HB-4344, As Passed House, May 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

SENATE SUBSTITUTE FOR

 

HOUSE BILL NO. 4344

 

 

 

 

 

 

 

 

 

 

 

 

      A bill to amend 1974 PA 300, entitled

 

"Motor vehicle service and repair act,"

 

by amending sections 2, 2a, 3, 7, 9, 10, 11, 12, 13, 14, 15, 16,

 

17, 18, 19, 20, 21, 22, 30, 32, 33, 34a, 36, and 39 (MCL 257.1302,

 

257.1302a, 257.1303, 257.1307, 257.1309, 257.1310, 257.1311,

 

257.1312, 257.1313, 257.1314, 257.1315, 257.1316, 257.1317,

 

257.1318, 257.1319, 257.1320, 257.1321, 257.1322, 257.1330,

 

257.1332, 257.1333, 257.1334a, 257.1336, and 257.1339), sections 2

 

and 10 as amended by 2016 PA 33, section 2a as added and sections

 

18, 22, and 30 as amended by 1988 PA 254, and section 17 as amended

 

by 2002 PA 464, and by adding sections 7a, 7b, 7c, 7d, 7e, 7f, 7g,

 

10b, 13a, 13b, and 32a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 2. As used in this act:

 

 2        (a) "Administrator" means the secretary of state or any

 

 3  individual designated by the secretary of state to act in his or

 

 4  her place.

 

 5        (b) "Advertise" means to advise, announce, apprise, command,

 

 6  give notice of, inform, make known, or publish any material that

 

 7  calls to the attention of the public the availability of parts and

 

 8  services.

 

 9        (c) "Approved educational institution" means a school,

 

10  academy, or other similar establishment approved by the

 

11  administrator under section 13a to provide training to mechanics or

 

12  mechanical trainees under this act.

 

13        (d) "Automobile or light truck" means a motor vehicle that has

 

14  a gross vehicle weight of less than 10,000 pounds.

 

15        (e) (b) "BAIID mechanic" means a specialty mechanic who holds

 

16  a certification from the department under section 10 to perform

 

17  BAIID service.

 

18        (f) (c) "BAIID service" means the installation, removal,

 

19  repair, or other servicing of breath alcohol ignition interlock

 

20  devices.

 

21        (g) (d) "Breath alcohol ignition interlock device" or "BAIID"

 

22  means that term as defined in section 20d of the Michigan vehicle

 

23  code, 1949 PA 300, MCL 257.20d.

 

24        (h) "Contract" means a written or oral agreement, or a similar

 

25  understanding or arrangement, in which a person agrees that another

 

26  person will perform work, labor, diagnosis, repair, reconditioning,

 

27  replacement, adjustment, or alteration, directly or indirectly, on


 1  a motor vehicle.

 

 2        (i) "Customer" means the owner or operator of a motor vehicle.

 

 3        (j) (e) "Department" means the department of state.

 

 4        (f) "Master mechanic" means a motor vehicle mechanic or

 

 5  specialty mechanic who is certified by the department under this

 

 6  act in all of the specific repair or service categories described

 

 7  in section 10(1).

 

 8        (g) "Motor vehicle" means a vehicle that is self-propelled, a

 

 9  vehicle that is propelled by electric power, a motorcycle, or a

 

10  trailer, as those terms are defined in the Michigan vehicle code,

 

11  1949 PA 300, MCL 257.1 to 257.923. For the purposes of this act, a

 

12  motor vehicle does not include the dwelling or sleeping portions of

 

13  a motor home, trailer, or any recreational vehicle that has similar

 

14  facilities that are not directly connected with the drive mechanism

 

15  of the vehicle or other areas of repair that would require

 

16  certification of motor vehicle mechanics as specified in this act

 

17  or rules promulgated under this act.

 

18        (h) "Motor vehicle mechanic" means a technician or other

 

19  individual who, for compensation, repairs motor vehicles, including

 

20  the reconditioning, replacement, adjustment, or alteration of the

 

21  operating condition, of any component or subassembly of a motor

 

22  vehicle.

 

23        (i) "Mechanic trainee" means an individual who desires to

 

24  become a motor vehicle mechanic, a specialty mechanic, or a master

 

25  mechanic and receives a permit from the administrator under this

 

26  act.

 

27        (j) "Motor vehicle repair facility" means a place of business


 1  that, for compensation, is engaged in the business of performing,

 

 2  or employs individuals who perform, maintenance, diagnosis, vehicle

 

 3  body work, repair service, or, beginning July 1, 2016, BAIID

 

 4  service, on a motor vehicle for compensation. The term does not

 

 5  include any of the following:

 

 6        (i) An individual who engages only in the business of

 

 7  repairing the motor vehicles of a single commercial or industrial

 

 8  establishment or governmental agency.

 

 9        (ii) An individual who is repairing his or her own or a family

 

10  member's car.

 

11        (iii) A business that does not diagnose the operation of a

 

12  motor vehicle, does not remove parts from a motor vehicle to be

 

13  remachined, and does not install finished machined or remachined

 

14  parts on a motor vehicle, not including a motor vehicle repair

 

15  facility that engages in the business of performing or employing

 

16  persons who perform vehicle body work.

 

17        (iv) A BAIID facility described in section 625k(14)(d) of the

 

18  Michigan vehicle code, 1949 PA 300, MCL 257.625k.

 

19        (k) "Specialty mechanic" means a motor vehicle mechanic who is

 

20  certified by the department for a specific repair or service

 

21  category or categories described in section 10(1).

 

22        (k) "Distressed vehicle" means that term as defined in section

 

23  12a of the Michigan vehicle code, 1949 PA 300, MCL 257.12a.

 

24        (l) "Estimate" means a written statement that itemizes as

 

25  closely as possible the price for labor, by showing the labor price

 

26  per hour, the number of hours required to perform the work, and the

 

27  price of parts necessary for a specific repair.

 1        (m) "Facility" or "motor vehicle repair facility" means a

 

 2  place of business that is required to register under this act and

 

 3  that, for compensation, is engaged in the business of performing,

 

 4  or employs individuals who perform, maintenance, diagnosis, vehicle

 

 5  body work, or repair service, or, beginning July 1, 2016, BAIID

 

 6  service, on a motor vehicle. The term does not include any of the

 

 7  following:

 

 8        (i) A person that engages only in the business of repairing

 

 9  the motor vehicles of a single commercial or industrial

 

10  establishment or governmental agency.

 

11        (ii) An individual who is repairing his or her own or a family

 

12  member's motor vehicle.

 

13        (iii) A business that does not diagnose the operation of a

 

14  motor vehicle, does not remove parts from a motor vehicle to be

 

15  remachined, and does not install finished machined or remachined

 

16  parts on a motor vehicle. This subparagraph does not apply to a

 

17  motor vehicle repair facility that engages in the business of

 

18  performing, or employing individuals who perform, vehicle body

 

19  work.

 

20        (iv) A BAIID facility described in section 625k(14)(d) of the

 

21  Michigan vehicle code, 1949 PA 300, MCL 257.625k.

 

22        (n) "Heavy-duty truck" means a motor vehicle that has a gross

 

23  vehicle weight of 10,000 pounds or more and includes both single-

 

24  unit and combination tractor trailer or tractor semitrailer

 

25  vehicles.

 

26        (o) "Late model vehicle" means that term as defined in section

 

27  24b of the Michigan vehicle code, 1949 PA 300, MCL 257.24b.

 1        (p) "Lien" means a security interest in or other encumbrance

 

 2  on a motor vehicle. The term includes a security interest created

 

 3  by agreement, a judicial lien obtained by legal or equitable

 

 4  process or proceedings, a common-law lien, or a statutory lien on a

 

 5  vehicle.

 

 6        Sec. 2a. As used in this act:

 

 7        (a) "Distressed vehicle" means that term as defined in section

 

 8  12a of the Michigan vehicle code, Act No. 300 of the Public Acts of

 

 9  1949, being section 257.12a of the Michigan Compiled Laws.

 

10        (b) "Facility" means a motor vehicle repair facility.

 

11        (c) "Late model vehicle" means that term as defined in section

 

12  24b of Act No. 300 of the Public Acts of 1949, being section

 

13  257.24b of the Michigan Compiled Laws.

 

14        (a) (d) "Major component part" means 1 any of the following

 

15  parts of a motor vehicle:

 

16        (i) The engine.

 

17        (ii) The transmission.

 

18        (iii) The right or left front fender.

 

19        (iv) The hood.

 

20        (v) A door allowing that allows entrance to or egress from the

 

21  passenger compartment of the vehicle.

 

22        (vi) The front or rear bumper bar.

 

23        (vii) The right or left rear quarter panel.

 

24        (viii) The deck lid, tailgate, or hatchback.

 

25        (ix) The trunk floor pan.

 

26        (x) The cargo box of a pickup.

 

27        (xi) The frame, or if the vehicle has a unitized body, the


 1  supporting structure or structures that serve as the frame.parts

 

 2  identified by the motor vehicle manufacturer as structural

 

 3  components.

 

 4        (xii) The cab of a truck.

 

 5        (xiii) The body of a passenger vehicle.

 

 6        (xiv) Airbags and seatbelts.

 

 7        (b) "Master mechanic" means any of the following:

 

 8        (i) A motor vehicle mechanic or specialty mechanic who is

 

 9  certified by the department under this act in all of the specific

 

10  repair or service categories applicable to automobiles or light

 

11  trucks described in section 10(5).

 

12        (ii) A motor vehicle mechanic or specialty mechanic who is

 

13  certified by the department under this act in all of the specific

 

14  repair categories applicable to heavy-duty trucks described in

 

15  section 10(6).

 

16        (iii) A master motorcycle mechanic who is certified by the

 

17  department to engage in motorcycle repair and is described in

 

18  section 10b(5).

 

19        (iv) A recreational trailer mechanic who is certified by the

 

20  department to engage in the installation, service, and repair of

 

21  recreational vehicle equipment and is described in section 10b(6).

 

22        (c) "Material fact" means a fact that is used by a person as a

 

23  premise on which a conclusion is based.

 

24        (d) "Mechanic trainee" means an individual who desires to

 

25  become a motor vehicle mechanic, a specialty mechanic, or a master

 

26  mechanic and receives a permit from the administrator under this

 

27  act.

 1        (e) "Minor repair services" means lubrication; oil changes;

 

 2  installing, changing, or otherwise servicing the antifreeze or

 

 3  other coolant; body repairing, except for unitized body structural

 

 4  repair; or the replacement, adjustment, repair, or servicing of any

 

 5  of the following parts and assemblies:

 

 6        (i) Air cleaner element.

 

 7        (ii) Accessory drive belt.

 

 8        (iii) Air pump hose.

 

 9        (iv) Twelve-volt battery.

 

10        (v) Ground cable for 12-volt battery.

 

11        (vi) Hold-down strap for 12-volt battery.

 

12        (vii) Positive cable for 12-volt battery.

 

13        (viii) Battery-to-starter relay cable for 12-volt battery.

 

14        (ix) Crankcase vent air cleaner.

 

15        (x) Crankcase vent air cleaner hose.

 

16        (xi) Engine oil filter.

 

17        (xii) Exhaust pipe, muffler, catalytic converter, or tail pipe

 

18  and associated attaching parts.

 

19        (xiii) Fuel filter.

 

20        (xiv) Fuel line flex hose or line.

 

21        (xv) Fuel tank, except for a tank that contains a fuel pump.

