The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    192
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  THOMAS -- 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 warranties  and
   protections for purchasers of new and used motor vehicles

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraphs 1 and 5 of subdivision (a) of section  198-a  of
 the  general  business law, paragraph 1 as amended by chapter 530 of the
 laws of 1990, paragraph 5 as added by chapter 799 of the laws  of  1986,
 are amended to read as follows:
   (1)  ["Consumer"] "PURCHASER" means the purchaser, lessee or transfer-
 ee, other than for purposes of resale, of a motor vehicle which is  used
 primarily  for  personal, family or household, OR COMMERCIAL OR BUSINESS
 purposes and any other person entitled by the terms of  the  manufactur-
 er's warranty to enforce the obligations of such warranty;
   (5) "Lessee" means any [consumer] PURCHASER who leases a motor vehicle
 pursuant  to a written lease agreement which provides that the lessee is
 responsible for repairs to such motor vehicle.
   § 2. Subdivision (b) of section 198-a of the general business law,  as
 amended  by  chapter  279 of the laws of 1989, paragraph 1 as amended by
 chapter 217 of the laws of 1990, is amended to read as follows:
   (b) (1) If a new motor vehicle which is sold and  registered  in  this
 state  does not conform to all express warranties during the first eigh-
 teen thousand miles of operation or  during  the  period  of  two  years
 following  the  date  of  original delivery of the motor vehicle to such
 [consumer] PURCHASER, whichever is  the  earlier  date,  the  [consumer]
 PURCHASER  shall  during such period report the nonconformity, defect or
 condition to the manufacturer, its agent or its  authorized  dealer.  If
 the  notification  is received by the manufacturer's agent or authorized
 dealer, the agent or dealer shall  within  seven  days  forward  written
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD02302-01-1

 S. 192                              2
 
 notice  thereof  to  the  manufacturer by certified mail, return receipt
 requested, and shall include  in  such  notice  a  statement  indicating
 whether  or not such repairs have been undertaken. The manufacturer, its
 agent  or its authorized dealer shall correct said nonconformity, defect
 or condition at no charge to the [consumer]  PURCHASER,  notwithstanding
 the  fact that such repairs are made after the expiration of such period
 of operation or such two year period.
   (2) If a manufacturer's agent or authorized dealer refuses  to  under-
 take  repairs within seven days of receipt of the notice by a [consumer]
 PURCHASER of a nonconformity, defect or condition pursuant to  paragraph
 one  of  this  subdivision,  the  [consumer]  PURCHASER  may immediately
 forward written notice of such refusal to the manufacturer by  certified
 mail,  return  receipt  requested.    The manufacturer or its authorized
 agent shall have twenty days from receipt of such notice of  refusal  to
 commence such repairs. If within such twenty day period, the manufactur-
 er  or its authorized agent fails to commence such repairs, the manufac-
 turer, at the option of the  [consumer]  PURCHASER,  shall  replace  the
 motor  vehicle  with a comparable motor vehicle, or accept return of the
 vehicle from the [consumer]  PURCHASER  and  refund  to  the  [consumer]
 PURCHASER the full purchase price or, if applicable, the lease price and
 any  trade-in  allowance  plus  fees  and charges. Such fees and charges
 shall include but not be limited to all license fees, registration  fees
 and any similar governmental charges, less an allowance for the [consum-
 er's] PURCHASER'S use of the vehicle in excess of the first twelve thou-
 sand  miles  of  operation  pursuant  to  the  mileage deduction formula
 defined in paragraph four of subdivision (a)  of  this  section,  and  a
 reasonable  allowance  for any damage not attributable to normal wear or
 improvements.
   § 3. Paragraphs 1 and 2 of subdivision (c) of  section  198-a  of  the
 general  business law, paragraph 1 as amended by chapter 234 of the laws
 of 1990, paragraph 2 as amended by chapter 29 of the laws of  1989,  are
 amended to read as follows:
   (1)  If,  within  the  period  specified  in  subdivision  (b) of this
 section, the manufacturer or its agents or authorized dealers are unable
 to repair or correct any defect or condition which substantially impairs
 the value of the motor vehicle  to  the  [consumer]  PURCHASER  after  a
 reasonable  number  of  attempts, the manufacturer, at the option of the
 [consumer] PURCHASER, shall replace the motor vehicle with a  comparable
 motor  vehicle,  or  accept  return  of  the vehicle from the [consumer]
 PURCHASER and refund to the [consumer] PURCHASER the full purchase price
 or, if applicable, the lease price and any trade-in allowance plus  fees
 and  charges.  Any  return  of a motor vehicle may, at the option of the
 [consumer] PURCHASER, be made to the dealer or other authorized agent of
 the manufacturer who sold such vehicle to the [consumer] PURCHASER or to
 the dealer or other authorized agent who attempted to repair or  correct
 the  defect  or condition which necessitated the return and shall not be
 subject to any further shipping charges. Such  fees  and  charges  shall
 include  but  not  be limited to all license fees, registration fees and
 any similar governmental charges, less an allowance for the [consumer's]
 PURCHASER'S use of the vehicle in excess of the  first  twelve  thousand
 miles  of operation pursuant to the mileage deduction formula defined in
 paragraph four of subdivision (a) of  this  section,  and  a  reasonable
 allowance  for  any  damage  not attributable to normal wear or improve-
 ments.
   (2) A manufacturer which accepts return of the motor  vehicle  because
 the  motor  vehicle  does  not  conform to its warranty shall notify the

