Louisiana House Bill HB559

Louisiana 2016 Regular Session

• Introduced: 3/3/16
• Refer: 3/3/16
• Refer: 3/14/16
• Report Pass: 4/12/16

Caption

Prohibits the use of certain non-OEM aftermarket parts at the direction of an insurer under certain circumstances

Impact

The implementation of HB 559 is expected to significantly impact how automobile repair businesses and insurance companies operate within the state. By mandating the use of OEM safety parts when available, the bill seeks to enhance the safety standards of repaired vehicles. Additionally, it requires repair shops to provide written disclosures to claimants regarding the availability and use of non-OEM parts before repairs can begin, which aims to foster transparency in the repair process and empower consumers to make informed choices regarding their vehicle repairs.

Summary

House Bill 559 aims to regulate the use of aftermarket safety parts in automobile repairs, particularly those that affect vital safety systems such as anti-lock brakes and airbags. The bill prohibits the use of non-original equipment manufacturer (non-OEM) aftermarket safety parts unless those parts are unavailable in sufficient quantities from OEM sources. This legislation underscores the importance of safety in vehicle repairs, ensuring that only the most reliable components are used when fixing critical systems that can affect vehicle operation and passenger safety.

Sentiment

The sentiment around HB 559 appears to be supportive overall, particularly among consumer advocacy groups who argue that ensuring the use of OEM parts will protect consumers and enhance vehicle safety. However, there are concerns from some in the industry who view the strict regulations on aftermarket parts as potentially limiting their operational flexibility and increasing costs. The debate highlights the balance between maintaining high safety standards and allowing competition within the auto repair market.

Contention

Notable points of contention surrounding HB 559 include the implications for small auto repair shops that may rely on more affordable non-OEM parts for their services. Critics express that such prohibitions may lead to increased repair costs for consumers, potentially making car repair less accessible, particularly in lower-income areas where affordability is a primary concern. Furthermore, the bill's enforcement mechanisms are also a point of discussion, focusing on how violations will be regulated and what penalties will be imposed for non-compliance.