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
February 16, 1999
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Referred to Committee on Commerce and Labor
SUMMARY—Revises provisions concerning automotive repairs. (BDR 52-1232)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: Yes.
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EXPLANATION – Matter in
bolded italics is new; matter between brackets
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1
Section 1. NRS 597.490 is hereby amended to read as follows: 597.490 1.1-3
those areas of his place of business frequented by persons seeking repairs1-4
on motor vehicles a sign, not less than 22 inches by 28 inches in size,1-5
setting forth in boldface letters the following:1-6
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STATE OF NEVADA2-5
REGISTERED GARAGE2-6
THIS GARAGE IS REGISTERED WITH THE2-8
NEVADA AUTOMOTIVE REPAIR CUSTOMER2-10
AS A CUSTOMER IN NEVADA:2-11
YOU have the right to receive repairs from a business that is2-12
REGISTERED with the department of motor vehicles and public2-13
safety that will ensure the proper repair of your vehicle. (NRS2-14
597.490)2-15
YOU have the right to receive a WRITTEN ESTIMATE of charges2-16
for repairs made to your vehicle which exceed $50. (NRS 597.510)2-17
YOU have the right to read and understand all documents and2-18
warranties BEFORE YOU SIGN THEM. (NRS 597.490)2-19
YOU have the right to INSPECT ALL REPLACED PARTS and2-20
accessories that are covered by a warranty and for which a charge is2-21
made. (NRS 597.550)2-22
YOU have the right to request that all replaced parts and accessories2-23
that are not covered by a warranty BE RETURNED TO YOU AT2-24
THE TIME OF SERVICE. (NRS 597.550)2-25
YOU have the right to require authorization BEFORE any2-26
additional repairs are made to your vehicle if the charges for those2-27
repairs exceed 20% of the original estimate or $100, whichever is2-28
less. (NRS 597.520)2-29
YOU have the right to receive a COMPLETED STATEMENT OF2-30
CHARGES for repairs made to your vehicle. (NRS 487.035)3-1
YOU have the right to a FAIR RESOLUTION of any dispute that3-2
develops concerning the repair of your vehicle. (NRS 597.490)3-3
FOR MORE INFORMATION PLEASE CONTACT:3-4
THE DEPARTMENT OF BUSINESS AND INDUSTRY3-5
CONSUMER AFFAIRS DIVISION3-6
IN CLARK COUNTY: (702) 486-73553-7
ALL OTHER AREAS TOLL-FREE: 1-800-326-52023-8
2. The sign required pursuant to the provisions of subsection 1 must3-9
include a replica of the great seal of the State of Nevada. The seal must3-10
be 2 inches in diameter and be centered on the face of the sign directly3-11
above the words "STATE OF NEVADA."3-12
3. Any person who violates the provisions of this section is guilty of a3-13
misdemeanor.3-14
Sec. 2. NRS 597.510 is hereby amended to read as follows: 597.510 1.3-16
person requesting or authorizing the repair of a motor vehicle3-17
3-18
estimate or statement signed by the person making3-19
statement on behalf of the garageman, indicating the total charge for the3-20
performance of the work necessary to accomplish the repair, including the3-21
charge for labor and all parts and accessories necessary to3-22
3-23
2.3-24
malfunction, the estimate3-25
(a) Diagnosis and disassembly ; and3-26
(b) Reassembly, if the person does not authorize the repair.3-27
3. The provisions of this section do not require a garageman to3-28
reassemble a motor vehicle if he determines that the reassembly of the3-29
motor vehicle would render the vehicle unsafe to operate.3-30
Sec. 3. NRS 597.520 is hereby amended to read as follows: 597.5203-32
3-33
determined that additional charges3-34
3-35
those additional charges exceed, by 20 percent or $100, whichever is less,3-36
the amount set forth in the estimate or statement required to be furnished3-37
pursuant to the provisions of NRS 597.510, the garageman shall notify the4-1
person authorizing the repairs of the amount of4-2
charges.4-3
Sec. 4. NRS 597.530 is hereby amended to read as follows: 597.5304-5
estimate or statement required pursuant to the provisions of NRS 597.5104-6
or the notification required by NRS 597.520 by executing4-7
4-8
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Sec. 5. Chapter 487 of NRS is hereby amended by adding thereto the4-37
provisions set forth as sections 6, 7 and 8 of this act.4-38