 S. 192                              3
 
 commissioner of the department of motor vehicles that the motor  vehicle
 was  returned  to the manufacturer for nonconformity to its warranty and
 shall disclose, in  accordance  with  the  provisions  of  section  four
 hundred  seventeen-a  of  the  vehicle  and  traffic law prior to resale
 either at wholesale or retail, that it was previously  returned  to  the
 manufacturer for nonconformity to its warranty. Refunds shall be made to
 the  [consumer] PURCHASER and lienholder, if any, as their interests may
 appear on the records of ownership kept by the department of motor vehi-
 cles.  Refunds shall be accompanied by the proper application for credit
 or refund of state and local sales taxes as published by the  department
 of  taxation  and finance and by a notice that the sales tax paid on the
 purchase price, lease price or portion thereof being refunded is refund-
 able by the commissioner of taxation and finance in accordance with  the
 provisions  of  subdivision (f) of section eleven hundred thirty-nine of
 the tax law. If applicable, refunds shall be  made  to  the  lessor  and
 lessee as their interests may appear on the records of ownership kept by
 the  department  of motor vehicles, as follows: the lessee shall receive
 the capitalized cost and the lessor shall receive the lease  price  less
 the  aggregate deposit and rental payments previously paid to the lessor
 for the leased vehicle. The terms of the lease shall  be  deemed  termi-
 nated  contemporaneously  with the date of the arbitrator's decision and
 award and no penalty for early termination shall be assessed as a result
 thereof. Refunds shall be accompanied by the proper application form for
 credit or refund of state and  local  sales  tax  as  published  by  the
 department  of taxation and finance and a notice that the sales tax paid
 on the lease price or portion thereof being refunded  is  refundable  by
 the  commissioner  of  taxation  and  finance  in  accordance  with  the
 provisions of subdivision (f) of section eleven hundred  thirty-nine  of
 the tax law.
   §  4. Subdivision (h) of section 198-a of the general business law, as
 amended by chapter 799 of the laws  of  1986,  is  amended  to  read  as
 follows:
   (h)  A  manufacturer  shall  have  up to thirty days from the date the
 [consumer] PURCHASER notifies the manufacturer of his or her  acceptance
 of  the arbitrator's decision to comply with the terms of that decision.
 Failure to comply with the thirty day limitation shall also entitle  the
 [consumer]  PURCHASER  to  recover a fee of twenty-five dollars for each
 business day of noncompliance up  to  five  hundred  dollars.  Provided,
 however,  that  nothing  contained  in this subdivision shall impose any
 liability on a manufacturer where a delay beyond the thirty  day  period
 is  attributable  to a [consumer] PURCHASER who has requested a replace-
 ment vehicle built to order or with options that are not  comparable  to
 the vehicle being replaced or otherwise made compliance impossible with-
 in  said  period.  In  no  event  shall  a  [consumer] PURCHASER who has
 resorted to an informal dispute settlement mechanism be  precluded  from
 seeking the rights or remedies available by law.
   §  5. Subdivision (i) of section 198-a of the general business law, as
 amended by chapter 415 of the laws  of  1987,  is  amended  to  read  as
 follows:
   (i)  Any  agreement  entered  into  by  a [consumer] PURCHASER for the
 purchase of a new motor vehicle which waives, limits  or  disclaims  the
 rights  set  forth  in  this section shall be void as contrary to public
 policy. Said rights shall inure to a subsequent transferee of such motor
 vehicle.
   Any provision of any agreement entered into by a [consumer]  PURCHASER
 for  the purchase of a new motor vehicle which includes as an additional

