PRINTER'S NO. 2782
No. 2140 Session of 1976
INTRODUCED BY TOLL, TAYLOR, SCHMITT, IRVIS, MANDERINO, GILLETTE,
COHEN, A. P. KELLY, ROSS, GREENFIELD, McCALL, JOHNSON, PERRY,
ZWIKL, BERLIN, BELLOMINI, WOJDAK, PIEVSKY, GLEESON, McINTYRE,
GIAMMARCO, RUGGIERO AND HAMMOCK, FEBRUARY 17, 1976
REFERRED TO COMMITTEE ON CONSUMER PROTECTION, FEBRUARY 17, 1976
AN ACT
1 Regulating the business of repairing motor vehicles; providing
2 for the registration of persons engaged therein; prescribing
3 powers and duties of the Attorney General; prescribing
4 penalties and making an appropriation.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short Title. This act shall be known, and may be
8 cited as the "Pennsylvania Motor Vehicle Repair Protection Act."
9 Section 2. Definitions.--As used in this act:
10 "Business of repairing motor vehicles" shall mean the repair
11 or adjustment of motor vehicles for compensation.
12 "Certificate" shall mean a certificate of registration issued
13 under the provisions of this act.
14 "Core charge" shall mean any amount determined, by a supplier
15 of reconditioned or rebuilt parts on an exchange basis to a
16 registrant, as the reasonable value of a worn-out part to be
17 received by the supplier in exchange for a similar reconditioned
18 or rebuilt part, which amount may be levied as a charge by a
1 supplier against a registrant upon a registrant's failure to
2 tender a worn-out part at the time of exchange.
3 "Established place of business" shall mean a building or part
4 of a building containing a garage facility with space for at
5 least one motor vehicle, and in which shall be prominently
6 displayed a sign stating the full business name, address and
7 telephone number of the registrant and the name of the owner,
8 partners or manager.
9 "Motor vehicle" shall mean a motor vehicle as defined under
10 the provisions of the act of April 29, 1959 (P.L.58, No.32),
11 known as "The Vehicle Code."
12 "Registrant" shall mean any service dealer holding a valid
13 certificate of registration.
14 "Service dealer" or "dealer" shall mean a person who, for
15 compensation, engages in the business of repairing motor
16 vehicles, but shall not include any employee of a business of
17 repairing motor vehicles if the employee repairs or adjusts
18 motor vehicles for compensation only as such employee.
19 Section 3. Signs at Established Place of Business.--The
20 registrant must display a sign prominently in the established
21 place of business stating the full business name, address and
22 telephone number of the registrant, and the name of the owner,
23 partners or manager.
24 Section 4. Registration; Application; Fees and Issuance of
25 Certificate of Registration.--(a) On and after March 15, 1977,
26 it shall be a violation of this act for any business which is
27 not the holder of a certificate of registration issued pursuant
28 to this act to engage in the business of repairing motor
29 vehicles: Provided, however, That no certificate shall be
30 required of any business where the only repairs or adjustments
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1 performed by such business consists of fueling, changing oil,
2 water or batteries or such other similar servicing functions, or
3 the making of such repairs and adjustments not directly related
4 to mechanical operation of the vehicles as the Attorney General
5 may prescribe.
6 (b) An application for one or more certificates shall be
7 filed with the Attorney General in such form and detail as the
8 Attorney General shall prescribe, setting forth:
9 (1) The name and residence address of the applicant; if an
10 individual, the name under which he intends to conduct business;
11 if a partnership, the name and residence address of each member
12 thereof, and the name under which the business is to be
13 conducted; if a corporation, the name of the corporation, the
14 name and residence address of each of the officers and
15 directors, and the name under which the business is to be
16 conducted, if different from the name of the corporation.
17 (2) The place or places, including the complete address or
18 addresses where the business is to be conducted.
