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

                                  8005

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               May 1, 2009
                               ___________

Introduced  by M. of A. COOK, PERRY, CAHILL, CHRISTENSEN, GREENE, ENGLE-
  BRIGHT -- Multi-Sponsored by -- M. of A. BENJAMIN, COLTON, CYMBROWITZ,
  FARRELL, HOOPER, MARKEY, McENENY, ORTIZ, PHEFFER, TOWNS --  read  once
  and referred to the Committee on Insurance

AN  ACT  to amend the insurance law, the vehicle and traffic law and the
  general business law, in relation to enacting the crash repair disclo-
  sure act

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  This  act  shall  be known and may be cited as the "crash
repair disclosure act".
  S 2. Subsection (b) of section 2402 of the insurance law,  as  amended
by chapter 631 of the laws of 2007, is amended to read as follows:
  (b)  "Defined  violation"  means  the commission by a person of an act
prohibited by: section one thousand two hundred fourteen,  one  thousand
two  hundred  seventeen,  one  thousand two hundred twenty, one thousand
three hundred thirteen, subparagraph (B) of paragraph two of  subsection
(i)  of  section one thousand three hundred twenty-two, subparagraph (B)
of paragraph two of subsection (i) of section one thousand three hundred
twenty-four, two thousand  one  hundred  twenty-two,  two  thousand  one
hundred  twenty-three,  subsection  (p)  of  section  two thousand three
hundred thirteen, section two thousand three  hundred  twenty-four,  two
thousand five hundred two, two thousand five hundred three, two thousand
five  hundred  four,  two  thousand  six  hundred  one, two thousand six
hundred two, two thousand six hundred three, two  thousand  six  hundred
four,  two  thousand  six hundred six, two thousand seven hundred three,
three  thousand  one  hundred   nine,   three   thousand   two   hundred
twenty-four-a, THREE THOUSAND FOUR HUNDRED ELEVEN-A, three thousand four
hundred twenty-nine, three thousand four hundred thirty-three, paragraph
seven  of  subsection (e) of section three thousand four hundred twenty-
six, four thousand two hundred twenty-four, four  thousand  two  hundred

