S T A T E O F N E W Y O R K
________________________________________________________________________
7361
2013-2014 Regular Sessions
I N A S S E M B L Y
May 14, 2013
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Introduced by M. of A. ROSENTHAL -- read once and referred to the
Committee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to prohibiting
rental car companies and used car companies from renting, selling or
leasing vehicles that have been recalled due to safety risks
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 is amended by
adding a new subdivision 10-a to read as follows:
10-A. (A) EXCEPT AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION, IT
SHALL BE UNLAWFUL FOR A RENTAL COMPANY TO RENT, LEASE OR SELL A COVERED
VEHICLE ON OR AFTER THE EARLIER OF THE DATE OF RECEIPT BY THE RENTAL
COMPANY OF A NOTIFICATION ORDERED BY THE SECRETARY OF TRANSPORTATION
UNDER SUBSECTION (B)(2)(A) OF SECTION 30118 OF TITLE 49, UNITED STATES
CODE, OR THE DATE ON WHICH A MANUFACTURER GIVES NOTICE TO OWNERS,
PURCHASERS, AND DEALERS THAT THE COVERED VEHICLE CONTAINS A DEFECT
RELATED TO MOTOR VEHICLE SAFETY OR DOES NOT COMPLY WITH AN APPLICABLE
MOTOR VEHICLE SAFETY STANDARD, UNLESS THE DEFECT OR NONCOMPLIANCE HAS
BEEN REMEDIED PRIOR TO RENTAL, LEASE OR SALE.
(B) FOR PURPOSES OF PARAGRAPH (A) OF THIS SUBDIVISION, A RENTAL COMPA-
NY SHALL BE CONSIDERED TO HAVE RECEIVED NOTIFICATION FIVE BUSINESS DAYS
FOLLOWING THE DATE ON WHICH SUCH NOTIFICATION WAS MAILED.
(C) IF, DURING A RENTAL OR LEASE PERIOD OF A COVERED VEHICLE, A RENTAL
COMPANY RECEIVES NOTIFICATION PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVI-
SION THAT THE COVERED VEHICLE CONTAINS A DEFECT RELATED TO MOTOR VEHICLE
SAFETY OR DOES NOT COMPLY WITH AN APPLICABLE MOTOR VEHICLE SAFETY STAND-
ARD, THE RENTAL COMPANY SHALL IMMEDIATELY: (I) CONTACT THE RENTER OR
LESSEE AND ANY AUTHORIZED DRIVER FROM WHOM THE RENTAL COMPANY HAS IMME-
DIATE CONTACT INFORMATION TO INFORM SUCH RENTER OR LESSEE AND AUTHORIZED
DRIVER OF THE DEFECT OR NONCOMPLIANCE; AND (II) OFFER TO PROVIDE SUCH
RENTER, LESSEE, OR AUTHORIZED DRIVER A COMPARABLE ALTERNATIVE VEHICLE,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09233-02-3
A. 7361 2
AT NO ADDITIONAL COST TO THE RENTER, LESSEE, OR AUTHORIZED DRIVER, UNTIL
THE DEFECT OR NONCOMPLIANCE HAS BEEN REMEDIED.
S 2. Section 396-z of the general business law is amended by adding a
new subdivision 9-a to read as follows:
9-A. (A) EXCEPT AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION, IT
SHALL BE UNLAWFUL FOR A RENTAL COMPANY TO RENT, LEASE OR SELL A COVERED
VEHICLE ON OR AFTER THE EARLIER OF THE DATE OF RECEIPT BY THE RENTAL
COMPANY OF A NOTIFICATION ORDERED BY THE SECRETARY OF TRANSPORTATION
UNDER SUBSECTION (B)(2)(A) OF SECTION 30118 OF TITLE 49, UNITED STATES
CODE, OR THE DATE ON WHICH A MANUFACTURER GIVES NOTICE TO OWNERS,
PURCHASERS, AND DEALERS THAT THE COVERED VEHICLE CONTAINS A DEFECT
RELATED TO MOTOR VEHICLE SAFETY OR DOES NOT COMPLY WITH AN APPLICABLE
MOTOR VEHICLE SAFETY STANDARD, UNLESS THE DEFECT OR NONCOMPLIANCE HAS
BEEN REMEDIED PRIOR TO RENTAL, LEASE OR SALE.
(B) FOR PURPOSES OF PARAGRAPH (A) OF THIS SUBDIVISION, A RENTAL COMPA-
NY SHALL BE CONSIDERED TO HAVE RECEIVED NOTIFICATION FIVE BUSINESS DAYS
FOLLOWING THE DATE ON WHICH SUCH NOTIFICATION WAS MAILED.
(C) IF, DURING A RENTAL OR LEASE PERIOD OF A COVERED VEHICLE, A RENTAL
COMPANY RECEIVES NOTIFICATION PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVI-
SION THAT THE COVERED VEHICLE CONTAINS A DEFECT RELATED TO MOTOR VEHICLE
SAFETY OR DOES NOT COMPLY WITH AN APPLICABLE MOTOR VEHICLE SAFETY STAND-
ARD, THE RENTAL COMPANY SHALL IMMEDIATELY: (I) CONTACT THE RENTER OR
LESSEE AND ANY AUTHORIZED DRIVER FOR WHOM THE RENTAL COMPANY HAS IMMEDI-
ATE CONTACT INFORMATION TO INFORM SUCH RENTER OR LESSEE AND AUTHORIZED
DRIVER OF THE DEFECT OR NONCOMPLIANCE; AND (II) OFFER TO PROVIDE SUCH
RENTER, LESSEE, OR AUTHORIZED DRIVER A COMPARABLE ALTERNATIVE VEHICLE,
AT NO ADDITIONAL COST TO THE RENTER, LESSEE, OR AUTHORIZED DRIVER, UNTIL
THE DEFECT OR NONCOMPLIANCE HAS BEEN REMEDIED.
S 3. Section 198-b of the general business law is amended by adding a
new subdivision h to read as follows:
H. PROHIBITIONS ON CERTAIN SALES OR LEASES. NO DEALER SHALL SELL OR
LEASE A USED MOTOR VEHICLE THAT HAS BEEN RECALLED DUE TO SAFETY RISKS.
S 4. 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 the provisions of section two of this act
shall take effect.