Senate Bill S3796

2009-2010 Legislative Session

Requires the owner of a leased vehicle to complete a visual inspection upon the termination of the lease agreement in the presence of the lessee

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Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to consumer protection
Apr 01, 2009	referred to consumer protection

2009-S3796 (ACTIVE) - Details

See Assembly Version of this Bill:: A176
Current Committee:: Senate Consumer Protection
Law Section:: Personal Property Law
Laws Affected:: Amd §343, Pers Prop L

2009-S3796 (ACTIVE) - Summary

Requires the owner of a leased vehicle to complete a visual inspection upon the termination of the lease agreement in the presence of the lessee.

2009-S3796 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3796

 TITLE OF BILL :
An act to amend the personal property law, in relation to requiring a
visual inspection of a leased vehicle


 PURPOSE OR GENERAL IDEA OF BILL :
The purpose of this bill is to increase consumer protection by
requiring lessors to provide a copy of an inspection of damage when
the lessee turns in the leased vehicle.

 SUMMARY OF SPECIFIC PROVISIONS :
Adds a new paragraph c to subdivision 1 of section 343 of the Personal
Property Law, requiring an inspection of a leased vehicle.

 JUSTIFICATION :
Under current law, when a lessor imposes a charge for excess wear and
tear to a vehicle, an itemized bill containing the estimated cost of
repair must be sent to the lessee within thirty days of the lessor
corning into possession of such vehicle. This legislation seeks to
improve this process by allowing the lessee to be aware of any
physical damage they may be responsible for at the point of return.

Complaints associated with auto leasing wear and tear assessments have
become more common. A common complaint is that the lessee is charged

for damage that occurred after the vehicle was turned in. Such a
dispute is difficult to resolve.

This bill would require a lessor to visually inspect the leased
vehicle immediately upon coming into possession of the vehicle and to
provide the lessee with a copy of the condition and/or damage
assessment at that time.  This would ensure that the lessee is better
informed as to what physical damage they may be responsible for when
the vehicle is turned in. In addition, the lessee would be able to ask
any questions or raise concerns about the wear and tear assessment
With the lessor.

While the lessor would be required to conduct a visual inspection of
the exterior, interior and the tires of the vehicle, this legislation
would not limit the lessor's ability to conduct another, more
extensive inspection of the leased vehicle.

This practice is common in the rental car industry. Rental car
companies visually inspect a returned rental car, in the presence of
the renter, for physical damage to the exterior and interior of the
car. The rental car company will provide the renter with a copy of the
condition of the car before the renter leaves the premises. This
enables the renter to be aware of damage they may be responsible for.

 PRIOR LEGISLATIVE HISTORY :

2007-2008: A.214 - Advanced to Third Reading, Cal. No. 660 2005-2006:
A.228 - Advanced to Third Reading 2003-2004: A.5159A - Referred to
Consumer Affairs and Protection

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
Sixty days after enactment.

2009-S3796 (ACTIVE) - Bill Text download pdf

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

                                  3796

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              April 1, 2009
                               ___________

Introduced  by  Sen.  MONSERRATE  -- read twice and ordered printed, and
  when printed to be committed to the Committee on Consumer Protection

AN ACT to amend the personal property law, in relation  to  requiring  a
  visual inspection of a leased vehicle

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

  Section 1. Subdivision 1 of section 343 of the personal  property  law
is amended by adding a new paragraph (c) to read as follows:
  (C) (I) UPON TERMINATION OF A RETAIL LEASE AGREEMENT AND UPON PHYSICAL
POSSESSION OF THE LEASED VEHICLE BY THE HOLDER OR ITS AGENTS, THE HOLDER
OR  AN AGENT THEREOF SHALL COMPLETE A VISUAL INSPECTION OF THE VEHICLE'S
CONDITION WHILE IN THE LESSEE'S PRESENCE.
  THE VISUAL INSPECTION SHALL COVER BUT NOT BE LIMITED TO  THE  EXTERIOR
BODY  OF  THE  VEHICLE,  THE  INTERIOR  OF THE VEHICLE AND THE VEHICLE'S
TIRES. THE VISUAL INSPECTION FORM SHALL BE SIGNED BY THE  HOLDER  OR  AN
AGENT THEREOF AND A COPY SHALL BE IMMEDIATELY SUPPLIED TO THE LESSEE.
  THE  VISUAL  INSPECTION  SHALL  NOT IMPAIR THE RIGHTS OF THE HOLDER TO
OBTAIN A WRITTEN ITEMIZED APPRAISAL OF EXCESSIVE WEAR AND DAMAGE TO  THE
VEHICLE PURSUANT TO PARAGRAPH (C) OF SUBDIVISION TWO OF THIS SECTION.
  (II) UPON COMMENCEMENT OF THE VISUAL INSPECTION A NOTICE CONSISTING OF
THE  FOLLOWING  STATEMENT  WRITTEN OR PRINTED IN AT LEAST TEN-POINT BOLD
TYPE ON A SEPARATE DOCUMENT FROM THE VISUAL  INSPECTION  FORM  SHALL  BE
SUPPLIED TO THE LESSEE:
  "THIS VISUAL INSPECTION OF THE VEHICLE'S CONDITION IS INTENDED TO MAKE
YOU  AWARE  OF  ANY VISIBLE DAMAGE FOR WHICH A CHARGE FOR EXCESSIVE WEAR
AND DAMAGE MAY BE CLAIMED BY THE HOLDER AND TO PROTECT  YOU  FROM  BEING
HELD  RESPONSIBLE  FOR ANY DAMAGE THAT MAY OCCUR WHILE THE HOLDER OR ITS
AGENT IS IN PHYSICAL POSSESSION OF THE VEHICLE.   PLEASE NOTE  THAT  THE
HOLDER'S  ITEMIZED  APPRAISAL,  WHICH IS PART OF A SEPARATE PROCESS FROM
THIS VISUAL INSPECTION, MAY UNCOVER WEAR AND DAMAGE THAT  IS  NOT  DOCU-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01956-03-9

S. 3796                             2

MENTED  ON  THE  VISUAL INSPECTION FORM FOR WHICH YOU MAY BE RESPONSIBLE
PURSUANT TO THE TERMS AND CONDITIONS OF YOUR RETAIL LEASE AGREEMENT."
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

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Senate Bill S3796

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Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

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2009-S3796 (ACTIVE) - Details

2009-S3796 (ACTIVE) - Summary

2009-S3796 (ACTIVE) - Sponsor Memo

2009-S3796 (ACTIVE) - Bill Text download pdf

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Sponsored By

Hiram Monserrate

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Actions

2009-S3796 (ACTIVE) - Details

2009-S3796 (ACTIVE) - Summary

2009-S3796 (ACTIVE) - Sponsor Memo

2009-S3796 (ACTIVE) - Bill Text download pdf

Comments