HOUSE BILL No. 4344

 

March 12, 2015, Introduced by Reps. Pettalia, Santana, Byrd, Robinson, Leutheuser and Kosowski and referred to the Committee on Transportation and Infrastructure.

 

      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, and 36 (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, and 257.1336), sections 2, 18, 22,

 

and 30 as amended and section 2a as added by 1988 PA 254, section

 

10 as amended by 2000 PA 366, and section 17 as amended by 2002

 

PA 464, and by adding sections 7a, 7b, 7c, 7d, 7e, 7f, 10a, 13a,

 

13b, and 32a; and to repeal acts and parts of acts.

 

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


 

 1  person individual designated by him or her to act in his or her

 

 2  place.

 

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

 

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

 

 5  calls to the attention of the public the availability of parts

 

 6  and services.

 

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

 

 8  academy, or other similar establishment approved by the

 

 9  administrator under section 13a to provide training to mechanics

 

10  or mechanical trainees under this act.

 

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

 

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

 

13        (e) "Contract" means a written or oral agreement, or a

 

14  similar understanding or arrangement, in which a person agrees

 

15  that another person will perform work, labor, diagnosis, repair,

 

16  reconditioning, replacement, adjustment, or alteration, directly

 

17  or indirectly, on a motor vehicle.

 

18        (f) "Customer" means the owner or operator of a motor

 

19  vehicle.

 

20        (g) (b) "Department" means the department of state.

 

21        (c) "Master mechanic" means a motor vehicle mechanic or

 

22  specialty mechanic who is certified by the department pursuant to

 

23  this act in all of the specific repair categories.

 

24        (d) "Motor vehicle" means a vehicle which is self-propelled,

 

25  a vehicle which is propelled by electric power, a motorcycle, or

 

26  a trailer as those terms are defined in the Michigan vehicle

 

27  code, Act No. 300 of the Public Acts of 1949, as amended, being


 

 1  sections 257.1 to 257.923 of the Michigan Compiled Laws. For the

 

 2  purposes of this act, a motor vehicle does not include the

 

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

 

 4  recreational vehicle having similar facilities which are not

 

 5  directly connected with the drive mechanism of the vehicle or

 

 6  other areas of repair which would require certification of motor

 

 7  vehicle mechanics as specified in this act or rules promulgated

 

 8  pursuant to this act.

 

 9        (e) "Motor vehicle mechanic" means a technician, individual,

 

10  or other person who, for compensation, repairs motor vehicles,

 

11  including the reconditioning, replacement, adjustment, or

 

12  alteration of the operating condition, of any component or

 

13  subassembly of a motor vehicle.

 

14        (f) "Mechanic trainee" means a person who desires to become

 

15  a motor vehicle mechanic, a specialty mechanic, or a master

 

16  mechanic and receives a permit from the administrator pursuant to

 

17  this act.

 

18        (g) "Motor vehicle repair facility" means a place of

 

19  business which engages in the business of performing or employing

 

20  persons who perform maintenance, diagnosis, vehicle body work, or

 

21  repair service on a motor vehicle for compensation, but excluding

 

22  all of the following:

 

23        (i) A person who engages only in the business of repairing

 

24  the motor vehicles of a single commercial or industrial

 

25  establishment or governmental agency.

 

26        (ii) A person repairing his or her own or a family member's

 

27  car.


 

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

 

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

 

 3  remachined, and does not install finished machined or remachined

 

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

 

 5  facility that engages in the business of performing or employing

 

 6  persons who perform vehicle body work.

 

 7        (h) "Specialty mechanic" means a motor vehicle mechanic who

 

 8  is certified by the department for a specific repair category or

 

 9  categories pursuant to this act.

 

10        (h) "Distressed vehicle" means that term as defined in

 

11  section 12a of the Michigan vehicle code, 1949 PA 300, MCL

 

12  257.12a.

 

13        (i) "Estimate" means a written statement that itemizes as

 

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

 

15  price per hour, the number of hours required to perform the work,

 

16  and the price of parts necessary for a specific repair.

 

17        (j) "Facility" or "motor vehicle repair facility" means a

 

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

 

19  engages in the business of performing, or employing individuals

 

20  who perform, maintenance, diagnosis, vehicle body work, or repair

 

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

 

22  include any of the following:

 

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

 

24  the motor vehicles of a single commercial or industrial

 

25  establishment or governmental agency.

 

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

 

27  family member's motor vehicle.


 

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

 

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

 

 3  remachined, and does not install finished machined or remachined

 

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

 

 5  motor vehicle repair facility that engages in the business of

 

 6  performing, or employing individuals who perform, vehicle body

 

 7  work.

 

 8        (k) "Heavy-duty truck" means a motor vehicle that has a

 

 9  gross vehicle weight of 10,000 pounds or more and includes both

 

10  single-unit and combination tractor trailer or tractor

 

11  semitrailer vehicles.

 

12        (l) "Late model vehicle" means that term as defined in

 

13  section 24b of the Michigan vehicle code, 1949 PA 300, MCL

 

14  257.24b.

 

15        (m) "Lien" means a security interest in or other encumbrance

 

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

 

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

 

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

 

19  a vehicle.

 

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

 

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

 

22  section 12a of the Michigan vehicle code, Act No. 300 of the

 

23  Public Acts of 1949, being section 257.12a of the Michigan

 

24  Compiled Laws.

 

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

 

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

 

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


 

 1  section 257.24b of the Michigan Compiled Laws.

 

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

 

 3  parts of a motor vehicle:

 

 4        (i) The engine.

 

 5        (ii) The transmission.

 

 6        (iii) The right or left front fender.

 

 7        (iv) The hood.

 

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

 

 9  the passenger compartment of the vehicle.

 

10        (vi) The front or rear bumper bar.

 

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

 

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

 

13        (ix) The trunk floor pan.

 

14        (x) The cargo box of a pickup.

 

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

 

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

 

17  identified by the motor vehicle manufacturer as structural

 

18  components.

 

19        (xii) The cab of a truck.

 

20        (xiii) The body of a passenger vehicle.

 

21        (xiv) Airbags and all supplemental restraint system

 

22  components as identified by the motor vehicle manufacturer.

 

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

 

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

 

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

 

26  repair categories applicable to automobiles or light trucks

 

27  described in section 10(3).


 

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

 

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

 

 3  repair categories applicable to heavy-duty trucks described in

 

 4  section 10(4).

 

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

 

 6  department to engage in motorcycle repair and is described in

 

 7  section 10a(5).

 

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

 

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

 

10  recreational vehicle equipment and is described in section

 

11  10a(6).

 

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

 

13  a premise on which a conclusion is based.

 

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

 

15  become a motor vehicle mechanic, a specialty mechanic, or a

 

16  master mechanic and receives a permit from the administrator

 

17  under this act.

 

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

 

19  installing, changing, or otherwise servicing the antifreeze or

 

20  other coolant; body repairing, except for unitized body

 

21  structural repair; or the replacement, adjustment, repair, or

 

22  servicing of any of the following parts and assemblies:

 

23        (i) Air cleaner element.

 

24        (ii) Accessory drive belt.

 

25        (iii) Air pump hose.

 

26        (iv) Twelve-volt battery.

 

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


 

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

 

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

 

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

 

 4        (ix) Crankcase vent air cleaner.

 

 5        (x) Crankcase vent air cleaner hose.

 

 6        (xi) Engine oil filter.

 

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

 

 8  pipe and associated attaching parts.

 

 9        (xiii) Fuel filter.

 

10        (xiv) Fuel line flex hose or line.

 

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

 

12        (xvi) Fuse.

 

13        (xvii) Heater hose.

 

14        (xviii) Horn.

 

15        (xix) Idler pulley, adjust only.

 

16        (xx) Ignition coil output wire.

 

17        (xxi) Lightbulb or headlamp.

 

18        (xxii) Motor or transmission mount.

 

19        (xxiii) Ornamental accessories.

 

20        (xxiv) Positive crankcase ventilation control valve.

 

21        (xxv) Radiator.

 

22        (xxvi) Radiator hose, upper or lower.

 

23        (xxvii) Radiator reserve tank.

 

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

 

25  type assembly.

 

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

 

27  other parts of the suspension.


 

 1        (xxx) Analog speedometer.

 

 2        (xxxi) Vapor canister hose.

 

 3        (xxxii) Wheel, except alignment.

 

 4        (xxxiii) Windshield washer hose.

 

 5        (xxxiv) Windshield washer tank.

 

 6        (xxxv) Wiper blade.

 

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

 

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

 

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

 

10  1949 PA 300, MCL 257.1 to 257.923. The term does not include the

 

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

 

12  recreational vehicle that has similar facilities that are not

 

13  directly connected with the drive mechanism of the vehicle or

 

14  other areas of repair that would require certification of motor

 

15  vehicle mechanics under this act or rules promulgated under this

 

16  act.

