S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4711
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 24, 2017
                                ___________
 
 Introduced  by  Sen.  KLEIN  -- 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 certain  rental
   vehicle protections
 
   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 to read as follows:
   §  396-z.  Rental  vehicle  protections.  1.  For the purposes of this
 section: (a) "Authorized driver" [shall mean]  MEANS: (i) the person  to
 whom  the  vehicle  is  rented  if a licensed driver; (ii) such person's
 spouse if licensed and at least eighteen years of age; (iii) any  person
 who  operates  the  vehicle  during  an emergency situation to a medical
 facility; or (iv) any licensed driver expressly  listed  on  the  rental
 agreement as an authorized driver.
   (b) "Rental agreement" means any written agreement setting forth terms
 and  conditions governing the RENTER'S OR ANY authorized driver's use of
 a rental vehicle[, as defined in section one hundred  thirty-seven-a  of
 the  vehicle and traffic law,] for a period not to exceed thirty contin-
 uous days.
   (c) "Rental vehicle company" means any person or organization, or  any
 subsidiary  or  affiliate,  including  a  franchisee, in the business of
 providing rental vehicles to the public from locations in this state.
   (d) "Optional vehicle protection" means  a  rental  vehicle  company's
 agreement not to hold an authorized driver liable for all or part of any
 damage  or  loss  to  the  rented vehicle, any loss of use of the rented
 vehicle, or any storage, impound, towing or administrative  charges  for
 which [the] AN authorized driver may be liable. The term "optional vehi-
 cle  protection"  shall encompass within its meaning other similar terms
 that may be used by rental vehicle companies, such as but not limited to
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08643-02-7
              

 S. 4711                             2
 
 "Collision Damage Waiver", "CDW", "Damage Waiver", "Loss Damage Waiver",
 "LDW", and "Physical Damage Waiver".
   (e)  "Renter"  means  a  person  or  entity  that obtains the use of a
 [private passenger] RENTAL vehicle from a rental vehicle  company  under
 terms of a rental agreement.
   (f) "Consolidated facilities charge" means the allowable recovery by a
 rental  vehicle  company  from  its renters of those fees, including any
 taxes or fees paid on such fees, for the finance,  design,  construction
 and  operation  of  consolidated  airport facilities and or the finance,
 design, construction and operation of common use transportation  systems
 that  move passengers between airport terminals and [those] consolidated
 airport car rental facilities. The  aggregate  amount  to  be  collected
 shall  not  exceed  the  reasonable  costs, as determined annually by an
 independent audit paid for by the  airport  operator  or  its  governing
 entity,  to  finance, design, construct and operate those facilities and
 common use transportation systems. The consolidated  [facility]  FACILI-
 TIES  charge  shall  apply  only to vehicle rentals occurring at vehicle
 rental locations subject to the imposition of such charge by an  airport
 operator or its governing entity.
   (g) "Concession recovery fee" means the allowable recovery by a rental
 vehicle  company  from its renters of those fees, including any taxes or
 fees paid on such fees, which an airport operator or its governing enti-
 ty imposes on a rental vehicle company's applicable revenues  OR  RENTAL
 TRANSACTIONS,  as  defined  and  stated  in  a concession agreement that
 authorizes a rental vehicle company to operate at an airport located  in
 this  state.  The  concession  recovery  fee shall apply only to vehicle
 rentals occurring at vehicle rental locations subject to the  imposition
 of such fee by an airport operator or its governing entity.
   (h)  "Airport fees" means [the] consolidated [facility charge] FACILI-
 TIES CHARGES and/or [the] concession recovery [fee as  those  terms  are
 defined herein] FEES.
   (i)  "Concession  agreement"  means  an  agreement,  permit or license
 entered into between an airport operator or  its  governing  entity  and
 rental  vehicle  company  setting  forth  the terms and conditions under
 which the rental vehicle company may transact  its  rental  business  at
 such airport.
   (j)  "Consolidated  airport facilities" means those buildings or phys-
 ical structures, including, but not limited to, parking garages, parking
 areas and fueling systems, constructed by or on behalf  of  the  airport
 operator  or its governing entity to be jointly used by all rental vehi-
 cle companies operating at such airport pursuant to a concession  agree-
 ment.
   (K)  "RENTAL VEHICLE" MEANS A RENTAL VEHICLE AS DEFINED IN SECTION ONE
 HUNDRED THIRTY-SEVEN-A OF THE VEHICLE AND  TRAFFIC  LAW,  BUT  EXCLUDING
 MOTOR  VEHICLES DESIGNED, USED OR MAINTAINED PRIMARILY FOR THE TRANSPOR-
 TATION OF PROPERTY.
   2. (a) A rental vehicle company  shall  not  charge  more  than  [nine
 dollars]  THE  FOLLOWING  AMOUNTS  per  full or partial twenty-four hour
 rental day  for  optional  vehicle  protection  [if  the  manufacturer's
 suggested  retail price of the rental vehicle is not greater than thirty
 thousand dollars. A rental vehicle company shall not  charge  more  than
 twelve  dollars  per  full  or  partial  twenty-four hour rental day for
 optional vehicle protection]:
   (I) NINE DOLLARS if the manufacturer's suggested retail price  of  the
 rental vehicle is NOT greater than [thirty] TWENTY thousand dollars;