 S. 192                              4
 
 cost for such motor vehicle an  expense  identified  as  being  for  the
 purpose  of  affording such [consumer] PURCHASER his or her rights under
 this section, shall be void as contrary to public policy.
   §  6. Subdivision (j) of section 198-a of the general business law, as
 added by chapter 444 of the laws of 1983, is amended to read as follows:
   (j) Any action brought pursuant to this  section  shall  be  commenced
 within  four years of the date of original delivery of the motor vehicle
 to the [consumer] PURCHASER.
   § 7. Subdivision (k) of section 198-a of the general business law,  as
 amended  by  chapter  611  of  the  laws  of 2005, is amended to read as
 follows:
   (k) Each [consumer] PURCHASER shall have the option of submitting  any
 dispute  arising  under  this  section  upon the payment of a prescribed
 filing fee to an alternate arbitration mechanism established pursuant to
 regulations promulgated hereunder by the New York state attorney  gener-
 al.  Upon  application  of  the  [consumer] PURCHASER and payment of the
 filing fee, all manufacturers  shall  submit  to  such  alternate  arbi-
 tration.
   Such  alternate arbitration shall be conducted by a professional arbi-
 trator or arbitration firm appointed by  and  under  regulations  estab-
 lished  by  the  New  York  state attorney general. Such mechanism shall
 [insure] ENSURE the personal objectivity  of  its  arbitrators  and  the
 right  of each party to present its case, to be in attendance during any
 presentation made by the other party and to rebut or refute such presen-
 tation. In all other  respects,  such  alternate  arbitration  mechanism
 shall  be governed by article seventy-five of the civil practice law and
 rules; provided, however, that notwithstanding paragraph (i) of subdivi-
 sion (a) of section seventy-five hundred two of the civil  practice  law
 and  rules,  special proceedings brought before a court pursuant to such
 article seventy-five in relation to an arbitration  hereunder  shall  be
 brought  only  in  the  county where the [consumer] PURCHASER resides or
 where the arbitration was held or is pending.
   § 8. Subdivision (l) of section 198-a of the general business law,  as
 amended  by  chapter  487  of  the  laws  of 1990, is amended to read as
 follows:
   (l) A court may award  reasonable  attorney's  fees  to  a  prevailing
 plaintiff  or  to  a  [consumer]  PURCHASER who prevails in any judicial
 action or proceeding arising  out  of  an  arbitration  proceeding  held
 pursuant  to  subdivision (k) of this section. In the event a prevailing
 plaintiff is required to retain the services of an attorney  to  enforce
 collection  of  an award granted pursuant to this section, the court may
 assess against the manufacturer reasonable attorney's fees for  services
 rendered to enforce collection of said award.
   §  9.  Subparagraph  (i)  of paragraph 1 of subdivision (m) of section
 198-a of the general business law, as added by chapter 799 of  the  laws
 of 1986, is amended to read as follows:
   (i)  that  the arbitrators participating in such mechanism are trained
 in arbitration and familiar with the provisions of  this  section,  that
 the  arbitrators  and [consumers] PURCHASERS who request arbitration are
 provided with a written copy of the provisions of this section, together
 with the notice set forth below entitled "NEW  CAR  LEMON  LAW  BILL  OF
 RIGHTS",  and  that  [consumers]  PURCHASERS, upon request, are given an
 opportunity to make an oral presentation to the arbitrator;
   § 10. Subparagraph (iv) of paragraph 3 of subdivision (m)  of  section
 198-a  of  the general business law, as added by chapter 799 of the laws
 of 1986, is amended to read as follows:

 S. 192                              5

   (iv) the average number of  days  from  the  date  of  a  [consumer's]
 PURCHASER'S  initial  request  to  arbitrate until the date of the final
 arbitrator's decision and the average number of days from  the  date  of
 the  final  arbitrator's  decision  to the date on which performance was
 satisfactorily carried out.
   §  11. Paragraphs 4, 5, 6 and 7 of subdivision (n) of section 198-a of
 the general business law, paragraphs 4, 5 and 7 as  amended  by  chapter
 635  of  the  laws  of 2004, paragraph 6 as amended by chapter 26 of the
 laws of 2005, are amended to read as follows:
   (4) If, within the first  eighteen  thousand  miles  of  operation  or
 during  the  period of two years following the date of original delivery
 of the motor vehicle to such  [consumer]  PURCHASER,  whichever  is  the
 earlier  date,  the  manufacturer  of  a motor home or its agents or its
 authorized dealers or repair shops to  which  they  refer  a  [consumer]
 PURCHASER  are  unable to repair or correct any covered defect or condi-
 tion which substantially impairs the value of  the  motor  home  to  the
 [consumer]  PURCHASER  after  a reasonable number of attempts, the motor
 home manufacturer, at the option  of  the  [consumer]  PURCHASER,  shall
 replace the motor home with a comparable motor home, or accept return of
 the  motor home from the [consumer] PURCHASER and refund to the [consum-
 er] PURCHASER the full purchase price or, if applicable, the lease price
 and any trade-in allowance plus fees and charges as well  as  the  other
 fees  and  charges set forth in paragraph one of subdivision (c) of this
 section.
   (5) If an agent or authorized dealer of a motor home manufacturer or a
 repair shop to which they refer a [consumer] PURCHASER refuses to under-
 take repairs within seven days of receipt  of  notice  by  a  [consumer]
 PURCHASER of a nonconformity, defect or condition within the first eigh-
 teen  thousand  miles  of  operation  or  during the period of two years
 following the date of original  delivery  of  the  motor  home  to  such
 [consumer]  PURCHASER,  whichever  is  the  earlier date, the [consumer]
 PURCHASER may immediately forward written notice of such refusal to  the
 motor home manufacturer by certified mail, return receipt requested. The
 motor  home  manufacturer  or  its  authorized agent or a repair shop to
 which they refer a [consumer] PURCHASER  shall  have  twenty  days  from
 receipt  of  such  notice of refusal to commence such repairs. If within
 such twenty day period, the motor home manufacturer  or  its  authorized
 agent  or  repair shop to which they refer a [consumer] PURCHASER, fails
 to commence such repairs, the motor home manufacturer, at the option  of
 the [consumer] PURCHASER, shall replace the motor home with a comparable
 motor  home,  or  accept  return  of  the motor home from the [consumer]
 PURCHASER and refund to the [consumer] PURCHASER the full purchase price
 or, if applicable, the lease price, and any trade-in allowance or  other
 charges,  fees,  or  allowances. Such fees and charges shall include but
 not be limited to all license fees, registration fees, and  any  similar
 governmental charges, less an allowance for the [consumer's] PURCHASER'S
 use of the vehicle in excess of the first twelve thousand miles of oper-
 ation  pursuant  to  the  mileage deduction formula defined in paragraph
 four of subdivision (a) of this section, and a reasonable allowance  for
 any damage not attributable to normal wear or improvements.
   (6) If within the first eighteen thousand miles of operation or during
 the  period  of two years following the date of original delivery of the
 motor home to such [consumer] PURCHASER, whichever is the earlier  date,
 the  same covered nonconformity, defect or condition in a motor home has
 been subject to repair two times or a motor home has been out of service
 by reason of repair for twenty-one days,  whichever  occurs  first,  the