19 (3) Such further information as the Attorney General may
20 prescribe. The Attorney General may require the applicant to
21 appear at such time and place as he may designate for
22 examination to enable him to determine the accuracy of the facts
23 set forth in the written application, either for an initial
24 certificate or renewal thereof. Every application shall be
25 affirmed as true by the applicant.
26 (c) Every application shall be accompanied by an application
27 fee of $25 which shall in no event be refunded. If an
28 application is approved by the Attorney General upon payment by
29 the applicant of an additional fee of $50 for each place of
30 business, the applicant shall be granted a certificate for each
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1 place of business, which certificate or certificates shall be
2 valid for a period of one year. The Attorney General may,
3 however, in his discretion, issue such certificate on a
4 staggered expiration basis. The fee for each certificate
5 initially issued for a period of less than three months will be
6 $12.50. The fee for a certificate issued for a period of more
7 than three months but less than six months shall be $25. The fee
8 for each certificate issued for more than six months but less
9 than one year shall be $50. In the event a certificate is issued
10 on a staggered expiration basis it shall expire on the date
11 fixed by the Attorney General. The annual fee for renewal of any
12 certificate issued pursuant to this act shall be $50. The
13 Attorney General shall issue a certificate to each applicant
14 pursuant to the provisions of this act, which certificate shall
15 be conspicuously displayed in the registrant's place of business
16 for which such certificate was issued. In the case of loss,
17 mutilation or destruction of a certificate, the Attorney General
18 shall issue a duplicate certificate thereon upon proof of the
19 facts and the payment of a fee of $25.
20 (d) (1) If a certificate under this act shall be issued in
21 the names of two or more persons as partners and a change occurs
22 in the membership of such partnership, the certificate shall not
23 expire thereupon so long as any one of the persons named in such
24 certificate is a member of the partnership or carries on the
25 business of the partnership as surviving member of the
26 partnership. However, when any change occurs and the certificate
27 does not expire, the partner or surviving member shall forthwith
28 file with the Attorney General a statement regarding such
29 partnership in such form and give such information as the
30 Attorney General shall require, together with the fee of $25,
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1 and the Attorney General shall issue a new certificate. Such new
2 certificate shall expire on the expiration date of the
3 certificate replaced.
4 (2) Where the business is conducted under a franchise, lease
5 or other similar arrangement, the Attorney General, in his
6 discretion, may require the application to be submitted by the
7 franchise holder, lessee or other person actually responsible
8 for the person conducting the business.
9 Section 5. Business Records.--(a) Every registrant shall
10 prepare, at the time a motor vehicle is presented by a customer
11 for repair, a standardized repair order as prescribed by the
12 Attorney General, of which a copy shall be given to the customer
13 and a copy shall be retained by the registrant and shall contain
14 the following:
15 (1) A consecutive repair order serial number.
16 (2) The full business name, address and telephone number of
17 the registrant and the name of the person preparing the repair
18 order.
19 (3) The full name, address and business or residence
20 telephone numbers of the customer.
21 (4) The model year, make, model, body style, vehicle
22 identification number, registration tag number and odometer
23 reading of the motor vehicle.
24 (5) A description of the repairs to be performed as
25 described in section 6.
26 (b) On completion of the repairs, the registrant shall
27 present to the customer a complete itemized bill containing, in
28 addition to the information described in subsection (a):
29 (1) A clear description of the repair operations performed
30 and the price for each operation or group of operations.
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1 (2) A description of each replacement part used with
2 notation if any part is used or reconditioned, together with the
3 price for each part.
4 (3) Subtotals of parts and labor prices, Pennsylvania sales
5 tax, and total price of repairs.
6 (4) Identification of all repairs sublet to other
7 registrants.
8 (5) A statement of the warranty, if any, extended by the
9 registrant on materials and workmanship.
10 (c) Upon payment of this bill by the customer, the
11 registrant shall receipt it and deliver a copy to the customer.
12 (d) Copies of all bills, estimates and authorizations
13 relating to motor vehicle repair shall be kept at the
14 registrant's place of business for two years and shall be
15 available for inspection by the Attorney General or his
16 representative.
