HOUSE BILL NO. 5149

A bill to amend 1974 PA 300, entitled

"Motor vehicle service and repair act,"

by amending sections 7e and 32 (MCL 257.1307e and 257.1332), section 7e as added and section 32 as amended by 2016 PA 430.

the people of the state of michigan enact:

Sec. 7e. A motor vehicle repair facility that is subject to this act, or a person that is an owner or operator of a motor vehicle repair facility that is subject to this act, shall not, directly or through an agent or employee, do any of the following:

(a) Unless legally waived by the customer, fail to give the customer a written estimate that includes any applicable fees and anticipated storage charges before beginning work on a motor vehicle.

(b) Charge for work done or parts supplied in excess of the estimated price without the knowing consent, orally or in writing, of the customer.

(c) Fail to give a customer an estimate for the cost, if any, of reassembly, disassembly, or diagnosis.

(d) Fail to inform a customer, at a time before the customer executes a document or engages the facility for the work, by the use of a notice required under section 33, of his or her the customer's right to receive or inspect replaced parts for which he or she the customer will be charged in the repair of his or her the customer's motor vehicle.

(e) Fail to retain a customer waiver with the records retained by the facility concerning the transaction.

(f) Charge a customer storage charges while the vehicle is under repair or if there is a dispute concerning repair charges. If a delay in repairs is caused by a lack of parts, a facility may charge for storage after informing the customer of the approximate length of the anticipated delay and of the daily storage charge rate and obtaining the customer's consent to the delay and the storage charges.

(g) Fail to comply with the truth in lending act, 15 USC 1601 to 1667f, and the retail installment sales act, 1966 PA 224, MCL 445.851 to 445.873, if the customer finances repairs through the facility.

(h) Fail in practice to comply with advertised or stated payment policies.

(i) Conspire with another to fix prices.

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

(k) Fail to notify a customer of an exchange agreement and charges for exchange parts if the customer wishes to have those parts returned.

(l) Fail to disclose, on the customer's request, the method used by a facility to compute labor charges.

Sec. 32. (1) Before beginning repair work, a motor vehicle repair facility shall give to the customer a written estimate that itemizes as closely as possible the price for labor and parts necessary for the work and any applicable fees and charges for the proposed work, not including any applicable sales taxes. A facility shall not charge for work done, or parts supplied, or fees and charges in excess of the estimated price, or in excess of the limit stated by the customer in the waiver described in subsection (3), without the knowing written or oral consent of the customer, obtained at some time after the facility determines that the estimated price or stated limit is insufficient and before any work that is not estimated or is in excess of the limit is done or the parts that are not estimated or are in excess of the limit are supplied. If a waiver is not signed under subsection (3) and the estimated price is exceeded by not more than 10% or $50.00, whichever is lesser, the facility is not required to obtain the written or oral consent of the customer for the excess charge unless specifically requested by the customer. This section shall does not be construed as requiring require a motor vehicle repair facility, mechanic, or mechanic trainee to give a written estimated price if the facility, mechanic, or trainee agrees not to perform the requested repair. If the actual cost of a repair is less than the agreed on estimated cost, the customer shall pay only the actual cost.

(2) If a facility or mechanic informs the customer that the price for repair will exceed the written estimate or the stated limit in the waiver and the customer does not want the repair work performed, the customer is responsible for all reasonable costs to return the vehicle to the condition it the vehicle was in at the time it the vehicle entered the facility. The facility shall indicate those costs in written form, itemizing the costs as closely as possible with a copy given to the customer. The cost of a diagnosis made by the facility, whether or not the customer authorizes the facility to perform those repairs, shall must be included in the written estimate before the diagnosis is undertaken.

(3) If a customer initiates a request for service or parts for the repair of a motor vehicle without receiving a written estimate and voluntarily agrees to pay all reasonable costs of repair up to an amount stated by the customer, a facility may obtain from the customer a waiver of his or her the customer's right to receive a prior estimate of repair costs. The waiver shall must be in 14 point or larger bold capital type face and executed with 1 copy to the customer who is requesting the repairs. The waiver shall must read as follows:

"I, __________, voluntarily authorize __________ to provide services or parts in the repair of the below described motor vehicle without receiving an estimate of repair costs. By signing this form, I understand that I will give up my right to:

1. Receive a written estimate of the cost for repairs;

2. Approve in advance any repairs or costs with a total cost under $ __________; and

3. Refuse to pay for repairs with a total cost less than the amount stated above.

The facility may exceed the amount stated above only after I give my written or oral approval.

Motor vehicle description:

Customer signature _______________

Date __________

Time __________".

(4) A waiver described in subsection (3) is not effective unless it the waiver is given by the customer voluntarily and with full knowledge of the implications of the waiver. A motor vehicle repair facility or anyone in its the facility's employ shall not make use of a waiver described in subsection (3) in an attempt to evade this act.

(5) A motor vehicle repair facility shall at all times display, in a place and manner conspicuous to its the facility's customers, a current and valid certificate of repair facility registration issued by the administrator.

(6) A motor vehicle repair facility shall include its the facility's registration number, as assigned by the administrator, on each copy of any instrument, form, contract, or other document used by the applicant in dealing with the public in the repair of motor vehicles, including, but not limited to, all of the following:

(a) Any document on which the facility routinely requires the customer's signature.

(b) Any document used by the facility in connection with providing estimates, diagnoses, or repairs.

(c) Any invoices, warranties, or waivers.

(d) Any other document used by the facility to comply with this act or rules promulgated under this act.