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Assembly Bill No. 2–Assemblyman Anderson

CHAPTER..........

AN ACT relating to automotive repairs; requiring a garage or body

shop to repair a motor vehicle in accordance with the

specifications of the manufacturer of the motor vehicle and

the written estimate or statement of the cost of repairs most

recently agreed upon by the garage or body shop and the

person authorizing the repairs; requiring a body shop to

comply with certain other requirements relating to the repair

of a motor vehicle; providing a penalty; and providing other

matters properly relating thereto.

Legislative Counsel’s Digest:

Under existing law, a garage is required to display a sign in a conspicuous area

of the garage setting forth the rights of the customer, including, without limitation,

the right to receive a written estimate of charges and to inspect all replaced parts.

(NRS 597.490) In addition, garages that perform repairs of $50 or more on motor

vehicles are required by existing law to provide the person authorizing the repairs

with a written estimate of the total cost to repair the motor vehicle. (NRS 597.510)

If additional charges are required to perform the repairs, the garage is required to

obtain the consent of the person authorizing the repairs before it may perform the

repairs for the additional charges. (NRS 597.520, 597.540) A person authorizing

repairs of a motor vehicle may waive the requirement for a written estimate or

approval of additional charges. (NRS 597.530)

Section 1 of this bill requires garages and body shops to perform repairs to a

motor vehicle in accordance with the specifications of the manufacturer of the

motor vehicle, if any, and the written estimate or statement of the cost of the repairs

that is most recently agreed upon by the body shop or garage and the person

authorizing the repairs.

Sections 2-10 of this bill make existing provisions of law that are applicable to

garages and garagemen also apply to body shops. Those provisions include, without

limitation, the requirement to post a sign in a conspicuous area of the body shop

setting forth the rights of customers of the body shop.

Sections 11 and 12 of this bill authorize injunctive relief and civil penalties for

a violation of the provisions of section 1 of this bill. Section 16 of this bill

authorizes the Department of Motor Vehicles to refuse to issue a license or to

suspend, revoke or refuse to renew the license of a body shop for willful failure to

comply with the provisions of section 1 of this bill.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 597 of NRS is hereby amended by adding

thereto a new section to read as follows:

If a body shop or garage performs repairs on a motor vehicle,

the body shop or garage shall perform the repairs in accordance

with any specifications of the manufacturer of the motor vehicle,

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and the written estimate or statement of the cost of the repairs that

is most recently agreed upon by the body shop or garage and the

person authorizing repairs.

Sec. 2. NRS 597.480 is hereby amended to read as follows:

597.480 As used in NRS 597.480 to 597.590, inclusive, and

section 1 of this act, unless the context otherwise requires:

1. “Body shop” has the meaning ascribed to it in

NRS 487.600.

2. “Garage” has the meaning ascribed to it in NRS 487.540.

[

2.] 3. “Garageman” has the meaning ascribed to it in

NRS 487.545.

[

3.] 4. “Motor vehicle” means:

(a) A motorcycle as defined in NRS 482.070;

(b) A motortruck as defined in NRS 482.073 if the gross weight

of the vehicle does not exceed 10,000 pounds;

(d) A mini motor home as defined in NRS 482.066;

(e) A motor home as defined in NRS 482.071; and

(f) A recreational vehicle as defined in NRS 482.101.

[

4.] 5. “Person authorizing repairs” means a person who uses

the services of a garage. The term includes an insurance company,

its agents or representatives, authorizing repairs to motor vehicles

under a policy of insurance.

Sec. 3. NRS 597.490 is hereby amended to read as follows:

597.490 1. 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 OF NEVADA

REGISTERED GARAGE

THIS GARAGE IS REGISTERED WITH THE

DEPARTMENT OF MOTOR VEHICLES

NEVADA AUTOMOTIVE REPAIR CUSTOMER

BILL OF RIGHTS

AS A CUSTOMER IN NEVADA:

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

REGISTERED

with the Department of Motor Vehicles that will

ensure the proper repair of your vehicle. (NRS 597.490)

YOU have the right to receive a WRITTEN ESTIMATE

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. Each body shop shall display conspicuously in those areas

of its place of business frequented by persons seeking repairs on

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

setting forth in boldface letters the following:

STATE OF NEVADA

LICENSED BODY SHOP

THIS BODY SHOP IS LICENSED BY THE

DEPARTMENT OF MOTOR VEHICLES

NEVADA AUTOMOTIVE REPAIR CUSTOMER

BILL OF RIGHTS

AS A CUSTOMER IN NEVADA:

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

LICENSED with the Department of Motor Vehicles 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)

– 5 –

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

3. The sign required pursuant to the provisions of subsection 1

or 2 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.] 4. Any person who violates the provisions of this section

is guilty of a misdemeanor.