 

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

 

18  individual who, for compensation, repairs motor vehicles,

 

19  including the reconditioning, replacement, adjustment, or

 

20  alteration of the operating condition, of any component or

 

21  subassembly of a motor vehicle.

 

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

 

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

 

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

 

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

 

26  trailer, or other special purpose or utility trailer or

 

27  semitrailer designed or intended to be drawn on the highway by an


 

 1  automobile or light truck that has a gross towing vehicle weight

 

 2  of less than 10,000 pounds.

 

 3        (j) "Repair" means the reconditioning, adjustment,

 

 4  alteration, maintenance, or diagnosis of the operating condition

 

 5  of a motor vehicle, with or without the replacement of any

 

 6  component or subassembly of a motor vehicle, for compensation or

 

 7  under the terms of a warranty.

 

 8        (k) "Repair category" means a category of motor vehicle

 

 9  repair work, listed in section 10a, that certification under this

 

10  act is required to perform.

 

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

 

12  a customer in regard to some past, present, or future fact,

 

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

 

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

 

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

 

16  year, if the part can be reused.

 

17        (n) "Specialty mechanic" means a motor vehicle mechanic who

 

18  is certified by the department for a specific repair category or

 

19  categories under this act.

 

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

 

21  of repairing physical damage to a motor vehicle by repairing,

 

22  mending, straightening, or replacing a major component part,

 

23  except for the engine or transmission.

 

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

 

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

 

26  merchantability, of the integrity of the subject of a contract,

 

27  or of the responsibility of the person that makes the warranty


 

 1  for the replacement or repair of defective parts or services, or

 

 2  both, assuring performance, product, or conditions as promised or

 

 3  declared by the person that makes the warranty.

 

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

 

 5  vehicle repair business including the operating of a motor

 

 6  vehicle repair facility is adopted for the purposes of evading

 

 7  this act, and except as otherwise provided in this act, this act

 

 8  shall does not apply to gasoline service stations exclusively

 

 9  engaged in the business of selling motor fuel and lubricants. A

 

10  person or facility providing minor services, including but not

 

11  limited to: the changing or installing of light bulbs, tires,

 

12  lamp globes, batteries, air filters, oil filters, windshield

 

13  wiper blades, fan or power assist belts or lubrication or oil

 

14  changes and other minor or ornamental accessories or However, a

 

15  person, including a gasoline service station, that provides minor

 

16  repair services or activities incidental to the business of

 

17  selling motor fuel and lubricants is hereby declared a motor

 

18  vehicle repair facility and is subject to this act, except that

 

19  those employees performing only minor repairs need not be

 

20  certified an employee of the person may perform minor repair

 

21  services without a certification or permit from the department

 

22  under this act.

 

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

 

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

 

25  or deceptive.A motor vehicle repair facility that is subject to

 

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

 

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


 

 1  directly or through an agent or employee, do any of the

 

 2  following:

 

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

 

 4  to circumvent or evade this act.

 

 5        (b) Enter into a contract that takes advantage of a

 

 6  customer's inability to reasonably protect his or her interests

 

 7  because of his or her illiteracy or inability to understand the

 

 8  language of an agreement, if the facility knows or reasonably

 

 9  should know of the customer's illiteracy or inability to

 

10  understand.

 

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

 

12  discrepancies between the oral representations of the facility

 

13  and the written agreement covering the same transaction.

 

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

 

15  statement of a material fact to a customer.

 

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

 

17  customer could not reasonably know if that omission tends to

 

18  mislead or deceive the customer.

 

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

 

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

 

21  or remedies of the customer.

 

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

 

23  or other writing that affirms acceptance, delivery, compliance

 

24  with a requirement of law, or other performance, if the facility

 

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

 

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

 

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


 

 1  language, clearly described, or reasonably legible.

 

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

 

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

 

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

 

 5  otherwise terminated under the terms of the contract or under

 

 6  this act, fail to promptly return any deposit, down payment, or

 

 7  other payment to the person that is entitled to receive it.

 

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

 

 9  the repair of a motor vehicle.

 

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

 

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

 

12  by the customer.

 

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

 

14  give a written statement of repairs to the customer that

 

15  discloses all of the following:

 

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

 

17        (ii) The repairs requested by the customer.

 

18        (iii) The repairs authorized by the customer.

 

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

 

20        (v) The actual costs of repairs.

 

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

 

22  identification of all parts that were replaced and a

 

23  specification of which parts are new, used, rebuilt, OEM surplus,

 

24  or reconditioned.

 

25        (vii) A certification that authorized repairs were completed

 

26  properly or a detailed explanation of an inability to complete

 

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


 

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

 

 2  certification statement. The statement shall include the name of

 

 3  the mechanic who performed the diagnosis and the repair.

 

 4        Sec. 7a. 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

 

 8  following:

 

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

 

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

 

11  the customer insists that the facility perform the repair and

 

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

 

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

 

14  necessary when in fact they are not.

 

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

 

16  authorized.

 

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

 

18  time agreed, or within a reasonable time, unless circumstances

 

19  beyond the control of the facility prevent the timely performance

 

20  of the repairs and the facility did not have reason to know of

 

21  those circumstances at the time the contract was made.

 

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

 

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

 

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

 

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

 

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

 

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


 

 1        (g) Replace a part with a part that does not meet or exceed

 

 2  standards recognized as OEM comparable quality as verified by a

 

 3  nationally recognized automotive parts testing agency.

 

 4        (h) Subsequent to a diagnosis requested by a customer for

 

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

 

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

 

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

 

 8  malfunction.

 

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

 

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

 

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

 

12  directly or through an agent or employee, do any of the

 

13  following:

 

14        (a) Disclaim or limit the implied warranty of

 

15  merchantability or fitness for use, unless excluded or modified

 

16  under section 2316 of the uniform commercial code, 1962 PA 174,

 

17  MCL 440.2316.

 

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

 

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

 

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

 

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

 

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

 

23  than the 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.


 

 1        (d) Fail to honor an express warranty.

 

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

 

 3  to the nature or scope of the warranty, all material aspects and

 

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

 

 5  warranted, the person that will honor the warranty, the duration

 

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

 

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

 

 8  the terms of the written warranty agreement.

 

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

 

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

 

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

 

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

 

13  either directly or indirectly, any of the following:

 

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

 

15  them at the advertised price during the period of the offering.

 

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

 

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

 

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

 

19  services during the advertised period because the facility has

 

20  failed to prepare for the reasonably expected public demand.

 

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

 

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

 

23  are undisclosed conditions, terms, or limitations attached to the

 

24  offer of those products or services.

 

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

 

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

 

27  of that fact tends to mislead or deceive the customer.


 

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

 

 2  other benefit as an inducement for entering into a contract, if

 

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

 

 4  transaction is completed.

 

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

 

 6  services using personnel who are qualified in specific repair

 

 7  specialties, including those specialties enumerated in section 10

 

 8  of this act, if in fact the facility does not employ mechanics

 

 9  who are legally certified in those specialties.

 

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

 

11  contingency, condition, or limitation on the offer of those

 

12  products or services, unless the contingency, condition, or

 

13  limitation is stated contemporaneously with the offer in a manner

 

14  clearly and easily understood by the customer.

 

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

 

16  unless the advertisement or representation includes any required

 

17  disclosures or limitations on the offer in the language

 

18  principally used in the advertisement or representation.

 

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

 

20  "licensed", or otherwise qualified if that representation tends

 

21  to give the impression that all mechanics employed by the

 

22  facility are certified or licensed if in fact they are not.

 

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

 

24  certain period of time to procure products or services will

 

25  result in the loss of opportunity to procure them at a particular

 

26  price, if in fact it is untrue.

 

27        (k) Credit availability, in a manner that creates a


 

 1  likelihood of confusion or misunderstanding of the terms or

 

 2  conditions of credit, or that credit availability or the terms of

 

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

 

 4  credit availability or terms, if in fact that is untrue.

 

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

 

 6  "satisfaction guaranteed or money back", or using words of

 

 7  similar import, if in fact the customer's declaration of

 

 8  dissatisfaction is not a sufficient basis for obtaining a refund

 

 9  of the purchase price for those products or services.

 

10        (m) The necessity, desirability, or advantage to a

 

11  prospective customer of dealing with a facility by

 

12  misrepresenting the facility's alleged advantages of size.

 

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

 

14  than what it is.

 

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

 

16  causes a likelihood of confusion, or of misunderstanding, with

 

17  respect to the authority of a mechanic, salesperson,

 

18  representative, or agent to negotiate the final terms of the

 

19  transaction.

 

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

 

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

 

22  legal rights, obligations, or remedies of a party to the

 

23  transaction.