 S. 4711                             3
 
   (II)  TWELVE  DOLLARS  IF THE MANUFACTURER'S SUGGESTED RETAIL PRICE OF
 THE RENTAL VEHICLE IS GREATER  THAN  TWENTY  THOUSAND  DOLLARS  BUT  NOT
 GREATER THAN THIRTY-FIVE THOUSAND DOLLARS;
   (III)  FIFTEEN DOLLARS IF THE MANUFACTURER'S SUGGESTED RETAIL PRICE OF
 THE RENTAL VEHICLE IS GREATER THAN THIRTY-FIVE THOUSAND DOLLARS BUT  NOT
 MORE THAN FIFTY THOUSAND DOLLARS;
   (IV)  THE  AMOUNT THAT MAY BE CHARGED FOR A VEHICLE WITH A MANUFACTUR-
 ER'S SUGGESTED VALUE OF MORE THAN FIFTY THOUSAND DOLLARS  SHALL  NOT  BE
 SUBJECT  TO  A  MAXIMUM  DOLLAR  AMOUNT BUT SHALL BE SUBJECT TO THE FAIR
 MARKET VALUE AS DETERMINED BY THE RENTAL VEHICLE COMPANY; AND
   (V) COMMENCING ON THE FIRST DAY OF MARCH NEXT SUCCEEDING THE EFFECTIVE
 DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN WHICH  AMENDED
 THIS  SUBDIVISION AND ON THE FIRST DAY OF MARCH IN EACH YEAR THEREAFTER,
 THE MAXIMUM PRICES FOR OPTIONAL  VEHICLE  PROTECTION  AS  SET  FORTH  IN
 SUBPARAGRAPHS  (I),  (II) AND (III) OF THIS PARAGRAPH SHALL BE INCREASED
 OR DECREASED BY A PERCENTAGE THAT IS EQUAL TO THE INCREASE  OR  DECREASE
 IN  THE  CONSUMER  PRICE  INDEX  IN  THE PREVIOUS CALENDAR YEAR. FOR THE
 PURPOSES OF THIS PARAGRAPH, THE CONSUMER  PRICE  INDEX  SHALL  MEAN  THE
 "CPI-U CITY - ALL ITEMS" AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF
 LABOR, BUREAU OF LABOR STATISTICS.
   (b)   A  rental  vehicle  company  shall  not  sell  optional  vehicle
 protection unless the [authorized driver] RENTER agrees to the  purchase
 of  such protection in writing at or prior to the time the rental agree-
 ment is executed.
   (c)  A  rental  vehicle  company  shall  not  void  optional   vehicle
 protection except for one or more of the following reasons:
   (i) The damage or loss is caused intentionally or as a result of will-
 ful, wanton, or reckless conduct of the driver[.];
   (ii)  The  damage  or loss arises out of the driver's operation of the
 vehicle while intoxicated or impaired by the use of alcohol or drugs[.];
   (iii) The rental vehicle company entered into the  rental  transaction
 based  on  fraudulent  or  materially  false information supplied by the
 renter or authorized driver[.];
   (iv) The damage or loss arises out of the use  of  the  vehicle  while
 engaged in the commission of a crime other than a traffic infraction[.];
   (v)  The  damage or loss arises out of the use of the vehicle to carry
 persons or property for hire, to push or tow anything, while engaged  in
 a speed contest, operating off road, or for driver's training[.];
   (vi)  The  damage  or  loss  arises out of the use of the vehicle by a
 person other than: an authorized driver; a duly licensed parent or child
 OF THE RENTER WHO IS over the age of eighteen thereof [who]  AND  perma-
 nently  resides  in  the  same  household; or a parking valet or parking
 garage attendant for compensation and in the normal  course  of  employ-
 ment[.];
   (vii)  The damage or loss arises out of the use of the vehicle outside
 of the continental United States  when  that  use  is  not  specifically
 authorized by the rental agreement[.]; OR
   (viii)  The  RENTER,  AND  authorized driver [has], IF DIFFERENT, HAVE
 failed to comply with the requirements for reporting damage or  loss  as
 set forth in subdivision five of this section.
   (d) A customer may void optional vehicle protection at no charge with-
 in  twenty-four  hours  of  purchase provided that the customer: (i) has
 rented the vehicle for two or more days, (ii) appears in person  at  any
 branch  of  the  vehicle  rental  company together with the vehicle that
 shall be subject to inspection, and  (iii)  signs  a  cancellation  form
 provided  by  the  rental  vehicle  company.  AFTER TWENTY-FOUR HOURS OF