Sec. 6. A garageman who knowingly fails to obtain a certificate of4-39
registration pursuant to the provisions of NRS 487.560 or to renew that5-1
registration pursuant to the provisions of NRS 487.565 or maintain in5-2
continuous effect the bond required pursuant to the provisions of section5-3
7 of this act may not:5-4
1. Enforce a lien for the cost of repairs made by him to a motor5-5
vehicle during the period in which he failed to obtain or renew the5-6
certificate of registration or maintain the bond in continuous effect; or5-7
2. Sue on any contract for those repairs made during that period.5-8
Sec. 7. 1. Each person who submits an application for registration5-9
pursuant to the provisions of NRS 487.560 must include in the5-10
application a written statement to the department that specifies whether5-11
he agrees to submit to binding arbitration any claims against him arising5-12
out of a contract for repairs made by him to a motor vehicle. If the5-13
person fails to submit the statement to the department or specifies in the5-14
statement that he does not agree to arbitrate those claims, the person5-15
shall file with the department a bond in the amount of $5,000, with a5-16
corporate surety for the bond that is licensed to do business in this state.5-17
The form of the bond must be approved by the attorney general and be5-18
conditioned upon whether the applicant conducts his business as an5-19
owner or operator of a garage without fraud or fraudulent representation5-20
and in compliance with the provisions of NRS 487.035, 487.530 to5-21
487.570, inclusive, and 597.480 to 597.590, inclusive.5-22
2. The bond must be continuous in form and the total aggregate5-23
liability on the bond must be limited to the payment of the total amount5-24
of the bond.5-25
3. In lieu of a bond required to be filed pursuant to the provisions of5-26
subsection 1, a person may deposit with the department, pursuant to the5-27
terms prescribed by the department:5-28
(a) A like amount of money or bonds of the United States or of the5-29
State of Nevada of an actual market value of not less than the amount5-30
fixed by the department; or5-31
(b) A savings certificate of a bank or savings and loan association5-32
located in this state, which must indicate an account of an amount equal5-33
to the amount of the bond that would otherwise be required pursuant to5-34
this section and that the amount is unavailable for withdrawal except5-35
upon order of the department. Interest earned on the certificate accrues5-36
to the account of the applicant.5-37
4. If a claim is arbitrated pursuant to the provisions of this section,5-38
the proceedings for arbitration must be conducted in accordance with the5-39
provisions of NRS 38.015 to 38.205, inclusive.5-40
5. If a person:5-41
(a) Submits the statement to the department specifying that he agrees5-42
to arbitrate a claim pursuant to the provisions of subsection 1; and6-1
(b) Fails to submit to binding arbitration any claim specified in that6-2
subsection,6-3
the person asserting the claim may notify the department of that fact.6-4
Upon receipt of the notice, the department shall, after notice and6-5
hearing, revoke or refuse to renew the certificate of registration of the6-6
person who failed to submit the claim to arbitration.6-7
6. The department may reinstate or renew a certificate of registration6-8
that is revoked pursuant to the provisions of subsection 5 if the person6-9
whose certificate of registration is revoked:6-10
(a) Submits the claim to arbitration pursuant to the provisions of6-11
subsection 4 and notifies the department of that fact; or6-12
(b) Files a bond or makes a deposit with the department pursuant to6-13
the provisions of this section.6-14
Sec. 8. A person who violates any provision of NRS 487.530 to6-15
487.570, inclusive, is guilty of a misdemeanor.6-16
Sec. 9. NRS 487.530 is hereby amended to read as follows: 487.530 As used in NRS 487.530 to 487.580, inclusive, and sections6-18
6, 7 and 8 of this act, unless the context otherwise requires, the words and6-19
terms defined in NRS 487.535 to 487.550, inclusive, have the meanings6-20
ascribed to them in those sections.6-21
Sec. 10. NRS 487.560 is hereby amended to read as follows: 487.560 1. On and after January 1, 1998, a garageman shall register6-23
with the department for authorization to operate a garage.6-24
