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

                                  8159

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 10, 2015
                               ___________

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 certain  rental
  vehicle protections

  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 to read as follows:
  S  396-z.  Rental  vehicle  protections.  1.  For the purposes of this
section: (a) "Authorized driver" [shall mean]  MEANS: (i) the person  to
whom  the  vehicle  is  rented  if a licensed driver; (ii) such person's
spouse if licensed and at least eighteen years of age; (iii) any  person
who  operates  the  vehicle  during  an emergency situation to a medical
facility; or (iv) any licensed driver expressly  listed  on  the  rental
agreement as an authorized driver.
  (b) "Rental agreement" means any written agreement setting forth terms
and  conditions governing the RENTER'S OR ANY authorized driver's use of
a rental vehicle[, as defined in section one hundred  thirty-seven-a  of
the  vehicle and traffic law,] for a period not to exceed thirty contin-
uous days.
  (c) "Rental vehicle company" means any person or organization, or  any
subsidiary  or  affiliate,  including  a  franchisee, in the business of
providing rental vehicles to the public from locations in this state.
  (d) "Optional vehicle protection" means  a  rental  vehicle  company's
agreement not to hold an authorized driver liable for all or part of any
damage  or  loss  to  the  rented vehicle, any loss of use of the rented
vehicle, or any storage, impound, towing or administrative  charges  for
which [the] AN authorized driver may be liable. The term "optional vehi-
cle  protection"  shall encompass within its meaning other similar terms
that may be used by rental vehicle companies, such as but not limited to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10891-02-5

              

A. 8159                             2

"Collision Damage Waiver", "CDW", "Damage Waiver", "Loss Damage Waiver",
"LDW", and "Physical Damage Waiver".
  (e)  "Renter"  means  a  person  or  entity  that obtains the use of a
[private passenger] RENTAL vehicle from a rental vehicle  company  under
terms of a rental agreement.
  (f) "Consolidated facilities charge" means the allowable recovery by a
rental  vehicle  company  from  its renters of those fees, including any
taxes or fees paid on such fees, for the finance,  design,  construction
and  operation  of  consolidated  airport facilities and or the finance,
design, construction and operation of common use transportation  systems
that  move passengers between airport terminals and [those consolidated]
airport car rental facilities. The  aggregate  amount  to  be  collected
shall  not  exceed  the  reasonable  costs, as determined annually by an
independent audit paid for by the  airport  operator  or  its  governing
entity,  to  finance, design, construct and operate those facilities and
common use transportation systems. The consolidated  [facility]  FACILI-
TIES  charge  shall  apply  only to vehicle rentals occurring at vehicle
rental locations subject to the imposition of such charge by an  airport
operator or its governing entity.
  (g) "Concession recovery fee" means the allowable recovery by a rental
vehicle  company  from its renters of those fees, including any taxes or
fees paid on such fees, which an airport operator or its governing enti-
ty imposes on a rental vehicle company's applicable revenues  OR  RENTAL
TRANSACTIONS,  as  defined  and  stated  in  a concession agreement that
authorizes a rental vehicle company to operate at an airport located  in
this  state.  The  concession  recovery  fee shall apply only to vehicle
rentals occurring at vehicle rental locations subject to the  imposition
of such fee by an airport operator or its governing entity.
  (h)  "Airport fees" means [the] consolidated [facility charge] FACILI-
TIES CHARGES and/or [the] concession recovery [fee as  those  terms  are
defined herein] FEES.
  (i)  "Concession  agreement"  means  an  agreement,  permit or license
entered into between an airport operator or  its  governing  entity  and
rental  vehicle  company  setting  forth  the terms and conditions under
which the rental vehicle company may transact  its  rental  business  at
such airport.
  (j)  "Consolidated  airport facilities" means those buildings or phys-
ical structures, including, but not limited to, parking garages, parking
areas and fueling systems, constructed by or on behalf  of  the  airport
operator  or its governing entity to be jointly used by all rental vehi-
cle companies operating at such airport pursuant to a concession  agree-
ment.
  (K)  "RENTAL VEHICLE" MEANS A RENTAL VEHICLE AS DEFINED IN SECTION ONE
HUNDRED THIRTY-SEVEN-A OF THE VEHICLE AND  TRAFFIC  LAW,  BUT  EXCLUDING
FREIGHT  VANS, VEHICLES WITH A GROSS VEHICLE WEIGHT RATING EXCEEDING TEN
THOUSAND POUNDS, AND ANY VEHICLE REGISTERED AS A COMMERCIAL MOTOR  VEHI-
CLE IN ANY STATE.
  2.  (a)  A  rental  vehicle  company  shall not charge more than [nine
dollars] THE FOLLOWING AMOUNTS 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 dollars per full or  partial  twenty-four  hour  rental  day  for
optional vehicle protection]:
  (I)  NINE  DOLLARS if the manufacturer's suggested retail price of the
rental vehicle is NOT greater than [thirty] TWENTY thousand dollars;

