BILL NUMBER: SB 350 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 15, 2010
AMENDED IN ASSEMBLY MARCH 8, 2010
AMENDED IN ASSEMBLY JANUARY 12, 2010
AMENDED IN SENATE MARCH 31, 2009
INTRODUCED BY Senator Yee
FEBRUARY 25, 2009
An act to repeal Sections 9875.1 and 9875.2 of, to repeal
and add Section 9875 of, and to 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
An act to add Section 9875.15 to the Business and
Professions Code, relating to aftermarket crash parts.
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 prohibit the use of nonoriginal
equipment manufacturer aftermarket crash parts unless specified
requirements are met, including that those parts are at least equal
to the original equipment manufacturer parts in terms of kind,
quality, safety, fit, and performance; the insurer so warrants; the
insurer pays the cost of any modifications to those parts necessary
to effect the repair; and all original and nonoriginal equipment
manufacturer aftermarket crash parts, manufactured on or after
January 1, 2011, when supplied by auto body repair shops 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. Section 9875.15 is added to the
Business and Professions Code , to read:
9875.15. 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:
(a) The parts are at least equal to the original equipment
manufacturer parts in terms of kind, quality, safety, fit, and
performance.
(b) 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.
(c) 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.
(d) 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.
SECTION 1. Section 9875 of the Business and
Professions Code is repealed.
SEC. 2. Section 9875 is added to the Business
and Professions Code, to read:
9875. (a) Provisions regulating the use of nonoriginal equipment
manufacturer aftermarket crash parts in insured repair work are
codified in Section 790.20 of the Insurance Code.
(b) This chapter shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.
SEC. 3. Section 9875.1 of the Business and
Professions Code is repealed.
SEC. 4. Section 9875.2 of the Business and
Professions Code is repealed.
SEC. 5. 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) 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 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:
(1) The written estimate shall clearly identify each part with the
name of its nonoriginal equipment manufacturer or distributor.
(2) 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."
(c) 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.
(d) Any violation of this section shall be enforced pursuant to
Section 790.06.