2. An application for registration must be on a form provided by the6-25
department. The application must include:6-26
(a) The name of the applicant, including each name under which he6-27
intends to do business;6-28
(b) The complete street address of each location from which the6-29
applicant will be conducting business, including a designation of the6-30
location that will be his principal place of business;6-31
(c) A copy of the business license for each garage operated by the6-32
applicant if the county or city in which the applicant operates a garage6-33
requires such a license;6-34
(d) The type of repair work offered at each garage operated by the6-35
applicant;6-36
(e) The number of mechanics employed at each garage operated by the6-37
applicant;6-38
(f) The statement required by section 7 of this act; and6-39
(g) Any other information required by the department.6-40
3. For each garage operated by an applicant, the department shall6-41
charge a fee of $25 for the issuance or renewal of registration. If an6-42
applicant operates more than one garage, he may file one application if he7-1
clearly indicates on the application the location of each garage operated by7-2
the applicant and each person responsible for the management of each7-3
garage.7-4
4. Except as otherwise provided in NRS 487.575, all fees collected7-5
pursuant to this section must be deposited with the state treasurer to the7-6
credit of the account for regulation of salvage pools, automobile wreckers,7-7
body shops and garages.7-8
5. An applicant for registration or renewal of registration shall notify7-9
the department of any material change in the information contained in his7-10
application for registration or renewal within 10 days after his knowledge7-11
of the change.7-12
Sec. 11. NRS 487.560 is hereby amended to read as follows: 487.560 1. On and after January 1, 1998, a garageman shall register7-14
with the department for authorization to operate a garage.7-15
2. An application for registration must be on a form provided by the7-16
department. The application must include:7-17
(a) The name of the applicant, including each name under which he7-18
intends to do business;7-19
(b) The complete street address of each location from which the7-20
applicant will be conducting business, including a designation of the7-21
location that will be his principal place of business;7-22
(c) A copy of the business license for each garage operated by the7-23
applicant if the county or city in which the applicant operates a garage7-24
requires such a license;7-25
(d) The type of repair work offered at each garage operated by the7-26
applicant;7-27
(e) The number of mechanics employed at each garage operated by the7-28
applicant;7-29
(f) The statement required by section 7 of this act; and7-30
(g) Any other information required by the department.7-31
3. For each garage operated by an applicant, the department shall7-32
charge a fee of $25 for the issuance or renewal of registration. If an7-33
applicant operates more than one garage, he may file one application if he7-34
clearly indicates on the application the location of each garage operated by7-35
the applicant and each person responsible for the management of each7-36
garage.7-37
4. All fees collected pursuant to this section must be deposited with the7-38
state treasurer to the credit of the account for regulation of salvage pools,7-39
automobile wreckers, body shops and garages.7-40
5. An applicant for registration or renewal of registration shall notify7-41
the department of any material change in the information contained in his7-42
application for registration or renewal within 10 days after his knowledge7-43
of the change.8-1
Sec. 12. NRS 487.565 is hereby amended to read as follows: 487.565 1. If the department receives an application for registration8-3
that contains the information required by NRS 487.560, it shall issue to the8-4
applicant a certificate of registration for each garage operated by the8-5
applicant. The certificate must contain the8-6
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will be conducted, the8-8
registration number for the garage .8-9
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2. A certificate of registration is valid for 1 year after the date of8-12
