Assembly Bill No. 258–Assemblymen Chowning, Segerblom, de Braga,

Mortenson, Claborn, McClain, Koivisto, Freeman, Bache, Anderson,

Tiffany, Thomas, Parks, Gibbons, Berman, Evans, Cegavske,

Price, Arberry, Ohrenschall, Manendo, Humke, Dini, Perkins,

Buckley and Brower

CHAPTER........

AN ACT relating to automotive repairs; requiring a garageman to display at his place of

business certain information concerning the repair of motor vehicles and to file a

bond with the department of motor vehicles and public safety under certain

circumstances; revising the provisions concerning a written estimate of cost to

repair a motor vehicle; extending the date upon which the advisory board on the

repair of motor vehicles expires by limitation; providing a penalty; and providing

other matters properly relating thereto.

 

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 597.490 is hereby amended to read as follows:

597.490 1. [Every] Each garageman shall display conspicuously in

those areas of his place of business frequented by persons seeking repairs

on motor vehicles a sign, not less than 22 inches by 28 inches in size,

setting forth in boldface letters the following:

[STATE LAW REQUIRES THAT UPON REQUEST BY ANY

PERSON AUTHORIZING REPAIRS TO A MOTOR VEHICLE,

SUCH PERSON SHALL BE GIVEN A WRITTEN ESTIMATE OF

TOTAL CHARGES FOR LABOR AND PARTS AND

ACCESSORIES, AND THAT NO CHARGE MAY BE MADE

EXCEEDING THE ESTIMATED AMOUNT BY 20 PERCENT OR

$40, WHICHEVER IS LESS, WITHOUT THE CONSENT OF THE

PERSON AUTHORIZING THE REPAIRS.]

STATE OF NEVADA

REGISTERED GARAGE

THIS GARAGE IS REGISTERED WITH THE
DEPARTMENT OF MOTOR VEHICLES AND PUBLIC SAFETY

NEVADA AUTOMOTIVE REPAIR CUSTOMER
BILL OF RIGHTS

AS A CUSTOMER IN NEVADA:

YOU have the right to receive repairs from a business that is

REGISTERED with the department of motor vehicles and public

safety that will ensure the proper repair of your vehicle. (NRS

597.490)

YOU have the right to receive a WRITTEN ESTIMATE of charges

for repairs made to your vehicle which exceed $50. (NRS 597.510)

YOU have the right to read and understand all documents and

warranties BEFORE YOU SIGN THEM. (NRS 597.490)

YOU have the right to INSPECT ALL REPLACED PARTS and

accessories that are covered by a warranty and for which a charge is

made. (NRS 597.550)

YOU have the right to request that all replaced parts and accessories

that are not covered by a warranty BE RETURNED TO YOU AT

THE TIME OF SERVICE. (NRS 597.550)

YOU have the right to require authorization BEFORE any

additional repairs are made to your vehicle if the charges for those

repairs exceed 20% of the original estimate or $100, whichever is

less. (NRS 597.520)

YOU have the right to receive a COMPLETED STATEMENT OF

CHARGES for repairs made to your vehicle. (NRS 487.035)

YOU have the right to a FAIR RESOLUTION of any dispute that

develops concerning the repair of your vehicle. (NRS 597.490)

FOR MORE INFORMATION PLEASE CONTACT:

THE DEPARTMENT OF BUSINESS AND INDUSTRY

CONSUMER AFFAIRS DIVISION

IN CLARK COUNTY: (702) 486-7355

ALL OTHER AREAS TOLL-FREE: 1-800-326-5202

2. The sign required pursuant to the provisions of subsection 1 must

include a replica of the great seal of the State of Nevada. The seal must

be 2 inches in diameter and be centered on the face of the sign directly

above the words "STATE OF NEVADA."

3. Any person who violates the provisions of this section is guilty of a

misdemeanor.

Sec. 2. NRS 597.510 is hereby amended to read as follows:

597.510 1. [A] Except as otherwise provided in NRS 597.530, a

person requesting or authorizing the repair of a motor vehicle [is entitled, at

his specific request, to] that is more than $50 must be furnished an

estimate or statement signed by the person making [such] the estimate or

statement on behalf of the garageman, indicating the total charge for the

performance of the work necessary to accomplish the repair, including the

charge for labor and all parts and accessories necessary to [the performance

of such] perform the work.

2. [When] If the estimate is for the purpose of diagnosing a

malfunction, the estimate [shall] must include the cost of [diagnosis] :

(a) Diagnosis and disassembly ; and [the cost of reassembly]

(b) Reassembly, if the person does not authorize the repair.

3. The provisions of this section do not require a garageman to

reassemble a motor vehicle if he determines that the reassembly of the

motor vehicle would render the vehicle unsafe to operate.

