State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Engrossed ][ House Amendment 001 ]
[ Senate Amendment 001 ]

90_SB1039enr

      New Act
          Creates  the  Automotive  Repair  Act.    Requires   that
      automotive  repair  facilities  disclose  certain information
      concerning estimates for repair work, warranties,  and  other
      matters.  Provides  procedures  for consumer authorization of
      repairs.  Makes violation of the  Act  an  unlawful  practice
      under  the  Consumer  Fraud  and Deceptive Business Practices
      Act.
                                                    LRB9002918DJpkA
SB1039 Enrolled                               LRB9002918DJpkA
 1        AN ACT concerning the automotive repair industry.
 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:
 4        Section  1.   Short  title.  This Act may be cited as the
 5    Automotive Repair Act.
 6        Section 5.  Legislative finding.  The  automotive  repair
 7    industry  supports  good  communication between motor vehicle
 8    repair facilities and their customers. The  General  Assembly
 9    recognizes   that   improved   communications   and  accurate
10    representations  between  automotive  repair  facilities  and
11    their customers will increase consumer confidence, reduce the
12    likelihood  of  disputes  arising,  and  promote   fair   and
13    nondeceptive  practices,  thereby  enhancing  the  safety and
14    reliability of  motor  vehicles  serviced  by  motor  vehicle
15    repair facilities in the State of Illinois.
16        Section 10.  Definitions.  In this Act:
17        "Automotive repair" includes, but is not limited to:
18             (1)  All repairs to motor vehicles that are commonly
19        performed  in  a motor vehicle repair facility by a motor
20        vehicle    technician,    including    the     diagnosis,
21        installation,   exchange,  or  repair  of  mechanical  or
22        electrical  parts  or  units   for   any   vehicle,   the
23        performance of any electrical or mechanical adjustment to
24        any  vehicle,  or  the  performance  of  any service work
25        required  for  routine  maintenance  or  repair  of   any
26        vehicle.   The  term  does  not  include commercial fleet
27        repair or maintenance transactions involving  2  or  more
28        vehicles  or  ongoing  service  or  maintenance contracts
29        involving vehicles used primarily for business purposes.
30             (2)  All  repair  work  in  motor   vehicle   repair
SB1039 Enrolled            -2-                LRB9002918DJpkA
 1        facilities  that  perform  one or more specialties within
 2        the automotive repair service  industry,  including,  but
 3        not  limited  to, refinishing, brake, electrical, exhaust
 4        repair  or  installation,  front-end,  radiators,  tires,
 5        transmission,   tune-up,   and   windshield.     However,
 6        transactions involving the retail purchase of merchandise
 7        when  a  facility installs the merchandise as part of the
 8        transaction at the discretion of the customer for a  firm
 9        price are not included.  These transactions shall include
10        but  not  be  limited  to tires, batteries, oil, and lube
11        jobs.
12        "Automotive repair facility"  or  "motor  vehicle  repair
13    facility" means any person, firm, association, or corporation
14    that  for  compensation engages in the business of automotive
15    repair or  diagnosis,  or  both,  of  malfunctions  of  motor
16    vehicles.
17        A  "used" part consists of a used assembly removed from a
18    vehicle and installed on a vehicle undergoing repair  without
19    the benefit of being rebuilt or remanufactured.
20        Section 15. Disclosures to consumers; estimates.
21        (a)  Disclosures required.  No work for compensation that
22    exceeds    $100   shall   be   commenced   without   specific
23    authorization from the consumer  after  the  disclosures  set
24    forth in this Section.
25        (b)  Estimated   costs.    Every   motor  vehicle  repair
26    facility shall either (i) give to  each  consumer  a  written
27    estimated price for labor and parts for a specific repair and
28    shall not charge for work done or parts supplied in an amount
29    that  exceeds  the  estimate by more than 10% without oral or
30    written consent of the consumer or (ii) give to each consumer
31    a written price limit for each specific repair and shall  not
32    exceed  that  limit  without  oral  or written consent of the
33    consumer.  Either option shall include  an  estimate  of  the
SB1039 Enrolled            -3-                LRB9002918DJpkA
 1    time  necessary  to  complete the repair, if in excess of one
 2    working day. The estimate shall include the  total  costs  to
 3    repair the vehicle.
 4        Estimates  shall  include  all  charges to be paid by the
 5    consumer to complete the repair, including  any  charges  for
 6    estimates  and  diagnostics.  However, transactions involving
 7    the retail purchase of merchandise when a  facility  installs
 8    the  merchandise as part of the transaction at the discretion
 9    of the customer for a firm price  are  not  included.   These
10    transactions  shall  include  but  not  be  limited to tires,
11    batteries, oil, and lube jobs.
