SECOND READING OF COLLISION REPAIR STANDARDS ACT SUCCESSFUL

Here's a scenario few of us want to think about.

You've had an accident. In a perfect world you would have your vehicle towed to the original dealership and have its repair shop do the work. After all, you can be assured it's licensed, has the proper equipment, trained staff, properly disposes of hazardous wastes and so on.

But instead, you're miles away from the dealership, seemingly in the middle of nowhere, and are being unceremoniously towed to the nearest auto body shop. You're not familiar with the area or the people who run the shop.

You're uneasy and dozens of questions flash through your mind. How much extra is this going to cost me? Is this shop dependable? Do they guarantee their work? Do they have the right equipment and parts? How well are the body repair technicians trained? Will the repairs be safe?

Here are the hard facts. There are 2,800 collision repair shops in Ontario. And while dealership collision repair shops do adhere to the strictest of standards, there are really no consistent or enforced standards out there.

Things like customer codes of practice (i.e. consumer protection), equipment, training of staff, quality of the repair, conforming to labour and environmental laws and so on, are left to the interpretation of the owner/operator.

This is bad for the consumer and bad for our industry.

So, for the past several years, Toronto and Ontario Automobile Dealers have been working with government, consumers and various other key organizations on the best ways for the collision repair industry to manage itself. The result?

New bill, new standards
On June 27, 2002, MPP Frank Klees (PC) introduced a new bill in the Ontario Legislature designed to bring much-needed standards to the auto body industry. It's called the Collision Repair Standards Act, 2002.

"The new legislation is a positive step and will mean better protection for all consumers when it comes to safety and repairs after an accident," says John Norris, Executive Director of the Collision Industry Action Group (CIAG), the largest collision repair and auto refinish trade association in Canada.

"There'll be fewer consumer complaints because all shops will adhere to strict standards and established codes of practice. For example, each will have to possess and maintain the proper equipment to perform a specific repair. Shops must employ licensed staff and must conform to strict environmental protection standards."

Norris is quick to point out that the legislation was not conceived in a vacuum. "It's the result of four to five years of ongoing efforts about industry management between government, consumers, the Ontario & Toronto Auto Dealers Association, the Collision Industry Standards Council of Ontario (CISCO), the Collision Industry Action Group (CIAG) and various other collision repair associations," he says.

No standards, no reimbursement The real "teeth" to the act involves the often maligned insurance industry. Klees also introduced a complementary change to the existing Insurance Act that will force car insurers in Ontario to reimburse shops for accident repairs only if they fully comply to all the standards that will be established (66% of all collision repair in Ontario involves insurance claims).

A very important reason why auto dealers endorsed and supported this legislation is SAFETY. Your vehicle must be repaired properly. There is no room for compromise - it must be brought back to its pre-accident condition, or no payment will be issued. Faulty repairs can render your vehicle a safety hazard for you as well as for others on the road.

How will the act be implemented?

An Advisory Board will set the standards for all collision repair and auto body shops in Ontario. This process is not really new - Manitoba, Saskatchewan and British Columbia currently operate in this manner and consumers there are reaping the benefits.

The TADA and OADA members fully support this legislation and realize the enormous benefits to you, the consumer, and to our industry as a whole.

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In a major show of support for the collision repair industry accreditation program, senior Ontario government staff met with CISCO supporters to offer suggestions on next steps.

CISCO, The Collision Industry Standards Council of Ontario Inc., is the group representing the collision repair, autobody and auto refinish industry in Ontario, in moving forward with an accreditation program of facilities to assist consumers.

A number of senior staff from the Ministry of Government Services, Consumer Protection Branch, including Assistant Deputy Minister Rob Dowler, met with a room full of CISCO supporters who came with answers to previous government questions on the program.

CISCO's efforts are based on requesting the government to move ahead and proclaim the already passed, Collision Repair Standards Act of 2002, that would set the stage for industry accreditation.

Mr. Dowler congratulated CISCO on the wide range of support that they had obtained and offered recommendations on what the staff needed next in order to implement a self-managed program.

Alex Szabo, President of CISCO, thanked the many supporters for their strong effort in continuing to help CISCO. At the meeting offering their encouragement to the government were representatives from:

Ontario Automobile Dealers Association and Toronto association
Consumers Council of Canada
Canadian Automobile Association
Ontario Chamber of Commerce
Hamilton district Autobody Repair Association and www.ciia.com

Included in a package presented to the Ministry were letters of support from:

Ontario Motor Vehicle Industry Council
Canadian Collision Industry Forum
Insurance Bureau of Canada

"This wide-range of support will help the industry identify to government how important it is to move forward with mandatory shop accreditation and self-management to provide a level-playing field for industry and better consumer protection. Government is certainly eager to look at underground operations and abuse issues." said Mr. Szabo.

For more information on CISCO , please see: http://www.ciia.com/provinces/ontario/cisco.html

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Dear Alex Szabo:

In my role as Chairman of the Canadian Collision Industry Forum, I am pleased to provide you my support and that of many of the key stakeholders that participate in our forum.

We know and understand the value of becoming a self-managed business sector. Taking control of the future of our industry is important for Ontario consumers and industry stakeholders as well as for key stakeholders in the rest of Canada.

We know that model works well. There is clear evidence that given the opportunity to establish a self managed program in Ontario, all benefit. Industry assumes the costs of implementation and managing it, while the Ontario consumer benefits.

If there is any further assistance I can provide you, please do not hesitate to contact me.

Best regards

Larry Jefferies

Chairman, Canadian Collision Industry Forum

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OMVIC letter supports collision repair self-management

I am pleased to add my name in support of your initiative to have the collision repair sector become a self-managed business sector.

Each of Ontario's self-managed sectors - real estate, travel, motor vehicle sales - have dramatically improved the level of consumer protection and business professionalism. In all cases these improvements have not cost the taxpayer a dime! The costs have been borne by the sector itself. I would say that even if a sector requires initial funding in order to get started down the road to self-management, it's an investment that bears significant positive return.

It's a formula that works well, and this has been documented and supported by an independent consultant study report of a few years ago. Everyone wins when a business sector assumes responsibility for its own compliance with law: consumers, business participants, government and taxpayers.

I wish you well and if I may be of assistance in any way, please don't hesitate to call on me.

Carl Compton
Executive Director
Ontario Motor Vehicle Industry Council

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By Alex Szabo

Mandatory standards and related issues such as accreditation are on the minds of many industry stakeholders. As part of our ongoing coverage of this vital topic, we have asked Alex Szabo, Owner/Operator of Dundas Valley Collision Centre and President of the Collision Industry Standards Council of Ontario (CISCO) to provide us with an update on the situation as he sees it in Ontario.

Collision Repair magazine welcomes submissions on this topic from all members of industry, in every area of the country. Submissions should be sent to Mike Davey via e-mail at editor@collisionrepairmag.com.

Industry self-managed accreditation in Ontario looked feasible. During the NDP's term as the government of Ontario, MPP Brian Charlton was ready to proceed with a bill reflecting an industry-submitted environmental compliance proposal, that would see environmental regulations and permitting handled by industry. When the NDP did not get re-elected, we were back to looking for a new champion for our cause.

Advocacy
We continued working with the bureaucrats and advocating our position with government, when in 1998 the Hon. Rob Sampson, Conservative Minister responsible for insurance, and the Hon. Frank Klees came forward to help our industry towards self-management.Fourteen associations across Ontario sent their first representatives and CISCO was created. For the next three years the CISCO Board worked with the Ministry of Finance, insurers, consumer
groups and others in developing a mandatory accreditation and self-management proposal. We consulted the collision repair industry across Ontario through 25 town hall meetings and received overwhelming support for our proposal.

Change
With this proposal completed in 2002, it was used as the basis for a private-members Bill (Bill 186- the Collision Repair Standards Act) and passed unanimously through the house at Queens Park, on December 12, 2002 Good things and change takes time with government. The Conservative Minister of Consumer Business Services, the Hon. Tim Hudak, was unwilling to proclaim Bill 186 into law, believing that the Bill had internal flaws and unknown
costs to government, and having a full political agenda at the same time, government bureaucrats were not eager to work on the Bill. Another election brought the Liberals to power and working to proclaim the Bill was CISCO's agenda once again. MPP Ted McMeeken was appointed as Parliamentary Assistant to the Minister of Consumer Business Services. After a number of meetings with Ted it was clear he has a genuine interest and concern for fairness and consumer protection. "I applaud the work of
CISCO on behalf of the Auto Body Repair Industry," says Ted.

