BILL ANALYSIS �
AB 2505
Page 1
Date of Hearing: May 16, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2505 (Ma) - As Amended: April 16, 2012
Policy Committee: Business and
Professions Vote: 8 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill requires that an automotive repair dealer (ARD)
include the name of the certifying entity on an estimate and
invoice when the dealer uses a non-original equipment
manufacturer certified aftermarket crash part.
FISCAL EFFECT
One-time costs of up to $500,000 (Vehicle Inspection and Repair
Fund) for the Bureau of Automotive Repair (BAR) to update and
reprint its Write it Right publication, which assists automotive
repair dealers in complying with estimate and invoicing
requirements.
COMMENTS
1)Rationale . This bill, sponsored by the California Automotive
Parts Association (CAPA), an association that certifies
after-market parts, is intended to require that ARDs state on
their invoices and estimates whether or not the non-original
equipment manufacturer (OEM) (or aftermarket) crash parts they
are using have been certified, and who the certification
agency is.
According to the sponsors, under current California law, both
certified and non-certified non-OEM parts are covered by one
definition of an aftermarket crash part, despite the fact that
certified aftermarket crash parts are specifically designated
by estimators used in collision repair and included in
insurance contracts with policy holders. They note,
"Consumers are currently denied the right to know if they
AB 2505
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received the proper parts or not, when their vehicle is
inspected by a BAR inspector."
2)BAR Report Not Supportive of State Non-OEM Oversight . SB 1178
(Burton), Chapter 303, Statues of 2001, required the
Department of Consumer Affairs (DCA) conduct a study on
aftermarket crash parts and their certification. BAR met with
interested parties, including representatives from state
agencies and departments, insurance companies, auto body
repair shops, auto dealers, and CAPA, and sent out surveys to
1,300 randomly selected auto body repair facilities regulated
by BAR.
On January 1, 2003, BAR released the report and stated that
certification does not protect consumers from poor quality
parts; there is a lack of control, by CAPA, over distributors
of their certified aftermarket parts; and, there is no need
for any state agency to oversee the certification of OEM crash
parts.
BAR concluded, "There are safeguards in statute and regulation
that require a customer to be informed on a written estimate
if non-OEM crash parts are to be used, and repair dealers are
required to obtain the customer's authorization prior to the
work being started. Additionally, if an insurer requires the
use of non-OEM crash parts, they must warrant that such parts
are of like kind, quality, safety, fit and performance as OEM
parts."
3)Opposition . According to the California New Car Dealers
Association, the Automotive Repair Act requires any person in
the business of repairing vehicles (including collision repair
facilities) register with BAR and meet specific vehicle repair
estimating and invoicing requirements. Existing law requires
collision repair facilities to note on both the written repair
estimate and any subsequent invoice a description of each
part, whether the part is new, used, rebuilt or reconditioned,
and whether the crash part is an OEM crash part or a non-OEM
aftermarket crash part.
The Association notes that BAR previously studied whether a
third category of crash part should be recognized, certified
non-OEM aftermarket crash parts, but concluded in its 2003
study that doing so would be inappropriate.
AB 2505
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Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081