NY State Senate Bill 2019-S5365A

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 08, 2020	referred to consumer protection
May 09, 2019	print number 5365a
May 09, 2019	amend and recommit to consumer protection
Apr 29, 2019	referred to consumer protection

Bill Amendments

Original

A (Active)

2019-S5365 - Details

See Assembly Version of this Bill:: A1380
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §198-d, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2017-2018: A8268
2021-2022: S5593, A937
2023-2024: S2537, A3114

2019-S5365 - Summary

Relates to safety recalls on used motor vehicles; requires dealers to provide notice to purchasers of safety recalls.

2019-S5365 - Sponsor Memo

                                
 
BILL NUMBER: S5365

SPONSOR: COMRIE
 
TITLE OF BILL:  An act to amend the general business law, in relation
to safety recalls on used motor vehicles

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill will amend the general business law, in order to establish a
statewide uniform system for handling safety recalls on used cars,
ensuring that consumers are made fully aware of recalls, and dealers and
consumers remain protected when there is a serious safety recall.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill sets definitions of "Dealer," "Used motor vehicle"
and "stop drive order." Prohibits sale of vehicle if there is a stop
drive order, sets advertising requirements relating to recalls, requires
dealers to execute a search and provide a report to a purchaser from the
National Highway Traffic Safety Administration's website
http://www.safercar.gov relating to recalls, provides for procedures

between manufacturers and dealers when there is a recall, including
reimbursement, repair, and storage, and prohibits retaliation relating
to issues surrounding recalls.

Section 2 sets the effective date.

 
JUSTIFICATION:

Recalled vehicles are one of the biggest issues affecting the motor
vehicle industry. Nearly every make and model has suffered a recall at
some point, many of which are not immediately fixable and have a major
impact on consumers, dealers, distributors, and manufacturers. Federal
law provides for a system of dealing with recalls on new motor vehicles
sold by franchised dealers, but no such system exists for used vehicles.
This bill would establish a system for dealing with recalls on used
motor vehicles. Vehicle recalls can be problematic for consumers in New
York. An individual who buys a vehicle under recall must suffer the
inconvenience of waiting for a solution or new part that may or may not
be forthcoming, and have to absorb a loss in value on the vehicle that
they purchased. Recalls also harm motor vehicle dealers as well. Dealers
are not able to retail vehicles which they have purchased, are forced to
maintain vehicles on behalf of the manufacturer without being compen-
sated for the cost, and finally they may not be able to meet manufactur-
er set sales expectations.

 
PRIOR LEGISLATIVE HISTORY:

2017-18: A8268C

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2019-S5365 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5365
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 29, 2019
                                ___________
 
 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 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 THE INQUIRY REQUIRED TO BE PERFORMED BY SUBDIVISION (F) OF THIS
 SECTION REVEALS THAT THE USED MOTOR VEHICLE SUBJECT TO THE  CONTRACT  IS
 UNDER  A  STOP  DRIVE ORDER, THE DEALER REQUIRED TO PERFORM SUCH INQUIRY
 SHALL NOT SELL OR LEASE ANY SUCH VEHICLE UNTIL THE DEFECT OR  NONCOMPLI-
 ANCE 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.