The right thing
Ted seems to understand that there are millions of dollars the government is not receiving in taxes and contributions from the underground economy, that there are environmental abuses taking place, and that the "backyard" shops that don't have needed equipment, trades-licensed staff, or for that matter ethical business practices are taking business from shops that do the right things. How can good shops compete with those who are not on a level playing field, and do not repair vehicles properly or according to the estimate? With MPP McMeekin's help CISCO met with senior bureaucrats from his Ministry to examine perceived problems that prevented the Bill from moving forward. The meeting showed us that we must convince government to either amend or develop a new Bill. Since we don't have expertise in this area, we hired The Pathway Group consulting firm to help us in certain areas. We have support and continue meeting with the insurance industry, consumer
groups, suppliers and manufacturers to stand with us and ask the government to move forward.

Difficult times
I believe the timing is right to adopt our proposal. We have a comprehensive package developed by the industry that reflects our vision for the future, with overwhelming support from our industry partners. With ongoing meetings with government we believe our package will move forward. With sales in decline, now is an especially difficult time in our industry. We have to ensure that the legitimate operators who invest in their honest businesses can continue to survive and indeed, prosper.

Thanks to Collision Repair Magazine

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CISCO PROVIDES UPDATE FOR ONTARIO SHOPS

May 31, 2005

An update to the Ontario collision repair industry from the Collision Industry Standards Council of Ontario (CISCO) representing collision repair facilities in this province.

In 1999, representative of all local collision repair trade associations in Ontario, formally incorporated the non-profit Collision Industry Standards Council of Ontario (CISCO), to represent the auto body, collision repair and auto refinish industry. CISCO had one goal - the establishment of legislated self-managed shop accreditation program. The vision of an industry-managed provincial-wide voice of professional, competent and caring collision repairers operating on a level-playing field of fairness was the motivator.

The goal was the passage of legislation at Queen's Park to put into form a Bill that would ensure self-management and a series of mandatory shop standards for equipment, legal compliance and customer service that were fair and reasonable, protected the public and encouraged good and honest operations in the industry.

Twenty-five stakeholder meetings were conducted, insurer and government organizations consulted and in December 2002, the legislature approved a private members' Bill introduced by Conservative MPP'S Frank Klees and Rob Sampson - Bill 186, the Collision Repair Standards Act (2002). Although celebrated by industry, the Act has never been proclaimed and efforts by CISCO to encourage government enthusiasm to put the Bill into force continue to be met with reluctance.

Segments of the Collision Repair Standards Act have been implemented in other legislation - provincial controls on "bandit" towing are in front of Cabinet, disclosure of aftermarket parts and full identification of repair costs to consumers takes effect July 30, CISCO standards have been accepted by other national organizations and insurance companies and municipal By-Laws have adopted CISCO's standards as their own. Despite these successes, we still have not achieved the industry dreams of a self-managed provincially mandated program.

We want to move forward with identifying to government the advantages of the implementation of Bill 186, and need your help. Consultants, lobbyists, meetings and efforts to attract other levels of support are expensive, and we are asking for your contribution to CISCO, to allow us to help our industry. We have to gain control and direction over our industry. We have invested our lives and our children's future into our shops, only to watch the backyard, illegitimate shops take our business away. How can we compete with shops that do not pay taxes, and perform improper repairs? Others have controlled and made decisions that have not always been in our best interests and we have to stand together as an industry so that we can control the direction of our businesses. In 1999 you chose twelve individuals through your local associations, listed below, who have unselfishly spent many hours over the last six years away from their businesses to help all of us. Unfortunately, it takes money to take action, and while most of us have everything invested our businesses, considering the size of our current investments, a donation to CISCO is the best investment we can ever make for the future.

Please help us with your contribution of $100.00, $150.00 or $200.00 or more. Cheques made payable to CISCO can be forwarded to 34 Plaza Drive, P.O. Box 63051 Dundas, Ontario L9H 6Y3.

Information on CISCO can be found at www.ciia.com/provinces/ontario/cisco.html.

Thank you,
On Behalf of the Board of Directors,

Tony Canade, Wes Killins, Randy Sundell, Bill Davis, John Norris, Don Teevens
Brian Good, John Reiner, Mike Wilson, Walter Grego, Doug Rothwell

Alex Szabo
CISCO President
905-627-5458

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For a number of years the collision repair industry have talked about the need for greater regulation to:
(1) Improve marketplace standards
(2) Ensure safe and quality repairs
(3) Create a fair and level playing field through compliance to uniform standards for the industry and consumers
(4) Enhance consumer confidence and protection
(5) Ensure that all repair facilities comply with the laws that regulate the industry

As a result of the efforts of many industry representatives, government and insurance industry support for a collision industry accreditation and self-management program has been received.

The Collision Industry Standards Council (CISCO) comprises of representatives from industry trade associations representing repair shop owners across Ontario, as well as representatives from government and the insurance industry that have worked to develop industry accreditation standards and code of ethics. CISCO is a non-profit corporation that will run the accreditation and self-management program.

2. Does the government support the work of CISCO?

YES. The government has indicated it will pass legislation to require all collision repair facilities to be accredited and delegate management of the program to CISCO.

3. Does the Insurance Industry support CISCO?

YES. The Insurance Bureau of Canada supports accreditation, and has provided representatives and financial support to the development of CISCO.
I.B.C. representatives will be part of the CISCO Board.

4. Is CISCO a Trade Association?

NO. The Collision Industry Standards Council of Ontario is an Administrative Authority consisting of representatives from known active trade associations across the province. It has been established to accredit collision repair facilities.

The establishment of a provincial trade association is planned. It will be known as the Collision Operators of Ontario (COO).

5. Do I have to belong to a Trade Association to become a member of CISCO?

NO. The Collision Industry Standards Council of Ontario accreditation program is for all collision repair facilities in Ontario. A CISCO member can choose to be a member of a trade association in their area, but this will have no bearing on the accreditation of their collision repair facility.

6. How were the standards developed?

The CISCO committee reviewed existing standards and models from Canada and the U.S.A. The committee reviewed these standards with their association members.

A draft of the standards adapted by the committee was sent out to over 3,000 industry members for review. Town Hall meetings were conducted across the province.

The CISCO committee did not create new regulations. The accreditation standards reflect existing laws and regulation. The equipment standards were accepted by a vast majority of those who participated in the consultation process as the minimum requirements to complete safe and quality repairs.

7. How much will the CISCO program cost?

The annual accreditation fee will be as follows:

By employees incl. Contract workers Fee

1-3 $300
4-9 $600
10-20 (over) $900

The annual fee will be used for the list below:

(1) Validating criteria for facility accreditation (including inspections)
(2) On-going administration of the CISCO program which includes:
---(a) Assisting shops to meet accreditation criteria
---(b) Inspections & Enforcement programs to ensure on-going compliance
---(c) Dispute resolution
---(d) Communications to the industry
---(e) Industry education and training
---(f) Consumer education
---(g) Compensation Fun

8. What is the accreditation and why must it be mandatory?

Accreditation is the process of ensuring that collision repair facilities have the equipment and personnel necessary to make safe and quality collision repairs. It is also an ongoing process to ensure that collision repair facilities comply with the standards, code of ethics, and Consumer Bill of Rights.

It must be mandatory to ensure that all facilities play by the same rules and to ensure that there is a uniform level of consumer protection across Ontario.

9. What if I am accredited by another Accreditation Program, or have a municipal license?

If you are accredited or licensed by a municipality you still must be accredited by CISCO to comply with the new Collision Repair Act.

To become accredited by CISCO you must still apply to the CISCO program (and pay the application fee), and you must meet all criteria related to application processing and site inspections.

10. What if I can't comply with the CISCO Accreditation Standards?

The CISCO committee did not create new regulations. The accreditation standards reflect existing laws and regulations. The equipment standards were accepted by a vast majority of those who participated in the consultation process as the minimum requirements to complete safe and quality repairs.

It is an objective of the Collision Industry Standards Council of Ontario to assist industry members in meeting accreditation criteria. As the CISCO administration validates criteria for accreditation, it will advise facility owners how to become compliant to the standards.

