adam Ioakim
SECRETARY
Gary Cloutier
TREASURER
Kevin Gallerani
LEGISLATIVE CHAIR
Peter Langone
IMMEDIATE PAST PRESIDENT
Paul Hendricks
Darlene Andrade
Matthew Ciaschini
Alex Falzone
Joshua Fuller
Kevin Kyes
Frank Patterson
Mike Penacho
MOLLY BRODEUR
ANNE LYNCH
What it Means to Be a Leader
Dear Members,
As I work to bring quality programming, benefits and communication to our members, I cannot help but think about how many decades have been spent trying to move this industry forward It also brings to mind the many leaders who have served tirelessly and given time, money, effort and commitment to do the same These peers in the collision repair profession are much more than Board members – they are leaders
From Bert Jansson, thenowner of Copeland Street Auto Body, who hired me for the Massachusetts Auto Body Association (MABA) at the end of the ’70s, right up to our current president, Molly Brodeur, these are people who wear the mantle They have used their own shops and customers to represent the widespread practices of insurers and demonstrate the policies affecting consumers on the use of aftermarket parts They have also attended government meetings to stand as the individuals representing hundreds of workers intent on providing safe, quality repairs. These are professionals driven to represent their customers and provide safety and quality to their products – and did I mention the money they’ve spent? They fund things, pay for meetings out of their own pocket, retain attorneys who ultimately win cases benefitting the entire industry and travel to informational, cutting-edge seminars They pay
and pay and pay again They are the true believers, and they stand arm in arm with their peers who carry the same loyalty and commitment they have demonstrated. If I listed them all, this message would be as long as Santa’s list Fast forward to 2018: Are you among those individuals who act valiantly for your profession? Do you attend, participate, donate, speak out and join the voice of AASP/MA? We need that You have no idea of the power of your collective voice I have worked in government for 40 years, and the “squeaky wheel” theory is still preeminent Those with cohesion to their peers, large numbers of members, strong advocacy and a boatload of facts making their arguments are the ones who make a difference. You have all of those things! You have a large, robust population of auto repair professionals, you have strong advocacy and you have the facts The only missing piece is cohesion to your peers. Everybody needs to
GET ON BOARD!
If we suddenly had thousands of members instead of a handful of loyalists, we could change a tide already shifting towards our arguments for safety, for consumers first and profits last Attorney Todd Tracy is a person making a difference, and he has found his loud and effective voice He wants to show you how to protect yourself, your customers and your business at our Spring Meeting Show up and stop waiting for the next guy to fix it. Be the guy NOW In the meantime, I will book Fenway Park as an event venue, since there should be hundreds of attendees hearing what he has to say Are you out there?
Warmest regards,
Anne Lynch, Executive Director
AASP/MA
EXECUTIVE DIRECTOR
ANNE LYNCH can be reached at (617) 574-0741 or via email at alynch@lynchassociates.com.
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ADALB Approves Changes to Complaint Application
At its February 27 meeting at the Division of Insurance in Boston, the Auto Damage Appraiser Licensing Board (ADALB) voted unanimously to approve revisions to its Complaint Application The vote changes the current language from, “I attest that the information provided is true, correct and complete to the best of my knowledge” to, “I affirm and verify under the pains and penalties of perjury that the information provided is true, correct and complete to the best of my knowledge. I am aware that a penalty of perjury may be imposed as provided for under M.G.L. Chapter 268, §1A when a statement or declaration signed under the penalties of perjury is willfully false in a material matter.”
ADALB member Rick Starbard
CREF Career Fair Set for April 26
On April 26, the Collision Repair Education Foundation (CREF) will host the Boston High School & College Transportation Career Fair at the Assabet Valley Technical High School in Marlborough The morning/afternoon event will place Massachusetts auto body, mechanical and transportation students in direct one-on-one contact with repair service facilities, insurers and other industry companies
AASP/MA member business
Fuller Auto Body and Collision Center (Auburn) will be returning to the Career Fair and is one of several area collision repair businesses already signed on to attend
“We believe very strongly in the Career Fair and educating current students,” says Kerri Cunningham, Fuller Auto Body and Collision Center ’s business development and marketing manager “About 50 percent of our [shop’s] workforce right now came from vocational schools; we recruited them, and they are longterm, dedicated employees It’s very beneficial for us to get in on that ground floor and offer the students an opportunity at establishing a long-term career ”
“There’s more out there in this industry than most students think there is The technical advancements are amazing We position ourselves to be there on the top of it, so we’d like to find some qualified employees and students who are willing to join our team and continue to meet the automotive needs of all of our customers as we have been doing for the last 104 years.”
