Assembly Bill A10411

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10411
 
                           I N  A S S E M B L Y
 
                               March 3, 2026
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
   Committee on Consumer Affairs and Protection
 
 AN ACT to amend the general business law,  in  relation  to  prohibiting
   motor  vehicle  manufacturers and dealers from charging a subscription
   fee for certain functions of a motor vehicle after the vehicle is sold

   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. VEHICLE FEATURE SUBSCRIPTIONS. (A) AS USED IN THIS SECTION:
   (1)  "CONSUMER"  SHALL  MEAN  THE PURCHASER, OR LESSEE, OTHER THAN FOR
 PURPOSES OF RESALE, OF A MOTOR VEHICLE.
   (2) "DEALER" SHALL HAVE THE SAME MEANING AS SUCH TERM  IS  DEFINED  BY
 SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW.
   (3)  "MANUFACTURER"  SHALL  MEAN  A  PERSON OR BUSINESS ENGAGED IN THE
 MANUFACTURING OR ASSEMBLING OF NEW MOTOR VEHICLES.
   (4) "MOTOR VEHICLE" SHALL HAVE  THE  SAME  MEANING  AS  SUCH  TERM  IS
 DEFINED  BY  SECTION  ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC
 LAW.
   (5) "MOTOR VEHICLE FEATURE" SHALL MEAN ANY CONVENIENCE OR SAFETY FUNC-
 TION INCLUDED ON THE MOTOR VEHICLE, INCLUDING BUT NOT LIMITED TO  HEATED
 SEATS  THAT TYPICALLY IS OFFERED TO A CONSUMER AS AN UPGRADE AT THE TIME
 OF PURCHASE OR LEASE OF THE MOTOR VEHICLE.
   (6)  "SUBSCRIPTION  SERVICE"  SHALL  MEAN  A  SERVICE  PROVIDED  ON  A
 SUBSCRIPTION  BASIS  IN EXCHANGE FOR A RECURRING PAYMENT, INCLUDING, BUT
 NOT LIMITED TO, A WEEKLY, MONTHLY, OR ANNUAL PAYMENT CHARGED TO AND MADE
 BY A CONSUMER BUT SHALL NOT INCLUDE  A  CONSUMER'S  REOCCURRING  PAYMENT
 MADE PURSUANT TO A RETAIL INSTALLMENT CONTRACT OR LEASE CONTRACT FOR THE
 PURCHASE OR LEASE OF A MOTOR VEHICLE.
   (B)  NO  MANUFACTURER,  DEALER,  OR  AGENT OF A MANUFACTURER OR DEALER
 SHALL OFFER TO A CONSUMER A SUBSCRIPTION SERVICE FOR ANY  MOTOR  VEHICLE
 FEATURE THAT:
   (1)  UTILIZES  COMPONENTS  AND HARDWARE ALREADY INSTALLED ON THE MOTOR
 VEHICLE AT THE TIME OF PURCHASE OR LEASE BY THE CONSUMER; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01301-02-6
 A. 10411                            2
 
   (2) WOULD FUNCTION AFTER ACTIVATION WITHOUT ONGOING COST TO OR SUPPORT
 BY THE DEALER, MANUFACTURER, OR ANY THIRD-PARTY SERVICE PROVIDER.
   (C) THE PROVISIONS OF THIS SECTION SHALL NOT:
   (1)  APPLY TO NAVIGATION SYSTEM UPDATES, INFOTAINMENT FEATURES, SATEL-
 LITE RADIO, IN-VEHICLE WI-FI, TELEMATICS SERVICES, ROADSIDE  ASSISTANCE,
 SOFTWARE-DEPENDENT  DRIVER  ASSISTANCE OR DRIVER AUTOMATION FEATURES, OR
 VEHICLE-CONNECTED SERVICES THAT RELY ON CELLULAR OR OTHER DATA  NETWORKS
 FOR CONTINUED OPERATION; OR
   (2)  BE  CONSTRUED TO PROHIBIT A DEALER OR MANUFACTURER FROM PROVIDING
 ANY SOFTWARE UPDATE TO A CONSUMER, PROVIDED THE DEALER  OR  MANUFACTURER
 DOES  NOT  CHARGE THE CONSUMER A FEE FOR ANY SOFTWARE UPDATE REMEDYING A
 SAFETY-RELATED DEFECT THAT IS REQUIRED TO BE PROVIDED TO THE CONSUMER AT
 NO COST AS REQUIRED BY SECTION 573.6 OF TITLE 49 OF  THE  UNITED  STATES
 CODE.
   (D)  ANY  MANUFACTURER,  DEALER,  OR AGENT OF A MANUFACTURER OR DEALER
 THAT FAILS TO COMPLY WITH THE REQUIREMENTS  OF  THIS  SECTION  SHALL  BE
 ASSESSED  A  CIVIL  PENALTY  NOT TO EXCEED TWO HUNDRED FIFTY DOLLARS PER
 POINT OF SALE FOR EACH VIOLATION.
   (E) THE ATTORNEY GENERAL MAY PROMULGATE SUCH RULES AND REGULATIONS  AS
 ARE NECESSARY TO EFFECTUATE AND ENFORCE THE PROVISIONS OF THIS SECTION.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such effective date.