NY State Senate Bill 2023-S2738

Senate Bill S2738

2023-2024 Legislative Session

Requires automobile manufacturers to provide the original purchaser or lessee with information that would extend coverage beyond the original warranty expiration

download bill text pdf

Current 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 03, 2024	referred to consumer protection
Jan 24, 2023	referred to consumer protection

2023-S2738 (ACTIVE) - Details

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: S8627
2019-2020: S2756
2021-2022: S5739

2023-S2738 (ACTIVE) - Summary

Requires automobile manufacturers to directly, or through affiliated dealerships, provide the original purchaser or lessee with information about parts of warranty coverage that would extend coverage beyond the original expressed warranty expiration date.

2023-S2738 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2738

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the general business law, in relation to automobile
manufacturers' warranty adjustment programs

 
PURPOSE:

The purpose of this bill is to ensure that consumers are made aware of
warranty adjustment programs implemented by automobile manufacturers.

 
SUMMARY OF PROVISIONS:

This bill would require automobile manufacturers to establish a proce-
dure whereby a consumer: (1) shall be informed of any warranty adjust-
ment program applicable to his or her motor vehicle; and (2) shall be
entitled to receive a copy of any service bulletin upon request.
Manufacturers would also be required to implement procedures to assure
reimbursement of each consumer eligible under an adjustment program who
incurs expenses for repair of a condition subject to the program prior

to acquiring knowledge of the program.

The bill would also:

-require dealers to cost a notice regarding the availability of service
bulletins from the NHTSA;

-require manufactures to send bulletin terms and conditions to dealers
within thirty days of adoption; and

-require manufacturers to provide copies of service bulletins to the
Department of State and the Department of Motor Vehicles for public
inspection.

 
JUSTIFICATION:

Currently, a consumer of a new motor vehicle is provided with basic
warranty information at the time of delivery. The information provided
is a broad-based explanation of coverage for the vehicle generally
warranted for a specific period of months and/or mileage and contains
limitations as well.

Most manufacturers, however, periodically issue "service bulletins" or
"adjustment programs" for particular makes or models of automobiles.
These programs contain warranty-related repairs and an indication that
the parts and/or services needed to correct the situation will be finan-
cially compensated by the manufacturer and therefore extend coverage
beyond the original warranty period for certain components. Except in
the matter of issues or adjustments related to consumer safety, many of
these service bulletins and adjustment programs are handled as internal
documentation, and the consumer is not directly notified.  Since the
consumer is not notified, he or she may end up pay for the repair if
they bring their automobile to an independent mechanic.

This bill would require automobile manufacturers to provide directly, or
through affiliated dealerships, the original purchaser or lessee with
information about parts or warranty coverage that would extend coverage
beyond the original expressed warranty expiration date.  Similar legis-
lation has been enacted in at least five other states.

 
FISCAL IMPACT ON THE STATE:

None.

 
FISCAL IMPACT ON LOCALITIES:

None.

 
IMPACT ON THE REGULATION OF BUSINESSES AND INDIVIDUALS:

Automobile manufacturers would be required to provide consumers notice
of various adjustments to their warranty programs.

 
IMPACT ON FINES, IMPRISONMENT, FORFEITURE OF RIGHTS, OR OTHER PENAL
SANCTIONS:

A violation of this section shall be deemed a deceptive act or practice
as defined in Article 22-A of the General Business Law and is subject to
the applicable penalties under that Article.

 
PRIOR LEGISLATIVE HISTORY:

S5739 2022

S 8627 COMRIE Same as A 8132 Buchwald (MS)

 
EFFECTIVE DATE:
This act shall take effect on the one hundredth twentieth day after
shall have become a law.