 

22        (xvi) Fuse.

 

23        (xvii) Heater hose.

 

24        (xviii) Horn.

 

25        (xix) Idler pulley, adjust only.

 

26        (xx) Ignition coil output wire.

 

27        (xxi) Lightbulb or headlamp.

 1        (xxii) Motor or transmission mount.

 

 2        (xxiii) Ornamental accessories.

 

 3        (xxiv) Positive crankcase ventilation control valve.

 

 4        (xxv) Radiator.

 

 5        (xxvi) Radiator hose, upper or lower.

 

 6        (xxvii) Radiator reserve tank.

 

 7        (xxviii) Rear spring, leaf or coil, except a MacPherson strut-

 

 8  type assembly.

 

 9        (xxix) Shock absorber that is not built in combination with

 

10  other parts of the suspension.

 

11        (xxx) Analog speedometer.

 

12        (xxxi) Vapor canister hose.

 

13        (xxxii) Wheel, except alignment.

 

14        (xxxiii) Windshield washer hose.

 

15        (xxxiv) Windshield washer tank.

 

16        (xxxv) Wiper blade.

 

17        (f) "Motor vehicle" means a vehicle that is self-propelled, a

 

18  vehicle that is propelled by electric power, a motorcycle, or a

 

19  trailer as those terms are defined in the Michigan vehicle code,

 

20  1949 PA 300, MCL 257.1 to 257.923. The term does not include the

 

21  dwelling or sleeping portions of a motor home, trailer, or any

 

22  recreational vehicle that has similar facilities that are not

 

23  directly connected with the drive mechanism of the vehicle or other

 

24  areas of repair that would require certification of motor vehicle

 

25  mechanics under this act or rules promulgated under this act.

 

26        (g) "Motor vehicle mechanic" means a technician or other

 

27  individual who, for compensation, repairs motor vehicles, including


 1  the reconditioning, replacement, adjustment, or alteration of the

 

 2  operating condition, of any component or subassembly of a motor

 

 3  vehicle.

 

 4        (h) "Person" means an individual, corporation, limited

 

 5  liability company, partnership, association, or any other legal

 

 6  entity. The term includes a motor vehicle repair facility.

 

 7        (i) "Recreational trailer" means a travel trailer, camper

 

 8  trailer, or other special purpose or utility trailer or semitrailer

 

 9  designed or intended to be drawn on the highway by an automobile or

 

10  light truck that has a gross towing vehicle weight of less than

 

11  10,000 pounds.

 

12        (j) "Repair" means the reconditioning, adjustment, alteration,

 

13  maintenance, or diagnosis of the operating condition of a motor

 

14  vehicle, with or without the replacement of any component or

 

15  subassembly of a motor vehicle, for compensation or under the terms

 

16  of a warranty.

 

17        (k) "Repair category" means a category of motor vehicle repair

 

18  work, listed in section 10b, that certification under this act is

 

19  required to perform.

 

20        (l) "Representation" means a statement made by a facility to a

 

21  customer in regard to some past, present, or future fact,

 

22  circumstance, or set of facts pertinent to a contract.

 

23        (m) (e) "Salvageable part" means a major component part of a

 

24  late model vehicle or a vehicle manufactured in the current model

 

25  year, if the part can be reused.

 

26        (n) "Specialty mechanic" means a motor vehicle mechanic who is

 

27  certified by the department for a specific repair or service


 1  category or categories described in section 10(1).

 

 2        (o) (f) "Vehicle body work" means the business or activity of

 

 3  repairing physical damage to a motor vehicle by repairing, mending,

 

 4  straightening, or replacing a major component part, except for the

 

 5  engine or transmission.

 

 6        (p) "Warranty" means a guarantee given by a motor vehicle

 

 7  repair facility, in writing or by implication, of the

 

 8  merchantability, of the integrity of the subject of a contract, or

 

 9  of the responsibility of the person that makes the warranty for the

 

10  replacement or repair of defective parts or services, or both,

 

11  assuring performance, product, or conditions as promised or

 

12  declared by the person that makes the warranty.

 

13        Sec. 3. Unless the means of doing or engaging in a motor

 

14  vehicle repair business including the operating of a motor vehicle

 

15  repair facility is adopted for the purposes of evading this act,

 

16  and except as otherwise provided in this act, this act shall does

 

17  not apply to gasoline service stations exclusively engaged in the

 

18  business of selling motor fuel and lubricants. A person or facility

 

19  providing minor services, including but not limited to: the

 

20  changing or installing of light bulbs, tires, lamp globes,

 

21  batteries, air filters, oil filters, windshield wiper blades, fan

 

22  or power assist belts or lubrication or oil changes and other minor

 

23  or ornamental accessories or However, a person, including a

 

24  gasoline service station, that provides minor repair services or

 

25  activities incidental to the business of selling motor fuel and

 

26  lubricants is hereby declared a motor vehicle repair facility and

 

27  is subject to this act, except that those employees performing only


 1  minor repairs need not be certified an employee of the person may

 

 2  perform minor repair services without a certification or permit

 

 3  from the department under this act.

 

 4        Sec. 7. A person subject to this act shall not engage or

 

 5  attempt to engage in a method, act, or practice which is unfair or

 

 6  deceptive.A motor vehicle repair facility that is subject to this

 

 7  act, or a person that is an owner or operator of a motor vehicle

 

 8  repair facility that is subject to this act, shall not, directly or

 

 9  through an agent or employee, do any of the following:

 

10        (a) Enter into a contract with a customer that uses a waiver

 

11  to circumvent or evade this act.

 

12        (b) Enter into a contract that takes advantage of a customer's

 

13  inability to reasonably protect his or her interests because of his

 

14  or her illiteracy or inability to understand the language of an

 

15  agreement, if the facility knows or reasonably should know of the

 

16  customer's illiteracy or inability to understand.

 

17        (c) Enter into a contract with a customer that has gross

 

18  discrepancies between the oral representations of the facility and

 

19  the written agreement covering the same transaction.

 

20        (d) Make, either written or orally, an untrue or misleading

 

21  statement of a material fact to a customer.

 

22        (e) Fail to reveal a material fact to a customer that the

 

23  customer could not reasonably know if that omission tends to

 

24  mislead or deceive the customer.

 

25        (f) Enter into a contract with a customer that attempts to

 

26  abrogate, disclaim, or disallow the legal rights, obligations,

 

27  or remedies of the customer.

 1        (g) Allow a customer to sign an acknowledgment, certificate,

 

 2  or other writing that affirms acceptance, delivery, compliance with

 

 3  a requirement of law, or other performance, if the facility knows

 

 4  or has reason to know that the statement is not true.

 

 5        (h) Set up contractual provisions with a customer, including

 

 6  the statement of repairs and waivers, that are not specific in

 

 7  language, clearly described, or reasonably legible.

 

 8        (i) Attempt to avoid or evade the law through a contract with

 

 9  a customer or any provision of a contract with a customer.

 

10        (j) If a contract with a customer is rescinded, canceled, or

 

11  otherwise terminated under the terms of the contract or under this

 

12  act, fail to promptly return any deposit, down payment, or other

 

13  payment to the person that is entitled to receive it.

 

14        (k) Allow a customer to sign a document in blank relating to

 

15  the repair of a motor vehicle.

 

16        (l) Fail to give a customer a copy of a document evidencing

 

17  the engagement of a facility at the time the document is executed

 

18  by the customer.

 

19        (m) When returning a repaired vehicle to a customer, fail to

 

20  give a written statement of repairs to the customer that discloses

 

21  all of the following:

 

22        (i) The repairs needed, as determined by the facility.

 

23        (ii) The repairs requested by the customer.

 

24        (iii) The repairs authorized by the customer.

 

25        (iv) The facility's estimate of repair costs.

 

26        (v) The actual costs of repairs.

 

27        (vi) The repairs or services performed, including a detailed


 1  identification of all parts that were replaced and a specification

 

 2  of which parts are new OEM, new, used, rebuilt, OEM surplus, or

 

 3  reconditioned.

 

 4        (vii) A certification that authorized repairs were completed

 

 5  properly or a detailed explanation of an inability to complete

 

 6  repairs properly. The owner of the facility, or an individual

 

 7  designated by the owner to represent the facility, shall sign the

 

 8  certification statement. The statement shall include the name of

 

 9  the mechanic who performed the diagnosis and the repair.

 

10        Sec. 7a. A motor vehicle repair facility that is subject to

 

11  this act, or a person that is an owner or operator of a motor

 

12  vehicle repair facility that is subject to this act, shall not,

 

13  directly or through an agent or employee, do any of the following:

 

14        (a) Charge for repairs that are in fact not performed.

 

15        (b) Perform repairs that are in fact not necessary, unless the

 

16  customer insists that the facility perform the repair and

 

17  disregards the facility's advice that the repair is unnecessary.

 

18        (c) Represent, directly or indirectly, that repairs are

 

19  necessary when in fact they are not.

 

20        (d) Perform and charge for repairs that are not specifically

 

21  authorized.

 

22        (e) Fail to perform promised repairs within the period of time

 

23  agreed, or within a reasonable time, unless circumstances beyond

 

24  the control of the facility prevent the timely performance of the

 

25  repairs and the facility did not have reason to know of those

 

26  circumstances at the time the contract was made.

 

27        (f) Represent, either directly or indirectly, that a


 1  replacement part used in the repair of a vehicle is new or of a

 

 2  particular manufacture when in fact it is used, rebuilt,

 

 3  reconditioned, deteriorated, or of a different manufacture, or

 

 4  otherwise fail to disclose in writing, before beginning a repair,

 

 5  the use of used, rebuilt, or reconditioned parts.

 

 6        (g) Subsequent to a diagnosis requested by a customer for

 

 7  which a charge is made, fail to disclose a diagnosed or suspected

 

 8  malfunction, the recommended remedy for the malfunction, and any

 

 9  test, analysis, or other procedure employed to determine the

 

10  malfunction.

 

11        Sec. 7b. A motor vehicle repair facility that is subject to

 

12  this act, or a person that is an owner or operator of a motor

 

13  vehicle repair facility that is subject to this act, shall not,

 

14  directly or through an agent or employee, do any of the following:

 

15        (a) Disclaim or limit the implied warranty of merchantability

 

16  or fitness for use, unless excluded or modified under section 2316

 

17  of the uniform commercial code, 1962 PA 174, MCL 440.2316.

 

18        (b) Fail to extend the period of a facility's own warranty for

 

19  repairs and services, if the customer was deprived of the use or

 

20  enjoyment of the subject of the warranty because of a failure on

 

21  the part of the facility to comply completely with the terms of the

 

22  warranty, for a period of time that is equal to or greater than the

 

23  period of the deprivation.

 

24        (c) Fail to honor a warranty on a new part by replacing it

 

25  with a used part or replacing it with a rebuilt or remanufactured

 

26  part that does not meet original equipment quality, standards, or

 

27  specifications, or that does not comply with the warranty repair


 1  requirements of the warrantor.

 

 2        (d) Fail to honor an express warranty.

 

 3        (e) Fail to disclose in written language, that is clear as to

 

 4  the nature or scope of the warranty, all material aspects and the

 

 5  intent of a warranty, including, but not limited to, what is

 

 6  warranted, the person that will honor the warranty, the duration of

 

 7  the warranty, the obligations, if any, of the person to which the

 

 8  warranty is extended, and any exceptions and exclusions from the

 

 9  terms of the written warranty agreement.