12             (1)  Description of  parts.   Motor  vehicle  repair
13        facilities shall describe in the estimate the major parts
14        needed to effectuate the repair and whether parts are new
15        or used.
16             (2)  Calculation  of  labor  costs.  Estimates shall
17        indicate that the motor vehicle repair facility may use a
18        combination  of  industry  standard  flat   rate   (time)
19        manuals,  actual  time,  or  condition  of the vehicle to
20        determine labor costs.  This disclosure mandate may  also
21        be  fulfilled  by  means of a sign that provides the same
22        information to the consumer.  Such a sign shall be posted
23        at a location that can be easily viewed by the consumer.
24             (3)  Required or suggested repairs.  Estimates shall
25        indicate whether the estimated repairs  are  required  or
26        suggested.
27             (4)  Disassembly  and  reassembly charges.  If it is
28        necessary to disassemble,  or  partially  disassemble,  a
29        vehicle  or  vehicle  component  in  order to provide the
30        consumer with a written estimate for required  repair  or
31        maintenance,  the  estimate  shall  show  the cost of any
32        disassembly or  reassembly,  or  both,  if  the  consumer
33        elects  not  to proceed with the repair or maintenance of
34        the vehicle.
SB1039 Enrolled            -4-                LRB9002918DJpkA
 1             (5)  Date.  The estimate shall include the date  the
 2        estimate  was  prepared  or  the  date  the  vehicle  was
 3        presented to the motor vehicle repair facility for repair
 4        or  servicing,  or  both,  the  odometer  reading  on the
 5        vehicle at the time it was left with  the  motor  vehicle
 6        repair facility, and a promised date of delivery.
 7        Section  20.  Notice of consumer's rights; estimate. When
 8    an estimate is required to be  presented  to  a  consumer,  a
 9    motor     vehicle  repair  facility  shall  disclose  to  the
10    prospective consumer an  estimated  price  quotation  or  the
11    option  to  waive  the  price  quotation  by  completing  the
12    following statement with the consumer's signature:
13        "You are entitled to a price estimate for the repairs you
14    have  authorized.  The  repair  price  may  be  less than the
15    estimate but shall not exceed (1) any price limited  estimate
16    or  (2)  any  parts  and  labor  estimate  by  more than 10%.
17    Additional repairs may not be performed without your consent.
18    You may waive your right to a written  estimate  and  require
19    that  you be notified if the price exceeds an amount you have
20    specified.
21        You may waive your right to an estimate, which gives  the
22    motor  vehicle  repair  facility  the  right to set the price
23    without your permission.  Your signature will  indicate  your
24    selection.
25        (a)  I  request  an  estimate in writing before you begin
26    repairs.
27    Signature .................................
28        (b)  Please proceed with repairs but call me for approval
29    before continuing if the price exceeds $ .............
30    Signature ..........................................
31        (c)  I do not want an estimate and you may set the  price
32    of repairs.
33    Signature ...................................
SB1039 Enrolled            -5-                LRB9002918DJpkA
 1    Date ..........  Time..........
 2        This  estimated  price  for  authorized  repairs  will be
 3    honored if the motor vehicle is  delivered  to  the  facility
 4    within  the  time  period  agreed  to by the consumer and the
 5    motor vehicle repair facility."
 6        However, transactions involving the  retail  purchase  of
 7    merchandise  when a facility installs the merchandise as part
 8    of the transaction at the discretion of the  customer  for  a
 9    firm  price  are  not  included.   These  transactions  shall
10    include but not be limited to tires, batteries, oil, and lube
11    jobs.
12        Section  25.   Estimated  price  insufficient.   If it is
13    determined that the estimated price is  insufficient  because
14    of  unforeseen  circumstances, the consumer's consent must be
15    obtained before the work estimated is done or parts estimated
16    are supplied.  If the consumer's consent is oral,  the  motor
17    vehicle  repair  facility  shall  make a notation on the work
18    order or estimate and on the invoice of the date, time,  name
19    of  person  authorizing the additional repairs, and telephone
20    number called, if any, together with a specification  of  the
21    additional parts and labor and the total additional cost.
22        Section 30.  Consumer's authorization of repairs or other
23    action.   After  receiving  the  estimate,  the  owner or the
24    owner's agent may (i) authorize the repairs at  the  estimate
25    of  cost  and time in writing, (ii) request the return of the
26    motor vehicle in a disassembled state, or (iii) request  that
27    the  vehicle be assembled in reasonably the same condition as
28    when released to the motor vehicle repair facility, in  which
29    case  the  motor vehicle repair facility shall make the motor
30    vehicle available for possession within 3 working days  after
31    the  time  of request, unless parts are not available, making
32    additional time necessary.  The motor vehicle repair facility
SB1039 Enrolled            -6-                LRB9002918DJpkA
 1    may receive payment for only those items on the  schedule  of
 2    charges to which the facility is entitled.