 S. 4711                             4
 
 PURCHASE, A CUSTOMER MAY TERMINATE OPTIONAL VEHICLE  PROTECTION  AT  ANY
 TIME,  PROVIDED  THE CUSTOMER (I) APPEARS IN PERSON AT ANY BRANCH OF THE
 VEHICLE RENTAL COMPANY TOGETHER WITH THE VEHICLE THAT SHALL  BE  SUBJECT
 TO  INSPECTION;  (II)  SIGNS  A CANCELLATION FORM PROVIDED BY THE RENTAL
 VEHICLE COMPANY; AND (III) PAYS THE OPTIONAL VEHICLE  PROTECTION  CHARGE
 FOR  ANY FULL OR PARTIAL RENTAL DAY OR PORTION OF A DAY DURING WHICH THE
 OPTIONAL VEHICLE PROTECTION WAS IN EFFECT.
   3. Subject to the provisions of subdivisions six, seven, and  nine  of
 this  section,  a  rental  vehicle company may hold an authorized driver
 liable for actual damage to, or loss  of,  a  rental  vehicle,  provided
 that:  (a) any claim for such damage shall be based on a physical survey
 and shall be made upon the return of the  rental  vehicle,  unless  SUCH
 SURVEY  IS  PRECLUDED  WHEN  THE VEHICLE IS returned by automation [or],
 RETURNED after-hours [which precludes such survey], OR  THE  VEHICLE  IS
 RECOVERED  BY THE RENTAL COMPANY, in which event, any claim must be made
 within ten days after return OR RECOVERY; and (b) any charge for  repair
 of such damage shall be limited to actual and reasonable costs and shall
 be  assessed  and billed separately and apart from the rental agreement.
 For purposes of this  subdivision,  "returned  by  automation"  means  a
 return  [acknowledged  by  machine receipt] and where there is no inter-
 action with rental vehicle company personnel; and  "after-hours"  return
 means  a  return  after normal business hours and in which the keys [and
 rental agreement] are [deposited in]  RETURNED  TO  the  rental  vehicle
 company  [office]  VIA A DROP BOX OR OTHER PROCESS OFFERED BY THE RENTAL
 VEHICLE COMPANY.
   4. (a) Any rental vehicle company which states or permits to be stated
 the rental costs of a rental vehicle in any  advertisement  shall  state
 conspicuously,  in plain language and in conjunction with the advertised
 rental cost of the vehicle, the daily rate of  the  applicable  optional
 vehicle protection, that the rate constitutes an additional daily charge
 to  the  renter,  that  the purchase of such protection is optional, and
 that prospective renters should examine their  credit  card  protections
 and automobile insurance policies for rental vehicle coverage.
   (b) Where a written advertisement, including all print media, contains
 the statement of the rental cost of the vehicle, the disclosure required
 by this section shall be printed in type no less than ten point type.
   (c) When the video presentation of a television or internet advertise-
 ment by the rental vehicle company contains the written statement of the
 rental  cost  of  a  vehicle,  the depiction of the cost of the optional
 vehicle protection shall be clear and conspicuous.
   (d) When a radio advertisement or the audio presentation  of  a  tele-
 vision  advertisement  contains  the statement of the rental cost of the
 motor vehicle, the oral statement of the rental cost  shall  immediately
 be  accompanied by an oral statement of the cost of the optional vehicle
 protection.
   (e) When a telephone inquiry for the rental cost of a vehicle is  made
 to  a  rental  vehicle company, the representative of the rental vehicle
 company shall, in response to an inquiry by the caller, STATE THAT ADDI-
 TIONAL OPTIONAL PRODUCTS THAT MAY  BE  OFFERED  BY  THE  RENTAL  VEHICLE
 COMPANY  ARE  NOT  INCLUDED  IN THE DAILY RENTAL RATE.  IF AN INQUIRY IS
 MADE REGARDING OPTIONAL VEHICLE PROTECTION, THE AGENT SHALL provide  the
 cost  of  the optional vehicle protection and state that the purchase of
 such protection is optional and that the  renter's  personal  automobile
 insurance or credit card may provide coverage.
   (f) Any rental vehicle company that offers optional vehicle protection
 to  [an  authorized  driver]  A  RENTER  shall  [inform] DISCLOSE TO the

 S. 4711                             5
 
 [authorized driver in posted signs or in  pamphlets,  written  in  plain
 language,  of  all  of  the information required to be disclosed by this
 section. The requirements of this paragraph shall be deemed to be satis-
 fied if the rental vehicle company places] RENTER THE FOLLOWING INFORMA-
 TION  ON  the  posted  signs  or pamphlets prominently and conspicuously
 DISPLAYED OR OFFERED where they may be easily seen or reached by custom-
 ers:
                                 "NOTICES
 
