Bill S1690-2013

Prohibits the rental of safety recalled cars until they are repaired in accordance with the recall

Restricts the rental of safety recalled cars until they are repaired in accordance with the recall; requires disclosure of such recall notices to prospective vehicle renters if such recalled cars have not been repaired.

Details

Actions

  • Jan 8, 2014: REFERRED TO CONSUMER PROTECTION
  • Jan 9, 2013: REFERRED TO CONSUMER PROTECTION

Meetings

Memo

BILL NUMBER:S1690

TITLE OF BILL: An act to amend the general business law, in relation to prohibiting the rental of motor vehicles that are subject to a recall

PURPOSE OR GENERAL IDEA OF BILL: This legislation would require rental car companies to fix defective vehicles that are subject to a federal or manufacturer's recall. Rental car companies would have the alternative option to alert the prospective renter to the defect, to the recall, and to the fact that the company has not addressed the defect so long as this disclosure is in writing, initialed by the customer and was made known prior to any rental agreement being signed.

SUMMARY OF PROVISIONS: Section One adds a new subdivision 16 to section 396-z of the general business law, as amended by the laws of 2006 which requires rental car companies to inspect and repair vehicles that are subject to a recall within 120 days of notification that the vehicle is subject to a recall. The rental company shall provide disclosure to the prospective renter during these 120 days, if inspections and repairs have not yet been made. Following the 120 days, the rental car company shall have the option of providing disclosure instead of making the inspections and repairs. All disclosures required or permitted in this bill shall be subject to specific requirements.

Section Two adds a new subdivision 14 to section 356-z of the general business law, as amended by the laws of 1988 which requires rental car companies to inspect and repair vehicles that are subject to a recall within 120 days of notification that the vehicle is subject to a recall. The rental company shall also have the option of providing disclosure subject to specific requirements upon such disclosure.

Section Three provides the effective date and provides that section two shall take effect when section one is repealed pursuant to section 4 of chapter 656 of the laws of 2002.

JUSTIFICATION: Recalls on vehicles are issued for public safety. The federal government, as well as car manufacturers, issue recall notices when a defect is discovered that could be potentially harmful to someone using the vehicle. Included among the most prevalent reasons for a motor vehicle recall are wiring and leaks that cause fire, steering problems that lead to a loss of control, and accelerators that break or suddenly freeze. These problems are all potentially deadly if not addressed. Under current law, auto dealers are prohibited from selling cars that are subject to a recall, however, there is no regulation with respect to the rental of recalled vehicles. This legislation holds car rental companies to heightened restrictions similar to those placed on auto dealers by requiring rental companies to inspect recalled vehicles, and when appropriate, repair such vehicles. Alternatively, rental car companies may disclose defects to potential renters if they decline to make the repairs under the recall. Disclosure is required at all times that a vehicle is rented by a vehicle rental company while it is subject to a recall. If disclosure is made with respect to the existence and nature of the

recall and the specific defect, and the customer initials a form containing this information prior to the signing of any rental agreement, the rental car company shall be permitted to rent the vehicle to the customer.

LEGISLATIVE HISTORY: 2012 - Consumer Protection

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately, with provisions.