 S. 192                              6
 
 [consumer]  PURCHASER must have reported this to the motor home manufac-
 turer or  its  authorized  dealer  by  certified  mail,  return  receipt
 requested,  and may institute any proceeding or other action pursuant to
 this  section  if  the  motor  home has been out of service by reason of
 three repair attempts or for at least thirty days. The special notifica-
 tion requirements of this paragraph shall only apply if the manufacturer
 or its authorized dealer provides a prior written copy of  the  require-
 ments  of  this paragraph to the [consumer] PURCHASER and receipt of the
 notice is acknowledged by the [consumer] PURCHASER in  writing.  If  the
 [consumer] PURCHASER who has received notice from the manufacturer fails
 to  comply with the special notification requirements of this paragraph,
 additional repair attempts or days out of service by  reason  of  repair
 shall  not  be  taken into account in determining whether the [consumer]
 PURCHASER is entitled to a remedy provided in  paragraph  four  of  this
 subdivision.  However, additional repair attempts or days out of service
 by reason of repair that occur after the [consumer]  PURCHASER  complies
 with  such special notification requirements shall be taken into account
 in making that determination. It shall not count as a repair attempt  if
 the  repair  facility  is  not  authorized  by the applicable motor home
 manufacturer to perform warranty work on the  identified  nonconformity.
 It  shall  count as only one repair attempt for a motor home if the same
 nonconformity is being addressed a second time due to  the  [consumer's]
 PURCHASER'S decision to continue traveling and to seek the repair of the
 same  nonconformity  at another repair facility rather than wait for the
 initial repair to be completed.
   (7) Nothing in this section shall in any way limit any  rights,  reme-
 dies  or  causes  of  action  that  a [consumer] PURCHASER or motor home
 manufacturer may otherwise have against the manufacturer  of  the  motor
 home's chassis, or its propulsion and other components.
   § 12. Clause (i) of subparagraph (A) and the second undesignated para-
 graph  of  subparagraph (B) of paragraph 8 of subdivision (n) of section
 198-a of the general business law, as added by chapter 635 of  the  laws
 of 2004, are amended to read as follows:
   (i)  that  the arbitrators participating in such mechanism are trained
 in arbitration and familiar with the provisions of  this  section,  that
 the  arbitrators  and [consumers] PURCHASERS who request arbitration are
 provided with a written copy of the provisions of this section, together
 with the notice set forth below entitled "NEW MOTOR HOME LEMON LAW  BILL
 OF  RIGHTS", and that [consumers] PURCHASERS, upon request, are given an
 opportunity to make an oral presentation to the arbitrator;
   The following notice shall be provided to [consumers]  PURCHASERS  and
 arbitrators  and  shall  be  printed  in conspicuous ten point bold face
 type:
   § 13. Clause 4 of subparagraph (B) of paragraph 8 of  subdivision  (n)
 of section 198-a of the general business law, as added by chapter 635 of
 the laws of 2004, is amended to read as follows:
   (4)  IF,  WITHIN  THE  FIRST  EIGHTEEN  THOUSAND MILES OF OPERATION OR
 DURING THE PERIOD OF TWO YEARS FOLLOWING THE DATE OF  ORIGINAL  DELIVERY
 OF  THE  MOTOR  VEHICLE  TO  SUCH [CONSUMER] PURCHASER, WHICHEVER IS THE
 EARLIER DATE THE MANUFACTURER OF A MOTOR  HOME  OR  ITS  AGENTS  OR  ITS
 AUTHORIZED  DEALERS  OR  REPAIR  SHOPS  TO WHICH THEY REFER A [CONSUMER]
 PURCHASER ARE UNABLE TO REPAIR OR CORRECT ANY COVERED DEFECT  OR  CONDI-
 TION  WHICH  SUBSTANTIALLY  IMPAIRS  THE  VALUE OF THE MOTOR HOME TO THE
 [CONSUMER] PURCHASER AFTER A REASONABLE NUMBER OF  ATTEMPTS,  THE  MOTOR
 HOME  MANUFACTURER,  AT  THE  OPTION  OF THE [CONSUMER] PURCHASER, SHALL
 REPLACE THE MOTOR HOME WITH A COMPARABLE MOTOR HOME, OR ACCEPT RETURN OF

