Senate Bill S5762

2017-2018 Legislative Session

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

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Archive: Last Bill Status - In Senate Committee Transportation Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to transportation
Apr 28, 2017	referred to transportation

co-Sponsors

2017-S5762 (ACTIVE) - Details

See Assembly Version of this Bill:: A6617
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 Other Legislative Sessions:: 2009-2010: A5964
2011-2012: A5042
2013-2014: S3945, A3872
2015-2016: S30, A2880
2019-2020: A3872
2021-2022: A1280
2023-2024: A59
2025-2026: A75

2017-S5762 (ACTIVE) - 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.

2017-S5762 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5762

 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; S.3945/A.3872 Referred
to transportation
(2013-14); S.30/A.2880 Referred to transportation

 FISCAL IMPLICATIONS :

None noted.

 EFFECTIVE DATE :
This act shall take effect on the first of January 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.

2017-S5762 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5762
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              April 28, 2017
                                ___________
 
 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.
                                                            LBD06783-01-7

 S. 5762                             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.
   § 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. 5762                             3
 
   §  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 financial services 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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Senate Bill S5762

Sponsored By

Archive: Last Bill Status - In Senate Committee Transportation Committee

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co-Sponsors

2017-S5762 (ACTIVE) - Details

2017-S5762 (ACTIVE) - Summary

2017-S5762 (ACTIVE) - Sponsor Memo

2017-S5762 (ACTIVE) - Bill Text download pdf

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Sponsored By

John A. DeFrancisco

Archive: Last Bill Status - In Senate Committee Transportation Committee

Actions

co-Sponsors

Terrence Murphy

Patty Ritchie

2017-S5762 (ACTIVE) - Details

2017-S5762 (ACTIVE) - Summary

2017-S5762 (ACTIVE) - Sponsor Memo

2017-S5762 (ACTIVE) - Bill Text download pdf

Comments