NY State Senate Bill 2011-S5618

Senate Bill S5618

2011-2012 Legislative Session

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

download bill text pdf

Archive: Last 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to consumer protection
Jun 07, 2011	referred to consumer protection

2011-S5618 (ACTIVE) - Details

See Assembly Version of this Bill:: A8973
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §396-z, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S1690, S6320, A5361
2015-2016: S6336, A3066
2017-2018: S1949, S7378, A10250
2019-2020: S2531, A4020
2021-2022: S5816, A2584
2023-2024: S2662, A2585

2011-S5618 (ACTIVE) - Summary

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.

2011-S5618 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5618

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 396-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:
New Bill.

FISCAL IMPLICATIONS:
None.

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

2011-S5618 (ACTIVE) - Bill Text download pdf

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

                                  5618

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 7, 2011
                               ___________

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
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, SUCH
COMPANY MAY RENT A VEHICLE THAT IS SUBJECT TO A SAFETY  RECALL  PROVIDED
THAT  SUCH  COMPANY  DISCLOSES  TO  ANY  PROSPECTIVE  RENTER OF VEHICLES
COVERED UNDER A FEDERAL OR MANUFACTURER'S SAFETY RECALL THAT  THE  VEHI-
CLES ARE SUBJECT TO SAFETY RECALL NOTICES AND HAVE NOT BEEN INSPECTED OR
REPAIRED  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 VEHICLES OWNED BY THE RENTAL VEHICLE  COMPANY,  AND
SUCH  RENTAL  VEHICLE COMPANY HAS FAILED TO INSPECT OR REPAIR SUCH VEHI-
CLES, THE RENTAL VEHICLE COMPANY SHALL HAVE THE OPTION, AS  AN  ALTERNA-
TIVE 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 AGREE-
MENT 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10040-03-1

S. 5618                             2

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
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, SUCH
COMPANY MAY RENT A VEHICLE THAT IS SUBJECT TO A SAFETY  RECALL  PROVIDED
THAT  SUCH  COMPANY  DISCLOSES  TO  ANY  PROSPECTIVE  RENTER OF VEHICLES
COVERED UNDER A FEDERAL OR MANUFACTURER'S SAFETY RECALL THAT  THE  VEHI-
CLES ARE SUBJECT TO SAFETY RECALL NOTICES AND HAVE NOT BEEN INSPECTED OR
REPAIRED  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 VEHICLES OWNED BY THE RENTAL VEHICLE  COMPANY,  AND
SUCH  RENTAL  VEHICLE COMPANY HAS FAILED TO INSPECT OR REPAIR SUCH VEHI-
CLES, THE RENTAL VEHICLE COMPANY SHALL HAVE THE OPTION, AS  AN  ALTERNA-
TIVE 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 AGREE-
MENT 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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