   THE FOLLOWING IS A SUMMARY OF RENTER'S  RIGHTS  AND  OBLIGATIONS.  FOR
 COMPLETE DETAILS, REFER TO THE RENTAL AGREEMENT.
   OPTIONAL  VEHICLE PROTECTION (OVP): THIS CONTRACT OFFERS, FOR AN ADDI-
 TIONAL CHARGE, OVP TO COVER YOUR FINANCIAL RESPONSIBILITY FOR DAMAGE  OR
 LOSS  TO  THE RENTAL VEHICLE. THE PURCHASE OF OVP IS OPTIONAL AND MAY BE
 DECLINED.  BEFORE DECIDING WHETHER TO PURCHASE  OVP,  YOU  MAY  WISH  TO
 DETERMINE  WHETHER  YOUR CREDIT CARD, OR YOUR VEHICLE INSURANCE, AFFORDS
 YOU COVERAGE FOR DAMAGE TO THE RENTAL VEHICLE, AND THE AMOUNT OF DEDUCT-
 IBLE UNDER SUCH COVERAGE.
   OVP - WHEN VOID: OVP IS VOID AND SHALL  NOT  APPLY  TO  THE  FOLLOWING
 SITUATIONS:
   1.  IF  THE  DAMAGE OR LOSS IS CAUSED AS A RESULT OF OPERATOR'S INTEN-
 TIONAL ACTS; WILLFUL, WANTON, OR RECKLESS CONDUCT; OR OPERATION  OF  THE
 VEHICLE WHILE INTOXICATED OR IMPAIRED BY THE USE OF DRUGS;
   2. THE RENTER, OR AUTHORIZED DRIVER, PROVIDES FRAUDULENT OR MATERIALLY
 FALSE INFORMATION TO THE RENTAL VEHICLE COMPANY;
   3. THE DAMAGE OR LOSS ARISES OUT OF THE USE OF THE RENTAL VEHICLE:
   (A)  WHILE  ENGAGED IN THE COMMISSION OF A CRIME, OTHER THAN A TRAFFIC
 INFRACTION;
   (B) THE USE OF THE VEHICLE TO CARRY PERSONS OR PROPERTY FOR  HIRE,  TO
 PUSH OR TOW ANYTHING, WHILE ENGAGED IN A SPEEDING CONTEST, OPERATING OFF
 ROAD, OR FOR DRIVER'S TRAINING;
   (C)  BY  A  PERSON  OTHER  THAN  AN AUTHORIZED DRIVER, A DULY LICENSED
 PARENT OR CHILD OVER THE AGE OF 18 WHO PERMANENTLY RESIDES IN  THE  SAME
 HOUSEHOLD,  OR A PARKING VALET OR A PARKING GARAGE ATTENDANT FOR COMPEN-
 SATION AND IN THE NORMAL COURSE OF EMPLOYMENT;
   (D) OUTSIDE OF THE CONTINENTAL UNITED  STATES  WHEN  NOT  SPECIFICALLY
 AUTHORIZED BY THE RENTAL AGREEMENT;
   (E)  EITHER  THE RENTER OR AUTHORIZED DRIVER HAS FAILED TO COMPLY WITH
 THE REQUIREMENTS FOR REPORTING DAMAGE OR LOSS AS SET FORTH IN THE RENTAL
 AGREEMENT.
   OVP - DAMAGE REPORTING REQUIREMENTS: IF THE  RENTAL  VEHICLE  SUSTAINS
 DAMAGE  OR  LOSS,  THE  RENTER  AND  AUTHORIZED  DRIVER  ARE REQUIRED TO
 COMPLETE AND RETURN AN INCIDENT REPORT  NOTICE  TO  THE  RENTAL  VEHICLE
 COMPANY.
   OVP - RIGHT TO INSPECT VEHICLE DAMAGES: THE RENTER, AUTHORIZED DRIVER,
 OR  HIS/HER INSURER, HAS THE RIGHT TO REQUEST AN INSPECTION OF THE VEHI-
 CLE DAMAGES WITHIN SEVENTY-TWO HOURS OF THE RETURN OF THE VEHICLE. FAIL-
 URE OF THE RENTER, AUTHORIZED DRIVER, OR HIS/HER INSURER TO  REQUEST  AN
 INSPECTION  WITHIN  SEVENTY-TWO HOURS OF RETURN SHALL BE DEEMED A WAIVER
 OF THE RIGHT TO INSPECT THE DAMAGED VEHICLE."
   (g) The following disclosure notice shall be made on the face  of  the
 rental  agreement  either  by  stamp,  label  or  as part of the written
 contract or on any other written document provided  to  the  [authorized
 driver  at  the time such driver takes possession of the vehicle] RENTER
 UPON EXECUTION OF SUCH CONTRACT, AND shall be set apart in boldface type
 and in no smaller print than ten point type:

 S. 4711                             6
 
   "NOTICE: This contract offers,  for  an  additional  charge,  optional
 vehicle  protection to cover your financial responsibility for damage or
 loss to the rental vehicle. The purchase of optional vehicle  protection
 is  optional  and may be declined. You are advised to carefully consider
 whether to purchase this protection if you have rental vehicle collision
 coverage  provided  by  your credit card or automobile insurance policy.
 Before deciding whether to purchase optional vehicle protection, you may
 wish to determine whether your credit card  or  your  vehicle  insurance
 affords  you coverage for damage to the rental vehicle and the amount of
 deductible under such coverage."
   (h) The contract shall also include in boldface type and in no smaller
 print than ten point type[, in plain language, any other  conditions  or
 exclusions  applicable  to  the  optional vehicle protection.   The] THE
 CONDITIONS AND EXCLUSIONS SET FORTH IN PARAGRAPH (C) OF SUBDIVISION  TWO
 OF THIS SECTION. UPON THE IDENTIFICATION OF DAMAGE TO THE RENTAL VEHICLE
 BY  THE rental vehicle company, SUCH RENTAL VEHICLE COMPANY shall [also]
 inform the [authorized driver] RENTER of his or her right to inspect the
 vehicle pursuant to paragraph (c) of subdivision five of this section.
   5. (a) Upon IDENTIFICATION OF DAMAGE BY THE RENTAL VEHICLE COMPANY  AT
 THE return of the vehicle, termination of the rental contract, or within
 ten days if returned by automation [or], RETURNED after-hours, OR RECOV-
 ERED  BY  THE  RENTAL  VEHICLE COMPANY, the rental vehicle company shall
 furnish an incident report form and a notice,  pursuant  to  this  para-
 graph,  of  the [authorized driver's] RENTER'S obligation to execute and
 return to the rental vehicle company a complete  and  accurate  incident
 report  describing any physical and/or mechanical damage. If the vehicle
 is returned by automation [or], RETURNED after-hours,  OR  RECOVERED  BY
 THE  RENTAL  VEHICLE COMPANY, such incident report form and notice shall
 be mailed by  overnight  delivery  service  or  certified  mail,  return
 receipt  requested,  and another copy of such notification shall be sent
 by regular mail. The rental vehicle company shall retain for six years a
 copy of such notice and the certified mail return receipt.
   (b) Upon return of the vehicle, or within  seventy-two  hours  if  the
 return  is  by  automation or after-hours, [the] AN authorized driver or
 his or her insurer must notify the rental vehicle company that they wish
 to inspect the damaged vehicle. The inspection must be completed  within
 seven  days  of  the  return date of the vehicle. If [the] AN authorized
 driver or his or her insurer does not request this inspection within the
 seventy-two hour period, [the] AN authorized driver or his or her insur-
 er will be deemed to have waived this right.
   (c) If the [authorized driver] RENTER declines or  fails  to  complete
 and  return  the  incident  report required pursuant to paragraph (a) of
 this subdivision, the rental  vehicle  company  shall,  no  sooner  than
 [twenty]  TEN  days  after  the mailing of notification pursuant to such
 paragraph (a), mail another copy of the incident report together with  a
 letter  stating  that  the  [authorized  driver]  RENTER has declined or
 otherwise failed to complete and return the incident report. Such  mail-
 ing  shall  be  by  overnight delivery service or certified mail, return
 receipt requested, and another copy  of  such  notification  by  regular
 mail,  with  proof  of mailing by production of a certificate of mailing
 from the post office. [Within seventy-two hours of return of  the  vehi-
 cle,  the authorized driver or his or her insurer must notify the rental
 vehicle company that he or she wishes to inspect  the  damaged  vehicle.
 The inspection must be completed within seven days of the return date of
 the  vehicle.  If  the  authorized driver or his or her insurer does not
 request this inspection within the seventy-two hour period, the  author-

