§§7-10 -

C.39:13-2.1

to 39:13-2.4

§11 - Note to

§§1-10


P.L. 2001, CHAPTER 53, approved April 10, 2001

Assembly, No. 1957 (Third Reprint)

(Corrected Copy)

 

An Act concerning licensing of auto body repair facilities 3,amending P.L.1987, c.2803 and amending and supplementing P.L.1983, c.360.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. Section 1 of P.L.1983, c.360 (C.39:13-1) is amended to read as follows:

    1. For the purposes of this act:

    [a.] "Auto body repair facility" means a business or person who for compensation engages in the business of repairing, removing, [or] installing or painting integral component parts of [an engine, power train,] a chassis[,] or body of [an automobile] 1[a motor vehicle] 3[an automobile1] a motor vehicle3 damaged as a result of a collision.

    [b. "Automobile" means a private passenger automobile of a private passenger, station wagon, or van type that is owned or hired and is neither used as public or livery conveyance for passengers nor rented to others with a driver; and a motor vehicle with a pickup body, a delivery sedan or a panel truck or a camper type vehicle used for recreational purposes owned by an individual or by husband and wife who are residents of the same household, not customarily used in the occupation, profession or business of the insured other than farming or ranching. An automobile owned by a farm family copartnership or corporation which is principally garaged on a farm or ranch shall be considered a private passenger automobile owned by two or more relatives resident in the same household.]

    3[1"Automobile" means a private passenger automobile of a private passenger, station wagon, or van type that is owned or hired and is neither used as public or livery conveyance for passengers nor rented to others with a driver; and a motor vehicle with a pickup body, a delivery sedan or a panel truck or a camper type vehicle used for recreational purposes owned by an individual or by husband and wife who are residents of the same household, not customarily used in the occupation, profession or business of the insured other than farming or ranching. An automobile owned by a farm family copartnership or corporation which is principally garaged on a farm or ranch shall be considered a private passenger automobile owned by two or more relatives resident in the same household.1]3

    [c.] "Director" means the Director of the Division of Motor Vehicles in the Department of [Law and Public Safety] Transportation.

    1["Motor vehicle" means a vehicle as defined in R.S.39:1-1 and which is required to be registered with the Division of Motor Vehicles, excluding motorcycles.]1

    3"Motor vehicle" means a vehicle as defined in R.S. 39:1-1 and which is required to be registered with the Division of Motor Vehicles, excluding motorcycles.3

(cf: P.L.1985, c.148, s.22)

 

    32. Section 2 of P.L.1983, c.360 (C.39:13-2) is amended to read as follows:

    2. a. The director shall establish a system for the licensure of auto body repair facilities. This system may provide for licenses based upon the type or types of motor vehicles repaired by the facility and the equipment required for repair of the vehicles. At a minimum, the director shall provide for a full service auto body repair facility license, the qualifications for which are established under section 7 of this amendatory and supplementary act, and a automobile dealer sublet license, the qualifications for which are established under section 8 of this amendatory and supplementary act. All facilities licensed pursuant to this section may hold themselves out to the public as licensed auto body repair facilities.

    b. No person may engage in the business of an auto body repair facility unless it is licensed by the director. An auto body repair facility shall be licensed by the director upon submission and approval of an application and payment of a reasonable application fee sufficient to cover the cost of implementing the provisions of this act and to be prescribed by the director. The director may require biennial renewal of applications for licensure and may stagger the renewal dates and adjust the application fees accordingly. Revenue received from application fees and renewals shall be annually appropriated to the Department of Transportation for the use of the Division of Motor Vehicles in implementing and administering the provisions of P.L.1983, c.360 (C.39:13-1 et seq.), as amended and supplemented.3

(cf: P.L.1985, c. 148, s. 23)

 

    2[3.] 3[2.] 3.3 Section 4 of P.L.1983, c.360 (C.39:13-4) is amended to read as follows:

    4. The director may fine or refuse to grant or may suspend or revoke a license of an auto body repair facility for any of the following acts or omissions related to the conduct of the business of [auto body repair done by] the auto body repair facility:

    a. Making or authorizing any material written or oral statement which is known to be untrue or misleading;

    b. Causing or allowing a customer to sign any estimate for repairs which does not state the repairs requested by the customer or the [automobile's] 1[motor vehicle's] 3[automobile's1] motor vehicle's3 odometer reading at the time of repair;

    c. Failing to provide a customer with a copy of any estimate or document requiring his signature, as soon as a customer signs the estimate or document;

    d. Making false promises or representations intended to influence, persuade, or induce a customer to authorize a repair of [an automobile] 1[a motor vehicle] 3[an automobile1] a motor vehicle3 which has been damaged as a result of a collision;

    e. Giving an adjuster or appraiser directly or indirectly any gratuity or other consideration in connection with his appraisal service;

    f. Making appraisals of the cost of repairing [an automobile] 1[a motor vehicle] 3[an automobile1] a motor vehicle3 which has been damaged as a result of a collision through the use of photographs, telephone calls, or any manner other than personal inspection;

    g. Making an estimate for repairs or charging for repairs in such amount as to compensate the insured for the cost of the deductible applicable under 3[the]3 [automobile] 1[motor vehicle] 3[automobile1] an3 insurance policy;

    h. A pattern of conduct which includes any of the acts or omissions prohibited in this section or any other unconscionable or fraudulent commercial practice prohibited by the director pursuant to regulations promulgated under the provisions of this act;

    i. Failing to maintain its equipment and facilities in good operating condition, or failing to keep in force and effect any permits, accreditation 3, letter of credit3 or insurance required 3[before an auto body repair facility license may be granted] for licensure3;

    1[j. Operating an auto body repair facility without a license as required pursuant to section 2 of P.L.1983, c.360 (C.39:13-2).] j. Operating an auto body repair facility without a license as required pursuant to section 2 of P.L.1983, c.360 (C.39:13-2).1

(cf: P.L.1985, c.148, s.25)

 

    2[2. Section 3 of P.L.1983, c.360 (C.39:13-3) is amended to read as follows:

    3. The director shall, on his own initiative or in response to complaints, investigate on a continuing basis and gather evidence of violations of this act and of any regulation adopted pursuant to this act by auto body repair facilities.

    The director may contract with a private party to provide investigation, inspection and recommendation services to the division, provided the private party is experienced in the equipping and operation of auto body repair facilities, charges less for these services than the division would incur with its own employees and the director is satisfied that the services will be rendered fairly and solely in the best interests of the State of New Jersey. An auto body repair facility trade group or association may be considered by the director to provide these services.

(cf: P.L.1985, c.148, s.24)]2

 

    2[4.] 3[3.2] 4.3 Section 5 of P.L.1983, c.360 (C.39:13-5) is amended to read as follows:

    5. Upon refusal to grant a license or suspension or revocation of a license of an auto body repair facility, the director shall notify the auto body repair facility in writing by registered mail. The auto body repair facility shall be given a hearing by the director if, within [60] 30 days thereafter, it files with the director a written request for a hearing concerning the refusal to grant a license or suspension or revocation of the license.

(cf: P.L.1985, c.148, s.26)

 

    2[5.] 3[4.2] 5.3 Section 6 of P.L.1983, c.360 (C.39:13-6) is amended to read as follows:

    6. The director may issue and cause to be served, upon an auto body repair facility charged with a violation of P.L.1983, c.360 (C.39:13-1 et seq.), an order requiring the auto body repair facility to cease and desist 3[operations] from the violation3 and the director may impose upon an auto body repair facility violating this act a civil penalty of not more than [$2,000.00] $5,000 3[each]3for the first offense and not more than [$5,000.00] $20,000 3[each]3 for the second and each subsequent offense. The civil penalty shall be issued for and recovered by and in the name of the director and shall be collected and enforced by summary proceedings pursuant to 3["the penalty enforcement law" (N.J.S.2A:58-1 et seq.)] the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.) In the event of continued or serious violations, the director may suspend the license of the facility and require it to cease operations during the period of suspension3.

(cf: P.L.1985, c.148, s.27)

 

    2[6.] 3[5.2 (New section) There shall be two classes of auto body repair facility licenses, a full service license and 1[a motor vehicle] an automobile1 dealer sublet license. Auto body repair facilities holding a license issued prior to the effective date of this amendatory and supplementary act shall have 1[one year from that date] until the expiration date of that license1 to satisfy the requirements for a full service or 1[motor vehicle] automobile1 dealer sublet license.]3

 

