A. 3083--D 2
The legislature also finds that rent-to-own agreements are complex and
that consumers need clear and useful disclosures in order to make
informed decisions regarding these agreements.
Therefore, it is the intent of the legislature to require rent-to-own
merchants to provide consumers with enhanced disclosures and to imple-
ment fair and reasonable methods for use by rent-to-own merchants in
setting cash prices, ensuring that rent-to-own customers pay fair prices
and providing much-needed regulatory guidance to rent-to-own merchants.
S 2. Subdivisions 2 and 6 of section 500 of the personal property law,
as added by chapter 792 of the laws of 1986, are amended and seven new
subdivisions 7, 8, 9, 10, 11, 12 and 13 are added to read as follows:
2. "Cash price" means the price [at which a merchant, in the ordinary
course of business, would offer to sell the merchandise to the consumer
for cash on the date] OF THE MERCHANDISE DESCRIBED IN THE RENTAL-PUR-
CHASE AGREEMENT THAT THE CONSUMER MAY PAY IN CASH TO THE MERCHANT AT THE
INCEPTION of the rental-purchase agreement TO ACQUIRE OWNERSHIP OF SUCH
MERCHANDISE.
6. "Rental-purchase agreement" means an agreement for the use of
merchandise by a consumer for PRIMARILY personal, family, or household
purposes, for an initial period of four months or less, that is renewa-
ble with each payment after the initial period and that permits the
[lessee] CONSUMER to become the owner of the property, WHETHER OR NOT
THE CONSUMER IS OBLIGATED TO COMPLETE THE PAYMENTS ON THE AGREEMENT. An
agreement that complies with this article is not a retail installment
sales contract, agreement, or obligation as defined in this chapter [or]
NOR a security interest as defined in subdivision thirty-seven of
section 1-201 of the uniform commercial code.
7. "COST OF RENTAL" MEANS THE DIFFERENCE BETWEEN THE TOTAL OF ALL
PERIODIC PAYMENTS NECESSARY TO ACQUIRE OWNERSHIP UNDER THE RENTAL-PUR-
CHASE AGREEMENT AND THE CASH PRICE OF THE RENTAL MERCHANDISE THAT IS
SUBJECT TO THE RENTAL-PURCHASE AGREEMENT.
8. "FEE" MEANS ANY PAYMENT, CHARGE, FEE, COST, OR EXPENSE, HOWEVER
DENOMINATED, OTHER THAN A RENTAL PAYMENT.
9. "APPLIANCE" MEANS AND INCLUDES ANY REFRIGERATOR, FREEZER, RANGE
INCLUDING ANY COOK TOP OR OVEN, MICROWAVE OVEN, WASHER, DRYER, DISHWASH-
ER, OR ROOM AIR CONDITIONER OR AIR PURIFIER.
10. "ELECTRONIC SET" MEANS AND INCLUDES ANY TELEVISION, RADIO, CAMERA,
VIDEO GAME, OR ANY TYPE OF DEVICE FOR THE RECORDING, STORAGE, COPYING,
PRINTING, TRANSMISSION, DISPLAY, OR PLAYBACK OF ANY SOUND OR IMAGE, BUT
DOES NOT INCLUDE ANY ITEM THAT IS PART OF A COMPUTER SYSTEM.
11. "COMPUTER SYSTEM" MEANS A COMPUTER PROCESSOR AND A VIDEO MONITOR,
PRINTER, AND PERIPHERAL ITEMS PRIMARILY DESIGNED FOR USE WITH A COMPUT-
ER. AUDIO AND VIDEO DEVICES, WHICH ARE COMMONLY USED FOR ENTERTAINMENT
AND INTO WHICH DATA MAY BE DOWNLOADED FROM A COMPUTER, ARE NOT PART OF A
COMPUTER SYSTEM.
12. "MERCHANT'S COST" MEANS THE DOCUMENTED ACTUAL COST, INCLUDING
ACTUAL FREIGHT CHARGES, OF THE RENTAL MERCHANDISE TO THE MERCHANT FROM A
WHOLESALER, DISTRIBUTOR, SUPPLIER, OR MANUFACTURER AND NET OF ANY
DISCOUNTS, REBATES, AND INCENTIVES.
13. "TOTAL OF PAYMENTS" MEANS THE TOTAL AMOUNT OF PERIODIC PAYMENTS
NECESSARY TO ACQUIRE OWNERSHIP OF THE MERCHANDISE THAT IS THE SUBJECT OF
THE RENTAL-PURCHASE AGREEMENT IF THE CONSUMER MAKES ALL REGULARLY SCHED-
ULED PAYMENTS.
S 3. Paragraph (e) of subdivision 3 and subdivisions 4, 5, 6 and 7 of
section 501 of the personal property law, as added by chapter 792 of the
A. 3083--D 3
laws of 1986, are amended and a new subdivision 8 is added to read as
follows:
(e) requiring the payment of a late charge or reinstatement fee unless
a periodic payment is delinquent for more than three days for agreements
that are renewed on week by week terms and seven days for agreements
that are renewed on month by month terms; PROVIDED, HOWEVER, THAT
NEITHER SUNDAYS NOR FEDERALLY-RECOGNIZED HOLIDAYS DURING WHICH THE
UNITED STATES POSTAL SERVICE IS NOT OPEN TO THE PUBLIC SHALL COUNT
TOWARD THE THREE OR SEVEN DAY TOTALS, and the charge or fee is in an
amount not more than the greater of ten percent of the delinquent amount
or three dollars for agreements that are renewed on week by week terms
and not more than the greater of ten percent of the delinquent amount or
five dollars for agreements that are renewed on month by month terms. In
the event that multiple items are leased to a consumer pursuant to more
than one rental-purchase agreement, any late fee imposed pursuant to
this section shall not exceed ten percent of the total of the periodic
payments that are delinquent.
4. Only one late charge or reinstatement fee may be assessed for a
delinquent periodic payment, regardless of the period during which it
remains in default. No merchant shall assess a late charge for a period-
ic payment made in full on its due date or within three days for agree-
ments that are renewed on week by week terms or seven days for agree-
ments that are renewed on month by month terms when the only delinquency
is attributable to late fees assessed on earlier periodic payments;
PROVIDED, HOWEVER, THAT NEITHER SUNDAYS NOR FEDERALLY-RECOGNIZED HOLI-
DAYS DURING WHICH THE UNITED STATES POSTAL SERVICE IS NOT OPEN TO THE
PUBLIC SHALL COUNT TOWARD THE THREE OR SEVEN DAY TOTALS. With respect
to payments accepted by mail or by store deposit box, no merchant shall
assess a late fee for payments which are post-marked or received before
the expiration of the applicable delinquency periods.
