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

                                  5361

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            February 25, 2013
                               ___________

Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
  tee on Consumer Affairs and 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.
                                                           LBD01058-02-3
              

A. 5361                             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.