senate Bill S2789

Regulates vehicle licensing recovery fees as they relate to rental vehicles

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 01 / Feb / 2011
    • REFERRED TO CONSUMER PROTECTION
  • 17 / May / 2011
    • 1ST REPORT CAL.755
  • 18 / May / 2011
    • 2ND REPORT CAL.
  • 23 / May / 2011
    • ADVANCED TO THIRD READING
  • 07 / Jun / 2011
    • PASSED SENATE
  • 07 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 07 / Jun / 2011
    • REFERRED TO CONSUMER AFFAIRS AND PROTECTION
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO CONSUMER PROTECTION
  • 18 / Jan / 2012
    • 1ST REPORT CAL.69
  • 19 / Jan / 2012
    • 2ND REPORT CAL.
  • 23 / Jan / 2012
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2012
    • COMMITTED TO RULES

Summary

Regulates vehicle licensing recovery fees as they relate to rental vehicles.

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Bill Details

See Assembly Version of this Bill:
A8153
Versions:
S2789
Legislative Cycle:
2011-2012
Current Committee:
Senate Rules
Law Section:
General Business Law
Laws Affected:
Amd §396-z, Gen Bus L
Versions Introduced in 2009-2010 Legislative Cycle:
S8267

Sponsor Memo

BILL NUMBER:S2789

TITLE OF BILL:
An act
to amend the general business law, in relation to rental car vehicles

PURPOSE:
To permit rental vehicle companies to itemize charges on the rental
agreement for certain costs associated with the licensing, titling,
registration, and inspection of vehicles.

SUMMARY OF PROVISIONS:
This bill amends subdivisions 1, 8 and 10 of section 396-z of the
general business law.

Section 1 amends General Business Law §396-z (1) to add the definition
of "vehicle licensing recovery fee" as the daily fee a rental vehicle
company may charge customers which shall represent an average
per-rental portion of the company's estimated annual costs, as
imposed by the state, for the licensing, titling, registration and
inspection of its vehicles in New York. Should the amount recovered
from renters differ from the total amount paid by the vehicle rental
company, the rental car company shall adjust its daily fee in the
following calendar year by the amount of the difference. The amount
of such fees collected and reconciliation with actual amounts paid
shall be posted annually on each company's website.

Section 2 amends General Business Law §396-z (8) to allow rental car
companies to advertise and quote base rental rates without bundling
the vehicle licensing costs into the base rate.

Section 3 amends General Business Law §396-z (10) to require rental
car companies to separately state on the rental agreement the base
rate, taxes, mileage charge, optional items selected by the renter,
airport fees, and vehicle licensing recovery fees.

JUSTIFICATION:
New York has traditionally allowed only for taxes, mileage charges,
optional items (such as navigation systems) and fees imposed on a
rental vehicle company by an airport to be stated separately on a
renter's rental agreement. Other mandated costs are currently bundled
into the rental rate of each vehicle. The consumer is currently
unaware which portion of the rate relates to the use of the vehicle
and which portion of the rate relates to state-mandated expenses
related to the vehicle. These New York State mandated expenses
include the cost of licensing, titling, registering and inspecting
the vehicle.

Rental car companies register tens of thousands of vehicles in New York.
As vehicle licensing fees increase, rental car companies must raise
rental rates accordingly. This legislation will allow rental car

companies to keep rates consistent with what they are offering in
other states and on national advertising campaigns. It will not allow
rental car companies to separately state expenses that constitute the
general cost of doing business.

LEGISLATIVE HISTORY:
Similar S.5725 Passed the Senate in 2010.
2010 - PASSED SENATE; Died in Assembly

EFFECTIVE DATE:
This law shall take effect immediately; provided, however, that the
amendments to section 396-z of the general business law made by
sections 1, 2 and 3 of this act shall not affect the repeal of such
section and shall be deemed repealed therewith.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2789

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 1, 2011
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law,  in  relation  to  rental  car
  vehicles

