Senate Bill S3777

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3777
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2025
                                ___________
 
 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).
   (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:
   (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05342-01-5
              

 S. 3777                             2
 
 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.