 S. 4711                             7

 ized  driver  or his or her insurer will be deemed] SHOULD THE RENTER OR
 HIS OR HER INSURER WISH TO  INSPECT  THE  DAMAGED  VEHICLE,  THE  RENTAL
 COMPANY MUST RECEIVE A WRITTEN REQUEST FOR SUCH INSPECTION WITHIN SEVEN-
 TY-TWO  HOURS  OF  THE  RETURN OR RECOVERY OF THE VEHICLE. IF THE RENTAL
 COMPANY DOES NOT RECEIVE SUCH TIMELY WRITTEN NOTIFICATION OF THE  RENTER
 OR  HIS  OR  HER  INSURER'S  REQUEST TO INSPECT THE DAMAGED VEHICLE, THE
 RENTER AND HIS OR HER INSURER SHALL BE DEEMED to have waived this right.
 If the rental vehicle company determines the damaged  vehicle  to  be  a
 total  loss  and  subject  to  salvage, such seventy-two hour period for
 notification or waiver of the wish to inspect the damaged vehicle  shall
 not  apply,  and  the  [authorized  driver] RENTER or his or her insurer
 shall have ten business days from  the  [authorized  driver's]  RENTER'S
 receipt  of  notification  from  the  rental vehicle company pursuant to
 paragraph (a) of this subdivision to inspect the damaged vehicle, unless
 the rental vehicle company agrees to  provide  access  to  such  damaged
 vehicle  beyond the ten business days provided herein. Within the limits
 provided in this paragraph, the rental vehicle  company  shall  identify
 the repairer of, and provide access to, the damaged vehicle, in order to
 verify  the  nature  and  extent  of  damages, repairs and repair costs,
 and/or repair estimates.
   (d) All notices shall be mailed to the [authorized driver's]  RENTER'S
 address  as stated on his or her license, or other address as designated
 by him or her ON THE RENTAL AGREEMENT.
   (e) The [authorized driver] RENTER shall complete and return the inci-
 dent report within ten days of the receipt of the notice.
   (f) The notice required by this  subdivision  shall  be  in  at  least
 twelve point bold face type and shall contain the statement: "Failure to
 completely  and accurately fill out and return an incident report within
 ten days of receipt of this notice  may  make  the  [authorized  driver]
 RENTER  liable for damages sustained to the rental vehicle. Except where
 the damaged vehicle is determined to be a  total  loss  and  subject  to
 salvage,  [the]  AN authorized driver or his or her insurer has seventy-
 two hours from the return OR RECOVERY  of  the  vehicle  to  notify  the
 rental  vehicle  company  that  he  or she wishes to inspect the damaged
 vehicle. The inspection must be completed within seven business days  of
 the  return  OR RECOVERY date of the vehicle.  If the [authorized driver
 or his or her insurer does not request this] RENTAL VEHICLE COMPANY DOES
 NOT RECEIVE NOTIFICATION FROM AN AUTHORIZED DRIVER OR HIS OR HER INSURER
 REQUESTING SUCH inspection within the  seventy-two  hour  period,  [the]
 SUCH  authorized  driver  [or]  AND his or her insurer will be deemed to
 have waived this right. If the rental  vehicle  company  determines  the
 damaged  vehicle  to be a total loss and subject to salvage, such seven-
 ty-two hour period for notification or waiver of the wish to inspect the
 damaged vehicle shall not apply, and such right to inspect  the  damaged
 vehicle shall expire ten business days from EITHER the [authorized driv-
 er's] RENTER'S receipt of this notice from the rental vehicle company at
 the  return of the vehicle, or THE RENTER'S receipt of the first mailing
 of this notice in the event [of return of] the vehicle  IS  RETURNED  by
 automation [or], RETURNED after hours OR RECOVERED BY THE RENTAL VEHICLE
 COMPANY. Upon request of [the] AN authorized driver or his or her insur-
 er, we will provide a copy of our estimate of the costs of repairing the
 damaged motor vehicle."
   (g)  For  purposes  of this subdivision, an "incident report" shall be
 defined as a motor vehicle  accident  report  pursuant  to  section  six
 hundred  five  of the vehicle and traffic law or any similar appropriate
 form furnished by the rental vehicle company.