11. What happens if I refuse to apply or operate without a license?

To operate an auto collision, auto body, auto body and refinishing or auto refinishing facilities in Ontario the repair facility must be accredited by CISCO. Shops that refuse to apply or attempt to operate without a license from CISCO may be fined and the owners may be fined and/or imprisoned.

12. How will CISCO enforce compliance?

CISCO will use the initial application forms and a series of inspections to ensure initial compliance.

CISCO will then undertake a series of random inspections to ensure continued compliance and quality of repairs. CISCO will also respond to complaints from consumers and from within the industry.

13. How will CISCO deal with unethical operations of facilities that don't comply with program?

The new Collision Repair Act will require all facilities to be accredited and comply with the program. The Act will provide that every facility owner or officer who operates without an accreditation license is guilty of an office and, on conviction, is liable to a fine of $25,000.00 if a person, or up to $100,000.00 if a corporation, or imprisonment for up to one year, or both.

14. How will CISCO discipline a shop that fails to comply?

A formal complaints and discipline process will be established. CISCO will investigate complaints or matters of non-compliance. If a facility is found not to comply it will be required to comply and be subject to penalties and possible license suspensions for varying periods of time.

15. Can shops appeal if CISCO decides to not accredit them?

YES. Shops can appeal to the Commercial Registration Appeals Tribunal.

16. Why is accreditation good for consumers?

It will ensure that all collision repair facilities provide safe and quality repairs.

It will ensure that all facilities comply with fair business practices and a Consumer Bill of Rights that provide uniform warranties. Consumers will be protected from fly-by-night operations. Consumers' right to choose a collision repair facility will be protected.

17. Do consumers get new rights?

YES. Under the new code of Ethics and Consumers' Bill of rights, consumers will get new rights to safe, quality repairs that will be protected by warranties.

Consumers will get new rights to complain about collision repair facility work and business practices.

18. What are consumer rights if they disagree with the quality of repair work done?

First, they should attempt to resolve the matter with the facility, involving their insurance agent or broker. If this fails, CISCO will attempt to mediate a satisfactory resolution.

If a mediated resolution cannot be obtained, the consumer can lay a complaint and, where appropriate, CISCO can order restitution.

19. When will restitution be ordered?

Where CISCO determines that safe and quality repairs have not been made at the usually accepted industry level, it will order remedial work or restitution as appropriate in the individual circumstance.

20. Will OEM parts be required for use in all vehicle repairs?

Collision repair shops will use the parts that have been specified by the consumer or their insurance policy.

21. Will accreditation increase auto premiums?

Accreditation should not increase auto premiums. Accreditation may provide for a reduction in premiums as the safety and quality of repairs increase.

The accreditation program may also reduce the need for individual insurance companies "re-inspection programs".

22. Will accreditation put small repair shops out of business?

Accreditation will not put any repair shops out of business that meet the minimum requirements for collision repair equipment and personnel that are necessary to complete safe and quality repairs.

CISCO has not created any new laws. It will simply require all facilities to comply with existing provincial legislation and the CISCO Consumer Bill of Rights.

The CISCO program will come into effect in two steps. During Phase 1, facilities will be inspected and will be notified of any items that are required to become accredited. There will be a period of perhaps up to six months for facilities to become compliant before Phase 2 enforcement comes into effect.

23. Why does a small shop have to meet the same standards as a large facility?

Small shops have to meet the minimum equipment and other standards that are necessary to provide safe and quality repairs. Shops without this equipment put consumers at risk

24. When will facilities need more than one license?

Facilities will need a CISCO accreditation license and will have to comply with other applicable laws like a business registration number, sales tax, GST, etc.

Facilities will also require a municipal business license where required. However, municipal accreditation programs will no longer be required when the CISCO program is operational.

25. How will CISCO help facilities to meet the standards?

CISCO inspectors will advise facilities about any compliance issues and offer assistance to shop owners to meet the standards by advising them of industry accepted equipment and standards as appropriate.

26. How will accident scene solicitation be stopped?

CISCO will investigate complaints from consumers and the industry, and levy fines and other penalties as necessary.

27. Will accreditation put an end to preferred shops?

The CISCO program cannot put an end to preferred shops. The Competition Bureau has ruled that directing consumers to preferred auto body repair shops has not substantially lessened competition.

However, the CISCO program will ensure that all repairs are safe and of high quality.

CISCO will also ensure that consumers are aware of their right to choose any accredited facility and will work with the insurance industry to ensure this right is protected.

28. Who administers the CISCO program?

The Collision Industry Standards Council of Ontario Board of Directors has been established. The trade associations on the steering committee elected the initial board members.

This administrative authority will be responsible for setting accreditation standards; inspections and enforcement; a consumer and industry complaint process; education and training and other industry related matters.

29. When will accreditation be introduced?

The collision repair industry hopes that the Collision Repair Act will be passed early in the year 2000 and that the program will be fully operational by the fall of 2000.

30. How can shops provide input to shape the program?

The CISCO program is being developed by representatives of local Collision Repair Associations from across Ontario.

A series of Town Hall meetings have already been held.

31. How do I get accredited and how will the Accreditation Standards and Code of Ethics be enforced?

The first step is the confirmation of:

(1) Business Identification
(2) Employee Identification
(3) Compliance with existing Federal, Provincial and Local regulations
(4) Compliance to collision repair and auto refinishing equipment standards

This is done through the application process.

The next step requires and agent of CISCO to inspect the facility to validate compliance to the 'accreditation standards'

The facility must meet compliance criteria at both stages before it can become accredited. To ensure on-going compliance, CISCO will, periodically re-inspect "Accredited" facilities to ensure they are still compliant to 'accreditation standards and code of ethics'. CISCO may also revisit a facility as part of the complaint mediation process.

On an annual basis, facilities will be required to submit a renewal application to reaffirm compliance information.

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The Proposal

This document sets out a proposal to regulate the collision repair industry. The main features of the proposal include:

1. Enactment of the collision repair act which would require all collision repair facilities to be accredited and comply with uniform accreditation standards, a code of ethics and a consumer bill of rights.

2. Appointment of the Collision Industry Standards Council of Ontario, consisting of collision repair facility owners / managers, and representatives of the insurance industry, government and consumers, to manage that act on behalf of the government consistent with other self-managed industries like travel, motor vehicle dealers and real estate.

The Case for Regulation

The collision Repair Industry is a multi-billion dollar industry consisting of approximately 3000 repair facilities in Ontario that employ in excess of twenty thousand workers. It directly affects the lives of hundreds of thousands of Ontario consumers that are involved in collisions or otherwise require their vehicles to be repaired or refinished every year. The industry also impacts on the safety of all other motorists and passengers in relation to the safety and quality of the repairs made to vehicles that return to the road.

There is a plethora of legislation and numerous municipal by-laws that regulate the industry in some way. This legislation deals with consumer protection, environmental concerns, labour and apprenticeship, taxation and hundreds of other issues. However, in spite of its impact on the economy and public safety, regulation of the industry is fragmented, uneven and ineffective.

The current regulatory environment has created a myriad of problems for consumers, collision repair facilities, the insurance industry, and government. All recognize the need to create a new regulatory regime that will enhance consumer protection and create a fair level playing field through compliance to uniform standards.

From the government perspective, a Summary Report prepared by Mr. Frank Klees, MPP York MacKenzie, in March 1998 for the Honourable Rob Sampson, indicates a broad consensus for province-wide accreditation of collision repair shops. The report cites the need to increase consumer protection and deal with industry competition issues as reasons to implement province-wide accreditation. It states the preferred option if an industry self-managed model, under which the industry would play a lead role in organization, funding, and self-compliance.

Several ministries have also expressed the need for regulation of the industry to deal with issues relating to protection of the environment, labour and apprenticeship training, taxation, occupational health and safety, and transportation. Some have expressed interest in contracting with a new industry-driven regulatory agency to carry our their enforcement programs in a cost-effective and efficient manner.

From the Collision Repair Industry perspective, the desire for accreditation and self-management stems from the need to ensure that all repair facilities comply with the laws that regulate the industry and thereby provide added consumer protection. Several industry-wide meetings have been held with overwhelming support for accreditation. In recognition of the need to regulate the industry consistently and fairly, the industry created the Collision Industry Standards Council of Ontario (CISCO), comprising representatives of 15 Associations covering the province, for the sole purpose of developing and implementing an accreditation and self-management program.