A. 8159                             3

  (II) TWELVE DOLLARS IF THE MANUFACTURER'S SUGGESTED  RETAIL  PRICE  OF
THE  RENTAL  VEHICLE  IS  GREATER  THAN  TWENTY THOUSAND DOLLARS BUT NOT
GREATER THAN THIRTY-FIVE THOUSAND DOLLARS; AND
  (III)  FIFTEEN DOLLARS IF THE MANUFACTURER'S SUGGESTED RETAIL PRICE OF
THE RENTAL VEHICLE IS GREATER THAN THIRTY-FIVE THOUSAND DOLLARS.
  (b)  A  rental  vehicle  company  shall  not  sell  optional   vehicle
protection  unless the [authorized driver] RENTER agrees to the purchase
of such protection in writing at or prior to the time the rental  agree-
ment is executed.
  (c)   A  rental  vehicle  company  shall  not  void  optional  vehicle
protection except for one or more of the following reasons:
  (i) The damage or loss is caused intentionally or as a result of will-
ful, wanton, or reckless conduct of the driver[.];
  (ii) The damage or loss arises out of the driver's  operation  of  the
vehicle while intoxicated or impaired by the use of alcohol or drugs[.];
  (iii)  The  rental vehicle company entered into the rental transaction
based on fraudulent or materially  false  information  supplied  by  the
renter or authorized driver[.];
  (iv)  The  damage  or  loss arises out of the use of the vehicle while
engaged in the commission of a crime other than a traffic infraction[.];
  (v) The damage or loss arises out of the use of the vehicle  to  carry
persons  or property for hire, to push or tow anything, while engaged in
a speed contest, operating off road, or for driver's training[.];
  (vi) The damage or loss arises out of the use  of  the  vehicle  by  a
person other than: an authorized driver; a duly licensed parent or child
OF  THE  RENTER WHO IS over the age of eighteen thereof [who] AND perma-
nently resides in the same household; or  a  parking  valet  or  parking
garage  attendant  for  compensation and in the normal course of employ-
ment[.];
  (vii) The damage or loss arises out of the use of the vehicle  outside
of  the  continental  United  States  when  that use is not specifically
authorized by the rental agreement[.]; OR
  (viii) The RENTER, AND authorized driver  [has],  IF  DIFFERENT,  HAVE
failed  to  comply with the requirements for reporting damage or loss as
set forth in subdivision five of this section.
  (d) A customer may void optional vehicle protection at no charge with-
in twenty-four hours of purchase provided that  the  customer:  (i)  has
rented  the  vehicle for two or more days, (ii) appears in person at any
branch of the vehicle rental company  together  with  the  vehicle  that
shall  be  subject  to  inspection,  and (iii) signs a cancellation form
provided by the rental  vehicle  company.  AFTER  TWENTY-FOUR  HOURS  OF
PURCHASE,  A  CUSTOMER  MAY TERMINATE OPTIONAL VEHICLE PROTECTION AT ANY
TIME, PROVIDED THE CUSTOMER (I) APPEARS IN PERSON AT ANY BRANCH  OF  THE
VEHICLE  RENTAL  COMPANY TOGETHER WITH THE VEHICLE THAT SHALL BE SUBJECT
TO INSPECTION; (II) SIGNS A CANCELLATION FORM  PROVIDED  BY  THE  RENTAL
VEHICLE  COMPANY;  AND (III) PAYS THE OPTIONAL VEHICLE PROTECTION CHARGE
FOR ANY FULL OR PARTIAL RENTAL DAY OR PORTION OF A DAY DURING WHICH  THE
OPTIONAL VEHICLE PROTECTION WAS IN EFFECT.
  3.  Subject  to the provisions of subdivisions six, seven, and nine of
this section, a rental vehicle company may  hold  an  authorized  driver
liable  for  actual  damage  to,  or loss of, a rental vehicle, provided
that: (a) any claim for such damage shall be based on a physical  survey
and  shall  be  made  upon the return of the rental vehicle, unless SUCH
SURVEY IS PRECLUDED WHEN THE VEHICLE IS  returned  by  automation  [or],
RETURNED  after-hours  [which  precludes such survey], OR THE VEHICLE IS
RECOVERED BY THE RENTAL COMPANY, in which event, any claim must be  made