 3        Section  35.   Inability  to  deliver  motor  vehicle  to
 4    facility  during  business hours. When the consumer is unable
 5    to deliver the motor vehicle  to  the  motor  vehicle  repair
 6    facility during business hours and the consumer has requested
 7    the  motor  vehicle repair facility to take possession of the
 8    motor vehicle for the purpose of repairing or estimating  the
 9    cost of repairing the motor vehicle, the motor vehicle repair
10    facility may not undertake the diagnosing or repairing of any
11    malfunction  of the motor vehicle for compensation unless the
12    motor vehicle repair facility has complied with  all  of  the
13    following conditions:
14             (1)  The  motor vehicle repair facility has prepared
15        a written estimate or a firm price quotation of the price
16        for  labor  and  parts  necessary  to  repair  the  motor
17        vehicle.
18             (2)  By telephone or  otherwise,  the  consumer  has
19        been given all of the material information on the written
20        estimate  or  firm  price quotation, and the consumer has
21        approved the written estimate or firm price quotation.
22             (3)  The consumer has  given  his  or  her  oral  or
23        written   authorization   to  the  motor  vehicle  repair
24        facility to make the  repairs  pursuant  to  the  written
25        estimate or firm price quotation.
26        If  the  consumer's  authorization  is  oral,  the  motor
27    vehicle  repair  facility  shall  make,  on  both the written
28    estimate or firm price quotation and the invoice, a  notation
29    of  the name of the person authorizing the repairs, the date,
30    the time, and the  telephone  number  called,  if  any.   Any
31    charge  for parts or labor in excess of the original estimate
32    must be separately authorized by the consumer as provided  in
33    subsection (b) of Section 15 and in Section 25.
SB1039 Enrolled            -7-                LRB9002918DJpkA
 1        Section  40.   Motor  vehicle  repair  facility unable to
 2    complete repair in time. If the motor vehicle repair facility
 3    is unable to complete the repairs in the time  promised,  the
 4    facility  shall notify the owner or the owner's agent of this
 5    fact.  After receiving that notification  the  owner  or  the
 6    owner's  agent  may  request  return  of the motor vehicle in
 7    either an assembled or disassembled state, in which case  the
 8    motor  vehicle  repair  facility shall make the motor vehicle
 9    available for possession within 3 working days from the  date
10    of the request. The motor vehicle repair facility may receive
11    payment for the work actually done and for those items on the
12    schedule of charges to which the facility is entitled.
13        Section  45.   Consumer's waiver of estimate.  A consumer
14    may waive the right to receive  a  written  estimate  if  the
15    waiver  is  voluntary  and made without coercion by the motor
16    vehicle repair facility.  A motor vehicle repair facility  or
17    anyone  in  its employ shall not make use of the waiver in an
18    attempt to evade this Act.  Nothing in this Section shall  be
19    construed  as  requiring  a  motor vehicle repair facility to
20    give a written estimated price if the  motor  vehicle  repair
21    facility does not agree to perform the requested repair.
22        Section 50.  Disclosures to consumers; invoices.
23        (a)  Disclosures  required.   Whether  or  not  a written
24    estimate is required, parts and labor  provided  by  a  motor
25    vehicle  repair  facility  shall  be  clearly  and accurately
26    recorded in writing on an invoice and shall  include  all  of
27    the items set forth in this Section.
28        (b)  Itemization   of  cost  of  repair  performed.   The
29    invoice  shall  show  the  motor  vehicle  repair  facility's
30    business name and address,  the  date  of  the  invoice,  the
31    odometer  reading  at  the time the invoice was prepared, the
32    name of the consumer, the description of the vehicle, and the
SB1039 Enrolled            -8-                LRB9002918DJpkA
 1    terms and time limit of any guarantee  for  the  repair  work
 2    performed.   In  addition,  the  invoice  shall  describe all
 3    repair  work  done  by  a  motor  vehicle  repair   facility,
 4    including  all  warranty  work, and shall separately identify
 5    (i) each major part supplied in a manner so that the consumer
 6    can understand what was purchased and (ii)  the  total  price
 7    charged for all parts and labor.
 8        Service  work and parts shall be listed separately on the
 9    invoice, which  shall  also  state  separately  the  subtotal
10    prices  for  service  work and for parts, not including sales
11    tax, and shall  state  separately  the  sales  tax,  if  any,
12    applicable to each.
