A06617 Summary:

BILL NOA06617
 
SAME ASSAME AS S05762
 
SPONSORTitone
 
COSPNSRCusick, Benedetto, Colton, Magnarelli, Brindisi, Abinanti, Skoufis, Murray, Oaks, Steck, Fahy
 
MLTSPNSRBraunstein, Englebright, Galef, Hooper, McDonald
 
Amd 398-d, V & T L; amd 3411, Ins L
 
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.
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A06617 Actions:

BILL NOA06617
 
03/10/2017referred to transportation
01/03/2018referred to transportation
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A06617 Memo:

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.
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A06617 Text:



 
                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 Signature              Date
    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.
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A06617 LFIN:

 NO LFIN
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