Bill Text: MI SB0867 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Occupations: vehicles, dealers, and repair facilities; owner of a motor vehicle repair facility to operate an additional facility under the same registration; allow. Amends secs. 2, 13b, 14, 15, 16, 17, 18, 30, 32, 32a & 33 of 1974 PA 300 (MCL 257.1302 et seq.).
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced) 2024-05-09 - Referred To Committee On Regulatory Affairs [SB0867 Detail]
Download: Michigan-2023-SB0867-Introduced.html
SENATE BILL NO. 867
A bill to amend 1974 PA 300, entitled
"Motor vehicle service and repair act,"
by amending sections 2, 13b, 14, 15, 16, 17, 18, 30, 32, 32a, and 33 (MCL 257.1302, 257.1313b, 257.1314, 257.1315, 257.1316, 257.1317, 257.1318, 257.1330, 257.1332, 257.1332a, and 257.1333), section 2 as amended by 2020 PA 227 and sections 13b and 32a as added and sections 14, 15, 16, 17, 18, 30, 32, and 33 as amended by 2016 PA 430.
the people of the state of michigan enact:
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(a) "Additional facility" means a motor vehicle repair facility that meets the requirements of section 14(2).
(b) "Administrator" means the secretary of state or any individual designated by the secretary of state to act in his or her place.on behalf of the secretary of state.
(c) (b) "Advertise" means to advise, announce, apprise, command, give notice of, inform, make known, or publish any material that calls to the attention of the public the availability of parts and services.
(d) (c) "Approved educational institution" means a school, academy, or other similar establishment approved by the administrator under section 13a to provide training to mechanics or mechanical trainees under this act.
(e) (d) "Automobile or light truck" means a motor vehicle that has a gross vehicle weight rating of less than 14,000 pounds.
(f) (e) "BAIID mechanic" means a specialty mechanic who holds a certification from the department under section 10 to perform BAIID service.
(g) (f) "BAIID service" means the installation, removal, repair, or other servicing of breath alcohol ignition interlock devices.
(h) (g) "Breath alcohol ignition interlock device" or "BAIID" means that term as defined in section 20d of the Michigan vehicle code, 1949 PA 300, MCL 257.20d.
(i) (h) "Contract" means a written or oral agreement, or a similar understanding or arrangement, in which a person agrees that another person will perform work, labor, diagnosis, repair, reconditioning, replacement, adjustment, or alteration, directly or
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indirectly, on a motor vehicle.
(j) (i) "Customer" means the owner or operator of a motor vehicle.
(k) (j) "Department" means the department of state.
(l) (k) "Distressed vehicle" means that term as defined in section 12a of the Michigan vehicle code, 1949 PA 300, MCL 257.12a.
(m) (l) "Estimate" means a written statement that itemizes as closely as possible the price for labor, by showing the labor price per hour, the number of hours required to perform the work, and the price of parts necessary for a specific repair.
(n) (m) "Facility" or "motor vehicle repair facility" means a place of business that is required to register under this act, except for a motor vehicle repair facility that is an additional facility, and that, for compensation, is engaged in the business of performing, or employs individuals who perform, maintenance, diagnosis, vehicle body work, or repair service, or , beginning July 1, 2016, BAIID service, on a motor vehicle. The term does not include any of the following:
(i) A person that engages only in the business of repairing the motor vehicles of a single commercial or industrial establishment or governmental agency.
(ii) An individual who is repairing his or her the individual's own or a family member's motor vehicle.
(iii) A business that does not diagnose the operation of a motor vehicle, does not remove parts from a motor vehicle to be remachined, and does not install finished machined or remachined parts on a motor vehicle. This subparagraph does not apply to a motor vehicle repair facility that engages in the business of performing, or employing individuals who perform, vehicle body
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work.
(iv) A BAIID facility described in section 625k(14)(d) of the Michigan vehicle code, 1949 PA 300, MCL 257.625k.
(o) (n) "Heavy-duty truck" means a motor vehicle that has a gross vehicle weight rating of 14,000 pounds or more and includes both single-unit and combination tractor trailer or tractor semitrailer vehicles.
(p) (o) "Late model vehicle" means that term as defined in section 24b of the Michigan vehicle code, 1949 PA 300, MCL 257.24b.
