senate Bill S3945

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

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 28 / Feb / 2013
    • REFERRED TO TRANSPORTATION
  • 08 / Jan / 2014
    • REFERRED TO TRANSPORTATION

Summary

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.

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Bill Details

See Assembly Version of this Bill:
A3872
Versions:
S3945
Legislative Cycle:
2013-2014
Current Committee:
Senate Transportation
Law Section:
Vehicle and Traffic Law
Laws Affected:
Amd §398-d, V & T L; amd §3411, Ins L
Versions Introduced in Previous Legislative Cycles:
2011-2012: A5042, A5042
2009-2010: A5964, A5964
2007-2008: A8494, A8494

Sponsor 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.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3945

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03823-01-3

S. 3945                             2

        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. 3945                             3

  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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