S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7545--A
 
                             I N  S E N A T E
 
                             January 23, 2018
                                ___________
 
 Introduced  by  Sens. FUNKE, CARLUCCI -- read twice and ordered printed,
   and when  printed  to  be  committed  to  the  Committee  on  Consumer
   Protection -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN  ACT to amend the general business law, in relation to safety recalls
   on used motor vehicles

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 198-d to read as follows:
   §  198-D.  USED  MOTOR  VEHICLES; RECALLS. (A) FOR THE PURPOSE OF THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (1) "DEALER" SHALL HAVE THE SAME MEANING AS PARAGRAPH A OF SUBDIVISION
 ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW.
   (2) "USED MOTOR VEHICLE" SHALL HAVE THE SAME MEANING AS PARAGRAPH I OF
 SUBDIVISION ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAF-
 FIC LAW.
   (3) "STOP DRIVE ORDER" SHALL MEAN A NOTIFICATION ISSUED UNDER  49  USC
 SECTION  30118  WHICH  INCLUDES  PRECAUTIONARY  ADVICE TO STOP DRIVING A
 MOTOR VEHICLE (INCLUDING THE  VEHICLE  IDENTIFICATION  NUMBER  FOR  SUCH
 VEHICLE).
   (4) "SAFER CAR WEBSITE" SHALL MEAN ANY WEBSITE, APPLICATION, OR INTER-
 NET  ACCESSED  PLATFORM  OPERATED BY THE NATIONAL HIGHWAY TRAFFIC SAFETY
 ADMINISTRATION, THE UNITED STATES DEPARTMENT OF TRANSPORTATION, OR THEIR
 AGENT AND/OR SUBCONTRACTOR, WHEREIN A CONSUMER MAY DETERMINE THE  STATUS
 OF ALL RECALLS ON ANY NEW AND/OR USED MOTOR VEHICLE.
   (B)  IF,  PRIOR  TO  EXECUTING  A CONTRACT FOR SALE OR LEASE OF A USED
 MOTOR VEHICLE AT RETAIL, A DEALER DETERMINES  PURSUANT  TO  THE  INQUIRY
 REQUIRED  BY SUBDIVISION (F) OF THIS SECTION THAT THE USED MOTOR VEHICLE
 SUBJECT TO THE CONTRACT IS UNDER A STOP DRIVE ORDER, SUCH  DEALER  SHALL
 NOT  SELL OR LEASE ANY SUCH VEHICLE UNTIL THE DEFECT OR NONCOMPLIANCE IS
 REMEDIED.
   (C) A DEALER SHALL DISCLOSE IN ANY PRINT AND ONLINE ADVERTISEMENT THAT
 ANY USED MOTOR VEHICLE BEING ADVERTISED MAY BE SUBJECT TO A RECALL,  AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD11912-05-8

