NY State Senate Bill 2017-S5275

Archive: Last Bill Status - In Senate Committee Judiciary 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to judiciary
Mar 20, 2017	referred to judiciary

co-Sponsors

2017-S5275 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Personal Property Law
Laws Affected:: Ren Art 12 §§550 & 551 to be Art 13 §§600 & 601, add Art 12 §§550 - 552, Pers Prop L
Versions Introduced in 2015-2016 Legislative Session:: S5484

2017-S5275 (ACTIVE) - Summary

Establishes the automobile sales protection act; provides for a 3 day cooling off period after the purchase of a used car bought at a dealership.

2017-S5275 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5275

 TITLE OF BILL :

An act to amend the personal property law, in relation to establishing
the automobile sales protection act

 PURPOSE :

This bill will provide a three-day cooling off period for used vehicle
sales.

 SUMMARY OF PROVISIONS :

Section 1: Amends Article 12 and sections 500 and 551 of the personal
property law, to change the number to article 13 and sections 600 and
601, respectively, and a new article 12 is added titled the
"Automobile Sales Protection Act," with the following provisions:

§ 550: Auto purchasers may return a used vehicle at any time for any
reason to a dealership within three days of driving the vehicle off
the lot. Returning the vehicle will result in a full refund of the
purchase price, cancellation of any financing, a return of the
trade-in or the trade-in's fair market private sale value. The dealer
must return the trade-in if it is still available. The cooling off
period is cancelled immediately and the sale becomes final if the

buyer either (1) damages the vehicle in any way, (2) materially alters
or modifies the vehicle in any way, or (3) drives the vehicle more
than 250 miles.

§ 551: The Commissioner of the Department of Motor Vehicles will
establish and distribute a disclosure statement that informs
purchasers of used motor vehicles of their right to a three-day
cooling off period. The dealer must distribute this form to the
consumer, and both the consumer and dealer must sign it.

§ 552: Any prevailing plaintiff under this article is entitled to
reasonable attorney's fees to be paid by the defendant.

Section 2: This act shall take effect on the sixtieth day after it
shall have become a law; provided that, effective immediately, the
commissioner of motor vehicles is authorized to take any actions
necessary to implement the provisions of this act on its effective
date are authorized and directed to be taken on or before such date.

 EXISTING LAW :

Under current law, no cooling off period exists for automobile
purchases.

 JUSTIFICATION

A cooling off period exists for many transactions, but not for motor
vehicles. High-pressure sales environments at auto dealerships can
result in consumers agreeing to sales and financing terms that they
don't necessarily want and can regret upon finalizing a sale. Not
having adequate time to review contracts and financing terms can
confuse consumers and also results in consumers agreeing to terms that
aren't necessarily in their best interest. Providing a cooling off
period for new cars poses legitimate concerns, including the fact that
the car loses thousands of dollars of value the moment it drives off
the lot. The concern of value loss does not generally apply to used
cars; providing a cooling off period allows the consumer to utilize
the vehicle immediately, simultaneously deters fraud by bad actors,
and allows consumers a reasonable timeframe to analyze their retail

installment contract/loan and all the terms of the sale before
finalizing their decision to purchase.

 LEGISLATIVE HISTORY :

S.5484B (Savino) of 2015- referred to Judiciary Committee
S.5484B (Savino) of 2016- referred to Judiciary Committee

 FISCAL IMPLICATIONS :

None.

 LOCAL FISCAL IMPLICATIONS

None.

 EFFECTIVE DATE :
This act shall take effect on the sixtieth day after it shall have
become a law; provided that, effective immediately, the commissioner
of motor vehicle is authorized to take any actions necessary to
implement the provisions of this act on its effective date are
authorized and directed to be taken on or before such date.