Text

STATE OF NEW YORK ________________________________________________________________________ 1690 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. ZELDIN -- 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 prohibiting the rental of motor vehicles that are subject to a recall THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 396-z of the general business law, as amended by chapter 731 of the laws of 2006, is amended by adding a new subdivision 16 to read as follows: 16. RENTAL VEHICLE COMPANIES SHALL INSPECT AND, IF APPROPRIATE, REPAIR, OR ELIMINATE THE DEFECT IN ANY RENTAL VEHICLE COVERED UNDER A FEDERAL OR MANUFACTURER'S SAFETY RECALL WITHIN ONE HUNDRED TWENTY DAYS AFTER RECEIVING SUCH NOTICE. FOLLOWING RECEIPT OF SUCH NOTICE BY A RENTAL VEHICLE COMPANY AND PRIOR TO INSPECTION, REPAIR OR ELIMINATION OF A DEFECT, SUCH COMPANY MAY RENT A VEHICLE THAT IS SUBJECT TO A SAFETY RECALL PROVIDED THAT IT HAS BEEN ONE HUNDRED TWENTY DAYS OR LESS SINCE RECEIVING SUCH NOTICE, AND SUCH COMPANY DISCLOSES TO ANY PROSPECTIVE RENTER OF VEHICLES COVERED UNDER A FEDERAL OR MANUFACTURER'S SAFETY RECALL THAT THE VEHICLES ARE SUBJECT TO SAFETY RECALL NOTICES PRIOR TO THE SIGNING OF THE RENTAL AGREEMENT. IF ONE HUNDRED TWENTY DAYS SHALL LAPSE FOLLOWING THE RECEIPT OF NOTICE BY A RENTAL VEHICLE COMPANY THAT A FEDERAL OR MANUFACTURER'S SAFETY RECALL IS IN EFFECT ON ANY OF THE VEHI- CLES OWNED BY THE RENTAL VEHICLE COMPANY, AND SUCH RENTAL VEHICLE COMPA- NY HAS FAILED TO INSPECT, REPAIR OR ELIMINATE THE DEFECT IN SUCH VEHI- CLES, THE RENTAL VEHICLE COMPANY SHALL HAVE THE OPTION, AS AN ALTERNATIVE TO UNDERTAKING THE INSPECTIONS OR REPAIRS SUBJECT TO THE RECALL, TO DISCLOSE TO PROSPECTIVE RENTERS OF VEHICLES COVERED UNDER A FEDERAL OR MANUFACTURER'S SAFETY RECALL THAT THE VEHICLES ARE SUBJECT TO SAFETY RECALL NOTICES AND HAVE NOT BEEN INSPECTED OR REPAIRED PRIOR TO THE SIGNING OF THE AGREEMENT. ANY DISCLOSURES REQUIRED UNDER THIS
SECTION SHALL BE SET FORTH IN A SEPARATE DOCUMENT ATTACHED TO THE RENTAL AGREEMENT AND SHALL STATE (A) THAT THE SPECIFIC VEHICLE IS THE SUBJECT OF A SAFETY RECALL, (B) DESCRIBE THE RECALL IN QUESTION, AND (C) DESCRIBE THE NATURE OF THE DEFECT. SUCH DISCLOSURE SHALL BE INITIALLED BY THE PROSPECTIVE RENTER PRIOR TO THE SIGNING OF THE RENTAL AGREEMENT. S 2. Section 396-z of the general business law, as amended by chapter 784 of the laws of 1988, is amended by adding a new subdivision 14 to read as follows: 14. RENTAL VEHICLE COMPANIES SHALL INSPECT AND, IF APPROPRIATE, REPAIR, OR ELIMINATE THE DEFECT IN ANY RENTAL VEHICLE COVERED UNDER A FEDERAL OR MANUFACTURER'S SAFETY RECALL WITHIN ONE HUNDRED TWENTY DAYS AFTER RECEIVING SUCH NOTICE. FOLLOWING RECEIPT OF SUCH NOTICE BY A RENTAL VEHICLE COMPANY AND PRIOR TO INSPECTION, REPAIR OR ELIMINATION OF A DEFECT, SUCH COMPANY MAY RENT A VEHICLE THAT IS SUBJECT TO A SAFETY RECALL PROVIDED THAT IT HAS BEEN ONE HUNDRED TWENTY DAYS OR LESS SINCE RECEIVING SUCH NOTICE, AND SUCH COMPANY DISCLOSES TO ANY PROSPECTIVE RENTER OF VEHICLES COVERED UNDER A FEDERAL OR MANUFACTURER'S SAFETY RECALL THAT THE VEHICLES ARE SUBJECT TO SAFETY RECALL NOTICES PRIOR TO THE SIGNING OF THE RENTAL AGREEMENT. IF ONE HUNDRED TWENTY DAYS SHALL LAPSE FOLLOWING THE RECEIPT OF NOTICE BY A RENTAL VEHICLE COMPANY THAT A FEDERAL OR MANUFACTURER'S SAFETY RECALL IS IN EFFECT ON ANY OF THE VEHI- CLES OWNED BY THE RENTAL VEHICLE COMPANY, AND SUCH RENTAL VEHICLE COMPA- NY HAS FAILED TO INSPECT, REPAIR OR ELIMINATE THE DEFECT IN SUCH VEHI- CLES, THE RENTAL VEHICLE COMPANY SHALL HAVE THE OPTION, AS AN ALTERNATIVE TO UNDERTAKING THE INSPECTIONS OR REPAIRS SUBJECT TO THE RECALL, TO DISCLOSE TO PROSPECTIVE RENTERS OF VEHICLES COVERED UNDER A FEDERAL OR MANUFACTURER'S SAFETY RECALL THAT THE VEHICLES ARE SUBJECT TO SAFETY RECALL NOTICES AND HAVE NOT BEEN INSPECTED OR REPAIRED PRIOR TO THE SIGNING OF THE AGREEMENT. ANY DISCLOSURES REQUIRED UNDER THIS SECTION SHALL BE SET FORTH IN A SEPARATE DOCUMENT ATTACHED TO THE RENTAL AGREEMENT AND SHALL STATE (A) THAT THE SPECIFIC VEHICLE IS THE SUBJECT OF A SAFETY RECALL, (B) DESCRIBE THE RECALL IN QUESTION, AND (C) DESCRIBE THE NATURE OF THE DEFECT. SUCH DISCLOSURE SHALL BE INITIALLED BY THE PROSPECTIVE RENTER PRIOR TO THE SIGNING OF THE RENTAL AGREEMENT. S 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 section 4 of chapter 656 of the laws of 2002, as amended, when upon such date section two of this act shall take effect.

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