Von Tobel, Freeman, Hickey, Bache, Giunchigliani, Krenzer, Nolan, Mortenson, Price, Evans, Dini, Segerblom, Williams, Goldwater, de Braga, Berman, Neighbors, Amodei, Lee, Braunlin, Gustavson, Koivisto, Marvel, Humke and Close
May 9, 1997
____________
Referred to Committee on Commerce
SUMMARY--Requires garages that repair motor vehicles to register with department of motor vehicles and public safety and creates advisory board on repair of motor vehicles. (BDR 43-987)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: Yes.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to motor vehicles; requiring persons who operate garages that repair motor vehicles to register with the department of motor vehicles and public safety; creating an advisory board on the repair of motor vehicles; requiring the consumer affairs division of the department of business and industry and the department of motor vehicles to cooperate for certain purposes and to provide certain information to the general public concerning the repair of motor vehicles; providing a penalty; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 487 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 12, inclusive, of this act.
Sec. 2. As used in sections 2 to 12, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 to 6, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 3. "Division" means the consumer affairs division of the department of business and industry.
Sec. 4. 1. "Garage" means a business establishment, sole proprietorship, firm, corporation, association or other legal entity that performs any of the following services on motor vehicles:
(a) Repair of the:
(1) Engine;
(2) Brake system;
(3) Transmission system;
(4) Drivetrain system;
(5) Heating and air conditioning system;
(6) Cooling system; or
(7) Muffler and exhaust system;
(b) Engine tune up;
(c) Diagnostic testing;
(d) Alignment; or
(e) Oil change and lubrication.
2. "Garage" does not include a business establishment, sole proprietorship, firm, corporation, association or other legal entity that does not perform services on motor vehicles for members of the general public.
Sec. 5. "Garageman" means a person who:
1. Owns, operates, controls or manages a garage; or
2. Is authorized to repair motor vehicles at a garage that is owned, operated, controlled or managed by another person.
Sec. 6. "Motor vehicle" means:
1. A passenger car as defined in NRS 482.087;
2. A mini motor home as defined in NRS 482.066;
3. A motor home as defined in NRS 482.071;
4. A recreational vehicle as defined in NRS 482.101; and
5. A motortruck as defined in NRS 482.073 if the gross weight of the vehicle is 10,000 pounds or less.
Sec. 7. The provisions of sections 2 to 10, inclusive, of this act do not apply to:
1. An authorized inspection station, authorized maintenance station, authorized station or fleet station that is licensed pursuant to the provisions of NRS 445B.700 to 445B.845, inclusive, for actions taken within the scope of that license.
2. A body shop that is licensed pursuant to the provisions of NRS 487.600 to 487.690, inclusive, for actions taken within the scope of that license.
3. A service station that is exclusively engaged in the business of selling motor vehicle fuel, lubricants or goods unrelated to the repair of motor vehicles.
Sec. 8. 1. On and after January 1, 1998, a garageman shall register with the department for authorization to operate a garage.
2. An application for registration must be on a form provided by the department. The application must include:
(a) The name of the applicant, including each name under which he intends to do business;
(b) The complete street address of each location from which the applicant will be conducting business, including a designation of the location that will be his principal place of business;
(c) A copy of the business license for each garage operated by the applicant if the county or city in which the applicant operates a garage requires such a license;
(d) The type of repair work offered at each garage operated by the applicant;
(e) The number of mechanics employed at each garage operated by the applicant; and
(f) Any other information required by the department.
3. For each garage operated by an applicant, the department shall charge a fee of $25 for the issuance or renewal of registration. If an applicant operates more than one garage, he may file one application if he clearly indicates on the application the location of each garage operated by the applicant and each person responsible for the management of each garage.
4. Except as otherwise provided in section 11 of this act, all fees collected pursuant to this section must be deposited with the state treasurer to the credit of the account for regulation of salvage pools, automobile wreckers, body shops and garages.
5. An applicant for registration or renewal of registration shall notify the department of any material change in the information contained in his application for registration or renewal within 10 days after his knowledge of the change.
