BILL NUMBER: SB 1460 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Yee
FEBRUARY 24, 2012
An act to amend Sections 9880.1, 9884.8, and 9884.9 of, and to
repeal and add Sections 9875, 9875.1, and 9875.2 of, the Business and
Professions Code, relating to automotive repair.
LEGISLATIVE COUNSEL'S DIGEST
SB 1460, as introduced, Yee. Automotive repair: replacement parts.
Existing law, the Automotive Repair Act, establishes the Bureau of
Automotive Repair under the supervision and control of the Director
of Consumer Affairs. Existing law provides that a person who fails to
comply with the act is guilty of a misdemeanor punishable by a fine
not exceeding $1,000, by imprisonment not exceeding 6 months, or by
both that fine and imprisonment, except as defined.
Existing law prohibits an insurer from requiring the use of
nonoriginal equipment or aftermarket replacement parts for repairs on
an insured's automobile unless the insured has been given advance
notice of the use of these parts in the repair estimate as well as
information on the warranty applicable to these replacement parts.
This bill would require an automotive repair dealer or insurer who
uses or directs the use of replacement crash parts, as defined, to
follow specified procedures when using replacement crash parts, to
expressly notify the automobile owner regarding the use of specific
categories of crash parts in making the repairs, and to provide
disclosures as to the warranty for those parts, as specified.
Because this bill would create a new crime, the bill would create
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 9875 of the Business and Professions Code is
repealed.
9875. As used in this chapter, the following definitions shall
apply:
(a) "Insurer" includes an insurance company and any person
authorized to represent the insurer with respect to a claim.
(b) "Aftermarket crash part" means a replacement for any of the
nonmechanical sheet metal or plastic parts which generally constitute
the exterior of a motor vehicle, including inner and outer panels.
(c) "Nonoriginal equipment manufacturer (Non-OEM) aftermarket
crash part" means aftermarket crash parts not made for or by the
manufacturer of the motor vehicle.
SEC. 2. Section 9875 is added to the Business and Professions
Code, to read:
9875. As used in this chapter, the following definitions shall
apply:
(a) "Auto body repair shop" has the meaning specified in Section
9889.51.
(b) "Certified new non-OEM crash part" means a new non-OEM
replacement crash part that:
(1) Has been certified by an American National Standards Institute
(ANSI) accredited standards developer that develops and maintains a
consensus of quality standards for competitive crash repair parts.
(2) Is identified by a unique serial number or production lot
number that enables full traceability through the certifying entity.
(c) "Replacement crash part" means any nonmechanical part made of
sheet metal, aluminum, plastic, fiberglass, or a similar material
that is generally used in the repair of a crashed vehicle. This
includes outer panels, hoods, fenders, doors, trunk lids, bumper
parts (excluding bumper covers), and radiator supports, but does not
include glass, wheel covers, or grilles.
(d) "Insurer" means an insurance company or any person authorized
to represent the insurer with respect to a claim.
(e) "New non-OEM crash part" means a replacement crash part
manufactured or sold by an entity other than the OEM.
(f) "Original equipment manufacturer (OEM) crash part" means a
replacement crash part manufactured or commissioned by a car company,
under its own name, for motor vehicles that the car company
manufactures or distributes under its own name.
(g) "Recycled crash part" means a crash part removed from a
vehicle.
(h) "Remanufactured or reconditioned crash part" means a recycled
crash part that has been refurbished or restored to its original
condition or appearance for use on another vehicle.
SEC. 3. Section 9875.1 of the Business and Professions Code is
repealed.
9875.1. No insurer shall 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:
(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. 4. Section 9875.1 is added to the Business and Professions
Code, to read:
9875.1. (a) Replacement crash parts that are recycled,
remanufactured, or reconditioned OEM, new non-OEM, or certified new
non-OEM crash parts shall not be used in determining the amount to be
paid by the insurer for the repair of a motor vehicle unless both of
the following conditions are met:
(1) The insurer discloses in writing, either in policy language or
in a separate notification, that the insurer may use parts other
than OEM crash parts to determine the amount to be paid to repair a
damaged motor vehicle in a manner sufficient to restore the vehicle
to its preloss condition.
(2) The auto body repair shop discloses whether the replacement
crash part to be used in the repair is any of the following:
(A) A recycled, remanufactured, or reconditioned OEM or certified
new non-OEM crash part.
(B) An OEM crash part.
(C) A certified new non-OEM crash part.
(b) Certified new non-OEM crash parts shall be presumed sufficient
to return the motor vehicle to its preloss condition.