From the Insurance Industry's perspective, the Insurance Bureau of Canada has expressed its support of an accreditation program. The IBC has been a party to the ongoing discussions since the beginning. In March 1999, it joined with CISCO at the request of the Honourable Rob Sampson to finalize a proposal to provide a high level of consumer protection. The proposal that has been developed will improve the quality and consistency of repair and benefit both insurers and consumers.

Finally, from the consumers' perspective, there are two issues. First, there are numerous reports, letters to the editor, letters to MPPs and media reports about the need to improve the collision repair industry. Secondly, various concerns have been expressed about the quality of repair and safety of improperly repaired vehicles that put other drivers and passengers at risk.

The Collision Industry Steering Committee was formed in May 1998 and was incorporated as the Collision Industry Standards Council of Ontario (CISCO) in February 1999. It has developed this self-managed accreditation program to achieve a fair, safe, and informed marketplace, which supports a competitive economy. CISCO has consulted extensively with the Insurance Bureau of Canada, The Canadian Automobile Association, several ministries, consumer groups and the collision industry at large.

The 15 associations comprising CISCO, representing a significant portion of the industry, believe that mandatory accreditation under a provincial act (e.g., a new Collision Repair Act) is essential. Other options such as a voluntary industry program or regulations under The Insurance Act have been considered, but none will achieve the 100% compliance to uniform standards, increase consumer protection and build confidence in the industry to ensure the success of this program.

Only a mandatory program will ensure that consumers from Parry Sound to Peterborough, North Bay to Newmarket, and all across the province, will have the same level of consumer protection and that collision repair shops play by the same rules.

The Current Environment

Although there is a mountain of legislation that pertains to the Collision Repair Industry in Ontario it is relatively unregulated. While the Motor Vehicle Repair Act, environmental protection, trades and apprenticeship, taxation, and other legislation and regulations apply to the collision repair operations, there is little inspection or enforcement carried out in the absence of a provincial accreditation and licensing system.

It is estimated there are approximately 3,000 collision repair facilities in Ontario. However, few municipalities have by-laws regulating their business practices and there is little or no enforcement. For example, there are approximately 1,500 collision repair facilities in the various municipalities across the Greater Toronto Area, of which less than half are properly municipally licensed.

There are approximately 20,000 persons employed in the collision repair industry. Many of these employees are required to be licensed trades persons. But they are not.

Most Facilities (64%) are small, doing less then $500,000 in sales volume. Twenty-eight percent (28%) do between $500,000 and $1.5 million, and eight percent (8%) do more then $1.5 million. Ensuring that all tax, employee health, WSIB, and other obligations are remitted on a sonsistent basis is a challenge.

Marketplace Problems

The collision repair industry comprises:

• Full collision repair and refinishing facilities
• Auto Body and refinishing facilities only
• Collision repair only facilities
• Auto Body only facilities
• Refinishing only facilities
• Glass facilities
• Facilities that do mechanical repairs on a sub-contract basis

The major problems in the marketplace relate to:

1. Substandard or unsafe repairs due to lack or regulation and inspection, and pressure to cut costs
2. Unfair competition between ethical repair facilities and unlicenced, unregulated "back street" shops
3. Non-compliance with, and enforcement of, existing provincial environmental, labour, and other legislation
4. Lack of uniformity in licensing requirements across the province from municipality to municipality
5. Lack of a Consumer Bill or Rights for repair that provide for safe and quality repairs

Unsafe Repairs

The absence of business standards, inspection, and enforcement creates situations where consumers may receive substandard repairs, parts and materials or poor workmanship, which may result in safety problems and erosion of the value of their assets.

Major concerns have been documented where substandard work has been performed and shows up a year or more after warranty periods expire. For a variety of reasons, including pressure to cut costs, some repair shops use inappropriate parts and workmanship that result in financial losses to consumers and unsafe vehicles returning to the road.

An industry self-management program would require accredited facilities to adhere to strict business standards, code of ethics, and Consumer Bill of Rights to ensure consumers receive safe and high quality repairs. In addition, a workmanship warranty program would be made mandatory. These measures may reduce the number of vehicles insurers need to re-inspect.

Further, to protect consumers from significant financial loss in the even a collision repair facility goes bankrupt and cannot complete all necessary remedial work.

Unfair Competition

Unfair competition does exist in the collision repair industry.

Ethical repair facilities comply with the many federal, provincial and municipal regulations voluntarily. They ensure that consumers receive safe and quality repairs. They provide lifetime warranties for they work. They pay their taxes. They dispose of hazardous waste products properly and safely. They employ the required tradespeople and train apprentices. In short, they play by the rules, and it costs them money to comply, which is reflected in their repair costs.

But there are facilities that cut corners. They play by some rules but not by others. Their repairs are not always safe or high quality. But they are able to offer lower prices then their competitors.

This is unfair to consumers, other collision repair facilities, and the taxpayer.

An accreditation program, over time, will eliminate unethical repair facilities and unlicensed "back street" shops that use inappropriate materials and workmanship, and improve protection against poor quality repairs and service.

Non-Compliance

While many collision repair facilities do comply with the many laws and regulations that affect the industry, many do not.

There are environmental regulations that affect spray booths and emissions. There are business and taxation laws. There are occupational safety regulations and a host of other laws and regulations that are not being complied with or enforced with any uniformity or consistency. This impact the industry, the consumer, and the general public.

For example, the lack of resources to effectively monitor the industry for employing unlicensed auto body technicians has left the industry in a state where many unqualified persons are employed. Enrollment in industry apprenticeship programs has declined over the past 5 years. There is unfair competition between ethical facilities and those who employ unlicensed technicians.

Similarly, the lack of compliance with environmental protection regulations can harm the environment and put public safety at risk.

An accreditation and inspection program would address this issue and others that will be identified in discussions with various ministries and agencies.

Lack of Uniform Municipal By-Laws

There is no consistency in the requirements at the municipal level. Some municipalities require licenses and some do not – and even where there are requirements, enforcement is often minimal or uneven.

There are approximately 1500 collision repair facilities in the various municipalities across the GTA, but only 50% are properly licensed. This creates an unfair situation for the industry and the consumer. People in every part of the province are entitled to the same level or protection. All collision repair shops should have to comply will the same requirements. This is why a mandatory province-wid program is the only option that will ensure uniform public protection.

When the mandatory accreditation program is in place, all collision repair shops will be licenced. There will be a uniform level of consumer protection across the province. The need for individual municipal programs, like the program in Toronto, will cease to exist. Discussions have already taken place on the elimination of the Toronto program and others in the province when the provincial program begins.

Consumer Choice

Many consumers would prefer to do business with facilities of their choice because of reputation or personal knowledge. A CISCO accredited program would create a standard for business conduct across the province.

The Strategy

The collision repair industry proposes an industry led, financed and managed accreditation and self-management program (ISM) that is mandated by provincial legislation, The Collision Repair Act.

The key elements of the ISM program would include:

• Enactment of provincial legislation (The Collision Repair Act)
• Delegation to the Collision Industry Standards Council
• Accreditation Standards regulating premises and employees
• Code of Ethics regulating business practices
• Consumer Bill of Rights
• Full inspection program
• Full enforcement program
• Consumer / Industry Dispute Mediation Service
• Complaints and Discipline Process
• Consumer Awareness Program
• Compensation Fund
• Industry Education Program

The Minister would delegate administration of The Collision Repair Act to the Collision Industry Standards Council of Ontario.

CISCO would become a non-profit Administrative Authority similar to the Travel Industry Council of Ontario (TICO) and the Ontario Motor Vehicle Industry Council of Ontario (OMVIC).

The CISCO Board would comprise representatives from the collision repair industry, the insurance industry, consumers and the government.

The accreditation program would be mandatory for all collision repair facilities and uniform in standards and enforcement province-wide.

Recognizing that CISCO would be strictly a regulatory agency, the industry would create a provincial trade association, to be registered as the Collision Operations of Ontario (COO), to represent its interests and develop and deliver education and other programs to support the industry and assist it to provide high-quality repairs.

CISCO would continue its' discussion with representatives fo the Auto Glass Replacement Industry and the Auto Mechanical Repair Industry to explore various options to enable these industries to achieve self-management status with the mandate of CISCO.

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Repair facilities that hold a valid accreditation certificate must comply with the code of ethics.