A. 8159                             4

within  ten days after return OR RECOVERY; and (b) any charge for repair
of such damage shall be limited to actual and reasonable costs and shall
be assessed and billed separately and apart from the  rental  agreement.
For  purposes  of  this  subdivision,  "returned  by automation" means a
return acknowledged by machine receipt and where there is no interaction
with rental vehicle company personnel; and "after-hours" return means  a
return  after  normal  business  hours and in which the keys [and rental
agreement] are [deposited in] RETURNED TO  the  rental  vehicle  company
[office]  VIA  A DROP BOX OR OTHER PROCESS OFFERED BY THE RENTAL VEHICLE
COMPANY.
  4. (a) Any rental vehicle company which states or permits to be stated
the rental costs of a rental vehicle in any  advertisement  shall  state
conspicuously,  in plain language and in conjunction with the advertised
rental cost of the vehicle, the daily rate of  the  applicable  optional
vehicle protection, that the rate constitutes an additional daily charge
to  the  renter,  that  the purchase of such protection is optional, and
that prospective renters should examine their  credit  card  protections
and automobile insurance policies for rental vehicle coverage.
  (b) Where a written advertisement, including all print media, contains
the statement of the rental cost of the vehicle, the disclosure required
by this section shall be printed in type no less than ten point type.
  (c) When the video presentation of a television or internet advertise-
ment by the rental vehicle company contains the written statement of the
rental  cost  of  a  vehicle,  the depiction of the cost of the optional
vehicle protection shall be clear and conspicuous.
  (d) When a radio advertisement or the audio presentation  of  a  tele-
vision  advertisement  contains  the statement of the rental cost of the
motor vehicle, the oral statement of the rental cost  shall  immediately
be  accompanied by an oral statement of the cost of the optional vehicle
protection.
  (e) When a telephone inquiry for the rental cost of a vehicle is  made
to  a  rental  vehicle company, the representative of the rental vehicle
company shall, in response to an inquiry by the caller, STATE THAT ADDI-
TIONAL OPTIONAL PRODUCTS THAT MAY  BE  OFFERED  BY  THE  RENTAL  VEHICLE
COMPANY  ARE  NOT  INCLUDED  IN THE DAILY RENTAL RATE. OPTIONAL PRODUCTS
INCLUDE, BUT  ARE  NOT  LIMITED  TO,  OPTIONAL  VEHICLE  PROTECTION  AND
OPTIONAL  LIABILITY PROTECTION. IF AN INQUIRY IS MADE REGARDING OPTIONAL
VEHICLE PROTECTION, THE AGENT SHALL provide the  cost  of  the  optional
vehicle  protection  and  state  that the purchase of such protection is
optional and that the renter's personal automobile insurance  or  credit
card may provide coverage.
  (f) Any rental vehicle company that offers optional vehicle protection
to  [an  authorized  driver]  A  RENTER  shall  [inform] DISCLOSE TO the
[authorized driver in posted signs or in  pamphlets,  written  in  plain
language,  of  all  of  the information required to be disclosed by this
section. The requirements of this paragraph shall be deemed to be satis-
fied if the rental vehicle company places] RENTER THE FOLLOWING INFORMA-
TION ON the posted signs  or  pamphlets  prominently  and  conspicuously
DISPLAYED OR OFFERED where they may be easily seen or reached by custom-
ers:
                                "NOTICES

  THE  FOLLOWING  IS  A  SUMMARY OF RENTER'S RIGHTS AND OBLIGATIONS. FOR
COMPLETE DETAILS, REFER TO THE RENTAL AGREEMENT.
  OPTIONAL VEHICLE PROTECTION (OVP): THIS CONTRACT OFFERS, FOR AN  ADDI-
TIONAL  CHARGE, OVP TO COVER YOUR FINANCIAL RESPONSIBILITY FOR DAMAGE OR

