S T A T E   O F   N E W   Y O R K
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                                  6817

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                             March 31, 2011
                               ___________

Introduced  by  M. of A. COOK, PERRY, CAHILL, ENGLEBRIGHT -- Multi-Spon-
  sored by -- M. of A.   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. Short title.  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 499 of the laws of 2009, 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.
                                                           LBD02516-01-1
              

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twenty-five, four thousand two hundred twenty-six, seven thousand  eight
hundred  nine,  seven  thousand  eight hundred ten, seven thousand eight
hundred eleven, seven thousand eight hundred  thirteen,  seven  thousand
eight  hundred fourteen and seven thousand eight hundred fifteen of this
chapter; or section 135.60, 135.65, 175.05, 175.45, or 190.20, or  arti-
cle 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

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  (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-
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-j
to read as follows:
  S  399-J.  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.