NY State Senate Bill 2025-S9501

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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 18, 2026	referred to consumer protection

2025-S9501 (ACTIVE) - Details

See Assembly Version of this Bill:: A9381
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §396-z, Gen Bus L

2025-S9501 (ACTIVE) - Summary

Amends provisions relating to unauthorized rental car use; authorizes a rental vehicle company to regain custody of a rental vehicle which is not returned at the end of the rental agreement including repossession.

2025-S9501 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9501

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the general business law, in relation to unauthorized
rental car use

 
PURPOSE:

To mitigate fraudulent vehicle rentals and modernize notification meth-
ods for rental vehicle companies seeking to recover vehicles that have
been fraudulently rented or possessed in breach of a, rental agreement.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends subdivision 14 of § 396-z of the general
business law to establish the terms and conditions by which a rental
vehicle company may take steps to recover a vehicle that is possessed by
a renter, without permission, for more than 24 hours beyond the period
specified in the rental agreement or when the renter has obtained custo-
dy of'a rental vehicle under materially false or fraudulent pretenses,

representations or promises.

Section two of the bill amends subdivision 14 of § 396-z of the general
business law making the identical changes as reflected in section one of
this bill to account for the expiration and reversion of this section.

Section three of the bill provides the effective date.

 
JUSTIFICATION:

Under current law, for a rental vehicle company to recover a rental
vehicle, it must demonstrate that the renter intentionally withheld the
vehicle for a period that constitutes a "gross deviation from the rental
agreement." The statute defines "gross deviation from the rental agree-
ment" as circumstances where the renter is authorized to rent a vehicle
for fifteen days or less, but then keeps the vehicle for at least anoth-
er week beyond the return date specified in the rental agreement. Once
the renter has kept possession of the vehicle a week past its agreed
upon return date, the rental company must notify the renter in writing
by delivering a notice in person or using certified mail that the renter
return the vehicle and is subject to criminal penalties upon failure to
comply. Only after the renter keeps the vehicle additional two days
after this notification may the rental vehicle company seek assistance
from law enforcement in recovering the vehicle.

On June 28, 2025, a customer walked into a rental company location in
Brooklyn and entered into a written rental agreement for a one-day
rental. She did not return the car in one day, or two, or three and did
not respond to numerous inquiries from the rental car company. In
compliance with the current unauthorized use statute requiring a vehicle
be withheld for not less than seven days beyond its return date, a writ-
ten letter was delivered to the renters address on July 8th. In compli-
ance with the statute, another 48-hours passed after which the rental
car company could finally seek assistance from law enforcement to
recover the vehicle.òOn July 19th, a full 20 days after the vehicle was
to be returned, with the renter at the wheel, it sped off the Manhattan
Bridge near Chinatown in excess of 70 mph killing a man on a bicycle and
a woman waiting at a bus stop. The driver and her passenger attempted to
flee on foot but were apprehended. Drugs and alcohol were found inside
the vehicle.

Today, twenty-six years into the twenty-first century, rental vehicle
companies have numerous tools to quickly recognize fraudulent rentals
and to track down their vehicles once they are being operated outside
the terms of the rental contract. However, under existing law requires
that, even when possession is maintained past 24 hours of a one-day
rental, the rental vehicle company must wait an additional seven days
and then must serve a written demand for return and wait an additional
48 hours before notifying law enforcement. And even then, "unauthorized
use of a motor vehicle" tends to be an extremely low priority for law
enforcement which tend to view these matters not as criminal violations,
but as a breach of contract.'

The purpose of this bill is to provide the legal framework within the
General Business Law for rental vehicle companies to address non-permis-
sive retention and rental by fraudulent' means initially as contractual
matter with timeframes set to reflect the fact that communication
between contractual parties today is significantly different than it was
when the unauthorized use statute was updated almost fifty years ago as
the primary method for recovering these vehicles.