13        The  invoice  shall  itemize  any  additional charges and
14    include those charges in the total presented to the consumer.
15        (c)  Description of parts installed.  The  invoice  shall
16    include a description of the major parts installed.
17        (d)  Copies  of  invoices.  A legible copy of the invoice
18    shall be given to the consumer and a legible  copy  shall  be
19    retained by the motor vehicle repair facility for a period of
20    2  years  from  the  date  of  repair  as a part of the motor
21    vehicle repair facility's records, which  may  be  maintained
22    in an electronic format.  Records may be stored at a separate
23    location.
24        Section    55.     Consumer    disclosures;   guarantees;
25    warranties.
26        (a)  If  a  motor  vehicle  repair  facility  provides  a
27    warranty on repair parts and labor, the  facility  shall  put
28    the  warranty  in  writing  and  give  a  legible copy to the
29    consumer.  The consumer's copy of the warranty  must  contain
30    the following:
31             (1)  The   nature   and   extent  of  the  warranty,
32        including a description of parts or service  included  in
33        or excluded from the warranty.
SB1039 Enrolled            -9-                LRB9002918DJpkA
 1             (2)  The   duration   of   the   warranty   and  the
 2        requirements to be performed by the warrantee before  the
 3        warrantor will fulfill the warranty.
 4             (3)  All  conditions and limitations of the warranty
 5        and the manner in which the warrantor  will  fulfill  the
 6        warranty, such as by repair, replacement, or refund.
 7             (4)  Any options of the warrantor or warrantee.
 8             (5)  The warrantor's identity and address.
 9        (b)  When repair or diagnostic work is performed pursuant
10    to  a warranty, a motor vehicle repair facility shall give an
11    estimate of the time to complete the repairs.
12        Section 60.  Consumer disclosures; required signs.  Every
13    motor vehicle repair facility shall post in a prominent place
14    on the business premises one or more signs,  readily  visible
15    to customers, in the following form:
16        YOUR CUSTOMER RIGHTS. UNLESS THE FACILITY PROVIDES A FIRM
17    PRICE QUOTATION, YOU ARE ENTITLED BY LAW TO:
18        1.  A  WRITTEN  ESTIMATE  FOR REPAIRS THAT WILL COST MORE
19    THAN $100 UNLESS WAIVED OR ABSENT FACE-TO-FACE  CONTACT  (SEE
20    ITEM 3 BELOW).
21        2.  AUTHORIZE  ORALLY  OR  IN  WRITING  ANY  REPAIRS THAT
22    EXCEED THE ESTIMATED TOTAL PRE-SALES-TAX COST  BY  MORE  THAN
23    10% OR THAT EXCEED THE LIMITED PRICE ESTIMATE.
24        3.  AUTHORIZE  ANY  REPAIRS  ORALLY OR IN WRITING IF YOUR
25    VEHICLE IS  LEFT  WITH  THE  MOTOR  VEHICLE  REPAIR  FACILITY
26    WITHOUT  FACE-TO-FACE  CONTACT  BETWEEN  YOU  AND  THE  MOTOR
27    VEHICLE REPAIR FACILITY PERSONNEL.
28        IF  YOU  HAVE  AUTHORIZED A REPAIR IN ACCORDANCE WITH THE
29    ABOVE INFORMATION, YOU ARE REQUIRED TO PAY FOR THE  COSTS  OF
30    THE REPAIR PRIOR TO TAKING THE VEHICLE FROM THE PREMISES.
31        The  first line of each sign shall be in letters not less
32    than 1.5 inches in height, and the remaining lines  shall  be
33    in letters not less than 0.5 inch in height.
SB1039 Enrolled            -10-               LRB9002918DJpkA
 1        Section  65.   Recordkeeping.  Every motor vehicle repair
 2    facility shall maintain copies of  estimates  for  contracted
 3    work  and all  invoices.  The copies, which may be maintained
 4    in an electronic format,  shall be kept for 2 years and shall
 5    be available for inspection by the Attorney General.
 6        Section 70.   Removal  of  vehicle  from  facility.  Upon
 7    reasonable   notice  and  during  the  motor  vehicle  repair
 8    facility's business hours, a consumer may  remove  a  vehicle
 9    from  a  motor  vehicle  repair  facility upon paying for the
10    following:
11             (1)  Labor actually performed.
12             (2)  Parts actually installed.
13             (3)  Parts ordered specifically for  the  consumer's
14        car  if  the order is not cancelable or the parts are not
15        returnable for cash or credit.