Sec. 4. NRS 597.500 is hereby amended to read as follows:

597.500 Whenever any body shop or garageman accepts or

assumes control of a motor vehicle for the purpose of making or

completing any repair, [

he] the body shop or garageman shall

comply with the provisions of NRS 597.510 to 597.570, inclusive [.]

, and section 1 of this act.

Sec. 5. NRS 597.510 is hereby amended to read as follows:

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

person requesting or authorizing the repair of a motor vehicle that is

more than $50 must be furnished an estimate or statement signed by

the person making the estimate or statement on behalf of the body

shop or 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 perform the

work.

2. If the estimate is for the purpose of diagnosing a

malfunction, the estimate must include the cost of:

(a) Diagnosis and disassembly; and

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

3. The provisions of this section do not require a body shop or

garageman to reassemble a motor vehicle if he determines that the

reassembly of the motor vehicle would render the vehicle unsafe to

operate.

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Sec. 6. NRS 597.520 is hereby amended to read as follows:

597.520 Except as otherwise provided in NRS 597.530, if it is

determined that additional charges are required to perform the repair

authorized, and those additional charges exceed, by 20 percent or

$100, whichever is less, the amount set forth in the estimate or

statement required to be furnished pursuant to the provisions of

NRS 597.510, the body shop or garageman shall notify the [

person

authorizing the repairs] owner and insurer of the motor vehicle of

the amount of those additional charges.

Sec. 7. NRS 597.540 is hereby amended to read as follows:

597.540 1. [A person authorizing repairs] An owner and the

insurer of a motor vehicle who [

has] have been notified of

additional charges pursuant to NRS 597.520 shall:

(a) Authorize the performance of the repair at the additional

expense; or

(b) Without delay, and upon payment of the authorized charges,

take possession of the motor vehicle.

2. Until the election provided for in subsection 1 has been

made, the body shop or garageman shall not undertake any repair

which would involve such additional charges.

3. If the [

person] owner or insurer of the motor vehicle elects

to take possession of the motor vehicle but fails to take possession

within a 24-hour period after [

such] the election, the body shop or

garageman may charge for storage of the vehicle.

Sec. 8. NRS 597.550 is hereby amended to read as follows:

597.550 1. Whenever the repair work performed on a motor

vehicle requires the replacement of any parts or accessories, the

body shop or garageman shall, at the request of the person

authorizing the repairs or any person entitled to possession of the

motor vehicle, deliver to [

such] the person all parts and accessories

replaced as a result of the work done.

2. The provisions of subsection 1 do not apply to parts or

accessories which must be returned to a manufacturer or distributor

under a warranty arrangement or which are subject to exchange, but

the customer on request is entitled to be shown [

such] the warranty

parts for which a charge is made.

Sec. 9. NRS 597.560 is hereby amended to read as follows:

597.560 The body shop or garageman shall retain copies of

any estimate, statement or waiver required by NRS 597.510 to

597.550, inclusive, as an ordinary business record of the body shop

or garage, for a period of not less than 1 year [

from] after the date

[such] the estimate, statement or waiver is signed.

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Sec. 10. NRS 597.570 is hereby amended to read as follows:

597.570 In every instance where charges are made for the

repair of a motor vehicle [

,] by a garageman, the garageman making

the repairs shall comply with the provisions of NRS 487.035 as well

as the provisions of NRS 597.510 to 597.550, inclusive. [

He] A

garageman is not entitled to detain a motor vehicle by virtue of any

common law or statutory lien, or otherwise enforce such a lien, [nor

shall he have the right] or to sue on any contract for repairs made by

him, unless he has complied with the requirements of NRS 597.510

to 597.550, inclusive, in addition to those of NRS 487.035.