A. 8159                             5

LOSS TO THE RENTAL VEHICLE. THE PURCHASE OF OVP IS OPTIONAL AND  MAY  BE
DECLINED.    BEFORE  DECIDING  WHETHER  TO PURCHASE OVP, YOU MAY WISH TO
DETERMINE WHETHER YOUR CREDIT CARD, OR YOUR VEHICLE  INSURANCE,  AFFORDS
YOU COVERAGE FOR DAMAGE TO THE RENTAL VEHICLE, AND THE AMOUNT OF DEDUCT-
IBLE UNDER SUCH COVERAGE.
  OVP  -  WHEN  VOID:  OVP  IS VOID AND SHALL NOT APPLY TO THE FOLLOWING
SITUATIONS:
  1. IF THE DAMAGE OR LOSS IS CAUSED AS A RESULT  OF  OPERATOR'S  INTEN-
TIONAL  ACTS;  WILLFUL, WANTON, OR RECKLESS CONDUCT; OR OPERATION OF THE
VEHICLE WHILE INTOXICATED OR IMPAIRED BY THE USE OF DRUGS;
  2. THE RENTER, OR AUTHORIZED DRIVER, PROVIDES FRAUDULENT OR MATERIALLY
FALSE INFORMATION TO THE RENTAL VEHICLE COMPANY;
  3. THE DAMAGE OR LOSS ARISES OUT OF THE USE OF THE RENTAL VEHICLE:
  (A) WHILE ENGAGED IN THE COMMISSION OF A CRIME, OTHER THAN  A  TRAFFIC
INFRACTION;
  (B)  THE  USE OF THE VEHICLE TO CARRY PERSONS OR PROPERTY FOR HIRE, TO
PUSH OR TOW ANYTHING, WHILE ENGAGED IN A SPEEDING CONTEST, OPERATING OFF
ROAD, OR FOR DRIVER'S TRAINING;
  (C) BY A PERSON OTHER THAN  AN  AUTHORIZED  DRIVER,  A  DULY  LICENSED
PARENT  OR  CHILD OVER THE AGE OF 18 WHO PERMANENTLY RESIDES IN THE SAME
HOUSEHOLD, OR A PARKING VALET OR A PARKING GARAGE ATTENDANT FOR  COMPEN-
SATION AND IN THE NORMAL COURSE OF EMPLOYMENT;
  (D)  OUTSIDE  OF  THE  CONTINENTAL UNITED STATES WHEN NOT SPECIFICALLY
AUTHORIZED BY THE RENTAL AGREEMENT;
  (E) EITHER THE RENTER OR AUTHORIZED DRIVER HAS FAILED TO  COMPLY  WITH
THE REQUIREMENTS FOR REPORTING DAMAGE OR LOSS AS SET FORTH IN THE RENTAL
AGREEMENT.
  OVP  -  DAMAGE  REPORTING REQUIREMENTS: IF THE RENTAL VEHICLE SUSTAINS
DAMAGE OR LOSS,  THE  RENTER  AND  AUTHORIZED  DRIVER  ARE  REQUIRED  TO
COMPLETE  AND  RETURN  AN  INCIDENT  REPORT NOTICE TO THE RENTAL VEHICLE
COMPANY.
  OVP - RIGHT TO INSPECT VEHICLE DAMAGES: THE RENTER, AUTHORIZED DRIVER,
OR HIS/HER INSURER, HAS THE RIGHT TO REQUEST AN INSPECTION OF THE  VEHI-
CLE DAMAGES WITHIN SEVENTY-TWO HOURS OF THE RETURN OF THE VEHICLE. FAIL-
URE  OF  THE RENTER, AUTHORIZED DRIVER, OR HIS/HER INSURER TO REQUEST AN
INSPECTION WITHIN SEVENTY-TWO HOURS OF RETURN SHALL BE DEEMED  A  WAIVER
OF THE RIGHT TO INSPECT THE DAMAGED VEHICLE."
  (g)  The  following disclosure notice shall be made on the face of the
rental agreement either by stamp,  label  or  as  part  of  the  written
contract  or  on  any other written document provided to the [authorized
driver at the time such driver takes possession of the  vehicle]  RENTER
UPON EXECUTION OF SUCH CONTRACT, AND shall be set apart in boldface type
and in no smaller print than ten point type:
  "NOTICE:  This  contract  offers,  for  an additional charge, optional
vehicle protection to cover your financial responsibility for damage  or
loss  to the rental vehicle. The purchase of optional vehicle protection
is optional and may be declined. You are advised to  carefully  consider
whether to purchase this protection if you have rental vehicle collision
coverage  provided  by  your credit card or automobile insurance policy.
Before deciding whether to purchase optional vehicle protection, you may
wish to determine whether your credit card  or  your  vehicle  insurance
affords  you coverage for damage to the rental vehicle and the amount of
deductible under such coverage."
  (h) The contract shall also include in boldface type and in no smaller
print than ten point type[, in plain language, any other  conditions  or
exclusions  applicable  to  the  optional vehicle protection.   The] THE