 S. 7545--A                          2
 
 THAT  A  CONSUMER  MAY  OBTAIN ALL RECALL INFORMATION FROM THE SAFER CAR
 WEBSITE. TWO DAYS PRIOR TO THE SUBMISSION OF  ANY  ADVERTISEMENT  FOR  A
 USED  MOTOR  VEHICLE,  A  DEALER  SHALL MAKE AN INQUIRY ON THE SAFER CAR
 WEBSITE  FOR  ANY  OPEN  RECALLS. IF ANY OPEN RECALLS ARE LISTED ON THIS
 REPORT, THE DEALER SHALL EITHER CAUSE THE RECALL DEFECT TO  BE  REPAIRED
 BEFORE THE USED VEHICLE IS DELIVERED TO THE CONSUMER, OR CLEARLY DISPLAY
 NOTICE,  IN  SUCH  ADVERTISEMENT, STATING THAT THE PARTICULAR VEHICLE IS
 SUBJECT TO AN OPEN RECALL.
   (D) A DEALER SHALL MAINTAIN A LINK ON ANY WEBSITE OR  ONLINE  PLATFORM
 IT  CONTROLS DIRECTING THAT A CONSUMER MAY OBTAIN ALL RECALL INFORMATION
 FROM THE SAFER CAR WEBSITE.
   (E) A DEALER SHALL PLACE UPON ALL USED VEHICLES  FOR  SALE  A  STICKER
 AND/OR  DECAL  THAT  INCLUDES  INFORMATION THAT WILL ALLOW A CONSUMER TO
 CHECK THE STATUS OF ANY POTENTIAL RECALLS ON SAID  VEHICLE  THROUGH  THE
 SAFER  CAR  WEBSITE, OR SHALL INCLUDE A MEANS OF CHECKING SAID VEHICLE'S
 RECALL STATUS ON THE SAFER CAR WEBSITE BY SCANNING A BAR CODE, QR  CODE,
 OR  VEHICLE  IDENTIFICATION NUMBER, OR SHALL INCLUDE A REPORT, WHICH MAY
 BE A PRINT COPY OF THE RESULTS OF A SEARCH OF  THE  SAFER  CAR  WEBSITE,
 FROM THE SAFER CAR WEBSITE REFLECTING THE VEHICLE'S RECALL STATUS.
   (F)  A  DEALER  SHALL  PERFORM, PRIOR TO, BUT NO EARLIER THAN TWO DAYS
 BEFORE, THE EXECUTION OF THE SALE OR LEASE OF ANY USED VEHICLE, A SEARCH
 USING THE VEHICLE IDENTIFICATION NUMBER OF THE VEHICLE INVOLVED  IN  THE
 TRANSACTION  ON  THE  NATIONAL  HIGHWAY  TRAFFIC SAFETY ADMINISTRATION'S
 SAFER CAR WEBSITE, AND SHALL PRODUCE AND PROVIDE THE  REPORT  FROM  SUCH
 WEBSITE  TO  THE PURCHASER OF ANY MOTOR VEHICLE SAFETY RECALL OR RECALLS
 THAT THE MOTOR VEHICLE IS SUBJECT TO, THAT SUCH RECALLS MAY BE  REPAIRED
 BY  A  MOTOR VEHICLE DEALER APPROVED BY THE MANUFACTURER OF THE VEHICLE,
 AND THAT FURTHER INFORMATION ON THE RECALLS MAY  BE  OBTAINED  FROM  THE
 NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION ON ITS SAFER CAR WEBSITE.
 PROVIDING  A  PRINTOUT  OF THE RESULT OF THE SEARCH PROVIDED FOR IN THIS
 SUBDIVISION SHALL BE DEEMED COMPLIANCE WITH THIS REQUIREMENT,  AND  SUCH
 NOTICE  SHALL BE SIGNED BY THE PURCHASER.  ADDITIONALLY, SUCH DEALER WHO
 COMPLIES WITH THIS SUBDIVISION SHALL BE DEEMED TO HAVE COMPLIED WITH ANY
 STATE OR LOCAL LAW, RULE OR  REGULATION  RELATING  TO  DECEPTIVE  TRADE,
 BUSINESS  OR  COMMERCIAL  ACTS OR PRACTICES CONCERNING THE SALE OR LEASE
 OF, OR OFFER TO SELL OR LEASE, ANY USED MOTOR VEHICLE THAT AS  A  RESULT
 OF  A  FEDERAL  SAFETY  DEFECTIVE  OR  NONCOMPLIANT  CONDITION  HAS BEEN
 RECALLED BY THE ORIGINAL EQUIPMENT MANUFACTURER OF SUCH USED MOTOR VEHI-
 CLE OR THE UNITED STATES DEPARTMENT OF TRANSPORTATION, PROVIDED,  HOWEV-
 ER, THE PROVISIONS OF SECTION ONE HUNDRED NINETY-EIGHT-B OF THIS ARTICLE
 SHALL STILL APPLY.
   (G)  WHERE  A  FRANCHISOR  OR MANUFACTURER, AS DEFINED BY SECTION FOUR
 HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW, DIRECTLY OR INDIRECTLY
 SUBJECTS ANY DEALER TO ANY FINANCIAL OR  OTHER  PENALTIES  OR  OTHERWISE
 PENALIZES  OR  PREVENTS  A DEALER FROM SELLING OR LEASING ANY USED MOTOR
 VEHICLE SUBJECT TO RECALL, INCLUDING WHERE  ANY  SUCH  RESTRICTIONS  ARE
 IMPOSED  BY  THE  MANUFACTURER,  EITHER  THROUGH THE ISSUANCE OF A "STOP
 SELL" OR ANY OTHER COMMUNICATION, OR FEDERAL, STATE,  OR  LOCAL  LAW  OR
 REGULATION:
   (1)  THE  FRANCHISOR  OR  MANUFACTURER SHALL, WITHIN FIFTEEN DAYS FROM
 NOTICE OF A RECALL, OR UPON NOTIFICATION FROM A DEALER THAT THEY ARE  IN
 POSSESSION OF A VEHICLE SUBJECT TO SUCH RECALL, WHICH IS COVERED UNDER A
 POLICY  OR  POLICIES  AS  DESCRIBED IN THIS SUBDIVISION, PROVIDE TO SAID
 DEALER A PAYMENT OF ONE AND SEVENTY-FIVE HUNDREDTHS PERCENT OF THE VALUE
 OF A USED MOTOR VEHICLE AS DETERMINED BY THE  AVERAGE  "TRADE-IN"  VALUE
 FOR  A  SIMILAR  USED  VEHICLE  AS  INDICATED  IN A WIDELY DISSEMINATED,

