senate Bill S350

Amended

Relates to charges by a rental vehicle company for optional vehicle protection

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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

  • 09 / Jan / 2013
    • REFERRED TO CONSUMER PROTECTION
  • 08 / Jan / 2014
    • REFERRED TO CONSUMER PROTECTION
  • 07 / Feb / 2014
    • AMEND (T) AND RECOMMIT TO CONSUMER PROTECTION
  • 07 / Feb / 2014
    • PRINT NUMBER 350A

Summary

Relates to charges by a rental vehicle company for optional vehicle protection.

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Bill Details

Versions:
S350
S350A
Legislative Cycle:
2013-2014
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Amd ยง396-z, Gen Bus L

Sponsor Memo

BILL NUMBER:S350

TITLE OF BILL:
An act
to amend the general business law, in relation to charges by a rental
vehicle company for optional vehicle protection; and to amend chapter
656 of the laws of 2002 amending the general business law relating to
rental vehicle protections, in relation to extending the provisions of
such chapter

PURPOSE:
To extend and modify section 396-z of the General Business Law, which
is concerned with rental vehicle protections.

SUMMARY OF PROVISIONS:
Section one and two
extends the provisions of section 396-z of the General
Business Law to June 30, 2015 and increased the maximum charge for
optional vehicle protection to fifteen dollars per day.

Section three of this bill provides an immediate effective date.

EXISTING LAW:
Section 396-z of the General Business Law, which is concerned with
rental vehicle protections expires on June 30, 2013. The maximum
charge for optional vehicle protection is twelve dollars per day.

JUSTIFICATION:
The current maximum charge for optional vehicle protection is below
the market rate. Fifteen dollars is a more accurate estimate of the
market rate. Because the rental car market is a competitive market,
such forced losses are passed along to consumers by the way of higher
use fees. Individuals who already have car insurance, and thus tend
not to purchase optional vehicle protection, are thus forced to pay a
higher cost for using a rental vehicle without realizing the saving
from a below market rate cap on the optional vehicle protection. In
effect, these consumers subsidize those without insurance or who
chose to purchase the protection regardless of their insurance status.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediate.

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

                                   350

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. GALLIVAN -- 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  charges  by  a
  rental  vehicle  company for optional vehicle protection; and to amend
  chapter 656 of the laws of 2002  amending  the  general  business  law
  relating  to  rental vehicle protections, in relation to extending the
  provisions of such chapter

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

  Section  1.  Paragraph  (a)  of  subdivision 2 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:
  (a)  A  rental vehicle company shall not charge more than nine dollars
per full or partial twenty-four hour rental  day  for  optional  vehicle
protection  if  the  manufacturer's suggested retail price of the rental
vehicle is not greater than thirty thousand dollars.  A  rental  vehicle
company  shall not charge more than [twelve] FIFTEEN dollars per full or
partial twenty-four hour rental day for optional vehicle  protection  if
the  manufacturer's  suggested  retail  price  of  the rental vehicle is
greater than thirty thousand dollars.
  S 2. Section 4 of chapter 656 of the laws of 2002 amending the general
business law relating to rental vehicle protections, as amended by chap-
ter 14 of the laws of 2008, is amended to read as follows:
  S 4. This act shall take effect on the ninetieth day  after  it  shall
have  become a law; provided that all of the amendments made by this act
shall expire and be deemed repealed June 30, [2013] 2015.
  S 3. This act shall take effect immediately, provided,  however,  that
the amendments to paragraph (a) of subdivision 2 of section 396-z of the
general  business  law  made by section one of this act shall not affect
the expiration of such section and shall be deemed to expire therewith.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02226-01-3

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