S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8430
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               June 10, 2025
                                ___________
 
 Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the general business law,  in  relation  to  used  motor
   vehicles
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Paragraphs 2, 4 and 7 of subdivision (a) of  section  198-a
 of  the  general  business law, paragraph 2 as amended by chapter 485 of
 the laws of 2003 and paragraphs 4 and 7 as added by chapter 799  of  the
 laws of 1986,  are amended to read as follows:
   (2) "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] THIRTY-SIX thousand  miles
 of  operation  or  [two] THREE years from the date of original delivery,
 whichever is earlier, or (ii) is registered in this state;
   (4) "Mileage deduction formula" means the mileage which is  in  excess
 of [twelve] TWENTY thousand miles times the purchase price, or the lease
 price  if  applicable, of the vehicle divided by [one] TWO hundred thou-
 sand miles.
   (7) "Service fees" means the portion of a lease  payment  attributable
 to:
   (i)  an amount for earned interest, REGARDLESS OF HOW IT IS CHARACTER-
 IZED IN THE LEASE AGREEMENT, calculated on the rental  payments,  INCLU-
 SIVE  OF  THE  EARNED  INTEREST,  previously  paid to the lessor for the
 leased vehicle at an annual rate equal to two  points  above  the  prime
 rate in effect on the date of the execution of the lease; and
   (ii) any insurance or other costs expended by the lessor for the bene-
 fit of the lessee.
   §  2.  Paragraphs  1  and 2 of subdivision (b) of section 198-a of the
 general business law, paragraph 1 as amended by chapter 217 of the  laws
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13190-02-5
              

 S. 8430                             2
 
 of  1990  and paragraph 2 as amended by chapter 279 of the laws of 1989,
 are amended to read as follows:
   (1)  If a new motor vehicle which is sold and registered in this state
 does not conform to all express warranties during the  first  [eighteen]
 THIRTY-SIX  thousand  miles  of  operation or during the period of [two]
 THREE years following the date of original delivery of the motor vehicle
 to such consumer, whichever is the  earlier  date,  the  consumer  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 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 author-
 ized dealer shall correct said nonconformity, defect or condition at  no
 charge  to  the consumer, 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 of
 a nonconformity, defect or condition pursuant to paragraph one  of  this
 subdivision, the consumer 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 manufacturer or its authorized agent fails
 to commence such repairs, the manufacturer, at the option of the consum-
 er, shall replace the motor vehicle with a comparable motor vehicle,  or
 accept return of the vehicle from the consumer and refund to the consum-
 er  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  consumer's
 use of the vehicle in excess of the first [twelve] TWENTY thousand miles
 of  operation pursuant to the mileage deduction formula defined in para-
 graph four of subdivision (a) of this section, and a  reasonable  allow-
 ance for any damage not attributable to normal wear or improvements.
   §  3.  Paragraph  1  of  subdivision c of section 198-a of the general
 business law, as amended by chapter 234 of the laws of 1990, is  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 after a reasonable number
 of attempts, the manufacturer, at the  option  of  the  consumer,  shall
 replace  the  motor  vehicle  with a comparable motor vehicle, or accept
 return of the vehicle from the consumer and refund to the  consumer  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, be made to the dealer or other authorized
 agent of the manufacturer who sold such vehicle to the  consumer  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
 S. 8430                             3
 
