Bill S3945-2013

Relates to requiring disclosure of types of replacement parts used in automobile collision repairs

Requires motor vehicle repair shops to disclose types of replacement parts used in automobile collision repairs and provides a disclosure form to be signed by the owner consenting to the use of any such parts; forbids use of any other parts except new original equipment manufacturer parts on any vehicle during the first year of its manufacture and for the two years following.

Details

Actions

  • Jan 8, 2014: REFERRED TO TRANSPORTATION
  • Feb 28, 2013: REFERRED TO TRANSPORTATION

Memo

BILL NUMBER:S3945

TITLE OF BILL: An act to amend the vehicle and traffic law and the insurance law, in relation to requiring types of replacement crash parts used in automobile collision repairs be disclosed to vehicle owners and written authorization to use specified parts be obtained prior to installation

PURPOSE OR GENERAL IDEA OF BILL: To require disclosure to motor vehicle owners of information on certain replacement crash parts for repairs to their motor vehicles and to prevent both motor vehicle repair shops and insurance companies from requiring the use of aftermarket parts for repair unless the owner of the vehicle consents in writing at the time of the repair.

SUMMARY OF SPECIFIC PROVISIONS: Amends section 398-d of the vehicle and traffic law by adding a new subdivision 2-a which prohibits motor vehicle repair shops from using or installing any type of replacement crash part for the repair of a collision damaged motor vehicle without disclosing the type of replacement crash parts to the owner of the vehicle and obtaining written authorization therefore. A Replacement Crash Parts Notice and Authorization Form is also provided in the amendment, listing the type of replacement crash part proposed to be used, the applicable warranties and notice of whether new original equipment manufacturer (OEM) replacement parts, new aftermarket replacement crash parts, recycled replacement crash parts or re-manufactured replacement crash parts will be used in the repair.

Amends section 3411 of the insurance law by adding a new subdivision (n) to prohibit insurers from directly or indirectly requiring the use or installation of any type of replacement crash part for the repair of a collision damaged vehicle without disclosing the type of replacement part to the owner of the vehicle. In addition, provides that only new original equipment manufacturer (OEM) replacement crash parts may be used on any vehicle during the year of manufacture and for two succeeding years thereafter, or the duration of the warranty, whichever is longer. In the event non-OEM parts are used or installed, and such parts are ill-fitting or require additional labor or materials in their installation or use, the insurer shall be responsible for the cost of such additional labor and materials.

JUSTIFICATION: The consuming public is often confused by the many types of replacement crash parts which are available to be used in the repair of their collision damaged vehicles. This confusion is heightened when some insurers direct the use or installation of parts other than original equipment manufacturer (OEM) replacement crash parts. As a matter of public policy, the use of genuine crash parts (parts manufactured by or for the company that manufactured the vehicle itself) should be required to assure quality, safe repairs. Studies have shown that some alternative parts create unnecessary safety risks due to improper fitting. These risks must be avoided in the interest of the consuming public.

This bill would require the use or installation of OEM parts on all vehicles during the year of manufacture and for two years thereafter, or the duration of the vehicle's warranty, whichever is longer. No

insurance company may require the use of imitation or salvage parts when negotiating repairs on such a vehicle with any repairer. For all other vehicles, the repair shops and insurers would be under a strict duty to disclose to the vehicle owner information on the use of certain replacement crash parts in repairs so that owners may choose whether imitation (aftermarket) crash parts, used salvage (junkyard) parts, or new genuine crash parts shall be used in the repair. By removing an insurer's ability to direct the use of certain parts in the repair of a collision damaged vehicle, the consumer's right of choice is preserved and his ability to make informed decisions is further enhanced.

LEGISLATIVE HISTORY:

(2006) A11238: Referred to transportation (2007) A2885: Referred to transportation (2007) A2885: Enacting clause stricken (2007) A8494: Referred to transportation (2008) A8494: Referred to transportation (2009) A5964: Referred to transportation (2010) A5964: Referred to transportation (2011-12) A.5042: Referred to transportation

FISCAL IMPLICATIONS: None noted.