5. A rental-purchase agreement must provide that:
(a) a charge in addition to periodic payments, if any, must be reason-
ably related to the cost of a service performed;
(b) a consumer who fails to make a timely payment may reinstate an
agreement without losing rights or options previously acquired and with-
out incurring any charges, other than rental charges for the time he
possessed the property, except for those charges provided for in para-
graph (e) of subdivision three of THIS section [five hundred one of this
article] by making the required payment before the later of seven days
or half the number of days in a regular payment period after the due
date of the payment; [and]
(c) if the merchandise is returned or voluntarily surrendered by the
consumer, other than through judicial process, during the applicable
reinstatement period set forth in paragraph (b) of this subdivision, the
consumer's right to reinstate the agreement as set forth in paragraph
(b) of this subdivision shall be extended for a period of not less than
[thirty days] ONE YEAR after the date of the return of the merchandise.
[If a consumer has paid one-half the total of payments necessary to
acquire ownership, the right to reinstate the agreement shall be
extended for a period of not less than sixty days after the date of the
return of the merchandise. If a consumer has paid three-quarters of the
total of payments necessary to acquire ownership, the consumer's rights
to reinstate the agreement shall be extended for a period of not less
than one hundred eighty days after the return of the merchandise.]
6. This section does not prevent a merchant from attempting to repos-
sess merchandise during the reinstatement period[,] provided in para-
A. 3083--D 4
graph (b) of subdivision five of this section. The consumer's right to
reinstate an agreement does not expire because of such a repossession.
UPON REPOSSESSION, THE MERCHANT SHALL PROVIDE WRITTEN NOTICE TO THE
CONSUMER OF THE CONSUMER'S RIGHT TO REINSTATE THE AGREEMENT PURSUANT TO
PARAGRAPH (B) OF SUBDIVISION FIVE OF THIS SECTION AND THE FINAL DATE FOR
PAYMENTS NECESSARY FOR REINSTATEMENT PURSUANT TO SUCH PARAGRAPH ALONG
WITH THE APPROPRIATE AMOUNT DUE. On reinstatement, the merchant shall
provide the consumer with the same merchandise or substitute merchandise
of comparable quality and condition. If substitute merchandise is
provided, the merchant shall provide the consumer with the disclosures
required in subdivision seven of this section.
7. [A rental-purchase agreement must disclose in a conspicuous and
informative fashion:
(a) a description of the merchandise provided;
(b) whether the merchandise is new or used, provided however, that it
shall not be a violation of this section to indicate that the merchan-
dise is used if it is actually new;
(c) the amount and timing of rental-purchase payments;
(d) the total number of payments and the total amount that must be
paid to acquire ownership of the merchandise, which amount shall be
explicitly labelled "total cost";
(e) the amount and purpose of any payment, charge, or fee, in addition
to the regular periodic payments;
(f) whether the consumer is liable for loss or damage to the merchan-
dise and, if so, the maximum amount for which the consumer may be
liable, which in the case of loss shall in no event be greater than the
price the consumer would have paid to exercise an early purchase option
pursuant to this article. In the case of damage to the merchandise,
other than normal wear and tear the consumer shall be liable for the
lesser of the price the consumer would have paid to exercise an early
purchase option pursuant to this article or the cost of the repair as
determined by the merchant;
(g) that the consumer does not acquire ownership rights unless the
consumer has complied with the ownership terms of the agreement;
(h) the cash price of the merchandise; and
(i) a statement of the conditions under which a consumer may exercise
an early purchase option and under which the merchant or consumer may
otherwise terminate the lease] (A) EVERY RENTAL-PURCHASE AGREEMENT SHALL
BE CONTAINED IN A SINGLE DOCUMENT WHICH SHALL SET FORTH ALL OF THE
AGREEMENTS OF THE MERCHANT AND THE CONSUMER WITH RESPECT TO THE RIGHTS
AND OBLIGATIONS OF EACH PARTY. EVERY RENTAL-PURCHASE AGREEMENT SHALL BE
WRITTEN IN AT LEAST TEN-POINT TYPE IN THE SAME LANGUAGE AS PRINCIPALLY
USED IN ANY ORAL SALES PRESENTATION OR NEGOTIATIONS LEADING TO THE
EXECUTION OF THE AGREEMENT, AND SHALL CLEARLY AND CONSPICUOUSLY DISCLOSE
ALL OF THE FOLLOWING:
(1) THE NAMES OF THE MERCHANT AND THE CONSUMER, THE MERCHANT'S BUSI-
NESS ADDRESS AND TELEPHONE NUMBER, THE CONSUMER'S ADDRESS, THE DATE ON
WHICH THE AGREEMENT IS EXECUTED, AND A DESCRIPTION OF THE MERCHANDISE
SUFFICIENT TO IDENTIFY IT;