 

10        Sec. 7c. A motor vehicle repair facility that is subject to

 

11  this act, or a person that is an owner or operator of a motor

 

12  vehicle repair facility that is subject to this act, shall not,

 

13  directly or through an agent or employee, advertise or represent,

 

14  either directly or indirectly, any of the following:

 

15        (a) Reduced prices for products or services and not sell them

 

16  at the advertised price during the period of the offering.

 

17        (b) Products or services at a particular price during a

 

18  particular period and fail to extend the offer beyond that period

 

19  to any person that seeks but does not obtain the products or

 

20  services during the advertised period because the facility has

 

21  failed to prepare for the reasonably expected public demand.

 

22        (c) That a customer will receive products or services "free"

 

23  or "without charge", or using words of similar import, if there are

 

24  undisclosed conditions, terms, or limitations attached to the offer

 

25  of those products or services.

 

26        (d) Products or services while failing to reveal a material

 

27  fact that a customer could not reasonably know, if the omission of


 1  that fact tends to mislead or deceive the customer.

 

 2        (e) That a customer will receive a rebate, discount, or other

 

 3  benefit as an inducement for entering into a contract, if the

 

 4  benefit is contingent on the occurrence of an event after the

 

 5  transaction is completed.

 

 6        (f) That a facility has the ability to perform repair services

 

 7  using personnel who are qualified in specific repair specialties,

 

 8  including those specialties enumerated in sections 10 and 10b of

 

 9  this act, if in fact the facility does not employ mechanics who are

 

10  legally certified in those specialties.

 

11        (g) Products or services, if there is a material contingency,

 

12  condition, or limitation on the offer of those products or

 

13  services, unless the contingency, condition, or limitation is

 

14  stated contemporaneously with the offer in a manner clearly and

 

15  easily understood by the customer.

 

16        (h) Products or services in a language other than English,

 

17  unless the advertisement or representation includes any required

 

18  disclosures or limitations on the offer in the language principally

 

19  used in the advertisement or representation.

 

20        (i) That mechanics employed by a facility are "certified",

 

21  "licensed", or otherwise qualified if that representation tends to

 

22  give the impression that all mechanics employed by the facility are

 

23  certified or licensed if in fact they are not.

 

24        (j) That a customer's failure to act quickly or within a

 

25  certain period of time to procure products or services will result

 

26  in the loss of opportunity to procure them at a particular price,

 

27  if in fact it is untrue.

 1        (k) Credit availability, in a manner that creates a likelihood

 

 2  of confusion or misunderstanding of the terms or conditions of

 

 3  credit, or that credit availability or the terms of credit are

 

 4  "easy", or using words of similar import to describe credit

 

 5  availability or terms, if in fact that is untrue.

 

 6        (l) That products or services are sold under the terms of

 

 7  "satisfaction guaranteed or money back", or using words of similar

 

 8  import, if in fact the customer's declaration of dissatisfaction is

 

 9  not a sufficient basis for obtaining a refund of the purchase price

 

10  for those products or services.

 

11        (m) The necessity, desirability, or advantage to a prospective

 

12  customer of dealing with a facility by misrepresenting the

 

13  facility's alleged advantages of size.

 

14        (n) That a document that a customer signs is something other

 

15  than what it is.

 

16        (o) An aspect of a repair transaction in a manner that causes

 

17  a likelihood of confusion, or of misunderstanding, with respect to

 

18  the authority of a mechanic, salesperson, representative, or agent

 

19  to negotiate the final terms of the transaction.

 

20        (p) An aspect of a repair transaction in a manner that causes

 

21  a likelihood of confusion, or of misunderstanding, of the legal

 

22  rights, obligations, or remedies of a party to the transaction.

 

23        (q) That service on an offered product is available under a

 

24  warranty if in fact it is not available or there are undisclosed

 

25  limitations or conditions on the availability of that service.

 

26        (r) A free or low-cost inspection or diagnosis that requires

 

27  the removal or dismantling, or both, of a part or assembly and


 1  failing to disclose before the transaction a charge for replacement

 

 2  or reassembly if the customer declines to authorize a recommended

 

 3  repair.

 

 4        (s) A product or service at a reduced rate and, if the

 

 5  facility fails to provide it at the offered price during the period

 

 6  of the offering to a customer seeking it, failing to offer and

 

 7  provide the customer the opportunity to obtain the product or

 

 8  service at the same reduced rate within a reasonable period of time

 

 9  after the expiration of the original offer.

 

10        (t) Products or services, or the availability of products or

 

11  services, in a manner that involves the solicitation of waivers by

 

12  the facility.

 

13        (u) Products or services that fail to meet the reasonably

 

14  expected public demand for the duration of the advertised offering,

 

15  unless the advertisement has clearly expressed a specific

 

16  limitation on the quantity of the advertised products or services.

 

17        (v) The words "certification", "licensing", or "registration",

 

18  or the use of words of similar import, of a motor vehicle repair

 

19  facility or mechanic, by an organization, association, governmental

 

20  entity, or other program or authority other than the administrator,

 

21  without clearly and conspicuously disclosing the source of the

 

22  certification, licensing, or registration, and without adding the

 

23  disclaimer "not the Michigan department of state".

 

24        (w) The desirability or advantages of certification or

 

25  licensing by a federal, state, or local governmental agency, or

 

26  that a motor vehicle repair facility or mechanic is approved or

 

27  sanctioned by the administrator.

 1        Sec. 7d. A motor vehicle repair facility that is subject to

 

 2  this act, or a person that is an owner or operator of a motor

 

 3  vehicle repair facility that is subject to this act, shall not,

 

 4  directly or through an agent or employee, do any of the following:

 

 5        (a) Assert, claim, or impose a mechanic's or similar type lien

 

 6  if the facility has violated this act or rules promulgated under

 

 7  this act with respect to the transaction on which the lien is

 

 8  based.

 

 9        (b) Seek the repossession of a motor vehicle if the facility

 

10  has violated this act or rules promulgated under this act with

 

11  respect to the transaction on which the repossession is based.

 

12        (c) Seek to assert or enforce a lien by refusing to return a

 

13  vehicle if the facility has violated this act or rules promulgated

 

14  under this act with respect to the transaction on which the refusal

 

15  is based.

 

16        (d) Fail to return a customer's vehicle if there is a dispute

 

17  and the customer has paid the amount of the written estimate and

 

18  any amount in excess of that amount that was agreed to either

 

19  orally or in writing by the customer.

 

20        Sec. 7e. A motor vehicle repair facility that is subject to

 

21  this act, or a person that is an owner or operator of a motor

 

22  vehicle repair facility that is subject to this act, shall not,

 

23  directly or through an agent or employee, do any of the following:

 

24        (a) Unless legally waived by the customer, fail to give the

 

25  customer a written estimate before beginning work on a motor

 

26  vehicle.

 

27        (b) Charge for work done or parts supplied in excess of the


 1  estimated price without the knowing consent, orally or in writing,

 

 2  of the customer.

 

 3        (c) Fail to give a customer an estimate for the cost, if any,

 

 4  of reassembly, disassembly, or diagnosis.

 

 5        (d) Fail to inform a customer, at a time before the customer

 

 6  executes a document or engages the facility for the work, by the

 

 7  use of a notice required under section 33, of his or her right to

 

 8  receive or inspect replaced parts for which he or she will be

 

 9  charged in the repair of his or her motor vehicle.

 

10        (e) Fail to retain a customer waiver with the records retained

 

11  by the facility concerning the transaction.

 

12        (f) Charge a customer storage charges if there is a dispute

 

13  concerning repair charges. If a delay in repairs is caused by a

 

14  lack of parts, a facility may charge for storage after informing

 

15  the customer of the approximate length of the anticipated delay and

 

16  of the daily storage charge rate and obtaining the customer's

 

17  consent to the delay and the storage charges.

 

18        (g) Fail to comply with the truth in lending act, 15 USC 1601

 

19  to 1667f, and the retail installment sales act, 1966 PA 224, MCL

 

20  445.851 to 445.873, if the customer finances repairs through the

 

21  facility.

 

22        (h) Fail in practice to comply with advertised or stated

 

23  payment policies.

 

24        (i) Conspire with another to fix prices.

 

25        (j) Conspire with another to allocate the market between them.

 

26        (k) Fail to notify a customer of an exchange agreement and

 

27  charges for exchange parts if the customer wishes to have those


 1  parts returned.

 

 2        (l) Fail to disclose, on the customer's request, the method

 

 3  used by a facility to compute labor charges.

 

 4        Sec. 7f. A motor vehicle repair facility that is subject to

 

 5  this act, or a person that is an owner or operator of a motor

 

 6  vehicle repair facility that is subject to this act, shall not,

 

 7  directly or through an agent or employee, do any of the following:

 

 8        (a) Improperly utilize waivers in a manner that suggests or

 

 9  implies, directly or indirectly, orally or by action, that signing

 

10  a waiver will improve or expedite service or repairs or will reduce

 

11  the price.

 

12        (b) Exaggerate the seriousness of a malfunction to induce a

 

13  customer to agree to a repair.

 

14        (c) Suggest or imply, directly or indirectly, orally or by

 

15  action, that service will be improved or expedited or that the

 

16  price will be reduced if the customer agrees that the facility is

 

17  not required to return for inspection any parts that the facility

 

18  replaced.

 

19        (d) Misrepresent that because of some defect in the customer's

 

20  motor vehicle, the health, safety, and lives of the customer or his

 

21  or her family are in danger if parts or repair services are not

 

22  purchased, if in fact the defect does not exist or the installation

 

23  of the parts or the performance of the services would not remove

 

24  the danger.

 

25        Sec. 7g. If a motor vehicle repair facility that is subject to

 

26  this act replaces a major component part described in section

 

27  2a(a)(iii) to (xiv) during the term of the vehicle manufacturer's


House Bill No. 4344 as amended May 31, 2016

 1  original warranty, or during the first 5 years of the vehicle

 

 2  manufacturer's original warranty, whichever is less, the motor

 

 3  vehicle repair facility shall replace the major component part, and

 

 4  a person that is an owner or operator of the motor vehicle repair

 

 5  facility shall ensure that the major component part is replaced,

 

 6  with 1 of the following:

 

 7        (a) A new original equipment manufacturer part.

 

 8        (b) A used or recycled original equipment manufacturer part.

 

 9        (c) A part that meets any applicable federal motor vehicle

 

10  safety standards established under 49 CFR 571, and meets the

 

11  standards for parts recognized as OEM comparable quality as

 

12  verified by the Certified Automotive Parts Association, NSF

 

13  International, or another nationally recognized automotive parts

 

14  testing agency.

           [(d) A part that does not meet subdivision (a), (b), or (c), if

    the facility is directed by the owner of the motor vehicle in writing to

    install that part.]

15        Sec. 9. The administrator shall do all of the following:

 

16        (a) Certify master and specialty mechanics and issue permits

 

17  to mechanic trainees who are subject to this act.

 

18        (b) Register motor vehicle repair facilities that are subject

 

19  to this act.

 

20        (c) Keep a complete register of motor vehicle repair

 

21  facilities, which shall be open to and make that register available

 

22  for public inspection at the office of the secretary of state.

 

23        (d) Keep an accurate listing by name and by certificate number

 

24  of each specialty and master mechanic who is certified by the

 

25  administrator at the office of the secretary of state.

 

26        (e) Engage in a public information program to inform the

 

27  public of their rights and remedies under this act.