EFFECTIVE DATE: This act shall take effect on the first of January next succeeding the date on which it shall have become a law, provided, however, that effective immediately, the commissioner of motor vehicles and the superintendent of insurance shall promulgate such rules and regulations as are necessary to implement the provisions of this act on or before such date.


Text

STATE OF NEW YORK ________________________________________________________________________ 3945 2013-2014 Regular Sessions IN SENATE February 28, 2013 ___________
Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Transportation AN ACT to amend the vehicle and traffic law and the insurance law, in relation to requiring types of replacement crash parts used in automo- bile collision repairs be disclosed to vehicle owners and written authorization to use specified parts be obtained prior to installation THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 398-d of the vehicle and traffic law is amended by adding a new subdivision 2-a to read as follows: 2-A. (A) NO MOTOR VEHICLE REPAIR SHOP SHALL USE OR INSTALL ANY TYPE OR TYPES OF REPLACEMENT CRASH PARTS FOR THE REPAIR OF A COLLISION DAMAGED VEHICLE WITHOUT DISCLOSING THE TYPE OR TYPES OF REPLACEMENT CRASH PARTS TO THE VEHICLE OWNER OR THE VEHICLE OWNER'S AUTHORIZED REPRESENTATIVE AND OBTAINING WRITTEN AUTHORIZATION THEREFROM. THE FOLLOWING "REPLACE- MENT CRASH PARTS NOTICE AND AUTHORIZATION FORM", REPRODUCED IN 12 POINT TYPE OR LARGER, SHALL BE ATTACHED TO A COPY OF THE COLLISION REPAIR ESTIMATE AND SHALL BE SIGNED BY THE VEHICLE OWNER OR THE VEHICLE OWNER'S AUTHORIZED REPRESENTATIVE PRIOR TO THE USE OR INSTALLATION OF ANY SUCH PARTS: REPLACEMENT CRASH PARTS NOTICE AND AUTHORIZATION FORM NOTICE TO CONSUMER: 1. "REPLACEMENT CRASH PARTS" ARE THE PARTS WHICH ARE TYPICALLY REPLACED DURING THE REPAIR OF A DAMAGED VEHICLE. THESE PARTS ARE MADE OF SHEET METAL, PLASTIC, FIBERGLASS OR SIMI- LAR MATERIAL, INCLUDING A DOOR, FENDER, PANEL, BUMPER, HOOD, FLOOR OR TRUNK LID, BUT NOT INCLUDING WINDOWS OR HUBCAPS, AND CONSTITUTE OR PROVIDE SUPPORT FOR THE MOTOR VEHICLE'S EXTERIOR.
2. THE TYPE(S) OF REPLACEMENT CRASH PARTS LISTED ON YOUR ESTIMATE/REPAIR ORDER # (COPY ATTACHED) ARE FROM THE CATE- GORIES CHECKED BELOW. 3. WARRANTIES FOR THE TYPE(S) OF REPLACEMENT PARTS LISTED BELOW ARE PROVIDED BY THE MANUFACTURER OR DISTRIBUTOR OF THE REPLACEMENT PARTS. WARRANTY COVERAGE VARIES. ASK YOUR INSURER OR COLLISION REPAIR PROFESSIONAL FOR SPECIFIC, WRITTEN WARRANTY INFORMATION. ADDITIONAL WARRANTIES FOR REPLACEMENT CRASH PARTS WILL BE PROVIDED BY . 