(2) WHETHER THE MERCHANDISE SUBJECT TO THE RENTAL-PURCHASE AGREEMENT
IS NEW OR USED, PROVIDED, HOWEVER THAT IT SHALL NOT BE A VIOLATION OF
THIS SECTION TO INDICATE THAT THE MERCHANDISE IS USED IF IT IS ACTUALLY
NEW;
(3) THE MINIMUM PERIOD FOR WHICH THE CONSUMER IS OBLIGATED UNDER THE
RENTAL-PURCHASE AGREEMENT; THE DURATION OF THE RENTAL-PURCHASE AGREEMENT
A. 3083--D 5
IF ALL REGULARLY SCHEDULED PERIODIC PAYMENTS ARE MADE, DESIGNATED AS THE
"RENTAL PERIOD"; AND THE AMOUNT OF EACH PERIODIC PAYMENT;
(4) THE TOTAL OF PAYMENTS AND THE TOTAL NUMBER OF PERIODIC PAYMENTS
NECESSARY TO ACQUIRE OWNERSHIP OF THE MERCHANDISE IF THE RENTER MAKES
ALL REGULARLY SCHEDULED PERIODIC PAYMENTS;
(5) THE CASH PRICE OF THE MERCHANDISE SUBJECT TO THE RENTAL PURCHASE
AGREEMENT;
(6) THE COST OF RENTAL;
(7) THE AMOUNT AND PURPOSE OF ANY OTHER PAYMENT OR FEE PERMITTED BY
THIS ARTICLE IN ADDITION TO THOSE SPECIFIED PURSUANT TO SUBPARAGRAPHS
THREE AND FOUR OF THIS PARAGRAPH, INCLUDING ANY LATE PAYMENT FEE;
(8) A STATEMENT THAT THE TOTAL NUMBER AND DOLLAR AMOUNT OF PAYMENTS
NECESSARY TO ACQUIRE OWNERSHIP OF THE RENTAL MERCHANDISE DISCLOSED UNDER
SUBPARAGRAPH FOUR OF THIS PARAGRAPH DOES NOT INCLUDE OTHER FEES PERMIT-
TED BY THIS ARTICLE, SUCH AS LATE PAYMENT FEES, AND THAT THE CONSUMER
SHOULD READ THE RENTAL-PURCHASE AGREEMENT FOR AN EXPLANATION OF ANY
APPLICABLE ADDITIONAL FEES;
(9) WHETHER THE CONSUMER IS LIABLE FOR LOSS OR DAMAGE TO THE MERCHAN-
DISE AND, IF SO, THE MAXIMUM AMOUNT FOR WHICH THE CONSUMER MAY BE
LIABLE, WHICH IN THE CASE OF LOSS SHALL IN NO EVENT BE GREATER THAN THE
PRICE THE CONSUMER WOULD HAVE PAID TO EXERCISE AN EARLY PURCHASE OPTION
PURSUANT TO THIS ARTICLE. IN THE CASE OF DAMAGE TO THE MERCHANDISE,
OTHER THAN NORMAL WEAR AND TEAR THE CONSUMER SHALL BE LIABLE FOR THE
LESSER OF THE PRICE THE CONSUMER WOULD HAVE PAID TO EXERCISE AN EARLY
PURCHASE OPTION PURSUANT TO THIS ARTICLE OR THE COST OF THE REPAIR AS
DETERMINED BY THE MERCHANT;
(10) THAT THE CONSUMER DOES NOT ACQUIRE OWNERSHIP RIGHTS UNLESS THE
CONSUMER HAS COMPLIED WITH THE OWNERSHIP TERMS OF THE AGREEMENT;
(11) THE FOLLOWING NOTICE:
NOTICE
YOU ARE RENTING THIS MERCHANDISE. YOU WILL NOT OWN IT UNTIL YOU MAKE
ALL OF THE REGULARLY SCHEDULED PAYMENTS OR YOU USE THE EARLY PURCHASE
OPTION.
YOU DO NOT HAVE THE RIGHT TO KEEP THE MERCHANDISE IF YOU DO NOT MAKE
REQUIRED PAYMENTS OR DO NOT USE THE EARLY PURCHASE OPTION. IF YOU MISS A
PAYMENT, THE MERCHANT CAN REPOSSESS THE MERCHANDISE, BUT, YOU MAY HAVE
THE RIGHT TO THE RETURN OF THE SAME OR SIMILAR MERCHANDISE.
SEE THE CONTRACT FOR AN EXPLANATION OF YOUR RIGHTS.
(12) A DESCRIPTION OF THE CONSUMER'S RIGHT TO ACQUIRE OWNERSHIP OF THE
MERCHANDISE BEFORE THE END OF THE RENTAL PERIOD AS PROVIDED IN SECTION
FIVE HUNDRED FOUR OF THIS ARTICLE;
(13) A DESCRIPTION OF THE CONSUMER'S REINSTATEMENT RIGHTS AS PROVIDED
IN SUBDIVISION SIX OF THIS SECTION;
(14) A DESCRIPTION OF THE CONSUMER'S RIGHT TO LOWER PERIODIC PAYMENT
AMOUNTS AS PROVIDED IN SECTION 504-A OF THIS ARTICLE.
(15) IF WARRANTY COVERAGE IS TRANSFERABLE TO A CONSUMER WHO ACQUIRES
OWNERSHIP OF THE MERCHANDISE, A STATEMENT THAT THE UNEXPIRED PORTION OF
ALL WARRANTIES PROVIDED BY THE MANUFACTURER, DISTRIBUTOR, OR SELLER OF
THE MERCHANDISE THAT IS THE SUBJECT OF THE RENTAL-PURCHASE AGREEMENT
WILL BE TRANSFERRED BY THE MERCHANT TO THE CONSUMER AT THE TIME THE
CONSUMER ACQUIRES OWNERSHIP OF THE MERCHANDISE FROM THE MERCHANT; AND
(16) A DESCRIPTION OF THE MERCHANT'S OBLIGATION TO MAINTAIN THE RENTAL
MERCHANDISE AND TO REPAIR OR REPLACE RENTAL MERCHANDISE THAT IS NOT
A. 3083--D 6
OPERATING PROPERLY, AS PROVIDED IN SECTION FIVE HUNDRED FOUR-B OF THIS
ARTICLE.
(B) (1) THE DISCLOSURES REQUIRED BY SUBPARAGRAPHS THREE, FOUR, FIVE,
AND SIX OF PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE PRINTED IN AT
LEAST TEN-POINT BOLDFACED TYPE OR CAPITAL LETTERS IF TYPED AND SHALL BE
GROUPED TOGETHER IN A BOX FORMED BY A HEAVY LINE IN THE FOLLOWING FORM:
________________________________________________________________________
TOTAL OF COST OF RENTAL CASH PRICE
PAYMENTS
$ $ $
YOU MUST PAY AMOUNT OVER MERCHANDISE AVAILABLE
THIS AMOUNT TO CASH AT THIS
OWN THE PRICE YOU WILL PRICE FOR CASH FROM
MERCHANDISE IF PAY IF THE MERCHANT. SEE
YOU MAKE ALL YOU MAKE ALL ABOUT YOUR
THE REGULAR REGULAR EARLY PURCHASE
PAYMENTS. PAYMENTS. OPTION RIGHTS.
YOU CAN BUY
THE MERCHANDISE
FOR LESS
UNDER THE
EARLY
PURCHASE
OPTION.
________________________________________________________________________
AMOUNT OF NUMBER RENTAL
EACH PAYMENT OF PERIOD
PAYMENTS
$
PER
_______________
(INSERT PERIOD)
________________________________________________________________________
(2) THE BOX DESCRIBED IN SUBPARAGRAPH ONE OF THIS PARAGRAPH SHALL
APPEAR IMMEDIATELY ABOVE THE SPACE RESERVED FOR THE BUYER'S SIGNATURE.