 1        (f) Inform registered motor vehicle repair facilities at least

 

 2  annually of the rules promulgated pursuant to under this act, of

 

 3  representative disciplinary hearings, orders, or judgments issued

 

 4  or obtained by the administrator, and suspensions or revocations of

 

 5  registrations or licenses. A motor vehicle repair facility shall

 

 6  inform the mechanics in its employ of these actions.

 

 7        (g) Establish procedures for receiving complaints relating to

 

 8  alleged violations of this act or rules promulgated pursuant to

 

 9  under this act.

 

10        (h) Establish and collect fees for certification examinations

 

11  administered by the administrator.

 

12        (i) Promulgate any rules pursuant to Act No. 306 of the Public

 

13  Acts of 1969, as amended, being sections 24.201 to 24.315 of the

 

14  Michigan Compiled Laws.that are necessary to implement this act

 

15  under the administrative procedures act of 1969, 1969 PA 306, MCL

 

16  24.201 to 24.328.

 

17        The rules shall include but not be limited to:

 

18        (i) Definitions of unfair and deceptive practices.

 

19        (ii) Definitions of minor repair services.

 

20        (iii) Criteria for determining the competency of specialty and

 

21  master mechanics, as a prerequisite to continued certification

 

22  under this act.

 

23        (iv) Definition of repair categories for the certification of

 

24  specialty and master mechanics.

 

25        (v) Other rules as are necessary to implement this act.

 

26        (j) Issue declaratory rulings to implement this act. All of

 

27  the following apply to a declaratory ruling under this subdivision:

 1        (i) The administrator may issue a declaratory ruling

 

 2  concerning the applicability of this act or rules promulgated under

 

 3  this act to an actual statement of facts if the administrator

 

 4  receives a request for a declaratory ruling from an interested

 

 5  person and the interested person submits a clear and concise

 

 6  statement of facts to the administrator. The interested person may

 

 7  submit to the administrator a brief or other reference to legal

 

 8  authorities on which the interested person relies concerning the

 

 9  applicability of this act or rules promulgated under this act to

 

10  the statement of facts.

 

11        (ii) If he or she decides to issue a declaratory ruling, the

 

12  administrator shall provide the interested person that requested

 

13  the ruling a statement that he or she will issue a declaratory

 

14  ruling and the date by which the administrator will issue the

 

15  ruling.

 

16        (iii) A declaratory ruling shall include the actual statement

 

17  of facts provided by the interested person that requested the

 

18  ruling, the legal authority on which the administrator relies for

 

19  his or her ruling, if any, and the ruling of the administrator.

 

20        (iv) After it is issued, a declaratory ruling is binding on

 

21  the administrator and he or she may not retroactively change the

 

22  ruling. However, this subdivision does not prohibit the

 

23  administrator from prospectively changing a declaratory ruling.

 

24        Sec. 10. (1) Subject to subsection (3) and section 10b(3) and

 

25  (4), an individual may become certified as a specialty mechanic if

 

26  he or she passes an examination, developed by the administrator or

 

27  developed by a private entity and adopted by the administrator,


 1  that the administrator determines is an adequate test of an

 

 2  individual's ability to perform certain types of motor vehicle

 

 3  repair. The repair or service categories for which certification is

 

 4  required include the following and any others specified by the

 

 5  administrator by rule:in 1 or more repair categories described in

 

 6  section 10b(1) or (2) if that individual takes 1 or more

 

 7  examinations, developed or approved by the administrator, and

 

 8  receives scores, as determined by the administrator, that indicate

 

 9  competency to perform motor vehicle repairs in the repair category

 

10  or categories.

 

11        (a) Engine repair.

 

12        (b) Automatic transmission repair.

 

13        (c) Manual transmission and rear axle repair.

 

14        (d) Front end repair.

 

15        (e) Repair of brakes.

 

16        (f) Electrical systems repair.

 

17        (g) Heating and air conditioning repair.

 

18        (h) Engine tune-up.

 

19        (i) Pre-1973 motor vehicle repair.

 

20        (j) BAIID service.

 

21        (2) An individual may apply for a specialty mechanic's

 

22  certificate in any or all repair categories but he or she is only

 

23  required to pay only 1 certification fee if he or she makes the

 

24  applications the individual applies for more than 1 category at 1

 

25  time.

 

26        (3) On application, the department shall issue an initial

 

27  specialty mechanic's certificate in BAIID service, without


 1  examination, to an individual who holds a valid specialty

 

 2  mechanic's certificate in electrical systems repair on the

 

 3  effective date of the amendatory act that added this

 

 4  subsection.June 5, 2016.

 

 5        (4) Within 120 days after the effective date of the amendatory

 

 6  act that added section 10a, By October 4, 2016, the administrator

 

 7  shall develop or adopt an examination for specialty mechanic

 

 8  certification in the repair or service category described in

 

 9  subsection (1)(j) section 10b(1)(l) for an individual who is

 

10  engaged, for compensation, in BAIID service.

 

11        (5) An individual may apply for and receive a certificate as a

 

12  master mechanic's certificate mechanic for automobiles or light

 

13  trucks if he or she is qualified as a specialty mechanic in all of

 

14  the repair categories of motor vehicle repair described in

 

15  subsection (1), section 10b(1), except that qualification in a

 

16  specialty category described in subsection (1)(i) or (j) section

 

17  10b(1)(k) or (l) is not necessary for a master mechanic's

 

18  certificate.

 

19        (6) An individual may apply for and receive a certificate as a

 

20  master mechanic for heavy-duty trucks if that individual is

 

21  qualified as a specialty mechanic in all repair categories

 

22  described in section 10b(2), except that certification in the

 

23  repair category described in section 10b(2)(h) is not necessary for

 

24  a master mechanic's certificate described in this subsection.

 

25        Sec. 10b. (1) The administrator may issue a certification to

 

26  perform repair work as a specialty or master mechanic for

 

27  automobiles and light trucks in 1 or more of the following repair


 1  categories:

 

 2        (a) Engine repair.

 

 3        (b) Automatic transmission.

 

 4        (c) Manual transmission, front and rear drive axle.

 

 5        (d) Front end, suspension, and steering systems.

 

 6        (e) Brakes and braking systems.

 

 7        (f) Electrical systems.

 

 8        (g) Heating and air-conditioning.

 

 9        (h) Engine tune-up and performance.

 

10        (i) Collision-related mechanical repair.

 

11        (j) Unitized body structural repair.

 

12        (k) Pre-1973 automobile or light truck repair. As used in this

 

13  subdivision, "pre-1973 automobile or light truck repair" means the

 

14  repair of an automobile or light truck manufactured before 1973 or

 

15  the reconditioning, replacement, adjustment, or alteration of the

 

16  operating condition of any component or subassembly of an

 

17  automobile or light truck manufactured before 1973.

 

18        (l) BAIID service.

 

19        (2) The administrator may issue a certification to perform

 

20  repair work as a specialty or master mechanic for heavy-duty trucks

 

21  in 1 or more of the following repair categories:

 

22        (a) Engine repair, gasoline.

 

23        (b) Engine repair, diesel.

 

24        (c) Drivetrains.

 

25        (d) Brakes and braking systems.

 

26        (e) Suspension and steering systems.

 

27        (f) Electrical systems.

 1        (g) Collision-related mechanical repair.

 

 2        (h) Pre-1973 heavy-duty truck repair. As used in this

 

 3  subdivision, "pre-1973 heavy-duty truck repair" means the repair of

 

 4  a heavy-duty truck manufactured before 1973 or the reconditioning,

 

 5  replacement, adjustment, or alteration of the operating condition

 

 6  of any component or subassembly of a heavy-duty truck manufactured

 

 7  before 1973.

 

 8        (3) An individual who is applying for certification as a

 

 9  specialty automobile or light truck mechanic is eligible for that

 

10  certification if he or she passes an examination in the repair

 

11  category that relates to that specialty. An individual who is

 

12  applying for certification as a master automobile or light truck

 

13  mechanic is eligible for that certification if he or she passes the

 

14  examinations in all repair categories listed in subsection (1)(a)

 

15  to (h).

 

16        (4) An individual who is applying for certification as a

 

17  specialty heavy-duty truck mechanic is eligible for that

 

18  certification if he or she passes an examination in the repair

 

19  category that relates to that specialty. An individual who is

 

20  applying for certification as a master heavy-duty truck mechanic is

 

21  eligible for that certification if he or she passes the

 

22  examinations in all repair categories listed in subsection (2)(a)

 

23  to (f).

 

24        (5) An individual who is applying for certification as a

 

25  master motorcycle mechanic is eligible for that certification if he

 

26  or she passes an examination pertaining to all mechanical aspects

 

27  of motorcycle repair.

 1        (6) An individual who is applying for certification as a

 

 2  recreational trailer mechanic is eligible for that certification if

 

 3  he or she passes an examination pertaining to all mechanical

 

 4  aspects of the installation, service, and repair of recreational

 

 5  trailer equipment. As used in this subsection, "recreational

 

 6  trailer equipment" includes recreational trailer brakes,

 

 7  suspension, wheels, or axles; adaptations and alterations made to

 

 8  towing vehicles; and other items of equipment on a recreational

 

 9  trailer required under sections 683 to 711 of the Michigan vehicle

 

10  code, 1949 PA 300, MCL 257.683 to 257.711.

 

11        Sec. 11. (1) Before a person offers to engage in or engages An

 

12  individual shall not engage or offer to engage in employment as a

 

13  specialty or master mechanic , that person shall apply for and

 

14  receive if he or she has not applied for and received a certificate

 

15  for that employment from the department. Application An applicant

 

16  for a specialty or master mechanic's certificate shall be made

 

17  submit to the administrator, on a form provided by the department,

 

18  and shall include:all of the following information and the results

 

19  of the required examinations:

 

20        (a) The name and home address of the applicant.

 

21        (b) The repair category or categories for which the applicant

 

22  is applying. and the results of the required examinations.

 

23        (c) The number of years the applicant has worked as a motor

 

24  vehicle mechanic for compensation and the education or training he

 

25  has had to prepare him for work as a motor vehicle mechanic,

 

26  specialty mechanic, or master mechanic.

 

27        (d) The states or jurisdictions in which the applicant is


 1  licensed or certified to work as a motor vehicle mechanic,

 

 2  specialty mechanic, or master mechanic.

 

 3        (e) A copy of an irrevocable appointment of the secretary of

 

 4  state as the applicant's agent for service of process.

 

 5        (f) Other relevant information as required by the

 

 6  administrator. shall require.

 

 7        (2) The term of a master mechanic's certificate is 1 year. An

 

 8  individual may renew a master mechanic's certificate by providing

 

 9  all of the information described in subsection (1)(a) to (f), on a

 

10  form provided by the administrator, and paying the renewal fee

 

11  described in section 30.

 

12        (3) The term of a specialty certificate is 1 year. The

 

13  administrator may only renew a specialty certificate if the

 

14  individual who is applying for renewal provides all of the

 

15  information described in subsection (1)(a) to (f), on a form

 

16  provided by the administrator, pays the renewal fee described in

 

17  section 30, and, if applicable, meets 1 of the following:

 

18        (a) If he or she is seeking to renew a certification as a

 

19  mechanic in the area of automobile and light truck engine tune-up

 

20  and performance, in the 1998 calendar year or in any fifth calendar

 

21  year after 1998, does 1 of the following:

 

22        (i) Takes and passes a test given or approved by the

 

23  administrator.