17 Section 6. Estimates and Authorization.--(a) When the repair
18 order is written, the registrant shall provide the customer with
19 one or more of the options described below:
20 (1) Where possible, the registrant shall record on the
21 repair order the estimated total price including Pennsylvania
22 sales tax of all repairs to be performed on the motor vehicle
23 and the customer may then give his written authorization for
24 those repairs unless the customer elects the option in paragraph
25 (3).
26 (2) If the price of all repairs cannot be accurately
27 estimated, unless the customer elects the option in paragraph
28 (3), the repair order shall state the maximum charge to be made
29 for diagnosis, inspection and preparation of an accurate
30 estimate for which charge only the customer shall give written
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1 authorization, and the repair order shall also record whether
2 the customer requests:
3 (i) an accurate estimate in writing from the registrant and
4 the customer's authorization for those repairs only in writing;
5 (ii) an accurate estimate from the registrant orally by
6 telephone and the customer's oral authorization; in which case
7 the registrant shall record on the repair order at the time the
8 authorization is given the date, time phone number called and
9 the full name of the person giving such oral authorization; or
10 (iii) on submission of the estimate by the registrant, if the
11 customer elects not to have the repairs performed by the
12 registrant he shall be liable for payment of the charge for
13 diagnosis up to the maximum authorized on the repair order, and
14 the registrant shall return the motor vehicle to the customer in
15 the same condition in which it was presented for diagnosis,
16 unless otherwise agreed to by the customer.
17 (3) The customer may authorize performance of any repairs to
18 the motor vehicle necessary in the judgment of the registrant in
19 a specific functional area by writing a statement to that effect
20 on the repair order in his own handwriting and affixing his
21 signature to that statement.
22 (b) When one of the options has been selected, the
23 registrant shall give a copy of the repair order to the
24 customer.
25 (c) When an estimate is given, either orally or in writing,
26 the customer shall not be liable for payment of any overrun in
27 excess of 10% of the total estimated price of repairs, including
28 Pennsylvania sales tax, unless the customer has given subsequent
29 authorization for such overrun in the same form in which the
30 customer gave assent to the original estimate.
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1 (d) In no case shall the customer be liable for payment for
2 any repairs for which his authorization has not been obtained
3 prior to performance of the repairs.
4 (e) If, after providing an estimate under this section, the
5 registrant obtains authorization to proceed with repairs, the
6 registrant shall credit any charge for the estimate, as provided
7 in subsection (a)(2), against the total of his bill for repairs.
8 (f) A sign or poster setting forth the requirements of this
9 section in clear language established by the Attorney General
10 shall be prominently displayed in each place of business of the
11 registrant.
12 Section 7. Disposition of Parts.--(a) All parts removed
13 from a customer's motor vehicle in the course of repair shall be
14 tendered to the customer on completion of the repairs, at which
15 time the customer may authorize the registrant to dispose of
16 them.
17 (b) Those parts which are purchased on an exchange basis and
18 for which a core charge is levied by the parts supplier shall
19 also be tendered to the customer for his inspection, after which
20 he may return them to the registrant or retain possession of
21 them upon payment of the core charge to the registrant, for
22 which payment a receipt shall be given by the registrant.
23 (c) Those parts which are returned to the manufacturer or
24 distributor under a warranty arrangement shall be so identified
25 on a receipt given to the customer with an explanation of what
26 parts and services the customer receives in return and what his
27 warranty or guarantee rights are on the exchanged parts or part.