 S. 4711                             8
 
   (h) Provided, however, if [the] AN  authorized  driver  is  physically
 incapable of completing the report, the requirements of this subdivision
 shall  lapse until after he or she is able to complete the report and is
 notified that he or she must complete and return the report as  required
 by paragraph (b) of this subdivision.
   (i) Provided, further, THE RENTAL VEHICLE COMPANY MUST, AT LEAST twen-
 ty  days  prior  to commencing an action against the [authorized driver,
 the rental vehicle company must prove] RENTER  PROVIDE  the  [authorized
 driver  had]  RENTER an additional opportunity to [provide] COMPLETE AND
 SUBMIT the incident report by providing  a  second  notice,  along  with
 another  incident  report,  by certified mail, return receipt requested,
 and another copy of such notice and report by regular mail,  with  proof
 of  mailing  by production of a certificate of mailing[; and if]. IF the
 [authorized driver] RENTER provides the rental vehicle  company  with  a
 completed  incident  report  within  fifteen  days of the receipt of the
 notice, the provisions of this subdivision shall be deemed satisfied.
   6. (a) A rental vehicle company may hold an authorized  driver  liable
 to  the  extent  permitted under this chapter for physical or mechanical
 damage to the rental vehicle that occurs  during  the  time  the  rental
 vehicle  is  under  the  rental  agreement;  provided,  however, that [a
 renter] AN AUTHORIZED DRIVER shall not be liable for [mechanical  damage
 unrelated  to  an accident, nor for] any normal wear and tear or [other]
 mechanical damage that could reasonably be expected from normal  use  of
 the  vehicle[,  except in instances where abuse or neglect by the driver
 is shown]. For the purposes of this subdivision, "actual and  reasonable
 costs"  shall mean the repair price reduced by all discounts paid by the
 rental vehicle company to the repairer of the vehicle,  including  costs
 for towing, storage, and impound fees.
   (b) The total liability of an authorized driver under paragraph (a) of
 this  subdivision  for  damage  to  a motor vehicle shall not exceed the
 lesser of:
   (i) the actual and reasonable costs that the  rental  vehicle  company
 incurred  to repair the motor vehicle or that the rental vehicle company
 would have incurred if the motor vehicle had been repaired, which  shall
 reflect any discounts, price reductions, or adjustments available to the
 rental vehicle company; or
   (ii) the fair market value of the motor vehicle immediately before the
 damage  occurred,  as determined in the applicable market for the retail
 sale of the motor vehicle, less any net disposal proceeds.
   (c) The total liability of an authorized driver under paragraph (a) of
 this subdivision for loss of a motor vehicle shall not exceed reasonable
 costs incurred by the rental vehicle company for the loss due  to  theft
 of  the rental vehicle up to its fair market value, as determined by the
 applicable market for the retail sale of that vehicle if  it  is  estab-
 lished  that  an authorized driver failed to exercise reasonable care or
 that an authorized driver committed, or aided or abetted in the  commis-
 sion of, the theft of the rental motor vehicle.
   (d)  Damages  incurred by rental vehicle companies for the loss of use
 of a rental vehicle and related administrative fees shall not be  recov-
 ered  [from  authorized drivers] FROM THE RENTER, ANY AUTHORIZED DRIVER,
 OR HIS OR HER INSURER.
   (e) A rental vehicle company  shall  not  hold  an  authorized  driver
 liable for any amounts that the rental vehicle company recovers from any
 other party.