Sec. 9. 1. If the department receives an application for registration that contains the information required by section 8 of this act, it shall issue to the applicant a certificate of registration for each garage operated by the applicant. The certificate must contain the applicant's name, residential address, the name under which his business is to be conducted, the business address, the registration number for the garage and the toll-free telephone number for consumer information and assistance established by the division pursuant to section 25 of this act.
2. A certificate of registration is valid for 1 year after the date of issuance. A garageman may renew his registration by submitting to the department:
(a) An application for renewal on a form provided by the department; and
(b) The fee for renewal set forth in section 8 of this act.
Sec. 10. A garageman shall:
1. Display a sign, in a conspicuous place at each garage operated by him, that contains the toll-free telephone number for consumer information and assistance established by the division pursuant to section 25 of this act; and
2. Comply with the provisions of NRS 597.480 to 597.590, inclusive.
Sec. 11. 1. The advisory board on the repair of motor vehicles is hereby created.
2. The advisory board consists of 12 members as follows:
(a) One member who represents motor vehicle dealers who sell motor vehicles pursuant to a franchise, appointed by the governor;
(b) One member who represents facilities that test and inspect motor vehicles for the control of emissions, appointed by the governor;
(c) One member who represents service stations that sell motor vehicle fuel, appointed by the governor;
(d) One member who represents the consumer affairs division of the department of business and industry, appointed by the governor;
(e) One member who represents the department of motor vehicles and public safety, appointed by the governor;
(f) Two members who represent the motor vehicle repair industry, appointed by the governor;
(g) One member of the senate, appointed by the majority leader of the senate;
(h) One member of the assembly, appointed by the speaker of the assembly;
(i) Two members of the general public, one of whom must be appointed by the senate majority leader and one of whom must be appointed by the speaker of the assembly; and
(j) One member who represents the body shop industry, appointed by the governor.
3. The members of the advisory board shall select a chairman and a vice chairman from among their membership annually.
4. Each legislator who is a member of the advisory board is entitled to receive:
(a) Except during a regular or special session of the legislature, the compensation provided for a majority of the members of the legislature during the first 60 days of the preceding regular session for each day or portion of a day during which he attends a meeting of the advisory board; and
(b) The per diem allowance and travel expenses provided for state officers and employees generally.
The compensation, per diem allowance and travel expenses must be paid from the legislative fund.
5. Each nonlegislative member of the advisory board serves without compensation but is entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally. The per diem allowance and travel expenses must be paid by the department from the money collected by the department pursuant to section 8 of this act for the issuance or renewal of a certificate of registration to operate a garage.
6. A vacancy in the membership of the advisory board must be filled for the remainder of the unexpired term in the same manner as the original appointment.
7. The department shall provide the advisory board with administrative support.
Sec. 12. The advisory board on the repair of motor vehicles shall:
1. Meet at the call of the chairman at least two times each year;
2. Make recommendations to the department and the legislature for the training and certification of garagemen;
3. Study the need for improving the regulation of practices that govern the repair of motor vehicles, including, without limitation, the review of estimates of repair, laws governing deceptive trade practices relating to the repair of motor vehicles and the fees for the licensure of garages;
4. Identify and analyze any problems within the industry of motor vehicle repair and make recommendations to the department, the division and the legislature to address the problems through governmental regulation or private industry, or both;
5. Provide information to the division concerning the development of a program to provide information to the general public pursuant to the provisions of section 25 of this act;
6. Advise the division and the department on methods to investigate consumer complaints relating to the repair of motor vehicles;
7. Identify, study and monitor the available sources within each community for mediation and arbitration of such complaints and report its findings and recommendations to the division for the establishment of an effective and complete system of mediation and arbitration; and
8. Submit to the director of the legislative counsel bureau for transmission to the 70th session of the Nevada legislature a report that summarizes the activities of the advisory board and any recommendations made by the advisory board.
Sec. 13. NRS 487.070 is hereby amended to read as follows:
487.0701. The department may approve or reject the application and, if approved, shall issue to the applicant:
(a) A license containing the applicant's name, address, the name under which the business is to be conducted, the business address, and a distinguishing number assigned to the applicant.
