81R28182 JSC-D
By: Villarreal H.B. No. 4526
Substitute the following for H.B. No. 4526:
By: England C.S.H.B. No. 4526
A BILL TO BE ENTITLED
AN ACT
relating to the disclosure of charges for motor vehicle repairs;
providing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 2, Business & Commerce Code, is amended by
adding Chapter 22 to read as follows:
CHAPTER 22. DISCLOSURE OF MOTOR VEHICLE REPAIR CHARGES
Sec. 22.01. DEFINITION. In this chapter, "motor vehicle
repair dealer" means a person in the business of performing
mechanical or nonmechanical repairs on motor vehicles.
Sec. 22.02. SCHEDULE OF CHARGES. (a) Before taking
possession of a motor vehicle, a motor vehicle repair dealer shall
provide a customer with a written schedule of charges that
includes:
(1) the charge for making an estimate of repairs;
(2) the total estimated charge for releasing a motor
vehicle to the customer in a disassembled state, if the dealer does
not repair the vehicle;
(3) the total estimated charge for releasing a motor
vehicle to the customer in substantially the same condition as the
vehicle was in when delivered to the dealer, if the dealer does not
repair the vehicle;
(4) storage charges;
(5) towing charges;
(6) the posted labor rate; and
(7) an itemized list of all other foreseeable charges,
other than the charges to be included in the estimate under Section
22.04.
(b) The schedule of charges must include a written notice in
substantially the following form:
"NOTICE: UNFORESEEN DAMAGE. In the course of having an
estimate made, a part of your vehicle may be damaged due to age,
stress, heat, or a defect, and it may not be possible to return the
vehicle to substantially the same condition as the vehicle was in
when delivered to the motor vehicle repair dealer without repairing
or replacing that part. If this occurs, the motor vehicle repair
dealer may request additional charges above the amount in the
schedule of charges for the purpose of repairing or replacing the
part. If you do not authorize the additional charges, the motor
vehicle repair dealer is not required to return the vehicle to you
in substantially the same condition as the vehicle was in when
delivered to the repair dealer, and may release the vehicle to you
in a disassembled state."
(c) A motor vehicle repair dealer may not charge a customer
for a service not listed on the schedule of charges or the estimate
under Section 22.04, unless the dealer notifies the customer in
writing, by telephone, or in another manner authorized by the
customer, and the customer agrees to the charge.
(d) A motor vehicle repair dealer shall require the customer
to sign the itemized schedule of charges to acknowledge that the
customer has read the schedule. A motor vehicle repair dealer shall
provide a customer a copy of the signed schedule, and shall retain a
copy of the signed schedule until the first anniversary of the date
the customer signed the schedule.
Sec. 22.03. PROVISION OF SCHEDULE OF CHARGES IF VEHICLE IS
TOWED. If a customer's motor vehicle is brought to the motor
vehicle repair dealer by a towing service and the dealer does not
have an opportunity to provide the written schedule of charges to
the customer before taking possession of the vehicle, the dealer
shall provide the schedule of charges not later than the time the
dealer provides the customer the estimate under Section 22.04.
Sec. 22.04. WRITTEN ESTIMATE. (a) A motor vehicle repair
dealer may not perform repair work on a motor vehicle before the
dealer provides to the customer a written estimate of:
(1) the total charges for the repairs, not including
any applicable tax; and
(2) the time in which the repairs will be completed.
(b) If the motor vehicle repair dealer must disassemble a
major component of a vehicle to make an estimate, the dealer shall
disclose that fact to the customer before the dealer disassembles
the component.
(c) After receiving an estimate under this section, a
customer may authorize the repairs or may request the return of the
customer's vehicle in a disassembled state or in substantially the
same condition as the vehicle was in when delivered to the dealer.
(d) A motor vehicle repair dealer may not charge an amount
that exceeds the estimate by 10 percent, unless the dealer notifies
the customer in writing, by telephone, or in another manner
authorized by the customer and the customer authorizes the
increase. If the customer authorizes the increase, the dealer
shall note on the work order or invoice:
(1) the manner of authorization;
(2) the date and time of the authorization;
(3) the name of the person giving the authorization;
(4) if the authorization was obtained by a telephone
call made by the motor vehicle repair dealer to the customer, the
telephone number called; and
(5) if the authorization was obtained by electronic
communication, the e-mail address or telephone number from which
the communication originated, if applicable.