(c) A violation of this section shall be enforced by the penalties
provided in Section 790.06 of the Insurance Code.
SEC. 5. Section 9875.2 of the Business and Professions Code is
repealed.
9875.2. Any violation of this chapter shall be enforced by the
penalties provided in Section 790.06 of the Insurance Code.
SEC. 6. Section 9875.2 is added to the Business and Professions
Code, to read:
9875.2. A supplier who supplies a certified new non-OEM crash
part shall do all of the following:
(a) Provide a written consumer warranty that equals or exceeds the
warranty provided by the car company for the type of OEM crash part.
(b) Utilize an electronic tracking system that tracks the
manufacturer part number, lot number, and repair shop license number
for recall purposes.
(c) Analyze any crash part returned as defective and report the
defective part number, lot number, and nature of the defect to the
manufacturer and to the certifying entity.
(d) Report annually to the Bureau of Automotive Repair defect
rates greater than 5 percent for certified new non-OEM crash parts
installed in 1,000 or more vehicles.
(e) Provide the auto body repair shop with a service guarantee on
any defective certified new non-OEM crash part which includes a full
refund within 60 days.
SEC. 7. Section 9880.1 of the Business and Professions Code is
amended to read:
9880.1. The following definitions apply for the purposes of this
chapter:
(a) "Automotive repair dealer" means a person who, for
compensation, engages in the business of repairing or diagnosing
malfunctions of motor vehicles , including an auto body repair
shop as defined in Section 9889.51 .
(b) "Chief" means the Chief of the Bureau of Automotive Repair.
(c) "Bureau" means the Bureau of Automotive Repair.
(d) "Motor vehicle" means a passenger vehicle required to be
registered with the Department of Motor Vehicles and all motorcycles
whether or not required to be registered by the Department of Motor
Vehicles.
(e) "Repair of motor vehicles" means all maintenance of and
repairs to motor vehicles performed by an automotive repair dealer
including automotive body repair work, but excluding those repairs
made pursuant to a commercial business agreement and also excluding
repairing tires, changing tires, lubricating vehicles, installing
light bulbs, batteries, windshield wiper blades and other minor
accessories, cleaning, adjusting, and replacing spark plugs,
replacing fan belts, oil, and air filters, and other minor services,
which the director, by regulation, determines are customarily
performed by gasoline service stations.
No service shall be designated as minor, for purposes of this
section, if the director finds that performance of the service
requires mechanical expertise, has given rise to a high incidence of
fraud or deceptive practices, or involves a part of the vehicle
essential to its safe operation.
(f) "Person" includes firm, partnership, association, limited
liability company, or corporation.
(g) An "automotive technician" is an employee of an automotive
repair dealer or is that dealer, if the employer or dealer repairs
motor vehicles and who for salary or wage performs maintenance,
diagnostics, repair, removal, or installation of any integral
component parts of an engine, driveline, chassis or body of any
vehicle, but excluding repairing tires, changing tires, lubricating
vehicles, installing light bulbs, batteries, windshield wiper blades,
and other minor accessories; cleaning, replacing fan belts, oil and
air filters; and other minor services which the director, by
regulation, determines are customarily performed by a gasoline
service station.
(h) "Director" means the Director of Consumer Affairs.
(i) "Commercial business agreement" means an agreement, whether in
writing or oral, entered into between a business or commercial
enterprise and an automobile repair dealer, prior to the repair which
is requested being made, which agreement contemplates a continuing
business arrangement under which the automobile repair dealer is to
repair any vehicle covered by the agreement, but does not mean any
warranty or extended service agreement normally given by an
automobile repair facility to its customers.
(j) "Customer" means the person presenting a motor vehicle for
repair and authorizing the repairs to that motor vehicle. "Customer"
shall not mean the automotive repair dealer providing the repair
services or an insurer involved in a claim that includes the motor
vehicle being repaired or an employee or agent or a person acting on
behalf of the dealer or insurer.
(k) The definitions set forth in Section 9875 apply to this
chapter.