Originally launched in 2014, the CREF Career Fair has been hosted nearly 100 times to date at a variety of vocational schools across the country According to CREF Director of Development Brandon Eckenrode, hundreds of students from throughout the Commonwealth are already committed to attending the Marlborough gathering –something that has caused tremendous excitement among the new and returning exhibitors
“The companies have been very appreciative, and we’re seeing a wide variety of industry segments represented ”
Fuller Auto Body and Collision Center has enjoyed a long and prosperous history with the vocational side of the industry The shop’s current production manager, Rick Horne, is a graduate of Assabet, while three current team members are working in the business’ refinishing and accounting departments through its ongoing co-op partnership with Bay Path Regional Vocational Technical High School. Tyler Warren, who went through the co-op program before being hired full-time at the shop, will be on hand at this year ’s Career Fair to share his experiences
“We thought it would be a great idea for him to come and talk to the students,” Cunningham says “It wasn’t long ago that he was one of them himself, and he has worked his way up from a lube tech in our oil change department to now being the lead in the refinishing department ”
In addition to participating in the Career Fair, Cunningham always has her door open to any Massachusetts automotive repair and/or service student who wants to check out Fuller Auto Body and Collision Center ’s extensive auto body, refinishing and mechanical divisions.
Exhibitor spots for the Career Fair were still available at press time. A $1,000 fee provides an exhibiting vendor with a display table and an electronic copy of the student résumé registration list The funds received from these exhibitor fees will help assist in the transportation needs of participating schools and provide special “tech” shirts for their students
In other CREF news, the Foundation is currently accepting applications for its 2018 Ultimate Collision Education Makeover school grants now through June 1 Last year, CREF announced more than $600,000 in grants supported by donations from industry partners and local I-CAR committee fundraising activities Awarded every fall during the annual SEMA Show, these grants of varying amounts help schools with needed tools, equipment, materials and supplies For more information, email Eckenrode at Brandon.Eckenrode@ed-foundation.org
Founded in 1991, the Collision Repair Education Foundation is a not-for-profit organization dedicated to supporting collision repair educational programs, schools and students to create qualified, entry-level employees and connect them with an array of career opportunities More information is available at CollisionEducation Foundation.org.
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A LEADER REFLECTS:
Catching
up with Paul Hendricks
Hendricks was honored during AASP/MAs 2016 Casino Night for his years of service to the industry.
Before his retirement from the collision repair field (and from his long-running business – Hendricks Auto Body in Uxbridge) in 2016, Paul Hendricks spent decades working on behalf of his fellow repairers through his involvement in the Massachusetts Auto Body Association (MABA) and later the Alliance of Automotive Service Providers of Massachusetts (AASP/MA). While serving as president of MABA, he was an instrumental part of the association’s merger with the Central Massachusetts Auto Rebuilders Association (CMARA) and AASP/MA in 2010. A true industry advocate who’s never been afraid to speak his mind, Hendricks looks back on his past as an association member, shares his thoughts on where the industry is today and offers advice for anyone looking to improve their standing in this profession.
New England Automotive Report: Obviously, many people in the industry know you through your time with MABA and later with AASP/MA. What led you to become involved in association life to begin with?
Paul Hendricks: Back in the ’70s, I was working in a body shop up in Worcester called Ace Auto Body, which was owned by Jim Angelico They were very involved in the association I would attend a million meetings, and I could see how these guys were sticking together. The first association was actually called the Massachusetts Auto Body Shop Owners Association – MABSOA. It changed to MABA in the mid-’80s. The guy I was working for was involved in the licensing of appraisers and the beginning of the association That’s basically where I got my start It was a whole different crew back then: Tom O’Malley, Brad Beaty, Joe Valarioti, Walter Thomas. I was the young kid on the block back then. I actually didn’t become a member of the Board until around 2000. I first got involved on the body side after I left Fireman’s Fund Insurance when they left the state.
