A bill introduced to the California Legislature in late
February would further enhance consumers’ rights when getting their car
repaired.

Always a point of contention between auto body shops and
insurance companies, Original Equipment Manufacturer parts (OEM) are often more
costly but nearly always preferred to non-OEM parts, which often times are prescribed
by insurance companies, who are looking to cut corners and save money when dealing with auto claims.

Senate
Bill 1460 aims to rectify the way in which insurance companies and auto
body shops notify a consumer of what parts are being used to fix their vehicle.

Under existing California law, the
Automotive Repair Act establishes the Bureau
of Automotive Repair under the supervision and control of the Director of Consumer Affairs.

Current law already prohibits insurers from requiring use of
non-OEM (ie after-market) parts for repairs on an insured’s car unless the
insured has been given advance warning of the use of said parts in the repair
estimate as well as information on the warranty of these non-OEM parts.

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 six months or by both that fine and imprisonment,
except as defined.

Bill 1460 would take current law a step further, requiring
an automotive repair shop or insurance company who uses or directs the use of
replacement crash parts, to follow specified procedures when using replacement
crash parts; to expressly notify the auto owner regarding the use of specific
categories of crash parts in making repairs and to provide disclosures as to
the warrant for those parts, as specified.

In particular, subsection 9884.8 (b) states that the final
invoice shall clearly state whether any used, rebuilt, or reconditioned parts
are installed. If a part of the component system is composed of new and used,
rebuilt or reconditioned parts, that final invoice shall clearly state that
fact.

This bill would create a new crime, thus necessitating a
state-mandated local program.