BILL NUMBER: SB 1460 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 17, 2012
INTRODUCED BY Senator Yee
( Coauthors: Assembly Members
Hagman and Perea )
FEBRUARY 24, 2012
An act to amend Sections 9880.1, 9884.8, and 9884.9 of, to
add Section 9880.15 to, and to repeal and add Sections 9875
, and 9875.1 , and 9875.2
of, the Business and Professions Code, relating to
automotive repair.
LEGISLATIVE COUNSEL'S DIGEST
SB 1460, as amended, 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repealed.
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 .
(3) Has a manufacturer's warranty that meets or exceeds the
original equipment manufacturer's warranty for the applicable
original equipment manufacturer (OEM) crash part as defined in
subdivision (f).
(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.
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
may be used in determining the amount to be paid by the
insurer for the repair of a motor vehicle unless
when 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 in writing
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 Use of a certified new
non-OEM crash parts part, if installed and a
reasonable fit, 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.
(c) The presumption in subdivision (b) shall not apply in any of
the following circumstances:
(1) The certified new non-OEM crash part is installed on a motor
vehicle that is subject to a lease with the original equipment
manufacturer in which the lease contract requires damage to be
repaired using only an original equipment manufacturer (OEM) crash
part.
(2) The installation of which would permit the original equipment
manufacturer to void its manufacturer's vehicle warranty under
permission of a Federal Trade Commission waiver of the "tie-in sales"
prohibition under the Magnuson-Moss Warranty Act of 1975 (15 U.S.C.
Sec. 2301), which otherwise guarantees consumers the ability to elect
either an original equipment manufacturer (OEM) crash part or a
non-OEM replacement crash part to repair a vehicle.
(3) The vehicle to be repaired is less than one year old.
SEC. 5. Section 9875.2 of the Business and
Professions Code is repealed.
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. SEC. 5. 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 a 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. 6. Section 9880.15 is added to the
Business and Professions Code , to read:
9880.15. 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, as described in subdivision (b)
of Section 9875, 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 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 that includes a full
refund within 60 days.
SEC. 8. SEC. 7. 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
the final invoice and shall describe all service
work done and parts 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.
(b) The final invoice shall clearly state whether any used,
rebuilt, or reconditioned parts are 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.
(c) The final invoice shall itemize each replacement crash part as
an OEM, new non-OEM, certified new non-OEM, recycled,
remanufactured, or reconditioned crash part.
(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 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 supplier in the
form provided by the certifying entity
supplier of the replacement crash part to enable traceability.
SEC. 9. SEC. 8. Section 9884.9 of the
Business and Professions Code is amended to read:
9884.9. (a) The automotive repair dealer shall provide to the
customer 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 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
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 contain all of the following:
(1) A description of labor and parts separately.
(2) An identification of each part, indicating whether the
replacement part is new, used, rebuilt, or reconditioned.
(3) An identification on the written estimate indicating whether
the replacement crash part is an 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. SEC. 9. 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.