                                                            LBD03742-01-9

 S. 5365                             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
 ADVERTISING  USED  CARS, WHICH 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 RECALLS ON SAID VEHICLE THROUGH  THE  SAFER  CAR
 WEBSITE,  OR  SHALL  PROVIDE  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 PROVIDE A REPORT, WHICH MAY BE A
 PRINTOUT  OF THE RESULTS OF A SEARCH OF THE SAFER CAR WEBSITE REFLECTING
 THE VEHICLE'S RECALL STATUS, PROVIDED THAT ANY SUCH REPORT  IS  NO  MORE
 THAN TWO DAYS OLD OR IS OTHERWISE ACCURATE REGARDING SAID VEHICLE.
   (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 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,  COMPLIANCE  WITH  THE  NOTICE  REQUIREMENTS FOUND IN THIS
 SECTION SHALL BE A COMPLETE DEFENSE TO ANY ACTION UNDER  SECTIONS  THREE
 HUNDRED  FORTY-NINE  OR THREE HUNDRED FIFTY OF THIS CHAPTER, SUBDIVISION
 TWELVE OF SECTION SIXTY-THREE OF THE EXECUTIVE  LAW,  OR  TO  ANY  OTHER
 STATE OR LOCAL LAW, RULE OR REGULATION TO THE EXTENT THAT SUCH ACTION IS
 PREMISED UPON ANY ALLEGED FAILURE TO PROVIDE SUFFICIENT OR TIMELY NOTICE
 OF AN OPEN RECALL.
   (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 THAT PREVENTS  OR  PENALIZES  A  DEALER
 FROM  OFFERING  A  VEHICLE  FOR SALE, OR FEDERAL, STATE, OR LOCAL LAW OR
 REGULATION:
   (1) THE FRANCHISOR OR MANUFACTURER SHALL, WHERE PARTS OR A REMEDY  ARE
 NOT  REASONABLY  AVAILABLE AND A POLICY DESCRIBED IN THIS SUBDIVISION IS
 IN EFFECT, FOLLOWING FIFTEEN DAYS NOTICE FROM A DEALER THAT THEY ARE  IN
 POSSESSION  OF  A  VEHICLE  SUBJECT  TO  THE  PROVISIONS OF THIS SECTION
 PROVIDE TO SAID DEALER A PAYMENT  OF  ONE  AND  SEVENTY-FIVE  HUNDREDTHS
 PERCENT  OF  THE  VALUE  OF  THE USED MOTOR VEHICLE AS DETERMINED BY THE
 AVERAGE "TRADE-IN" VALUE FOR A SIMILAR USED VEHICLE AS  INDICATED  IN  A
 WIDELY  DISSEMINATED, PUBLICLY AVAILABLE, INDEPENDENT USED MOTOR VEHICLE

 S. 5365                             3

 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 VEHI-
 CLE OR DUE TO A COMMUNICATION DESCRIBED IN THE OPENING PARAGRAPH OF THIS
 SUBDIVISION  RECEIVED  FROM  THE MANUFACTURER REGARDING THE SALE OF SUCH
 VEHICLE; AND
   (2) ALL REIMBURSEMENT CLAIMS MADE BY A DEALER PURSUANT TO THIS  SUBDI-
 VISION  SHALL BE SUBJECT TO THE PROCEDURE ESTABLISHED UNDER SUBDIVISIONS
 TWO THROUGH SEVEN OF SECTION FOUR HUNDRED SIXTY-FIVE OF THE VEHICLE  AND
 TRAFFIC LAW.
   (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, AND SUCH COMPENSATION IS EQUAL TO  OR  GREATER  THAN  THAT
 PROVIDED UNDER PARAGRAPH ONE OF SUBDIVISION (G) OF THIS SECTION.
   (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 on the sixtieth day after this act shall have become a law.

2019-S5365A (ACTIVE) - Details

See Assembly Version of this Bill:: A1380
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §198-d, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2017-2018: A8268
2021-2022: S5593, A937
2023-2024: S2537, A3114

2019-S5365A (ACTIVE) - Summary

Relates to safety recalls on used motor vehicles; requires dealers to provide notice to purchasers of safety recalls.

2019-S5365A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5365A

SPONSOR: COMRIE
 
TITLE OF BILL:  An act to amend the general business law, in relation
to safety recalls on used motor vehicles

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill will amend the general business law, in order to establish a
new set of standards between franchisors, manufacturers and dealers with
respect to used motor vehicles that have open recalls for which parts or
a remedy are not immediately available.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill sets definitions of "Dealer," "Used motor vehicle"
and "stop drive order." Further, language provides for procedures
between manufacturers and dealers when there is a recall, including
reimbursement, repair, and storage, and prohibits retaliation relating
to issues surrounding recalls.

Section 2 sets the effective date.