The problem is not insignificant. While most rental vehicle companies
have systems in place, such as the use of driver's license scanning
software and chip readers, increasingly sophisticated use of fraudulent
means enable a handful of disreputable renters to slip through the
cracks. Within the past year, one rental vehicle company alone reported
forty-one fraudulent rentals, amounting to over $300,000 worth of vehi-
cle damages or unrecovered vehicle losses. At the end of the day, with
rare exceptions for the most egregious cases, rental vehicle company's
priority is not to engage police or saddle renters with criminal records
rather it is to regain possession of its property. This bill strikes the
proper balance by shrinking time-frames, engaging modern communication
techniques and focusing on the repossession of the vehicle within the
confines of the business relationship. At the same time, it updates the
unauthorized use statute to allow rental vehicle ,companies to engage
law enforcement in the most extreme circumstances when civil recovery is
ineffective.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2025-S9501 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9501
 
                             I N  S E N A T E
 
                              March 18, 2026
                                ___________
 
 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  unauthorized
   rental car use
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subdivision 14 of section 396-z  of  the  general  business
 law,  as  amended by chapter 109 of the laws of 2018, is amended to read
 as follows:
   14. (A) (I) A RENTER MAY NOT CONTINUE  CUSTODY  OF  A  RENTAL  VEHICLE
 BEYOND  THE  PERIOD  SET FORTH IN THE RENTAL AGREEMENT UNLESS THE RENTAL
 VEHICLE COMPANY HAS EXPRESSLY CONSENTED TO EXTEND SUCH PERIOD.
   (II) A RENTAL VEHICLE COMPANY IS AUTHORIZED TO  REGAIN  CUSTODY  OF  A
 RENTAL  VEHICLE REGISTERED TO SUCH COMPANY SUBJECT TO THE PROCEDURES SET
 FORTH IN SUBPARAGRAPH (III) OF THIS PARAGRAPH WHERE:
   (1) A RENTER HAVING CUSTODY OF A VEHICLE PURSUANT TO A  RENTAL  AGREE-
 MENT  SPECIFYING THAT SUCH VEHICLE IS TO BE RETURNED TO THE RENTAL VEHI-
 CLE COMPANY AT A CERTAIN DATE AND TIME:
   (A) INTENTIONALLY RETAINS CUSTODY OF THE VEHICLE, WITHOUT THE  EXPRESS
 CONSENT  OF THE RENTAL VEHICLE COMPANY, AND CONTINUES SUCH CUSTODY FOR A
 PERIOD OF MORE THAN TWENTY-FOUR HOURS AFTER THE RENTER HAS BEEN NOTIFIED
 THAT THE VEHICLE IS POSSESSED BEYOND THE PERIOD SPECIFIED IN THE  RENTAL
 AGREEMENT  AND MUST BE RETURNED IMMEDIATELY TO THE RENTAL VEHICLE COMPA-
 NY;
   (B) OBTAINS CUSTODY OF THE VEHICLE THROUGH MATERIALLY FALSE OR FRAUDU-
 LENT PRETENSES, REPRESENTATIONS, OR PROMISES, INCLUDING BUT NOT  LIMITED
 TO  THE  USE  OF  ANOTHER  PERSON'S  PERSONAL IDENTIFYING INFORMATION AS
 DEFINED IN SECTION 190.77 OF THE PENAL LAW; OR
   (C) FAILS TO REMIT PAYMENT IN ACCORDANCE  WITH  THE  RENTAL  AGREEMENT
 AFTER NOTIFICATION OF ARREARS BY THE RENTAL VEHICLE COMPANY; OR
   (2)  THE RENTAL VEHICLE COMPANY HAS BEEN NOTIFIED BY A LAW ENFORCEMENT
 AGENCY THAT THE VEHICLE IS BEING USED OR HAS BEEN USED IN FURTHERANCE OF
 CRIMINAL ACTIVITY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14256-05-6