(C) THE DISCLOSURES REQUIRED BY SUBPARAGRAPHS THREE, FOUR, FIVE, AND
SIX OF PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE GROUPED TOGETHER IN A
BOX FORMED BY A HEAVY LINE IN THE FORM PRESCRIBED IN PARAGRAPH (B) OF
THIS SUBDIVISION AND SHALL BE CLEARLY AND CONSPICUOUSLY PLACED ON A TAG
OR STICKER AFFIXED TO THE MERCHANDISE AVAILABLE FOR RENTAL-PURCHASE. IF
THE MERCHANDISE AVAILABLE FOR RENTAL-PURCHASE IS NOT DISPLAYED AT THE
MERCHANT'S PLACE OF BUSINESS BUT APPEARS IN A PHOTOGRAPH OR CATALOG
SHOWN TO CONSUMERS, A TAG OR STICKER SHALL BE AFFIXED TO THE PHOTOGRAPH
OF THE MERCHANDISE OR CATALOG SHOWN TO CONSUMERS OR SHALL BE GIVEN TO
CONSUMERS. THE DISCLOSURE REQUIRED BY SUBPARAGRAPH TWO OF PARAGRAPH (A)
OF THIS SUBDIVISION ALSO SHALL BE CLEARLY AND CONSPICUOUSLY PLACED ON
THE TAG OR STICKER.
(D) ALL DISCLOSURES REQUIRED BY THIS SUBDIVISION SHALL BE PRINTED OR
TYPED IN A COLOR OR SHADE THAT CLEARLY CONTRASTS WITH THE BACKGROUND.
8. (A) (1) NO RENTAL-PURCHASE AGREEMENT SHALL CONTAIN A MANDATORY
ARBITRATION CLAUSE. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO
A. 3083--D 7
PROHIBIT A MERCHANT FROM INCORPORATING A PROVISION WITHIN SUCH CONTRACT
THAT SUCH MERCHANT AGREES THAT THE DECISION OF THE ARBITRATOR OR PANEL
OF ARBITRATORS SHALL BE FINAL IN ITS APPLICATION TO SUCH MERCHANT AND
NOT SUBJECT TO COURT REVIEW.
(2) THE PROVISIONS OF A MANDATORY ARBITRATION CLAUSE SHALL BE NULL AND
VOID. THE INCLUSION OF SUCH CLAUSE IN A RENTAL-PURCHASE AGREEMENT SHALL
NOT SERVE TO IMPAIR THE ENFORCEABILITY OF ANY OTHER PROVISION OF SUCH
CONTRACT.
(B) FOR THE PURPOSES OF THIS SUBDIVISION THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANING:
(1) "MANDATORY ARBITRATION CLAUSE" SHALL MEAN A TERM OR PROVISION
CONTAINED IN A RENTAL-PURCHASE AGREEMENT WHICH REQUIRES THE CONSUMER TO
SUBMIT ANY CONTROVERSY THEREAFTER ARISING UNDER SUCH AGREEMENT TO ARBI-
TRATION PRIOR TO THE COMMENCEMENT OF ANY LEGAL ACTION TO ENFORCE THE
PROVISIONS OF SUCH AGREEMENT AND WHICH ALSO FURTHER PROVIDES LANGUAGE TO
THE EFFECT THAT THE DECISION OF THE ARBITRATOR OR PANEL OF ARBITRATORS
IN ITS APPLICATION TO THE CONSUMER SHALL BE FINAL AND NOT SUBJECT TO
COURT REVIEW.
(2) THE TERM "ARBITRATION" SHALL MEAN THE USE OF A DECISION MAKING
FORUM CONDUCTED BY AN ARBITRATOR OR PANEL OF ARBITRATORS WITHIN THE
MEANING AND SUBJECT TO THE PROVISIONS OF ARTICLE SEVENTY-FIVE OF THE
CIVIL PRACTICE LAW AND RULES.
S 4. Section 502 of the personal property law, as added by chapter 792
of the laws of 1986, is amended to read as follows:
S 502. Availability. Every rental purchase agreement shall indicate
that a consumer at his or her [written] request shall be permitted to
review a completed rental-purchase agreement for up to [twenty-four]
FORTY-EIGHT hours prior to signing. A COPY OF THE FULLY COMPLETED
RENTAL-PURCHASE AGREEMENT AND ALL OTHER DOCUMENTS WHICH THE MERCHANT
REQUESTS THE CONSUMER TO SIGN SHALL BE GIVEN TO THE CONSUMER AT THE TIME
THEY ARE SIGNED. THE RENTAL-PURCHASE AGREEMENT SHALL NOT BE ENFORCEABLE
AGAINST THE CONSUMER UNTIL THE CONSUMER HAS RECEIVED A SIGNED COPY. IN
ADDITION TO ANY OTHER RIGHT OF CANCELLATION, A CONSUMER HAS THE RIGHT TO
CANCEL A RENTAL-PURCHASE AGREEMENT, WITHOUT PENALTY OR OBLIGATION IF THE
CONSUMER HAS NOT TAKEN POSSESSION OF THE PROPERTY.
S 5. Section 503 of the personal property law is REPEALED and a new
section 503 is added to read as follows:
S 503. TOTAL COST. 1. A MERCHANT SHALL MAINTAIN RECORDS THAT ESTAB-
LISH THE MERCHANT'S COST FOR EACH ITEM OF MERCHANDISE THAT IS THE
SUBJECT OF THE RENTAL-PURCHASE AGREEMENT. A COPY OF EACH RENTAL-PUR-
CHASE AGREEMENT AND OF THE RECORDS REQUIRED BY THIS SUBDIVISION SHALL BE
MAINTAINED FOR THREE YEARS FOLLOWING THE TERMINATION OF THE AGREEMENT.
2. THE MAXIMUM CASH PRICE FOR THE MERCHANT'S FIRST RENTAL OF THE
MERCHANDISE THAT IS THE SUBJECT OF THE RENTAL-PURCHASE AGREEMENT MAY NOT
EXCEED 1.75 TIMES THE MERCHANT'S COST FOR APPLIANCES, 1.75 TIMES THE
MERCHANT'S COST FOR ELECTRONIC SETS HAVING MERCHANT COST LESS THAN ONE
HUNDRED FIFTY DOLLARS, 1.9 TIMES THE MERCHANT'S COSTS FOR ELECTRONIC
SETS HAVING MERCHANT COST GREATER THAN OR EQUAL TO ONE HUNDRED FIFTY
DOLLARS, 2.0 TIMES THE MERCHANT'S COST FOR AUTOMOTIVE ACCESSORIES,
FURNITURE, JEWELRY, AND MUSICAL INSTRUMENTS, AND 1.75 TIMES THE
MERCHANT'S COST FOR ALL OTHER ITEMS.
3. THE MAXIMUM TOTAL OF PAYMENTS MAY NOT EXCEED 2.25 TIMES THE MAXIMUM
CASH PRICE THAT COULD HAVE BEEN CHARGED FOR THE FIRST RENTAL OF THE
MERCHANDISE UNDER SUBDIVISION TWO OF THIS SECTION.