 

24        (ii) Presents proof that he or she has successfully completed

 

25  an acceptable course of training in automobile and light truck

 

26  engine tune-up and performance provided by an approved educational

 

27  institution, motor vehicle manufacturer, or distributor.

 1        (iii) Presents a valid, current certification in automobile

 

 2  and light truck engine tune-up and performance, or a comparable

 

 3  category, from the National Institute for Automotive Service

 

 4  Excellence or another mechanic certification organization approved

 

 5  by the administrator.

 

 6        (b) If he or she is seeking to renew a certification as a

 

 7  mechanic in the area of automobile and light truck electrical

 

 8  systems, in the 1999 calendar year or in any fifth calendar year

 

 9  after 1999, does 1 of the following:

 

10        (i) Takes and passes a test given or approved by the

 

11  administrator.

 

12        (ii) Presents proof that he or she has successfully completed

 

13  an acceptable course of training in automobile and light truck

 

14  engine electrical systems provided by an approved educational

 

15  institution, motor vehicle manufacturer, or distributor.

 

16        (iii) Presents a valid, current certification in automobile

 

17  and light truck engine electrical systems, or a comparable

 

18  category, from the National Institute for Automotive Service

 

19  Excellence or another mechanic certification organization approved

 

20  by the administrator.

 

21        (c) If he or she is seeking to renew a certification as a

 

22  mechanic in the area of automobile and light truck brakes and

 

23  braking systems, in the 2000 calendar year or in any fifth calendar

 

24  year after 2000, does 1 of the following:

 

25        (i) Takes and passes a test given or approved by the

 

26  administrator.

 

27        (ii) Presents proof that he or she has successfully completed


 1  an acceptable course of training in automobile and light truck

 

 2  engine brakes and braking systems provided by an approved

 

 3  educational institution, motor vehicle manufacturer, or

 

 4  distributor.

 

 5        (iii) Presents a valid, current certification in automobile

 

 6  and light truck brakes and braking systems, or a comparable

 

 7  category, from the National Institute for Automotive Service

 

 8  Excellence or another mechanic certification organization approved

 

 9  by the administrator.

 

10        Sec. 12. An applicant shall be required to have passed an

 

11  examination which is designed to test the competency to correctly

 

12  diagnose and repair motor vehicles in the specific category for

 

13  which the applicant is applying. The examination shall be written

 

14  or oral or practical.All of the following apply to a certification

 

15  examination under this act:

 

16        (a) An examination shall be written, except that the

 

17  administrator may allow an individual to take an oral or practical

 

18  examination if the administrator determines that the individual

 

19  meets 1 of the following:

 

20        (i) He or she has special language problems that preclude the

 

21  possibility of passing a standard English language examination.

 

22        (ii) He or she was unsuccessful on the written examination.

 

23        (b) The administrator shall review examinations that are being

 

24  given by private or public agencies, including the department of

 

25  education. If the administrator approves an agency for the purposes

 

26  of administering examinations, the prospective an applicant may

 

27  take the an examination administered by that agency, and the


 1  testing agency shall forward the results to the administrator for

 

 2  review and verification, or the prospective applicant may take such

 

 3  the examination as may be developed and given by the administrator,

 

 4  if any.

 

 5        (c) An examination shall be given at places and times

 

 6  determined by the administrator.

 

 7        (d) The results of an examination are not final until approved

 

 8  by the administrator. The administrator shall forward the results

 

 9  of an examination to the applicant or to the applicant's authorized

 

10  representative.

 

11        Sec. 13. (1) If a person an individual is unable to obtain a

 

12  certificate as a specialty or master mechanic as provided in under

 

13  this act, and that person individual desires to become a specialty

 

14  or master mechanic, he or she may make application apply for a

 

15  mechanic trainee permit on the a form prescribed or approved by the

 

16  administrator. The administrator shall issue or approve a mechanic

 

17  trainee permit to an applicant who qualifies under the rules

 

18  promulgated for that purpose. A person

 

19        (2) If an individual is unable to renew a specialty

 

20  certification as a mechanic in the area of automobile and light

 

21  truck engine tune-up and performance, automobile and light truck

 

22  electrical systems, or automobile and light truck brakes and

 

23  braking systems because he or she does not meet the requirements of

 

24  section 11(3)(a), (b), or (c), he or she may apply for a mechanic

 

25  trainee permit, on a form prescribed or approved by the

 

26  administrator, if he or she meets all legal requirements for the

 

27  permit and was not issued a mechanic trainee permit by the


 1  administrator in the 3-year period before the administrator

 

 2  receives his or her application for the mechanic trainee permit

 

 3  under this subsection.

 

 4        (3) All of the following apply to a mechanic trainee described

 

 5  in this section:

 

 6        (a) An individual who qualifies as a mechanic trainee may

 

 7  retain that status for a period of not more than 2 years.

 

 8        (b) A mechanic trainee who is employed by a motor vehicle

 

 9  repair facility shall be is required to work under the direct

 

10  supervision of a specialty or master mechanic during the full time

 

11  of his or her employment.

 

12        (c) The administrator shall by rule establish and operate a

 

13  mechanic trainee training program designed to provide the training

 

14  necessary to become certified under this act. Instead of

 

15  establishing and operating the program, the administrator may

 

16  appoint schools, academies, or other similar establishments select

 

17  1 or more approved educational institutions to engage in mechanic

 

18  trainee training. if those establishments, schools, or academies

 

19  meet the criteria established by the administrator, after

 

20  consultation with the department of education and the United States

 

21  department of labor, bureau of apprenticeship and training. The

 

22  establishments may be designated by the administrator to engage in

 

23  a continuing education and training program for specialty and

 

24  master mechanics.

 

25        Sec. 13a. (1) The administrator shall evaluate and may approve

 

26  a school, academy, or other similar establishment that intends to

 

27  provide training to mechanics or mechanic trainees under this act.

 1        (2) All of the following apply to the approval of a school,

 

 2  academy, or similar establishment by the administrator under

 

 3  subsection (1):

 

 4        (a) An establishment seeking approval shall submit an

 

 5  application for approval to the administrator. The administrator

 

 6  shall determine the form and content of the application. The

 

 7  application shall include supporting materials required by the

 

 8  administrator.

 

 9        (b) The administrator shall review an application and

 

10  supporting materials submitted under subdivision (a) and shall

 

11  approve, deny approval of, or withdraw approval from the training

 

12  program offered to mechanics and mechanic trainees by the

 

13  establishment.

 

14        (c) In evaluating an establishment for approval, the

 

15  administrator shall consider all of the following factors:

 

16        (i) Accreditation or lack of accreditation by a recognized

 

17  accreditation agency.

 

18        (ii) Quantity and quality of classroom training provided.

 

19        (iii) Course objectives.

 

20        (iv) Number, quality, and age of tools, equipment, and

 

21  materials made available to students.

 

22        (v) Percentage of class time spent in hands-on training.

 

23        (vi) Qualifications of instructors and other staff.

 

24        (vii) Quality, quantity, and accessibility of records

 

25  maintained by the establishment.

 

26        (viii) Class size and location.

 

27        (ix) Quality of testing administered.

 1        (x) Other related factors the administrator considers

 

 2  relevant.

 

 3        (3) The administrator may contract with approved educational

 

 4  institutions to provide training or testing required under this

 

 5  act.

 

 6        Sec. 13b. (1) A certified specialty or master mechanic shall

 

 7  display, in a conspicuous location in the place of business where

 

 8  he or she is employed or engaged to perform repairs, a current and

 

 9  valid certificate issued by the administrator.

 

10        (2) If a certified mechanic works on, inspects and approves,

 

11  or supervises a repair, he or she shall affix his or her name and

 

12  certification number, as assigned by the administrator, to the

 

13  written statement of repairs given the customer under section 34.

 

14        (3) A certified specialty or master mechanic or mechanic

 

15  trainee shall not depart from, or disregard in any material

 

16  respect, accepted motor vehicle repair industry standards.

 

17  Compliance with published vehicle manufacturer, parts manufacturer,

 

18  equipment manufacturer, or recognized aftermarket repair manual

 

19  specifications creates a presumption that the mechanic or mechanic

 

20  trainee has followed accepted motor vehicle repair industry

 

21  standards.

 

22        (4) If the administrator, after notice and a hearing,

 

23  determines that a specialty or master mechanic or mechanic trainee

 

24  has violated subsection (3), the administrator may, under section

 

25  21, require that the specialty or master mechanic or mechanic

 

26  trainee do both of the following:

 

27        (a) Successfully complete a designated training course or


 1  program as a prerequisite to continued certification.

 

 2        (b) Only perform specific motor vehicle repairs or repair

 

 3  procedures identified by the administrator until the training

 

 4  course or program described in subdivision (a) is completed.

 

 5        Sec. 14. A The owner of a motor vehicle repair facility shall

 

 6  be registered by the owner register the facility by providing all

 

 7  of the following information to the administrator, on a

 

 8  registration form provided by the administrator, which shall

 

 9  disclose the following information:accompanied by a registration

 

10  fee in an amount determined under section 30:

 

11        (a) The name, address, and form of ownership of the facility,

 

12  and for if the owner is a corporation, the date and place of

 

13  incorporation.

 

14        (b) The name and address of each of its the owner's resident

 

15  agents, officers, directors, and partners in the this state, as

 

16  applicable.

 

17        (c) The principal occupation or business for the past 5 years

 

18  of every officer, director, and partner, and each owner of 10% or

 

19  more of the facility, and any person occupying a similar status or

 

20  performing similar functions.all of the following, as applicable:

 

21        (i) Each person that owns 10% or more of the facility.

 

22        (ii) For each owner described in subparagraph (i), every

 

23  officer and director if the owner is a corporation; every partner

 

24  if the owner is a partnership; and any other person that occupies a

 

25  similar status or performs similar functions.

 

26        (d) A description of the repair facility to be registered as

 

27  specified by rule.that includes all of the following:

 1        (i) The type of service business the facility operates.

 

 2        (ii) The type of repairs the facility performs.

 

 3        (iii) The type of vehicles the facility services.

 

 4        (iv) The number of mechanics the facility employs who perform

 

 5  repairs.

 

 6        (v) The range of gross revenue received by the facility from

 

 7  performing repairs, including revenue from parts and goods sold in

 

 8  conjunction with repairs, for the most recent federal income tax

 

 9  year.

 

10        (vi) Measured in square feet, the size of that part of the

 

11  facility utilized for performing repairs.

 

12        (e) An irrevocable appointment of the secretary of state as

 

13  the agent for the facility for service of process.

 

14        (f) A copy of the documents, instruments, forms, contracts, or

 

15  other papers known to be each instrument, form, contract, or other

 

16  document used by the applicant in dealing with the public in the

 

17  repair of motor vehicles, as specified by rule.including, but not

 

18  limited to, all of the following:

 

19        (i) Any document on which the facility routinely requires the

 

20  customer's signature.

 

21        (ii) Any document used by the facility in connection with

 

22  providing estimates, diagnoses, or repairs.

 

23        (iii) Any invoices, warranties, or waivers.

 

24        (iv) Any other document used by the facility to comply with

 

25  this act or rules promulgated under this act.

 

26        (g) Other Any other relevant information as required by the

 

27  administrator. shall require.