 S. 192                              7
 
 THE MOTOR HOME FROM THE [CONSUMER] PURCHASER AND REFUND TO THE  [CONSUM-
 ER] PURCHASER THE FULL PURCHASE PRICE OR, IF APPLICABLE, THE LEASE PRICE
 AND  ANY TRADE-IN ALLOWANCE, PLUS FEES AND CHARGES, AS WELL AS THE OTHER
 FEES  AND CHARGES, INCLUDING BUT NOT LIMITED TO ALL LICENSE FEES, REGIS-
 TRATION FEES, AND ANY SIMILAR GOVERNMENTAL CHARGES,  LESS  AN  ALLOWANCE
 FOR  THE [CONSUMER'S] PURCHASER'S USE OF THE VEHICLE IN EXCESS OF TWELVE
 THOUSAND MILES TIMES THE PURCHASE PRICE, OR THE LEASE PRICE IF  APPLICA-
 BLE, OF THE VEHICLE DIVIDED BY ONE HUNDRED THOUSAND MILES, AND A REASON-
 ABLE  ALLOWANCE  FOR  ANY  DAMAGE  NOT  ATTRIBUTABLE  TO  NORMAL WEAR OR
 IMPROVEMENTS.
   § 14. Subdivision (o) of section 198-a of the general business law, as
 added by chapter 147 of the laws of 1994, is amended to read as follows:
   (o) At the time of purchase or  lease  of  a  motor  vehicle  from  an
 authorized  dealer  in this state, the manufacturer shall provide to the
 dealer or leaseholder, and the dealer or leaseholder  shall  provide  to
 the  [consumer] PURCHASER a notice, printed in not less than eight point
 bold face type, entitled "New Car Lemon Law Bill of Rights". The text of
 such notice shall be identical with the notice required by paragraph two
 of subdivision (m) of this section.
   § 15. Paragraph 1 of subdivision a of section  198-b  of  the  general
 business  law, as amended by chapter 530 of the laws of 1990, is amended
 to read as follows:
   1. ["Consumer"] "PURCHASER" means the purchaser, or lessee, other than
 for purposes of resale, of a  used  motor  vehicle  primarily  used  for
 personal, family[,] or household, OR BUSINESS OR COMMERCIAL purposes and
 subject  to  a warranty, and the spouse or child of the purchaser or the
 lessee if either such motor vehicle or the lease of such  motor  vehicle
 is transferred to the spouse or child during the duration of any warran-
 ty  applicable  to  such motor vehicle, and any other person entitled by
 the terms of such warranty to enforce the obligations of the warranty;
   § 16. Paragraphs 1, 2 and 3 of subdivision b of section 198-b  of  the
 general  business law, paragraph 1 as amended by chapter 857 of the laws
 of 1990, paragraphs 2 and 3 as amended by chapter 444  of  the  laws  of
 1989, are amended to read as follows:
   1.  No dealer shall sell or lease a used motor vehicle to a [consumer]
 PURCHASER without giving the [consumer]  PURCHASER  a  written  warranty
 which shall at minimum apply for the following terms:
   (a)  If  the used motor vehicle has thirty-six thousand miles or less,
 the warranty shall be at minimum ninety days  or  four  thousand  miles,
 whichever comes first.
   (b) If the used motor vehicle has more than thirty-six thousand miles,
 but  less  than  eighty thousand miles, the warranty shall be at minimum
 sixty days or three thousand miles, whichever comes first.
   (c) If the used motor vehicle has eighty thousand miles or more but no
 more than one hundred thousand miles, the warranty shall be at a minimum
 thirty days or one thousand miles, whichever comes first.
   2. The written warranty shall require  the  dealer  or  his  agent  to
 repair  or,  at  the  election  of  the dealer, reimburse the [consumer]
 PURCHASER for the reasonable cost of repairing the failure of a  covered
 part. Covered parts shall at least include the following items:
   (a)  Engine.  All  lubricated parts, water pump, fuel pump, manifolds,
 engine block, cylinder head, rotary engine housings and flywheel.
   (b) Transmission. The  transmission  case,  internal  parts,  and  the
 torque converter.
   (c) Drive axle. Front and rear drive axle housings and internal parts,
 axle shafts, propeller shafts and universal joints.

