S2789-2011 - NY Senate Open Legislation - Regulates vehicle licensing recovery fees as they relate to rental vehicles

Regulates vehicle licensing recovery fees as they relate to rental vehicles.

Sponsor: KLEIN / Committee: RULES
Law Section: General Business Law / Law: Amd S396-z, Gen Bus L

S2789-2011 Actions

Jun 21, 2012: COMMITTED TO RULES
Jan 23, 2012: ADVANCED TO THIRD READING
Jan 19, 2012: 2ND REPORT CAL.
Jan 18, 2012: 1ST REPORT CAL.69
Jan 4, 2012: REFERRED TO CONSUMER PROTECTION
Jan 4, 2012: returned to senate
Jan 4, 2012: died in assembly
Jun 7, 2011: referred to consumer affairs and protection
Jun 7, 2011: DELIVERED TO ASSEMBLY
Jun 7, 2011: PASSED SENATE
May 23, 2011: ADVANCED TO THIRD READING
May 18, 2011: 2ND REPORT CAL.
May 17, 2011: 1ST REPORT CAL.755
Feb 1, 2011: REFERRED TO CONSUMER PROTECTION

S2789-2011 Meetings

Consumer Protection: Jan 18, 2012, Consumer Protection: May 17, 2011

S2789-2011 Calendars

S2789-2011 Votes

VOTE: COMMITTEE VOTE: - Consumer Protection - May 17, 2011

Ayes (7): Zeldin, Ball, Fuschillo, Little, Marcellino, Hassell-Thompson, Huntley
Ayes W/R (2): O'Mara, Adams
Nays (1): Squadron

VOTE: FLOOR VOTE: - Jun 7, 2011

Ayes (61): Adams, Addabbo, Alesi, Avella, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Duane, Espaillat, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Huntley, Johnson, Kennedy, Klein, Krueger, Kruger, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Montgomery, Nozzolio, O'Mara, Oppenheimer, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Saland, Sampson, Savino, Serrano, Seward, Skelos, Smith, Stavisky, Stewart-Cousin, Valesky, Young, Zeldin
Nays (1): Squadron

VOTE: COMMITTEE VOTE: - Consumer Protection - Jan 18, 2012

Ayes (8): Zeldin, Ball, Fuschillo, Little, Marcellino, Adams, Hassell-Thompson, Huntley
Ayes W/R (1): O'Mara
Nays (1): Squadron

S2789-2011 Memo

BILL NUMBER:S2789

TITLE OF BILL:
An act
to amend the general business law, in relation to rental car vehicles

PURPOSE:
To permit rental vehicle companies to itemize charges on the rental
agreement for certain costs associated with the licensing, titling,
registration, and inspection of vehicles.

SUMMARY OF PROVISIONS:
This bill amends subdivisions 1, 8 and 10 of section 396-z of the
general business law.

Section 1 amends General Business Law �396-z (1) to add the definition
of "vehicle licensing recovery fee" as the daily fee a rental vehicle
company may charge customers which shall represent an average
per-rental portion of the company's estimated annual costs, as
imposed by the state, for the licensing, titling, registration and
inspection of its vehicles in New York. Should the amount recovered
from renters differ from the total amount paid by the vehicle rental
company, the rental car company shall adjust its daily fee in the
following calendar year by the amount of the difference. The amount
of such fees collected and reconciliation with actual amounts paid
shall be posted annually on each company's website.

Section 2 amends General Business Law �396-z (8) to allow rental car
companies to advertise and quote base rental rates without bundling
the vehicle licensing costs into the base rate.

Section 3 amends General Business Law �396-z (10) to require rental
car companies to separately state on the rental agreement the base
rate, taxes, mileage charge, optional items selected by the renter,
airport fees, and vehicle licensing recovery fees.

JUSTIFICATION:
New York has traditionally allowed only for taxes, mileage charges,
optional items (such as navigation systems) and fees imposed on a
rental vehicle company by an airport to be stated separately on a
renter's rental agreement. Other mandated costs are currently bundled
into the rental rate of each vehicle. The consumer is currently
unaware which portion of the rate relates to the use of the vehicle
and which portion of the rate relates to state-mandated expenses
related to the vehicle. These New York State mandated expenses
include the cost of licensing, titling, registering and inspecting
the vehicle.

Rental car companies register tens of thousands of vehicles in New York.
As vehicle licensing fees increase, rental car companies must raise
rental rates accordingly. This legislation will allow rental car

companies to keep rates consistent with what they are offering in
other states and on national advertising campaigns. It will not allow
rental car companies to separately state expenses that constitute the
general cost of doing business.

LEGISLATIVE HISTORY:
Similar S.5725 Passed the Senate in 2010.
2010 - PASSED SENATE; Died in Assembly

EFFECTIVE DATE:
This law shall take effect immediately; provided, however, that the
amendments to section 396-z of the general business law made by
sections 1, 2 and 3 of this act shall not affect the repeal of such
section and shall be deemed repealed therewith.