Sec. 11. NRS 597.580 is hereby amended to read as follows:

597.580 The Attorney General or any district attorney may

bring an action in any court of competent jurisdiction in the name of

the State of Nevada on the complaint of the Commissioner of

Consumer Affairs or of any person allegedly aggrieved by such

violation to enjoin any violation of the provisions of NRS 597.510

to 597.570, inclusive [

.] , and section 1 of this act.

Sec. 12. NRS 597.590 is hereby amended to read as follows:

597.590 Any person who knowingly violates any provision of

NRS 597.500 to 597.570, inclusive, and section 1 of this act is

liable, in addition to any other penalty or remedy which may be

provided by law, to a civil penalty of not more than $500 for each

offense, which may be recovered by civil action on complaint of the

Commissioner of Consumer Affairs, the Director of the Department

of Business and Industry or the district attorney.

Sec. 13. NRS 598.990 is hereby amended to read as follows:

598.990 The Division shall:

1. Establish and maintain a toll-free telephone number for

persons to report to the Division information concerning alleged

violations of NRS 487.035, 487.530 to 487.570, inclusive, 597.480

to 597.590, inclusive, and section 1 of this act, and 598.0903 to

598.0999, inclusive.

2. Develop a program to provide information to the public

concerning:

(a) The duties imposed on a body shop by the provisions of

NRS 487.035, 487.610 to 487.690, inclusive, and 597.480 to

597.590, inclusive, and section 1 of this act;

(b) The duties imposed on a garageman by the provisions of

NRS 487.035, 487.530 to 487.570, inclusive, and 597.480 to

597.590, inclusive [

;

(b)] , and section 1 of this act;

the services of a garage;

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[(c)] (d) The repair of motor vehicles; and

[

(d)] (e) Deceptive trade practices relating to the repair of motor

vehicles by a garage.

Sec. 14. (Deleted by amendment.)

Sec. 15. (Deleted by amendment.)

Sec. 16. NRS 487.650 is hereby amended to read as follows:

487.650 1. The Department may refuse to issue a license or,

after notice and hearing, may suspend, revoke or refuse to renew a

license to operate a body shop upon any of the following grounds:

(a) Failure of the applicant or licensee to have or maintain an

established place of business in this State.

(b) Conviction of the applicant or licensee or an employee of the

applicant or licensee of a felony, or of a misdemeanor or gross

misdemeanor for a violation of a provision of this chapter.

(d) Willful failure of the applicant or licensee to comply with the

motor vehicle laws of this State and NRS 487.035, 487.610 to

487.690, inclusive, or 597.480 to 597.590, inclusive [

.] , and section

1 of this act.

(e) Failure or refusal by the licensee to pay or otherwise

discharge any final judgment against him arising out of the

operation of the body shop.

(f) Failure or refusal to provide to the Department an

authorization for the disclosure of financial records for the business

as required pursuant to subsection 2.

(g) A finding of guilt by a court of competent jurisdiction in a

case involving a fraudulent inspection, purchase, sale or transfer of a

salvage vehicle by the applicant or licensee or an employee of the

applicant or licensee.

(h) An improper, careless or negligent inspection of a salvage

vehicle pursuant to NRS 487.800 by the applicant or licensee or an

employee of the applicant or licensee.

(i) A false statement of material fact in a certification of a

salvage vehicle pursuant to NRS 487.800 or a record regarding a

salvage vehicle by the applicant or licensee or an employee of the

applicant or licensee.

2. Upon the receipt of any report or complaint alleging that an

applicant or a licensee has engaged in financial misconduct or has

failed to satisfy financial obligations related to the operation of a

body shop, the Department may require the applicant or licensee to

submit to the Department an authorization for the disclosure of

financial records for the business as provided in NRS 239A.090.

The Department may use any information obtained pursuant to such

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an authorization only to determine the suitability of the applicant or

licensee for initial or continued licensure. Information obtained

pursuant to such an authorization may be disclosed only to those

employees of the Department who are authorized to issue a license

to an applicant pursuant to NRS 487.610 to 487.690, inclusive, or to

determine the suitability of an applicant or a licensee for [

such]

licensure.

3. As used in this section, “salvage vehicle” has the meaning

ascribed to it in NRS 487.770.

Sec. 17. (Deleted by amendment.)

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