 1        Sec. 15. (1) A motor vehicle repair facility registration

 

 2  under this act takes effect on the date it is approved by the

 

 3  administrator and expires 1 year after that date. The owner of a

 

 4  motor vehicle repair facility shall renew its registration annually

 

 5  and shall submit an application for renewal of the registration,

 

 6  accompanied by a registration fee in an amount determined under

 

 7  section 30, with the administrator at least 30 days before the

 

 8  expiration of its then-current registration.

 

 9        (2) A motor vehicle repair facility may continue to operate

 

10  after the expiration date of its then-current registration, pending

 

11  approval of the renewal application by the administrator, if the

 

12  renewal application and renewal fee are received by the

 

13  administrator on or before the expiration date. If a renewal

 

14  application and renewal fee are filed after the expiration date,

 

15  the facility may operate from the day on which the application and

 

16  appropriate fee are received by the administrator, pending approval

 

17  of the renewal application. The administrator shall charge a fee of

 

18  1-1/2 times the normal registration fee if the renewal application

 

19  is received by the administrator after the expiration date.

 

20        (3) A business maintaining person that owns more than 1 motor

 

21  vehicle repair facility shall file a single registration form for

 

22  all of those facilities annually, which that along with the other

 

23  information required by under this act, clearly indicates the

 

24  location of and the individual in charge of each facility, . Fees

 

25  shall be paid separately for each location.and shall pay a separate

 

26  registration fee for each of those facilities.

 

27        Sec. 16. (1) If there is a change in ownership of a motor


 1  vehicle repair facility, a new registration and payment of a new

 

 2  registration fee is required and the facility shall not operate

 

 3  until its registration application is approved by the administrator

 

 4  and the fee is paid. If a name or address of the motor vehicle

 

 5  repair facility changes, not involving a change of ownership, and

 

 6  there is not a change of ownership, the facility shall notify the

 

 7  administrator in writing of the change . Appropriate and shall make

 

 8  the appropriate changes should be made on the next renewal

 

 9  registration when due.

 

10        (2) If the owner of a motor vehicle repair facility is a

 

11  corporation, and 10% or more of the stock of the corporation is

 

12  sold or transferred, the owner shall notify the administrator of

 

13  that change within 30 days of the sale or transfer.

 

14        (3) As used in this section, "change of ownership" means a

 

15  sale of all or part of a facility to a new owner. The term includes

 

16  a sale or transfer of a partnership interest in the owner of a

 

17  facility if the owner is a partnership. The term does not include

 

18  the sale or transfer of stock in the owner of a facility if the

 

19  owner is a corporation.

 

20        Sec. 17. (1) The owner of a facility that is registered

 

21  facility or a facility or is required to be registered register

 

22  under this act shall be ensure that the facility is open to

 

23  inspection by the administrator and other law enforcement officials

 

24  during reasonable business hours. During reasonable business hours,

 

25  the administrator and other law enforcement officials may make

 

26  periodic unannounced inspections of the premises, parts records,

 

27  and parts inventories of facilities.a facility.

    House Bill No. 4344 as amended May 17, 2016

 

 1        (2) A person who hinders, obstructs, or otherwise prevents an

 

 2  inspection is in violation of this act.shall not hinder, obstruct,

 

 3  or otherwise prevent an inspection under this section or section 18

 

 4  or 18a.

 

 5        (3) As used in this section, "reasonable business hours"

 

 6  includes any posted or advertised business hours of a facility.

 

 7        Sec. 18. (1) A The owner of a motor vehicle repair facility

 

 8  shall maintain reasonable business records as are required by rules

 

 9  promulgated to carry out this act. The records shall be for the

 

10  facility and ensure that those records are open for reasonable

 

11  inspection by the administrator or other law enforcement officials.

 

12  and shall be maintained by the facility for not less than 5

 

13  years.As used in this subsection, "reasonable business records"

 

14  includes those documents and records described in subsection (2)(a)

 

15  to (c).

 

16        (2) The owner of a motor vehicle repair facility shall retain

 

17  the records of the facility for the following time periods:

 

18        (a) The owner shall retain copies of each instrument, form,

 

19  contract, or other document used in connection with a repair

 

20  transaction, including, but not limited to, all of the following

 

21  for at least <<3 years>> after completion of the repair transaction:

 

22        (i) Any document on which the facility required the customer's

 

23  signature.

 

24        (ii) Any document used by the facility in connection with

 

25  providing an estimate, diagnosis, or repair.

 

26        (iii) Any invoice, warranty, or waiver.

 

27        (iv) Any other document used by the facility to record or


    House Bill No. 4344 as amended May 17, 2016

 

 1  convey the terms of the transaction.

 

 2        (v) Any other document required under this act or rules

 

 3  promulgated under this act in connection with a repair transaction.

 

 4        (b) If a facility is advised by the administrator that he or

 

 5  she has received a complaint about a repair transaction performed

 

 6  by the facility, and the facility is under investigation by the

 

 7  administrator, the owner shall retain records relating to the

 

 8  transaction or otherwise relevant to the complaint until the date

 

 9  the administrator advises the facility in writing that the

 

10  complaint is closed, or for <<3 years>> after the completion of the

 

11  repair transaction, whichever is later.

 

12        (c) If a repair transaction involves the assumption by the

 

13  facility of an obligation extending beyond <<3 years>>, the owner shall

 

14  retain records or documents relating to that obligation for at

 

15  least the term of the obligation.

 

16        (d) For any other document or record than those described in

 

17  subdivision (a), (b), or (c), the owner shall retain that document

 

18  or record for at least 3 years.

 

19        (3) (2) A facility that engages in vehicle body work shall

 

20  maintain records in a form prescribed by the administrator. The

 

21  records shall contain the date of purchase or acquisition of each

 

22  distressed vehicle, a description of the vehicle, and the name and

 

23  address of the person from whom which the vehicle was acquired. If

 

24  the vehicle is sold, the record shall contain the date of sale and

 

25  the name and address of the purchaser. The record shall indicate

 

26  whether a certificate of title or salvage certificate of title was

 

27  obtained by the facility for the vehicle. In the case of If the


 1  vehicle is a late model vehicle, the facility shall maintain a

 

 2  record of the purchase or sale of each major component part

 

 3  purchased or acquired shall be maintained by the facility for the

 

 4  vehicle. The record shall contain the date of purchase or

 

 5  acquisition of the part, a description of the part, the

 

 6  identification number assigned to the part, and the name and

 

 7  address of the person to or from whom which the part was purchased,

 

 8  acquired, or sold. The

 

 9        (4) A facility shall maintain or attach the record of the a

 

10  sale, purchase, or acquisition of a major component part shall be

 

11  maintained in or attached to a police book as described in section

 

12  251 of the Michigan vehicle code, Act No. 300 of the Public Acts of

 

13  1949, being section 257.251 of the Michigan Compiled Laws. The

 

14  facility's 1949 PA 300, MCL 257.251. A facility shall make its

 

15  police book and the its records of vehicle part sales, purchases,

 

16  or acquisitions shall immediately be made immediately available for

 

17  inspection by the administrator and other law enforcement officials

 

18  after if a request for inspection is made.

 

19        (5) (3) Nothing in this section shall This section does not

 

20  authorize a facility to engage in the business of dealing in

 

21  vehicles or salvageable parts without a dealer's license under the

 

22  Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923.

 

23        Sec. 19. In the event of loss, destruction, or mutilation of a

 

24  registration, certificate, or trainee permit, the person to whom

 

25  which it was issued may obtain a duplicate copy upon replacement by

 

26  furnishing satisfactory proof of the loss, destruction, or

 

27  mutilation and paying the fee as determined by rule.required under


 1  section 30. An application for a replacement registration,

 

 2  certificate, or trainee permit shall include all of the following

 

 3  information:

 

 4        (a) The name and address of the applicant.

 

 5        (b) An explanation of the loss, destruction, or mutilation of

 

 6  the original registration, certificate, or permit.

 

 7        Sec. 20. (1) Registrations and certificates including mechanic

 

 8  trainee permits shall be renewed as determined by rule.A

 

 9  certification as a specialty or master mechanic under this act

 

10  takes effect on the date it is approved by the administrator and

 

11  expires 1 year after that date. A specialty or master mechanic may

 

12  annually renew his or her certification by submitting an

 

13  application for renewal, accompanied by the certification fee

 

14  described in section 30, with the administrator on or before the

 

15  expiration date of his or her then-current certification.

 

16        (2) A mechanic may continue to function as a certified

 

17  mechanic after the expiration date of his or her then-current

 

18  certification, pending approval of the renewal application by the

 

19  administrator, if the renewal application and renewal fee are

 

20  received by the administrator on or before the expiration date. If

 

21  a renewal application and renewal fee are filed after the

 

22  expiration date, the mechanic may temporarily engage in repairs

 

23  without a certificate from the day on which the application and

 

24  appropriate fee are received by the administrator, pending approval

 

25  of the renewal application. The administrator shall charge a fee of

 

26  1-1/2 times the normal renewal fee if the renewal application is

 

27  received by the administrator after the expiration date.

 1        Sec. 21. (1) If the administrator determines after notice and

 

 2  a hearing that a person has violated this act or a rule promulgated

 

 3  pursuant to it, or engaged in an unfair or deceptive method, act,

 

 4  or practice, under this act, directly or through an agent or

 

 5  employee, he or she may issue an order requiring the person to

 

 6  cease and desist from the unlawful act or practice violation or to

 

 7  take such an affirmative action as that in the judgment of the

 

 8  administrator will would carry out the purposes of this act.

 

 9        (2) If the department administrator makes a finding of fact in

 

10  writing that the public interest will be irreparably harmed by

 

11  delay in issuing an order, it he or she may issue a temporary cease

 

12  and desist order. Prior to Before issuing the temporary cease and

 

13  desist order, the administrator when possible by telephone or

 

14  otherwise shall give notice of the proposal to issue a temporary

 

15  cease and desist order to the facility. A temporary cease and

 

16  desist order shall include in its terms a provision that upon on

 

17  request the administrator shall hold a hearing shall be held within

 

18  30 days to determine whether or not the order shall become

 

19  permanent.

 

20        Sec. 22. (1) The administrator may deny, suspend, or revoke a

 

21  registration, certificate, or mechanic trainee permit after notice

 

22  and opportunity for a hearing take any administrative action

 

23  described in subsection (2) if the administrator determines that

 

24  the a facility, mechanic, or trainee, did or a stockholder,

 

25  officer, director, or partner of a facility that is a corporation

 

26  or partnership, does 1 or more of the following:

 

27        (a) Engaged in a method, act, or practice that is unfair or


 1  deceptive or made Makes an untrue statement of a material fact.

 

 2        (b) Violated Violates this act or a rule promulgated under

 

 3  this act.

 

 4        (c) Violated Violates a condition of probation.

 

 5        (d) Made Makes unnecessary repairs or repairs not authorized

 

 6  by the customer.

 

 7        (e) Refused Refuses to honor warranties made by a facility.

 

 8        (f) Caused or allowed Causes or allows a customer to sign a

 

 9  document in blank relating to the repair of a motor vehicle.

 

10        (g) Was Is enjoined by a court of competent jurisdiction from

 

11  engaging in the trade or business of repairing motor vehicles or

 

12  from a violation of this act or a rule promulgated under this act.

 

13        (h) If the applicant is a corporation or partnership, a

 

14  stockholder, officer, director, or partner of the applicant was

 

15  guilty of an act or omission that would be a cause for refusing,

 

16  revoking, or suspending a license issued to the officer, director,

 

17  or partner as an individual.