4. REPLACEMENT CRASH PARTS TYPES: ( ) NEW ORIGINAL EQUIPMENT MANUFACTURER (OEM) REPLACEMENT CRASH PARTS: PARTS WHICH ARE MADE BY THE VEHICLE MANUFACTURER OR ONE OF ITS LICENSEES AND DISTRIBUTED THROUGH ITS NORMAL CHANNELS. THESE PARTS MAINTAIN THE OEM VEHICLE FACTORY WARRANTY FOR THE REPLACED PARTS AND ANY OTHER ADJOINING OR ASSOCIATED OEM PART OR SYSTEMS. ( ) NEW AFTERMARKET REPLACEMENT CRASH PARTS: PARTS WHICH ARE MADE BY COMPANIES OTHER THAN THE VEHICLE MANUFACTURER OR ITS LICENSEE. ALL PARTS IN THIS CATEGORY ARE WARRANTED BY THE DISTRIBUTOR AND/OR MANUFACTURER OF THESE PARTS. ( ) RECYCLED/RECYCLABLE REPLACEMENT CRASH PARTS: USED PARTS WHICH HAVE BEEN REMOVED FROM ANOTHER VEHICLE. ALL PARTS IN THIS CATEGORY ARE WARRANTED BY THE SALVAGE VENDOR. ( ) RE-MANUFACTURED REPLACEMENT CRASH PARTS: PARTS WHICH HAVE BEEN RETURNED TO LIKE-NEW CONDITION BY REPAIRING, RE-MA- CHINING OR RE-BUILDING. ALL PARTS IN THIS CATEGORY ARE WARRANTED BY THE RE-MANUFACTURER OF THE PART. I UNDERSTAND THAT MY VEHICLE WILL BE REPAIRED USING THE PARTS DESCRIBED ABOVE, AND I AUTHORIZE THE REPAIR SHOP TO INSTALL THOSE PARTS. _____________________________________ ____________________ CUSTOMER SIGNATURE DATE (B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI- SION, ONLY NEW ORIGINAL EQUIPMENT MANUFACTURER (OEM) REPLACEMENT CRASH PARTS MAY BE USED ON ANY VEHICLE DURING THE YEAR OF MANUFACTURE AND FOR THE TWO SUCCEEDING YEARS THEREAFTER, OR FOR THE DURATION OF THE VEHICLE MANUFACTURER'S NEW-VEHICLE AND/OR SHEET-METAL OR BODY PARTS WARRANTY, WHICHEVER IS LONGER. S 2. Subsection (n) of section 3411 of the insurance law is relettered subsection (o) and a new subsection (n) is added to read as follows: (N) NO INSURER SHALL DIRECTLY OR INDIRECTLY REQUIRE THE USE OR INSTAL- LATION OF ANY TYPE OR TYPES OF REPLACEMENT CRASH PART FOR THE REPAIR OF A COLLISION DAMAGED VEHICLE, WITHOUT DISCLOSING THE TYPE OR TYPES OF REPLACEMENT CRASH PARTS TO THE VEHICLE OWNER OR THE VEHICLE OWNER'S AUTHORIZED REPRESENTATIVE, AS PROVIDED IN SUBDIVISION TWO-A OF SECTION THREE HUNDRED NINETY-EIGHT-D OF THE VEHICLE AND TRAFFIC LAW. IN ADDI- TION, ONLY NEW ORIGINAL EQUIPMENT MANUFACTURER (OEM) REPLACEMENT CRASH PARTS MAY BE USED ON ANY VEHICLE DURING THE YEAR OF MANUFACTURE AND FOR TWO SUCCEEDING YEARS THEREAFTER, OR FOR THE DURATION OF THE VEHICLE MANUFACTURER'S NEW VEHICLE AND/OR SHEET-METAL OR BODY PARTS WARRANTY, WHICHEVER IS LONGER. IN THE EVENT REPLACEMENT CRASH PARTS ARE USED OR INSTALLED WHICH ARE OTHER THAN NEW ORIGINAL EQUIPMENT MANUFACTURER (OEM) REPLACEMENT CRASH PARTS, AND SUCH PARTS ARE ILL-FITTING AND REQUIRE ADDITIONAL LABOR AND MATERIALS IN THEIR INSTALLATION OR USE, THE INSURER SHALL BE RESPONSIBLE FOR THE COST OF SUCH ADDITIONAL LABOR AND MATERI- ALS.
S 3. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a law, provided, however, that effective immediately, the commissioner of motor vehicles and the superintendent of insurance shall promulgate such rules and regulations as are necessary to implement the provisions of this act on or before such date.

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