BILL NUMBER: SB 350	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 31, 2009

INTRODUCED BY   Senator Yee

                        FEBRUARY 25, 2009

   An act to amend Section 9875.1 of the Business and Professions
 Code, and to amend Section 27317 of the Vehicle 
Code, relating to motor vehicle insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 350, as amended, Yee.  Motor vehicle insurance:
automobile repairs: restraint systems.   Aftermarket
crash parts. 
   Existing law prohibits an insurer from requiring the use of
nonoriginal equipment manufacturer aftermarket crash parts in the
repair of an insured's motor vehicle unless the  insured
  consumer  is advised in a written estimate before
repairs are made that nonoriginal equipment manufacturer aftermarket
crash parts will be used. 
   This bill would, in addition to the advisement, prohibit the use
of the nonoriginal equipment manufacturer aftermarket crash parts
unless the parts are also at least of like kind and quality to the
parts being replaced, as specified.  
   Existing law makes it a misdemeanor for any person to install or
reinstall for compensation any previously deployed air bag that is
part of an inflatable restraint system if the person knew that the
air bag had been previously deployed.  
   This bill would, in addition, make it a misdemeanor for any person
to install or reinstall for compensation any previously damaged air
bag that is part of an inflatable restraint system if the person knew
that the air bag had been previously damaged. This bill would also
make it a misdemeanor for any person who has actual knowledge that
the airbag portion of an inflatable restraint system has been
previously deployed or damaged to cause another person to fail to
fully restore, arm, and return the airbag to original operating
condition, as specified. 
   Because this bill would expand the definition of an existing
crime, it would impose a state-mandated local program. 

   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   This bill would, in addition, prohibit the use of nonoriginal
equipment manufacturer aftermarket crash parts unless the insurer
warrants that those parts are at least equal to the original
equipment manufacturer parts in terms of kind, quality, safety, fit,
and performance and shall pay the cost of any modifications to those
parts necessary to effect the repair. The bill would also require all
original and nonoriginal equipment manufacturer aftermarket crash
parts, manufactured on or after January 1, 2010, when supplied by
auto body repair shops, to contain specified identification. 
   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . State-mandated local program:  yes
  no  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 9875.1 of the  
Business and Professions Code   is amended to read: 
   9875.1.   (a)    No insurer shall require the
use of nonoriginal equipment manufacturer aftermarket crash parts in
the repair of an insured's motor vehicle, unless  all of 
the  following requirements are met: 
    (1)     The insurer warrants t  
hat the nonoriginal equipment manufactu   rer after 
 market   crash parts are at least equal to the original
equipment manufacturer parts in terms of kind, quality, safety, fit,
and performance. 
    (2)     The insurer shall pay the cost of
any modifications to the parts that may become necessary to effect
the repair. 
    (3)     The insurer shall advise the 
consumer  is advised  in a written estimate of the
use of nonoriginal equipment manufacturer aftermarket crash parts
before repairs are made. In all instances where nonoriginal equipment
manufacturer aftermarket crash parts are intended for use by an
insurer: 
   (a) 
    (A)  The written estimate shall clearly identify each
such part with the name of its nonoriginal equipment manufacturer or
distributor. 
   (b) 
    (B)  A disclosure document containing the following
information in 10-point type or larger type shall be attached to the
insured's copy of the estimate: "This estimate has been prepared
based on the use of crash parts supplied by a source other than the
manufacturer of your motor vehicle. Any warranties applicable to
these replacement parts are provided by the manufacturer or
distributor of the parts, rather than by the original manufacturer of
your vehicle." 
   (b) All original and nonoriginal equipment manufacturer
aftermarket crash parts, manufactured on or after January 1, 2010,
when supplied by auto body repair shops, as defined in Section
9889.51, shall carry sufficient permanent, nonremovable
identification so as to identify the manufacturer, and this
identification shall be accessible to the greatest extent possible
after installation.  
  SECTION 1.    Section 9875.1 of the Business and
Professions Code is amended to read:
   9875.1.  An insurer shall not require the use of nonoriginal
equipment manufacturer aftermarket crash parts in the repair of an
insured's motor vehicle, unless the aftermarket crash parts are at
least of like kind and quality to the part being replaced in terms of
fit, function, and finish. Aftermarket replacement crash parts
certified to meet the standards set by an American National Standards
Institute (ANSI) recognized entity shall be presumed to be at least
of like kind and quality as the part being replaced in terms of fit,
function, and finish. The insurer shall advise the consumer in a
written estimate of the use of nonoriginal equipment manufacturer
aftermarket crash parts before repairs are made. In all instances
where nonoriginal equipment manufacturer aftermarket crash parts are
intended for use by an insurer:
   (a) The written estimate shall clearly identify each such part
with the name of its nonoriginal equipment manufacturer or
distributor.
   (b) A disclosure document containing the following information in
10-point type or larger type shall be attached to the insured's copy
of the estimate: "This estimate has been prepared based on the use of
crash parts supplied by a source other than the manufacturer of your
motor vehicle. Any warranties applicable to these replacement parts
are provided by the manufacturer or distributor of the parts, rather
than by the original manufacturer of your vehicle." 

  SEC. 2.    Section 27317 of the Vehicle Code is
amended to read:
   27317.  A person who has actual knowledge that the airbag portion
of an inflatable restraint system has been previously deployed or
damaged and who installs or reinstalls for compensation, or who
distributes or sells any previously deployed or damaged air bag that
is part of an inflatable restraint system, or who causes another
person to fail to fully restore, arm, and return the airbag to
original operating condition, is guilty of a misdemeanor punishable
by a fine of five thousand dollars ($5,000) or by confinement in the
county jail for one year or by both that fine and confinement.
 
  SEC. 3.    No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.