4. THE MAXIMUM TOTAL OF PAYMENTS FOR THE MERCHANT'S SECOND AND SUBSE-
QUENT RENTAL OF THE MERCHANDISE THAT IS THE SUBJECT OF THE RENTAL-PUR-
A. 3083--D 8
CHASE AGREEMENT MAY NOT EXCEED THE MAXIMUM TOTAL OF PAYMENTS PERMITTED
UNDER THE TERMING MATRIX CONTAINED IN SUBDIVISION FIVE OF THIS SECTION.
5. (A) THE TERMING MATRIX PROVIDED FOR IN PARAGRAPH (B) OF THIS SUBDI-
VISION SHALL BE USED TO LOWER THE NUMBER OF PERIODIC PAYMENTS, WHICH
SHALL RESULT IN A LOWER TOTAL OF PAYMENTS AND A LOWER MAXIMUM CASH PRICE
FOR THE USED MERCHANDISE BASED ON ITS AGE AND CONDITION. THE MERCHANT
SHALL KEEP IN ELECTRONIC OR HARD COPY FORM, THE MATRIX USED, TOGETHER
WITH A RECORD OF THE NUMBER OF PERIODIC PAYMENTS PROVIDED IN THE FIRST
AGREEMENT FOR THE ITEM WHEN IT WAS OFFERED AS NEW, AS WELL AS A RECORD
OF THE ITEM'S CONDITION EACH TIME IT IS PRICED AS USED. THESE RECORDS
SHALL BE MAINTAINED AS LONG AS THE ITEM IS OWNED BY THE MERCHANT. NO
MERCHANT SHALL PRICE USED GOODS IN EXCESS OF THE PRICES DICTATED BY THE
MATRIX.
(B) THE ATTORNEY GENERAL SHALL MAKE AVAILABLE IN PRINTED FORM TO
MERCHANTS AND PUBLISH ON THE WEBSITE OF THE DEPARTMENT OF LAW A TERMING
MATRIX IN CHART FORM TO BE USED BY MERCHANTS AS REQUIRED PURSUANT TO
PARAGRAPH (A) OF THIS SECTION. THE CHART SHALL HAVE AS ITS TITLE "TERM-
ING MATRIX FOR USED MERCHANDISE". THE MATRIX CHART SHALL CONFORM TO THE
EXAMPLE SET FORTH IN THIS PARAGRAPH AND SHALL CONSIST OF FIVE ROWS AND
FIVE COLUMNS AND SHALL BE PRINTED IN AT LEAST TEN POINT TYPE. THE UPPER-
MOST ROW SHALL CONTAIN THE FOLLOWING LANGUAGE STARTING WITH THE LEFTMOST
COLUMN OF THE CHART AND ENDING WITH THE RIGHTMOST COLUMN: "ORIGINAL TERM
IN WEEKS WHEN NEW" "34 WEEKS OR LESS" "35 TO 38 WEEKS" "39 TO 90 WEEKS"
AND "91 WEEKS OR MORE". THE SECOND ROW SHALL CONTAIN THE FOLLOWING
LANGUAGE STARTING WITH THE LEFTMOST COLUMN OF THE CHART AND ENDING WITH
THE RIGHTMOST COLUMN: "LIKE NEW CONDITION" "SUBTRACT A MINIMUM OF 1
WEEK FROM ORIGINAL TERM" "SUBTRACT A MINIMUM OF 2 WEEKS FROM ORIGINAL
TERM" "SUBTRACT A MINIMUM OF 3 WEEKS FROM ORIGINAL TERM" "SUBTRACT A
MINIMUM OF 4 WEEKS FROM ORIGINAL TERM". THE THIRD ROW SHALL CONTAIN THE
FOLLOWING LANGUAGE STARTING WITH THE LEFTMOST COLUMN OF THE CHART AND
ENDING WITH THE RIGHTMOST COLUMN: "GOOD CONDITION" "SUBTRACT A MINIMUM
OF 3 WEEKS FROM ORIGINAL TERM" "SUBTRACT A MINIMUM OF 5 WEEKS FROM
ORIGINAL TERM" "SUBTRACT A MINIMUM OF 7 WEEKS FROM ORIGINAL TERM"
"SUBTRACT A MINIMUM OF 9 WEEKS FROM ORIGINAL TERM". THE FOURTH ROW
SHALL CONTAIN THE FOLLOWING LANGUAGE STARTING WITH THE LEFTMOST COLUMN
OF THE CHART AND ENDING WITH THE RIGHTMOST COLUMN: "FAIR CONDITION"
"SUBTRACT A MINIMUM OF 3 WEEKS FROM ORIGINAL TERM" "SUBTRACT A MINIMUM
OF 7 WEEKS FROM ORIGINAL TERM" "SUBTRACT A MINIMUM OF 10 WEEKS FROM
ORIGINAL TERM" "SUBTRACT A MINIMUM OF 13 WEEKS FROM ORIGINAL TERM". THE
FIFTH ROW SHALL CONTAIN THE FOLLOWING LANGUAGE STARTING WITH THE LEFT-
MOST COLUMN OF THE CHART AND ENDING WITH THE RIGHTMOST COLUMN: "POOR
CONDITION" "SUBTRACT A MINIMUM OF 6 WEEKS FROM ORIGINAL TERM OR CASH
SALE" "SUBTRACT A MINIMUM OF 10 WEEKS FROM ORIGINAL TERM OR CASH SALE"
"SUBTRACT A MINIMUM OF 15 WEEKS FROM ORIGINAL TERM OR CASH SALE"
"SUBTRACT A MINIMUM OF 20 WEEKS FROM ORIGINAL TERM OR CASH SALE".