28 Section 8. Suspension, Revocation or Refusal to Issue or
29 Renewal of a Certificate; Civil Penalty; Surrender of
30 Certificate.--(a) The Attorney General may deny the application
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1 of any person for a certificate and may suspend or revoke a
2 certificate or refuse to issue a renewal thereof if he
3 determines that such applicant or registrant:
4 (1) has, within three years prior to the issuance of the
5 certificate then in force or while his current certificate is in
6 force pleaded guilty, entered a plea of nolo contendere or has
7 been found guilty in a court of competent jurisdiction of this
8 or any other state of forgery, fraud, embezzlement, obtaining
9 money under false pretenses, extortion, conspiracy to defraud,
10 bribery or any other crime involving moral turpitude; or
11 (2) has knowingly failed or refused to account for or to pay
12 over moneys or other valuables belonging to others which have
13 come into his possession arising out of the repair of motor
14 vehicles; or
15 (3) has engaged in false, deceptive or misleading
16 advertising of motor vehicle repairs; or
17 (4) has committed any act or engaged in conduct in
18 connection with the repair of motor vehicles which clearly
19 demonstrated incompetency by accepted industry standards; or
20 (5) has made a material misstatement or concealed a material
21 fact in application for a certificate; or
22 (6) has grossly overcharged any person for repairs to a
23 motor vehicle; or
24 (7) has misrepresented necessary repairs to a customer, or
25 has defrauded any customer by performing unnecessary repairs; or
26 (8) has conspired with any person to provide rebates or
27 commissions for the towing or repair but excluding sublet
28 repairs of motor vehicles; or
29 (9) has refused to give a customer a copy of any document
30 requiring his signature as soon as the customer signs such
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1 document; or
2 (10) has in the repair and maintenance of motor vehicles,
3 performed any act which constitutes a departure from or
4 disregard of accepted trade standards of good workmanlike
5 repairs in any material respect, which action is prejudicial to
6 the owner of the motor vehicle and which would be known as such
7 a departure or disregard by any reasonable dealer or mechanic in
8 the trade; or
9 (11) has knowingly made a false promise of a character
10 likely to influence, persuade or induce a consumer to authorize
11 the repair and maintenance of a motor vehicle; or
12 (12) has held himself out or has permitted an employee to
13 hold himself out as a certified mechanic, where the registrant
14 or employee is in fact not certified by a board recognized by
15 the industry; or
16 (13) has attempted to enter into or entered into any
17 contract or obligation for the repair and maintenance of a motor
18 vehicle which shall contain a provision by which a consumer:
19 (i) waives any right of action against the dealer or other
20 person acting in the dealer's behalf for any unlawful act
21 committed by the dealer or his agents; or
22 (ii) relieves the dealer from any liability for any legal
23 remedies which the consumer may have against the dealer; or
24 (14) was the former holder of a certificate issued hereunder
25 which was revoked or suspended by the Attorney General; or
26 (15) was an officer, director, partner or stockholder
27 holding more than 10% of the outstanding stock in a corporation
28 or partnership which was the former holder of a certificate
29 issued hereunder which was revoked or suspended by the Attorney
30 General; or
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1 (16) has failed to furnish satisfactory evidence of good
2 character, reputation and fitness; or
3 (17) does not have a place of business as required by this
4 act; or
5 (18) is not the true owner of the repair shop, except where
6 the Attorney General has issued a certificate to a franchise
7 holder or person actually conducting the motor vehicle repair
8 business pursuant to the provisions of section 4 (d)(2); or
9 (19) has failed to comply with any of the provisions of the
10 act of December 17, 1968 (P.L.1224, No.387), known as the
11 "Unfair Trade Practices and Consumer Protection Law"; or
12 (20) has failed to comply with any of the provisions of the
13 act of April 29, 1959 (P.L.58, No.32), known as "The Vehicle
14 Code" relating to the inspection of motor vehicles; or
15 (21) has failed to comply with the rules and regulations
16 promulgated by the Attorney General or any of the provisions of
17 this act.