 

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

 

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

 

26  limitations or conditions on the availability of that service.

 

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


 

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

 

 2  failing to disclose before the transaction a charge for

 

 3  replacement or reassembly if the customer declines to authorize a

 

 4  recommended repair.

 

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

 

 6  facility fails to provide it at the offered price during the

 

 7  period of the offering to a customer seeking it, failing to offer

 

 8  and provide the customer the opportunity to obtain the product or

 

 9  service at the same reduced rate within a reasonable period of

 

10  time after the expiration of the original offer.

 

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

 

12  services, in a manner that involves the solicitation of waivers

 

13  by the facility.

 

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

 

15  expected public demand for the duration of the advertised

 

16  offering, unless the advertisement has clearly expressed a

 

17  specific limitation on the quantity of the advertised products or

 

18  services.

 

19        (v) The words "certification", "licensing", or

 

20  "registration", or the use of words of similar import, of a motor

 

21  vehicle repair facility or mechanic, by an organization,

 

22  association, governmental entity, or other program or authority

 

23  other than the administrator, without clearly and conspicuously

 

24  disclosing the source of the certification, licensing, or

 

25  registration, and without adding the disclaimer "not the Michigan

 

26  department of state".

 

27        (w) The desirability or advantages of certification or


 

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

 

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

 

 3  sanctioned by the administrator.

 

 4        Sec. 7d. 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

 

 8  following:

 

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

 

10  lien if the facility has violated this act or rules promulgated

 

11  under this act with respect to the transaction on which the lien

 

12  is based.

 

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

 

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

 

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

 

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

 

17  vehicle if the facility has violated this act or rules

 

18  promulgated under this act with respect to the transaction on

 

19  which the refusal is based.

 

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

 

21  dispute and the customer has paid the amount of the written

 

22  estimate and any amount in excess of that amount that was agreed

 

23  to either orally or in writing by the customer.

 

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

 

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

 

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

 

27  directly or through an agent or employee, do any of the


 

 1  following:

 

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

 

 3  customer a written estimate before beginning work on a motor

 

 4  vehicle.

 

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

 

 6  estimated price without the knowing consent, orally or in

 

 7  writing, of the customer.

 

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

 

 9  any, of reassembly, disassembly, or diagnosis.

 

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

 

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

 

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

 

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

 

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

 

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

 

16  retained by the facility concerning the transaction.

 

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

 

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

 

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

 

20  the customer of the approximate length of the anticipated delay

 

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

 

22  consent to the delay and the storage charges.

 

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

 

24  1601 to 1667f, and the retail installment sales act, 1966 PA 224,

 

25  MCL 445.851 to 445.873, if the customer finances repairs through

 

26  the facility.

 

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


 

 1  payment policies.

 

 2        (i) Conspire with another to fix prices.

 

 3        (j) Conspire with another to allocate the market between

 

 4  them.

 

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

 

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

 

 7  parts returned.

 

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

 

 9  used by a facility to compute labor charges.

 

10        Sec. 7f. 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

 

14  following:

 

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

 

16  implies, directly or indirectly, orally or by action, that

 

17  signing a waiver will improve or expedite service or repairs or

 

18  will reduce the price.

 

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

 

20  customer to agree to a repair.

 

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

 

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

 

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

 

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

 

25  replaced.

 

26        (d) Misrepresent that because of some defect in the

 

27  customer's motor vehicle, the health, safety, and lives of the


 

 1  customer or his or her family are in danger if parts or repair

 

 2  services are not purchased, if in fact the defect does not exist

 

 3  or the installation of the parts or the performance of the

 

 4  services would not remove the danger.

 

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

 

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

 

 7  to mechanic trainees who are subject to this act.

 

 8        (b) Register motor vehicle repair facilities that are

 

 9  subject to this act.

 

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

 

11  facilities, which shall be open to and make that register

 

12  available for public inspection at the office of the secretary of

 

13  state.

 

14        (d) Keep an accurate listing by name and by certificate

 

15  number of each specialty and master mechanic who is certified by

 

16  the administrator at the office of the secretary of state.

 

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

 

18  public of their rights and remedies under this act.

 

19        (f) Inform registered motor vehicle repair facilities at

 

20  least annually of the rules promulgated pursuant to under this

 

21  act, of representative disciplinary hearings, orders, or

 

22  judgments issued or obtained by the administrator, and

 

23  suspensions or revocations of registrations or licenses. A motor

 

24  vehicle repair facility shall inform the mechanics in its employ

 

25  of these actions.

 

26        (g) Establish procedures for receiving complaints relating

 

27  to alleged violations of this act or rules promulgated pursuant


 

 1  to under this act.

 

 2        (h) Establish and collect fees for certification

 

 3  examinations administered by the administrator.

 

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

 

 5  Public Acts of 1969, as amended, being sections 24.201 to 24.315

 

 6  of the Michigan Compiled Laws.the administrator determines are

 

 7  necessary to implement this act under the administrative

 

 8  procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

 9        The rules shall include but not be limited to:

 

10        (i) Definitions of unfair and deceptive practices.

 

11        (ii) Definitions of minor repair services.

 

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

 

13  master mechanics, as a prerequisite to continued certification

 

14  under this act.

 

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

 

16  specialty and master mechanics.

 

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

 

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

 

19  the following apply to a declaratory ruling under this

 

20  subdivision:

 

21        (i) The administrator may issue a declaratory ruling

 

22  concerning the applicability of this act or rules promulgated

 

23  under this act to an actual statement of facts if the

 

24  administrator receives a request for a declaratory ruling from an

 

25  interested person and the interested person submits a clear and

 

26  concise statement of facts to the administrator. The interested

 

27  person may submit to the administrator a brief or other reference


 

 1  to legal authorities on which the interested person relies

 

 2  concerning the applicability of this act or rules promulgated

 

 3  under this act to the statement of facts.

 

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

 

 5  administrator shall provide the interested person that requested

 

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

 

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

 

 8  ruling.

 

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

 

10  of facts provided by the interested person that requested the

 

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

 

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

 

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

 

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

 

15  ruling. However, this subdivision does not prohibit the

 

16  administrator from prospectively changing a declaratory ruling.

 

17        Sec. 10. (1) A person Subject to section 10a(3) and (4), an

 

18  individual may become certified as a specialty mechanic in 1 or

 

19  more repair categories if that person has passed an examination,

 

20  individual takes 1 or more examinations, developed or approved by

 

21  the administrator, or developed by a private entity and adopted

 

22  by the administrator, that the administrator determines is an

 

23  adequate test of a person's ability to perform certain types of

 

24  motor vehicle repair. The repair categories for which

 

25  certification is required include the following and others that

 

26  may be specified by rule:and received scores, as determined by

 

27  the administrator, that indicate competency to perform motor


 

 1  vehicle repairs in the repair category or categories.

 

 2        (a) Engine repair.

 

 3        (b) Automatic transmission.

 

 4        (c) Manual transmission and rear axle.

 

 5        (d) Front end.

 

 6        (e) Brakes.

 

 7        (f) Electrical systems.

 

 8        (g) Heating and air conditioning.

 

 9        (h) Engine tune-up.

 

10        (i) Pre-1973 motor vehicle, subject to subsection (3).

 

11        (2) A person An individual may apply for a specialty

 

12  mechanic's certificate in any or all repair categories but shall

 

13  be is only required to pay only 1 certification fee if the person

 

14  makes the applications individual applies for more than 1

 

15  category at 1 time.

 

16        (3) Within 90 days after the effective date of the

 

17  amendatory act that added this subsection, the administrator

 

18  shall develop or adopt an examination for specialty mechanic

 

19  certification in the repair category described in subsection

 

20  (1)(i) for an individual engaged, for compensation, in the repair

 

21  of a motor vehicle manufactured before 1973 or the

 

22  reconditioning, replacement, adjustment, or alteration of the

 

23  operating condition of any component or subassembly of a motor

 

24  vehicle manufactured before 1973.

 

25        (3) (4) A person An individual may apply for and receive a

 

26  certificate as a master mechanic's certificate mechanic for

 

27  automobiles or light trucks if that person individual is


 

 1  qualified as a specialty mechanic in all repair categories of

 

 2  motor vehicle repair described in section 10a(1), except that

 

 3  certification in the specialty repair category described in

 

 4  subsection (1)(i) section 10a(1)(k) is not necessary for a master

 

 5  mechanic's certificate described in this subsection.

 

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

 

 7  a master mechanic for heavy-duty trucks if that individual is

 

 8  qualified as a specialty mechanic in all repair categories

 

 9  described in section 10a(2), except that certification in the

 

10  repair category described in section 10a(2)(h) is not necessary

 

11  for a master mechanic's certificate described in this subsection.

