senate Bill S1690

2013-2014 Legislative Session

Prohibits the rental of safety recalled cars until they are repaired in accordance with the recall

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to consumer protection
Jan 09, 2013 referred to consumer protection

Co-Sponsors

S1690 - Bill Details

Current Committee:
Law Section:
General Business Law
Laws Affected:
Amd ยง396-z, Gen Bus L
Versions Introduced in 2011-2012 Legislative Session:
S5618

S1690 - Bill Texts

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Restricts the rental of safety recalled cars until they are repaired in accordance with the recall; requires disclosure of such recall notices to prospective vehicle renters if such recalled cars have not been repaired.

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BILL NUMBER:S1690

TITLE OF BILL: An act to amend the general business law, in relation
to prohibiting the rental of motor vehicles that are subject to a
recall

PURPOSE OR GENERAL IDEA OF BILL: This legislation would require rental
car companies to fix defective vehicles that are subject to a federal
or manufacturer's recall. Rental car companies would have the
alternative option to alert the prospective renter to the defect, to
the recall, and to the fact that the company has not addressed the
defect so long as this disclosure is in writing, initialed by the
customer and was made known prior to any rental agreement being
signed.

SUMMARY OF PROVISIONS: Section One adds a new subdivision 16 to
section 396-z of the general business law, as amended by the laws of
2006 which requires rental car companies to inspect and repair
vehicles that are subject to a recall within 120 days of notification
that the vehicle is subject to a recall. The rental company shall
provide disclosure to the prospective renter during these 120 days, if
inspections and repairs have not yet been made. Following the 120
days, the rental car company shall have the option of providing
disclosure instead of making the inspections and repairs. All
disclosures required or permitted in this bill shall be subject to
specific requirements.

Section Two adds a new subdivision 14 to section 356-z of the general
business law, as amended by the laws of 1988 which requires rental car
companies to inspect and repair vehicles that are subject to a recall
within 120 days of notification that the vehicle is subject to a
recall. The rental company shall also have the option of providing
disclosure subject to specific requirements upon such disclosure.

Section Three provides the effective date and provides that section
two shall take effect when section one is repealed pursuant to section
4 of chapter 656 of the laws of 2002.

JUSTIFICATION: Recalls on vehicles are issued for public safety. The
federal government, as well as car manufacturers, issue recall notices
when a defect is discovered that could be potentially harmful to
someone using the vehicle. Included among the most prevalent reasons
for a motor vehicle recall are wiring and leaks that cause fire,
steering problems that lead to a loss of control, and accelerators
that break or suddenly freeze. These problems are all potentially
deadly if not addressed. Under current law, auto dealers are
prohibited from selling cars that are subject to a recall, however,
there is no regulation with respect to the rental of recalled
vehicles. This legislation holds car rental companies to heightened
restrictions similar to those placed on auto dealers by requiring
rental companies to inspect recalled vehicles, and when appropriate,
repair such vehicles. Alternatively, rental car companies may disclose
defects to potential renters if they decline to make the repairs under
the recall. Disclosure is required at all times that a vehicle is
rented by a vehicle rental company while it is subject to a recall. If
disclosure is made with respect to the existence and nature of the


recall and the specific defect, and the customer initials a form
containing this information prior to the signing of any rental
agreement, the rental car company shall be permitted to rent the
vehicle to the customer.

LEGISLATIVE HISTORY: 2012 - Consumer Protection

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately, with
provisions.

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                    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.

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