18 (b) The Attorney General in addition to, or in lieu of
19 revoking or suspending the certificate of a registrant in
20 accordance with the provisions of this act may, in any one
21 proceeding, order the registrant to pay to the Commonwealth a
22 penalty in a sum not exceeding $100 for each violation, and not
23 exceeding $500 in the aggregate for all violations, and upon the
24 failure of such registrant to pay such penalty within 20 days of
25 the receipt by the registrant of such order, postage prepaid,
26 registered, and addressed to the last known place of business of
27 such registrant, unless such order is stayed by an order of a
28 court of competent jurisdiction, may revoke the certificate of
29 such registrant or may suspend the same for such period as he
30 may determine. The penalty provided in this section may be
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1 recovered by action brought by the Attorney General in any court
2 of competent jurisdiction.
3 (c) Any registrant holding or possessing a certificate which
4 has been suspended or revoked pursuant to this act, who fails to
5 deliver the same to the suspending or revoking officer or to any
6 peace officer directed by the Attorney General to secure
7 possession thereof, is guilty of a misdemeanor of the third
8 degree.
9 Section 9. Non-registered Service Dealers.--Any service
10 dealer who is not registered is guilty of a summary offense, and
11 upon conviction thereof, shall be sentenced to pay a fine of
12 $100 for the first offense and of $500 for the second or
13 subsequent offense, and the Attorney General or his
14 representative may seek appropriate civil remedies against a
15 second or subsequent offender.
16 Section 10. Hearings; Judicial Review.--(a) No certificate
17 shall be suspended or revoked or penalty imposed until after a
18 hearing, upon written notice to the registrant, before an
19 officer or employee designated by the Attorney General:
20 Provided, however, That where a notice of hearing is mailed to a
21 registrant at the address shown in the records of the Attorney
22 General and such registrant fails to attend such hearing, the
23 Attorney General may suspend his certificate without a hearing.
24 Upon the denial of an application for a certificate the Attorney
25 General shall grant a hearing to an applicant therefor upon
26 receipt of a request for such a hearing made within 30 days
27 after the applicant is notified of such denial. In the event a
28 certificate is revoked or an application is denied, no
29 certificate shall be issued to such former registrant or
30 applicant for at least six months or thereafter, except at the
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1 discretion of the Attorney General. The applicant or registrant
2 may be heard in person or by counsel. Such hearings shall be at
3 such time and place as the Attorney General shall prescribe. The
4 Attorney General, or his designate, shall have the power of
5 subpoena and may bring before him or his designate, any person
6 in this Commonwealth or document, record or other relevant
7 evidence. He shall have the power to administer oaths and take
8 the testimony of any such person or cause his deposition to be
9 taken. A subpoena issued under this act shall be regulated by
10 the Pennsylvania Rules of Civil Procedure.
11 (b) All actions of the Attorney General shall be taken
12 subject to the right of notice, hearing and adjudication and the
13 right of appeal therefrom, in accordance with the provisions of
14 the act of June 4, 1945 (P.L.1388, No.442), known as the
15 "Administrative Agency Law," or any amendments or reenactment
16 thereof, relating to adjudication procedure.
17 Section 11. Regulations.--The Attorney General may adopt
18 such rules and regulations as may be necessary for the
19 enforcement and administration of this act. Such rules and
20 regulations when promulgated pursuant to the act of July 31,
21 1968 (P.L.769, No.240), known as the "Commonwealth Documents
22 Law," shall have the force and effect of law.
23 Section 12. Personnel.--The Attorney General may appoint and
24 fix the compensation of such clerical, inspection, attorneys,
25 investigation, and auditing personnel as may be necessary to
26 carry out the provisions of this act.
27 Section 13. Investigations.--The Attorney General or his
28 representative shall investigate violations of this act and of
29 any regulation established hereunder, by any service dealer,
30 whether registered or not, and by any employee, partner,
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1 officer, or member of any service dealer. The Attorney General
2 or his representative shall, on his own initiative, conduct spot
3 check investigations of service dealers throughout the
4 Commonwealth on a continuous basis.
5 Section 14. Advisory Council.--There is hereby created an
6 advisory council, which shall advise the Attorney General in
7 administering this act. The council shall consist of eight
8 individuals appointed by the Governor, four consisting of one
9 non-franchised general repair shop, one non-franchised collision
10 repair shop, one franchised new car dealer and one franchised
11 repair shop, all registered under this act with at least five
12 years' experience in the Commonwealth, one of whom shall be
13 employed by a service dealer registered under this act with at
14 least three years' experience in the Commonwealth. The remaining
15 members shall consist of three individuals selected from the
16 public section who shall represent the interest of the general
17 public.