(q) (p) "Lien" means a security interest in or other encumbrance on a motor vehicle . The term and includes a security interest created by agreement, a judicial lien obtained by legal or equitable process or proceedings, a common-law lien, or a statutory lien on a vehicle.
Sec. 13b. (1) A certified specialty or master mechanic shall display, in a conspicuous location in the place of business where he or she motor vehicle repair facility where the certified specialty or master mechanic is employed or engaged to perform repairs, a current and valid certificate issued by the administrator. A certified specialty or master mechanic who works at an additional facility does not need to display in the additional facility a current and valid certificate issued by the administrator.
(2) If a certified mechanic works on, inspects and approves, or supervises a repair, he or she the certified mechanic shall affix his or her the certified mechanic's name and certification number, as assigned by the administrator, to the written statement of repairs given to the customer under section 34.
(3) A certified specialty or master mechanic or mechanic
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trainee shall not depart from, or disregard in any material respect, accepted motor vehicle repair industry standards. Compliance with published vehicle manufacturer, parts manufacturer, equipment manufacturer, or recognized aftermarket repair manual specifications creates a presumption that the mechanic or mechanic trainee has followed accepted motor vehicle repair industry standards.
(4) If the administrator, after notice and a hearing, determines that a specialty or master mechanic or mechanic trainee has violated subsection (3), the administrator may, under section 21, require that the specialty or master mechanic or mechanic trainee do both of the following:
(a) Successfully complete a designated training course or program as a prerequisite to continued certification.
(b) Only perform Perform only specific motor vehicle repairs or repair procedures identified by the administrator until the training course or program described in subdivision (a) is completed.
Sec. 14. (1) The Except for a motor vehicle repair facility that is an additional facility, the owner of a motor vehicle repair facility shall register the facility by providing all of the following information to the administrator, on a registration form provided by the administrator, accompanied by a registration fee in an amount determined under section 30:
(a) The name, address, and form of ownership of the facility, and if the owner is a corporation, the date and place of incorporation.
(b) The name and address of each of the owner's resident agents, officers, directors, and partners in this state, as
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applicable.
(c) The principal occupation or business for the past 5 years of all of the following, as applicable:
(i) Each person that owns 10% or more of the facility.
(ii) For each owner described in subparagraph (i), every officer and director if the owner is a corporation; every partner if the owner is a partnership; and any other person that occupies a similar status or performs similar functions.
(d) A description of the facility that includes all of the following information:
(i) The type of service business the facility operates.
(ii) The type of repairs the facility performs.
(iii) The type of vehicles the facility services.
(iv) The number of mechanics the facility employs who perform repairs.
(v) The range of gross revenue received by the facility from performing repairs, including revenue from parts and goods sold in conjunction with repairs, for the most recent federal income tax year.
(vi) Measured in square feet, the size of that part of the space within the facility utilized used for performing repairs.
(e) An irrevocable appointment of the secretary of state as the agent for the facility for service of process.
(f) A copy of each instrument, form, contract, or other document used by the applicant in dealing connection with the public in the repair of motor vehicles for the public, including, but not limited to, all of the following:
(i) Any document on which the facility routinely requires the a customer's signature.
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(ii) Any document used by the facility in connection with providing estimates, diagnoses, or repairs.
(iii) Any invoices, warranties, or waivers.
(iv) Any other document used by the facility to comply with this act or rules promulgated under this act.
(g) If applicable, any additional facilities that will share the same registration and registration number as the facility that the owner is registering.
(h) (g) Any other relevant information required by the administrator.
(2) The owner of a motor vehicle repair facility registered under subsection (1) may own an additional facility that operates under the same registration and registration number as the facility registered under subsection (1) if the additional facility meets all of the following requirements:
(a) Is located within a reasonable proximity of the motor vehicle repair facility registered under subsection (1).
(b) Serves as an extension of the motor vehicle repair facility registered under subsection (1).
(c) Does not operate independently from the facility registered under subsection (1).
(3) An additional facility does not need any of the following:
(a) A registration certificate with a separate registration number from the facility with which the additional facility shares a registration.
(b) An exterior sign that identifies the business.
(c) Any customer instrument, form, contract, written statement, or other document required under section 32(6) or section 34 that is distinct from the instruments, forms, contracts,
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written statements, or other documents used by the facility with which the additional facility shares a registration.
