NY State Senate Bill 2017-S7378

Senate Bill S7378

2017-2018 Legislative Session

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

download bill text pdf

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 11, 2018	referred to consumer protection

2017-S7378 (ACTIVE) - Details

See Assembly Version of this Bill:: A10250
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §396-z, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S5618, A8973
2013-2014: S1690, S6320, A5361
2015-2016: S6336, A3066
2019-2020: S2531, A4020
2021-2022: S5816, A2584
2023-2024: S2662, A2585
2025-2026: S4310, A3358

2017-S7378 (ACTIVE) - Summary

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.

2017-S7378 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7378

SPONSOR: COMRIE
 
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 (Prohibits the rental of safety recalled cars
until they are repaired in accordance with the recall).

 
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 govern-
ment, 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 appro-
priate, 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 vehi-
cle 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 infor-
mation prior to the signing of any rental agreement, the rental car
company shall be permitted to rent the vehicle to the customer.

 
LEGISLATIVE HISTORY:

2011/2012: A8973 - referred to consumer affairs and protection
2013/2014: A5361 - referred to consumer affairs and protection reported
to codes
2015/2016: 56336 - referred to consumer affairs and protection

 
FISCAL IMPLICATIONS:

None to the state.

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

2017-S7378 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7378
 
                             I N  S E N A T E
 
                             January 11, 2018
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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.

                                                            LBD01144-01-7

 S. 7378                             2
 
   § 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.
   § 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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