NEAR: What ultimately led you to make collision repair your life’s work?
PH: I just loved cars, and I was always involved in the industry. In our generation in the ’60s, we raced and built cars. We were a speed generation; we had muscle cars I loved automobiles, so I stayed with it, but I was always on the administrative end of it I went to school and learned a lot about cars I used to teach the appraisal course for Northeastern University in Boston Later, I had my own book published for appraisers by the Sanger Corporation in the beginning of the ’90s; every student who took the course had to buy the book. I had four instructors working for me; it was great
NEAR: You were involved in MABA when the association merged with AASP/MA and CMARA a few years ago. How do you think this merger has ultimately impacted the collision repair industry in Massachusetts?
PH: It’s definitely been an asset to the industry The first question out of everybody’s mouth is, ‘What has the association done for me?’ How many times have we heard that in our lifetime? But if you go way back, we had zero regulation and zero people to fight for us. If we had an issue with an insurance company, we had no one to go to. There was nothing. There were 12 chapters in Massachusetts for MABA in the early ’80s In 1982, we lobbied to form the Auto Damage Appraiser Licensing Board [ADALB] Mike Dukakis was the governor; he was the one who appointed
everyone. Even though the Board was established, the state never funded the money, because there was no allocation for it The association had to fight to get that done so that the Board could actually work Without the ADALB, the insurance companies would just be running rampant and doing whatever they wanted. At least now they had someone to answer to.
I was fortunate enough to be the president of MABA when the merger happened It was all through the help of the Board of Directors It was a joint effort We knew that if we merged, we would have a statewide association representing us. AASP is national, of course, so it was important for us to do that. We needed to increase membership and get more people involved. [ThenAASP/MA President] Rick Starbard, [then-CMARA President] Tom Ricci and I had different ideas in some cases, but we knew we could all put it together as gentlemen – and we did I personally feel that it was one of the best things for the state.
NEAR: How are you enjoying your retirement?
PH: I love it! I’ve always had motorcycles, so I do a lot of riding I have no problem taking off for a week I have a brother in Florida, so I’ve been down there a few times. I joined a rod and gun club – I hadn’t shot a gun since I was in the military 50 years ago! I love it; I’m already on the Board of Directors there! I’m really enjoying myself
I still own an appraisal company called Technical Appraisal that I’ve had since the ’60s I still do arbitration and stated values through that There are a couple of shops I’m still friendly with that ask me to come over once in a while, and I still get phone calls from a few people in the industry.
NEAR: Since you’re still in touch with people, I’m sure you’re aware of the issues going on in the industry now
What do you see as the major things impacting the auto body field these days? How can the association work to address those matters moving forward?
PH: The Labor Rate is always an issue, and I think technology is another issue that shops are going to face. The smaller shops are going to have to learn how to better manage themselves. I think AASP/MA should be running management courses and educating people on their bottom lines and how to accurately write appraisals Hands-on education is the most important thing that associations can offer.
Everything I learned was through the associations. They say there’s strength in numbers. That’s true, but the numbers need to be educated
NEAR: When you look back on your years in the associations, how would you say being a part of those groups most impacted your success as a business owner?
PH: Being a part of the associations helped my business grow because I met other body shops The meetings are not a waste of time – either locally or nationally Every time I would go to a meeting, I would be sitting and talking with someone else. Again, that’s how I got into the industry – by going to meetings. We all have the same problems; education helps us immensely. It taught me that I’m the boss If you want an insurance company to run your business, go ahead, but I didn’t choose to get on any lists Because I was able to get educated, I got paid for everything that I did, and I knew how to climb the ladder I learned that through the associations. Educate yourself and educate the customer, and you will get what you want if you know you’re right.
Paul Hendricks (second from right) was an active part of the association for decades.
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LKQ Sues Homeland Security over Aftermarket Parts Seizure
Are aftermarket parts “virtually identical” to the original equipment manufacturer (OEM) products they are designed to emulate? If so, are the companies that import aftermarket products guilty of trademark infringement? These are the questions at the heart of an intriguing case currently unfolding in Delaware that could have a serious impact on the future of non-OEM parts in the American marketplace.
