Assembly Bill A9082

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

                                  9082

                          I N  A S S E M B L Y

                            January 25, 2016
                               ___________

Introduced  by  M. of A. COOK, PERRY, CAHILL, ENGLEBRIGHT -- Multi-Spon-
  sored by -- M. of A.  COLTON,  CYMBROWITZ,  FARRELL,  HOOPER,  MARKEY,
  ORTIZ -- 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 section 71 of part A of chapter 62 of the laws of 2011, is amended to
read as follows:
  (b)  "Defined  violation"  means  the commission by a person of an act
prohibited by: subsection (a) of section one thousand one  hundred  two,
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 two, two thousand one hundred seventeen, two thou-
sand 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 twenty-five, four thousand two  hundred  twen-
ty-six,  seven thousand eight hundred nine, seven thousand eight hundred

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

                                                           LBD06635-02-6

A. 9082                             2

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 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

A. 9082                             3

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-k
to read as follows:
  S  399-K.  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.