 use of the vehicle in excess of the first [twelve] TWENTY thousand miles
 of operation pursuant to the mileage deduction formula defined in  para-
 graph  four  of subdivision (a) of this section, and a reasonable allow-
 ance for any damage not attributable to normal wear or improvements.
   § 4. Subdivisions (e) and (h) of section 198-a of the general business
 law,  subdivision  (e)  as  added by chapter 444 of the laws of 1983 and
 subdivision (h) as amended by chapter 799  of  the  laws  of  1986,  are
 amended to read as follows:
   (e)  The  term  of  an express warranty, the [two] THREE year warranty
 period and the thirty day out of service period shall be extended by any
 time during which repair services are  not  available  to  the  consumer
 because  of  a  war,  invasion  or  strike, fire, flood or other natural
 disaster.
   (h) A manufacturer shall have up to thirty  days  from  the  date  the
 consumer  notifies  the  manufacturer  of  [his  or her] SUCH CONSUMER'S
 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 to recover a fee of [twenty-five] UP TO TWO HUNDRED
 FIFTY  dollars  for  each  business  day  of  noncompliance  up to [five
 hundred] TWO THOUSAND 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 who has
 requested a replacement vehicle built to order or with options that  are
 not  comparable  to the vehicle being replaced or otherwise made compli-
 ance impossible within said period. In no event shall a consumer who has
 resorted to an informal dispute settlement mechanism be  precluded  from
 seeking the rights or remedies available by law.
   §  5.  Paragraph  2 of subdivision (m) of section 198-a of the general
 business law, as added by chapter 799 of the laws of 1986,  subparagraph
 1  as  amended  by  chapter  217  of the laws of 1990, subparagraph 4 as
 amended by chapter 263 of the laws  of  1990,  is  amended  to  read  as
 follows:
   (2)  The  following notice shall be provided to consumers and arbitra-
 tors and shall be printed in conspicuous ten point bold face type:
                     NEW CAR LEMON LAW BILL OF RIGHTS
   (1) IN ADDITION TO ANY WARRANTIES OFFERED BY  THE  MANUFACTURER,  YOUR
 NEW  CAR,  IF  PURCHASED  AND REGISTERED IN NEW YORK STATE, IS WARRANTED
 AGAINST ALL MATERIAL DEFECTS FOR [EIGHTEEN] THIRTY-SIX THOUSAND MILES OR
 [TWO] THREE YEARS, WHICHEVER COMES FIRST.
   (2) YOU MUST REPORT ANY PROBLEMS TO THE MANUFACTURER,  ITS  AGENT,  OR
 AUTHORIZED DEALER.
   (3) UPON NOTIFICATION, THE PROBLEM MUST BE CORRECTED FREE OF CHARGE.
   (4)  IF  THE  SAME  PROBLEM  CANNOT  BE  REPAIRED  AFTER  FOUR OR MORE
 ATTEMPTS; OR IF YOUR CAR IS OUT OF SERVICE TO REPAIR  A  PROBLEM  FOR  A
 TOTAL  OF THIRTY DAYS DURING THE WARRANTY PERIOD; OR IF THE MANUFACTURER
 OR ITS AGENT REFUSES TO REPAIR A SUBSTANTIAL DEFECT OR CONDITION  WITHIN
 TWENTY  DAYS  OF  RECEIPT  OF  NOTICE SENT BY YOU TO THE MANUFACTURER BY
 CERTIFIED MAIL, RETURN RECEIPT REQUESTED; THEN YOU MAY  BE  ENTITLED  TO
 EITHER A COMPARABLE CAR OR A REFUND OF YOUR PURCHASE PRICE, PLUS LICENSE
 AND REGISTRATION FEES, MINUS A MILEAGE ALLOWANCE ONLY IF THE VEHICLE HAS
 BEEN  DRIVEN  MORE  THAN  [12,000]  20,000  MILES.  SPECIAL NOTIFICATION
 REQUIREMENTS MAY APPLY TO MOTOR HOMES.
   (5) A MANUFACTURER MAY DENY LIABILITY IF  THE  PROBLEM  IS  CAUSED  BY
 ABUSE, NEGLECT, OR UNAUTHORIZED MODIFICATIONS OF THE CAR.
 S. 8430                             4
 
