Bill S350A-2013

Relates to charges by a rental vehicle company for optional vehicle protection

Relates to charges by a rental vehicle company for optional vehicle protection.

Details

Actions

  • Feb 7, 2014: PRINT NUMBER 350A
  • Feb 7, 2014: AMEND (T) AND RECOMMIT TO CONSUMER PROTECTION
  • Jan 8, 2014: REFERRED TO CONSUMER PROTECTION
  • Jan 9, 2013: REFERRED TO CONSUMER PROTECTION

Memo

BILL NUMBER:S350A

TITLE OF BILL: An act to amend the general business law, in relation to charges by a rental vehicle company for optional vehicle protection

PURPOSE:

To modify section 396-z of the General Business Law, which is concerned with rental vehicle protections.

SUMMARY OF PROVISIONS:

Section one increases the maximum charge for optional vehicle protection to fifteen dollars per day.

Section two of this bill provides an immediate effective date.

EXISTING LAW:

The maximum charge for optional vehicle protection is twelve dollars per day.

JUSTIFICATION:

The current maximum charge for optional vehicle protection is below the market rate. Fifteen dollars is a more accurate estimate of the market rate. Because the rental car market is a competitive market, such forced losses are passed along to consumers by the way of higher use fees. Individuals who already have car insurance, and thus tend not to purchase optional vehicle protection, are thus forced to pay a higher cost for using a rental vehicle without realizing the savings from a below market rate cap on the optional vehicle protection. In effect, these consumers subsidize those without insurance or those who choose to purchase the protection regardless of their insurance status.

LEGISLATIVE HISTORY:

New bill

FISCAL IMPLICATIONS:

None.

LOCAL FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE: Immediate.


Text

STATE OF NEW YORK ________________________________________________________________________ 350--A 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection -- recommitted to the Committee on Consumer Protection in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the general business law, in relation to charges by a rental vehicle company for optional vehicle protection THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph (a) of subdivision 2 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: (a) A rental vehicle company shall not charge more than nine dollars per full or partial twenty-four hour rental day for optional vehicle protection if the manufacturer's suggested retail price of the rental vehicle is not greater than thirty thousand dollars. A rental vehicle company shall not charge more than [twelve] FIFTEEN dollars per full or partial twenty-four hour rental day for optional vehicle protection if the manufacturer's suggested retail price of the rental vehicle is greater than thirty thousand dollars. S 2. This act shall take effect immediately, provided, however, that the amendments to paragraph (a) of subdivision 2 of section 396-z of the general business law made by section one of this act shall not affect the expiration of such section and shall be deemed to expire therewith.

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