 

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

 

13  perform repair work as a specialty or master mechanic for

 

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

 

15  categories:

 

16        (a) Engine repair.

 

17        (b) Automatic transmission.

 

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

 

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

 

20        (e) Brakes and braking systems.

 

21        (f) Electrical systems.

 

22        (g) Heating and air-conditioning.

 

23        (h) Engine tune-up and performance.

 

24        (i) Collision-related mechanical repair.

 

25        (j) Unitized body structural repair.

 

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

 

27  this subdivision, "pre-1973 automobile or light truck repair"


 

 1  means the repair of an automobile or light truck manufactured

 

 2  before 1973 or the reconditioning, replacement, adjustment, or

 

 3  alteration of the operating condition of any component or

 

 4  subassembly of an automobile or light truck manufactured before

 

 5  1973.

 

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

 

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

 

 8  trucks in 1 or more of the following repair categories:

 

 9        (a) Engine repair, gasoline.

 

10        (b) Engine repair, diesel.

 

11        (c) Drivetrains.

 

12        (d) Brakes and braking systems.

 

13        (e) Suspension and steering systems.

 

14        (f) Electrical systems.

 

15        (g) Collision-related mechanical repair.

 

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

 

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

 

18  of a heavy-duty truck manufactured before 1973 or the

 

19  reconditioning, replacement, adjustment, or alteration of the

 

20  operating condition of any component or subassembly of a heavy-

 

21  duty truck manufactured before 1973.

 

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

 

23  specialty automobile or light truck mechanic is eligible for that

 

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

 

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

 

26  applying for certification as a master automobile or light truck

 

27  mechanic is eligible for that certification if he or she passes


 

 1  the examinations in all repair categories listed in subsection

 

 2  (1)(a) to (h).

 

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

 

 4  specialty heavy-duty truck mechanic is eligible for that

 

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

 

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

 

 7  applying for certification as a master heavy-duty truck mechanic

 

 8  is eligible for that certification if he or she passes the

 

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

 

10  to (f).

 

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

 

12  master motorcycle mechanic is eligible for that certification if

 

13  he or she passes an examination pertaining to all mechanical

 

14  aspects of motorcycle repair.

 

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

 

16  recreational trailer mechanic is eligible for that certification

 

17  if he or she passes an examination pertaining to all mechanical

 

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

 

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

 

20  trailer equipment" includes recreational trailer brakes,

 

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

 

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

 

23  trailer required under sections 683 to 711 of the Michigan

 

24  vehicle code, 1949 PA 300, MCL 257.683 to 257.711.

 

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

 

26  An individual shall not engage or offer to engage in employment

 

27  as a specialty or master mechanic , that person shall apply for


 

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

 

 2  certificate for that employment from the department. Application

 

 3  An applicant for a specialty or master mechanic's certificate

 

 4  shall be made submit to the administrator, on a form provided by

 

 5  the department, and shall include:all of the following

 

 6  information and the results of the required examinations:

 

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

 

 8        (b) The repair category or categories for which the

 

 9  applicant is applying. and the results of the required

 

10  examinations.

 

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

 

12  vehicle mechanic for compensation and the education or training

 

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

 

14  specialty mechanic, or master mechanic.

 

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

 

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

 

17  specialty mechanic, or master mechanic.

 

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

 

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

 

20        (f) Other relevant information as required by the

 

21  administrator. shall require.

 

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

 

23  An individual may renew a master mechanic's certificate by

 

24  providing all of the information described in subsection (1)(a)

 

25  to (f), on a form provided by the administrator, and paying the

 

26  renewal fee described in section 30.

 

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


 

 1  administrator may only renew a specialty certificate if the

 

 2  individual who is applying for renewal provides all of the

 

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

 

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

 

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

 

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

 

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

 

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

 

 9  calendar year after 1998, 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 tune-up and performance provided by an approved

 

15  educational institution, motor vehicle manufacturer, or

 

16  distributor.

 

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

 

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

 

19  category, from the National Institute for Automotive Service

 

20  Excellence or another mechanic certification organization

 

21  approved by the administrator.

 

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

 

23  mechanic in the area of automobile and light truck electrical

 

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

 

25  after 1999, does 1 of the following:

 

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

 

27  administrator.


 

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

 

 2  an acceptable course of training in automobile and light truck

 

 3  engine electrical systems provided by an approved educational

 

 4  institution, motor vehicle manufacturer, or distributor.

 

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

 

 6  and light truck engine electrical systems, or a comparable

 

 7  category, from the National Institute for Automotive Service

 

 8  Excellence or another mechanic certification organization

 

 9  approved by the administrator.

 

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

 

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

 

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

 

13  calendar year after 2000, does 1 of the following:

 

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

 

15  administrator.

 

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

 

17  an acceptable course of training in automobile and light truck

 

18  engine brakes and braking systems provided by an approved

 

19  educational institution, motor vehicle manufacturer, or

 

20  distributor.

 

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

 

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

 

23  category, from the National Institute for Automotive Service

 

24  Excellence or another mechanic certification organization

 

25  approved by the administrator.

 

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

 

27  examination which is designed to test the competency to correctly


 

 1  diagnose and repair motor vehicles in the specific category for

 

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

 

 3  or oral or practical.All of the following apply to a

 

 4  certification examination under this act:

 

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

 

 6  administrator may allow an individual to take an oral or

 

 7  practical examination if the administrator determines that the

 

 8  individual meets 1 of the following:

 

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

 

10  possibility of passing a standard English language examination.

 

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

 

12        (b) The administrator shall review examinations that are

 

13  being given by private or public agencies, including the

 

14  department of education. If the administrator approves an agency

 

15  for the purposes of administering examinations, the prospective

 

16  an applicant may take the an examination administered by that

 

17  agency, and the testing agency shall forward the results to the

 

18  administrator for review and verification, or the prospective

 

19  applicant may take such the examination as may be developed and

 

20  given by the administrator, if any.

 

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

 

22  determined by the administrator.

 

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

 

24  approved by the administrator. The administrator shall forward

 

25  the results of an examination to the applicant or to the

 

26  applicant's authorized representative.

 

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


 

 1  certificate as a specialty or master mechanic as provided in

 

 2  under this act, and that person individual desires to become a

 

 3  specialty or master mechanic, he or she may make application

 

 4  apply for a mechanic trainee permit on the a form prescribed or

 

 5  approved by the administrator. The administrator shall issue or

 

 6  approve a mechanic trainee permit to an applicant who qualifies

 

 7  under the rules promulgated for that purpose. A person

 

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

 

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

 

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

 

11  electrical systems, or automobile and light truck brakes and

 

12  braking systems because he or she does not meet the requirements

 

13  of section 11(3)(a), (b), or (c), he or she may apply for a

 

14  mechanic trainee permit, on a form prescribed or approved by the

 

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

 

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

 

17  administrator in the 3-year period before the administrator

 

18  receives his or her application for the mechanic trainee permit

 

19  under this subsection.

 

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

 

21  described in this section:

 

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

 

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

 

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

 

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

 

26  supervision of a specialty or master mechanic during the full

 

27  time of his or her employment.


 

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

 

 2  mechanic trainee training program designed to provide the

 

 3  training necessary to become certified under this act. Instead of

 

 4  establishing and operating the program, the administrator may

 

 5  appoint schools, academies, or other similar establishments

 

 6  select 1 or more approved educational institutions to engage in

 

 7  mechanic trainee training. if those establishments, schools, or

 

 8  academies meet the criteria established by the administrator,

 

 9  after consultation with the department of education and the

 

10  United States department of labor, bureau of apprenticeship and

 

11  training. The establishments may be designated by the

 

12  administrator to engage in a continuing education and training

 

13  program for specialty and master mechanics.

 

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

 

15  approve a school, academy, or other similar establishment that

 

16  intends to provide training to mechanics or mechanic trainees

 

17  under this act.

 

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

 

19  academy, or similar establishment by the administrator under

 

20  subsection (1):

 

21        (a) An establishment seeking approval shall submit an

 

22  application for approval to the administrator. The administrator

 

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

 

24  application shall include supporting materials required by the

 

25  administrator.

 

26        (b) The administrator shall review an application and

 

27  supporting materials submitted under subdivision (a) and shall


 

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

 

 2  program offered to mechanics and mechanic trainees by the

 

 3  establishment.

 

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

 

 5  administrator shall consider all of the following factors:

 

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

 

 7  accreditation agency.

 

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

 

 9        (iii) Course objectives.

 

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

 

11  materials made available to students.

 

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

 

13        (vi) Qualifications of instructors and other staff.

 

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

 

15  maintained by the establishment.

 

16        (viii) Class size and location.

 

17        (ix) Quality of testing administered.

 

18        (x) Other related factors the administrator considers

 

19  relevant.