 S. 192                              8

   (d)  Brakes.  Master cylinder, vacuum assist booster, wheel cylinders,
 hydraulic lines and fittings and disc brake calipers.
   (e) Radiator.
   (f)  Steering. The steering gear housing and all internal parts, power
 steering pump, valve body, piston and rack.
   (g) Alternator, generator,  starter,  ignition  system  excluding  the
 battery.
   3.  Such  repair or reimbursement shall be made by the dealer notwith-
 standing the fact that the warranty period  has  expired,  provided  the
 [consumer]  PURCHASER  notifies  the  dealer of the failure of a covered
 part within the specified warranty period.
   § 17. Subparagraph (i) of paragraph 4  of  subdivision  b  of  section
 198-b of the general business law, as amended by chapter 444 of the laws
 of 1989 and as renumbered by chapter 530 of the laws of 1990, is amended
 to read as follows:
   (i)  if  the  used  motor  vehicle is rented to someone other than the
 [consumer] PURCHASER as defined in paragraph one  of  subdivision  a  of
 this section;
   §  18.  Paragraph  1  of subdivision c of section 198-b of the general
 business law, as amended by chapter 444 of the laws of 1989, is  amended
 to read as follows:
   1. If the dealer or his agent fails to correct a malfunction or defect
 as required by the warranty specified in this section which substantial-
 ly  impairs  the  value  of  the  used  motor  vehicle to the [consumer]
 PURCHASER after a reasonable period of time,  the  dealer  shall  accept
 return  of  the  used  motor  vehicle  from the [consumer] PURCHASER and
 refund to the [consumer] PURCHASER the full purchase price,  or  in  the
 case of a lease contract all payments made under the contract, including
 sales  or  compensating  use  tax,  less  a reasonable allowance for any
 damage not attributable to normal wear or usage, and adjustment for  any
 modifications  which either increase or decrease the market value of the
 vehicle or of the lease contract, and in the case of a  lease  contract,
 shall  cancel  all  further  payments  due from the [consumer] PURCHASER
 under the lease contract.  In  determining  the  purchase  price  to  be
 refunded  or  in determining all payments made under a lease contract to
 be refunded, the purchase price, or all  payments  made  under  a  lease
 contract, shall be deemed equal to the sum of the actual cash difference
 paid for the used motor vehicle, or for the lease contract, plus, if the
 dealer  elects  to  not  return any vehicles traded-in by the [consumer]
 PURCHASER, the wholesale value of any such traded-in vehicles as  listed
 in  the  National Auto Dealers Association Used Car Guide, or such other
 guide as may be specified in regulations promulgated by the commissioner
 of motor vehicles, as adjusted for mileage, improvements, and any  major
 physical  or  mechanical defects in the traded-in vehicle at the time of
 trade-in. The dealer selling or leasing the  used  motor  vehicle  shall
 deliver to the [consumer] PURCHASER a written notice including conspicu-
 ous language indicating that if the [consumer] PURCHASER should be enti-
 tled  to  a  refund  pursuant  to this section, the value of any vehicle
 traded-in by the [consumer] PURCHASER,  if  the  dealer  elects  to  not
 return  it  to the [consumer] PURCHASER, for purposes of determining the
 amount of such refund will be determined by reference  to  the  National
 Auto  Dealers  Association Used Car Guide wholesale value, or such other
 guide as may be approved by  the  commissioner  of  motor  vehicles,  as
 adjusted for mileage, improvements, and any major physical or mechanical
 defects,  rather  than  the  value listed in the sales contract. Refunds
 shall be made to the [consumer] PURCHASER and  lienholder,  if  any,  as