Sec. 15. (1) A motor vehicle repair facility registration under this act takes effect on the date it is approved by the administrator and expires 1 year after that date. The Except as otherwise provided in subsection (4), the owner of a motor vehicle repair facility shall renew its the facility's registration annually and shall submit an application for renewal of the registration, accompanied by a registration fee in an amount determined under section 30, with the administrator at least not later than 30 days before the expiration of its the facility's then-current registration.
(2) A motor vehicle repair facility may continue to operate after the expiration date of its the facility's then-current registration, pending approval of the renewal application by the administrator, if the renewal application and renewal fee are received by the administrator on or before the expiration date. If a renewal application and renewal fee are filed after the expiration date, the facility may operate from the day on which the application and appropriate fee are received by the administrator, pending approval of the renewal application. The administrator shall charge a fee of 1-1/2 times the normal registration fee if the renewal application is received by the administrator after the expiration date.
(3) A person that owns more than 1 motor vehicle repair facility shall file a single registration form for all of those facilities annually, that along with the other information required under this act, clearly indicates the location of and the individual in charge of each facility, and shall pay a separate
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registration fee, except for a facility that is an additional facility, for each of those facilities.
(4) An owner of a motor vehicle repair facility may renew the facility's registration for more than 1 year but not more than 4 years if the owner submits an application for renewal to the administrator accompanied by a registration fee in an amount determined under section 30(4).
Sec. 16. (1) If there is a change in of ownership of a motor vehicle repair facility, a new registration and payment of a new registration fee is required and the facility shall not operate until its the facility's registration application is approved by the administrator and the fee is paid. If a name or address of the motor vehicle repair facility changes, and there is not a change of ownership, the facility shall notify the administrator in writing of the change and shall make the appropriate changes on the next renewal registration when due.
(2) If the owner of a motor vehicle repair facility is a corporation, and 10% 25% or more of the stock of the corporation is sold or transferred, the owner shall notify the administrator of that change within not later than 30 days of after the sale or transfer.
(3) As used in this section, "change of ownership" means a sale of all or part of a facility to a new owner. The term includes a sale or transfer of a partnership interest in the owner of a facility if the owner is a partnership. The term does not include the sale or transfer of stock in the owner of a facility if the owner is a corporation.
Sec. 17. (1) The owner of a facility that is registered or is required to register under this act shall ensure that the facility
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is and, if applicable, any additional facilities are open to inspection by the administrator and other law enforcement officials during reasonable business hours. During reasonable business hours, the administrator and other law enforcement officials may make periodic unannounced inspections of the premises, parts records, and parts inventories of a facility or additional facility.
(2) A person shall not hinder, obstruct, or otherwise prevent an inspection under this section or section 18 or 18a.
(3) As used in this section, "reasonable business hours" includes any posted or advertised business hours of a facility.
Sec. 18. (1) The owner of a motor vehicle repair facility shall maintain reasonable business records for the facility and, if applicable, any additional facilities and ensure that those records are open for reasonable inspection by the administrator or other law enforcement officials. As used in this subsection, "reasonable business records" includes those documents and records described in subsection (2)(a) to (c).
(2) The owner of a motor vehicle repair facility shall retain the records of the facility and, if applicable, any additional facilities for the following time periods:
(a) The owner shall retain copies of each instrument, form, contract, or other document used in connection with a repair transaction, including, but not limited to, all of the following for at least 3 years after completion of the repair transaction:
(i) Any document on which the facility required the customer's signature.
(ii) Any document used by the facility in connection with providing an estimate, diagnosis, or repair.
(iii) Any invoice, warranty, or waiver.
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(iv) Any other document used by the facility to record or convey the terms of the transaction.
(v) Any other document required under this act or rules promulgated under this act in connection with a repair transaction.
(b) If a facility is advised by the administrator that he or she the administrator has received a complaint about a repair transaction performed by the facility, and the facility is under investigation by the administrator, the owner shall retain records relating to the transaction or otherwise relevant to the complaint until the date the administrator advises the facility in writing that the complaint is closed, or for 3 years after the completion of the repair transaction, whichever is later.
(c) If a repair transaction involves the assumption by the facility of an obligation extending beyond for more than 3 years, the owner shall retain records or documents relating to that obligation for at least not less than the term of the obligation.