 

20        (3) The administrator may contract with approved educational

 

21  institutions to provide training or testing required under this

 

22  act.

 

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

 

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

 

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

 

26  and valid certificate issued by the administrator.

 

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


 

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

 

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

 

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

 

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

 

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

 

 6  respect, accepted motor vehicle repair industry standards.

 

 7  Compliance with published vehicle manufacturer, parts

 

 8  manufacturer, equipment manufacturer, or recognized aftermarket

 

 9  repair manual specifications creates a presumption that the

 

10  mechanic or mechanic trainee has followed accepted motor vehicle

 

11  repair industry standards.

 

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

 

13  determines that a specialty or master mechanic or mechanic

 

14  trainee has violated subsection (3), the administrator may, under

 

15  section 21, require that the specialty or master mechanic or

 

16  mechanic trainee do both of the following:

 

17        (a) Successfully complete a designated training course or

 

18  program as a prerequisite to continued certification.

 

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

 

20  procedures identified by the administrator until the training

 

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

 

22        Sec. 14. (1) A The owner of a motor vehicle repair facility

 

23  shall be registered by the owner register the facility by

 

24  providing all of the following information to the administrator,

 

25  on a registration form provided by the administrator, which shall

 

26  disclose the following information:accompanied by a registration

 

27  fee in an amount determined under section 30:


 

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

 

 2  facility, and for if the owner is a corporation, the date and

 

 3  place of incorporation.

 

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

 

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

 

 6  applicable.

 

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

 

 8  years of every officer, director, and partner, and each owner of

 

 9  10% or more of the facility, and any person occupying a similar

 

10  status or performing similar functions.all of the following, as

 

11  applicable:

 

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

 

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

 

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

 

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

 

16  a similar status or performs similar functions.

 

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

 

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

 

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

 

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

 

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

 

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

 

23  repairs.

 

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

 

25  performing repairs, including revenue from parts and goods sold

 

26  in conjunction with repairs, for the most recent federal income

 

27  tax year.


 

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

 

 2  facility utilized for performing repairs.

 

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

 

 4  the agent for the facility for service of process.

 

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

 

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

 

 7  other document used by the applicant in dealing with the public

 

 8  in the repair of motor vehicles, as specified by rule.including,

 

 9  but not limited to, all of the following:

 

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

 

11  customer's signature.

 

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

 

13  providing estimates, diagnoses, or repairs.

 

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

 

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

 

16  this act or rules promulgated under this act.

 

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

 

18  administrator. shall require.

 

19        (2) Subject to subsection (3), a person that is applying for

 

20  registration of a motor vehicle repair facility shall include a

 

21  properly executed bond, or a certificate of renewal of a surety

 

22  bond, with the registration form. All of the following apply to a

 

23  surety bond or renewal certificate under this subsection:

 

24        (a) If a certificate of renewal of a surety bond is

 

25  provided, the bond is considered renewed for the next succeeding

 

26  year in the same amount and with the same effect as an original

 

27  bond.


 

 1        (b) The principal amount of the bond shall be $50,000.00,

 

 2  issued by a surety approved by the administrator.

 

 3        (c) The bond shall indemnify or reimburse a customer or

 

 4  other person, or a governmental agency, for monetary loss caused

 

 5  by fraud or misrepresentation in the conduct of the motor vehicle

 

 6  repair business, whether the fraud or misrepresentation was made

 

 7  by the owner of the facility or by an employee, agent, or

 

 8  salesperson of the facility.

 

 9        (d) A surety shall make indemnification or reimbursement for

 

10  a monetary loss only after a final judgment based on fraud or

 

11  misrepresentation is entered in a court of record or adjudicated

 

12  by departmental administrative hearing against the facility.

 

13        (e) The bond shall also indemnify or reimburse this state

 

14  for any sales tax deficiency as provided in the general sales tax

 

15  act, 1933 PA 167, MCL 205.51 to 205.78, or use tax deficiency as

 

16  provided in the use tax act, 1937 PA 94, MCL 205.91 to 205.111,

 

17  for the year in which the bond is in force. The surety shall make

 

18  indemnification or reimbursement under this subdivision only

 

19  after final judgment has been entered in a court of record or

 

20  adjudicated by departmental administrative hearing against the

 

21  licensee.

 

22        (f) The aggregate liability of a surety shall not exceed the

 

23  principal amount of the bond.

 

24        (g) The surety may cancel a bond by giving written notice to

 

25  the administrator at least 30 days before the effective date of

 

26  the cancellation. A surety that meets the notice requirement

 

27  under this subdivision is not responsible for a breach of


 

 1  condition that occurs after the effective date of the

 

 2  cancellation.

 

 3        (3) An owner of a facility or other applicant for

 

 4  registration that has furnished satisfactory proof that a bond

 

 5  similar to the bond required under subsection (2) is executed and

 

 6  in force is exempt from the requirements of subsection (2).

 

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

 

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

 

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

 

10  motor vehicle repair facility shall renew its registration

 

11  annually and shall submit an application for renewal of the

 

12  registration, accompanied by a registration fee in an amount

 

13  determined under section 30, with the administrator at least 30

 

14  days before the expiration of its then-current registration.

 

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

 

16  after the expiration date of its then-current registration,

 

17  pending approval of the renewal application by the administrator,

 

18  if the renewal application and renewal fee are received by the

 

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

 

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

 

21  the facility may operate from the day on which the application

 

22  and appropriate fee are received by the administrator, pending

 

23  approval of the renewal application. The administrator shall

 

24  charge a fee of 1-1/2 times the normal registration fee if the

 

25  renewal application is received by the administrator after the

 

26  expiration date.

 

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


 

 1  motor vehicle repair facility shall file a single registration

 

 2  form for all of those facilities annually, which that along with

 

 3  the other information required by under this act, clearly

 

 4  indicates the location of and the individual in charge of each

 

 5  facility, . Fees shall be paid separately for each location.and

 

 6  shall pay a separate registration fee for each of those

 

 7  facilities.

 

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

 

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

 

10  registration fee is required and the facility shall not operate

 

11  until its registration application is approved by the

 

12  administrator and the fee is paid. If a name or address of the

 

13  motor vehicle repair facility changes, not involving a change of

 

14  ownership, and there is not a change of ownership, the facility

 

15  shall notify the administrator in writing of the change .

 

16  Appropriate and shall make the appropriate changes should be made

 

17  on the next renewal registration when due.

 

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

 

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

 

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

 

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

 

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

 

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

 

24  includes a sale or transfer of a partnership interest in the

 

25  owner of a facility if the owner is a partnership. The term does

 

26  not include the sale or transfer of stock in the owner of a

 

27  facility if the owner is a corporation.


 

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

 

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

 

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

 

 4  inspection by the administrator and other law enforcement

 

 5  officials during reasonable business hours. During reasonable

 

 6  business hours, the administrator and other law enforcement

 

 7  officials may make periodic unannounced inspections of the

 

 8  premises, parts records, and parts inventories of facilities.a

 

 9  facility.

 

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

 

11  an inspection is in violation of this act.shall not hinder,

 

12  obstruct, or otherwise prevent an inspection under this section

 

13  or section 18 or 18a.

 

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

 

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

 

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

 

17  shall maintain reasonable business records as are required by

 

18  rules promulgated to carry out this act. The records shall be for

 

19  the facility and ensure that those records are open for

 

20  reasonable inspection by the administrator or other law

 

21  enforcement officials. and shall be maintained by the facility

 

22  for not less than 5 years.As used in this subsection, "reasonable

 

23  business records" includes those documents and records described

 

24  in subsection (2)(a) to (c).

 

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

 

26  retain the records of the facility for the following time

 

27  periods:


 

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

 

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

 

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

 

 4  for at least 1 year after completion of the repair transaction:

 

 5        (i) Any document on which the facility required the

 

 6  customer's signature.

 

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

 

 8  providing an estimate, diagnosis, or repair.

 

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

 

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

 

11  convey the terms of the transaction.

 

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

 

13  promulgated under this act in connection with a repair

 

14  transaction.

 

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

 

16  she has received a complaint about a repair transaction performed

 

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

 

18  administrator, the owner shall retain records relating to the

 

19  transaction or otherwise relevant to the complaint until the date

 

20  the administrator advises the facility in writing that the

 

21  complaint is closed, or for 1 year after the completion of the

 

22  repair transaction, whichever is later.

 

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

 

24  facility of an obligation extending beyond 1 year, the owner

 

25  shall retain records or documents relating to that obligation for

 

26  at least the term of the obligation.

 

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


 

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

 

 2  document or record for at least 5 years.