2023-S2738 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2738
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2023
                                ___________
 
 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  automobile
   manufacturers' warranty adjustment programs
 
   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. AUTOMOBILE MANUFACTURERS' WARRANTY ADJUSTMENT  PROGRAMS.  (A)
 FOR THE PURPOSES OF THIS SECTION:
   (1) "CONSUMER" MEANS THE PURCHASER, OTHER THAN FOR PURPOSES OF RESALE,
 OF A MOTOR VEHICLE, A LESSEE OF A MOTOR VEHICLE, ANY PERSON TO WHOM SUCH
 MOTOR  VEHICLE IS TRANSFERRED DURING THE DURATION OF AN EXPRESS WARRANTY
 APPLICABLE TO SUCH MOTOR VEHICLE AND ANY PERSON ENTITLED BY THE TERMS OF
 SUCH WARRANTY TO ENFORCE THE OBLIGATIONS OF THE WARRANTY.
   (2) "DEALER" MEANS ANY PERSON SELLING OR AGREEING TO SELL, LEASING  OR
 AGREEING  TO  LEASE  IN  THIS  STATE  ONE OR MORE MOTOR VEHICLES UNDER A
 RETAIL AGREEMENT WITH A MANUFACTURER, MANUFACTURER  BRANCH,  DISTRIBUTOR
 OR DISTRIBUTOR BRANCH, OR AGENT OF ANY OF THEM.
   (3) "LESSEE" MEANS ANY CONSUMER WHO LEASES A MOTOR VEHICLE PURSUANT TO
 A  WRITTEN  LEASE  WHICH  PROVIDES  THAT  THE  LESSEE IS RESPONSIBLE FOR
 REPAIRS TO SUCH MOTOR VEHICLES.
   (4) "ADJUSTMENT PROGRAM" MEANS ANY PROGRAM OR POLICY THAT  EXPANDS  OR
 EXTENDS THE CONSUMER'S WARRANTY BEYOND ITS STATED LIMIT OR UNDER WHICH A
 MANUFACTURER OFFERS TO PAY FOR ALL OR ANY PART OF THE COST OF REPAIRING,
 OR  TO REIMBURSE CONSUMERS FOR ALL OR ANY PART OF THE COST OF REPAIRING,
 ANY CONDITION THAT MAY SUBSTANTIALLY AFFECT  VEHICLE  DURABILITY,  RELI-
 ABILITY  OR  PERFORMANCE,  OTHER THAN SERVICE PROVIDED UNDER A SAFETY OR
 EMISSION-RELATED RECALL CAMPAIGN. THIS TERM DOES NOT INCLUDE ADJUSTMENTS
 MADE BY A MANUFACTURER ON A CASE BY CASE BASIS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04408-01-3
 S. 2738                             2

