Bill Text: CA AB2505 | 2011-2012 | Regular Session | Amended
Bill Title: Motor vehicle replacement parts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-05-25 - In committee: Set, second hearing. Held under submission. [AB2505 Detail]
Download: California-2011-AB2505-Amended.html
BILL NUMBER: AB 2505 AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 16, 2012 INTRODUCED BY Assembly Member Ma FEBRUARY 24, 2012 An act to amendSection 9875Sections 9884.8 and 9884.9 of the Business and Professions Code, relating to motor vehicle replacement parts. LEGISLATIVE COUNSEL'S DIGEST AB 2505, as amended, Ma. Motor vehicle replacement parts. Existing law regulates the use of motor vehicle replacement parts, and prohibits an insurer from requiring the use of nonoriginal equipment manufacturer aftermarket crash parts, as defined, in the repair of an insured's motor vehicle, unless the consumer is advised , ina disclosure documentthe written estimate and invoice, of the use of the part. A violation of those provisionssubjects an insurer to specified enforcement actions by the Insurance Commissioneris a crime . This bill woulddefine the term "certified aftermarket crash part" for the purposes of these provisionsrequire that the use of nonoriginal equipment manufacturer certified aftermarket crash parts, including the name of the certifying entity, also be identified on the written estimate and invoice . Because this bill would expand the scope of a crime, it would impose 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:noyes . State-mandated local program:noyes . THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 9884.8 of the Business and Professions Code is amended to read: 9884.8. 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. Service work and parts shall be listed separately on the 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 any used, rebuilt, or reconditioned parts are supplied, the invoice shall clearly state that fact. If a part of a component system is composed of new and used, rebuilt or reconditioned parts, that invoice shall clearly state that fact. The invoice shall include a statement indicating whether any crash parts are original equipment manufacturer crash parts , nonoriginal equipment manufacturer certified aftermarket crash parts including the name of the certifying entity, or nonoriginal equipment manufacturer aftermarket crash parts. One copy of the invoice shall be given to the customer and one copy shall be retained by the automotive repair dealer. SEC. 2. Section 9884.9 of the Business and Professions Code is amended to read: 9884.9. (a) The automotive repair dealer shall give to the customer a written estimated price for labor and parts necessary for a specific job. 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 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. 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 labor and parts separately and shall identify each part, indicating whether the replacement part is new, used, rebuilt, or reconditioned. Each crash part shall be identified on the written estimate and the written estimate shall indicate whether the crash part is an original equipment manufacturer crash part , a nonoriginal equipment manufacturer certified aftermarket crash part including the name of the certifying entity, or a nonoriginal equipment manufacturer aftermarket crash part. (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. 3. 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.SECTION 1.Section 9875 of the Business and Professions Code is amended to read: 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. (d) "Certified aftermarket crash part" means a replacement crash part that meets both of the following requirements: (1) The part has been certified by an American National Standards Institute (ANSI) accredited standards developer that develops and maintains quality standards for competitive crash repair parts. (2) The part is identified by a unique serial number affixed to it that enables its full traceability through the ANSI certifying entity.