 S. 192                              9
 
 their  interests  may  appear  on  the  records of ownership kept by the
 department of motor vehicles. If the amount to be refunded to the  lien-
 holder  will  be  insufficient  to  discharge the lien, the dealer shall
 notify  the  [consumer]  PURCHASER in writing by registered or certified
 mail that the [consumer] PURCHASER has thirty days to pay the lienholder
 the amount which, together with the amount to be refunded by the dealer,
 will be sufficient to discharge the lien. The notice to  the  [consumer]
 PURCHASER  shall  contain  conspicuous  language  warning the [consumer]
 PURCHASER that failure to pay such funds to the lienholder within thirty
 days will terminate the dealer's obligation to provide a refund. If  the
 [consumer]  PURCHASER fails to make such payment within thirty days, the
 dealer shall have no further responsibility to provide  a  refund  under
 this  section.   Alternatively, the dealer may elect to offer to replace
 the used motor vehicle with  a  comparably  priced  vehicle,  with  such
 adjustment in price as the parties may agree to. The [consumer] PURCHAS-
 ER  shall  not  be  obligated  to  accept a replacement vehicle, but may
 instead elect to receive the refund  provided  under  this  section.  It
 shall be an affirmative defense to any claim under this section that:
   (a)  The  malfunction  or  defect  does  not substantially impair such
 value; or
   (b) The malfunction or defect is  the  result  of  abuse,  neglect  or
 unreasonable modifications or alterations of the used motor vehicle.
   § 19. Subparagraph (b) of paragraph 2 and paragraph 4 of subdivision c
 of  section 198-b of the general business law, as amended by chapter 444
 of the laws of 1989, are amended to read as follows:
   (b) The vehicle is out of service by reason of repair  or  malfunction
 or  defect  for  a  cumulative  total of fifteen or more days during the
 warranty period. Said period shall not include days when the  dealer  is
 unable to complete the repair because of the unavailability of necessary
 repair  parts. The dealer shall be required to exercise due diligence in
 attempting to obtain necessary repair parts. Provided, however, that  if
 a  vehicle  has been out of service for a cumulative total of forty-five
 days, even if a portion of that time is attributable to the unavailabil-
 ity of replacement parts, the [consumer] PURCHASER shall be entitled  to
 the replacement or refund remedies provided in this section.
   4. The term of any warranty, service contract or repair insurance, and
 the  fifteen  day  out-of-service  period, shall be extended by any time
 during which  repair  services  are  not  available  to  the  [consumer]
 PURCHASER  because  of  a  war, invasion or strike, fire, flood or other
 natural disaster.
   § 20. Subdivisions d and e of section 198-b of  the  general  business
 law,  as  amended  by  chapter  444  of the laws of 1989, paragraph 3 of
 subdivision d as amended by chapter 692 of the laws of 1994, are amended
 to read as follows:
   d. Waiver void. 1. Any agreement entered into by a [consumer] PURCHAS-
 ER for the purchase or lease of  a  used  motor  vehicle  which  waives,
 limits  or  disclaims the rights set forth in this article shall be void
 as contrary to public policy. Further, if a dealer  fails  to  give  the
 written warranty required by this article, the dealer nevertheless shall
 be deemed to have given said warranty as a matter of law.
   2.  Nothing in this section shall in any way limit the rights or reme-
 dies which are otherwise available to a [consumer] PURCHASER  under  any
 other law.
   3.  Notwithstanding  paragraph  one  of this subdivision, this article
 shall not apply to used motor vehicles sold for, or in  the  case  of  a
 lease  where  the  value  of  the used motor vehicle as agreed to by the

 S. 192                             10
 
 [consumer] PURCHASER and the dealer which vehicle is the subject of  the
 contract  is,  less  than  one thousand five hundred dollars, or to used
 motor vehicles with over one hundred thousand miles at the time of  sale
 or  lease if said mileage is indicated in writing at the time of sale or
 lease. Further, this article shall not apply to the  sale  or  lease  of
 historical  motor vehicles as defined in section four hundred one of the
 vehicle and traffic law.
   e. Time of delivery, location of  warranty  and  notice.  The  written
 warranty  provided  for in subdivision b of this section and the written
 notice provided for in subdivision c of this section shall be  delivered
 to  the  [consumer]  PURCHASER  at  or  before  the  time the [consumer]
 PURCHASER signs the sales or lease contract for the used motor  vehicle.
 The warranty and the notice may be set forth on one sheet or on separate
 sheets.  They  may be separate from, attached to, or a part of the sales
 or lease contract. If they are part of the sales or lease contract, they
 shall be separated from the other contract provisions and each headed by
 a conspicuous title.
   § 21. The opening paragraph of paragraph 1 of subdivision f of section
 198-b of the general business law, as separately amended by chapters 444
 and 609 of the laws of 1989, is amended to read as follows:
   If a dealer has established or participates  in  an  informal  dispute
 settlement  procedure which complies in all respects with the provisions
 of part seven hundred three of title sixteen  of  the  code  of  federal
 regulations  the  provisions  of  this  article  concerning  refunds  or
 replacement shall not apply to any consumer who has not  first  resorted
 to  such procedure. Dealers utilizing informal dispute settlement proce-
 dures pursuant to this subdivision shall [insure] ENSURE  that  arbitra-
 tors  participating  in  such informal dispute settlement procedures are
 familiar with the provisions of this section and shall provide to  arbi-
 trators  and  [consumers]  PURCHASERS who seek arbitration a copy of the
 provisions of  this  section  together  with  the  following  notice  in
 conspicuous ten point bold face type:
   § 22. Paragraphs 2, 3, 4, 5 and 6 of subdivision f of section 198-b of
 the general business law, paragraphs 2, 4 and 6 as separately amended by
 chapters  444  and  609  of  the laws of 1989, paragraph 3 as amended by
 chapter 323 of the laws of 1997, paragraph 5 as amended by  chapter  487
 of the laws of 1990, are amended to read as follows:
   2.  A  dealer  shall have up to thirty days from the date of notice by
 the  [consumer]  PURCHASER  that  the  arbitrator's  decision  has  been
 accepted  to  comply with the terms of such decision. Provided, however,
 that nothing contained in this subdivision shall impose any liability on
 a dealer where a delay beyond the thirty day period is attributable to a
 [consumer] PURCHASER who has requested a particular replacement  vehicle
 or otherwise made compliance impossible within said period.
   3. Upon the payment of a prescribed filing fee, a [consumer] PURCHASER
 shall  have  the  option  of  submitting  any dispute arising under this
 section to an alternate arbitration mechanism  established  pursuant  to
 regulations promulgated hereunder by the attorney general. Upon applica-
 tion  of  the  [consumer]  PURCHASER  and payment of the filing fee, the
 dealer shall submit to such alternate arbitration.
   Such alternate arbitration shall be conducted by a professional  arbi-
 trator  or  arbitration  firm  appointed by and under regulations estab-
 lished by the attorney general. Such mechanism shall ensure the personal
 objectivity of its arbitrators and the right of each  party  to  present
 its  case, to be in attendance during any presentation made by the other
 party and to rebut or refute such presentation. In all  other  respects,

