BILL NUMBER: S5859

SPONSOR: THOMAS
 
TITLE OF BILL:  An act to amend the personal property law, in relation
to the disclosure of liability of a motor vehicle lessee in the case of
a total loss or the vehicle is rendered inoperable

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill requires clear disclosure of the financial responsibility of a
car lessee if the car is subject of a total loss or rendered inoperable,
including the lessor's rules, policies, and procedures.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends subdivision 5 of section 337 of the Personal Property
Law to require a disclosure of the financial responsibility of a car
lessee if the car is subject of a total loss or rendered inoperable,
including the lessor's rules, policies, and procedures.

Section 2 sets the effective date.
              

 
JUSTIFICATION:

New Yorkers may not be aware that if a car they lease is totaled, then
they might not be entitled to any rebate of their down payment.

Under current law, there is no requirement of a clear and separate
disclosure of the financial obligations of a car lessee if the car
suffers a total loss or is rendered inoperable. This bill requires that
the full terms and conditions of the lessee's financial responsibilities
be provided by a car lessor in the event the car is declared a total
loss or rendered inoperable during the term of the lease.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None

 
IMPACT ON REGULATION OF BUSINESSES AND INDIVIDUALS:

Only requires disclosure of the terms of a car lease in the case of the
car being totaled or rendered inoperable.

 
EFFECT ON FINES, TERMS OF IMPRISONMENT OR OTHER PENAL SANCTIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.

                                
 
BILL NUMBER: S5859B

SPONSOR: THOMAS
 
TITLE OF BILL:  An act to amend the personal property law, in relation
to the disclosure of liability of a motor vehicle lessee in the case of
a total loss or the vehicle is rendered inoperable

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill requires clear disclosure of the financial responsibility of a
car lessee if the car is subject of a total loss or rendered inoperable,
including the lessor's rules, policies, and procedures.

 
SUMMARY OF PROVISIONS:

Section 1 amends subdivision 5 of section 337 of the Personal Property
Law to require a disclosure of the financial responsibility of a car
lessee if the car is subject of a total loss or rendered inoperable,
including the lessor's rules, policies, and procedures.

Section 2 sets the effective date and specify that the provisions of
              

this section apply only to leases entered into, renewed, modified or
amended on or after such effective date.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):

Adds language in Section 2 that specifies that the provisions of this
section apply only to leases entered into, renewed, modified, or amended
on or after such effective date.

 
JUSTIFICATION:

New Yorkers may not be aware that if a car they lease is totaled, then
they might not be entitled to any rebate of their down payment. Under
current law, there is no requirement of a clear and separate disclosure
of the financial obligations of a car lessee if the car suffers a total
loss or is rendered inoperable. This bill requires that the full terms
and conditions of the lessee's financial responsibilities be provided by
a car lessor in the event the car is declared a total loss or rendered
inoperable during the term of the lease.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
Effective immediately, and specifies that the provisions of this section
applies only to leases entered into, renewed, modified or amended on or
after such effective date.