senate Bill S350A

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

download pdf

Sponsor

Bill Status


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

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.

do you support this bill?

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:S350A

TITLE OF BILL: An act to amend the general business law, in relation
to charges by a rental vehicle company for optional vehicle protection

PURPOSE:

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

SUMMARY OF PROVISIONS:

Section one increases the maximum charge for optional vehicle
protection to fifteen dollars per day.

Section two of this bill provides an immediate effective date.

EXISTING LAW:

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 savings
from a below market rate cap on the optional vehicle protection. In
effect, these consumers subsidize those without insurance or those who
choose 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--A

                       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  --
  recommitted to the Committee on Consumer Protection in accordance with
  Senate  Rule  6, sec. 8 -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the general business law, in relation to  charges  by  a
  rental vehicle company for optional vehicle protection

  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.  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.
                                                           LBD02226-02-4

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.