 

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

 

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

 

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

 

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

 

 7  and address of the person from whom which the vehicle was

 

 8  acquired. If the vehicle is sold, the record shall contain the

 

 9  date of sale and the name and address of the purchaser. The

 

10  record shall indicate whether a certificate of title or salvage

 

11  certificate of title was obtained by the facility for the

 

12  vehicle. In the case of If the vehicle is a late model vehicle,

 

13  the facility shall maintain a record of the purchase or sale of

 

14  each major component part purchased or acquired shall be

 

15  maintained by the facility for the vehicle. The record shall

 

16  contain the date of purchase or acquisition of the part, a

 

17  description of the part, the identification number assigned to

 

18  the part, and the name and address of the person to or from whom

 

19  which the part was purchased, acquired, or sold. The

 

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

 

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

 

22  maintained in or attached to a police book as described in

 

23  section 251 of the Michigan vehicle code, Act No. 300 of the

 

24  Public Acts of 1949, being section 257.251 of the Michigan

 

25  Compiled Laws. The facility's 1949 PA 300, MCL 257.251. A

 

26  facility shall make its police book and the its records of

 

27  vehicle part sales, purchases, or acquisitions shall immediately


 

 1  be made immediately available for inspection by the administrator

 

 2  and other law enforcement officials after if a request for

 

 3  inspection is made.

 

 4        (5) (3) Nothing in this section shall This section does not

 

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

 

 6  vehicles or salvageable parts without a dealer's license under

 

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

 

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

 

 9  a registration, certificate, or trainee permit, the person to

 

10  whom which it was issued may obtain a duplicate copy upon

 

11  replacement by furnishing satisfactory proof of the loss,

 

12  destruction, or mutilation and paying the fee as determined by

 

13  rule.required under section 30. An application for a replacement

 

14  registration, certificate, or trainee permit shall include all of

 

15  the following information:

 

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

 

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

 

18  of the original registration, certificate, or permit.

 

19        Sec. 20. (1) Registrations and certificates including

 

20  mechanic trainee permits shall be renewed as determined by rule.A

 

21  certification as a specialty or master mechanic under this act

 

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

 

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

 

24  may annually renew his or her certification by submitting an

 

25  application for renewal, accompanied by the certification fee

 

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

 

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


 

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

 

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

 

 3  certification, pending approval of the renewal application by the

 

 4  administrator, if the renewal application and renewal fee are

 

 5  received by the administrator on or before the expiration date.

 

 6  If a renewal application and renewal fee are filed after the

 

 7  expiration date, the mechanic may temporarily engage in repairs

 

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

 

 9  appropriate fee are received by the administrator, pending

 

10  approval of the renewal application. The administrator shall

 

11  charge a fee of 1-1/2 times the normal renewal fee if the renewal

 

12  application is received by the administrator after the expiration

 

13  date.

 

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

 

15  and a hearing that a person has violated this act or a rule

 

16  promulgated pursuant to it, or engaged in an unfair or deceptive

 

17  method, act, or practice, under this act, directly or through an

 

18  agent or employee, he or she may issue an order requiring the

 

19  person to cease and desist from the unlawful act or practice

 

20  violation or to take such an affirmative action as that in the

 

21  judgment of the administrator will would carry out the purposes

 

22  of this act.

 

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

 

24  in writing that the public interest will be irreparably harmed by

 

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

 

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

 

27  cease and desist order, the administrator when possible by


 

 1  telephone or otherwise shall give notice of the proposal to issue

 

 2  a temporary cease and desist order to the facility. A temporary

 

 3  cease and desist order shall include in its terms a provision

 

 4  that upon on request the administrator shall hold a hearing shall

 

 5  be held within 30 days to determine whether or not the order

 

 6  shall become permanent.

 

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

 

 8  a registration, certificate, or mechanic trainee permit after

 

 9  notice and opportunity for a hearing take any administrative

 

10  action described in subsection (2) if the administrator

 

11  determines that the a facility, mechanic, or trainee, did or a

 

12  stockholder, officer, director, or partner of a facility that is

 

13  a corporation or partnership, does 1 or more of the following:

 

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

 

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

 

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

 

17  this act.

 

18        (c) Violated Violates a condition of probation.

 

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

 

20  by the customer.

 

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

 

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

 

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

 

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

 

25  from engaging in the trade or business of repairing motor

 

26  vehicles or from a violation of this act or a rule promulgated

 

27  under this act.


 

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

 

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

 

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

 

 4  revoking, or suspending a license issued to the officer,

 

 5  director, or partner as an individual.

 

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

 

 7  cease and desist order.

 

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

 

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

 

10  attempt to evade this act.

 

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

 

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

 

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

 

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

 

15  or 536a of the Michigan penal code, Act No. 328 of the Public

 

16  Acts of 1931, being sections 750.413, 750.415, 750.535, 750.535a,

 

17  and 750.536a of the Michigan Compiled Laws, 1931 PA 328, MCL

 

18  750.413, 750.415, 750.535, 750.535a, and 750.536a, or has been

 

19  convicted in another state of a violation of a law substantially

 

20  corresponding to 1 of those sections 413, 415, 535, 535a, 536,

 

21  and 536a of the Michigan penal code. , Act No. 328 of the Public

 

22  Acts of 1931.

 

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

 

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

 

25  determines that a facility, mechanic, or trainee, or a

 

26  stockholder, officer, director, or partner of a facility that is

 

27  a corporation or partnership, violates subsection (1):


 

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

 

 2  mechanic trainee permit.

 

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

 

 4  permit.

 

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

 

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

 

 7  trainee permit.

 

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

 

 9  permit.

 

10        (e) Censure the person that holds a registration,

 

11  certificate, or mechanic trainee permit.

 

12        (3) As an alternative or in addition to administrative

 

13  action under subsection (2) for a violation or alleged violation

 

14  of subsection (1), the director may, by written agreement with a

 

15  person that holds a registration, certificate, or mechanic

 

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

 

17  trainee permit on probation and include conditions of probation

 

18  in the agreement.

 

19        (4) The remedies and sanctions under this act are

 

20  independent and cumulative. The use of a remedy or sanction under

 

21  this act, including, but not limited to, administrative action by

 

22  the director under subsection (2) or an agreement for probation

 

23  under subsection (3), does not bar other lawful remedies and

 

24  sanctions against a person and does not limit a person's criminal

 

25  or civil liability under law.

 

26        Sec. 30. (1) The registration fee for the registration of a

 

27  facility shall be is determined by a sliding fee scale that is


 

 1  based upon on the gross annual revenue of the facility, as

 

 2  follows:

 

 

     GROSS ANNUAL REVENUE                                  FEE

under $5,000.00................................        $  25.00

$5,001.00 to $15,000.00........................           50.00

$15,001.00 to $25,000.00.......................           75.00

$25,001.00 to $40,000.00.......................          100.00

$40,001.00 to $60,000.00.......................          125.00

$60,001.00 to $80,000.00.......................          150.00

10 $80,001.00 to $100,000.00......................          175.00

11 $100,001.00 to 120,000.00......................          200.00

12 $120,001.00 to 140,000.00......................          225.00

13 $140,001.00 to $160,000.00.....................          250.00

14 $160,001.00 to $180,000.00.....................          275.00

15 $180,001.00 to $200,000.00.....................          300.00

16 $200,001.00 to $220,000.00.....................          325.00

17 $220,001.00 to $240,000.00.....................          350.00

18 $240,001.00 to $260,000.00.....................          375.00

19 $260,001.00 to $280,000.00.....................          400.00

20 $280,001.00 to $300,000.00.....................          425.00

21 $300,001.00 to $320,000.00.....................          450.00

22 $320,001.00 to $340,000.00.....................          475.00

23 over $340,000.00...............................          500.00

 

 

24        (2) The certificate fee for the certification of specialty

 

25  and master mechanics and the permit fee of mechanic trainees

 

26  shall be set by rule.

 

27        (3) The fee for the renewal of the registration of a

 

28  facility, certification of a specialty or master mechanic,

 


 1  including a permit of a mechanic trainee shall be set by rule.

 

 2  The effective length of original and renewal registrations,

 

 3  certificates, and permits shall be set by rule and shall not be

 

 4  less than 1 year in duration. The renewal fee for a registration,

 

 5  certificate, or permit that has expired shall be 1-1/2 times the

 

 6  fee for the renewal of a registration, certificate, or permit

 

 7  that has not expired.

 

 8        (2) The examination, application, certificate, and renewal

 

 9  fees for the certification of mechanics are as follows:

 

10        (a) Each certification examination administered by the

 

11  administrator, $6.00.

 

12        (b) Application for original certificate, $25.00. However,

 

13  any of the following may apply for an original specialty or

 

14  master mechanic certificate without paying a fee under this

 

15  subdivision:

 

16        (i) An individual who is currently certified by the

 

17  administrator in at least 1 repair category may apply for

 

18  certification in 1 or more additional repair categories without

 

19  paying a fee under this subdivision.