TO BE ACCREDITED, A FACILITY MUST AGREE TO:

1. Perform high quality repairs at a fair price: quality is defined to equal the Collision Industry Standards Council of Ontario (CISCO) "measurement standard", the vehicle will measure to a tolerance of no more than plus/minus three millimetres of industry published specifications, in length, width and height at all master control point upon completion of repairs, or within the standard of variance established by the original equipment manufacturer if that standard is greater than three millimetres.
2. Recommend and provide proper collision repair procedures that will restore the customer's vehicle to a safe condition.
3. Offer to explain to the customer why specific procedures are required to correct the collision damage
4. Offer damage reports or estimates for the work that is to be performed.
5. On completion of work or repairs provide the customer with an itemized invoice of parts and services which clearly identifies any new, used, repaired, remanufactured, or aftermarket parts.
6. Obtain prior authorization for all work done in writing or by other reasonable means.
7. Maintain technician training that enables a high level of collision repair competency.
8. Maintain equipment that enables a high level of collision repair quality.
9. Use legitimate equipment, parts and materials of high quality.
10. Post copies of any warranties covering parts or services.
11. Advise the customer with information on preventative maintenance.
12. Exercise reasonable care of the customer's property while it is in the facility's possession.
13. Maintain customer service and warranty records for a minimum of one year.
14. Deal with complaints in a fair, professional and expeditious manner and co-operate with established CISCO complaint mediation processes.
15. Conduct all business procedures in a professional and lawful manner.
16. Provide a clean and safe environment for receiving customers.
17. Employ qualified technicians.
18. Guarantee, in writing, the workmanship for as long as the owner owns the vehicle, in addition to the warranty of parts and labour required by the M.V.R.A.
19. Not acquire collision repairs through accident-scene solicitation.
20. Allow all consumers their freedom of choice of repair facility.
21. Treat each customer with respect and courtesy
22. Reinstate vehicle corrosion protection
23. Replace all safety devices to the manufacturer's specifications.
24. Uphold the high standards of our profession and always seek to correct any known abuses within the collision repair industry.
25. Uphold the integrity of all repair facilities accredited by CISCO.
26. Honour the Consumer's Bill or Rights

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A PERSON RECEIVING A REPAIR SERVICE HAS THE RIGHT TO:

1. Select the repair facility of his or her choice.

2. Receive an itemized written estimate before the work is commenced, of the repairs required and the cost for completing the work.

3. Know from the estimate provided, the type of parts that are going to be used in the repair, whether original equipment manufacturer, aftermarket, reconditioned or used parts.

4. Authorize, in writing or by other reasonable means, the repairs required before they are commenced.

5. Expect the repair facility will complete the repairs and parts replacement in accordance with the authorized estimate.

6. Receive an invoice from the repair facility only for work completed. To include identification of substitutions, changes, additions or deletions from the authorized estimate.

7. See the repair facility's hourly labour rate(s) posted in conspicuous location.

8. Know the repair facility is required to collect and cannot waive the applicable deductibles on insurance-paid work.

9. Receive a written guarantee for workmanship performed (excluding rust repairs) for as long as the vehicle is owned, in addition to the warranty on parts and labour provided for in the Motor Vehicle Repair Act.

A Reminder…

The owners of accredited repair facilities are required to meet established equipment standards and have pledge their facilities to a rigorous code of ethics. This code, which includes a commitment to respect and promote the rights listed above, is designed to protect you and your property.

You are encouraged to choose a repair facility that will uphold these rights and that will treat you with courtesy and respect.

For answers to questions about these rights and for more information about accredited repair facilities, contact:

The Collision Industry Standards Council
Office of the Registrar

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TO BE ACCREDITED, A FACILITY MUST:

1. Comply with federal, provincial and local laws and regulations.

2. Provide proof of registration with the Workplace Safety and Insurance Board (formerly the "Workers' Compensation Board").

3. Provide proof of valid garage keeper's liability insurance.

4. Have a four point clamping system to safely secure vehicles while making structural repairs.

5. Have industry accepted measuring equipment capable of making three-dimensional measurements on unibody and non-unibody vehicles.

6. Have electrical, mechanical and/or hydraulic pulling equipment appropriate to repair.

7. Utilize an industry accepted computerized or manual estimating system.

8. Utilize current dimensional guides / data appropriate to the vehicle being repaired.

9. Have the capacity to provide all-wheel alignments.

10. Have the capacity to provide mechanical repairs.

11. Have the appropriate welding equipment that meets the vehicle manufacturer's requirements.

12. Replace or restore the vehicle's structural components to their pre-accident condition with regard to location, integrity, durability and safety.

13. Have the ability to safely raise the vehicle for inspection and repairs.

14. Have the capacity to safely remove the engine, drive train and suspension when necessary for repairs.

15. Have a paint system that can produce an original equipment manufacturer's type finish.

16. Have a paint spray booth that complies with appropriate legislation.

17. Only sublet auto body collision repair, auto body and/or auto refinishing work to CISCO accredited facilities.
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You've had an accident. In a perfect world you would have your vehicle towed to the original dealership and have its repair shop do the work. After all, you can be assured the dealer's licensed, has the proper equipment, trained staff, properly disposes of hazardous wastes and so on.

But instead, you're kilometres away from the dealership, seemingly in the middle of nowhere, and are being unceremoniously towed to the nearest auto body shop. You're not familiar with the area or the people who run the shop.

You're uneasy and dozens of questions flash through your mind. How much extra is this going to cost me? Is this shop dependable? Do they guarantee their work? Do they have the right equipment and parts? How well are the body repair technicians trained? Will the repairs be safe?

Here are the hard facts. There are 2,800 collision repair shops in Ontario. And while dealership collision repair shops do adhere to the strictest of standards, there are really no consistent or enforced standards out there.

Things like customer codes of practice, i.e., consumer protection, equipment, training of staff, quality of the repair, conforming to labour and environmental laws and so on, are left to the interpretation of the owner/ operator.

This is bad for the consumer and bad for our industry.

So, for the past several years, Toronto and Ontario Automobile Dealers have been working with government, consumers and various other key organizations on the best ways for the collision repair industry to manage itself. The result? New bill, new standards.

On June 27, Conservative MPP Frank Klees (Oak Ridges) introduced a new (private member's) bill in the Ontario Legislature designed to bring much-needed standards to the auto-body industry. It's called the Collision Repair Standards Act, 2002.

"The new legislation is a positive step and will mean better protection for all consumers when it comes to safety and repairs after an accident," says John Norris, executive director of the Collision Industry Action Group (CIAG), the largest collision repair and auto refinish trade association in Canada.

"There'll be fewer consumer complaints because all shops will adhere to strict standards and established codes of practice. For example, each will have to possess and maintain the proper equipment to perform a specific repair. Shops must employ licensed staff and must conform to strict environmental protection standards."

Norris is quick to point out that the legislation was not conceived in a vacuum. "It's the result of four to five years of ongoing efforts about industry management between government, consumers, the Ontario & Toronto Auto Dealers Association, the Collision Industry Standards Council of Ontario (CISCO), the Collision Industry Action Group (CIAG) and other collision repair associations."

The real "teeth" to the act involves the often maligned insurance industry. Klees introduced a complementary change to the existing Insurance Act that will force car insurers in Ontario to reimburse shops for accident repairs only if they comply to all the standards that will be established (66 per cent of all collision repair in Ontario involves insurance claims).

A very important reason why auto dealers endorsed and supported this legislation is safety. Your vehicle must be repaired properly. There is no room for compromise — it must be brought back to its pre-accident condition, or no payment will be issued. Faulty repairs can render your vehicle a safety hazard for you as well as for others on the road.

How will the act be implemented? An advisory board will set the standards for all collision repair and auto body shops in Ontario. This process is not really new — Manitoba, Saskatchewan and British Columbia currently operate in this manner and consumers there are reaping the benefits.

The TADA and OADA members fully support this legislation and realize the enormous benefits to you, the consumer, and to our industry as a whole.

--------------------------------------------------------------------------------
Dominic Mesiano, a Volkswagen dealer in the GTA, is president of Toronto Automobile Dealers Association this year. For more information, visit http://www.tada.ca.

Special thanks to the Toronto Star

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Road safety, reducing fatal and serious injury auto accidents, and the rising costs of health care in Canada are important priorities facing the property and casualty insurance industry.

Putting safe vehicles back on the road following repairs is also a top priority. In fact, Canadian P&C insurers have put a number of programs in place to audit the repair of vehicles. These programs may vary from company to company, but common practices are followed.