(b) A card which:
(1) Contains the information specified in paragraph (a);
(2) Includes a picture of the licensee; and
(3) Clearly identifies the holder of the card as a licensed automobile wrecker.
2. A licensee may obtain one or two cards for his business. The department shall charge a fee of $50 for each card issued. Fees collected by the department pursuant to this subsection must be deposited with the state treasurer to the credit of the account for regulation of salvage pools, automobile wreckers , [and] body shops [.] and garages.
3. A license expires on December 31 of the year for which it is issued.
4. A licensee may renew his license by submitting to the department:
(a) A completed application for renewal upon a form supplied by the department; and
(b) The fee for renewal of a license provided in NRS 487.080.
Sec. 14. NRS 487.080 is hereby amended to read as follows:
487.0801. The fee for issuance or renewal of an automobile wrecker's license is $300.
2. Fees collected must be deposited with the state treasurer to the credit of the account for regulation of salvage pools, automobile wreckers , [and] body shops [.] and garages.
Sec. 15. NRS 487.450 is hereby amended to read as follows:
487.4501. The department shall charge and collect a fee of $300 for the issuance or renewal of a license to operate a salvage pool.
2. Fees collected by the department pursuant to this section must be deposited with the state treasurer to the credit of the account for regulation of salvage pools, automobile wreckers , [and] body shops [,] and garages which is hereby created in the state general fund. Money in the account may be used only for the administration of NRS 487.002, 487.045 to 487.200, inclusive, and 487.400 to 487.690, inclusive [.] , and sections 2 to 10, inclusive, of this act.
Sec. 16. NRS 487.475 is hereby amended to read as follows:
487.4751. A card authorizing a dealer of new or used motor vehicles or a rebuilder to bid to purchase a vehicle from an operator of a salvage pool must contain:
(a) The dealer's or rebuilder's name and signature;
(b) His business name;
(c) His business address;
(d) His business license number issued by the department; and
(e) A picture of the dealer or rebuilder.
2. A dealer or rebuilder may obtain one or two cards for his business.
3. The department shall charge a fee of $50 for each card issued.
4. A card issued pursuant to this section expires on December 31 of the year in which it was issued. The dealer or rebuilder must submit to the department an application for renewal accompanied by a renewal fee of $25 for each card. The application must be made on a form provided by the department and contain such information as the department requires.
5. Fees collected by the department pursuant to this section must be deposited with the state treasurer to the credit of the account for regulation of salvage pools, automobile wreckers , [and] body shops [.] and garages.
Sec. 17. NRS 487.630 is hereby amended to read as follows:
487.6301. An application for a license to operate a body shop must be filed with the department upon forms supplied by the department. The application must be accompanied by such proof as the department requires to [evidence] demonstrate that the applicant meets the statutory requirements to [become an operator of] operate a body shop.
2. The department shall charge a fee of $300 for the issuance or renewal of a license to operate a body shop. Fees collected by the department pursuant to this subsection must be deposited with the state treasurer to the credit of the account for regulation of salvage pools, automobile wreckers , [and] body shops [.] and garages.
3. Upon receipt of the application and when satisfied that the applicant is entitled thereto, the department shall issue to the applicant a license to operate a body shop. The license must contain the name and the address of the body shop and the name of the operator.
4. Upon receipt of the license, the operator shall display the license number prominently in the body shop and include the license number on all estimates and invoices for repairs.
5. A license expires on December 31 of the year for which it is issued.
6. A licensee may renew his license by submitting to the department:
(a) A completed application for renewal upon a form supplied by the department; and
(b) The fee for renewal of a license provided in subsection 2.
Sec. 18. NRS 487.700 is hereby amended to read as follows:
487.7001. The department may impose an administrative fine, not to exceed $2,500, for a violation of any provision of this chapter, or any rule, regulation or order adopted or issued pursuant thereto. The department shall afford to any person so fined an opportunity for a hearing pursuant to the provisions of NRS 233B.121.