 S. 192                             11
 
 such alternate arbitration mechanism shall be governed by article seven-
 ty-five of the civil practice law and rules.
   The  notice  required  by  paragraph one of this subdivision, entitled
 Used Car Lemon Law Bill of Rights, shall be provided to arbitrators  and
 [consumers] PURCHASERS who seek arbitration under this subdivision.
   A  dealer shall have thirty days from the date of mailing of a copy of
 the arbitrator's decision to such dealer to comply  with  the  terms  of
 such  decision.  Failure  to  comply  within the thirty day period shall
 entitle the [consumer] PURCHASER to recover, in addition  to  any  other
 recovery  to  which he may be entitled, a fee of twenty-five dollars for
 each business day  beyond  thirty  days  up  to  five  hundred  dollars;
 provided  however,  that  nothing  in  this subdivision shall impose any
 liability on a dealer where a delay beyond  the  thirty  day  period  is
 attributable  to  a  [consumer] PURCHASER who has requested a particular
 replacement vehicle or otherwise made compliance impossible within  said
 period.
   The  commissioner of motor vehicles or any person deputized by him may
 deny the application of any person for registration under  section  four
 hundred  fifteen  of the vehicle and traffic law and suspend or revoke a
 registration under such section or refuse to issue a renewal thereof  if
 he  or  such  deputy determines that such applicant or registrant or any
 officer, director, stockholder, or partner, or any other person directly
 or indirectly interested in the business has deliberately failed to  pay
 an arbitration award, which has not been stayed or appealed, rendered in
 an  arbitration  proceeding  pursuant  to  this paragraph for sixty days
 after the date of mailing of a copy of the award to the registrant.  Any
 action  taken  by  the  commissioner  of motor vehicles pursuant to this
 paragraph shall be governed by the procedures set forth  in  subdivision
 nine of section four hundred fifteen of the vehicle and traffic law.
   4.  In  no  event  shall a [consumer] PURCHASER who has resorted to an
 informal dispute settlement procedure  be  precluded  from  seeking  the
 rights or remedies available by law.
   5. In an action brought to enforce the provisions of this article, the
 court  may award reasonable attorney's fees to a prevailing plaintiff or
 to a [consumer]  PURCHASER  who  prevails  in  any  judicial  action  or
 proceeding  arising  out  of  an arbitration proceeding held pursuant to
 paragraph three of this subdivision. In the event a prevailing plaintiff
 is required to retain the services of an attorney to enforce  collection
 of  an  award  granted  pursuant  to  this section, the court may assess
 against the dealer reasonable attorney's fees for services  rendered  to
 enforce collection of said award.
   6.  Any  action  brought  pursuant  to this article shall be commenced
 within four years of the date of original delivery  of  the  used  motor
 vehicle to the [consumer] PURCHASER.
   §  23.  Subdivision g of section 198-b of the general business law, as
 added by chapter 147 of the laws of 1994, is amended to read as follows:
   g. Notice of [consumer] PURCHASER rights. At the time of  purchase  or
 lease  of  a  used motor vehicle from a dealer in this state, the dealer
 shall provide to the [consumer] PURCHASER a notice, printed in not  less
 than  eight  point  bold face type, entitled "Used Car Lemon Law Bill of
 Rights". The text of such notice shall  be  identical  with  the  notice
 required by paragraph one of subdivision f of this section.
   §  24.  Paragraph 3 of subdivision (b) of section 198-c of the general
 business law, as added by chapter 254 of the laws of 2010, is amended to
 read as follows:

 S. 192                             12
 
   (3) The time period specified in paragraph one or two of this subdivi-
 sion may be shortened if the dealer and [consumer] PURCHASER  agree,  in
 writing, to a shorter time period.
   § 25. This act shall take effect immediately.