TERMING MATRIX FOR USED MERCHANDISE
ORIGINAL TERM 91 WEEKS
IN WEEKS 34 WEEKS 35 - 38 WEEKS 39 - 90 WEEKS OR MORE
WHEN NEW OR LESS
LIKE NEW SUBTRACT A SUBTRACT A SUBTRACT A SUBTRACT A
CONDITION MINIMUM OF 1 MINIMUM OF 2 MINIMUM OF 3 MINIMUM OF
WEEK FROM WEEKS FROM WEEKS FROM 4 WEEKS
ORIGINAL ORIGINAL ORIGINAL FROM ORI-
A. 3083--D 9
TERM TERM TERM GINAL TERM
GOOD SUBTRACT A SUBTRACT A SUBTRACT A SUBTRACT A
CONDITION MINIMUM OF 3 MINIMUM OF 5 MINIMUM OF 7 MINIMUM OF
WEEKS FROM WEEKS FROM WEEKS FROM 9 WEEKS
ORIGINAL ORIGINAL ORIGINAL FROM ORI-
TERM TERM TERM GINAL TERM
FAIR SUBTRACT A SUBTRACT A SUBTRACT A SUBTRACT A
CONDITION MINIMUM OF 3 MINIMUM OF 7 MINIMUM OF 10 MINIMUM OF
WEEKS FROM WEEKS FROM WEEKS FROM 13 WEEKS
ORIGINAL ORIGINAL ORIGINAL FROM ORI-
TERM TERM TERM GINAL TERM
POOR SUBTRACT A SUBTRACT A SUBTRACT A SUBTRACT A
CONDITION MINIMUM OF 6 MINIMUM OF 10 MINIMUM OF 15 MINIMUM OF
WEEKS FROM WEEKS FROM WEEKS FROM 20 WEEKS
ORIGINAL ORIGINAL ORIGINAL FROM ORI-
TERM OR CASH TERM OR CASH TERM OR CASH GINAL TERM
SALE SALE SALE OR CASH
SALE
(C) IMMEDIATELY BELOW THE TERMING MATRIX, THE FOLLOWING LANGUAGE SHALL
BE PRINTED IN TEN POINT TYPE.
NEW = FULL TERM
LIKE NEW = IN GREAT SHAPE. REFURBISHED TO LOOK LIKE NEW.
GOOD = IN GOOD WORKING ORDER. REFURBISHED, BUT IMPERFECTIONS STILL
EXIST.
FAIR = COMPLETELY OPERATIONAL, BUT REFURBISHMENT HAS NOT CONCEALED OBVI-
OUS WEAR AND TEAR.
POOR = RIPPED, FADED, CRACKED OR BROKEN AND REFURBISHMENT DID NOT CHANGE
IT.
CASH SALES = IF ITEM STILL PERFORMS ITS PRIMARY FUNCTION BUT DOES NOT
MEET THE MERCHANT'S APPEARANCE STANDARDS FOR EVERYDAY RENTAL MERCHAN-
DISE, IT SHOULD BE CASH SOLD USING THE FORMULA BELOW AS THE STARTING
POINT.
REMAINING VALUE X 1.5 (OR) 50% OF THE ORIGINAL COST, WHICHEVER IS
GREATER.
IF THE ITEM IS STILL PRICED TOO HIGH TO SELL BASED ON ITS CONDITION,
THE MERCHANT MAY LOWER THE CASH PRICE FURTHER.
6. THE MAXIMUM CASH PRICE FOR MERCHANDISE ON ITS SECOND OR SUBSEQUENT
RENTAL MAY NOT EXCEED THE MAXIMUM TOTAL OF PAYMENTS FOR THAT MERCHANDISE
AS PERMITTED UNDER SUBDIVISION FIVE OF THIS SECTION DIVIDED BY 2.25.
7. UPON THE WRITTEN REQUEST OF THE ATTORNEY GENERAL A MERCHANT SHALL
PROVIDE COPIES OF THE RECORDS DESCRIBED IN THIS SECTION.
8. IF A MERCHANT INTENTIONALLY DISCLOSES A CASH PRICE OR A TOTAL OF
PAYMENTS THAT EXCEEDS THE AMOUNT PERMITTED BY THIS SECTION, THE RENTAL-
PURCHASE AGREEMENT IS VOID, THE CONSUMER SHALL RETAIN THE MERCHANDISE
WITHOUT ANY OBLIGATION, AND THE MERCHANT SHALL REFUND TO THE CONSUMER
ALL AMOUNTS PAID.
S 6. Section 504 of the personal property law is REPEALED and a new
section 504 is added to read as follows:
S 504. EARLY PURCHASE OPTION. 1. (A) THE CONSUMER HAS THE RIGHT TO
ACQUIRE OWNERSHIP OF THE MERCHANDISE WITHIN THREE MONTHS OF THE DATE ON
A. 3083--D 10
WHICH THE CONSUMER EXECUTED THE RENTAL-PURCHASE AGREEMENT BY TENDERING
TO THE MERCHANT AN AMOUNT EQUAL TO THE CASH PRICE AND ANY PAST DUE FEES
LESS ALL PERIODIC PAYMENTS THAT THE CONSUMER HAS PAID.
(B) AT LEAST THIRTY, BUT NOT MORE THAN SIXTY DAYS BEFORE A CONSUMER'S
RIGHT UNDER PARAGRAPH (A) OF THIS SUBDIVISION EXPIRES, THE MERCHANT
SHALL PERSONALLY DELIVER OR SEND BY FIRST-CLASS MAIL TO THE CONSUMER A
NOTICE INFORMING THE CONSUMER OF THE RIGHT DESCRIBED IN PARAGRAPH (A) OF
THIS SUBDIVISION, INCLUDING THE AMOUNT THE CONSUMER MUST PAY TO ACQUIRE
OWNERSHIP AND THE DATE BY WHICH PAYMENT MUST BE MADE. THE STATEMENT
SHALL NOT BE ACCOMPANIED BY ANY OTHER WRITTEN INFORMATION INCLUDING
SOLICITATIONS FOR OTHER RENTAL-PURCHASE AGREEMENTS.
2. AFTER THE EXPIRATION OF THE THREE-MONTH PERIOD FOLLOWING THE
EXECUTION OF THE RENTAL-PURCHASE AGREEMENT, THE CONSUMER HAS THE RIGHT
TO ACQUIRE OWNERSHIP OF THE MERCHANDISE AT ANY TIME BY TENDERING TO THE
MERCHANT ALL PAST DUE PAYMENTS AND FEES AND AN AMOUNT EQUAL TO THE CASH
PRICE STATED IN THE RENTAL-PURCHASE AGREEMENT MULTIPLIED BY A FRACTION
THAT HAS AS ITS NUMERATOR THE NUMBER OF PERIODIC PAYMENTS REMAINING
UNDER THE AGREEMENT AND THAT HAS AS ITS DENOMINATOR THE TOTAL NUMBER OF
PERIODIC PAYMENTS.
3. (A) THE MERCHANT SHALL, IN CONNECTION WITH A CONSUMER'S RIGHTS
UNDER SUBDIVISION TWO OF THIS SECTION, PROVIDE THE CONSUMER WITH A WRIT-
TEN STATEMENT IN THE MANNER SET FORTH IN PARAGRAPH (C) OF THIS SUBDIVI-
SION THAT CLEARLY STATES:
(1) THE TOTAL AMOUNT THE CONSUMER WOULD HAVE TO PAY TO ACQUIRE OWNER-
SHIP OF THE RENTAL MERCHANDISE IF THE CONSUMER MAKES ALL REGULARLY SCHE-
DULED PAYMENTS REMAINING UNDER THE RENTAL-PURCHASE AGREEMENT; AND
(2) THE TOTAL AMOUNT THE CONSUMER WOULD HAVE TO PAY TO ACQUIRE OWNER-
SHIP OF THAT MERCHANDISE PURSUANT TO SUBDIVISION ONE OF THIS SECTION.