  1. Sec. 3. NRS 597.520 is hereby amended to read as follows:
  1. 597.520 [When an estimate has been furnished pursuant to NRS
  1. 597.510, and] Except as otherwise provided in NRS 597.530, if it is
  1. determined that additional charges [exceeding 20 percent of the estimate, or
  1. $40, whichever is less,] are required to perform the repair authorized, and
  1. those additional charges exceed, by 20 percent or $100, whichever is less,
  1. the amount set forth in the estimate or statement required to be furnished
  1. pursuant to the provisions of NRS 597.510, the garageman shall notify the
  1. person authorizing the repairs of the amount of [such] those additional
  1. charges.

Sec. 4. NRS 597.530 is hereby amended to read as follows:

  1. 597.530 [1.] The person authorizing the repairs may waive the
  1. estimate or statement required pursuant to the provisions of NRS 597.510
  1. or the notification required by NRS 597.520 by executing [the waiver
  1. described in subsections 2, 3 and 4.

2.] a written waiver of that requirement or notification. The waiver

[shall] must be executed by the person authorizing the repairs at the time

[of authorization of such repairs. It shall include the following statement set

forth in boldface letters not less than 1/4 inch high:

  1. STATE LAW REQUIRES THAT WHEN A GARAGEMAN HAS
  1. GIVEN A PERSON AUTHORIZING REPAIRS A WRITTEN
  1. ESTIMATE SETTING FORTH THE TOTAL COST FOR LABOR
  1. AND PARTS AND ACCESSORIES TO ACCOMPLISH REPAIRS
  1. ON A MOTOR VEHICLE, NO CHARGE CAN BE MADE
  1. EXCEEDING THE ESTIMATED AMOUNT BY 20 PERCENT OR
  2. $40, WHICHEVER IS LESS, WITHOUT THE CONSENT OF
  1. SUCH PERSON. THE PERSON AUTHORIZING THE REPAIRS
  1. MAY, HOWEVER, WAIVE HIS RIGHT TO SUBSEQUENT
  1. APPROVAL OF INCREASED CHARGES, SHOULD THEY BE
  1. FOUND TO BE NECESSARY, BY EXECUTING THIS WAIVER.
  1. 3. This shall be followed by the certification set forth below, and the
  1. signature of the person authorizing the repairs:
  1. The undersigned hereby certifies that he has read the preceding
  1. statement and knowingly and intentionally waives the right to approve
  1. any increased charges, should they be found necessary to complete the
  1. required repairs on this motor vehicle.
  1. 4. The form containing the waiver shall contain:
  1. (a) The date.
  1. (b) The vehicle make, body type and registration plate number.
  1. (c) The work order number assigned by the garageman to the work to be
  1. performed on the vehicle.
  1. (d) The name, address and telephone number (if any) of the person
  1. authorizing the repairs.] he authorizes those repairs.

Sec. 5. Chapter 487 of NRS is hereby amended by adding thereto the

provisions set forth as sections 6, 7 and 8 of this act.

Sec. 6. A garageman who knowingly fails to obtain a certificate of

registration pursuant to the provisions of NRS 487.560 or to renew that

registration pursuant to the provisions of NRS 487.565 or maintain in

continuous effect the bond required pursuant to the provisions of section

7 of this act may not:

1. Enforce a lien for the cost of repairs made by him to a motor

vehicle during the period in which he failed to obtain or renew the

certificate of registration or maintain the bond in continuous effect; or

2. Sue on any contract for those repairs made during that period.

Sec. 7. 1. Each person who submits an application for registration

pursuant to the provisions of NRS 487.560 must include in the

application a written statement to the department that specifies whether

he agrees to submit to binding arbitration any claims against him arising

out of a contract for repairs made by him to a motor vehicle. If the

person fails to submit the statement to the department or specifies in the

statement that he does not agree to arbitrate those claims, the person

shall file with the department a bond in the amount of $5,000, with a

corporate surety for the bond that is licensed to do business in this state.

The form of the bond must be approved by the attorney general and be

conditioned upon whether the applicant conducts his business as an

owner or operator of a garage without fraud or fraudulent representation

and in compliance with the provisions of NRS 487.035, 487.530 to

487.570, inclusive, and 597.480 to 597.590, inclusive.

2. The bond must be continuous in form and the total aggregate

liability on the bond must be limited to the payment of the total amount

of the bond.

3. In lieu of a bond required to be filed pursuant to the provisions of

subsection 1, a person may deposit with the department, pursuant to the

terms prescribed by the department:

(a) A like amount of money or bonds of the United States or of the

State of Nevada of an actual market value of not less than the amount

fixed by the department; or

(b) A savings certificate of a bank or savings and loan association

located in this state, which must indicate an account of an amount equal

to the amount of the bond that would otherwise be required pursuant to

this section and that the amount is unavailable for withdrawal except

upon order of the department. Interest earned on the certificate accrues

to the account of the applicant.