   (6)  A  MANUFACTURER MAY REFUSE TO EXCHANGE A COMPARABLE CAR OR REFUND
 YOUR PURCHASE PRICE IF THE PROBLEM DOES  NOT  SUBSTANTIALLY  IMPAIR  THE
 VALUE OF YOUR CAR.
   (7)  IF  A  MANUFACTURER HAS ESTABLISHED AN ARBITRATION PROCEDURE, THE
 MANUFACTURER MAY REFUSE TO EXCHANGE A  COMPARABLE  CAR  OR  REFUND  YOUR
 PURCHASE PRICE UNTIL YOU FIRST RESORT TO THE PROCEDURE.
   (8)  IF  THE  MANUFACTURER DOES NOT HAVE AN ARBITRATION PROCEDURE, YOU
 MAY RESORT TO ANY REMEDY BY LAW AND MAY BE ENTITLED TO  YOUR  ATTORNEY'S
 FEES IF YOU PREVAIL.
   (9) NO CONTRACT OR AGREEMENT CAN VOID ANY OF THESE RIGHTS.
   (10)  AS  AN  ALTERNATIVE  TO THE ARBITRATION PROCEDURE MADE AVAILABLE
 THROUGH THE MANUFACTURER, YOU MAY INSTEAD CHOOSE TO SUBMIT YOUR CLAIM TO
 AN INDEPENDENT ARBITRATOR, APPROVED BY THE  ATTORNEY  GENERAL.  YOU  MAY
 HAVE  TO  PAY A FEE FOR SUCH AN ARBITRATION. CONTACT YOUR LOCAL CONSUMER
 OFFICE OR ATTORNEY GENERAL'S OFFICE TO FIND OUT HOW TO ARRANGE FOR INDE-
 PENDENT ARBITRATION.
   § 6. Paragraph 2 of subdivision a of  section  198-b  of  the  general
 business  law, as amended by chapter 485 of the laws of 2003, is amended
 to read as follows:
   2. "Used motor vehicle" means a motor vehicle, excluding  motor  homes
 and  off-road vehicles, which has been purchased, leased, or transferred
 either after [eighteen] THIRTY-SIX thousand miles of operation or  [two]
 THREE years from the date of original delivery, whichever is earlier;
   §  7.  Paragraphs  1  and  2  of subdivision b of section 198-b of the
 general business law, paragraph 1 as amended by chapter 857 of the  laws
 of  1990  and paragraph 2 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
 without  giving  the  consumer a written warranty which shall at minimum
 apply for the following terms:
   (a) If the used motor vehicle has [thirty-six] EIGHTY  thousand  miles
 or  less,  the warranty shall be at minimum [ninety days or four] TWELVE
 MONTHS OR TWELVE thousand miles, whichever comes first.
   (b) If the used motor vehicle has more than [thirty-six] EIGHTY  thou-
 sand  ONE  miles, but less than [eighty] ONE HUNDRED thousand miles, the
 warranty shall be at minimum [sixty days or three]  SIX  MONTHS  OR  SIX
 thousand miles, whichever comes first.
   (c)  If  the  used motor vehicle has [eighty] ONE HUNDRED ONE thousand
 miles or more but no more than [one] TWO  hundred  thousand  miles,  the
 warranty  shall  be  at  a  minimum [thirty days or one] THREE MONTHS OR
 THREE thousand miles, whichever comes first.
   2. The written warranty shall require the dealer or [his]  SUCH  DEAL-
 ER'S  agent  to  repair or, at the election of the dealer, reimburse the
 consumer 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.
   (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.
 S. 8430                             5
 
   (g)  Alternator,  generator,  starter,  ignition  system excluding the
 battery.
   (H)  OTHER  RELEVANT PARTS, INCLUDING BUT NOT LIMITED TO, MODERN CRIT-
 ICAL SYSTEMS, COMPUTERS, OR MODULES SUCH  AS  NAVIGATION  SYSTEMS,  LANE
 CHANGING SOFTWARE, DRIVER ASSISTANCE OR AUTOMATION SOFTWARE.
   §  8.  Paragraph  3  of  subdivision d of section 198-b of the general
 business law, as amended by chapter 692 of the laws of 1994, is  amended
 to read as follows:
   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
 consumer 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] TWO 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.
   §  9.  Paragraphs  1  and  3  of subdivision f of section 198-b of the
 general business law, paragraph 1 as separately amended by chapters  609
 and  444  of  the  laws of 1989, subparagraphs 2 and 3 of paragraph 1 as
 added by chapter 469 of the laws of 1994 and paragraph 3 as  amended  by
 chapter 323 of the laws of 1997,  are amended to read as follows:
   1.  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 who seek arbitration a copy of the  provisions  of
 this section together with the following notice in conspicuous ten point
 bold face type:
                     USED CAR LEMON LAW BILL OF RIGHTS
   1.  If you purchase a used car for more than one thousand five hundred
 dollars, or lease a used car where you and the dealer have  agreed  that
 the  car's  value  is  more than one thousand five hundred dollars, from
 anyone selling or leasing three or more used cars a year,  you  must  be
 given a written warranty.
   2.  If  your  used  car  has [18,000] 36,000 miles or less, you may be
 protected by the new car lemon law.
   3. (a) If your used car has more than [18,000] 36,000 miles and up  to
 and  including [36,000] 80,000 miles, a warranty must be provided for at
 least [90 days or 4,000] 12 MONTHS  OR  12,000  miles,  whichever  comes
 first.
   (b) If your used car has more than [36,000] 80,000 miles but less than
 [80,000]  100,000  miles,  a  warranty must be provided for at least [60
 days or 3,000] 6 MONTHS OR 6,000 miles, whichever comes first.
   (c) If your used car has [80,000] 100,000 miles or more  but  no  more
 than  [100,000]  200,000 miles, a warranty must be provided for at least
 [30 days or 1,000] 3 MONTHS OR 3,000 miles, whichever comes first.  Cars
 with over [100,000] 200,000 miles are not covered.
   4.  If your engine, transmission, drive axle, brakes, radiator, steer-
 ing, alternator, generator, starter, or ignition system  (excluding  the
 S. 8430                             6
 