(B) THE STATEMENT REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION SHALL
BE DISCLOSED IN A CLEAR AND CONSPICUOUS MANNER ON THE RECEIPT PROVIDED
TO THE CONSUMER ON ACCEPTANCE OF EVERY PERIODIC PAYMENT.
(C) THE STATEMENT REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION SHALL
BE PERSONALLY DELIVERED OR SENT BY FIRST-CLASS MAIL TO THE CONSUMER
WITHIN SEVEN DAYS AFTER:
(1) THE DATE THE CONSUMER REQUESTS INFORMATION ABOUT THE AMOUNT
REQUIRED TO PURCHASE THE RENTAL MERCHANDISE; AND
(2) THE DATE THE CONSUMER HAS MADE ONE-HALF OF THE TOTAL NUMBER OF
PERIODIC PAYMENTS REQUIRED TO ACQUIRE OWNERSHIP OF THE RENTAL MERCHAN-
DISE. THE STATEMENT SHALL NOT BE ACCOMPANIED BY ANY OTHER WRITTEN INFOR-
MATION INCLUDING SOLICITATIONS FOR OTHER RENTAL-PURCHASE AGREEMENTS.
S 7. The personal property law is amended by adding a new section
504-a to read as follows:
S 504-A. INTERRUPTION OR REDUCTION OF INCOME IN CERTAIN INSTANCES. 1.
IF ANY CONSUMER WHO HAS SIGNED A RENTAL-PURCHASE AGREEMENT EXPERIENCES
AN INTERRUPTION OR REDUCTION OF TWENTY-FIVE PERCENT OR MORE OF INCOME
DUE TO INVOLUNTARY JOB LOSS, INVOLUNTARY REDUCED EMPLOYMENT, ILLNESS,
PREGNANCY OR DISABILITY AFTER ONE-HALF OR MORE OF THE TOTAL AMOUNT OF
THE RENTAL PAYMENTS NECESSARY TO ACQUIRE OWNERSHIP UNDER THE AGREEMENT
HAS BEEN PAID, AND SUCH CONSUMER PROVIDES TO THE MERCHANT SOME EVIDENCE
OF THE AMOUNT AND CAUSE OF THE INTERRUPTION OR REDUCTION OF INCOME, THE
MERCHANT SHALL REDUCE THE AMOUNT OF EACH RENTAL PAYMENT BY (A) THE
PERCENTAGE OF THE REDUCTION IN THE CONSUMER'S INCOME OR (B) FIFTY
PERCENT, WHICHEVER IS LESS, FOR THE PERIOD DURING WHICH THE CONSUMER'S
INCOME IS INTERRUPTED OR REDUCED.
2. IF PAYMENTS ARE REDUCED, THE TOTAL DOLLAR AMOUNT OF PAYMENTS NECES-
SARY TO ACQUIRE OWNERSHIP SHALL NOT BE INCREASED, PROVIDED, HOWEVER,
A. 3083--D 11
THAT THE NUMBER OF PAYMENTS NECESSARY TO ACQUIRE OWNERSHIP MAY BE
INCREASED ACCORDINGLY AND THE RIGHTS AND DUTIES OF THE MERCHANT AND THE
CONSUMER SHALL NOT OTHERWISE BE AFFECTED.
3. WHEN THE CONSUMER'S INCOME IS RESTORED, THE MERCHANT MAY INCREASE
THE AMOUNT OF RENTAL PAYMENTS, BUT IN NO EVENT SHALL RENTAL PAYMENTS
EXCEED THE ORIGINALLY DISCLOSED AMOUNT OF RENTAL PAYMENTS.
S 8. The personal property law is amended by adding a new section
504-b to read as follows:
S 504-B. MAINTENANCE OF MERCHANDISE. 1. THE MERCHANT SHALL MAINTAIN
THE PROPERTY SUBJECT TO THE RENTAL-PURCHASE AGREEMENT IN GOOD WORKING
ORDER WHILE THE AGREEMENT IS IN EFFECT WITHOUT CHARGING ANY FEE TO THE
CONSUMER IN ADDITION TO THE REGULARLY SCHEDULED RENTAL PAYMENTS SET
FORTH IN THE RENTAL-PURCHASE AGREEMENT.
2. BY THE END OF THE SECOND BUSINESS DAY FOLLOWING THE DAY ON WHICH
THE MERCHANT RECEIVED NOTICE FROM THE CONSUMER THAT THE PROPERTY IS NOT
OPERATING PROPERLY, THE MERCHANT SHALL REPAIR OR REPLACE THE PROPERTY
WITHOUT ANY FEE TO THE CONSUMER IN ADDITION TO THE REGULARLY SCHEDULED
RENTAL PAYMENTS SET FORTH IN THE RENTAL-PURCHASE AGREEMENT.
3. IF A REPAIR OR REPLACEMENT CANNOT BE IMMEDIATELY EFFECTED, THE
MERCHANT SHALL TEMPORARILY SUBSTITUTE PROPERTY OF COMPARABLE QUALITY AND
CONDITION WHILE REPAIRS ARE BEING EFFECTED. IF REPAIRS CANNOT BE
COMPLETED TO THE REASONABLE SATISFACTION OF THE CONSUMER WITHIN THIRTY
DAYS AFTER THE MERCHANT RECEIVES NOTICE FROM THE CONSUMER OR WITHIN A
LONGER PERIOD VOLUNTARILY AGREED TO BY THE CONSUMER, THE MERCHANT SHALL
PERMANENTLY REPLACE THE PROPERTY.
4. ALL REPLACEMENT PROPERTY SHALL BE THE SAME BRAND, IF AVAILABLE, AND
COMPARABLE IN QUALITY, AGE, CONDITION, AND WARRANTY COVERAGE TO THE
REPLACED PROPERTY. IF THE SAME BRAND IS NOT AVAILABLE, THE BRAND OF THE
REPLACEMENT PROPERTY SHALL BE AGREEABLE TO THE CONSUMER, PROVIDED,
HOWEVER THAT ANY REQUEST BY THE CONSUMER SHALL NOT BE UNREASONABLE.