4. If a claim is arbitrated pursuant to the provisions of this section,

the proceedings for arbitration must be conducted in accordance with the

provisions of NRS 38.015 to 38.205, inclusive.

5. If a person:

(a) Submits the statement to the department specifying that he agrees

to arbitrate a claim pursuant to the provisions of subsection 1; and

(b) Fails to submit to binding arbitration any claim specified in that

subsection,

the person asserting the claim may notify the department of that fact.

Upon receipt of the notice, the department shall, after notice and

hearing, revoke or refuse to renew the certificate of registration of the

person who failed to submit the claim to arbitration.

6. The department may reinstate or renew a certificate of registration

that is revoked pursuant to the provisions of subsection 5 if the person

whose certificate of registration is revoked:

(a) Submits the claim to arbitration pursuant to the provisions of

subsection 4 and notifies the department of that fact; or

(b) Files a bond or makes a deposit with the department pursuant to

the provisions of this section.

Sec. 8. A person who violates any provision of NRS 487.530 to

487.570, inclusive, is guilty of a misdemeanor.

Sec. 9. NRS 487.530 is hereby amended to read as follows:

  1. 487.530 As used in NRS 487.530 to 487.580, inclusive, and sections
  1. 6, 7 and 8 of this act, unless the context otherwise requires, the words and
  1. terms defined in NRS 487.535 to 487.550, inclusive, have the meanings
  1. ascribed to them in those sections.

Sec. 10. NRS 487.560 is hereby amended to read as follows:

  1. 487.560 1. On and after January 1, 1998, a garageman shall register
  1. with the department for authorization to operate a garage.
  1. 2. An application for registration must be on a form provided by the
  1. department. The application must include:
  2. (a) The name of the applicant, including each name under which he
  1. intends to do business;
  1. (b) The complete street address of each location from which the
  1. applicant will be conducting business, including a designation of the
  1. location that will be his principal place of business;
  1. (c) A copy of the business license for each garage operated by the
  1. applicant if the county or city in which the applicant operates a garage
  1. requires such a license;
  1. (d) The type of repair work offered at each garage operated by the
  1. applicant;
  1. (e) The number of mechanics employed at each garage operated by the
  1. applicant; [and]
  1. (f) The statement required by section 7 of this act; and
  1. (g) Any other information required by the department.
  1. 3. For each garage operated by an applicant, the department shall
  1. charge a fee of $25 for the issuance or renewal of registration. If an
  1. applicant operates more than one garage, he may file one application if he
  1. clearly indicates on the application the location of each garage operated by
  1. the applicant and each person responsible for the management of each
  1. garage.
  1. 4. Except as otherwise provided in NRS 487.575, all fees collected
  1. pursuant to this section must be deposited with the state treasurer to the
  1. credit of the account for regulation of salvage pools, automobile wreckers,
  1. body shops and garages.
  1. 5. An applicant for registration or renewal of registration shall notify
  1. the department of any material change in the information contained in his
  1. application for registration or renewal within 10 days after his knowledge
  1. of the change.

Sec. 11. NRS 487.560 is hereby amended to read as follows:

  1. 487.560 1. On and after January 1, 1998, a garageman shall register
  1. with the department for authorization to operate a garage.
  1. 2. An application for registration must be on a form provided by the
  1. department. The application must include:
  1. (a) The name of the applicant, including each name under which he
  1. intends to do business;
  1. (b) The complete street address of each location from which the
  1. applicant will be conducting business, including a designation of the
  1. location that will be his principal place of business;
  1. (c) A copy of the business license for each garage operated by the
  1. applicant if the county or city in which the applicant operates a garage
  1. requires such a license;
  1. (d) The type of repair work offered at each garage operated by the
  1. applicant;
  1. (e) The number of mechanics employed at each garage operated by the
  1. applicant; [and]
  1. (f) The statement required by section 7 of this act; an
  1. d
  2. (g) Any other information required by the department.
  1. 3. For each garage operated by an applicant, the department shall
  1. charge a fee of $25 for the issuance or renewal of registration. If an
  1. applicant operates more than one garage, he may file one application if he
  1. clearly indicates on the application the location of each garage operated by
  1. the applicant and each person responsible for the management of each
  1. garage.
  1. 4. All fees collected pursuant to this section must be deposited with the
  1. state treasurer to the credit of the account for regulation of salvage pools,
  1. automobile wreckers, body shops and garages.
  1. 5. An applicant for registration or renewal of registration shall notify
  1. the department of any material change in the information contained in his
  1. application for registration or renewal within 10 days after his knowledge
  1. of the change.