 
   (5) "MANUFACTURER" MEANS (I) ANY PERSON WHO MANUFACTURES OR  ASSEMBLES
 NEW  MOTOR  VEHICLES  FOR SALE OR DISTRIBUTION OR (II) ANY PERSON WHO IS
 ENGAGED IN THE BUSINESS OF IMPORTING NEW  MOTOR  VEHICLES  FOR  SALE  OR
 DISTRIBUTION TO DEALERS OR THROUGH DISTRIBUTORS, OR FACTORY BRANCHES.
   (6) "MOTOR VEHICLE" MEANS A MOTOR VEHICLE EXCLUDING OFF-ROAD VEHICLES,
 WHICH  WAS  SUBJECT  TO A MANUFACTURER'S EXPRESS WARRANTY AT THE TIME OF
 ORIGINAL DELIVERY AND EITHER (I) WAS PURCHASED, LEASED OR TRANSFERRED IN
 THIS STATE WITHIN EITHER THE FIRST EIGHTEEN THOUSAND MILES OF  OPERATION
 OR  TWO  YEARS FROM THE DATE OF ORIGINAL DELIVERY, WHICHEVER IS EARLIER,
 OR (II) IS REGISTERED IN THIS STATE.
   (7) "OFF-ROAD VEHICLE" MEANS ANY SELF-PROPELLED VEHICLE WHICH IS MANU-
 FACTURED FOR SALE FOR OPERATION PRIMARILY ON OFF-HIGHWAY TRAILS OR  OFF-
 HIGHWAY  COMPETITIONS  AND ONLY INCIDENTALLY OPERATED ON PUBLIC HIGHWAYS
 PROVIDED THAT SUCH VEHICLE DOES NOT EXCEED SEVENTY INCHES  IN  WIDTH  OR
 ONE THOUSAND POUNDS DRY WEIGHT.
   (8)  "SERVICE  BULLETIN"  MEANS  ANY DOCUMENT ISSUED BY A MANUFACTURER
 PERTAINING TO ANY ADJUSTMENT PROGRAM.
   (B) (1) A MANUFACTURER SHALL, WITHIN NINETY DAYS OF THE ADOPTION OF AN
 ADJUSTMENT PROGRAM, NOTIFY, BY FIRST-CLASS MAIL, ALL CONSUMERS  ELIGIBLE
 UNDER  SUCH  PROGRAM  OF  THE  CONDITION  IN  THE MOTOR VEHICLE WHICH IS
 COVERED BY AN ADJUSTMENT PROGRAM AND THE PRINCIPAL TERMS AND  CONDITIONS
 OF THE ADJUSTMENT PROGRAM.
   (2)  WITHIN THIRTY DAYS OF THE ADOPTION OF ANY NEW ADJUSTMENT PROGRAM,
 A MANUFACTURER SHALL NOTIFY ITS DEALERS, IN WRITING, OF  ALL  THE  TERMS
 AND CONDITIONS THEREOF.
   (3)  COPIES  OF ALL NOTICES MAILED IN ACCORDANCE WITH THIS SUBDIVISION
 SHALL BE SENT TO THE DEPARTMENT OF STATE AND  THE  DEPARTMENT  OF  MOTOR
 VEHICLES AND MADE AVAILABLE FOR PUBLIC INQUIRIES.
   (C)  EACH MANUFACTURER EITHER DIRECTLY OR THROUGH ITS AUTHORIZED AGENT
 SHALL CAUSE TO BE GIVEN TO THE ORIGINAL PURCHASER OF A NEW  MOTOR  VEHI-
 CLE,  AT THE TIME OF PURCHASE, A NOTICE OUTLINING THE PROVISIONS OF THIS
 SECTION AND THE RIGHTS AND REMEDIES PROVIDED  UNDER  THIS  SECTION.  THE
 WRITTEN  NOTICE  SHALL BE DEEMED SUFFICIENT IF DONE IN SUBSTANTIALLY THE
 FOLLOWING FORM:
   "SOMETIMES (INSERT MANUFACTURER'S NAME) OFFERS  A  SPECIAL  ADJUSTMENT
 PROGRAM  TO  PAY  ALL  OR PART OF THE COST OF CERTAIN REPAIRS BEYOND THE
 TERMS OF THE WARRANTY.  CHECK WITH YOUR DEALER TO DETERMINE WHETHER  ANY
 ADJUSTMENT PROGRAM IS APPLICABLE TO YOUR MOTOR VEHICLE."
   (D)  (1)  A  DEALER SHALL DISCLOSE TO A CONSUMER SEEKING REPAIRS FOR A
 PARTICULAR CONDITION AT ITS REPAIR SHOP, THE PRINCIPAL TERMS AND  CONDI-
 TIONS  OF  THE MANUFACTURER'S ADJUSTMENT PROGRAM COVERING SUCH CONDITION
 IF THE DEALER HAS RECEIVED A SERVICE BULLETIN CONCERNING SUCH ADJUSTMENT
 PROGRAM OR OTHERWISE HAS KNOWLEDGE OF IT.
   (2) A DEALER  SHALL  PROVIDE  NOTICE  TO  PROSPECTIVE  PURCHASERS  AND
 LESSEES THAT PROVIDES INFORMATION ON HOW TO GET COPIES OF SERVICE BULLE-
 TINS.   NOTHING IN THIS NOTICE SHALL BE CONSTRUED AS AN ADMISSION BY THE
 DEALER OR MANUFACTURER OF THE EXISTENCE OR  NONEXISTENCE  OF  A  VEHICLE
 DEFECT.  THE NOTICE SHALL BE DEEMED SUFFICIENT IF POSTED IN THE SHOWROOM
 OR OTHER AREA CONSPICUOUS TO MOTOR VEHICLE PURCHASERS AND WRITTEN IN THE
 FOLLOWING FORM:
   FEDERAL LAW REQUIRES MANUFACTURERS TO  FURNISH  THE  NATIONAL  HIGHWAY
 TRAFFIC SAFETY ADMINISTRATION (N.H.T.S.A.) WITH BULLETINS DESCRIBING ANY
 DEFECTS IN THEIR VEHICLES.
   YOU  MAY  OBTAIN  COPIES OF THESE BULLETINS, FOR A FEE, FROM EITHER OF
 THE FOLLOWING:
   THE MANUFACTURER (ASK YOUR DEALER FOR THE TOLL-FREE NUMBER); OR
 S. 2738                             3
 