 S. 4711                             9
 
   (f)  A  rental vehicle company shall not collect or attempt to collect
 the amount described in paragraph (b) of  this  subdivision  unless  the
 rental vehicle company:
   (i)  obtains  an estimate from a repair company or an appraiser in the
 business of providing such appraisals on the cost of repairing the motor
 vehicle;
   (ii) provides a copy of the estimate and  photographic  evidence  upon
 request  to  the [authorized driver] PARTY who may be liable under para-
 graph (a) of this subdivision, or the insurer of [the authorized driver]
 SUCH PARTY; and
   (iii) submits a copy of the estimate with any  claim  to  collect  the
 amount described in paragraph (b) of this subdivision.
   (g)  [A  claim  against  an authorized driver resulting from damage or
 loss to a rental vehicle shall be reasonable and rationally  related  to
 the  actual  loss  incurred.]  A  rental  vehicle company shall mitigate
 damages where possible and shall not assert or  collect  any  claim  for
 physical  damage which exceeds the amount authorized under paragraph (b)
 of this subdivision.
   (h) If insurance coverage exists under the [authorized driver's appli-
 cable] insurance policy OF THE RENTER OR AUTHORIZED DRIVER, AS  APPLICA-
 BLE, the RENTER OR authorized driver may require that the rental vehicle
 company submit any claims to the RENTER OR authorized driver's insurance
 carrier.  Upon  the  request  of [an] A RENTER OR authorized driver, the
 rental vehicle company shall submit any claims to [the authorized  driv-
 er's]  SUCH PERSON'S insurance carrier and shall not make any written or
 oral representations to the contrary, nor shall it make any  written  or
 oral  representations  that  it  will not negotiate with [the authorized
 driver's] SUCH insurance carrier.
   7. (a) No rental vehicle company shall require any security,  deposit,
 or  charge  for  damage in any form, by credit card or otherwise, during
 the term of the rental agreement or pending resolution of any dispute.
   (b) [No rental vehicle company shall require a deposit or  an  advance
 charge against the credit card of an authorized driver, in any form, for
 damages  to  a  rental  vehicle  which  is  in  the  authorized driver's
 possession or control.
   (c)] No rental vehicle company shall require any payment to the rental
 vehicle company, upon [the authorized driver's] return  OR  RECOVERY  of
 the  vehicle  in a damaged condition, until after the cost of the damage
 to the vehicle and liability therefor is agreed to  between  the  rental
 vehicle  company and the [authorized driver] RENTER OR HIS OR HER INSUR-
 ER, or is determined pursuant to law  OR  CONTRACT;  provided,  however,
 that  a  rental vehicle company is not precluded from presenting a claim
 to the RENTER OR AN authorized driver, AND APPLICABLE INSURANCE CARRIERS
 pursuant to other provisions of this section.
   [(d)] (C) Causes of action concerning the existence of, liability for,
 and extent and cost of damage to the vehicle shall,  where  appropriate,
 be  commenced by a rental vehicle company in a commercial claims part in
 accordance with the limitations  and  jurisdiction  of  the  appropriate
 court act.
   8.  No  rental  vehicle company shall advertise or quote a rental rate
 that does not include all charges, except taxes or optional items and/or
 services or any mileage charge, which an authorized driver must  pay  to
 obtain  a  rental  vehicle.  Provided, however, a rental vehicle company
 shall be permitted to  separately  quote  and  charge  airport  fees  as
 defined  herein,  which  shall  be  in  addition to the rental rate; and
 provided further that advertised rental rates that include locations  at

 S. 4711                            10
 
 which  airport  fees  apply  shall clearly indicate that additional fees
 apply.
   9. No rental vehicle company shall hold any [authorized driver] RENTER
 liable  for  any damage to, or loss of, a rental vehicle, as provided by
 this section, unless the rental vehicle company  prominently  discloses,
 on  the  rental  agreement, in at least ten point bold face display, the
 nature and extent of such liability and such driver's rights and respon-
 sibilities [under] PURSUANT TO PARAGRAPH (C) OF SUBDIVISION TWO OF  THIS
 SECTION AND PARAGRAPH (G) OF SUBDIVISION FOUR OF this section.
   10.  (a)  A rental vehicle company shall not charge in addition to the
 rental rate, taxes, and mileage charge, if any, any fee  which  must  be
 paid as a condition of renting the vehicle, such as, but not limited to,
 required  fuel  surcharges,  each of which shall be separately stated on
 the rental agreement. In addition, a rental  vehicle  company  may  also
 state separately and charge, where applicable, airport fees as such term
 is defined herein.
   (b)  In  addition  to the rental rate, taxes, applicable airport fees,
 and mileage charge, if any, a rental vehicle company may charge  for  an
 item  or  service provided in connection with a particular rental trans-
 action if the renter could have avoided  incurring  the  charge  by  not
 choosing to obtain or utilize the optional item or service, such as, but
 not  limited  to,  optional  accessories  or  services  requested by the
 renter, service charges incident to the renter's optional return of  the
 vehicle  to  a  location  other  than the location where the vehicle was
 rented, and charges for refueling the vehicle with as much fuel  as  was
 in the fuel tank at the beginning of the rental.
   (c) A rental vehicle company shall make available detachable or remov-
 able  seats  which  meet  the requirements of subdivision one of section
 twelve hundred twenty-nine-c of the vehicle and traffic law.
   (d) Fees for additional authorized drivers shall  not  exceed  [three]
 FIVE dollars per additional driver per rental day.
   (e)  A  rental  vehicle company shall furnish with each rental vehicle
 pursuant to an agreement either an owner's manual  or  a  diagram  which
 shall  indicate the location and plain language description of the func-
 tions necessary for the safe and  efficient  operation  of  the  vehicle
 which shall at a minimum include:
   (i) Headlights;
   (ii) Brakes and emergency brake;
   (iii) Turn signal indicators;
   (iv) Hazard lights;
   (v) Windshield wipers and washers;
   (vi) Horn;
   (vii) Cruise control;
   (viii) Heat control system including defrost systems;
   (ix) Car locking systems; and
   (x)  Spare  tire  and car jack, tire wrench, and jacking locations, IF
 APPLICABLE. In the event the rental vehicle company  elects  to  include
 the  owner's  manual  pursuant to this section, if the owner's manual is
 not returned with the vehicle, the renter shall be liable to the  rental
 vehicle  company  for  the actual replacement cost of the owner's manual
 plus an administrative fee.
   11. Any clause or provision of a rental  agreement  inconsistent  with
 the  provisions  of  this section shall be deemed void as against public
 policy.
   12. Any rental vehicle company found by a court of competent jurisdic-
 tion to have violated a provision of this section shall be subject to  a

