S T A T E O F N E W Y O R K
________________________________________________________________________
4020
2019-2020 Regular Sessions
I N A S S E M B L Y
January 31, 2019
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Introduced by M. of A. HYNDMAN, DICKENS, D'URSO, MOSLEY, ARROYO, BLAKE,
WRIGHT -- read once and referred to the Committee on Consumer Affairs
and 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 109 of the laws of 2018, is amended by adding a new subdivision
17 to read as follows:
17. 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06251-01-9
A. 4020 2
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.
§ 2. 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.
§ 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 subdivision (a) of section 4 of chapter 109 of the
laws of 2018, as amended, when upon such date section two of this act
shall take effect.