In February, LKQ Corporation and Keystone Automotive Industries, Inc. filed a lawsuit in the Delaware District Court against the United States Department of Homeland Security and Homeland Security Secretary Kirstjen Nielsen after thousands of non-OEM grilles that LKQ were importing began being seized by customs officers last spring under the guise of trademark infringement LKQ and Keystone call the detention and seizure of these items “arbitrary, capricious, an abuse of discretion or otherwise not in accordance with law ”
In April 2017, United States Customs and Border Protection (the largest federal law enforcement agency of the Department of Homeland Security) began what the suit calls “a campaign of erroneously applying the Tariff Act” to LKQ’s imported repair grilles. This campaign has since resulted in more than 165 seizures in California, Georgia and Minnesota and what LKQ and Keystone call “the unlawful detention, seizure and threatened forfeiture of thousands of LKQ’s products embodying hundreds of different grille designs.” In each instance, Customs and
Border Protection contended that the seized grilles were “counterfeit” of one or more of the registered and recorded automaker trademarks for Ford, BMW, Chrysler, Honda, Hyundai, Toyota and Mazda
According to a February 8 story on law360.com, LKQ is alleging that “the parts aren’t counterfeit because many final agency reports ‘concede’ that a number of them were not ‘virtually identical’ to the automakers’ trademarks.”
LKQ argues that the seized grilles did not infringe on trademarks for Ford and Chrysler grilles and “cannot be considered counterfeit because they are authorized to be manufactured, imported and sold pursuant to confidential design patent license agreements that LKQ entered into” with those automakers
Additionally, LKQ notes that it had contacted each of the remaining automakers to request that they provide consent to Customs and Border Protection for LKQ to import the non-OEM products However, only BMW did so by the time of the filing,
LKQ is seeking “relief from baseless and excessive fines,” the release of any detained, seized or “imminentlyto-be-forfeited” repair grilles and the waiver of any associated storage fees and costs. Additionally, they are asking to be awarded “damages in an amount to be determined in the course of litigation.”
New England Automotive Report’s requests to LKQ for a comment on the case were not returned by press time.
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As reported in our November 2017 issue (“Your Voice is Heard: AASP/MA Member-Driven Push Prompts Revised Honda Position Statement”), American Honda Motor Co recently made substantial revisions to its muchdiscussed 2016 position statement on scanning This came after New England Automotive Report received information from area shops that a few insurers were defending their non-payment for the procedure by stating that the document only applied to 2016-and-newer vehicles With Honda’s revised statement making it abundantly clear that all Honda or Acura vehicles capable of being scanned must have the procedure performed, there should have been little debate moving forward However, recent reports from Massachusetts repairers indicate that the manufacturer ’s efforts to address the scanning issue have fallen on deaf ears on more than one occasion
One of the repairers to bring the matter to our attention last year, AASP/MA Vice President Adam Ioakim, tells us that presenting the insurer with the revised Honda position statement (as well as our previous cover story on the subject) did nothing to resolve that
company’s refusal to pay
“They basically said they didn’t care, their position was the same and that the vehicle was too old to be scanned The attitude seems to be, ‘We’re not paying for this – what are you going to do about it?’”
Unfortunately (but not surprisingly), this is far from an isolated incident Ioakim says that a small group of carriers have taken a similar stance in regard to scanning, often arguing that OEM position statements are only a recommendation and not a requirement This ongoing problem has led the frustrated shop owner (and the rest of his team) to use a troubling saying around the office: “It’s not good enough to be right anymore.”
Despite this escalating resistance, Ioakim is unwilling to back down in his commitment to following OEM procedures When some insurers draw a line in the sand on scanning and other recommended operations, he notifies his customers of the insurer ’s deficiency and warns they will most likely have a balance bill if it can’t be resolved by the time the repairs are completed.
“We say to them, ‘You contracted with us, and we performed the repairs. Your insurance company didn’t reimburse you in full for the actual cost of your repairs ’ I don’t know what else to tell them Even if I was not a Honda-certified shop, I would still be performing the repair this way.”