Some of the most common practices include:

1. Electronic photo imaging - The collision repair facility immediately sends photographs of the damage to the insurance companies, along with a completed estimate, listing the parts and labor required for repair.

2. Random re-inspections - These inspections are carried out by insurance companies. During the re-inspection process, a vehicle is often checked both before and after the repair, and all old parts must be accounted for. Also the parts replaced are verified by a review of the original invoice.

3. Voluntary branding - The Ontario Ministry of Transportation (MTO) plans to introduce a mandatory branding program some time in 2002. Many companies are already branding vehicles that have incurred severe structural damage. The branding program is designed to keep unsafe vehicles off the road.

One of two brands is shown on the vehicle ownership - "irreparable" and "salvage." A vehicle branded "irreparable" can be used as a source for parts or scrap only. The vehicle's structural damage is too extensive to repair safely for road use. A vehicle branded "salvage" can be safely repaired but cannot be used on the road until it passes a very rigid structural inspection approved by MTO. If the vehicle passes the inspection, it is branded "rebuilt" and approved for road use.

4. Preferred or Direct Repair Programs - While consumers have the right to take their vehicle to any shop, many take advantage of the insurance company's "preferred" or "direct repair program (DRP)". Insurance companies guarantee the workmanship for as long as the customers owns the vehicle if repaired at a preferred or direct repair shop. Additionally, preferred or direct repair shops must have a good reputation for quality repairs, and must be properly equipped to repair structurally damaged vehicles.

5. Audit programs - Insurance companies are equipped with various electronic audit programs featuring triggers that are able to select files for review.

The Canadian P&C insurance industry continues to work with the Collision Industry Standards Council of Ontario (CISCO), which has developed an accreditation and self-management program for collision repair facilities. The insurance industry supports the proposed standards, which include a compliance monitoring and enforcement component. For more information, visit The Collision Industry Action Group web site at www.ciia.com .

Consumers can also obtain more information by calling the Insurance Bureau of Canada's Consumer Information Centre at 1-800-387-2880.
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The Honourable Timothy Hudak, M.P.P.
Minister of Consumer and Business Services
250 Yonge Street, 35th Floor
Toronto, Ontario
M5B 2N5

Dear Minister,

Re: Collision Industry Standards Council of Ontario (CISCO) Accreditation Proposal

I want to express to you my warmest congratulations on your appointment as Minister of Consumer and Business Services.

I am also writing to express the support of the Insurance Bureau of Canada (IBC) for the introduction of an accreditation and standards program for the collision repair industry in Ontario. IBC is the national trade association representing most auto, home and business insurance companies in Canada.

CISCO has presented a comprehensive proposal to the Ministry of Consumer and Business Services for the regulation of the collision repair industry. As the representative of most auto insurers in Ontario, we wish to encourage the government to review CISCO's proposal and to take action soon to implement an accreditation and standards program for the collision repair facilities.

The current lack of province-wide standards has led most auto insurers to develop their own "preferred shop" or "direct repair" programs, under which policyholders are encouraged to have repair work done at designated garages. These preferred programs have been reviewed by the federal Bureau of Competition and have been found to be sound ways of ensuring high-quality and cost-effective repairs for policyholders. When repairs are done at a designated shop, insurers guarantee the work for as long as the customer owns the vehicle.

However, a considerable amount of automotive repairs continues to be done outside of these insurer-based programs. For that reason, we believe that an accreditation and standards program for the collision repair industry will be of real benefit to consumers and other stakeholders.

For the last number of years, insurance representatives have worked with the elected representatives of CSICO, and with some government officials, to help develop an accreditation and standards regime for the collision repair industry. In our view, the proposal put forward by CISCO details very effective programs in these areas and we encourage the government to move forward to implement these ideas.

However, we have one major concern with the CISCO proposal. In our view, insurers will not be adequately represented on the proposed governing body. Auto insurers fund the vast majority of collision repairs in Ontario and thus have a critical stake in the success of any accreditation and standards program. We believe that the addition of a more balanced governance model will help ensure that all stakeholders and well served by the CISCO program and prevent the proposed governing body from becoming a simple advocacy group or trade association for the collision repair industry.

Once again, we strongly encourage you to move forward with the review of CISCO's proposal and look forward to further discussions on this matter with you and your officials

Yours sincerely,

Mark Yakabuski
Vice President, Ontario

c.c. Alex Szabo, President, CISCO

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Finally collision repair shop accreditation and self-management are almost here.

Your help is needed. For the first time, the collision repair industry in Ontario has the means to improve itself with stronger consumer service, meet legal compliance standards that already exist, and ensure proper equipment that allows skilled trades professionals in our industry to safely and professionally repair collision-damaged vehicles for the public. Many shop have been concerned about "backyard" or illegal repair facilities that fail to have the proper skills, equipment and compliance with laws and regulations In June, Bill 165, the Collision Repair Standards Act (2002) was introduced by MPP Frank Klees in the legislature. The private-member's Bill provides for a framework that obligates collision repair and auto refinish shops to meet industry accreditation standards. These standards are expected to be similar to existing industry standards already accepted in western Canada. Shops must meet the standards required for the type of business that they operate and no insurer would be allowed to pay a repair bill from a non-accredited facility. After receiving shop, insurer and public input during over 15 open meetings held across Ontario, elected representatives of the industry, working under the name of CISCO ( Collision Industry Standards Council of Ontario) produced a detailed report in February 2000 for government that reflects much of the content of this Bill. A copy of the Bill is available at www.ciia.com on the opening page

Some questions and answers:

Q Does the Bill allow the industry to self-manage its affairs ?
A The Bill allows for an advisory group to make recommendations to the Minister and be allowed to work within the limits outlined in future regulations

Q Does the Bill put standards in place?
A The Bill allows the advisory group to set the standards for the Minister's approval. The Bill allows for the right to set standards, but does not specify what standards. It is expected that the CISCO standards would be adopted.

Q Who made up the standards ?
A The Board of Directors for the advisory group recommends the standards

Q Am I required to be accredited ?
A Yes

Q Am I required to upgrade my shop ?
A Your shop must meet the standards for the type of repair. i.e.- if your shop just does autobody repair and not collision repair then anchoring and measuring equipment isn't needed as a standard for that type of repair

Q Can I get assistance to meet these standards ?
A CISCO is proposing that technical and shop assistance will be available

Q Will I be forced out of business because of the costs to meet standards?
A Most shops have the equipment needed in place already. If you do not have the necessary minimum level of equipment, there are various options to help.

Q I'm just a small shop doing rust repairs, no collision work. What happens to me?
A You just need to meet the standards for an auto body shop, where equipment needs are lower

Q Can I still get insurance paid business if I don't meet accreditation standards ?
A No

Q Does the Bill say who makes the decisions to accredit me or not?
A The Minister makes the final decision from a recommendation from the advisory group

Q Does the Bill affect my DRP status with insurers?
A No, DRPs are individual shop arrangements, and the advisory group has no influence on that

Q Can the industry Board help me increase my labour rate ?
A No, the advisory group is not proposed to have that power

Q Is CISCO a trade association ?
A No, participation in industry trade associations is a positive voluntary step, however, participation in accreditation is required under the Bill

Q What about the illegal shop down the road. Will this Bill help me with that problem ?
A That shop must meet the same standards as your shop. CISCO has outlined a monitoring and enforcement program that addresses unlicensed , "backyard" facilities and also encourages them to raise their standards to become accredited

Q If my shop needs to be inspected, how do I know the inspection is fair ?
CISCO proposes that no inspector can inspect a shop if he/she may have a conflict of interest

WE NEED YOU to write or call your MPP and tell them that Bill 165 is important to the industry, your business and your customer.

Also send a faxed copy to Frank Klees, MPP at 905-707-3161

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For over four years, elected representatives from over a dozen collision repair and auto refinish trade associations across Ontario have been meeting to design a self-managed industry model for accreditation and standards for shops. The concern over public safety, unsafe repairs and enhancing the image of the autobody repair industry, motivated these meetings.
With 2800 collision repair and auto body shops in Ontario, there is currently no consistently enforced standard for compliance, equipment or customer codes of practice for shops to follow, so a number of cars can be repaired by shops that don't have the necessary equipment and training to safely bring the car back to pre-accident condition. This problem exposes consumers to possibly faulty repairs and may lead to another accident or not having enough structural strength in the vehicle if it is involved in another accident, to properly protect the passengers.
At these CISCO Board meetings, standards were developed to include legal compliance to current laws and regulations, minimum equipment standards to perform the required repair and improved customer service. These standards are not difficult and rely heavily on standards currently in use in western Canada.