 S. 9501                             2
 
   (III) IN THE EVENT A RENTER HAS ENGAGED IN ANY OF THE  ACTIVITIES  SET
 FORTH  IN  SUBPARAGRAPH  (II)  OF  THIS PARAGRAPH, SUBJECT TO THE NOTICE
 PROVISIONS ESTABLISHED HEREIN, A RENTAL VEHICLE COMPANY IS AUTHORIZED TO
 RECOVER ITS VEHICLE IN ACCORDANCE WITH STANDARD BUSINESS  PRACTICES  AND
 ARTICLE  2-A  OF  THE  UNIFORM COMMERCIAL CODE. PRIOR TO TAKING ANY SUCH
 ACTION, THE RENTAL VEHICLE  COMPANY  SHALL  NOTIFY  THE  RENTER  AT  THE
 CONTACT  INFORMATION  PROVIDED  BY THE RENTER AND AFFORD THE RENTER WITH
 THE OPPORTUNITY TO EITHER RETURN THE VEHICLE OR, SUBJECT TO THE  CONSENT
 OF  THE  RENTAL VEHICLE COMPANY, EXTEND THE RENTAL PERIOD. IF THE RENTER
 DOES NOT RESPOND TO SUCH NOTICE OR RETURN THE VEHICLE WITHIN TWENTY-FOUR
 HOURS OF SUCH NOTIFICATION, THE RENTAL VEHICLE  COMPANY  MAY  TAKE  SUCH
 ACTION  CONSISTENT  WITH  STANDARD BUSINESS PRACTICES AND ARTICLE 2-A OF
 THE UNIFORM COMMERCIAL CODE TO LOCATE AND REGAIN CUSTODY OF THE VEHICLE.
 ALL ATTEMPTS TO NOTIFY THE RENTER OF THE UNAUTHORIZED USE OF THE  RENTAL
 VEHICLE SHALL BE DOCUMENTED AND MAINTAINED BY THE RENTAL VEHICLE COMPANY
 FOR SIXTY DAYS AFTER THE VEHICLE HAS BEEN RETURNED OR RECOVERED OR LONG-
 ER  IN  THE  DISCRETION  OF THE RENTAL VEHICLE COMPANY OR REQUIRED BY AN
 ARBITRATOR OR COURT OF LAW.
   (B) An authorized driver shall provide notice to  the  rental  vehicle
 company  and  law  enforcement agency within twelve hours of learning of
 the theft of the rental vehicle.
   (C) NOTWITHSTANDING THE PROVISIONS OF SECTION 165.05 OF THE PENAL LAW,
 WHEN A RENTAL VEHICLE COMPANY  HAS  EXHAUSTED  THE  REMEDIES  PRESCRIBED
 HEREIN  TO  REGAIN POSSESSION OF A VEHICLE PURSUANT TO THIS SUBDIVISION,
 IT MAY REPORT THE VEHICLE STOLEN  TO  THE  APPROPRIATE  LAW  ENFORCEMENT
 AGENCY.
   §  2.  Subdivision 14 of section 396-z of the general business law, as
 amended by chapter 731 of the laws  of  2006,  is  amended  to  read  as
 follows:
   14.  (A)  (I)  A  RENTER  MAY NOT CONTINUE CUSTODY OF A RENTAL VEHICLE
 BEYOND THE PERIOD SET FORTH IN THE RENTAL AGREEMENT  UNLESS  THE  RENTAL
 VEHICLE COMPANY HAS EXPRESSLY CONSENTED TO EXTEND SUCH PERIOD.
   (II)  A  RENTAL  VEHICLE  COMPANY IS AUTHORIZED TO REGAIN CUSTODY OF A
 RENTAL VEHICLE REGISTERED TO SUCH COMPANY SUBJECT TO THE PROCEDURES  SET
 FORTH IN SUBPARAGRAPH (IV) OF THIS PARAGRAPH WHERE:
   (1)  A  RENTER HAVING CUSTODY OF A VEHICLE PURSUANT TO A RENTAL AGREE-
 MENT SPECIFYING THAT SUCH VEHICLE IS TO BE RETURNED TO THE RENTAL  VEHI-
 CLE COMPANY AT A CERTAIN DATE AND TIME:
   (A)  INTENTIONALLY RETAINS CUSTODY OF THE VEHICLE, WITHOUT THE EXPRESS
 CONSENT OF THE RENTAL VEHICLE COMPANY, AND CONTINUES SUCH CUSTODY FOR  A
 PERIOD OF MORE THAN TWENTY-FOUR HOURS AFTER THE RENTER HAS BEEN NOTIFIED
 THAT  THE VEHICLE IS POSSESSED BEYOND THE PERIOD SPECIFIED IN THE RENTAL
 AGREEMENT AND MUST BE RETURNED IMMEDIATELY TO THE RENTAL VEHICLE  COMPA-
 NY;
   (B) OBTAINS CUSTODY OF THE VEHICLE THROUGH MATERIALLY FALSE OR FRAUDU-
 LENT  PRETENSES, REPRESENTATIONS, OR PROMISES, INCLUDING BUT NOT LIMITED
 TO THE USE OF  ANOTHER  PERSON'S  PERSONAL  IDENTIFYING  INFORMATION  AS
 DEFINED IN SECTION 190.77 OF THE PENAL LAW; OR
   (C)  FAILS TO REMIT PAYMENT IN ACCORDANCE WITH THE TERMS OF THE RENTAL
 AGREEMENT AFTER NOTIFICATION OF ARREARS BY THE RENTAL  VEHICLE  COMPANY;
 OR
   (III)  THE  RENTAL VEHICLE COMPANY HAS BEEN NOTIFIED BY A LAW ENFORCE-
 MENT AGENCY THAT THE VEHICLE IS BEING USED OR HAS BEEN USED IN  FURTHER-
 ANCE OF CRIMINAL ACTIVITY.
   (IV)  IN  THE  EVENT A RENTER HAS ENGAGED IN ANY OF THE ACTIVITIES SET
 FORTH IN SUBPARAGRAPH (II) OF THIS  PARAGRAPH,  SUBJECT  TO  THE  NOTICE
 S. 9501                             3
 