 

20        (ii) A mechanic trainee who presents proof that he or she has

 

21  successfully completed 30 or more hours of continuing mechanic

 

22  education courses given by an approved educational institution

 

23  during the 5-year period immediately preceding the date the

 

24  trainee submits the application for certification.

 

25        (iii) An individual who served in the armed forces; was

 

26  separated from that service; and provides to the administrator a

 

27  form DD214, a form DD215, or any other form that is satisfactory

 


 1  to the administrator that demonstrates that the individual was

 

 2  separated from that service, with an honorable character of

 

 3  service or under honorable conditions (general) character of

 

 4  service.

 

 5        (c) Application for renewal certificate, $20.00.

 

 6        (d) Replacement certificate, $5.00.

 

 7        (3) The permit fees for a mechanic trainee are as follows:

 

 8        (a) Application for a mechanic trainee permit, $20.00.

 

 9  However, either of the following may apply for a mechanic trainee

 

10  permit without paying a fee under this subdivision:

 

11        (i) An individual who is currently certified by the

 

12  administrator in at least 1 repair category.

 

13        (ii) A student who is currently enrolled in a vocational

 

14  education or special education program that includes employment

 

15  by a motor vehicle repair facility; that is approved by the

 

16  department of education; and for which the student receives

 

17  credit toward the award of a high school or special education

 

18  diploma.

 

19        (b) Replacement of trainee permit, $5.00.

 

20        (4) As used in this section:

 

21        (a) "Armed forces" means that term as defined in section 2

 

22  of the veteran right to employment services act, 1994 PA 39, MCL

 

23  35.1092.

 

24        (b) "Gross annual revenue" means a facility's gross revenue

 

25  from performing repairs, including parts and goods sold in

 

26  conjunction with repairs, in its most recently completed federal

 

27  income tax year, or, if the facility has not been in business for

 


 1  a complete federal income tax year, the facility's reasonably

 

 2  anticipated gross revenue for its first full federal income tax

 

 3  year of operation.

 

 4        Sec. 32. (1) A Before beginning repair work, a motor vehicle

 

 5  repair facility shall give to the customer a written estimate ,

 

 6  itemizing that itemizes as closely as possible the price for

 

 7  labor and parts necessary for a specific job prior to the

 

 8  commencement of the work. A facility shall not charge for work

 

 9  done or parts supplied in excess of the estimated price, or in

 

10  excess of the limit stated by the customer in the waiver provided

 

11  for described in subsection (3), without the knowing written or

 

12  oral consent of the customer, which shall be obtained at some

 

13  time after it is determined the facility determines that the

 

14  estimated price or stated limit is insufficient and before any

 

15  work that is not estimated or is in excess of the limit is done

 

16  or the parts that are not estimated or are in excess of the limit

 

17  are supplied. If a waiver is not signed as provided in under

 

18  subsection (3) and the estimated price is exceeded by not more

 

19  than 10% or $10.00 $50.00, whichever is lesser, the facility is

 

20  not required to obtain the written or oral consent of the

 

21  customer for the excess charge need not be obtained unless

 

22  specifically requested by the customer. This section shall not be

 

23  construed as requiring a motor vehicle repair facility, mechanic,

 

24  or mechanic trainee to give a written estimated price if he the

 

25  facility, mechanic, or trainee agrees not to perform the

 

26  requested repair. If the actual cost of a repair is less than the

 

27  agreed upon on estimated cost, the customer shall pay only the

 


 1  actual cost.

 

 2        (2) If the a facility or mechanic informs the customer that

 

 3  the price for repair will exceed the written estimate or the

 

 4  stated limit in the waiver and the customer does not want the

 

 5  repair work performed, then the customer is liable responsible

 

 6  for all reasonable costs to return the vehicle to the condition

 

 7  it was when in at the time it entered the facility. These The

 

 8  facility shall indicate those costs should be indicated in

 

 9  written form, itemizing the costs as closely as possible with a

 

10  copy given to the customer. The cost of a diagnosis to be made by

 

11  the facility, whether or not the customer authorizes the facility

 

12  to perform those repairs, to be performed, shall be contained

 

13  included in the written estimate before the diagnosis is

 

14  undertaken.

 

15        (3) If a customer initiates a request for service or parts

 

16  for the repair of a motor vehicle without receiving a written

 

17  estimate and voluntarily agrees to pay all reasonable costs of

 

18  repair up to an amount stated by the customer, a repair facility

 

19  may obtain from the customer a waiver of his or her right to

 

20  receive a prior estimate of repair costs. The waiver shall be in

 

21  14 point or larger bold capital type face and executed with 1

 

22  copy to the customer who is requesting the repairs. and The

 

23  waiver shall read as follows:

 

24        "I, __________, voluntarily request authorize __________ to

 

25  provide services or parts in the repair of the below described

 

26  motor vehicle without receiving an estimate of repair costs. By

 

27  signing this form, I understand that I will give up my right to:

 


 1        1. Receive a written estimate of the cost for repairs;

 

 2        2. Approve in advance any repairs or costs with a total cost

 

 3  under $ __________; and

 

 4        3. Refuse to pay for repairs with a total cost less than the

 

 5  amount stated above.

 

 6        The facility may exceed the amount stated above only after I

 

 7  give my written or oral approval.

 

 8        Motor vehicle description:

 

 9        Customer signature _______________

 

10        Date __________

 

11        Time __________".

 

12        (4) This waiver shall not be effective unless A waiver

 

13  described in subsection (3) is not effective unless it is given

 

14  by the customer voluntarily and with full knowledge of the

 

15  implications of the waiver. A motor vehicle repair facility or

 

16  anyone in its employ shall not make use of the a waiver described

 

17  in subsection (3) in an attempt to evade this act.

 

18        (5) A motor vehicle repair facility shall at all times

 

19  display, in a place and manner conspicuous to its customers, a

 

20  current and valid certificate of repair facility registration

 

21  issued by the administrator.

 

22        (6) A motor vehicle repair facility shall include its

 

23  registration number, as assigned by the administrator, on each

 

24  copy of any instrument, form, contract, or other document used by

 

25  the applicant in dealing with the public in the repair of motor

 

26  vehicles, including, but not limited to, all of the following:

 

27        (a) Any document on which the facility routinely requires

 


 1  the customer's signature.

 

 2        (b) Any document used by the facility in connection with

 

 3  providing estimates, diagnoses, or repairs.

 

 4        (c) Any invoices, warranties, or waivers.

 

 5        (d) Any other document used by the facility to comply with

 

 6  this act or rules promulgated under this act.

 

 7        Sec. 32a. (1) A motor vehicle repair facility shall display

 

 8  a consumer information sign. The sign shall contain 11 lines of

 

 9  lettering worded substantially as follows:

 

10  THIS ESTABLISHMENT IS REGISTERED WITH THE MICHIGAN DEPARTMENT OF

 

11  STATE AND IS REQUIRED BY LAW TO FURNISH A CUSTOMER WITH A:

 

12  (1) WRITTEN ESTIMATE IF REPAIRS WILL BE $50 OR MORE OR ON REQUEST

 

13  IF REPAIRS WILL BE LESS THAN $50.

 

14  (2) DETAILED STATEMENT OF LABOR AND PARTS SUPPLIED. QUESTIONS

 

15  REGARDING SERVICE WORK SHOULD BE DIRECTED FIRST TO THE MANAGER OF

 

16  THIS REPAIR FACILITY.

 

17  MICHIGAN DEPARTMENT OF STATE

 

18  P.O. BOX ________, LANSING, MI 489____

 

19  TOLL-FREE TELEPHONE: 800 _________________

 

20  MON.-FRI., 8:30 A.M. - 4:30 P.M.

 

21        (2) All of the following apply to a sign required under

 

22  subsection (1):

 

23        (a) It shall be rectangular in shape and at least 28 inches

 

24  high by 24 inches wide.

 

25        (b) It shall be constructed of durable material.

 

26        (c) The background of the sign shall be white.

 

27        (d) Print and other markings on the sign shall be black.

 


 1        (e) The wording of the sign shall be printed in bold, block,

 

 2  capital letters that are 1-inch high and 1/2-inch wide in lines

 

 3  1, 2, 8, 9, and 10; 3/4-inch high and 1/2-inch wide in line 11;

 

 4  and 1/2-inch high and 3/8-inch wide in lines 3 to 7.

 

 5        (f) The sign shall be laid out in a clearly legible fashion,

 

 6  with the lettering arranged so that there is at least a 1/8-inch

 

 7  space between any 2 letters within a line and at least a 1/2-inch

 

 8  space between any 2 lines.

 

 9        (g) The sign shall include the address and telephone numbers

 

10  of the department of state in lines 9 and 10, as provided by the

 

11  administrator.