 

18        (h) (i) Failed Fails to comply with the terms of a final cease

 

19  and desist order.

 

20        (i) (j) Was Is convicted of a violation of this act.

 

21        (j) (k) Used Uses the waiver of liability provision in an

 

22  attempt to evade this act.

 

23        (k) (l) Was Is convicted of a violation of Act No. 119 of the

 

24  Public Acts of 1986, being sections 257.1351 to 257.1355 of the

 

25  Michigan Compiled Laws.1986 PA 119, MCL 257.1351 to 257.1355.

 

26        (l) (m) Was Is convicted under section 413, 415, 535, 535a, or

 

27  536a of the Michigan penal code, Act No. 328 of the Public Acts of


House Bill No. 4344 as amended May 31, 2016

 1  1931, being sections 750.413, 750.415, 750.535, 750.535a, and

 

 2  750.536a of the Michigan Compiled Laws, 1931 PA 328, MCL 750.413,

 

 3  750.415, 750.535, 750.535a, and 750.536a, or has been convicted in

 

 4  another state of a violation of a law substantially corresponding

 

 5  to 1 of those sections 413, 415, 535, 535a, 536, and 536a of the

 

 6  Michigan penal code. , Act No. 328 of the Public Acts of 1931.

 

 7        (2) After notice and opportunity for a hearing, the

 

 8  administrator may do 1 or more of the following if he or she

 

 9  determines that a facility, mechanic, or trainee, or a stockholder,

 

10  officer, director, or partner of a facility that is a corporation

 

11  or partnership, violates subsection (1):

 

12        (a) Place a limitation on a registration, certificate, or

 

13  mechanic trainee permit.

 

14        (b) Suspend a registration, certificate, or mechanic trainee

 

15  permit.

 

16        (c) Deny a registration, certificate, or mechanic trainee

 

17  permit or renewal of a registration, certificate, or mechanic

 

18  trainee permit.

 

19        (d) Revoke a registration, certificate, or mechanic trainee

 

20  permit.

 

21        (e) Censure the person that holds a registration, certificate,

 

22  or mechanic trainee permit.

 

23        (3) As an alternative or in addition to administrative action

 

24  under subsection (2) for a violation or alleged violation of

 

25  subsection (1), the [administrator] may, by written agreement with a

 

26  person that holds a registration, certificate, or mechanic trainee

 

27  permit, place a registration, certificate, or mechanic trainee


House Bill No. 4344 as amended May 31, 2016

 1  permit on probation and include conditions of probation in the

 

 2  agreement.

 

 3        (4) The remedies and sanctions under this act are independent

 

 4  and cumulative. The use of a remedy or sanction under this act,

 

 5  including, but not limited to, administrative action by the

 

 6  [administrator] under subsection (2) or an agreement for probation under

 

 7  subsection (3), does not bar other lawful remedies and sanctions

 

 8  against a person and does not limit a person's criminal or civil

 

 9  liability under law.

 

10        Sec. 30. (1) The registration fee for the registration of a

 

11  facility shall be is determined by a sliding fee scale that is

 

12  based upon on the gross annual revenue of the facility, as follows:

 

 

13      GROSS ANNUAL REVENUE                                  FEE

14 under $5,000.00................................        $  25.00

15 $5,001.00 to $15,000.00........................           50.00

16 $15,001.00 to $25,000.00.......................           75.00

17 $25,001.00 to $40,000.00.......................          100.00

18 $40,001.00 to $60,000.00.......................          125.00

19 $60,001.00 to $80,000.00.......................          150.00

20 $80,001.00 to $100,000.00......................          175.00

21 $100,001.00 to 120,000.00......................          200.00

22 $120,001.00 to 140,000.00......................          225.00

23 $140,001.00 to $160,000.00.....................          250.00

24 $160,001.00 to $180,000.00.....................          275.00

25 $180,001.00 to $200,000.00.....................          300.00

26 $200,001.00 to $220,000.00.....................          325.00

27 $220,001.00 to $240,000.00.....................          350.00

 1 $240,001.00 to $260,000.00.....................          375.00

 2 $260,001.00 to $280,000.00.....................          400.00

 3 $280,001.00 to $300,000.00.....................          425.00

 4 $300,001.00 to $320,000.00.....................          450.00

 5 $320,001.00 to $340,000.00.....................          475.00

 6 over $340,000.00...............................          500.00

 

 

 7        (2) The certificate fee for the certification of specialty and

 

 8  master mechanics and the permit fee of mechanic trainees shall be

 

 9  set by rule.

 

10        (3) The fee for the renewal of the registration of a facility,

 

11  certification of a specialty or master mechanic, including a permit

 

12  of a mechanic trainee shall be set by rule. The effective length of

 

13  original and renewal registrations, certificates, and permits shall

 

14  be set by rule and shall not be less than 1 year in duration. The

 

15  renewal fee for a registration, certificate, or permit that has

 

16  expired shall be 1-1/2 times the fee for the renewal of a

 

17  registration, certificate, or permit that has not expired.

 

18        (2) The examination, application, certificate, and renewal

 

19  fees for the certification of mechanics are as follows:

 

20        (a) Each certification examination administered by the

 

21  administrator, $6.00.

 

22        (b) Application for original certificate, $25.00. However, any

 

23  of the following may apply for an original specialty or master

 

24  mechanic certificate without paying a fee under this subdivision:

 

25        (i) An individual who is currently certified by the

 

26  administrator in at least 1 repair category may apply for

 

27  certification in 1 or more additional repair categories without


 1  paying a fee under this subdivision.

 

 2        (ii) A mechanic trainee who presents proof that he or she has

 

 3  successfully completed 30 or more hours of continuing mechanic

 

 4  education courses given by an approved educational institution

 

 5  during the 5-year period immediately preceding the date the trainee

 

 6  submits the application for certification.

 

 7        (iii) An individual who served in the armed forces; was

 

 8  separated from that service; and provides to the administrator a

 

 9  form DD214, a form DD215, or any other form that is satisfactory to

 

10  the administrator that demonstrates that the individual was

 

11  separated from that service, with an honorable character of service

 

12  or under honorable conditions (general) character of service.

 

13        (c) Application for renewal certificate, $20.00.

 

14        (d) Replacement certificate, $5.00.

 

15        (3) The permit fees for a mechanic trainee are as follows:

 

16        (a) Application for a mechanic trainee permit, $20.00.

 

17  However, either of the following may apply for a mechanic trainee

 

18  permit without paying a fee under this subdivision:

 

19        (i) An individual who is currently certified by the

 

20  administrator in at least 1 repair category.

 

21        (ii) A student who is currently enrolled in a vocational

 

22  education or special education program that includes employment by

 

23  a motor vehicle repair facility; that is approved by the department

 

24  of education; and for which the student receives credit toward the

 

25  award of a high school or special education diploma.

 

26        (b) Replacement of trainee permit, $5.00.

 

27        (4) As used in this section:

 1        (a) "Armed forces" means that term as defined in section 2 of

 

 2  the veteran right to employment services act, 1994 PA 39, MCL

 

 3  35.1092.

 

 4        (b) "Gross annual revenue" means a facility's gross revenue

 

 5  from performing repairs, including parts and goods sold in

 

 6  conjunction with repairs, in its most recently completed federal

 

 7  income tax year, or, if the facility has not been in business for a

 

 8  complete federal income tax year, the facility's reasonably

 

 9  anticipated gross revenue for its first full federal income tax

 

10  year of operation.

 

11        Sec. 32. (1) A Before beginning repair work, a motor vehicle

 

12  repair facility shall give to the customer a written estimate ,

 

13  itemizing that itemizes as closely as possible the price for labor

 

14  and parts necessary for a specific job prior to the commencement of

 

15  the work. A facility shall not charge for work done or parts

 

16  supplied in excess of the estimated price, or in excess of the

 

17  limit stated by the customer in the waiver provided for described

 

18  in subsection (3), without the knowing written or oral consent of

 

19  the customer, which shall be obtained at some time after it is

 

20  determined the facility determines that the estimated price or

 

21  stated limit is insufficient and before any work that is not

 

22  estimated or is in excess of the limit is done or the parts that

 

23  are not estimated or are in excess of the limit are supplied. If a

 

24  waiver is not signed as provided in under subsection (3) and the

 

25  estimated price is exceeded by not more than 10% or $10.00 $50.00,

 

26  whichever is lesser, the facility is not required to obtain the

 

27  written or oral consent of the customer for the excess charge need


 1  not be obtained unless specifically requested by the customer. This

 

 2  section shall not be construed as requiring a motor vehicle repair

 

 3  facility, mechanic, or mechanic trainee to give a written estimated

 

 4  price if he the facility, mechanic, or trainee agrees not to

 

 5  perform the requested repair. If the actual cost of a repair is

 

 6  less than the agreed upon on estimated cost, the customer shall pay

 

 7  only the actual cost.

 

 8        (2) If the a facility or mechanic informs the customer that

 

 9  the price for repair will exceed the written estimate or the stated

 

10  limit in the waiver and the customer does not want the repair work

 

11  performed, then the customer is liable responsible for all

 

12  reasonable costs to return the vehicle to the condition it was when

 

13  in at the time it entered the facility. These The facility shall

 

14  indicate those costs should be indicated in written form, itemizing

 

15  the costs as closely as possible with a copy given to the customer.

 

16  The cost of a diagnosis to be made by the facility, whether or not

 

17  the customer authorizes the facility to perform those repairs, to

 

18  be performed, shall be contained included in the written estimate

 

19  before the diagnosis is undertaken.

 

20        (3) If a customer initiates a request for service or parts for

 

21  the repair of a motor vehicle without receiving a written estimate

 

22  and voluntarily agrees to pay all reasonable costs of repair up to

 

23  an amount stated by the customer, a repair facility may obtain from

 

24  the customer a waiver of his or her right to receive a prior

 

25  estimate of repair costs. The waiver shall be in 14 point or larger

 

26  bold capital type face and executed with 1 copy to the customer who

 

27  is requesting the repairs. and The waiver shall read as follows:

 1        "I, __________, voluntarily request authorize __________ to

 

 2  provide services or parts in the repair of the below described

 

 3  motor vehicle without receiving an estimate of repair costs. By

 

 4  signing this form, I understand that I will give up my right to:

 

 5        1. Receive a written estimate of the cost for repairs;

 

 6        2. Approve in advance any repairs or costs with a total cost

 

 7  under $ __________; and

 

 8        3. Refuse to pay for repairs with a total cost less than the

 

 9  amount stated above.

 

10        The facility may exceed the amount stated above only after I

 

11  give my written or oral approval.

 

12        Motor vehicle description:

 

13        Customer signature _______________

 

14        Date __________

 

15        Time __________".

 

16        (4) This waiver shall not be effective unless A waiver

 

17  described in subsection (3) is not effective unless it is given by

 

18  the customer voluntarily and with full knowledge of the

 

19  implications of the waiver. A motor vehicle repair facility or

 

20  anyone in its employ shall not make use of the a waiver described

 

21  in subsection (3) in an attempt to evade this act.

 

22        (5) A motor vehicle repair facility shall at all times

 

23  display, in a place and manner conspicuous to its customers, a

 

24  current and valid certificate of repair facility registration

 

25  issued by the administrator.

 

26        (6) A motor vehicle repair facility shall include its

 

27  registration number, as assigned by the administrator, on each copy


 1  of any instrument, form, contract, or other document used by the

 

 2  applicant in dealing with the public in the repair of motor

 

 3  vehicles, including, but not limited to, all of the following:

 

 4        (a) Any document on which the facility routinely requires the

 

 5  customer's signature.