16             (4)  Storage charges imposed in accordance with  the
17        schedule  of  charges  if disclosed to consumers prior to
18        repairs.
19        Section  75.   Lien  barred.   A  motor  vehicle   repair
20    facility  that  fails  to comply with Section 15, 20, 25, 30,
21    35, 40, 45,  50,  55,  or  60  is  barred  from  asserting  a
22    possessory or chattel lien for the amount of the unauthorized
23    parts or labor upon the motor vehicle or component.
24        Section  80.   Unlawful  acts  or practices.  Each of the
25    following acts or practices is unlawful when committed  by  a
26    motor vehicle repair facility:
27             (1)  Advertising   in   a   false,   deceptive,   or
28        misleading manner.
29             (2)  Charging  a consumer for parts not delivered or
30        installed or a labor operation or repair  procedure  that
31        has not actually been performed.
SB1039 Enrolled            -11-               LRB9002918DJpkA
 1             (3)  Unauthorized  operation of a consumer's vehicle
 2        for purposes not related to repair or diagnosis.
 3             (4)  Failing or refusing at  the  time  of  sale  to
 4        provide  a  consumer, upon request, a copy, at no charge,
 5        of any document signed by the consumer.
 6             (5)  Retaining duplicative  payment  from  both  the
 7        consumer  and  the  warranty or extended service contract
 8        provider for the same covered component, part, or labor.
 9             (6)  Charging a consumer  for  unnecessary  repairs.
10        For  purposes  of  this  paragraph, "unnecessary repairs"
11        means those repairs for  which  there  is  no  reasonable
12        basis  for  performing  the  service.  A reasonable basis
13        includes: (i) that the repair service is consistent  with
14        specifications  established by law or the manufacturer of
15        the motor vehicle, component,  or  part;  (ii)  that  the
16        repair   is   in  accordance  with  usual  and  customary
17        practices; (iii) that the repair  was  performed  at  the
18        specific  request  of  the  consumer after the technician
19        disclosed to the consumer the basis for recommending  the
20        repair  when the recommendation is not in accordance with
21        manufacturer specifications or accepted trade  practices;
22        or (iv) that the repair is at the consumer's request.
23             (7)  Misrepresenting   the   terms  of  a  warranty,
24        guarantee, or service agreement.
25             (8)  Altering a motor vehicle to create a  condition
26        requiring repair.
27             (9)  Failing  to  honor  a  warranty,  guarantee, or
28        service agreement  to  which  the  motor  vehicle  repair
29        facility is a party.
30             (10)  Charging  or receiving payment for repairs not
31        authorized by the consumer under Section 15, 20, 25,  30,
32        35, 40, 45, 50, 55, or 60.
33        Section  85.   Violations.  Whenever an automotive repair
SB1039 Enrolled            -12-               LRB9002918DJpkA
 1    facility is  knowingly engaged in or has knowingly engaged in
 2    a persistent practice or  pattern  of  conduct  at  a  single
 3    location  that  violates  this Act, that knowing,  persistent
 4    practice or pattern of conduct shall be  deemed  an  unlawful
 5    act  or    practice  under  the  Consumer Fraud and Deceptive
 6    Business Practices Act.   In the  case  of  such  a  knowing,
 7    persistent  practice  or  pattern  of conduct, all  remedies,
 8    penalties, and authority available to  the  Attorney  General
 9    and  the   several State's Attorneys under the Consumer Fraud
10    and Deceptive Business  Practices Act for the enforcement  of
11    that Act shall be available for the  enforcement of this Act.
12        Section  190.   The Consumer Fraud and Deceptive Business
13    Practices  Act is amended by changing Section 2Z as follows:
14        (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
15        Sec. 2Z.  Violations  of  other  Acts.   Any  person  who
16    knowingly  violates  the  Automotive  Repair  Act,  the Dance
17    Studio Act, the Physical Fitness Services  Act,  the  Hearing
18    Instrument  Consumer Protection Act, the Illinois Union Label
19    Act, the Job  Referral  and  Job  Listing  Services  Consumer
20    Protection Act, the Travel Promotion Consumer Protection Act,
21    the   Credit   Services   Organizations  Act,  the  Automatic
22    Telephone Dialers Act,  the  Pay-Per-Call  Services  Consumer
23    Protection Act, the Telephone Solicitations Act, the Illinois
24    Funeral  or  Burial  Funds Act, the Cemetery Care Act, or the
25    Pre-Need Cemetery Sales  Act  commits  an  unlawful  practice
26    within the meaning of this Act.
27    (Source:  P.A.  88-288;  89-72,  eff.  12-31-95; 89-615, eff.
28    8-9-96.)

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