S2789-2011 Text

 S T A T E   O F   N E W   Y O R K
 
                                          2789
 2011-2012 Regular Sessions
 I N  SENATE
 February 1, 2011
 
 Introduced  by  Sen.  KLEIN  -- 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  rental  car
 vehicles
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. Subdivision 1 of section 396-z of the general business  law
 is amended by adding a new paragraph (k) to read as follows:

 (K)  "VEHICLE  LICENSING  RECOVERY  FEE"  MEANS THE DAILY FEE A RENTAL
 VEHICLE COMPANY MAY CHARGE ITS CUSTOMERS WHICH SHALL REPRESENT AN  AVER
 AGE  PER-RENTAL  DAY PORTION OF THE COMPANY'S ESTIMATED ANNUAL COSTS, AS
 IMPOSED BY THE STATE,  FOR  THE  LICENSING,  TITLING,  REGISTRATION  AND
 INSPECTION  OF ITS VEHICLES IN THIS STATE. IF THE TOTAL AMOUNT RECOVERED
 FROM RENTERS BY A RENTAL VEHICLE  COMPANY  FOR  VEHICLE  LICENSING  FEES
 DURING  THE CALENDAR YEAR IS DIFFERENT THAN THE TOTAL AMOUNT PAID BY THE
 RENTAL VEHICLE COMPANY FOR SUCH ITEMS, THE RENTAL VEHICLE COMPANY  SHALL
 ADJUST ITS DAILY FEE IN THE FOLLOWING CALENDAR YEAR BY THE AMOUNT OF THE
 DIFFERENCE.    AS  OF  FEBRUARY  TWENTY-EIGHTH, TWO THOUSAND TWELVE, AND
 ANNUALLY EACH FEBRUARY TWENTY-EIGHTH THEREAFTER, A RENTAL VEHICLE COMPA
 NY SHALL POST INFORMATION ON ITS INTERNET WEBSITE IN  AN  UNDERSTANDABLE
 AND  READABLE  FORMAT  THAT SHALL SHOW A RECONCILIATION OF THE AMOUNT OF
 VEHICLE LICENSING RECOVERY FEES ACTUALLY  PAID  BY  THE  RENTAL  VEHICLE
 COMPANY  DURING  THE  PRECEDING  CALENDAR YEAR AND THE AMOUNT OF VEHICLE
 LICENSING RECOVERY FEES CHARGED TO CUSTOMERS DURING THAT  SAME  CALENDAR
 YEAR FOR RENTAL OF VEHICLES.
 

S  2.  Subdivision  8 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:

 8.  No  rental  vehicle company shall advertise or quote a rental rate
 that does not include all charges, except taxes or optional items and/or
 services or any mileage charge, which an authorized driver must  pay  to
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD08036-01-1
        S. 2789                             2
 obtain  a  rental  vehicle.  Provided, however, a rental vehicle company
 shall be permitted to separately  quote  and  charge  airport  fees  [as
 defined  herein]  AND VEHICLE LICENSING RECOVERY FEES, which shall be in
 addition to the rental rate; and provided further that advertised rental
 rates  that  include locations at which airport fees apply shall clearly
 indicate that additional fees apply.
 

S 3. Paragraphs (a) and (b) of subdivision 10 of section 396-z of  the
 general business law, as amended by chapter 731 of the laws of 2006, are
 amended to read as follows:

 (a)  A  rental  vehicle  company  shall  not charge in addition to the
 rental rate, taxes, and mileage charge, if any, any fee  which  must  be
 paid as a condition of renting the vehicle, such as, but not limited to,
 required  fuel  surcharges,  each of which shall be separately stated on
 the rental agreement. In addition, a rental  vehicle  company  may  also
 state  separately  and  charge,  where applicable, airport fees [as such
 term is defined herein] AND VEHICLE LICENSING RECOVERY FEES.
 (b) In addition to the rental rate, taxes,  applicable  airport  fees,
 VEHICLE  LICENSING  RECOVERY  FEES, and mileage charge, if any, a rental
 vehicle company may charge for an item or service provided in connection
 with a particular rental transaction if the renter  could  have  avoided
 incurring  the  charge by not choosing to obtain or utilize the optional
 item or service, such as, but not limited to,  optional  accessories  or
 services  requested  by  the  renter,  service  charges  incident to the
 renter's optional return of the vehicle to a  location  other  than  the
 location  where  the  vehicle  was rented, and charges for refueling the
 vehicle with as much fuel as was in the fuel tank at  the  beginning  of
 the rental.
 

S  4.  This act shall take effect immediately; provided, however, that
 the amendments to section 396-z of the  general  business  law  made  by
 sections  one,  two and three of this act shall not affect the repeal of
 such section and shall be deemed repealed therewith.

S2789-2011: Regulates vehicle licensing recovery fees as they relate to rental vehicles