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 1 of section 396-z of the general business  law
is amended by adding a new paragraph (k) to read as follows:
  (K)  "VEHICLE  LICENSING  RECOVERY  FEE"  MEANS THE DAILY FEE A RENTAL
VEHICLE COMPANY MAY CHARGE ITS CUSTOMERS WHICH SHALL REPRESENT AN  AVER-
AGE  PER-RENTAL  DAY PORTION OF THE COMPANY'S ESTIMATED ANNUAL COSTS, AS
IMPOSED BY THE STATE,  FOR  THE  LICENSING,  TITLING,  REGISTRATION  AND
INSPECTION  OF ITS VEHICLES IN THIS STATE. IF THE TOTAL AMOUNT RECOVERED
FROM RENTERS BY A RENTAL VEHICLE  COMPANY  FOR  VEHICLE  LICENSING  FEES
DURING  THE CALENDAR YEAR IS DIFFERENT THAN THE TOTAL AMOUNT PAID BY THE
RENTAL VEHICLE COMPANY FOR SUCH ITEMS, THE RENTAL VEHICLE COMPANY  SHALL
ADJUST ITS DAILY FEE IN THE FOLLOWING CALENDAR YEAR BY THE AMOUNT OF THE
DIFFERENCE.    AS  OF  FEBRUARY  TWENTY-EIGHTH, TWO THOUSAND TWELVE, AND
ANNUALLY EACH FEBRUARY TWENTY-EIGHTH THEREAFTER, A RENTAL VEHICLE COMPA-
NY SHALL POST INFORMATION ON ITS INTERNET WEBSITE IN  AN  UNDERSTANDABLE
AND  READABLE  FORMAT  THAT SHALL SHOW A RECONCILIATION OF THE AMOUNT OF
VEHICLE LICENSING RECOVERY FEES ACTUALLY  PAID  BY  THE  RENTAL  VEHICLE
COMPANY  DURING  THE  PRECEDING  CALENDAR YEAR AND THE AMOUNT OF VEHICLE
LICENSING RECOVERY FEES CHARGED TO CUSTOMERS DURING THAT  SAME  CALENDAR
YEAR FOR RENTAL OF VEHICLES.
  S  2.  Subdivision  8 of section 396-z of the general business law, as
amended by chapter 731 of the laws  of  2006,  is  amended  to  read  as
follows:
  8.  No  rental  vehicle company shall advertise or quote a rental rate
that does not include all charges, except taxes or optional items and/or
services or any mileage charge, which an authorized driver must  pay  to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08036-01-1

S. 2789                             2

obtain  a  rental  vehicle.  Provided, however, a rental vehicle company
shall be permitted to separately  quote  and  charge  airport  fees  [as
defined  herein]  AND VEHICLE LICENSING RECOVERY FEES, which shall be in
addition to the rental rate; and provided further that advertised rental
rates  that  include locations at which airport fees apply shall clearly
indicate that additional fees apply.
  S 3. Paragraphs (a) and (b) of subdivision 10 of section 396-z of  the
general business law, as amended by chapter 731 of the laws of 2006, are
amended to read as follows:
  (a)  A  rental  vehicle  company  shall  not charge in addition to the
rental rate, taxes, and mileage charge, if any, any fee  which  must  be
paid as a condition of renting the vehicle, such as, but not limited to,
required  fuel  surcharges,  each of which shall be separately stated on
the rental agreement. In addition, a rental  vehicle  company  may  also
state  separately  and  charge,  where applicable, airport fees [as such
term is defined herein] AND VEHICLE LICENSING RECOVERY FEES.
  (b) In addition to the rental rate, taxes,  applicable  airport  fees,
VEHICLE  LICENSING  RECOVERY  FEES, and mileage charge, if any, a rental
vehicle company may charge for an item or service provided in connection
with a particular rental transaction if the renter  could  have  avoided
incurring  the  charge by not choosing to obtain or utilize the optional
item or service, such as, but not limited to,  optional  accessories  or
services  requested  by  the  renter,  service  charges  incident to the
renter's optional return of the vehicle to a  location  other  than  the
location  where  the  vehicle  was rented, and charges for refueling the
vehicle with as much fuel as was in the fuel tank at  the  beginning  of
the rental.
  S  4.  This act shall take effect immediately; provided, however, that
the amendments to section 396-z of the  general  business  law  made  by
sections  one,  two and three of this act shall not affect the repeal of
such section and shall be deemed repealed therewith.

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