    36. Section 1 of P.L.1987, c.280 (C.39:13-8) is amended to read as follows:

    1. a. When a motor vehicle is repaired by an auto body repair facility as a result of damage to the vehicle and (1) the damage is reimbursable under a policy of insurance [under physical damage coverage, property damage coverage, or comprehensive coverage] or is otherwise reimbursable by a third party; and (2) the proceeds of the reimbursement are in the form of a negotiable instrument issued by an insurer or other payer which is payable jointly to the [insured] owner or lessee of the vehicle and a lienholder or lessor, the auto body repair facility shall provide the lienholder or lessor with a statement of the repairs which have been made to the vehicle, which statement shall be attested by an authorized representative of the auto body repair facility. The statement shall constitute proof to the lienholder or lessor that all repairs have been made by an auto body repair facility. A color photograph of the repaired vehicle shall accompany the statement.

    b. In the event that any lienholder or lessor should wish to inspect any motor vehicle to which repairs have been made as provided in subsection a. of this section, the lienholder or lessor shall conduct the inspection upon the premises of the auto body repair facility within [seven] three business days after receipt of the notice by certified mail that the repair has been completed. If an inspection is not made by a lienholder or lessor within the [seven-day] three-day period provided herein, the lienholder or lessor shall forfeit the right to make an inspection.

    c. In the event a lienholder or lessor shall sell any motor vehicle to which repairs have been made as provided in subsection a. of this section prior to the payment or reimbursement of the auto body repair facility which repaired that motor vehicle, except for the amounts due that lienholder or lessor under the provisions of a perfected lien or security interest, the amount due the auto body repair facility for those repairs shall supersede and have priority over all other liens or outstanding interests, including those payable by an insurer to the [person who insured] owner or lessee of the repaired motor vehicle. In such cases, if the insurer or other payor has received a statement and request demanding payment from the auto body repair facility, the proceeds, or portion thereof, shall be directed by the insurer or other payor to that auto body repair facility.

    d. No lienholder or lessor shall deduct any amount from the aggregate proceeds of a negotiable instrument that was issued by an insurer or other payor to reimburse an auto body repair facility which, pursuant to the provisions of subsection a. of this section, repaired a damaged motor vehicle, but which is payable jointly to the [insured] owner or lessee and the lienholder or lessor, for the purpose of paying any delinquent amounts or outstanding installments that the [insured] owner or lessee may owe to the lienholder or lessor for the motor vehicle that has been repaired, nor shall any lienholder or lessor unreasonably withhold the endorsement of such instrument or, following endorsement, refuse to transmit the endorsed instrument to the [insured] owner or lessee.

    For the purposes of this act, "auto body repair facility" shall mean an auto body repair facility as defined in section 1 of P.L.1983, c.360 (C.39:13-1).3

(cf: P.L.1989, c.273, s.1)

 

    2[7.] 3[6.2] 7.3 (New section) a. To qualify for a full service license an auto body repair facility shall:

    (1) Have a building suitable for the conduct of all operations within the building, and a Certificate of Occupancy for an auto body repair facility issued by the applicable zoning authority. In the absence of evidence to the contrary, public operation as an auto body repair facility for a continuous period of five years shall create a presumption of compliance;

    (2) Have all required licenses, permits and registrations required for the conduct of business including, but not limited to: a federal tax identification number; a New Jersey sales tax identification number; hazardous waste disposal systems 3that are in accordance with standards established by the State or federal government3; stack permits; and any other licenses, permits and registrations as the director may find applicable;

    (3) Maintain insurance 3[necessary to protect customers'] coverage for damage to3 property 3and for liability arising from bodily injury3, 3[and provide the public and employees with remedies for liability arising from the operation]3 including, but not limited to: garage keepers' liability insurance in a minimum amount of $300,000 3[or security]3 or a letter of credit in 3[that] the3 amount 3of $300,0003; workers' compensation insurance coverage in the amounts required pursuant to R.S.34:15-1 et seq.; 3[and]3 fire insurance 3, and any other coverage required by the director3;

    (4) Possess and maintain an auto body repair facility reference source for estimating the cost of repairs 3[in either book or computerized form which is accepted by the industry] , which reference source is generally accepted by the auto body repair industry. The reference source may be in either book or computerized form3;

    (5) Possess and maintain equipment to safely raise and support vehicles for inspection and repair;

    (6) Possess and maintain a metal inert gas welder;

    (7) Possess, maintain and utilize for all spray painting:

    (a) an enclosed area for refinishing which complies with all applicable safety, fire, environmental and other regulations;

    (b) the means to supply fresh air to workers within the spray area when using materials that require breathable air to be supplied; and

    (c) a filtration method to reduce particles from the air exhausted from the spray area which is 3[accepted by the industry] established in accordance with standards established by the State or federal government3;