issuance. A garageman may renew his registration by submitting to the8-13
department:8-14
(a) An application for renewal on a form provided by the department;8-15
and8-16
(b) The fee for renewal set forth in NRS 487.560.8-17
The application must include the statement required by section 7 of this8-18
act.8-19
Sec. 13. NRS 487.570 is hereby amended to read as follows: 487.570 A garageman shall8-21
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inclusive.8-26
Sec. 14. NRS 487.580 is hereby amended to read as follows: 487.580 The advisory board on the repair of motor vehicles shall:8-28
1. Meet at the call of the chairman at least two times each year;8-29
2. Make recommendations to the department and the legislature for the8-30
training and certification of garagemen;8-31
3. Study the need for improving the regulation of practices that govern8-32
the repair of motor vehicles, including, without limitation, the review of8-33
estimates of repair, laws governing deceptive trade practices relating to the8-34
repair of motor vehicles and the fees for the licensure of garages;8-35
4. Identify and analyze any problems within the industry of motor8-36
vehicle repair and make recommendations to the department, the division8-37
and the legislature to address the problems through governmental8-38
regulation or private industry, or both;8-39
5. Provide information to the division concerning the development of a8-40
program to provide information to the general public pursuant to the8-41
provisions of NRS 598.990;9-1
6. Advise the division and the department on methods to investigate9-2
consumer complaints relating to the repair of motor vehicles;9-3
7. Identify, study and monitor the available sources within each9-4
community for mediation and arbitration of9-5
report its findings and recommendations to the division for the9-6
establishment of an effective and complete system of mediation and9-7
arbitration; and9-8
8. Submit to the director of the legislative counsel bureau for9-9
transmission to the9-10
that summarizes the activities of the advisory board and any9-11
recommendations made by the advisory board.9-12
Sec. 15. Section 31 of chapter 390, Statutes of Nevada 1997, at page9-13
1377, is hereby amended to read as follows: Sec. 31. 1. This section and sections 1 to 10, inclusive, and 139-15
to 30, inclusive, of this act become effective upon passage and9-16
approval.9-17
2. Sections 11 and 12 of this act become effective upon passage9-18
and approval for the purpose of appointing members to the advisory9-19
board on the repair of motor vehicles and on July 1, 1997, for all other9-20
purposes, and expire by limitation on July 1,9-21
Sec. 16. 1. Unless a garageman is required to renew his registration9-22
before January 1, 2000, each garageman who is registered pursuant to the9-23
provisions of NRS 487.565 shall, not later than January 1, 2000, submit to9-24
the department of motor vehicles and public safety the statement required9-25
by section 7 of this act.9-26
2. If a garageman specified in subsection 1 fails to submit the statement9-27
within the period required by that subsection or indicates in the statement9-28
that he does not agree to arbitrate those claims, the garageman shall, not9-29
later than February 1, 2000:9-30
(a) File with the department of motor vehicles and public safety the9-31
bond specified in section 7 of this act; or9-32
(b) Deposit with the department the amount of money, bonds or savings9-33
certificate specified in that section.9-34
Sec. 17. The amendatory provisions of this act do not apply to9-35
offenses committed before October 1, 1999.9-36
Sec. 18. 1. This section and sections 15 and 16 of this act become9-37
effective upon passage and approval.9-38
2. Sections 1 to 10, inclusive, 12, 13, 14 and 17 of this act become9-39
effective on October 1, 1999.9-40
3. Section 11 of this act becomes effective at 12:01 a.m. on July 1,9-41
2001.10-1
Sec. 19. In preparing the reprint and supplements to the Nevada10-2
Revised Statutes, the legislative counsel shall ensure that:10-3
1. The word "You" at the beginning of each sentence included in the10-4
Nevada Automotive Repair Customer Bill of Rights set forth in section 1 of10-5
this act is printed in boldface letters; and10-6
2. Each word that is underscored in those sentences is printed in10-7
boldface, underscored and italicized letters.~