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S5786Senate2013-2014 SessionSame asA7234

Prohibits insurers, providing collision or comprehensive coverage of motor vehicles, from requiring repair shops to use specific vendors or processes for vehicle repair parts and materials

Sponsor John A. DeFranciscoSD-50+6 co-sponsorsAffects Finance
Status
In Senate Committee
Rules
Impact
Pending
Passage
Pending

Bill progress

Step 2 of 7

In committee · Rules

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Sponsors

History

  1. Recommitted to rules
  2. Ordered to third reading cal.1252
  3. Committee discharged and committed to rules
  4. Referred to insurance
  5. Referred to insurance

Companion bill

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

BILL NUMBER:S5786

Title of bill

An act to amend the insurance law, in relation to collision and comprehensive coverage on motor vehicles

Purpose or general idea of the bill

Amends the insurance law directing that no insurer providing collision or comprehensive loss shall require a repair facility to use a specific vendor or process for the procurement of parts or other materials necessary for the repair of a motor vehicle.

Summary of provisions

Section 1 amends Subsection (6) of section 2610 of the insurance law.

Justification

Currently, insurance companies have been directing auto repair businesses to procure their parts from an online source and will only reimburse the repair shop if they do so. The online source only provides the repair shop with the lowest priced replacement part, often times from out of state. These replacement parts are most often not Original Equipment Manufactured (OEM) parts and therefore are of sub-quality and not up to the most stringent safety standards. This bill simply allows auto repair shops to continue to procure replacement parts from local suppliers and to ensure that these parts are of OEM quality.

Legislative history

New bill.

Fiscal implications

None.

Effective date

This act shall take effect immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.