2. [All] Except as otherwise provided in subsection 3, all administrative fines collected by the department pursuant to subsection 1 must be deposited with the state treasurer [to the credit of the account for regulation of salvage pools, automobile wreckers and body shops.] for credit to the state general fund.
3. The department may delegate to a hearing officer or panel its authority to impose and collect administrative fines pursuant to subsection 1 and deposit the money collected with the state treasurer for credit to the account for regulation of salvage pools, automobile wreckers, body shops and garages.
4. In addition to any other remedy provided by this chapter, the department may compel compliance with any provision of this chapter and any rule, regulation or order adopted or issued pursuant thereto, by injunction or other appropriate remedy and the department may institute and maintain in the name of the State of Nevada any such enforcement proceedings.
Sec. 19. NRS 597.480 is hereby amended to read as follows:
597.480As used in NRS 597.480 to 597.590, inclusive, unless the context otherwise requires:
1. "Garage" [means any business establishment, sole proprietorship, firm, corporation, association or other legal entity that engages in the business of repairing motor vehicles.
2. "Garageman" means any person who owns, operates, controls or manages a garage.] has the meaning ascribed to it in section 4 of this act.
2. "Garageman" has the meaning ascribed to it in section 5 of this act.
3. "Motor vehicle" means:
(a) A motorcycle as defined in NRS 482.070;
(b) A motortruck as defined in NRS 482.073 if [its] the gross weight of the vehicle [weight] does not exceed 10,000 pounds;
(c) A passenger car as defined in NRS 482.087;
(d) A mini motor home as defined in NRS 482.066;
(e) A motor home as defined in NRS 482.071; and
(f) A recreational vehicle as defined in NRS 482.101.
4. "Person authorizing repairs" means a person who uses the services of a garage. The term includes an insurance company, its agents or representatives, authorizing repairs to motor vehicles under a policy of insurance.
[5. "Repair" or "repairing" includes modifying and performing maintenance work on motor vehicles, but does not include lubrication or oil change, repairing or changing tires, or replacing batteries, wiper blades, fan belts or other minor accessories.]
Sec. 20. Chapter 598 of NRS is hereby amended by adding thereto the provisions set forth as sections 21 to 25, inclusive, of this act.
Sec. 21. As used in sections 21 to 25, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 22 and 23 of this act have the meanings ascribed to them in those sections.
Sec. 22. "Department" means the department of motor vehicles and public safety.
Sec. 23. "Division" means the consumer affairs division of the department of business and industry.
Sec. 24. 1. The division and the department shall cooperate to enhance the protection of persons who authorize the repair of motor vehicles by a garage that is registered with the department pursuant to the provisions of sections 2 to 10, inclusive, of this act.
2. The commissioner of consumer affairs may provide to the department a copy of any complaint filed with the division that alleges a deceptive trade practice pursuant to the provisions of NRS 598.0903 to 598.0999, inclusive, by a garage or garageman registered pursuant to the provisions of sections 2 to 10, inclusive, of this act. If the commissioner provides the department with a copy of a complaint, the department is subject to the provisions of NRS 598.098 with respect to the complaint.
3. The department may provide assistance to the division in carrying out the provisions of section 25 of this act.
Sec. 25. The division shall:
1. Establish and maintain a toll-free telephone number for persons to report to the division information concerning alleged violations of NRS 487.035, 597.480 to 597.590, inclusive, and 598.0903 to 598.0999, inclusive, and sections 2 to 10, inclusive, of this act.
2. Develop a program to provide information to the public concerning:
(a) The duties imposed on a garageman by the provisions of NRS 487.035 and 597.480 to 597.590, inclusive, and sections 2 to 10, inclusive, of this act;
(b) The rights and protections established for a person who uses the services of a garage;
(c) The repair of motor vehicles; and
(d) Deceptive trade practices relating to the repair of motor vehicles by a garage.
