S T A T E   O F   N E W   Y O R K
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                                 8010--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 4, 2015
                               ___________

Introduced  by  M.  of  A.  DINOWITZ, COOK, GALEF, ZEBROWSKI, SEPULVEDA,
  COLTON, ROBINSON, ABINANTI, CAHILL, STECK, RIVERA  --  Multi-Sponsored
  by  --  M. of A.   BARRON, BLAKE, ENGLEBRIGHT, GLICK, HOOPER, MAGEE --
  read once and referred  to  the  Committee  on  Consumer  Affairs  and
  Protection  --  recommitted  to  the Committee on Consumer Affairs and
  Protection in accordance with Assembly Rule 3,  sec.  2  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the uniform commercial code and the general business
  law, in relation to prohibiting auto lenders from remotely disabling a
  vehicle without first giving notice of the disabling to the borrower

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

  Section  1.  Subsection (a) of section 9-102 of the uniform commercial
code is amended by adding a new paragraph 60-a to read as follows:
       (60-A) "PAYMENT ASSURANCE DEVICE" MEANS ANY DEVICE INSTALLED IN A
              VEHICLE THAT CAN BE USED TO REMOTELY DISABLE THE VEHICLE.
  S 2. Subdivision 10 of section 601 of the  general  business  law,  as
added  by  chapter 342 of the laws of 2011, is renumbered subdivision 11
and amended and a new subdivision 10 is added to read as follows:
  10.   REMOTELY DISABLE A VEHICLE  USING  A  PAYMENT  ASSURANCE  DEVICE
DEFINED  IN  PARAGRAPH SIXTY-A OF SUBSECTION (A) OF SECTION 9-102 OF THE
UNIFORM COMMERCIAL CODE OR BY ANY OTHER MEANS IN ORDER  TO  REPOSSESS  A
DEBTOR'S VEHICLE WITHOUT FIRST HAVING GIVEN WRITTEN NOTICE OF THE POSSI-
BLE  REMOTE  DISABLING  OF  A VEHICLE IN THE METHOD AND TIMETABLE AGREED
UPON BY THE CONSUMER AND  THE  CREDITOR  IN  THE  INITIAL  CONTRACT  FOR
SERVICES.  THE NOTICE SHALL BE MAILED BY REGISTERED OR CERTIFIED MAIL TO
THE ADDRESS AT WHICH THE DEBTOR WILL BE RESIDING ON THE EXPECTED DATE OF
THE REMOTE DISABLING OF THE VEHICLE. THE NOTICE SHALL BE  POSTMARKED  NO
LATER THAN TEN DAYS PRIOR TO THE DATE ON WHICH THE PRINCIPAL CREDITOR OR
HIS AGENT OBTAINS THE RIGHT TO REMOTELY DISABLE THE VEHICLE; OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11024-06-6
              

A. 8010--A                          2

  11. If such principal creditor or agent sends more than fifty informa-
tion  subpoenas  per month, fail to keep complete records concerning all
information subpoenas sent by such principal  creditor  or  agent.  Such
records  shall  be  maintained  for  five years. Contemporaneous records
shall be kept that set forth with specificity the grounds for such prin-
cipal creditor or agent's reasonable belief, which must be certified and
accompany  each  information subpoena pursuant to rule fifty-two hundred
twenty-four of the civil practice law and rules, that the party  receiv-
ing the subpoena has in its possession information about the debtor that
will assist the creditor in collecting his or her judgement. In addition
to  any  other  penalty  that  [my]  MAY be imposed, failure to maintain
records in accordance with this subdivision shall subject such principal
creditor or agent to a civil penalty of not more than fifty dollars  per
subpoena,  up to a maximum of five thousand dollars per violation, in an
action brought by the attorney general[.]; OR
  S 3. This act shall take effect immediately.