Fortunately, this approach has generally been a success
“Ninety-nine percent of the customers who come to us know our reputation. We give them an excellent education about the fact that they came to us to repair their car safely and properly, and our goals may not always align with their insurer ’s. They are an insurer – not a repairer ”
With the reverberations of the recent John Eagle case causing many shops to re-think their obligations in the repair process, Ioakim isn’t about to take any chances with something as obviously necessary as performing
pre- and post-repair scans
“Frankly, we’re not going to take the risk. If a customer tells us they don’t want us to do scans, we’re most likely going to tell them to take their vehicle somewhere else. Even if they sign something that says they don’t want their car scanned, and you’re the expert and know better, should you really be okay with that?”
As OEMs continue to release position statements encouraging vehicle scanning, shops and insurers alike are poring over each and every word in these documents to help prove their standing. While the vast majority of automakers have stated on paper that shops must perform scans on their vehicles, a few instead use “recommended” or “highly recommended” in their verbiage – and that’s exactly what a small number of carriers are reportedly using to wiggle out of their financial obligation But shouldn’t “recommended” be enough to convince an insurer to agree to the importance of pre- and post-repair scans? Massachusetts-based attorney James Castleman thinks so
“Ultimately, it’s left to the repairer ’s best judgement. But obviously, if the manufacturer is recommending it, that sets the industry standard, in my opinion. If repairers are required to repair vehicles to the industry standard, they should be following the OEM recommendations
“I keep going back to the John Eagle case. If you don’t do it and there’s a safety issue you don’t pick up on, then who’s responsible? It might be an interesting conversation for shops to have with their liability carriers. What’s the exposure if they don’t do a scan and somebody gets hurt as a result of it?”
To illustrate the importance of following proper procedures, Castleman relayed a recent conversation he had with a shop owner who performed a scan on a vehicle after he installed an aftermarket bumper cover. The scan failed due to the fact that the bumper cover was a different weight than the
OEM version – something that could impact the performance of an airbag when it’s deployed.
“This shop owner said, ‘I don’t know if there’s anything in the car anymore that isn’t safety-related.’”
In addition to employing Ioakim’s aforementioned method of balancebilling the customer, Castleman suggests that shops file a complaint with the Auto Damage Appraiser Licensing Board (ADALB) if an appraiser fails to write for scanning or any other procedure that is necessary for a repair Additionally, he notes that shops can get customers to assign their rights to that business, which can then sue the insurer in small claims court for the short-pay
In addition to shops utilizing customer authorization forms to get vehicle owners on board with scanning, some repair facilities are going a step further by adding language in these documents that relieves them of liability in the event that a scan doesn’t pick up all the issues in a damaged automobile This could be viewed as a precautionary step for shops that use secondary market scanners that might not be updated as frequently as the automaker-approved equipment available in the marketplace – or even as a way to address a situation where an OEM tool experiences a technical issue Castleman suggests that things are not necessarily black and white when it comes to using this kind of wording to address aftermarket scan tools
“It becomes a question of what the industry standard is. If the industry accepts these secondary-market scanners because it’s really financially impossible for a shop to have scanning equipment from every manufacturer, is that the standard? The only way you’re going to determine that is when somebody gets sued someday and a jury decides
“If the industry standard is to use aftermarket equipment, I can see why it would be a good idea to let their
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800.247.3033
Fax: 508.651.6841
Hoffman Audi
700 Connecticut Blvd East Hartford, CT 06108
860.282.0191
Fax: 860.290.6355
www.hoffmanauto.com
IRA Audi 105 Andover Street Danvers, MA 01923
800.774.8411
Parts Direct: 978.605.2182 email: pwalke@iramotorgroup.com www.iraaudi.com
Mattie Audi
80 William S. Canning Blvd. Fall River, MA 02721
800.678.0914 Fax: 508.730.1283 www.mattieaudi.com
Audi Shrewsbury 780 Boston Turnpike Shrewsbury, MA 01545
Only Genuine Nissan Parts deliver the fit, reliability, and performance to meet your shop’s collision repair needs. So keep it original, and keep it real with Genuine Nissan Parts.
