Senate Bill S1690

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

                                  1690

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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

AN ACT to amend the general business law, in relation to prohibiting the
  rental of motor vehicles that are subject to a recall

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

  Section  1.  Section  396-z of the general business law, as amended by
chapter 731 of the laws of 2006, is amended by adding a new  subdivision
16 to read as follows:
  16.  RENTAL  VEHICLE  COMPANIES  SHALL  INSPECT  AND,  IF APPROPRIATE,
REPAIR, OR ELIMINATE THE DEFECT IN ANY RENTAL VEHICLE  COVERED  UNDER  A
FEDERAL  OR  MANUFACTURER'S SAFETY RECALL WITHIN ONE HUNDRED TWENTY DAYS
AFTER RECEIVING SUCH NOTICE.   FOLLOWING RECEIPT OF  SUCH  NOTICE  BY  A
RENTAL VEHICLE COMPANY AND PRIOR TO INSPECTION, REPAIR OR ELIMINATION OF
A  DEFECT,  SUCH  COMPANY MAY RENT A VEHICLE THAT IS SUBJECT TO A SAFETY
RECALL PROVIDED THAT IT HAS BEEN ONE HUNDRED TWENTY DAYS OR  LESS  SINCE
RECEIVING  SUCH  NOTICE,  AND  SUCH COMPANY DISCLOSES TO ANY PROSPECTIVE
RENTER OF VEHICLES COVERED UNDER  A  FEDERAL  OR  MANUFACTURER'S  SAFETY
RECALL  THAT  THE VEHICLES ARE SUBJECT TO SAFETY RECALL NOTICES PRIOR TO
THE SIGNING OF THE RENTAL AGREEMENT. IF ONE HUNDRED  TWENTY  DAYS  SHALL
LAPSE FOLLOWING THE RECEIPT OF NOTICE BY A RENTAL VEHICLE COMPANY THAT A
FEDERAL OR MANUFACTURER'S SAFETY RECALL IS IN EFFECT ON ANY OF THE VEHI-
CLES OWNED BY THE RENTAL VEHICLE COMPANY, AND SUCH RENTAL VEHICLE COMPA-
NY  HAS  FAILED TO INSPECT, REPAIR OR ELIMINATE THE DEFECT IN SUCH VEHI-
CLES,  THE  RENTAL  VEHICLE  COMPANY  SHALL  HAVE  THE  OPTION,  AS   AN
ALTERNATIVE  TO  UNDERTAKING  THE  INSPECTIONS OR REPAIRS SUBJECT TO THE
RECALL, TO DISCLOSE TO PROSPECTIVE RENTERS OF VEHICLES COVERED  UNDER  A
FEDERAL OR MANUFACTURER'S SAFETY RECALL THAT THE VEHICLES ARE SUBJECT TO
SAFETY  RECALL  NOTICES AND HAVE NOT BEEN INSPECTED OR REPAIRED PRIOR TO
THE SIGNING OF  THE  AGREEMENT.  ANY  DISCLOSURES  REQUIRED  UNDER  THIS

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

                                                           LBD01058-01-3

S. 1690                             2

SECTION SHALL BE SET FORTH IN A SEPARATE DOCUMENT ATTACHED TO THE RENTAL
AGREEMENT  AND  SHALL STATE (A) THAT THE SPECIFIC VEHICLE IS THE SUBJECT
OF A SAFETY RECALL,  (B)  DESCRIBE  THE  RECALL  IN  QUESTION,  AND  (C)
DESCRIBE  THE  NATURE OF THE DEFECT. SUCH DISCLOSURE SHALL BE INITIALLED
BY THE PROSPECTIVE RENTER PRIOR TO THE SIGNING OF THE RENTAL AGREEMENT.
  S 2. Section 396-z of the general business law, as amended by  chapter
784  of  the  laws of 1988, is amended by adding a new subdivision 14 to
read as follows:
  14. RENTAL  VEHICLE  COMPANIES  SHALL  INSPECT  AND,  IF  APPROPRIATE,
REPAIR,  OR  ELIMINATE  THE DEFECT IN ANY RENTAL VEHICLE COVERED UNDER A
FEDERAL OR MANUFACTURER'S SAFETY RECALL WITHIN ONE HUNDRED  TWENTY  DAYS
AFTER  RECEIVING  SUCH  NOTICE.    FOLLOWING RECEIPT OF SUCH NOTICE BY A
RENTAL VEHICLE COMPANY AND PRIOR TO INSPECTION, REPAIR OR ELIMINATION OF
A DEFECT, SUCH COMPANY MAY RENT A VEHICLE THAT IS SUBJECT  TO  A  SAFETY
RECALL  PROVIDED  THAT IT HAS BEEN ONE HUNDRED TWENTY DAYS OR LESS SINCE
RECEIVING SUCH NOTICE, AND SUCH COMPANY  DISCLOSES  TO  ANY  PROSPECTIVE
RENTER  OF  VEHICLES  COVERED  UNDER  A FEDERAL OR MANUFACTURER'S SAFETY
RECALL THAT THE VEHICLES ARE SUBJECT TO SAFETY RECALL NOTICES  PRIOR  TO
THE  SIGNING  OF  THE RENTAL AGREEMENT. IF ONE HUNDRED TWENTY DAYS SHALL
LAPSE FOLLOWING THE RECEIPT OF NOTICE BY A RENTAL VEHICLE COMPANY THAT A
FEDERAL OR MANUFACTURER'S SAFETY RECALL IS IN EFFECT ON ANY OF THE VEHI-
CLES OWNED BY THE RENTAL VEHICLE COMPANY, AND SUCH RENTAL VEHICLE COMPA-
NY HAS FAILED TO INSPECT, REPAIR OR ELIMINATE THE DEFECT IN  SUCH  VEHI-
CLES,   THE  RENTAL  VEHICLE  COMPANY  SHALL  HAVE  THE  OPTION,  AS  AN
ALTERNATIVE TO UNDERTAKING THE INSPECTIONS OR  REPAIRS  SUBJECT  TO  THE
RECALL,  TO  DISCLOSE TO PROSPECTIVE RENTERS OF VEHICLES COVERED UNDER A
FEDERAL OR MANUFACTURER'S SAFETY RECALL THAT THE VEHICLES ARE SUBJECT TO
SAFETY RECALL NOTICES AND HAVE NOT BEEN INSPECTED OR REPAIRED  PRIOR  TO
THE  SIGNING  OF  THE  AGREEMENT.  ANY  DISCLOSURES  REQUIRED UNDER THIS
SECTION SHALL BE SET FORTH IN A SEPARATE DOCUMENT ATTACHED TO THE RENTAL
AGREEMENT AND SHALL STATE (A) THAT THE SPECIFIC VEHICLE IS  THE  SUBJECT
OF  A  SAFETY  RECALL,  (B)  DESCRIBE  THE  RECALL  IN QUESTION, AND (C)
DESCRIBE THE NATURE OF THE DEFECT. SUCH DISCLOSURE SHALL  BE  INITIALLED
BY THE PROSPECTIVE RENTER PRIOR TO THE SIGNING OF THE RENTAL AGREEMENT.
  S  3. This act shall take effect immediately, provided that the amend-
ments to section 396-z of the general business law, made by section  one
of  this  act,  shall be subject to the expiration and reversion of such
section pursuant to section 4 of chapter 656 of the  laws  of  2002,  as
amended, when upon such date section two of this act shall take effect.