    (8) Have equipment 3necessary to perform3 or the means 3for performing3 structural repair including, but not limited to: equipment to make multiple body and chassis pulls to straighten damaged vehicle components; equipment to anchor a unibody vehicle at four points; a three dimensional measuring device suitable to measure structural dimensions of symmetrical and non-symmetrical vehicles; and dimensional guides appropriate to the vehicles being repaired;

    (9) Have equipment 3necessary to perform3 or the means for performing vehicle four-wheel alignment;

    (10) Have (a) equipment 3necessary to perform3 or the means for 3performing3 vehicle air conditioner servicing including the means to evacuate, recycle, and recharge refrigerants and (b) a technician-employee certified to perform such repairs;

    (11) Have equipment 3necessary to perform3 or the means 3[to make collision related] for performing3 mechanical repairs 3necessitated by collision damage3; and

    (12) Provide evidence that at least one employee or ten (10%) percent, whichever is greater, of the employees performing repairs at the auto body repair facility have completed a recognized auto body repair related training course during the year immediately preceding the application for or renewal of licensure as a full service auto body repair facility. Training courses available through ICAR (Inter-Industry Conference on Auto Collision Repair) 3, the manufacturer's representative3 or 3[any other group approved by the director shall qualify to satisfy this requirement] a generally recognized auto body repair training program shall qualify to satisfy the requirement3.

    b. 3[An applicant for a full service auto body repair facility license which does not 2[have the equipment to satisfy] meet2 the requirements of 2subparagraphs (8), (9), (10) and (11) of2 subsection a. of this section may satisfy those requirements provided the auto body repair facility has entered into 2and maintains2 a written agreement 2or agreements2 to have 2[the auto body repairs] that work2 performed by an 2[auto body repair facility that is licensed as a full service auto body repair facility pursuant to the provisions of P.L.1983, c.360 (C.39:13-1 et seq.) and this amendatory and supplementary act.] entity that meets the requirements of subparagraphs (8), (9), (10), or (11) of subsection a. of this section2.] An auto body repair facility may, however, qualify for a full service license if it meets all of the conditions established by paragraphs (1), (2), (3), (4), (5), (6), (7) and (12) of subsection a. of this section and has a written agreement to subcontract with another autobody repair facility licensee or other party to perform the work for which the equipment set forth in paragraphs (8), (9), (10) or (11) of subsection a. of this section is required provided, however, that the other party meets the requirements set forth in those paragraphs with regard to equipment or the means for performing the required tasks and training.3

 

    2[8.] 3[7.2] 8.3 (New section) A person 3[that] which3 sells new 1[motor vehicles] automobiles1 under an agreement with 1[a motor vehicle] an automobile1 manufacturer and 3[that]3 does not satisfy the equipment requirements of section 7 of this amendatory and supplementary act may qualify for 1[a motor vehicle] an automobile1 dealer sublet license provided that the 1[motor vehicle] automobile1 dealer agrees in the sublet license application to use only auto body repair facilities licensed pursuant to the provisions of section 7 of this amendatory and supplementary act to perform auto body repairs1.

 

    2[9.] 3[8.2] 9.3 (New section) Applications for a 3new or renewal3 full service auto body repair facility license or 1[a motor vehicle] 3[an automobile1] a motor vehicle3 dealer sublet license shall be reviewed by the director and a license issued or denied within 90 days following receipt by the director of the completed application and supporting documents. 3Applicants for renewal or initial licensure filed after the effective date of this amendatory and supplementary act shall certify that the applicant has met the requirements of the act. Auto body repair facilities holding a license issued prior to the effective date of this amendatory and supplementary act shall be subject to the provisions of the act on the first renewal date of the license established by the director. The director may extend licenses issued under the provisions of P.L.1983, c.360 (C.39:13-1 et seq.), pending renewal of the licenses pursuant to the terms and conditions established by this amendatory and supplementary act. No later than the 45th day following the effective date of this amendatory and supplementary act, the director shall notify all licensed auto body repair facilities of the terms, conditions and requirements of the act.3

 

    2[10.] 3[9.2] 10.3 (New section) Within 1[180] 3601 days of the effective date of this amendatory and supplementary act the director shall promulgate regulations, in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to implement the provisions of this amendatory and supplementary act and to revise any existing regulations to make them consistent herewith.

 

    2[11. 3[10.2] 11.3 This act shall take effect on the 1[180th] 360th1 day following enactment, except that section 10 shall take effect immediately.

 

 

 

Concerns licensing of auto body repair facilities.