Contact these Nissan dealers for all your parts needs:
Kelly Nissan-Infiniti
155 Andover Street, RTE 114 Danvers, MA 01923
Main: 978-774-1000
Direct: 866-883-7093
Mastria Nissan 1305 New State Highway Raynham, MA 02767
Direct Toll Free: 800-248-2458
Direct Fax: 508-802-6118
E-mail: parts@mastrianissan.com
Web: www.mastria.com
Kelly Nissan of Lynnfield 275 Broadway (Route 1) Lynnfield, MA 01940
Toll Free: 1-800-698-9280
Fax: 781-598-8026
E-mail: BSherman@Kellyauto.com
Kelly Nissan of Woburn 95 Cedar Street Woburn, MA 01801
If you tow or store vehicles in Massachusetts, the general rule is that you can set your maximum charges for these services at whatever amount you choose. As long as you let the vehicle owner or their authorized representative know in advance what your charges are (either by having the person sign a repair order or another document agreeing to the charges or by posting them conspicuously in your shop), and as long as the owner or someone with their authority agrees to the services, you can set your rates at whatever you think you need to get.
That does not necessarily mean that a vehicle owner ’s insurer is going to pay your charges if the carrier thinks that they are unreasonable However, between you and the car owner (or any other authorized person who has placed the car in your
possession), there is a contractual obligation to pay the charges In fact, a federal statute enacted in 1995 prohibits states or other government authorities from limiting or otherwise regulating most tow and storage rates.
The major exception to the general rule is for vehicles that are involuntarily towed and stored This includes vehicles that are towed by order of the police or other public authority as well as vehicles that are towed because they are parked on private property without the authority of the property owner. Specifically, the federal statute says that the general rule “does not apply to the authority of a State or a political subdivision of a State to enact or enforce a law, regulation or other provision relating to the regulation of tow truck operations performed
without the prior consent or authorization of the owner or operator of the motor vehicle ”
Massachusetts, like most states, regulates both towing and storage rates in involuntarily settings. However, the manner in which Massachusetts regulates these rates is different for towing and storage
StoRAgE RAtES
For storage, there is a statute that sets a fixed maximum rate for involuntarily towed vehicles. To change the maximum storage rate requires the Massachusetts legislature to enact an amendment of the statute, something that is not an easy task In 1989, a maximum rate of $20 per 24hour period (not per day) was set in the statute. That rate remained constant for over 20 years until 2010, when the statute was finally amended
to allow a maximum rate of $35 per 24-hour period That continues to be the established maximum rate for storage of involuntarily towed vehicles today
Importantly, the maximum rate applies only to noncommercial vehicles with a maximum capacity of nine persons. No limit is set for the storage of commercial vehicles or passenger vehicles with a larger capacity.
Additionally, the maximum rate of $35 applies “only to lighted, outside storage facilities enclosed by a secure fence or other secure barrier at least six feet in height ” For other outside storage facilities, the maximum rate is only half that amount. Interestingly, the statute does not address a maximum rate for inside storage of an involuntarily towed vehicle.
tow RAtES
With regard to tow rates, the statute does not set a fixed rate but rather delegates the obligation and authority to set the maximum rates for involuntary towing of vehicles to the Massachusetts Department of Public Utilities (DPU) Notably, the statute also gives municipalities the right to set
local maximum tow rates if they do not exceed those set by the DPU
The DPU sets the maximum allowed rates for involuntary towing and related services by regulation. This includes setting rates for non-commercial and commercial towing as well as setting separate rates for mileage allowances, additional man hours needed and various other services that may vary from tow to tow One would think that it would be easier to amend a regulation in order to change established rates rather than to enact a statute, but that is not always the case While the DPU would have the power to change rates on its own, in reality, tow rates are changed only when an interested party petitions the DPU to do so. That interested party has always been the Statewide Towing Association (STA).
Prior to 2017, tow rates were last set by a change in the regulation made in 2004 However, there was an amendment to the governing regulation in 2008 that did allow a fuel surcharge adjustment based on the varying cost of diesel fuel In August 2013, STA filed a petition with the DPU to amend the applicable regulation, asking that
rates be raised across the board to reflect increased costs. The DPU did amend the regulation, but it took almost four years – until June of 2017 – to issue the final amended regulation
The 2017 regulation made various changes to acceptable maximum tow rates and also cleaned up the structure of the regulation, eliminating confusing “Note” adjustments and clarifying some definitions. Among the major changes in the regulation were the following:
The maximum allowed charge for a basic tow for either a commercial or noncommercial vehicle was raised from $90 to $108. A basic tow does not require any extraordinary services and includes towing of up to five miles and up to one hour of “service or waiting time ” Service or waiting time is the time spent by the tow carrier ’ s service vehicle at the scene of a tow waiting to provide service, winching or using the service vehicle’s industry standard tools or equipment
If service or waiting time exceeds an hour for non-commercial vehicles, the rate for additional waiting time went up from $35 to $42 per half hour. This charge cannot be made for trespass or snow removal tows.