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01185-01-9
              

A. 8005                             2

twenty-five  or four thousand two hundred twenty-six of this chapter; or
section 135.60, 135.65,  175.05,  175.45,  or  190.20,  or  article  one
hundred five of the penal law.
  S  3.  The  insurance law is amended by adding a new section 3411-a to
read as follows:
  S 3411-A. CRASH REPAIR DISCLOSURE; REQUIREMENTS. (A) AS USED  IN  THIS
SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (1)  "CRASH  PART"  MEANS  A REPLACEMENT FOR ANY OF THE NON-MECHANICAL
PARTS MADE OF SHEET METAL, PLASTIC, FIBERGLASS OR  OF  SIMILAR  MATERIAL
WHICH  GENERALLY  CONSTITUTE  THE EXTERIOR OF A MOTOR VEHICLE, INCLUDING
THE FOLLOWING PARTS: OUTER PANELS, HOODS, FENDERS,  DOORS,  TRUNK  LIDS,
EXTERIOR COVERINGS OF BUMPERS BUT NOT INCLUDING WINDOWS OR HUBCAPS.
  (2)  "NON-ORIGINAL  EQUIPMENT MANUFACTURER (NON-OEM) CRASH PART" MEANS
CRASH PARTS NOT MADE FOR OR BY THE MANUFACTURER OF THE MOTOR VEHICLE.
  (3) "ORIGINAL EQUIPMENT MANUFACTURER (OEM)  CRASH  PART"  MEANS  CRASH
PARTS MADE FOR OR BY THE MANUFACTURER OF THE MOTOR VEHICLE.
  (4)  "RECYCLED  CRASH PARTS" MEANS CRASH PARTS WHICH HAVE BEEN REMOVED
FROM A SALVAGE VEHICLE.
  (5) "REMANUFACTURED CRASH PART" MEANS  CRASH  PARTS  WHICH  HAVE  BEEN
RETURNED TO LIKE-NEW CONDITION BY REPAIRING, REMACHINING OR REBUILDING.
  (B)  NO INSURER SHALL OFFER AUTOMOBILE PHYSICAL DAMAGE INSURANCE POLI-
CIES COVERING PRIVATE PASSENGER AUTOMOBILES FOR DELIVERY IN  THIS  STATE
UNLESS  SUCH  POLICY  SHALL INCLUDE A DISCLOSURE DOCUMENT THAT INCLUDES,
BUT IS NOT LIMITED TO, THE FOLLOWING IN TEN POINT TYPE OR LARGER:
  "IN THE COLLISION REPAIR INDUSTRY THERE ARE FOUR TYPES OF CRASH PARTS:
  * NON-ORIGINAL EQUIPMENT MANUFACTURER (NON-OEM) CRASH  PARTS  ARE  NOT
MADE FOR OR BY THE MANUFACTURER OF THE MOTOR VEHICLE.
  *ORIGINAL  EQUIPMENT MANUFACTURER (OEM) CRASH PARTS ARE MADE FOR OR BY
THE MANUFACTURER OF THE MOTOR VEHICLE.
  *RECYCLED CRASH PARTS ARE PARTS WHICH HAVE BEEN REMOVED FROM A SALVAGE
OR WRECKED VEHICLE FOR REUSE.
  *REMANUFACTURED CRASH PARTS ARE PARTS  WHICH  HAVE  BEEN  RETURNED  TO
LIKE-NEW CONDITION BY REPAIRING, REMACHINING OR REBUILDING."
  FOLLOWING  THESE  DEFINITIONS,  THE POLICY SHALL DISCLOSE THE TYPES OF
CRASH PARTS THAT WOULD BE  PROVIDED  FOR  IN  THE  REPAIR  OF  COLLISION
DAMAGE.  SUCH  DISCLOSURE  SHALL  INCLUDE  CONDITIONS  AND CIRCUMSTANCES
GOVERNING WHEN THE RESPECTIVE TYPES OF CRASH PARTS WILL BE USED.
  (C) AT THE EARLIER OF THE TIME OF THE INSURER OFFER ON  THE  CLAIM  OR
THE  INSPECTION  OF THE DAMAGED VEHICLE, AN INSURER SHALL PROVIDE A COPY
OF THE DISCLOSURE DOCUMENT AS  SET  FORTH  IN  SUBSECTION  (B)  OF  THIS
SECTION.
  S 4. Section 398-d of the vehicle and traffic law is amended by adding
a new subdivision 2-a to read as follows:
  2-A.  IN  ADDITION  TO THE REQUIREMENTS OF SUBDIVISIONS ONE AND TWO OF
THIS SECTION, ON OR ATTACHED TO THE INVOICE AND, ON OR  ATTACHED  TO  AN
ESTIMATE  PROVIDED  AT  THE REQUEST OF ANY CUSTOMER BEFORE THE REPAIR IS
BEGUN, A MOTOR VEHICLE REPAIR SHOP SHALL:
  (A) PROVIDE A WRITTEN STATEMENT CLEARLY IDENTIFYING  THE  MANUFACTURER
AND/OR  DISTRIBUTOR OF EACH CRASH PART. IF THE CRASH PART IS RECYCLED OR
REMANUFACTURED THE SOURCE OF THE PART SHALL BE IDENTIFIED;
  (B) DISCLOSE ANY APPLICABLE WARRANTIES FOR CRASH PARTS TO BE  USED  IN
THE REPAIR; AND
  (C)  INCLUDE  ON  OR  ATTACHED TO THE ESTIMATE OR INVOICE A DISCLOSURE
DOCUMENT CONTAINING THE FOLLOWING INFORMATION  IN  TEN-POINT  OR  LARGER
TYPE:  "THIS ESTIMATE/INVOICE HAS BEEN PREPARED BASED ON THE REPLACEMENT
OF PARTS WHICH MAY HAVE BEEN WARRANTED BY THE MANUFACTURER OF YOUR VEHI-

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CLE. YOUR VEHICLE WARRANTY WILL NOT COVER ANY PARTS  BEING  REPLACED  IN
THIS  REPAIR.  WARRANTIES  APPLICABLE  TO  THESE  REPLACEMENT  PARTS ARE
PROVIDED BY THE PART'S MANUFACTURER OR DISTRIBUTOR. THE USE OF  NON-ORI-
GINAL  EQUIPMENT MANUFACTURER PARTS WILL NOT AFFECT THE VEHICLE MANUFAC-
TURER'S WARRANTY FOR PARTS NOT AFFECTED BY THIS REPAIR."
  THE DISCLOSURES REQUIRED BY THIS SUBDIVISION  SHALL  BE  MADE  BY  THE
MOTOR  VEHICLE  REPAIR  SHOP  WHICH  ACCEPTS PAYMENT FROM THE INSURED OR
THEIR INSURER FOR THE AUTHORIZED  REPAIR.  MOTOR  VEHICLE  REPAIR  SHOPS
WHICH  SUBCONTRACT COLLISION REPAIRS SHALL CONTINUE TO BE LIABLE FOR ALL
DISCLOSURES TO THE INSURED.
  S 5. The general business law is amended by adding a new section 399-i
to read as follows:
  S 399-I. REQUIRED IDENTIFICATION OF CRASH  PARTS.  ANY  MOTOR  VEHICLE
CRASH  PART SUPPLIED BY AN ORIGINAL EQUIPMENT MANUFACTURER OR A NON-ORI-
GINAL EQUIPMENT MANUFACTURER FOR INSTALLATION BY A MOTOR VEHICLE  REPAIR
SHOP  OR  AUTOBODY  SHOP  IN  THIS  STATE  SHALL HAVE AFFIXED THERETO OR
INSCRIBED THEREON THE NAME OR LOGO OF ITS MANUFACTURER.
  S 6. 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
any rules or regulations necessary for the timely implementation of this
act on its effective date are authorized and directed to be made  on  or
before such date.