 

 6        (b) Any document used by the facility in connection with

 

 7  providing estimates, diagnoses, or repairs.

 

 8        (c) Any invoices, warranties, or waivers.

 

 9        (d) Any other document used by the facility to comply with

 

10  this act or rules promulgated under this act.

 

11        Sec. 32a. (1) A motor vehicle repair facility shall display a

 

12  consumer information sign. The sign shall contain 12 lines of

 

13  lettering worded substantially as follows:

 

14  "THIS ESTABLISHMENT IS REGISTERED WITH THE MICHIGAN DEPARTMENT OF

 

15  STATE AND IS REQUIRED BY LAW TO FURNISH A CUSTOMER WITH A:

 

16  (1) WRITTEN ESTIMATE IF REPAIRS WILL BE $50 OR MORE OR ON REQUEST

 

17  IF REPAIRS WILL BE LESS THAN $50.

 

18  (2) DETAILED STATEMENT OF LABOR AND PARTS SUPPLIED. QUESTIONS

 

19  REGARDING SERVICE WORK SHOULD BE DIRECTED FIRST TO THE MANAGER OF

 

20  THIS REPAIR FACILITY.

 

21  MICHIGAN DEPARTMENT OF STATE

 

22  P.O. BOX ________, LANSING, MI 489____

 

23  TOLL-FREE TELEPHONE: 800 _________________

 

24  MON.-FRI., 8:30 A.M. - 4:30 P.M.

 

25  DEPARTMENT OF STATE WEBSITE: _____________."

 

26        (2) All of the following apply to a sign required under

 

27  subsection (1):

 1        (a) It shall be rectangular in shape and at least 28 inches

 

 2  high by 24 inches wide.

 

 3        (b) It shall be constructed of durable material.

 

 4        (c) The background of the sign shall be white.

 

 5        (d) Print and other markings on the sign shall be black.

 

 6        (e) The wording of the sign shall be printed in bold, block,

 

 7  capital letters that are 1-inch high and 1/2-inch wide in lines 1,

 

 8  2, 8, 9, 10, and 12; 3/4-inch high and 1/2-inch wide in line 11;

 

 9  and 1/2-inch high and 3/8-inch wide in lines 3 to 7.

 

10        (f) The sign shall be laid out in a clearly legible fashion,

 

11  with the lettering arranged so that there is at least a 1/8-inch

 

12  space between any 2 letters within a line and at least a 1/2-inch

 

13  space between any 2 lines.

 

14        (g) The sign shall include the address, telephone numbers, and

 

15  Internet website address of the department in lines 9, 10, and 12,

 

16  as provided by the administrator.

 

17        (3) All of the following apply to the display of a sign

 

18  required under subsection (1) by a motor vehicle repair facility:

 

19        (a) The facility shall display the sign at each entrance to

 

20  the facility and at each cashier station. As used in this

 

21  subsection, "entrance to the facility" means each location in or

 

22  about the facility where customer repair service orders are

 

23  initially executed.

 

24        (b) The facility shall ensure that the sign is unobstructed

 

25  and clearly and readily visible to customers.

 

26        (c) If the facility is not enclosed or is a mobile facility,

 

27  the facility shall ensure that it is placed in an area where it is


 1  easily noticeable to customers who are transacting business with

 

 2  the facility.

 

 3        (4) The administrator may require that a facility replace any

 

 4  sign that does not meet all of the requirements of this section or

 

 5  is no longer readily legible, or that the facility reposition any

 

 6  sign that is improperly displayed.

 

 7        Sec. 33. (1) The administrator shall determine by rule the

 

 8  time and manner in which the A motor vehicle repair facility shall

 

 9  return replaced parts to the customer at the time of the completion

 

10  of the work. This requirement does not apply to parts exempted the

 

11  repair work is completed. All of the following apply to the

 

12  obligation to return replaced parts under this subsection:

 

13        (a) A facility is not required to return any of the following

 

14  replaced parts to the customer:

 

15        (i) Parts that are exempted from the return requirement by the

 

16  administrator because of size, weight, or similar factors. from

 

17  this requirement, and except for parts However, a facility shall

 

18  not prevent a customer from removing any heavy or large part, by

 

19  the customer's own means and at his or her expense.

 

20        (ii) Subject to subsection (3), parts that the motor vehicle

 

21  repair facility or mechanic is required to return to the

 

22  manufacturer or distributor under a warranty or exchange

 

23  arrangement. If the parts must be returned to the manufacturer or

 

24  distributor, the facility or mechanic shall offer to show and upon

 

25  acceptance of the offer or upon request shall show the parts to the

 

26  customer upon completion of the work, except the facility shall not

 

27  be required to show a replacement part when a charge is not being


 1  made for the replacement thereof.

 

 2        (iii) For reasons of safety, a gasoline tank or any other

 

 3  container-type part that was filled with or was otherwise in

 

 4  appreciable contact with flammable fuels, unless that part is

 

 5  rendered nonflammable.

 

 6        (b) If any returned part presents an actual danger of

 

 7  flammability or explosiveness, the facility shall clearly inform

 

 8  the customer of that danger.

 

 9        (c) When the repair work is completed, if requested by the

 

10  customer, the facility shall reasonably clean the replaced parts

 

11  that are to be returned or inspected by the customer. The facility

 

12  shall place portable parts in a suitable container. The facility

 

13  shall store any parts that it identifies as not portable in a

 

14  suitable place in the facility for the customer's inspection.

 

15        (d) If a facility charges a fee to a customer in connection

 

16  with the return of replaced parts, the facility must disclose that

 

17  fee to the customer in writing before the customer engages the

 

18  facility to replace the part.

 

19        (2) A customer shall be informed of his right to receive or

 

20  see inspect replaced parts as provided in this section prior to the

 

21  customer executing any document or engaging before the customer

 

22  executes any document or engages the facility or mechanic for the

 

23  work. The information shall be given Subject to subsection (5), the

 

24  facility shall provide this information to the customer by

 

25  providing the following notice to the customer, printed or

 

26  displayed on the face of any contract, work order form, or sign, or

 

27  other document evidencing that evidences the engagement of the


 1  facility or mechanic or by separate written document, in at least

 

 2  12 point boldface type 12-point boldfaced letters that are at least

 

 3  4 points larger that the principal size of the letters in that

 

 4  document, or providing the notice in a separate written document in

 

 5  at least 12-point, boldfaced, capital letters, as follows:

 

 6        YOU ARE ENTITLED BY LAW TO THE RETURN OF ALL PARTS REPLACED,

 

 7  EXCEPT THOSE WHICH ARE TOO HEAVY OR LARGE, AND THOSE REQUIRED TO BE

 

 8  SENT BACK TO THE MANUFACTURER OR DISTRIBUTOR BECAUSE OF WARRANTY

 

 9  WORK OR AN EXCHANGE AGREEMENT. YOU ARE ENTITLED TO INSPECT THE

 

10  PARTS WHICH CANNOT BE RETURNED TO YOU.

 

11        (3) If a facility is obligated to return a replaced part to

 

12  the manufacturer or a distributor under a warranty agreement, or,

 

13  subject to subsection (4), under an exchange agreement, the

 

14  facility is not required to return that part to the customer.

 

15  However, the facility or mechanic shall offer the customer an

 

16  opportunity to inspect the replaced part. If the customer accepts

 

17  the offer to inspect the part, or otherwise requests to inspect the

 

18  part, the facility or mechanic shall allow the customer to inspect

 

19  the part when the repair work is completed. A facility is not

 

20  required to show a replacement part to a customer if the

 

21  replacement is made without charge to the customer.

 

22        (4) If replacement of a part is contingent on the facility

 

23  keeping the part under an exchange agreement, the facility shall

 

24  explain, in a manner understandable to the customer, the precise

 

25  terms of the exchange agreement, including if applicable a

 

26  disclosure of the price to the customer if he or she wishes to

 

27  reclaim the part. If a customer raises a question or dispute with


 1  the facility within 2 business days after the delivery of the

 

 2  repaired vehicle to the customer and the dispute involves an

 

 3  exchange part for which the facility required the customer pay a

 

 4  deposit in the amount of the facility's obligation, the facility

 

 5  shall refund the deposit to the customer if he or she returns the

 

 6  part to the facility.

 

 7        (5) A facility that displays the notice described in

 

 8  subsection (2) on a clearly legible sign with lettering at least 1

 

 9  inch high, conspicuously displayed in the part of the facility

 

10  where customers routinely contract for repairs, is not required to

 

11  provide the notice to a customer in the form of a document

 

12  described in subsection (2).

 

13        (6) All of the following apply to the disposition of replaced

 

14  parts that are not returned to the customer:

 

15        (a) Unless subdivision (b) applies, the facility shall not

 

16  dispose of the parts for at least 2 business days after the

 

17  customer takes possession of the repaired vehicle, unless the

 

18  customer has specifically authorized immediate disposition of the

 

19  parts.

 

20        (b) If a customer questions or disputes repairs performed by a

 

21  facility or the charges for those repairs within 2 days after the

 

22  customer takes possession of the repaired vehicle, the facility

 

23  shall not dispose of the replaced parts until the question or

 

24  dispute is resolved. If the dispute involves the replaced part, the

 

25  facility shall, in the presence of the customer, immediately affix

 

26  to the part a permanent mark sufficient to identify the part.

 

27        (7) If requested by a customer, a facility shall explain


 1  exactly why a replaced part is defective or nonfunctional, or

 

 2  otherwise why it was replaced.

 

 3        (8) (3) The motor vehicle repair facility shall display a

 

 4  clearly legible sign in a conspicuous place at the entrance of the

 

 5  facility indicating that indicates that customers may make

 

 6  inquiries concerning repair service or complaints may be made to

 

 7  the administrator and shall contain states the address and

 

 8  telephone number of the department.

 

 9        Sec. 34a. Unless otherwise requested by the customer, the

 

10  requirement to furnish a written estimate shall under section 32

 

11  does not apply to repair work performed by a motor vehicle repair

 

12  facility when if the total cost for services and parts is less than

 

13  $20.00. Nothing in this, or any other $50.00. This section , shall

 

14  cause any repair facility to fail does not apply to or limit a

 

15  facility's obligation to furnish to the customer a final invoice

 

16  for the repairs performed and the parts supplied.written statement

 

17  under section 34 that includes the actual cost of repairs.

 

18        Sec. 36. A facility that violates this act or who, in a course

 

19  of dealing as set forth in this act or rules, engages in an unfair

 

20  or deceptive method, act, or practice, is liable as provided in

 

21  this act, to a person who that suffers damage or injury as a result

 

22  thereof of that violation, in an amount equal to the damages plus

 

23  reasonable attorney fees and costs. If the damage or injury to the

 

24  person occurs as the result of a wilful willful and flagrant

 

25  violation of this act, the person shall recover double the damages

 

26  plus reasonable attorney fees and costs from the facility.

 

27        Sec. 39. The department shall promulgate the rules to


 1  implement this act within 6 months after the effective date of this

 

 2  act. The remaining portions of this act, except as provided in

 

 3  section 5, shall become effective 6 months after the rules are

 

 4  promulgated.R 257.101 to 257.173 of the Michigan administrative

 

 5  code are rescinded.

 

 6        Enacting section 1. This amendatory act takes effect 90 days

 

 7  after the date it is enacted into law.