Tuesday, 28 September 2010 17:15

Gov. Vetos California SB 427

Gov. Schwarzenegger has vetoed SB 427 (Negrete-McLeod). CLICK HERE for discussion of bill.

The governor vetoed Senate Bill 427 Friday, Sept. 24. The legislation proposed by California state Sen. Negrete McLeod, D-Chino, had been introduced to crack down on airbag fraud but it also included numerous confusing amendments to the Business and Professions code, which previously only applied to insurers.

The bill included language that condemns perpetrators of airbag fraud, stating that those who “fail to repair and fully restore the airbag to original operating condition where the customer has paid for the airbag repair as provided in the estimate” can receive up to a $5,000 fine and up to a year in prison.
The language of the bill also included restrictions for invoices, including the following requirements:
•  All work done by an automotive repair dealer, including all warranty work, must be recorded on an invoice and must describe all service work done, parts supplied and crash parts installed.
•  Service work and parts must be listed separately on the repair invoice, which must also state separately the subtotal prices for service work and for parts, not including sales tax, and must state separately the sales tax, if any, applicable to each.
•  If any used, rebuilt or reconditioned parts are installed, the invoice must clearly state that fact.
•  If a part of a component system is composed of new and used, rebuilt or reconditioned parts, that invoice must clearly state that fact.
•  The invoice must include a statement indicating whether any crash parts are original equipment manufacturer crash parts or non-original equipment manufacturer aftermarket crash parts.
•  One copy of the invoice must be given to the customer and one copy must be retained by the automotive repair dealer.
To view the California bill (S.B. 427), visit the Automotive Service Association’s legislative website, www.TakingTheHill.com. Click on the “Track Current Legislation” button, then follow the state legislation link.

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