 PROVISIONS ESTABLISHED HEREIN, A RENTAL VEHICLE COMPANY IS AUTHORIZED TO
 RECOVER  ITS  VEHICLE IN ACCORDANCE WITH STANDARD BUSINESS PRACTICES AND
 ARTICLE 2-A OF THE UNIFORM COMMERCIAL CODE. PRIOR  TO  TAKING  ANY  SUCH
 ACTION,  THE  RENTAL  VEHICLE  COMPANY  SHALL  NOTIFY  THE RENTER AT THE
 CONTACT INFORMATION PROVIDED BY THE RENTER AND AFFORD  THE  RENTER  WITH
 THE  OPPORTUNITY TO EITHER RETURN THE VEHICLE OR, SUBJECT TO THE CONSENT
 OF THE RENTAL VEHICLE COMPANY, EXTEND THE RENTAL PERIOD. IF  THE  RENTER
 DOES NOT RESPOND TO SUCH NOTICE OR RETURN THE VEHICLE WITHIN TWENTY-FOUR
 HOURS  OF  SUCH  NOTIFICATION,  THE RENTAL VEHICLE COMPANY MAY TAKE SUCH
 ACTION CONSISTENT WITH STANDARD BUSINESS PRACTICES AND  ARTICLE  2-A  OF
 THE UNIFORM COMMERCIAL CODE TO LOCATE AND REGAIN CUSTODY OF THE VEHICLE.
 ALL  ATTEMPTS TO NOTIFY THE RENTER OF THE UNAUTHORIZED USE OF THE RENTAL
 VEHICLE SHALL BE DOCUMENTED AND MAINTAINED BY THE RENTAL VEHICLE COMPANY
 FOR SIXTY DAYS AFTER THE VEHICLE HAS BEEN RETURNED OR RECOVERED OR LONG-
 ER IN THE DISCRETION OF THE RENTAL VEHICLE COMPANY  OR  REQUIRED  BY  AN
 ARBITRATOR OR COURT OF LAW.
   (B)  An  authorized  driver shall provide notice to the rental vehicle
 company or law enforcement agency within twelve hours of learning of the
 theft of the rental vehicle.
   (C) NOTWITHSTANDING THE PROVISIONS OF SECTION 165.05 OF THE PENAL LAW,
 WHEN A RENTAL VEHICLE COMPANY  HAS  EXHAUSTED  THE  REMEDIES  PRESCRIBED
 HEREIN  TO  REGAIN POSSESSION OF A VEHICLE PURSUANT TO THIS SUBDIVISION,
 IT MAY REPORT THE VEHICLE STOLEN  TO  THE  APPROPRIATE  LAW  ENFORCEMENT
 AGENCY.
   §  3. This act shall take effect immediately, provided that the amend-
 ments to section 396-z of the general business law, made by section  one
 of  this  act,  shall be subject to the expiration and reversion of such
 section pursuant to subdivision (a) of section 4 of chapter 109  of  the
 laws  of  2018,  as amended, when upon such date section two of this act
 shall take effect.

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Senate Bill S9501

Sponsored By

Current Bill Status - In Senate Committee Consumer Protection Committee

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2025-S9501 (ACTIVE) - Details

2025-S9501 (ACTIVE) - Summary

2025-S9501 (ACTIVE) - Sponsor Memo

2025-S9501 (ACTIVE) - Bill Text download pdf

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Sponsored By

Leroy Comrie

Current Bill Status - In Senate Committee Consumer Protection Committee

Actions

2025-S9501 (ACTIVE) - Details

2025-S9501 (ACTIVE) - Summary

2025-S9501 (ACTIVE) - Sponsor Memo

2025-S9501 (ACTIVE) - Bill Text download pdf

Comments