   N.H.T.S.A.--TECHNICAL REFERENCE DIVISION (INSERT THE  CURRENT  MAILING
 ADDRESS AND TELEPHONE NUMBER ESTABLISHED BY THE NATIONAL HIGHWAY TRAFFIC
 SAFETY ADMINISTRATION FOR RECEIVING REQUESTS FOR SERVICE BULLETINS).
   IN ADDITION, CERTAIN CONSUMER PUBLICATIONS PUBLISH THESE BULLETINS
   AND SOME COMPANIES WILL SEND THEM TO YOU, FOR A FEE.
   SUCH SIGN SHALL BE PRINTED WITH LETTERING THAT IS LEGIBLE AND SHALL BE
 AT LEAST THREE-QUARTERS OF AN INCH BOLDFACE TYPE.
   (E)  A MANUFACTURER WHO ESTABLISHES AN ADJUSTMENT PROGRAM SHALL IMPLE-
 MENT PROCEDURES TO ASSURE REIMBURSEMENT OF EACH CONSUMER ELIGIBLE  UNDER
 AN  ADJUSTMENT  PROGRAM  WHO  INCURS  EXPENSES FOR REPAIR OF A CONDITION
 SUBJECT TO THE PROGRAM PRIOR TO  ACQUIRING  KNOWLEDGE  OF  THE  PROGRAM.
 SUCH  REIMBURSEMENT SHALL BE CONSISTENT WITH THE TERMS AND CONDITIONS OF
 THE PARTICULAR PROGRAM.
   ANY CLAIM FOR REIMBURSEMENT UNDER THIS SUBDIVISION SHALL  BE  MADE  IN
 WRITING  TO THE MANUFACTURER WITHIN TWO YEARS OF THE DATE OF THE CONSUM-
 ER'S PAYMENT FOR REPAIR OF THE CONDITION.  THE MANUFACTURER SHALL NOTIFY
 THE CONSUMER WITHIN TWENTY-ONE BUSINESS DAYS OF RECEIVING  A  CLAIM  FOR
 REIMBURSEMENT WHETHER THE CLAIM WILL BE ALLOWED OR DENIED.  IF THE CLAIM
 IS  DENIED, THE SPECIFIC REASONS FOR THE DENIAL SHALL BE STATED IN WRIT-
 ING.
   (F) A VIOLATION OF ANY OF THE PROVISIONS  OF  THIS  SECTION  SHALL  BE
 DEEMED  A  DECEPTIVE  ACT OR PRACTICE UNDER ARTICLE TWENTY-TWO-A OF THIS
 CHAPTER.
   (G) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO EXCLUDE, MODIFY,  OR
 OTHERWISE  LIMIT  ANY  OTHER  REMEDY  PROVIDED  BY  LAW TO A CONSUMER OR
 LESSEE.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.

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