Sec. 12. NRS 487.565 is hereby amended to read as follows:

  1. 487.565 1. If the department receives an application for registration
  1. that contains the information required by NRS 487.560, it shall issue to the
  1. applicant a certificate of registration for each garage operated by the
  1. applicant. The certificate must contain the [applicant’s name, residential
  1. address,] name of the applicant, the name under which his business [is to]
  1. will be conducted, the [business address,] address of his business and the
  1. registration number for the garage . [and the toll-free telephone number for
  1. consumer information and assistance established by the division pursuant to
  1. NRS 598.990.]
  1. 2. A certificate of registration is valid for 1 year after the date of
  1. issuance. A garageman may renew his registration by submitting to the
  1. department:
  1. (a) An application for renewal on a form provided by the department;
  1. and
  1. (b) The fee for renewal set forth in NRS 487.560.
  1. The application must include the statement required by section 7 of this
  1. act.

Sec. 13. NRS 487.570 is hereby amended to read as follows:

  1. 487.570 A garageman shall [:
  1. 1. Display a sign, in a conspicuous place at each garage operated by
  1. him, that contains the toll-free telephone number for consumer information
  1. and assistance established by the division pursuant to NRS 598.990; and
  1. 2. Comply] comply with the provisions of NRS 597.480 to 597.590,
  1. inclusive.

Sec. 14. NRS 487.580 is hereby amended to read as follows:

  1. 487.580 The advisory board on the repair of motor vehicles shall:
  1. 1. Meet at the call of the chairman at least two times each year;
  1. 2. Make recommendations to the department and the legislature for the
  1. training and certification of garagemen;
  2. 3. Study the need for improving the regulation of practices that govern
  1. the repair of motor vehicles, including, without limitation, the review of
  1. estimates of repair, laws governing deceptive trade practices relating to the
  1. repair of motor vehicles and the fees for the licensure of garages;
  1. 4. Identify and analyze any problems within the industry of motor
  1. vehicle repair and make recommendations to the department, the division
  1. and the legislature to address the problems through governmental
  1. regulation or private industry, or both;
  1. 5. Provide information to the division concerning the development of a
  1. program to provide information to the general public pursuant to the
  1. provisions of NRS 598.990;
  1. 6. Advise the division and the department on methods to investigate
  1. consumer complaints relating to the repair of motor vehicles;
  1. 7. Identify, study and monitor the available sources within each
  1. community for mediation and arbitration of [such] those complaints and
  1. report its findings and recommendations to the division for the
  1. establishment of an effective and complete system of mediation and
  1. arbitration; and
  1. 8. Submit to the director of the legislative counsel bureau for
  1. transmission to the [70th] 71st session of the Nevada legislature a report
  1. that summarizes the activities of the advisory board and any
  1. recommendations made by the advisory board.

Sec. 15. Section 31 of chapter 390, Statutes of Nevada 1997, at page

1377, is hereby amended to read as follows:

  1. Sec. 31. 1. This section and sections 1 to 10, inclusive, and 13
  1. to 30, inclusive, of this act become effective upon passage and
  1. approval.
  1. 2. Sections 11 and 12 of this act become effective upon passage
  1. and approval for the purpose of appointing members to the advisory
  1. board on the repair of motor vehicles and on July 1, 1997, for all other
  1. purposes, and expire by limitation on July 1, [1999.] 2001.

Sec. 16. 1. Unless a garageman is required to renew his registration

before January 1, 2000, each garageman who is registered pursuant to the

provisions of NRS 487.565 shall, not later than January 1, 2000, submit to

the department of motor vehicles and public safety the statement required

by section 7 of this act.

2. If a garageman specified in subsection 1 fails to submit the statement

within the period required by that subsection or indicates in the statement

that he does not agree to arbitrate those claims, the garageman shall, not

later than February 1, 2000:

(a) File with the department of motor vehicles and public safety the

bond specified in section 7 of this act; or

(b) Deposit with the department the amount of money, bonds or savings

certificate specified in that section.

Sec. 17. The amendatory provisions of this act do not apply to

offenses committed before October 1, 1999.

Sec. 18. 1. This section and sections 15 and 16 of this act become

effective upon passage and approval.

2. Sections 1 to 10, inclusive, 12, 13, 14 and 17 of this act become

effective on October 1, 1999.

3. Section 11 of this act becomes effective at 12:01 a.m. on July 1,

2001.

Sec. 19. In preparing the reprint and supplements to the Nevada

Revised Statutes, the legislative counsel shall ensure that:

1. The word "You" at the beginning of each sentence included in the

Nevada Automotive Repair Customer Bill of Rights set forth in section 1 of

this act is printed in boldface letters; and

2. Each word that is underscored in those sentences is printed in

boldface, underscored and italicized letters.

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