senate Bill S6320

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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Senate Actions - UPPERCASE
Jan 14, 2014 referred to consumer protection

S6320 - Bill Details

See Assembly Version of this Bill:
A5361
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Amd ยง396-z, Gen Bus L
Versions Introduced in 2011-2012 Legislative Session:
A8973, S5618

S6320 - 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:S6320

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 396-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:

A8973/S5618 of 2011-2012 - Referred to Consumer Affairs and Protection

FISCAL IMPLICATIONS:

None to the state.

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
________________________________________________________________________

                                  6320

                            I N  S E N A T E

                            January 14, 2014
                               ___________

Introduced  by  Sen. O'BRIEN -- 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
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, SUCH
COMPANY MAY RENT A VEHICLE THAT IS SUBJECT TO A SAFETY  RECALL  PROVIDED
THAT  SUCH  COMPANY  DISCLOSES  TO  ANY  PROSPECTIVE  RENTER OF VEHICLES
COVERED UNDER A FEDERAL OR MANUFACTURER'S SAFETY RECALL THAT  THE  VEHI-
CLES ARE SUBJECT TO SAFETY RECALL NOTICES AND HAVE NOT BEEN INSPECTED OR
REPAIRED  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 VEHICLES OWNED BY THE RENTAL VEHICLE  COMPANY,  AND
SUCH  RENTAL  VEHICLE COMPANY HAS FAILED TO INSPECT OR REPAIR SUCH VEHI-
CLES, THE RENTAL VEHICLE COMPANY SHALL HAVE THE OPTION, AS  AN  ALTERNA-
TIVE 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 AGREE-
MENT 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01058-02-3

S. 6320                             2

  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
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, SUCH
COMPANY MAY RENT A VEHICLE THAT IS SUBJECT TO A SAFETY  RECALL  PROVIDED
THAT  SUCH  COMPANY  DISCLOSES  TO  ANY  PROSPECTIVE  RENTER OF VEHICLES
COVERED UNDER A FEDERAL OR MANUFACTURER'S SAFETY RECALL THAT  THE  VEHI-
CLES ARE SUBJECT TO SAFETY RECALL NOTICES AND HAVE NOT BEEN INSPECTED OR
REPAIRED  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 VEHICLES OWNED BY THE RENTAL VEHICLE  COMPANY,  AND
SUCH  RENTAL  VEHICLE COMPANY HAS FAILED TO INSPECT OR REPAIR SUCH VEHI-
CLES, THE RENTAL VEHICLE COMPANY SHALL HAVE THE OPTION, AS  AN  ALTERNA-
TIVE 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 AGREE-
MENT 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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