(d) For any other document or record than those described in subdivision (a), (b), or (c), the owner shall retain that document or record for at least not less than 3 years.
(e) Business records for an additional facility must be stored at the facility with which the additional facility shares a registration.
(3) A facility that engages in vehicle body work shall maintain records in a form prescribed by the administrator. The records shall must contain the date of purchase or acquisition of each distressed vehicle, a description of the vehicle, and the name and address of the person from which the vehicle was acquired. If the vehicle is sold, the record shall must contain the date of sale and the name and address of the purchaser. The record shall must
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indicate whether a certificate of title or salvage certificate of title was obtained by the facility for the vehicle. If the vehicle is a late model vehicle, the facility shall maintain a record of the purchase or sale of each major component part purchased or acquired by the facility for the vehicle. The record shall must contain the date of purchase or acquisition of the part, a description of the part, the identification number assigned to the part, and the name and address of the person to or from which the part was purchased, acquired, or sold.
(4) A facility shall maintain or attach the record of a sale, purchase, or acquisition of a major component part to a police book described in section 251 of the Michigan vehicle code, 1949 PA 300, MCL 257.251. A facility shall make its the facility's police book and its the facility's records of vehicle part sales, purchases, or acquisitions immediately available for inspection by the administrator and other law enforcement officials if a request for inspection is made.
(5) This section does not authorize a facility to engage in the business of dealing in vehicles or salvageable parts without a dealer's license under the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923.
Sec. 30. (1) The registration fee for the registration of a facility is determined by a sliding fee scale that is based on the gross annual revenue of the facility, as follows:
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GROSS ANNUAL REVENUE |
FEE |
|
|
under $5,000.00........................................... |
$ |
25.00 |
|
$5,001.00 to $15,000.00................................... |
50.00 |
|
|
$15,001.00 to $25,000.00.................................. |
75.00 |
|
|
$25,001.00 to $40,000.00.................................. |
100.00 |
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|
$40,001.00 to $60,000.00.................................. |
125.00 |
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$60,001.00 to $80,000.00.................................. |
150.00 |
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$80,001.00 to $100,000.00................................. |
175.00 |
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$100,001.00 to $120,000.00................................ |
200.00 |
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$120,001.00 to $140,000.00................................ |
225.00 |
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$140,001.00 to $160,000.00................................ |
250.00 |
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$160,001.00 to $180,000.00................................ |
275.00 |
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$180,001.00 to $200,000.00................................ |
300.00 |
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$200,001.00 to $220,000.00................................ |
325.00 |
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$220,001.00 to $240,000.00................................ |
350.00 |
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$240,001.00 to $260,000.00................................ |
375.00 |
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$260,001.00 to $280,000.00................................ |
400.00 |
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$280,001.00 to $300,000.00................................ |
425.00 |
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$300,001.00 to $320,000.00................................ |
450.00 |
|
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$320,001.00 to $340,000.00................................ |
475.00 |
|
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over $340,000.00.......................................... |
500.00 |
(2) The examination, application, certificate, and renewal fees for the certification of mechanics are as follows:
(a) Each certification examination administered by the administrator, $6.00.
(b) Application for original certificate, $25.00. However, any of the following may apply for an original specialty or master mechanic certificate without paying a fee under this subdivision:
(i) An individual who is currently certified by the administrator in at least 1 repair category may apply for certification in 1 or more additional repair categories without paying a fee under this subdivision.
(ii) A mechanic trainee who presents proof that he or she the trainee has successfully completed 30 or more hours of continuing
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mechanic education courses given by an approved educational institution during the 5-year period immediately preceding the date the trainee submits the application for certification.
(iii) An individual who served in the armed forces; was separated from that service; and provides to the administrator a form DD214, a form DD215, or any other form that is satisfactory to the administrator that demonstrates that the individual was separated from that service, with an honorable character of service or under honorable conditions (general) character of service.
(c) Application for renewal certificate, $20.00.
(d) Replacement certificate, $5.00.
(3) The permit fees for a mechanic trainee are as follows:
(a) Application for a mechanic trainee permit, $20.00. However, either of the following may apply for a mechanic trainee permit without paying a fee under this subdivision:
(i) An individual who is currently certified by the administrator in at least 1 repair category.
