BILL NUMBER: S4753
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the vehicle and traffic law and the insurance law, in
relation to requiring types of replacement crash parts used in automo-
bile collision repairs be disclosed to vehicle owners and written
authorization to use specified parts be obtained prior to installation
 
PURPOSE OR GENERAL IDEA OF BILL:
To require disclosure to motor vehicle owners of information on certain
replacement crash parts for repairs to their motor vehicles and to
prevent both motor vehicle repair shops and insurance companies from
requiring the use of aftermarket parts for repair unless the owner of
the vehicle consents in writing at the time of the repair.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill amends section 398-d of the vehicle and traffic
law by adding a new subdivision 2-a. This subdivision prohibits motor
vehicle repair shops from using or installing any type of "replacement
crash part" for the repair of a motor vehicle damaged in a collision
without disclosing the type of replacement part to the vehicle's owner
and obtaining written authorization.
Section 2 amends section 3411 of the insurance law by adding a new
subdivision (n). This subdivision prohibits insurers from directly or
indirectly requiring the use or installation of any type of replacement
part for the repair of a motor vehicle damaged in a collision without
disclosing the type of replacement part to the owner of the vehicle. In
addition, it provides that only new original equipment manufacturer
(OEM) replacement parts may be used on any vehicle during the year of
manufacture and for two succeeding years thereafter, or the duration of
the warranty, whichever is longer. In the event non-OEM parts are used,
and such parts are ill-fitting or require additional work to install,
the insurer shall be responsible for the additional cost.
 
JUSTIFICATION:
Consumers are often confused by the many types of "replacement crash
parts" that can be used in the repair of a vehicle damaged in a colli-
sion. This confusion is heightened when some insurers direct the use or
installation of parts other than original equipment manufacturer (OEM)
replacement parts. Research has revealed a higher likelihood of struc-
tural and safety deficiencies in vehicles repaired with aftermarket
parts.
This bill requires the use or installation of OEM parts on all vehicles
during the year of manufacture and for two years thereafter, or the
duration of the vehicle's warranty, whichever is longer. For all other
vehicles, repair shops are required to disclose to the vehicle owner
information on the types of replacement crash parts used in the repair:
OEM, "new aftermarket," "recycled/recyclable," or "remanufactured."
 
PRIOR LEGISLATIVE HISTORY:
2019-20: Referred to Transportation
2021-22: Referred to Transportation
2023-24: Referred to Transportation
 
FISCAL IMPLICATIONS:
None to the state or localities.
 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law, provided, however, that effec-
tive immediately, the commissioner of motor vehicles and the superinten-
dent of insurance shall promulgate such rules and regulations as are
necessary to implement the provisions of this act on or before such
effective date.

Statutes affected:
S4753: 398-d vehicle and traffic law