S T A T E   O F   N E W   Y O R K
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                                   5238
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 7, 2017
                                ___________
 
 Introduced  by  M.  of  A.  DINOWITZ, COOK, GALEF, ZEBROWSKI, SEPULVEDA,
   COLTON, 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
 
 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.
   § 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
   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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03764-01-7

 A. 5238                             2
 
 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
   § 3. This act shall take effect immediately.