Sec. 26. NRS 598.0915 is hereby amended to read as follows:
598.0915A person engages in a "deceptive trade practice" [when] if, in the course of his business or occupation , he:
1. Knowingly passes off goods or services as those of another.
2. Knowingly makes a false representation as to the source, sponsorship, approval or certification of goods or services.
3. Knowingly makes a false representation as to affiliation, connection, association with or certification by another.
4. Uses deceptive representations or designations of geographic origin in connection with goods or services.
5. Knowingly makes a false representation as to the characteristics, ingredients, uses, benefits, alterations or quantities of goods or services or a false representation as to the sponsorship, approval, status, affiliation or connection of a person therewith.
6. Represents that goods are original or new if he knows or should know that they are deteriorated, altered, reconditioned, reclaimed, used or secondhand.
7. Represents that goods or services are of a particular standard, quality or grade, or that goods are of a particular style or model, if he knows or should know that they are of another.
8. Disparages the goods, services or business of another by false or misleading representation of fact.
9. Advertises goods or services with intent not to sell them as advertised.
10. Advertises goods or services with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity.
11. Advertises under the guise of obtaining sales personnel when in fact the purpose is to first sell goods or services to the sales personnel applicant.
12. Makes false or misleading statements of fact concerning the price of goods or services, or the reasons for, existence of or amounts of price reductions.
13. Fraudulently alters any contract, written estimate of repair, written statement of charges or other document in connection with the provision of goods or services.
Sec. 27. Section 3 of Assembly Bill No. 134 of this session is hereby amended to read as follows:
Sec. 3. NRS 487.070 is hereby amended to read as follows:
487.070 1. The department may approve or reject the application and, if approved, shall issue to the applicant:
(a) A license containing the applicant's name [,] and address, the name under which the business is to be conducted, the business address, and a distinguishing number assigned to the applicant.
(b) A card which:
(1) Contains the information specified in paragraph (a);
(2) Includes a picture of the licensee; and
(3) Clearly identifies the holder of the card as a licensed automobile wrecker.
2. A licensee may obtain one or two cards for his business. The department shall charge a fee of $50 for each card issued. Fees collected by the department pursuant to this subsection must be deposited with the state treasurer to the credit of the account for regulation of salvage pools, automobile wreckers, body shops and garages.
3. A license expires on [December 31 of the year for which it is issued.] April 30 of each year.
4. A licensee may renew his license by submitting to the department:
(a) A completed application for renewal upon a form supplied by the department; and
(b) The fee for renewal of a license provided in NRS 487.080.
Sec. 28. Section 7 of Assembly Bill No. 134 of this session is hereby amended to read as follows:
Sec. 7. NRS 487.630 is hereby amended to read as follows:
487.630 1. An application for a license to operate a body shop must be filed with the department upon forms supplied by the department. The application must be accompanied by such proof as the department requires to demonstrate that the applicant meets the statutory requirements to operate a body shop.
2. The department shall charge a fee of $300 for the issuance or renewal of a license to operate a body shop. Fees collected by the department pursuant to this subsection must be deposited with the state treasurer to the credit of the account for regulation of salvage pools, automobile wreckers, body shops and garages.
3. Upon receipt of the application and when satisfied that the applicant is entitled thereto, the department shall issue to the applicant a license to operate a body shop. The license must contain the name and the address of the body shop and the name of the operator.
4. Upon receipt of the license, the operator shall display the license number prominently in the body shop and include the license number on all estimates and invoices for repairs.
5. A license expires on [December 31 of the year for which it is issued.] April 30 of each year.
6. A licensee may renew his license by submitting to the department:
(a) A completed application for renewal upon a form supplied by the department; and
(b) The fee for renewal of a license provided in subsection 2.
Sec. 29. The amendatory provisions of this act do not apply to offenses that are committed before the effective date of this act.
Sec. 30. The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.
Sec. 31. 1. This section and sections 1 to 10, inclusive, and 13 to 30, inclusive, of this act become effective upon passage and approval.
2. Sections 11 and 12 of this act become effective upon passage and approval for the purpose of appointing members to the advisory board on the repair of motor vehicles and on July 1, 1997, for all other purposes, and expire by limitation on July 1, 1999.