 
JUSTIFICATION:

Recalled vehicles are one of the biggest issues affecting the motor
vehicle industry. Nearly every make and model has suffered a recall at
some point, many of which are not immediately fixable and have a major
impact on consumers, dealers, distributors and manufacturers.  Federal
law provides for a system of dealing with recalls on new motor vehicles
sold by franchised dealers, but no such system exists for used vehicles.

This bill would establish certain relationships between franchisors,
manufacturers and dealers with respect to used motor vehicles that have
open recalls for which parts or a remedy are not immediately available.

Dealers who are presently stuck with vehicle stock that contains automo-
biles with open recalls that present unsolvable defects should have some
mechanism to be reimbursed or compensated by those entities responsible
for the defect that warranted the recall.

 
PRIOR LEGISLATIVE HISTORY:

2017-18: A8268C.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2019-S5365A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5365--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 29, 2019
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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).
   (B) 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 THAT PREVENTS OR PENALIZES A DEALER
 FROM OFFERING A VEHICLE FOR SALE, OR FEDERAL, STATE,  OR  LOCAL  LAW  OR
 REGULATION:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03742-03-9

 S. 5365--A                          2
 
   (1)  THE FRANCHISOR OR MANUFACTURER SHALL, WHERE PARTS OR A REMEDY ARE
 NOT REASONABLY AVAILABLE AND A POLICY DESCRIBED IN THIS  SUBDIVISION  IS
 IN  EFFECT, FOLLOWING FIFTEEN DAYS NOTICE FROM A DEALER THAT THEY ARE IN
 POSSESSION OF A VEHICLE  SUBJECT  TO  THE  PROVISIONS  OF  THIS  SECTION
 PROVIDE  TO  SAID  DEALER  A  PAYMENT OF ONE AND SEVENTY-FIVE HUNDREDTHS
 PERCENT OF THE VALUE OF THE USED MOTOR  VEHICLE  AS  DETERMINED  BY  THE
 AVERAGE  "TRADE-IN"  VALUE  FOR A SIMILAR USED VEHICLE AS INDICATED IN A
 WIDELY DISSEMINATED, 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 VEHI-
 CLE OR DUE TO A COMMUNICATION DESCRIBED IN THE OPENING PARAGRAPH OF THIS
 SUBDIVISION  RECEIVED  FROM  THE MANUFACTURER REGARDING THE SALE OF SUCH
 VEHICLE; AND
   (2) ALL REIMBURSEMENT CLAIMS MADE BY A DEALER PURSUANT TO THIS  SUBDI-
 VISION  SHALL BE SUBJECT TO THE PROCEDURE ESTABLISHED UNDER SUBDIVISIONS
 TWO THROUGH SEVEN OF SECTION FOUR HUNDRED SIXTY-FIVE OF THE VEHICLE  AND
 TRAFFIC LAW.
   (C)  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, AND SUCH COMPENSATION IS EQUAL TO  OR  GREATER  THAN  THAT
 PROVIDED UNDER PARAGRAPH ONE OF SUBDIVISION (B) OF THIS SECTION.
   (D) 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
 subdivision (b) of section one hundred  ninety-eight-d  of  the  general
 business  law, as added by section one of this act, shall take effect on
 the sixtieth day after this act shall have become a law.

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Senate Bill S5365A

Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Bill Amendments

2019-S5365 - Details

2019-S5365 - Summary

2019-S5365 - Sponsor Memo

2019-S5365 - Bill Text download pdf

2019-S5365A (ACTIVE) - Details

2019-S5365A (ACTIVE) - Summary

2019-S5365A (ACTIVE) - Sponsor Memo

2019-S5365A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5365A

Share this bill

Sponsored By

Leroy Comrie

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Bill Amendments

2019-S5365 - Details

2019-S5365 - Summary

2019-S5365 - Sponsor Memo

2019-S5365 - Bill Text download pdf

2019-S5365A (ACTIVE) - Details

2019-S5365A (ACTIVE) - Summary

2019-S5365A (ACTIVE) - Sponsor Memo

2019-S5365A (ACTIVE) - Bill Text download pdf

Comments