Starting January 1, 2010, auto repair shops must prepare an estimate of work for the proposed work on a vehicle before beginning the work. And before receiving payment, the auto repair shop must give a copy of the estimate either as a separate document or in the form of an invoice, to the vehicle owner. The shop must also keep a copy of the invoice.
The estimate must describe the general nature of the work proposed and divide the work into separate tasks if possible by listing the estimated cost of labor and the parts or component systems the shop proposes to replace, the amount of incidental charges, and a reasonable range for the total estimated cost.
If you plan to disassemble the vehicle to diagnose the repair problem, you must list the total estimated cost of performing the disassembly and evaluation and a separate estimate for the cost of reassembly if the owner does not want to fix the vehicle. Also, state the amount of time, calculated from the date on which the owner authorizes the work, to when it would reasonably take to reassemble the vehicle if the owner decides not to continue with the repair.
The bill makes clear that a vehicle repair shop cannot charge a person for work appearing on a signed/approved estimate if the work is not done. Also, a shop cannot provide or install used parts or any component system composed of new and used parts if the estimate states only new parts will be used. Also a no-no is knowingly installing a used or reconditioned part without disclosing it to the vehicle owner.
NATA ended this session with the automotive trades in a better position than before the session began which is worth trumpeting! While a couple of bills we supported did not receive final approval, the bills which might have caused NATA members the most harm were amended to address our concerns.
NATA was invited to sit out the table, specifically for HB 2268, about requirements for customer authorization of motor vehicle repairs. The original bill caused quite a stir because of the unintended consequences the poorly crafted bill would create. However, after Bob Anderson, Board President, Barbara Crest, Executive Director, and Darrell Fuller, Lobbyist, attended a workgroup with Department of Justice staff, they agreed to substantially amend the bill to fit better with today’s realities of automotive repair.
HB 2186, aka “The Greenhouse Gases Bill”, would authorize the Environmental Quality Commission to adopt rules to help the state achieve greenhouse gas emissions reduction goals. Admittedly poorly crafted, the first draft of the bill included “restrictions and prohibitions on the sale and distribution of after-market motor vehicle parts, including but not limited to tires…” Calls came in to the NATA office from around the nation and around Oregon alarmed at the broad, sweeping language of this section. The DEQ’s air quality administrator worked closed with NATA as we brought national associations in to the discussion, including AAIA, SEMA, the Tire Industry Association, and LKQ national. Through dialogue and discussion, the bill was amended to become palatable to all concerned parties.
NATA was asked to testify on many bills in this session, and was recognized as a “player” in the crafting and passage of legislation that effects membership, often in a negative way. Congratulations to all members, the NATA Legislative Committee, the NATA Board of Directors and lobbyist Darrell Fuller for a very good 2009 Legislative Session!
Senate Bill 103-A* – NATA supports(effecting Collision Repairers)
This bill was introduced by the Department of Environmental Quality. It permits DEQ to allow certain businesses which emit air contaminates (such as those which paint vehicles) to register with the DEQ, for a smaller fee, rather than applying for a more costly and burdensome permit. The bill is opposed by some larger air polluters. However, the scope of the bill was narrowed with amendments.
This bill was signed into law by Governor Kulongoski on June 18.
It will become effective on January 1, 2010.
Senate Bill 570-B – NATA supports(effecting Dismantlers)
This bill is the primary “metal theft” bill for the session. It has been carefully crafted with many groups offering input. The goal is to curb the amount of metal theft resulting from illegal drug abusers. The amended bill exempts motor vehicle dismantlers from the new requirements as long as the dismantler does not purchase non-vehicle scrap metal.
This bill passed the Senate on April 29 with 29 “aye” votes and one member excused. It passed the House of Representatives with all 60 members voting “aye” on June 11. It is awaiting the Governor’s signature to become law. It will become effective on January 1, 2010.
Senate Bill 617 – NATA neutral(effecting Collision Repairers)
This bill was introduced at the request of collision repair businesses which oppose direct repair agreements with insurance companies. The bill would prohibit such agreements in Oregon.
The bill died in the Senate Consumer Protection and Public Affairs Committee after a Public Hearing on March 17th.
Senate Bill 843 – NATA opposes(effecting Mechanical Shops)
This bill requires used vehicle oil filters to be recycled through businesses registered with the state as oil filter recyclers. The bill was poorly drafted and caused even its supporters to have many questions about how the bill would be implemented and enforced.
The bill died in the Senate Environment and Natural Resources Committee after a Public Hearing on April 7.
Senate Bill 961-A – NATA supports(effecting Dismantlers)
The bill has two distinct parts. The first part of the bill creates a Pacific Wonderland license plate to commemorate Oregon’s sesquicentennial (150th birthday). This portion was not requested by NATA. The second half of the bill was drafted at NATA request and rewrites and clarifies Oregon’s vehicle dismantler statutes. The bill rewrites much of the existing statutes adding clarity to obtaining and renewing a certificate or supplemental certificate, paperwork requirements and the type of sanctions available to DMV business regulations for enforcement.