5. ALL OF THE CONSUMER'S AND MERCHANT'S RIGHTS AND OBLIGATIONS UNDER
THE RENTAL-PURCHASE AGREEMENT AND THIS TITLE THAT APPLIED TO THE PROPER-
TY ORIGINALLY SUBJECT TO THE RENTAL-PURCHASE AGREEMENT SHALL APPLY TO
ANY REPLACEMENT PROPERTY.
6. THE CONSUMER SHALL NOT BE CHARGED, OR HELD LIABLE FOR, ANY PRO RATA
PORTION OF A PERIODIC PAYMENT FOR ANY PERIOD OF TIME GREATER THAN ONE
FULL DAY AND EACH FULL DAY THEREAFTER DURING WHICH THE PROPERTY THAT IS
THE SUBJECT OF THE RENTAL-PURCHASE AGREEMENT OR ANY PROPERTY SUBSTITUTED
FOR IT PURSUANT TO THIS SECTION IS NOT IN GOOD WORKING ORDER.
7. THIS SECTION DOES NOT APPLY TO THE REPAIR OF DAMAGE RESULTING FROM
THE CONSUMER'S INTENTIONAL, WILLFUL, WANTON, RECKLESS, OR NEGLIGENT
CONDUCT. IF THE MERCHANT DOES NOT COMPLY WITH THIS SECTION BECAUSE OF
THIS SUBDIVISION, THE MERCHANT HAS THE BURDEN OF PROOF TO ESTABLISH THAT
NONCOMPLIANCE WAS JUSTIFIED AND IN GOOD FAITH.
8. A MERCHANT SHALL NOT DELIVER TO A CONSUMER ANY PROPERTY WHICH THE
MERCHANT KNOWS OR HAS REASON TO KNOW IS DEFECTIVE.
S 9. Subdivision 1 of section 505 of the personal property law, as
added by chapter 792 of the laws of 1986, is amended to read as follows:
1. An advertisement for a rental-purchase agreement that refers to or
states the amount of a payment or the right to acquire ownership of any
one particular item under the agreement shall clearly and conspicuously
state:
(a) that the transaction advertised is a rental-purchase agreement;
(b) the total number of payments and the total amount to be paid to
acquire ownership, which amount shall be explicitly labeled "total
cost"; [and]
A. 3083--D 12
(c) the circumstances under which the consumer can acquire ownership
rights; AND
(D) THAT THE MERCHANDISE OFFERED MAY BE NEW OR USED.
S 10. The personal property law is amended by adding a new section 508
to read as follows:
S 508. ADMINISTRATION BY ATTORNEY GENERAL. 1. THE ATTORNEY GENERAL
SHALL MAKE RULES AND REGULATIONS NECESSARY FOR THE ADMINISTRATION OF
THIS ARTICLE INCLUDING, BUT NOT LIMITED TO REGULATIONS REGARDING METHODS
MERCHANTS SHALL USE TO DETERMINE THE CASH PRICE OF MERCHANDISE AND TOTAL
OF PAYMENTS FOR MERCHANDISE OFFERED AS PRESCRIBED IN THIS ARTICLE, THE
RECORD RETENTION POLICY OF MERCHANTS, AND THE MANNER IN WHICH MERCHANTS
SHALL PROVIDE DISCLOSURES IN RENTAL-PURCHASE AGREEMENTS AND ADVERTISE-
MENTS AND ON MERCHANDISE.
2. IN ADDITION TO THE AUTHORITY PROVIDED TO THE ATTORNEY GENERAL
PURSUANT TO SECTION FIVE HUNDRED SEVEN OF THIS ARTICLE, UPON A FINDING
BY THE ATTORNEY GENERAL THAT ANY PERSON HAS COMMITTED OR IS COMMITTING A
VIOLATION OF ANY PROVISION OF THIS ARTICLE, THE ATTORNEY GENERAL MAY
ASSESS A CIVIL PENALTY AGAINST THE VIOLATOR OF NOT MORE THAN ONE THOU-
SAND DOLLARS FOR EACH ACT OR OMISSION CONSTITUTING A VIOLATION AND AN
ADDITIONAL PENALTY OF NOT MORE THAN ONE HUNDRED DOLLARS FOR EACH DAY
DURING WHICH SUCH VIOLATION CONTINUES. PRIOR TO ASSESSING A CIVIL PENAL-
TY, THE ATTORNEY GENERAL SHALL NOTIFY THE VIOLATOR IN WRITING BY CERTI-
FIED MAIL TO ITS LAST KNOWN BUSINESS ADDRESS THAT A CIVIL PENALTY WILL
BE ASSESSED PURSUANT TO THIS SECTION UNLESS THE VIOLATION IS CURED WITH-
IN THIRTY DAYS OF THE DATE OF THE MAILING OF THE NOTICE.
3. ANY PROCEEDING CONDUCTED PURSUANT TO THIS SECTION SHALL BE SUBJECT
TO THE STATE ADMINISTRATIVE PROCEDURE ACT. THE ATTORNEY GENERAL OR HIS
OR HER DESIGNEE MAY ADMINISTER OATHS AND TAKE AFFIDAVITS IN RELATION TO
ANY MATTER OR PROCEEDING IN THE EXERCISE OF THE POWERS AND DUTIES UNDER
THIS ARTICLE. THE ATTORNEY GENERAL OR HIS OR HER DESIGNEE MAY SUBPOENA
AND REQUIRE THE ATTENDANCE OF WITNESSES AND THE PRODUCTION OF BOOKS,
PAPERS, CONTRACTS AND ANY OTHER DOCUMENTS PERTAINING TO ANY INVESTI-
GATION OR HEARING CONDUCTED PURSUANT TO THIS SECTION. IF ANY PERSON
REFUSES TO COMPLY WITH A SUBPOENA ISSUED UNDER THIS SECTION, THE ATTOR-
NEY GENERAL MAY PETITION A COURT OF COMPETENT JURISDICTION TO ENFORCE
THE SUBPOENA AND SUCH SANCTIONS AS THE COURT MAY DIRECT.
4. THE ADMINISTRATIVE REMEDIES PROVIDED BY THIS SECTION SHALL NOT BE
APPLICABLE TO ANY VIOLATION OF THIS ARTICLE WHICH IS OR WAS THE SUBJECT
OF ANY ACTION OR PROCEEDING BROUGHT BY THE ATTORNEY GENERAL PURSUANT TO
SECTION FIVE HUNDRED SEVEN OF THIS ARTICLE.
S 11. This act shall take effect on the one hundred eightieth day
after it shall have become a law and shall apply to all agreements
entered into or offered on or after such date.