 

12        (3) All of the following apply to the display of a sign

 

13  required under subsection (1) by a motor vehicle repair facility:

 

14        (a) The facility shall display the sign at each entrance to

 

15  the facility and at each cashier station. As used in this

 

16  subsection, "entrance to the facility" means each location in or

 

17  about the facility where customer repair service orders are

 

18  initially executed.

 

19        (b) The facility shall ensure that the sign is unobstructed

 

20  and clearly and readily visible to customers.

 

21        (c) If the facility is not enclosed or is a mobile facility,

 

22  the facility shall ensure that it is placed in an area where it

 

23  is easily noticeable to customers who are transacting business

 

24  with the facility.

 

25        (4) The administrator may require that a facility replace

 

26  any sign that does not meet all of the requirements of this

 

27  section or is no longer readily legible, or that the facility

 


 1  reposition any sign that is improperly displayed.

 

 2        Sec. 33. (1) The administrator shall determine by rule the

 

 3  time and manner in which the A motor vehicle repair facility

 

 4  shall return replaced parts to the customer at the time of the

 

 5  completion of the work. This requirement does not apply to parts

 

 6  exempted the repair work is completed. All of the following apply

 

 7  to the obligation to return replaced parts under this subsection:

 

 8        (a) A facility is not required to return any of the

 

 9  following replaced parts to the customer:

 

10        (i) Parts that are exempted from the return requirement by

 

11  the administrator because of size, weight, or similar factors.

 

12  from this requirement, and except for parts However, a facility

 

13  shall not prevent a customer from removing any heavy or large

 

14  part, by the customer's own means and at his or her expense.

 

15        (ii) Subject to subsection (3), parts that the motor vehicle

 

16  repair facility or mechanic is required to return to the

 

17  manufacturer or distributor under a warranty or exchange

 

18  arrangement. If the parts must be returned to the manufacturer or

 

19  distributor, the facility or mechanic shall offer to show and

 

20  upon acceptance of the offer or upon request shall show the parts

 

21  to the customer upon completion of the work, except the facility

 

22  shall not be required to show a replacement part when a charge is

 

23  not being made for the replacement thereof.

 

24        (iii) For reasons of safety, a gasoline tank or any other

 

25  container-type part that was filled with or was otherwise in

 

26  appreciable contact with flammable fuels, unless that part is

 

27  rendered nonflammable.

 


 1        (b) If any returned part presents an actual danger of

 

 2  flammability or explosiveness, the facility shall clearly inform

 

 3  the customer of that danger.

 

 4        (c) When the repair work is completed, if requested by the

 

 5  customer, the facility shall reasonably clean the replaced parts

 

 6  that are to be returned or inspected by the customer. The

 

 7  facility shall place portable parts in a suitable container. The

 

 8  facility shall store any parts that it identifies as not portable

 

 9  in a suitable place in the facility for the customer's

 

10  inspection.

 

11        (d) If a facility charges a fee to a customer in connection

 

12  with the return of replaced parts, the facility must disclose

 

13  that fee to the customer in writing before the customer engages

 

14  the facility to replace the part.

 

15        (2) A customer shall be informed of his right to receive or

 

16  see inspect replaced parts as provided in this section prior to

 

17  the customer executing any document or engaging before the

 

18  customer executes any document or engages the facility or

 

19  mechanic for the work. The information shall be given Subject to

 

20  subsection (5), the facility shall provide this information to

 

21  the customer by providing the following notice to the customer,

 

22  printed or displayed on the face of any contract, work order

 

23  form, or sign, or other document evidencing that evidences the

 

24  engagement of the facility or mechanic or by separate written

 

25  document, in at least 12 point boldface type 12-point boldfaced

 

26  letters that are at least 4 points larger that the principal size

 

27  of the letters in that document, or providing the notice in a

 


 1  separate written document in at least 12-point, boldfaced,

 

 2  capital letters, as follows:

 

 3        YOU ARE ENTITLED BY LAW TO THE RETURN OF ALL PARTS REPLACED,

 

 4  EXCEPT THOSE WHICH ARE TOO HEAVY OR LARGE, AND THOSE REQUIRED TO

 

 5  BE SENT BACK TO THE MANUFACTURER OR DISTRIBUTOR BECAUSE OF

 

 6  WARRANTY WORK OR AN EXCHANGE AGREEMENT. YOU ARE ENTITLED TO

 

 7  INSPECT THE PARTS WHICH CANNOT BE RETURNED TO YOU.

 

 8        (3) If a facility is obligated to return a replaced part to

 

 9  the manufacturer or a distributor under a warranty agreement, or,

 

10  subject to subsection (4), under an exchange agreement, the

 

11  facility is not required to return that part to the customer.

 

12  However, the facility or mechanic shall offer the customer an

 

13  opportunity to inspect the replaced part. If the customer accepts

 

14  the offer to inspect the part, or otherwise requests to inspect

 

15  the part, the facility or mechanic shall allow the customer to

 

16  inspect the part when the repair work is completed. A facility is

 

17  not required to show a replacement part to a customer if the

 

18  replacement is made without charge to the customer.

 

19        (4) If replacement of a part is contingent on the facility

 

20  keeping the part under an exchange agreement, the facility shall

 

21  explain, in a manner understandable to the customer, the precise

 

22  terms of the exchange agreement, including if applicable a

 

23  disclosure of the price to the customer if he or she wishes to

 

24  reclaim the part. If a customer raises a question or dispute with

 

25  the facility within 2 business days after the delivery of the

 

26  repaired vehicle to the customer and the dispute involves an

 

27  exchange part for which the facility required the customer pay a

 


 1  deposit in the amount of the facility's obligation, the facility

 

 2  shall refund the deposit to the customer if he or she returns the

 

 3  part to the facility.

 

 4        (5) A facility that displays the notice described in

 

 5  subsection (2) on a clearly legible sign with lettering at least

 

 6  1 inch high, conspicuously displayed in the part of the facility

 

 7  where customers routinely contract for repairs, is not required

 

 8  to provide the notice to a customer in the form of a document

 

 9  described in subsection (2).

 

10        (6) All of the following apply to the disposition of

 

11  replaced parts that are not returned to the customer:

 

12        (a) Unless subdivision (b) applies, the facility shall not

 

13  dispose of the parts for at least 2 business days after the

 

14  customer takes possession of the repaired vehicle, unless the

 

15  customer has specifically authorized immediate disposition of the

 

16  parts.

 

17        (b) If a customer questions or disputes repairs performed by

 

18  a facility or the charges for those repairs within 2 days after

 

19  the customer takes possession of the repaired vehicle, the

 

20  facility shall not dispose of the replaced parts until the

 

21  question or dispute is resolved. If the dispute involves the

 

22  replaced part, the facility shall, in the presence of the

 

23  customer, immediately affix to the part a permanent mark

 

24  sufficient to identify the part.

 

25        (7) If requested by a customer, a facility shall explain

 

26  exactly why a replaced part is defective or nonfunctional, or

 

27  otherwise why it was replaced.

 


 1        (8) (3) The motor vehicle repair facility shall display a

 

 2  clearly legible sign in a conspicuous place at the entrance of

 

 3  the facility indicating that indicates that customers may make

 

 4  inquiries concerning repair service or complaints may be made to

 

 5  the administrator and shall contain states the address and

 

 6  telephone number of the department.

 

 7        Sec. 34a. Unless otherwise requested by the customer, the

 

 8  requirement to furnish a written estimate shall under section 32

 

 9  does not apply to repair work performed by a motor vehicle repair

 

10  facility when if the total cost for services and parts is less

 

11  than $20.00. Nothing in this, or any other $50.00. This section ,

 

12  shall cause any repair facility to fail does not apply to or

 

13  limit a facility's obligation to furnish to the customer a final

 

14  invoice for the repairs performed and the parts supplied.written

 

15  statement under section 34 that includes the actual cost of

 

16  repairs.

 

17        Sec. 36. A facility that violates this act or who, in a

 

18  course of dealing as set forth in this act or rules, engages in

 

19  an unfair or deceptive method, act, or practice, is liable as

 

20  provided in this act, to a person who that suffers damage or

 

21  injury as a result thereof of that violation, in an amount equal

 

22  to the damages plus reasonable attorney fees and costs. If the

 

23  damage or injury to the person occurs as the result of a wilful

 

24  and flagrant violation of this act, the person shall recover

 

25  double the damages plus reasonable attorney fees and costs from

 

26  the facility.

 

27        Enacting section 1. Section 39 of the motor vehicle service

 


 1  and repair act, 1974 PA 300, MCL 257.1339, is repealed.

 

 2        Enacting section 2. This amendatory act takes effect 90 days

 

 3  after the date it is enacted into law.