2017-S5275 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5275
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 20, 2017
                                ___________
 
 Introduced by Sens. SAVINO, KLEIN -- read twice and ordered printed, and
   when printed to be committed to the Committee on Judiciary
 
 AN  ACT  to amend the personal property law, in relation to establishing
   the automobile sales protection act
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Article 12 and sections 550 and 551 of the personal proper-
 ty law, as renumbered by chapter 792 of the laws of 1986, are renumbered
 article  13 and sections 600 and 601, respectively, and a new article 12
 is added to read as follows:
                                ARTICLE 12
                      AUTOMOBILE SALES PROTECTION ACT
 SECTION 550. COOLING-OFF PERIOD FOR ALL USED CAR SALES MADE  AT  DEALER-
                SHIPS.
         551. COOLING-OFF PERIOD DISCLOSURE.
         552. ATTORNEY'S FEES.
   §  550. COOLING-OFF PERIOD FOR ALL USED CAR SALES MADE AT DEALERSHIPS.
 1. PURCHASERS OF USED VEHICLES AT CAR DEALERS SHALL  HAVE  A  THREE  DAY
 COOLING-OFF PERIOD TO BEGIN AT THE CLOSE OF THE SALE, WHEN THE PURCHASER
 TAKES  THE  VEHICLE OFF THE LOT. THIS COOLING-OFF PERIOD SHALL NOT APPLY
 TO PURCHASES OF NEW VEHICLES.  DURING  THIS  PERIOD,  THE  CONSUMER  MAY
 RETURN THE USED VEHICLE TO THE DEALER AT ANY TIME, FOR ANY REASON, FOR A
 FULL  REFUND OF THE PURCHASE PRICE, CANCELLATION OF ANY FINANCING, AND A
 RETURN OF THEIR TRADE-IN, OR ALTERNATIVELY, THE TRADE-IN'S  FAIR  MARKET
 PRIVATE  SALE  VALUE. THE DEALER MUST RETURN THE TRADE-IN IF IT IS STILL
 AVAILABLE.
   2. THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION SHALL  NOT  APPLY
 TO:
   (A) ANY USED VEHICLE THAT IS DAMAGED IN ANY WAY DURING THE COOLING-OFF
 PERIOD, AT WHICH TIME THE SALE SHALL BE DEEMED FINAL;
   (B) ANY USED VEHICLE THAT IS MATERIALLY ALTERED OR MODIFIED; OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10494-01-7

 S. 5275                             2
 
   (C)  ANY  USED  VEHICLE  THAT  IS OPERATED MORE THAN TWO HUNDRED FIFTY
 MILES DURING THE COOLING-OFF PERIOD.
   §  551.  COOLING-OFF  PERIOD  DISCLOSURE. 1. THE COMMISSIONER OF MOTOR
 VEHICLES SHALL ESTABLISH AND DISTRIBUTE A DISCLOSURE STATEMENT INFORMING
 PURCHASERS OF USED MOTOR VEHICLES OF THEIR RIGHTS PURSUANT TO THIS ARTI-
 CLE.
   2. PRIOR TO THE DELIVERY OF ANY USED MOTOR VEHICLE  PURCHASED  FROM  A
 DEALER,  SUCH  DEALER  SHALL  PROVIDE  THE PURCHASER WITH THE DISCLOSURE
 STATEMENT ESTABLISHED PURSUANT TO SUBDIVISION ONE OF THIS  SECTION,  AND
 BOTH THE DEALER AND THE PURCHASER SHALL SIGN SUCH STATEMENT.
   §  552.  ATTORNEY'S  FEES. ANY PREVAILING PLAINTIFF UNDER THIS ARTICLE
 SHALL BE ENTITLED TO REASONABLE  ATTORNEY'S  FEES  TO  BE  PAID  BY  THE
 DEFENDANT.
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law; provided that, effective immediately, the commission-
 er of motor vehicles is authorized to  take  any  actions  necessary  to
 implement  the provisions of this act on its effective date on or before
 such date.

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Senate Bill S5275

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

co-Sponsors

2017-S5275 (ACTIVE) - Details

2017-S5275 (ACTIVE) - Summary

2017-S5275 (ACTIVE) - Sponsor Memo

2017-S5275 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5275

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Sponsored By

Diane J. Savino

Archive: Last Bill Status - In Senate Committee Judiciary Committee

co-Sponsors

Jeffrey D. Klein

2017-S5275 (ACTIVE) - Details

2017-S5275 (ACTIVE) - Summary

2017-S5275 (ACTIVE) - Sponsor Memo

2017-S5275 (ACTIVE) - Bill Text download pdf

Comments