With the input from a variety of partners in government and the insurance industry and after eighteen town hall consultation and information meetings, the Collision Industry Standards Council of Ontario (CISCO) in February, 2000 generated a 118 page report to the government of Ontario recommending an accreditation program operated by a self-managed industry Board with fair representation from insurers, shops, government and the public.

The Insurance Bureau of Canada (IBC) has in writing supported the proposed standards, and its planned enforcement. As well, on April 25 of this year, Mark Yakabuski, Vice President, Ontario for the IBC wrote to the Hon. Minister of Consumer and Business Service, Tim Hudak, to urge action to soon implement the CISCO accreditation and standards program for collision repair facilities. In that letter, Mr. Yakabuski stated

"For the last number of years, insurance representatives have worked with the elected representatives of CISCO, and with some government officials, to help develop an accreditation and standards regime for the collision repair industry. In our view, the proposal put forward by CISCO details very effective programs in these areas and we encourage the government to move forward to implement these ideas." IBC's only concern was their representation on the governing body.

In June of 2002, conservative MPP Frank Klees, introduced the Collision Repair Standards Act (2002) or Bill 165 for first reading at Queen's Park. This private-member Bill would provide the framework for a strong consumer protection package of standards that the collision repair industry and its partners could all be comfortable with, in moving all shops to a minimum level for required equipment, legal compliance, and trades training requirements with adherence to a consumer Bill of Rights that would provide for full disclosure as well as transparency to the consumer..
The Act provides that all collision repair and auto body shops in Ontario must meet the standards set by an industry Advisory Board -standards that are widely expected to mirror other similar standards programs in public insurance provinces like Manitoba, Saskatchewan and British Columbia. It is expected that shops must prove that they pay business taxes, are properly municipally licensed, handle hazardous wastes like paint and solvents properly and that they possess the proper equipment for the type of repair. Shops require trades-licensed staff to operate the equipment and perform a safe repair.
After careful consideration from all involved parties, including the insurance industry, accreditation of collision repair facilities was a win-win situation. The collision repair industry's image improves, shops that do not meet legal standards are obligated to conform, safety issues are addressed and the public is assured of safe repairs from licensed trained technicians with proper equipment.

For the insurers, they will know who meets the minimum standards, their clients receive proper and safe repairs and they reduce their liability. The headaches that insurers often have with "chase" shops that use aggressive towing solicitation, or illicit operations and their abusive conduct, including their abusive invoice amounts, is addressed with industry enforcement in a self-managed model.

In none of the discussions in the last four years, did the industry Board at CISCO, nor in their report to government, discuss possible price increases in labour rates at shops as we all felt that was outside of any possible authority that may be available, and may indeed be anti-competitive. Nor did we in all that time, discuss or even mention Direct Repair Programs or DRP. Vendor relationships with insurers are the responsibility of each individual facility to either enter into or not. These individual business arrangements can be entered into, and have for many years been entered into, by repair faculties. DRP relationships and activity have nothing to do with accreditation of facilities or the self-management of the industry.

Yet, despite the CISCO Board not even considering these issues, nor mentioning them in our report to government, these issues are raised by insurers as reasons for not supporting the movement to shop accreditation and standards

The CISCO Board and our report identify only the issues that the industry self-management Board should be involved in, and DRP and price fixing or pricemaintenance are not one of those issues.

We did feel, however, that the best method to influence a facility to comply with these minimum standards would be to ensure that insurance companies would not be able to pay a repair claim to a non-compliant shop. It was felt that insurers would welcome the opportunity to have identified for them facilities that were improperly equipped to handle the repair that they were billing for, had no trades-licensed or skilled techs to perform the repair safely, were polluting the environment or charging for labour and parts that were not put on the car. This requirement to only pay shops that met standards should not be interpreted as an attempt to negatively impact insurance company DRP programs. We all would hope, and certainly your customer would expect, that you are recommending a repair facility that met industry standards.

We are disappointed in the attacks on the Bill and the proposed accreditation of repair facilities. A clear, identifiable and fair set of standards to better serve the public, would, we had thought, been in the best interests of all, especially the motorist.

The collision repair industry and CISCO, encourage your support for this positive move to help us all improve our abilities to serve our mutual clients ensuring honest, safer repairs from collision repair facilities that meet reasonable and fair industry standards.

Yours truly,

Alex Szabo, President
Collision Industry Standards Council of Ontario (CISCO)

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On Thursday October 10, 2002 , shortly after 10:00 a.m., MPP Rob Sampson will be presenting to the Ontario Legislature at Queen's Park, the Collision Repair Standards Act, (2002) for second reading.

This Bill, originally introduced as a private-members Bill by MPP Frank Klees, will empower the Minister to establish a regulatory framework for the collision repair industry, including the certification of collision repair shops.

The Bill establishes a collision repair Advisory Board to perform an advisory function to the Minister. This Advisory Board sets the standards ( in legal compliance, equipment and customer relations),and reports to the Minister with recommendations to accredit collision repair facilities. The Bill also amends the Insurance Act to provide that, a consumer may have collision repairs performed at any certified collision repair shop and insurance payments may only be made in respect of repairs that are performed at certified collision repair shops.

This is the result of almost five years of work by CISCO (the Collision Repair Standards Council of Ontario) and reflects a report prepared by the elected representatives of the collision repair industry in this province, towards an industry self-managed shop accreditation program.

This may be the most significant opportunity for the improvement of our industry in many years, and we are asking you to join us in the public gallery on Thursday morning to clearly identify to members of the Legislature that the collision repair industry supports this Bill.

Support from shops, suppliers, insurers, industry manufacturers, and distributors continues to be CRITICALLY IMPORTANT, and STRONG SUPPORT at Queen's Park will provide the legislators with a clear understanding of this industry's enthusiasm and interest in the passage of this Bill.

WE INVITE YOU TO JOIN US IN THE PUBLIC GALLERY FOR 10 A.M. ON THURSDAY OCTOBER 10, 2002 AT QUEEN'S PARK, TORONTO FOR A SHOWING OF STRONG SUPPORT.

Thank you for your help.

Alex Szabo, President, CISCO
Collision Industry Standards Council of Ontario

SECOND READING OF COLLISION REPAIR STANDARDS ACT SUCCESSFUL

October 10, 2002

Fourty shops owners and operators were in the galleries at Queen’s Park, Toronto today to watch all three political parties unanimously support the second reading of the Collision Repair Standards Act, 2002

It is expected the Act will go quickly to Committee for hearings with the window for third reading and final acceptance as law shortly afterwards.

The Collision Repair Standards Act, 2002, provides for a province-wide series of standards involving minimum equipment levels, confirming legal compliance and a consistent minimum level of customer service, set by regulation. The Advisory Board would report to the Minister and have the power to recommend which shops to accredit and which shops to remove from accredited status. All shops must be accredited in Ontario to operate legally.

MPP Frank Klees, Oak Ridges, who originally sponsored the Bill, until his promotion to Minister of Tourism last week obligated the transfer of second reading introduction to MPP Rob Sampson, Mississauga South, has also included in the Bill, a provision under the Insurance Act, which will mandate all insurers to only pay auto damage repair claims to accredited shops.

Alex Szabo, is President of CISCO, the Collision Industry Standards Council of Ontario, an industry-led representative body of collision repairers, which supports the Bill and authored a major report in February, 2000 that is the basis for this legislation. He says “ The Collision and Auto Body Industry in Ontario appreciates the efforts of the Hon. Rob Sampson and the Hon. Frank Klees for bringing Bill 186 forward that will protect the motorist from unethical shops that provide unsafe repairs. This Bill will also allow the Collision and Auto Body Industry to raise the level of professionalism and improve trade standards, encourage higher levels of legal compliance and have a say in the future direction of our industry. October 10th, 2002, is a very good day for the Auto Body and Collision Repair Industry in Ontario.”