(ii) A student who is currently enrolled in a vocational education or special education program that includes employment by a motor vehicle repair facility; that is approved by the department of education; and for which the student receives credit toward the award of a high school or special education diploma.
(b) Replacement of trainee permit, $5.00.
(4) The fee for a multiyear registration described under section 15(4) is the applicable fee under subsection (1) multiplied by the number of years the registration is renewed.
(5) (4) As used in this section:
(a) "Armed forces" means that term as defined in section 2 of the veteran right to employment services act, 1994 PA 39, MCL
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35.1092.
(b) "Gross annual revenue" means a facility's gross revenue from performing repairs, including parts and goods sold in conjunction with repairs, in its the facility's most recently completed federal income tax year, or, if the facility has not been in business for a complete federal income tax year, the facility's reasonably anticipated gross revenue for its the facility's first full federal income tax year of operation.
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. A facility shall not charge for work done or parts supplied 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 must not be construed as requiring 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
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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 was in at the time it 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
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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 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 Except for a motor vehicle repair facility that is an additional facility, 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.
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(d) Any other document used by the facility to comply with this act or rules promulgated under this act.
Sec. 32a. (1) A motor vehicle repair facility shall display a consumer information sign. The sign shall contain 12 lines of lettering worded substantially as follows:
"THIS ESTABLISHMENT IS REGISTERED WITH THE MICHIGAN DEPARTMENT OF STATE AND IS REQUIRED BY LAW TO FURNISH A CUSTOMER WITH A:
(1) WRITTEN ESTIMATE IF REPAIRS WILL BE $50 OR MORE OR ON REQUEST IF REPAIRS WILL BE LESS THAN $50.
(2) DETAILED STATEMENT OF LABOR AND PARTS SUPPLIED. QUESTIONS REGARDING SERVICE WORK SHOULD BE DIRECTED FIRST TO THE MANAGER OF THIS REPAIR FACILITY.
MICHIGAN DEPARTMENT OF STATE
P.O. BOX ________, LANSING, MI 489____
TOLL-FREE TELEPHONE: 800 _________________
MON.-FRI., 8:30 A.M. - 4:30 P.M.
DEPARTMENT OF STATE WEBSITE: _____________."
(2) All of the following apply to a sign required under subsection (1):
(a) It shall must be rectangular in shape and at least not less than 28 inches high by 24 inches wide.
(b) It shall must be constructed of durable material.
(c) The background of the sign shall must be white.
(d) Print and other markings on the sign shall must be black.
(e) The wording of the sign shall must be printed in bold, block, capital letters that are 1-inch 1 inch high and 1/2-inch 1/2 inch wide in lines 1, 2, 8, 9, 10, and 12; 3/4-inch 3/4 inch high and 1/2-inch 1/2 inch wide in line 11; and 1/2-inch 1/2 inch high and 3/8-inch 3/8 inch wide in lines 3 to 7.
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(f) The sign shall must be laid out in a clearly legible fashion, with the lettering arranged so that there is at least not less than a 1/8-inch space between any 2 letters within a line and at least not less than a 1/2-inch space between any 2 lines.
(g) The sign shall must include the address, telephone numbers, and Internet website address of the department in lines 9, 10, and 12, as provided by the administrator.
(3) All of the following apply to the display of a sign required under subsection (1) by a motor vehicle repair facility:
(a) The facility shall display the sign at each entrance to the facility and at each cashier station. As used in this subsection and section 33(8), "entrance to the facility" means each location in or about the facility where customer repair service orders are initially executed.
(b) The facility shall ensure that the sign is unobstructed and clearly and readily visible to customers.
(c) If the facility is not enclosed or is a mobile facility, the facility shall ensure that it is placed in an area where it is easily noticeable to customers who are transacting business with the facility.
(4) The administrator may require that a facility replace any sign that does not meet all of the requirements of this section or is no longer readily legible, or that the facility reposition any sign that is improperly displayed.
Sec. 33. (1) A motor vehicle repair facility shall return replaced parts to the customer at the time the repair work is completed. All of the following apply to the obligation to return replaced parts under this subsection:
(a) A facility is not required to return any of the following
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replaced parts to the customer:
(i) Parts that are exempted from the return requirement by the administrator because of size, weight, or similar factors. However, a facility shall not prevent a customer from removing any heavy or large part, by the customer's own means and at his or her the customer's expense.