(e) If the motor vehicle repair dealer is unable to complete
the repair work in the time estimated, the dealer shall notify the
customer, and the customer may request the return of the vehicle in
a disassembled state or in substantially the same condition as the
vehicle was in when delivered to the dealer.
Sec. 22.05. WAIVER. (a) A consumer may waive receipt of
the schedule of charges or the estimate if the consumer signs and
provides to the motor vehicle repair dealer a written waiver as
provided by this section that must be:
(1) conspicuous and in boldface type of at least
10-point size; and
(2) identified by the heading "Waiver of Consumer
Rights" or words of similar meaning.
(b) A waiver of the right to receive the schedule of charges
under Section 22.02 must be in substantially the following form:
"I waive my rights under Chapter 22, Business & Commerce
Code, to receive a written schedule of charges from a motor vehicle
repair dealer for making an estimate of the cost of repairs to my
motor vehicle. I understand that I am waiving the right to an
itemized list of charges involved in making the estimate, including
towing and storage charges and the cost associated with the return
of my vehicle in substantially the same condition as the vehicle was
in when delivered to the dealer or in a disassembled state. I
voluntarily consent to this waiver."
(c) A waiver of the right to receive an estimate under
Section 22.04 must be in substantially the following form:
"I waive my rights under Chapter 22, Business & Commerce
Code, to receive a written estimate from a motor vehicle repair
dealer for the cost of repairing my motor vehicle and the time by
which the repairs will be completed. I voluntarily consent to this
waiver."
(d) A motor vehicle repair dealer may not:
(1) require a customer to sign a waiver as a condition
of doing business with the customer; or
(2) incentivize, coerce, or harass a customer to sign
a waiver.
Sec. 22.06. RETURN OF VEHICLE. (a) If a customer requests
the return of the customer's vehicle under Section 22.04(c) or (e),
the motor vehicle repair dealer shall return the vehicle to the
customer at the earliest practicable commercially reasonable time
after the customer requests the return. The dealer may impose a
charge for returning a vehicle only if the amount of the charge is
included in the schedule under Section 22.02.
(b) Notwithstanding Subsection (a), if, in the course of
having an estimate of repair work made, a part is damaged due to
age, stress, heat, or a defect, and because of the damaged part it
is no longer possible to return the vehicle in substantially the
same condition as the vehicle was in when delivered to the motor
vehicle repair dealer, the dealer may request that the customer
authorize an additional charge for the repair or replacement of the
part. If the customer does not authorize the additional charge, the
dealer is not required to return the vehicle in substantially the
same condition as the vehicle was in when delivered to the dealer
and may return the vehicle to the customer in a disassembled state.
Sec. 22.07. PROVISION OF DETAILED INVOICE. (a) A motor
vehicle repair dealer shall record work performed on an invoice
that:
(1) describes the repair work done with reasonable
particularity;
(2) lists the name and exact charge for each part
supplied and clearly discloses whether each part supplied was used,
rebuilt, or reconditioned; and
(3) discloses the trade name, business address, and
business telephone number of the dealer.
(b) The motor vehicle repair dealer shall provide one copy
of the invoice to the customer and shall retain one copy until the
first anniversary of the date the repair work is completed.
Sec. 22.08. RETURN OF REPLACED PART. A motor vehicle repair
dealer shall return a replaced part to the customer if requested by
the customer when the invoice is given. A dealer is not required to
return a part that must be returned to the manufacturer or
distributor under a warranty or for exchange.
Sec. 22.09. EXCEPTION. A motor vehicle repair dealer is not
required to provide a written schedule or estimate under this
chapter if the dealer charges $15 or less for the repair work.
Sec. 22.10. DECEPTIVE TRADE PRACTICE. A violation of this
chapter is a false, misleading, or deceptive act or practice as
defined by Section 17.46(b), and a remedy under Subchapter E,
Chapter 17, is available for a violation of this chapter.
Sec. 22.11. INJUNCTION. The attorney general may bring an
action to enjoin a violation of this chapter.
Sec. 22.12. CIVIL PENALTY. (a) A motor vehicle repair
dealer is liable to the state for a civil penalty not to exceed $500
for each violation.
(b) The attorney general may sue to collect the penalty.
SECTION 2. This Act takes effect September 1, 2009.