If a tow is longer than five miles, the maximum charge for each additional mile was raised from $3 to $3 60 per mile for non-commercial vehicles and from $4 25 to $5 40 per mile for commercial tows As before, mileage is generally measured on a roundtrip basis from the carrier ’ s garage and back If the service vehicle is dispatched from a different location, the one-way mileage may be doubled. If more than one non-commercial vehicle is transported between cities or towns, and if mileage is more than five miles, the vehicle’s GPS system is to be used instead of using the old MILO Mileage Guide to calculate the mileage, doubling a one-way mileage measure to reach the roundtrip charge allowed
When additional labor is needed to remove a non-commercial disabled vehicle from a scene, the maximum rate per man hour (or part thereof) went up from $32 to $38 40 Additional labor time may be charged from the time the person leaves the carrier ’ s garage until he returns.
If an additional service vehicle is needed for a non-commercial tow, then the maximum charge for the additional vehicle now cannot exceed $108, up from the prior $90 allowed charge. This is another charge that cannot be made for trespass or snow removal tows
For non-commercial vehicles, if extraordinary or additional services are needed that are beyond the capabilities of the carrier, then the carrier may charge for those services at their actual cost Such services may include renting cranes or bulldozers, employing specialized labor or utilizing HAZMAT services.
For commercial vehicles, as before, there is little limit on reasonable charges that may be made for “recovery” of a disabled vehicle Recovery includes wrecker working, winching, waiting time, clean up time and the provision of special equipment needed to place a disabled motor vehicle in position to be towed. For these services for a commercial vehicle, the carrier can establish the charges This part of the regulation recognizes the complexity of towing various types of commercial vehicles from diverse sites and in unique situations.
The fuel surcharge provision of the regulation has been retained. It now, however, is applicable only when the US Department of Energy-published price of diesel fuel exceeds $2 622 per gallon rather than the prior $1 7606 per gallon This reflects the embedded fuel charge assumed by the regulation in setting the newly allowed rates. The complex formula for determining the actual fuel surcharge has also been tweaked based on the new baseline fuel price and newly calculated embedded fuel charges
As before, while not in the regulation, there are certain additional fees that the DPU has allowed to be charged, as stated in a separate opinion letter from a few years ago. These include reasonable gate or yard fees and other incidental fees if (to the extent practicable) the tow carrier notifies the vehicle owner or operator, insurers and police in advance of its intention to charge these fees.
Boston High School & College Transportation Career Fair
Thursday, April 26, 2018
Assabet Valley Technical High School 215 Fitchburg St. - Marlborough
The Collision Repair Education Foundation will be organizing a transportation (collision, auto service, heavy duty, etc) career fair in the Boston area on April 26 that will be attended by hundreds of high school & college students and industry employers. Don’t miss out on this opportunity to meet industry employers.
Event Details
• 8:30am-2pm - Event open to students to attend and meet industry employers.
• All grade levels welcome to attend, not just seniors.
• 20+ industry vendors/employers are anticipated to be at the event.
• Lunch will be provided for all attending students.
Funds raised during this event will support local high school and college collision repair school programs and students. www.CollisionEducationFoundation.org
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customers know that they’re using this equipment and that there is a chance it may not catch everything ”
As shops and insurers continue to battle over word usage in position statements – and what each side considers to be fair compensation for scanning – the fact remains that modern technology in automobiles necessitates a much closer diagnostic effort than ever before. Perhaps the greatest weapon in the war between shops and insurers on scanning is basic common sense.
In the words of James Castleman: “If you have certain symptoms and you go to a doctor and it’s recommended – but not required that you have an X-ray, isn’t it really the same thing as a car that needs a scan so the shop can really find out what the problems are?”
