ASSEMBLY COMMITTEE SUBSTITUTE FOR
ASSEMBLY, No. 1903
STATE OF NEW JERSEY
ADOPTED NOVEMBER 6, 1997
Sponsored by Assemblymen IMPREVEDUTO and MORAN
An Act concerning the use of after market collision parts for motor vehicle repairs, and supplementing Title 39 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"After market collision part" means any motor vehicle replacement part used to repair collision damage other than new parts manufactured by the OEM or new parts bearing the trademark of the OEM. After market collision parts include, but are not limited to, the following: non-OEM sheet metal or plastic composite parts; salvage or used parts; and non-mechanical remanufactured or rebuilt parts.
"Certified after market collision part" means an after market collision part which has been tested and approved by a testing authority as being equal to or exceeding the equivalent OEM part with respect to fit, finish, structural integrity, corrosion resistance and crash performance.
"Director" means the Director of the Division of Motor Vehicles in the Department of Transportation.
"Model year" means the calendar year in which a motor vehicle model is initially made available for retail sale, unless less than six calendar months remain in that year, in which event it will mean the following full calendar year.
"Motor vehicle" means a vehicle as defined in R.S.39:1-1 and which is required to be registered with the Division of Motor Vehicles, excluding motorcycles.
"OEM" means the original equipment manufacturer of the motor vehicle as indicated on the Division of Motor Vehicles motor vehicle registration.
"Testing authority" means an entity which is independent from an OEM, after market collision parts manufacturer, insurer or auto body repair facility, and which has the skills and facilities required to perform certification testing, including crash performance testing or crash engineering analysis, of after market collision parts; and has been approved by the director to approve an after market collision part as a certified after market collision part.
2. Any after market collision part used in the repair of a motor vehicle shall bear a permanent identification located in a place which is, to the extent practical, visible after installation and which names the manufacturer of the part and the part's production date.
3. Prior to any physical damage repair of a motor vehicle a person making the repair shall provide the owner of the motor vehicle with an estimate as required by section 4 of this act.
4. a. A written estimate shall contain the following information:
(1) A list of parts to be used for each repair, together with the costs of those parts. If no indication is made whether a part is an after market collision part, the part used shall be a new OEM part. If an after market collision part is proposed to be used, the words "after market collision part" preceded by the type of part, "certified" or "non-OEM" or "salvage" or "used" or "remanufactured" or "rebuilt" or such other description as the director has approved shall be used. After market collision parts shall not be described with any other words, including "quality" or "economy" or "approved" or any other words which are likely to imply that the parts are desirable.
(2) If paint is to be applied as part of the repair, the name of the manufacturer of the paint, the brand of paint and the type, such as enamel, acrylic enamel, polyurethane, base coat/clear, shall be indicated.
b. Each written estimate which includes after market collision parts other than certified after market collision parts, shall include or have attached the following in 10-point bold type:
"THIS ESTIMATE HAS BEEN PREPARED USING UNCERTIFIED AFTER MARKET COLLISION PARTS WHICH MAY NOT EQUAL THE ORIGINAL PART'S FIT, FINISH, STRUCTURAL INTEGRITY, CORROSION RESISTANCE AND CRASH PERFORMANCE AND MAY REDUCE THE VALUE OF YOUR VEHICLE. ANY VEHICLE WARRANTY WHICH MIGHT OTHERWISE APPLY TO THIS PART(S) AND ANY ADJACENT OR RELATED PARTS, MAY BE VOIDED BY THE USE OF SUCH AFTER MARKET COLLISION PARTS.
YOU MUST SIGN BELOW BEFORE SUCH PARTS MAY BE USED IN THE REPAIR OF YOUR VEHICLE. I APPROVE THE USE OF AFTER MARKET COLLISION PARTS," followed by a signature line for the motor vehicles owner or agent.
5. An insurer shall not require the use of parts other than as provided in section 6 of this act, or that a claimant consent to the use of after market collision parts as a condition of settling a claim, making payment under a policy of insurance, or as a condition for the repair of a motor vehicle.
6. During the model year and the four following years, a motor vehicle being repaired as a result of a collision shall not be repaired using other than OEM parts or certified after market collision parts except:
a. After disclosure to the owner of the motor vehicle and the written consent required by section 4 of this act;
b. If the cost of the repair is being paid for by an insurer, the owner of the motor vehicle shall receive the difference between the cost of installing a non-OEM, uncertified part and the equivalent OEM part from the insurer;
c. If a claimant consents to the use of after market collision parts, an insurer shall reimburse the claimant for any additional charges incurred in order to install and finish the after market collision part in excess of the cost of installing and finishing the equivalent OEM or certified after market collision parts.
7. The director may impose the following penalties on any person found violating this act:
a. For the willful certification by a testing authority of an after market collision part as a certified after market collision part under this act without proper testing and sampling, a fine of not more than $500 per individual part and a suspension or revocation of their approval as a testing authority.
b. For marking a part as a certified after market collision part without written verification of certification of that part from a testing authority, a fine of not more than $500 per individual part.
c. For marking an after market collision part as certified, knowing that the part has not been certified, a fine of not more than $1,000 per individual part.
d. For failing to provide the notice required by section 4 of this act or obtain the consent of the motor vehicle owner, or the owner's agent, for the use of an after market collision part in a repair as required by this act, a fine of not more than $500 per individual part; and for any such repair, require the reimbursement to the motor vehicle owner of damages equal to the difference between the motor vehicle's present value and the value of the motor vehicle if it had been repaired using OEM parts.
e. For the sale of an after market collision part which does not contain the required manufacturer identification, a fine of not more than $100 per individual part.
8. The director shall promulgate regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) necessary to effectuate the purposes of this act, including, but not limited to, establishing fees and charges for the review, approval and monitoring of any testing authority.
9. This act shall take effect on the 180th day after enactment except that section 7 shall take effect immediately.
Regulates use of after market collision parts for motor vehicle repairs.