This bill appeared dead until the last days of the session. In a last minute deal, the Chair of the Senate Transportation Committee, who authored the license plate portion of the bill, negotiated an up or down vote on only the license plate portion of the bill. The NATA section was stripped out as part of the last minute deal even though our section had no opposition. The big mess behind this bill, oddly enough, was over a dispute on whether or not to preserve the headwaters of the Metolious River from development. It doesn’t make sense, but strange things happen during the process of making laws. NATA will strive to make the dismantler bill a high priority during the short 2010 special session of the Legislature.
House Bill 2039-A -- NATA supports(effecting Car Rental Companies)
The original bill allowed car rental companies to escape parking fines if the vehicle was under the control of a customer. NATA successfully amended the bill expanding its scope to vehicles provided by a business (like loaners from repair shops) to customers.
This bill was signed into law by Governor Kulongoski on May 21.
It will become effective on January 1, 2010.
House Bill 2040-B – NATA supports (effecting Towers)
This bill expands Oregon’s “move over” law to include tow vehicle and roadside assistance vehicles. Current law only requires vehicles to slow down or move over for ambulances, police and fire vehicles.
This bill was signed into law by Governor Kulongoski on June 2.
It will become effective on January 1, 2010.
House Bill 2186-B – NATA supports(affecting Mechanical Shops, Tire Retailers, and Parts Businesses)
This bill was introduced at the request of the Department of Environmental Quality. The original bill caused quite a stir because of the rule-writing authority it granted to the agency. The bill has several sections not related to NATA issues and still has considerable opposition from some in the business community. However, DEQ agreed to amend the bill with regard to the sections which created concern by NATA members after meetings with NATA (including national parts manufacturers). The amended version of the bill permits DEQ to adopt California standards for more fuel-efficient parts such as tires. It also requires vehicle repair businesses which have tire inflation equipment to check and inflate tires when servicing a vehicle.
This bill passed the full House of Representatives on May 8 with 32 representatives voting “aye” and 28 representatives voting “nay”. The bill, which was substantially amended in the House, was amended again in the Senate Environment Committee and was then referred to the Senate Committee on Rules. A much watered-down version of the original bill did pass both the House and Senate with very close votes (16-14 in the Senate and 35-25 in the House). Once signed by the Governor, it will immediately become law because the bill had an “emergency clause” in it which eliminates the delay until January 1, 2010.
House Bill 2268-A – NATA supports(effecting Mechanical Shops)
This bill was introduced at the request of the Department of Justice. The original bill also caused quite a stir because of unintended consequences of a poorly crafted bill. However, after Bob Anderson, Barbara Crest and Darrell Fuller attended a workgroup with DOJ staff, the DOJ agreed to substantially amend the bill. The amended bill requires more frequent communications between a repair shop and customers, especially when the cost of repair increases. It also prohibits repair shops from charging for repairs which are not done, clarifies estimate, invoice and record-keeping requirements and makes violations of the law an unfair trade practice. The bill exempts collision repairs already regulated under Oregon’s insurance statutes.
This bill was signed into law by Governor Kulongoski on May 26.
It will become effective on January 1, 2010.
House Bill 2578-B – NATA supports (effecting Towers)
This bill was introduced by Rep. Riley (D-Hillsboro). The goal of the bill was to outlaw “predatory towing” practices. However, the bill had unintended consequences which would impact towing businesses which are not involved in “predatory towing.” The bill was substantially amended after NATA board member Jeff Asher sat on a workgroup which reviewed the bill. The amended bill requires contact with a property owner prior to towing an illegally parked vehicle. It also requires photographic evidence of the vehicle being parked illegally and permits a vehicle owner to reclaim the vehicle prior to the tow.
This bill was signed into law by the Governor on June 26, 2009.
It will become effective on January 1, 2010.
House Bill 3136 – NATA supports(affecting Towers)
This bill was introduced at the request of NATA. It would shield tow operators from liability when acting under the direction of police, fire or ambulance personnel. NATA was unable to find language which eliminated concerns by organizations representing insurance and ambulance services.
The bill died in the House Consumer Protection Committee.
(A bill with a –A or –B or some other letter behind it indicates the bill was amended in committee prior to the vote in the Senate or House chamber. A bill can be amended more than once.)
In order for a bill to become law, it must pass both the Senate and House in exactly the same form. After both chambers pass a bill, it is sent to the Governor who has the option of signing the bill into law or vetoing the bill.
Other issues:
Tax Increase Referendum (effecting Small Business)
The Legislature passed two bills which substantially increase taxes. One ties the corporate minimum tax to the gross income of a business, creating a quasi-gross receipts or sales tax without regard to whether or not the business is actually profitable. The other tax increases the income tax rate for income earners over $125,000 or an individual or $250,000 for a married couple filing jointly. Since many Oregon small businesses are not incorporated, this tax increase will also hit many small businesses. These tax increases are permanent.
Business groups (small and large, conservative and liberal) offered alternatives to the proposals passed by the Legislature. Specifically, business groups offered to support temporary tax increases to help the state during the recession. However, legislative leaders insisted on permanent tax increases. As a result, business groups are collectively opposing the tax increases and supporting a signature-gathering campaign to refer the tax increases to voters.