(ii) Subject to subsection (3), parts that the motor vehicle repair facility or mechanic is required to return to the manufacturer or distributor under a warranty or exchange arrangement.
(iii) For reasons of safety, a gasoline tank or any other container-type part that was filled with or was otherwise in appreciable contact with flammable fuels, unless that part is rendered nonflammable.
(b) If any returned part presents an actual danger of flammability or explosiveness, the facility shall clearly inform the customer of that danger.
(c) When the repair work is completed, if requested by the customer, the facility shall reasonably clean the replaced parts that are to be returned or inspected by the customer. The facility shall place portable parts in a suitable container. The facility shall store any parts that it identifies as not portable in a suitable place in the facility for the customer's inspection.
(d) If a facility charges a fee to a customer in connection with the return of replaced parts, the facility must disclose that fee to the customer in writing before the customer engages the facility to replace the part.
(2) A customer shall be informed of his the customer's right to receive or inspect replaced parts as provided in this section
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before the customer executes any document or engages the facility or mechanic for the work. Subject to subsection (5), the facility shall provide this information to the customer by providing the following notice to the customer, printed or displayed on the face of any contract, work order form, or other document that evidences the engagement of the facility or mechanic in at least not less than 12-point boldfaced letters that are at least not less than 4 points larger that the principal size of the letters in that document, or providing the notice in a separate written document in at least not less than 12-point, boldfaced, capital letters, as follows:
"YOU ARE ENTITLED BY LAW TO THE RETURN OF ALL PARTS REPLACED, EXCEPT THOSE WHICH ARE TOO HEAVY OR LARGE, AND THOSE REQUIRED TO BE SENT BACK TO THE MANUFACTURER OR DISTRIBUTOR BECAUSE OF WARRANTY WORK OR AN EXCHANGE AGREEMENT. YOU ARE ENTITLED TO INSPECT THE PARTS WHICH CANNOT BE RETURNED TO YOU."
(3) If a facility is obligated to return a replaced part to the manufacturer or a distributor under a warranty agreement, or, subject to subsection (4), under an exchange agreement, the facility is not required to return that part to the customer. However, the facility or mechanic shall offer the customer an opportunity to inspect the replaced part. If the customer accepts the offer to inspect the part, or otherwise requests to inspect the part, the facility or mechanic shall allow the customer to inspect the part when the repair work is completed. A facility is not required to show a replacement part to a customer if the replacement is made without charge to the customer.
(4) If replacement of a part is contingent on the facility keeping the part under an exchange agreement, the facility shall
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explain, in a manner understandable to the customer, the precise terms of the exchange agreement, including if applicable a disclosure of the price to the customer if he or she the customer wishes to reclaim the part. If a customer raises a question or dispute with the facility within not later than 2 business days after the delivery of the repaired vehicle to the customer and the dispute involves an exchange part for which the facility required the customer pay a deposit in the amount of the facility's obligation, the facility shall refund the deposit to the customer if he or she the customer returns the part to the facility.
(5) A facility that displays the notice described in subsection (2) on a clearly legible sign with lettering at least not less than 1 inch high, conspicuously displayed in the part of the facility where customers routinely contract for repairs, is not required to provide the notice to a customer in the form of a document described in subsection (2).
(6) All of the following apply to the disposition of replaced parts that are not returned to the customer:
(a) Unless subdivision (b) applies, the facility shall not dispose of keep the parts for at least not less than 2 business days after the customer takes possession of the repaired vehicle, unless the customer has specifically authorized immediate disposition of the parts.
(b) If a customer questions or disputes repairs performed by a facility or the charges for those repairs within not later than 2 days after the customer takes possession of the repaired vehicle, the facility shall not dispose of the replaced parts until the question or dispute is resolved. If the dispute involves the replaced part, the facility shall, in the presence of the customer,
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immediately affix to the part a permanent mark sufficient to identify the part.
(7) If requested by a customer, a facility shall explain exactly why a replaced part is defective or nonfunctional, or otherwise why it was replaced.
(8) The motor vehicle repair facility shall display a clearly legible sign in a conspicuous place at the entrance of the facility that indicates that customers may make inquiries concerning repair service or complaints to the administrator and states the address and telephone number of the department.