 battery)  are defective, the dealer or [his] THEIR agent must repair or,
 if [he] SUCH DEALER so chooses, reimburse you for the reasonable cost of
 repair.
   5.  If  the  same  problem  cannot  be  repaired  after  three or more
 attempts, you are entitled to return the car and  receive  a  refund  of
 your  purchase  price or of all payments made under your lease contract,
 and of sales tax and fees, minus a reasonable allowance for  any  damage
 not  attributable  to  normal usage or wear, and, in the case of a lease
 contract, a cancellation of  all  further  payments  you  are  otherwise
 required to make under the lease contract.
   6.  If  your  car is out of service to repair a problem for a total of
 fifteen days or more during the warranty  period  you  are  entitled  to
 return  the  car  and  receive a refund of your purchase price or of all
 payments made under your lease contract, and  of  sales  tax  and  fees,
 minus  a  reasonable allowance for any damage not attributable to normal
 usage or wear, and, in the case of a lease contract, a  cancellation  of
 all  further payments you are otherwise required to make under the lease
 contract.
   7. A dealer may put into the written warranty certain provisions which
 will prohibit your recovery under certain conditions; however, the deal-
 er may not cause you to waive any rights under this law.
   8. A dealer may refuse to refund your purchase price, or the  payments
 made  under  your  lease contract, if the problem does not substantially
 impair the value of your car, or if the  problem  is  caused  by  abuse,
 neglect, or unreasonable modification.
   9.  If  a  dealer has established an arbitration procedure, the dealer
 may refuse to refund your purchase price until you first resort  to  the
 procedure. If the dealer does not have an arbitration procedure, you may
 resort  to any remedy provided by law and may be entitled to your attor-
 ney's fees if you prevail.
   10. As an alternative to  the  arbitration  procedure  made  available
 through  the  dealer  you  may instead choose to submit your claim to an
 independent arbitrator, approved by the attorney general. You  may  have
 to pay a fee for such an arbitration. Contact your local consumer office
 or  attorney general's office to find out how to arrange for independent
 arbitration.
   11. If any dealer refuses to honor your rights or you are  not  satis-
 fied  by  the informal dispute settlement procedure, complain to the New
 York State Attorney General, Executive  Office,  Capitol,  Albany,  N.Y.
 12224.
   3.  Upon the payment of a prescribed filing fee, a consumer 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 application  of  the
 consumer  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,
 such alternate arbitration mechanism shall be governed by article seven-
 ty-five of the civil practice law and rules.
 S. 8430                             7
 
   The  notice  required  by  paragraph one of this subdivision, entitled
 Used Car Lemon Law Bill of Rights, shall be provided to arbitrators  and
 consumers 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 to recover, in addition to any  other  recovery  to
 which  [he]  SUCH  CONSUMER  may be entitled, a fee of [twenty-five] TWO
 HUNDRED FIFTY dollars for each business day beyond  thirty  days  up  to
 [five  hundred]  TWO THOUSAND 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 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]
 SUCH COMMISSIONER may deny the application of any person  for  registra-
 tion  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] SUCH COMMISSIONER or such deputy deter-
 mines that such applicant or registrant or any officer, director, stock-
 holder, or partner, or any other person directly  or  indirectly  inter-
 ested  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.
   § 10. This act shall take effect one year after it shall have become a
 law.