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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6617
SPONSOR: Titone (MS)
 
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 colli-
sion damaged motor vehicle without disclosing the type of replacement
crash parts to the owner of the vehicle and obtaining written authori-
zation 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 (o)
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 succeed-
ing 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 colli-
sion 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 poli-
cy, the use of genuine crash parts (parts manufactured by or for the
company that manufactured the vehicle itself) should f 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 insur-
ance 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 replace-
ment 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 abili-
ty 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.
 
PRIOR LEGISLATIVE HISTORY:
(2006) A.11238: Referred to transportation
(2007) A.2885: Referred to transportation
(2007) A.2885: Enacting clause stricken
(2007) A.8494: Referred to transportation
(2008) A.8494: Referred to transportation
(2009) A.5964: Referred to transportation
(2010) A.5964: Referred to transportation
(2011-12) A.5042: Referred to transportation
(2013-14) A3872 - Referred to Transportation
(2015-2016) A2880: 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 effec-
tive immediately, the commissioner of motor vehicles and the superinten-
dent of insurance shall promulgate such rules and regulations as are
necessary to implement the provisions of this act on or before such
date.
STATE OF NEW YORK
________________________________________________________________________
6617
2017-2018 Regular Sessions
IN ASSEMBLY
March 10, 2017
___________
Introduced by M. of A. TITONE, CUSICK, BENEDETTO, COLTON, MAGNARELLI,
BRINDISI, ABINANTI, SKOUFIS, MURRAY, OAKS, STECK -- Multi-Sponsored by
-- M. of A. ENGLEBRIGHT, GALEF, HOOPER, McDONALD -- read once and
referred 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:
1 Section 1. Section 398-d of the vehicle and traffic law is amended by
2 adding a new subdivision 2-a to read as follows:
3 2-a. (a) No motor vehicle repair shop shall use or install any type or
4 types of replacement crash parts for the repair of a collision damaged
5 vehicle without disclosing the type or types of replacement crash parts
6 to the vehicle owner or the vehicle owner's authorized representative
7 and obtaining written authorization therefrom. The following "Replace-
8 ment Crash Parts Notice and Authorization Form", reproduced in 12 point
9 type or larger, shall be attached to a copy of the collision repair
10 estimate and shall be signed by the vehicle owner or the vehicle owner's
11 authorized representative prior to the use or installation of any such
12 parts:
13 Replacement Crash Parts Notice and Authorization Form
14 NOTICE TO CONSUMER:
15 1. "Replacement crash parts" are the parts which are typically
16 replaced during the repair of a damaged vehicle. These
17 parts are made of sheet metal, plastic, fiberglass or simi-
18 lar material, including a door, fender, panel, bumper,
19 hood, floor or trunk lid, but not including windows or
20 hubcaps, and constitute or provide support for the motor
21 vehicle's exterior.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06783-01-7
A. 6617 2
1 2. The type(s) of replacement crash parts listed on your
2 estimate/repair order # (copy attached) are from the cate-
3 gories checked below.
4 3. Warranties for the type(s) of replacement parts listed below
5 are provided by the Manufacturer or Distributor of the
6 replacement parts. Warranty coverage varies. Ask your
7 insurer or collision repair professional for specific,
8 written warranty information. Additional warranties for
9 replacement crash parts will be provided by .
10 4. Replacement Crash Parts Types:
11 ( ) New Original Equipment Manufacturer (OEM) Replacement Crash
12 Parts: Parts which are made by the vehicle manufacturer or
13 one of its licensees and distributed through its normal
14 channels. These parts maintain the OEM Vehicle Factory
15 Warranty for the replaced parts and any other adjoining or
16 associated OEM part or systems.
17 ( ) New Aftermarket Replacement Crash Parts: Parts which are
18 made by companies other than the vehicle manufacturer or
19 its licensee. All parts in this category are warranted by
20 the distributor and/or manufacturer of these parts.
21 ( ) Recycled/recyclable Replacement Crash Parts: Used parts
22 which have been removed from another vehicle. All parts in
23 this category are warranted by the salvage vendor.
24 ( ) Re-manufactured Replacement Crash Parts: Parts which have
25 been returned to like-new condition by repairing, re-ma-
26 chining or re-building. All parts in this category are
27 warranted by the re-manufacturer of the part.
28 I understand that my vehicle will be repaired using the parts
29 described above, and I authorize the repair shop to install those parts.
30 _____________________________________ ____________________
31 Customer SignatureDate
32 (b) Notwithstanding the provisions of paragraph (a) of this subdivi-
33 sion, only new original equipment manufacturer (OEM) replacement crash
34 parts may be used on any vehicle during the year of manufacture and for
35 the two succeeding years thereafter, or for the duration of the vehicle
36 manufacturer's new-vehicle and/or sheet-metal or body parts warranty,
37 whichever is longer.
38 § 2. Subsection (n) of section 3411 of the insurance law is relettered
39 subsection (o) and a new subsection (n) is added to read as follows:
40 (n) No insurer shall directly or indirectly require the use or instal-
41 lation of any type or types of replacement crash part for the repair of
42 a collision damaged vehicle, without disclosing the type or types of
43 replacement crash parts to the vehicle owner or the vehicle owner's
44 authorized representative, as provided in subdivision two-a of section
45 three hundred ninety-eight-d of the vehicle and traffic law. In addi-
46 tion, only new original equipment manufacturer (OEM) replacement crash
47 parts may be used on any vehicle during the year of manufacture and for
48 two succeeding years thereafter, or for the duration of the vehicle
49 manufacturer's new vehicle and/or sheet-metal or body parts warranty,
50 whichever is longer. In the event replacement crash parts are used or
51 installed which are other than new original equipment manufacturer (OEM)
52 replacement crash parts, and such parts are ill-fitting and require
53 additional labor and materials in their installation or use, the insurer
54 shall be responsible for the cost of such additional labor and materi-
55 als.
A. 6617 3
1 § 3. This act shall take effect on the first of January next succeed-
2 ing the date on which it shall have become a law, provided, however,
3 that effective immediately, the commissioner of motor vehicles and the
4 superintendent of financial services shall promulgate such rules and
5 regulations as are necessary to implement the provisions of this act on
6 or before such date.