SEC. 8. Section 9884.8 of the Business and Professions Code is
amended to read:
9884.8. (a) All work done by an automotive
repair dealer, including all warranty work, shall be recorded on an
invoice and shall describe all service work done and parts
supplied installed . Service work and parts
shall be listed separately on the final invoice, which
shall also state separately the subtotal prices for service work and
for parts, not including sales tax, and shall state separately the
sales tax, if any, applicable to each. If
(b) The final invoice shall clearly
state whether any used, rebuilt, or reconditioned parts are
supplied, the invoice shall clearly state that fact
installed . If a part of a component system is
composed of new and used, rebuilt or reconditioned parts, that
final invoice shall clearly state that fact. The
(c) The final invoice shall
include a statement indicating whether any
itemize each replacement crash parts are original
equipment manufacturer crash parts or nonoriginal equipment
manufacturer aftermarket crash parts part as an OEM,
new non-OEM, certified new non-OEM, recycled, remanufactured, or
reconditioned crash part . One
(d) The final invoice shall identify
the supplier providing the warranty for each certified new non-OEM
crash part, and the tracking information. One copy of the
final invoice shall be given provided
to the customer and one copy shall be retained by the
automotive repair dealer.
(e) The final invoice shall include the disclosure language set
forth in subdivision (c) of Section 9884.9.
(f) Upon installation of a certified new non-OEM crash part, the
automotive repair dealer shall transfer the unique identification
information to the final invoice for tracking purposes.
(g) Upon installation of a certified new non-OEM crash part, the
automotive repair dealer shall transmit the tracking information to
the certifying entity in the form provided by the certifying entity
of the replacement crash part to enable traceability.
SEC. 9. Section 9884.9 of the Business and Professions Code is
amended to read:
9884.9. (a) The automotive repair dealer shall give
provide to the customer a written
an estimated price for labor and parts necessary
for a specific job in the form of a written estimate . No
work shall be done and no charges shall accrue before authorization
to proceed is obtained from the customer. No charge shall be made for
work done or parts supplied installed
in excess of the estimated price without the oral or written consent
of the customer that shall be obtained at some time after it is
determined that the estimated price is insufficient and before the
work not estimated is done or the parts not estimated are
supplied installed . Written consent or
authorization for an increase in the original estimated price may be
provided by electronic mail or facsimile transmission from the
customer. The bureau may specify in regulation the procedures to be
followed by an automotive repair dealer if an authorization or
consent for an increase in the original estimated price is provided
by electronic mail or facsimile transmission. If that consent is
oral, the dealer shall make a notation on the work order of the date,
time, name of person authorizing the additional repairs, and
telephone number called, if any, together with a specification of the
additional parts and labor and the total additional cost, and shall
do either of the following:
(1) Make a notation on the invoice of the same facts set forth in
the notation on the work order.
(2) Upon completion of the repairs, obtain the customer's
signature or initials to an acknowledgment of notice and consent, if
there is an oral consent of the customer to additional repairs, in
the following language:
""I acknowledge notice and oral approval of an
increase in the original estimated price.
_________________________
(signature or initials)''
Nothing in this section shall be construed as requiring an
automotive repair dealer to give a written estimated price if the
dealer does not agree to perform the requested repair.
(b) The automotive repair dealer shall include with the written
estimated price a statement of any automotive repair service that, if
required to be done, will be done by someone other than the dealer
or his or her employees. No service shall be done by other than the
dealer or his or her employees without the consent of the customer,
unless the customer cannot reasonably be notified. The dealer shall
be responsible, in any case, for any service in the same manner as if
the dealer or his or her employees had done the service.
(c) In addition to subdivisions (a) and (b), an automotive repair
dealer, when doing auto body or collision repairs, shall provide an
itemized written estimate for all parts and labor to the customer.
The estimate shall describe contain all of
the following:
(1) A description of labor and
parts separately and shall identify .
(2) An identification of each
part, indicating whether the replacement part is new, used, rebuilt,
or reconditioned. Each crash part shall be identified
(3) An identification on the
written estimate and the written estimate shall indicate
indicating whether the replacement
crash part is an original equipment manufacturer crash part
or a nonoriginal equipment manufacturer aftermarket crash part
OEM, certified new non-OEM, new non-OEM, recycled,
remanufactured, or reconditioned crash part .
(4) A disclosure of the
replacement crash part warranty provided by the supplier.
(d) A customer may designate another person to authorize work or
parts supplied in excess of the estimated price, if the designation
is made in writing at the time that the initial authorization to
proceed is signed by the customer. The bureau may specify in
regulation the form and content of a designation and the procedures
to be followed by the automotive repair dealer in recording the
designation. For the purposes of this section, a designee shall not
be the automotive repair dealer providing repair services or an
insurer involved in a claim that includes the motor vehicle being
repaired, or an employee or agent or a person acting on behalf of the
dealer or insurer.
SEC. 10. 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.