18 The terms of office of members of the council shall be three
19 years or until their successors are qualified. Any vacancy of
20 the council shall be filled for the remainder of the unexpired
21 term, in the same manner as the original appointments.
22 Members of the council shall receive no compensation, but
23 shall be entitled to reimbursement for actual expenses incurred
24 in the performance of duties under this act.
25 Section 15. Waiver of Provisions.--A waiver by the customer
26 of any of the provisions of this act shall be deemed contrary to
27 public policy and shall be void and unenforceable.
28 Section 16. Unlawful Method, Act or Practice.--Any method,
29 act or practice which violates any of the provisions of this act
30 is hereby declared unlawful.
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1 Section 17. Restraining Prohibited Acts.--Whenever the
2 Attorney General, or a district attorney, or the solicitor of
3 any county or city of the first or second class has reason to
4 believe that any person is using or is about to use any method,
5 act or practice declared by this act to be unlawful, and that
6 proceedings would be in the public interest, he may bring an
7 action in the name of the Commonwealth against such person to
8 restrain by temporary or permanent injunction the use of such
9 method, act or practice. The action may be brought in the court
10 of common pleas of the county in which such person resides, has
11 his principal place of business, or is doing business, or may be
12 brought in the Commonwealth Court. The said courts are
13 authorized to issue temporary or permanent injunctions to
14 restrain and prevent violations of this act, and such
15 injunctions shall be issued without bond.
16 Section 18. Assurances of Voluntary Compliance.--In the
17 administration of this act, the Attorney General may accept an
18 assurance of voluntary compliance with respect to any method,
19 act or practice deemed to be violative of the act from any
20 person who has engaged or was about to engage in such method,
21 act or practice. Such assurance may include a stipulation for
22 voluntary payment by the alleged violator providing for the
23 restitution by the alleged violator to consumers, of money,
24 property or other things received from them in connection with a
25 violation of this act. Any such assurance shall be in writing
26 and be filed with the court of common pleas in which the alleged
27 violator resides, has his principal place of business, or is
28 doing business, or the Commonwealth Court. Such assurance of
29 voluntary compliance shall not be considered an admission of
30 violation for any purpose. Matters thus closed may at any time
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1 be reopened by the Attorney General for further proceedings in
2 the public interest, pursuant to this act.
3 Section 19. Civil Penalties.--Any person who violates the
4 terms of an injunction issued under this act or any of the terms
5 of an assurance of voluntary compliance duly filed in court
6 under this act shall forfeit and pay to the Commonwealth a civil
7 penalty of not more than $5,000 for each violation. For the
8 purposes of this section, the court issuing an injunction or in
9 which an assurance of voluntary compliance is filed shall retain
10 jurisdiction, and the cause shall be continued, and, in such
11 cases, the Attorney General, the appropriate district attorney,
12 or solicitor acting in the name of the Commonwealth of
13 Pennsylvania, may petition for recovery of civil penalties and
14 any other equitable relief deemed needed or proper.
15 Section 20. Appropriation.--(a) The sum of $200,000, or so
16 much thereof as may be necessary, is hereby appropriated to the
17 Attorney General for use in carrying out the provisions of this
18 act.
19 (b) The total appropriation to the Attorney General for the
20 purpose of carrying out the provisions of this act may not
21 exceed the total amount of revenue collected by the registration
22 fees as provided by this act.
23 Section 21. Effective Date.--This act shall take effect
24 immediately.
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