Prohibits rental vehicle companies from charging exorbitant rates for unfueled vehicles returned by customers; provides that any refueling charge imposed as part of a rental agreement shall be no higher than a rate which exceeds the highest retail rate of gasoline within a one-half mile radius of such rental vehicle company; imposes a fine of five hundred dollars per violation.

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S452-2013 Actions

• Jan 9, 2013: REFERRED TO CONSUMER PROTECTION

S452-2013 Memo

BILL NUMBER:S452

TITLE OF BILL:

An act
to amend the general business law, in relation to rates charged for
rental vehicle refueling

PURPOSE OR GENERAL IDEA OF THE BILL:

To prohibit rental car companies from charging consumers exorbitant
refueling rates for gasoline for rental motor vehicles returned
without a full tank of gas as documented at the time of rental.

SUMMARY OF PROVISIONS:

Prohibits any rental vehicle company from charging an authorized
driver a refueling rate which exceeds the highest retail price of
gasoline charged at gasoline stations or convenience stores within a
one-half mile radius of such rental vehicle company.

Clarifies that such charge be based on the difference of a documented
reading of the motor vehicle's fuel gauge, obtained at the time the
vehicle was delivered or picked up by the authorized driver, and the
subsequent fuel gauge reading taken when the vehicle is returned to
the rental car company.

This legislation makes violations subject to a $500 fine per violation.

JUSTIFICATION:

Many car rental companies charge a driver a refueling fee when a
vehicle is returned without a full tank of gas. Studies by the New
York Public Interest Research Group (NYPIRG) reveals that these
prices often range anywhere from $2.00 to $5.00 per gallon in certain
areas. These amounts have certainly increased with the past years gas
price increases.

This legislation will end this type of "price gouging" by placing a
limit on the amount a car rental company may charge a consumer for
refueling gasoline, and imposes a $500 fine for any violations.

LEGISLATIVE HISTORY:

2011-12: S.7188/A.2489 (Jeffries)
2009-10: A.379 (Jeffries)
2007-08: S.4187 (Savino)/A.10095 (Jeffries)
2003-04: S.4644 (Lachman)
2001-01: S.455  (Gentile)
1999-00: S.1867 (Gentile)
1997-98: S.4794 (Gentile)

FISCAL IMPLICATIONS:

None.


EFFECTIVE DATE:

This act shall take effect on the sixtieth day, with provisions.

S452-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                     452

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  Introduced  by  Sen.  AVELLA -- 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  rates  charged
    for rental vehicle refueling

    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  is  amended  by
  adding a new subdivision 16 to read as follows:

    16.  (A)  NO  RENTAL  VEHICLE  COMPANY, AS PART OF A RENTAL AGREEMENT,
  SHALL CHARGE AN AUTHORIZED DRIVER A REFUELING  RATE  WHICH  EXCEEDS  THE
  HIGHEST RETAIL PRICE OF GASOLINE CHARGED AT GASOLINE STATIONS OR CONVEN-
  IENCE STORES WITHIN A ONE-HALF MILE RADIUS OF SUCH RENTAL VEHICLE COMPA-
  NY.    SUCH CHARGE MAY BE IMPOSED WHEN A RETURNED RENTAL VEHICLE'S GASO-
  LINE TANK IS NOT FULL TO  CAPACITY,  BASED  ON  THE  DIFFERENCE  BETWEEN
  DOCUMENTED  READING  OF  SUCH MOTOR VEHICLE'S FUEL GAUGE OBTAINED AT THE
  TIME SUCH MOTOR VEHICLE WAS DELIVERED OR PICKED UP  BY  SUCH  AUTHORIZED
  DRIVER,  AND  THE  SUBSEQUENT  FUEL GAUGE READING TAKEN AT THE TIME SUCH
  RENTED MOTOR VEHICLE IS RETURNED TO THE RENTAL VEHICLE COMPANY.
    (B) ANY VIOLATION OF THE  PROVISIONS  OF  THIS  SUBDIVISION  SHALL  BE
  SUBJECT TO A FINE OF FIVE HUNDRED DOLLARS PER VIOLATION.
    S  2.  This  act  shall take effect on the sixtieth day after it shall
  have become a law;  provided,  however,  that  the  amendments  made  to
  section  396-z  of  the  general business law by section one of this act
  shall not affect the repeal and reversion of such section and  shall  be
  deemed to be repealed therewith.


   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD03406-01-3