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Presentation to Committee Bill 186

November 7, 2002

Mr. Katch Koch, Clerk,
Standing Committee on Finance and Economic Affairs
99 Wellesley Street West
Room 1405, Whitney Block
Toronto, Ontario
M7A 1A2

Presentation to the Committee reviewing the Collision Repair Standards Act, 2002 (Bill 186)

Dear Mr. Chairman and members of the Committee:

My name is John Norris and I am Executive Director of the Collision Industry Action Group. Thank you for the invitation today to speak with you regarding the Collision Repair Standards Act, 2002 (Bill 186),

The Collision Industry Action Group or CIAG is an amalgamation of the collision repair and auto refinish trade associations in Durham, Toronto, Peel and Hamilton/Niagara regions. A number of our member Directors are here with us today to encourage the passage of Bill 186.

The Collision Industry Action Group’s members include almost 400 shop and supplier facilities ranging from small two man repair facilities to large multi-national coatings firms. Our collision shop members that we represent range from the small restoration shop with one or two employees, through large independent shops with several dozen employees all the way to dealership collision centres, chain and franchised repair shops in the collision repair, the auto body and the auto refinish sectors.

Some shops only do exterior rust or “bump and dent” type work-they are the autobody shops. Some shops do only painting of a vehicle after the accident- they are auto refinish shops. Collision repair shops perform safe structural repairs to bring the car back to its original pre-accident condition. Each of these types of shops would need different equipment and different levels of trained personnel.

Our association and our member associations in regional areas have been involved in bringing workshops and consultations over the last four years across Ontario, listening to the industry and industry supplies and partners- using their comments and suggestions to help better refine the Act and its future regulations. From Thunder Bay to Ottawa, and Windsor to eastern Ontario, the industry and trade associations have held or will hold over 20 of these opportunities for input.

As an industry group, we have always been concerned over unfair business practices, the “chase” shop that attracts its business from accident scenes while motorists are confused or injured and shops, that because of their lack of trained personnel and proper repair equipment required for that type of repair, put public safety at risk with incomplete or fraudulent repair of a customer’s car. A car that will be put back on the road and be asked to perform at highway speeds and be able to absorb the next collision impact in the same fashion as the first accident.

The collision repair industry is currently unregulated. There is no consistent regulation for the almost 3,000 facilities in this province. Regrettably, this industry does have its fair share of unlicensed, poorly equipped facilities with staff that have no training and even less equipment. Their environmental controls for spray painting involve opening two bay doors at either end of the shop and hoping for a strong breeze. When you ask them if they are paying taxes and premiums to the WSIB, they quickly change the subject, or in the cae of one shop I visited, run out the back door. A series of consistent standards as advocated in the Collision Repair Standards Act, 2002 would be a great means of having safe consumer –friendly repairs. These standards would not be new- indeed shop standards and accreditation for Ontario means we would be the fourth province to put into use a series of accreditation standards, after B.C., Saskatchewan and Manitoba. These programs in other Canadian provinces are used by the public insurers in those jurisdictions to identify which shops receive a higher labour rate for their work. Active insurer participation in these other provinces, and the threat of insurer cash withholding for these not in compliance, have been keys to the programs in other provinces.

Regulations can be added later, in consolation with the industry and government and others, to add substance and specifics to the Bill. The CISCO package is a very good start.

We also understand that there will be those here today that will not be pleased with this Bill. Some will be shops that do not want to meet legal compliance, or are afraid that the correct equipment that is needed, and that they have been charging for its use, is not in their possession. It was never the industry’s position that shops would have to purchase equipment not needed for the type of repair being performed. If you are only doing auto body work, and not structural repairs for collision, then items such as frame racks, anchoring or measuring systems, even spray booths, if no painting is being performed, would not be needed.

Small shops will need to meet legal compliance standards that Ontario has in force now. They will not be obligated to buy expensive equipment that would never be used for the type of repair they are performing. We all would want to see this as “SAFELY” performing.

Insurers, we would hope, would want to pay for repairs at shops that are accredited and provably safely and properly repairing collision-damaged vehicles. Why would an insurer want to continue paying shops that charge abusive billings to insurers and consumers, don’t have any ethics, equipment, training or environmental controls? I’m sure none of us would want to have one of these improperly repaired cars coming at us on the opposite lane at highway speeds. Insurers will only pay accepted doctors, dentists and attorneys- we are only suggesting that they pay accredited collision repair facilities.

Regrettably many illicit, polluting and improperly equipped and poorly trained shops, profit from being paid for a shoddy or possibly unsafe repair by insurers in Ontario. I would hope that the reason for these continued payments to these horrible abusive repair facilities is because insurers are somehow unaware that they are rewarding this abuse and helping to promote and foster further consumer horror stories.

With strong consumer standards, the insurers will now be able to save money instead of paying outrageous invoices for repairs not performed and the industry’s image and credibility, its opportunity to attract eager new apprentices and the growing respect for protected consumers would be all well worth it.

Please support Bill 186

Thank you, John Norris

The new Collision Repair Standards Act (Bill 186), that provides for a industry-managed Advisory Board to recommend shops for certified or “accredited” status was reviewed clause by clause by the members of the Standing Committee on Finance at Queen's Park on November 21. This final review, done after second reading of the Bill now provides the specific requirements for the Bill to allow for third reading in the House. If third reading is successful, then the Bill becomes law.

A major change to the Bill is the removal of a clause that required insurance companies to only pay certified shops. Insurers had lobbied very hard to remove this amendment. This requirement was felt critical in making sure illegal facilities were not "rewarded" with insurance monies for work done and would obligate shops to raise their standards in compliance, equipment needs and customer service, in order to receive insurance payments. Under the new Finance Committee-revised Bill, insurers can now pay uncertified shops, if they wish, that do not meet minimum standards. The Bill may provide for changes in future regulations to come. As well, insurers, if they wish, can remove a vehicle from a certified shop and arrange transfer to an uncertified shop for the repair by refusing to release the vehicle to the original shop. This also allows for insurers to refuse payment for unauthorized invoices or bills.

The Finance Committee after receiving a number of briefs and presentations from industry groups and shops as well as insurance companies and trade associations, made the following changes:

-adding towing services to be regulated if the tow trucks are owned or operated by a collision repair shop

-the Advisory Board composition changed to 4 persons from the collision repair industry, 4 members of general public and two government representatives for a total of 10 members

-the Advisory Board must make a public annual report

-the Advisory Board to be self-financing and can charge reasonable fees to do so

-penalties for non-compliance go up to $50,000 or 6 months imprisonment or both for subsequent offences

-all customers will receive a “Bill of Rights” document, that outlines their right to use a certified shop, that the repairs are done safely, that original equipment manufacturer and/or aftermarket parts are identified, and a toll free phone number and internet address for the Advisory Board

-"collision repair" is defined with shops that only repair rust or cosmetic damage excluded

(see headlines)

COLLISION REPAIR STANDARDS ACT PASSED BY LEGISLATURE INDUSTRY TO BE SELF-MANAGED

December 13, 2002

After almost five hours of debate, complete with adjournments and occasionally hoots and shouted comments on the last sitting night prior to Christmas break, the provincial legislature unanimously approved for third reading into law, the Collision Repair Standards Act, 2002
The new Bill would provide the framework for industry self-management of the collision, auto body and auto refinishing industry by authorizing an industry advisory board comprised of 10 members (4 from collision repair, 4 members of the public and 2 government representatives) to oversee the introduction of standards for the industry. The Board would then, based on the collision shop's compliance with those standards, recommend to the Minister for the shop to be accredited or not accredited. All shops doing collision work must be accredited and failure to do so can mean fines up to $50,000 or six months imprisonment or both for future offenses.
It is expected that many of the shop standards will follow the CISCO or Collision Industry Standards Council of Ontario recommendations, from a brief submitted to government in February 2000. Those standards largely reflect standards already in use in western Canada.
The Bill, which had a number of changes that were inserted by the Standing Committee on Finance, was approved by the legislature as the Finance Committee had recommended. The Bill also provides that all shops meet industry standards, consumers can have their vehicle repaired at a shop of their choice, and that both the insurer and car owner must release the vehicle to a repair shop prior to any insurance payment for repair being made.
The Bill also includes a mandatory "Bill of Rights" to be supplied to customers that includes information on the customer's right to safe repair, right to a shop of their choice, an advisory that they do not have to use an insurance company's recommended shop, (although they can if they wish), a required declaration of whether parts used are Original Equipment Manufactured or aftermarket, and a statement from the shop that the repair has been made in accordance with all applicable safety standards.