 S. 4711                            11
 
 penalty of not less than five hundred dollars nor more than one thousand
 dollars for each violation.
   13. (a) Whenever there shall be a violation of this section, an appli-
 cation  may be made by the attorney general in the name of the people of
 the state of New York to a court of competent jurisdiction by a  special
 proceeding for the imposition of a fine or the issuance of an injunction
 against any violation of this section, upon notice to the rental vehicle
 company  of  not less than five days, to enjoin and restrain the contin-
 uance of such violations.
   (b) If the court finds that the defendant has, in fact, violated  this
 section,  an  injunction  may  be  issued  by  such court, enjoining and
 restraining any further violation,  without  requiring  proof  that  any
 person has, in fact, been injured or damaged thereby.
   (c)  In  any  proceeding  pursuant  to this subdivision, the court may
 direct restitution and  make  allowances  to  the  attorney  general  as
 provided in section sixty-three of the executive law.
   (d)  In  support  of any application pursuant to this subdivision, the
 attorney general is authorized to take proof, determine  relevant  facts
 and issue subpoenae in accordance with the civil practice law and rules.
   13-a.  A  rental  vehicle  company  shall not use information from any
 global positioning system technology to determine or impose  any  costs,
 fees,  charges,  or  penalties on an authorized driver for such driver's
 use of a rental vehicle. The use of global positioning technology  shall
 not  limit  the right of a rental vehicle company to impose costs, fees,
 charges, or penalties to recover a vehicle that is lost,  misplaced,  or
 stolen.  The  provisions  of  this subdivision shall not be construed to
 modify or supersede any other provision of law.
   14. An authorized driver shall provide notice to  the  rental  vehicle
 company  [or] AND law enforcement agency within twelve hours of learning
 of the theft of the rental vehicle.
   15. In accordance with any  applicable  federal  law  or  rule,  every
 rental  vehicle  company  shall  display  the following in a conspicuous
 location, with lettering that is legible and  that  shall  be  at  least
 three-quarters of an inch boldface type:
   "NOTICE:  New  York  State  Law  prohibits  the following practices by
 rental vehicle companies based upon race, color,  ethnic  origin,  reli-
 gion,  disability, sex, marital status, or age: (1) refusal to rent; (2)
 the imposition of any additional charge  (except  in  certain  instances
 where  the  renter  is under the age of 25). In addition, it is unlawful
 for any rental vehicle company to refuse to rent a vehicle to any person
 solely on the requirement of ownership of a credit card."
   16. ANY NOTICE OR DISCLOSURE REQUIRED TO BE PROVIDED, DELIVERED, POST-
 ED, OR OTHERWISE MADE AVAILABLE BY A RENTAL VEHICLE COMPANY PURSUANT  TO
 THIS ARTICLE SHALL ALSO BE DEEMED TIMELY AND EFFECTIVELY MADE WHERE SUCH
 NOTICE  OR  DISCLOSURE  IS  (I)  PROVIDED OR DELIVERED ELECTRONICALLY OR
 OTHERWISE AT OR BEFORE THE TIME REQUIRED, OR (II) INCLUDED IN  A  MEMBER
 OR  MASTER  AGREEMENT IN EFFECT AT THE TIME OF RENTAL.  FOR THE PURPOSES
 OF THIS ARTICLE, A MASTER OR MEMBER AGREEMENT SHALL INCLUDE, BUT NOT  BE
 LIMITED TO, (A) ANY SERVICE OFFERED BY A COMPANY THAT PERMITS RENTERS TO
 BYPASS A RETAIL SERVICE LOCATION AND OBTAIN A PRODUCT OR SERVICE DIRECT-
 LY;  (B) WHERE THE RENTAL VEHICLE COMPANY DOES NOT REQUIRE THE RENTER TO
 EXECUTE A RENTAL AGREEMENT AT THE TIME  OF  RENTAL;  OR  (C)  WHERE  THE
 RENTER  DOES  NOT RECEIVE THE RENTAL TERMS AND CONDITIONS AT THE TIME OF
 RENTAL. ELECTRONIC OR WRITTEN ACCEPTANCE SHALL HEREBY BE DEEMED A  VALID
 FORM  OF  ACCEPTANCE  OF  ANY  SUCH NOTICE OR DISCLOSURE, AND ACCEPTANCE
 SHALL REMAIN EFFECTIVE UNTIL SUCH TIME AS  ACCEPTANCE  IS  AFFIRMATIVELY

 S. 4711                            12
 
 WITHDRAWN  BY  THE RENTER. NOTICES AND DISCLOSURES MADE PURSUANT TO THIS
 SUBDIVISION SHALL BE EXEMPT FROM  ANY  PLACEMENT  OR  STYLISTIC  DISPLAY
 REQUIREMENTS, INCLUDING BUT NOT LIMITED TO LOCATION, FONT SIZE, TYPESET,
 OR  OTHER  SPECIFICALLY  STATED DESCRIPTION; PROVIDED SUCH DISCLOSURE IS
 GENERALLY CONSISTENT IN APPEARANCE WITH THE  ENTIRETY  OF  THE  COMMUNI-
 CATION IN WHICH IT IS CONTAINED.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law provided, however,  that  the  amendments  to  section
 396-z  of  the  general  business  law, made by section one of this act,
 shall not affect the expiration and reversion of certain  provisions  of
 such  section  pursuant to section 4 of chapter 656 of the laws of 2002,
 as amended, and shall be deemed repealed therewith.