BILL NUMBER: SB 350	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 12, 2010
	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   repeal   Chapter 20.1 (commencing
with Section 9875) of Division 3 of the Business and Professions
Code, and to add Section 790.20 to the Insurance  Code, relating
to motor vehicle insurance.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 350, as amended, Yee. 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 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,   instead
 prohibit the use of nonoriginal equipment manufacturer
aftermarket crash parts unless  the insurer warrants that
those   specified requirements are met, including 
parts are at least equal to the original equipment manufacturer parts
in terms of kind, quality, safety, fit, and performance  and
shall pay   ; the insurer so warrants; the insurer pays
 the cost of any modifications to those parts necessary to
effect the repair  . The bill would also require 
 ; and  all original and nonoriginal equipment manufacturer
aftermarket crash parts, manufactured on or after January 1, 
2010,   2011,  when supplied by auto body repair
shops  , to  contain specified identification.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

   SECTION 1.    Chapter 20.1 (commencing with Section
9875) of Division 3 of the   Business and Professions Code
  is repealed. 
   SEC. 2.    Section 790.20 is added to the  
Insurance Code   , to read:  
   790.20.  (a) An insurer shall not 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 parts are at least equal to the original equipment
manufacturer parts in terms of kind, quality, safety, fit, and
performance.
   (2) The insurer specifying the use of nonoriginal equipment
manufacturer aftermarket crash parts shall pay the cost of any
modifications to the parts that may become necessary to effect the
repair.
   (3) The insurer specifying the use of nonoriginal equipment
manufacturer aftermarket crash parts shall warrant that those parts
are of like kind, quality, safety, fit, and performance as original
equipment manufacturer aftermarket crash parts.
   (4) All original and nonoriginal equipment manufacturer
aftermarket crash parts, manufactured on or after January 1, 2011,
when supplied by auto body repair shops, as defined in Section
9889.51 of the Business and Professions Code, shall carry sufficient
permanent, nonremovable identification so as to identify the
manufacturer. This identification shall be accessible to the greatest
extent possible after installation.
   (b) For purposes of this section, the following definitions shall
apply:
   (1) "Aftermarket crash part" means a replacement for any of the
nonmechanical sheet metal or plastic parts that generally constitute
the exterior of a motor vehicle, including inner and outer panels.
   (2) "Insurer" includes an insurance company and any person
authorized to represent the insurer with respect to a claim.
   (3) "Nonoriginal equipment manufacturer aftermarket crash part"
means aftermarket crash parts not made for or by the manufacturer of
the motor vehicle.
   (c) Any violation of this section shall be enforced pursuant to
Section 790.06.  
  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 that the nonoriginal equipment
manufacturer aftermarket 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 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."
   (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.