 S. 7545--A                          3
 
 PUBLICLY AVAILABLE, INDEPENDENT USED MOTOR VEHICLE GUIDE FOR  THE  YEAR,
 MAKE,  MODEL, AND MILEAGE OF THE USED MOTOR VEHICLE IN THE POSSESSION OF
 THE DEALER FOR EVERY THIRTY DAYS, OR PORTION OF THIRTY DAYS, THE  DEALER
 IS  UNABLE  TO  SELL,  OFFER  TO SELL, OR REPAIR SUCH VEHICLE DUE TO THE
 INABILITY TO SATISFY ANY RECALL ISSUED FOR SUCH VEHICLE OR DUE TO COMMU-
 NICATION RECEIVED FROM THE MANUFACTURER REGARDING THE SALE OF SUCH VEHI-
 CLE; AND
   (2) THE MANUFACTURER OR FRANCHISOR SHALL  PAY  THE  DEALER  THROUGH  A
 CREDIT  TO THE DEALER'S OPEN ACCOUNT, OR BY ANY OTHER METHOD APPROVED BY
 THE DEALER.
   (H) THE MANUFACTURER OR FRANCHISOR MAY NOT RETALIATE AGAINST A  DEALER
 WHO  HAS  SUBMITTED  A CLAIM FOR REIMBURSEMENT UNDER THIS SECTION OR WHO
 WAS OTHERWISE COMPENSATED FOR A VEHICLE SUBJECT TO  A  RECALL.  FOR  THE
 PURPOSES  OF  THIS SUBDIVISION, RETALIATION SHALL INCLUDE, BUT SHALL NOT
 BE LIMITED TO, REDUCING THE AMOUNT OF COMPENSATION OTHERWISE OWED  TO  A
 DEALER, WHETHER THROUGH A CHARGEBACK, REMOVAL FROM AN INCENTIVE PROGRAM,
 REDUCING THE AMOUNT OWED UNDER AN INCENTIVE PROGRAM, OR ANY OTHER MEANS,
 IMPOSING  ADDITIONAL REQUIREMENTS, WITHHOLDING INVENTORY, REDUCING ALLO-
 CATION, REQUIRING ANY FACILITY  UPGRADE,  OR  OTHERWISE  SURCHARGING  OR
 PENALIZING  THE DEALER.  A DEALER MAY NOT, HOWEVER, RECEIVE COMPENSATION
 FOR THE SAME VEHICLE UNDER RECALL UNDER THIS SECTION, AS WELL  AS  UNDER
 ANOTHER  MANUFACTURER  PROGRAM DESIGNED TO MITIGATE DEALER COSTS FOR THE
 HOLDING OF VEHICLES UNDER RECALL,  UNLESS  OTHERWISE  ENTITLED  TO  SUCH
 COMPENSATION.
   (I) THE MANUFACTURER OR FRANCHISOR SHALL PAY FOR ANY REPAIRS PERFORMED
 BY  THE  DEALER  TO  REMEDY  ANY  RECALL,  PURSUANT TO THE PROVISIONS OF
 SECTION FOUR HUNDRED SIXTY-FIVE OF THE  VEHICLE  AND  TRAFFIC  LAW.  ANY
 REPLACEMENT  PART  PROVIDED  FOR  A  RECALL  REPAIR SHALL BE PAID AT THE
 EXISTING RETAIL REIMBURSEMENT RATE IN EXISTENCE AT THE TIME  THE  REPAIR
 IS PERFORMED.
   §  2.  This act shall take effect immediately, provided, however, that
 subdivisions (b) through (f) of section one  hundred  ninety-eight-d  of
 the  general  business  law,  as added by section one of this act, shall
 take effect sixty days after this act shall have become a law.