A. 8159                             6

CONDITIONS AND EXCLUSIONS SET FORTH IN PARAGRAPH (C) OF SUBDIVISION  TWO
OF THIS SECTION. UPON THE IDENTIFICATION OF DAMAGE TO THE RENTAL VEHICLE
BY  THE rental vehicle company, SUCH RENTAL VEHICLE COMPANY shall [also]
inform the [authorized driver] RENTER of his or her right to inspect the
vehicle pursuant to paragraph (c) of subdivision five of this section.
  5.  (a) Upon IDENTIFICATION OF DAMAGE BY THE RENTAL VEHICLE COMPANY AT
THE return of the vehicle, termination of the rental contract, or within
ten days if returned by automation [or], RETURNED after-hours, OR RECOV-
ERED BY THE RENTAL VEHICLE COMPANY, the  rental  vehicle  company  shall
furnish  an  incident  report  form and a notice, pursuant to this para-
graph, of the [authorized driver's] RENTER'S obligation to  execute  and
return  to  the  rental vehicle company a complete and accurate incident
report describing any physical and/or mechanical damage. If the  vehicle
is  returned  by  automation [or], RETURNED after-hours, OR RECOVERED BY
THE RENTAL VEHICLE COMPANY, such incident report form and  notice  shall
be  mailed  by  overnight  delivery  service  or  certified mail, return
receipt requested, and another copy of such notification shall  be  sent
by regular mail. The rental vehicle company shall retain for six years a
copy of such notice and the certified mail return receipt.
  (b)  Upon  return  of  the vehicle, or within seventy-two hours if the
return is by automation or after-hours, [the] AN  authorized  driver  or
his or her insurer must notify the rental vehicle company that they wish
to  inspect the damaged vehicle. The inspection must be completed within
seven days of the return date of the vehicle.  If  [the]  AN  authorized
driver or his or her insurer does not request this inspection within the
seventy-two hour period, [the] AN authorized driver or his or her insur-
er will be deemed to have waived this right.
  (c)  If  the  [authorized driver] RENTER declines or fails to complete
and return the incident report required pursuant  to  paragraph  (a)  of
this  subdivision,  the  rental  vehicle  company  shall, no sooner than
[twenty] TEN days after the mailing of  notification  pursuant  to  such
paragraph  (a), mail another copy of the incident report together with a
letter stating that the  [authorized  driver]  RENTER  has  declined  or
otherwise  failed to complete and return the incident report. Such mail-
ing shall be by overnight delivery service  or  certified  mail,  return
receipt  requested,  and  another  copy  of such notification by regular
mail, with proof of mailing by production of a  certificate  of  mailing
from  the  post office. [Within seventy-two hours of return of the vehi-
cle, the authorized driver or his or her insurer must notify the  rental
vehicle  company  that  he or she wishes to inspect the damaged vehicle.
The inspection must be completed within seven days of the return date of
the vehicle. If the authorized driver or his or  her  insurer  does  not
request  this inspection within the seventy-two hour period, the author-
ized driver or his or her insurer will be deemed] SHOULD THE  RENTER  OR
HIS  OR  HER  INSURER  WISH  TO  INSPECT THE DAMAGED VEHICLE, THE RENTAL
COMPANY MUST RECEIVE A WRITTEN REQUEST FOR SUCH INSPECTION WITHIN SEVEN-
TY-TWO HOURS OF THE RETURN OR RECOVERY OF THE  VEHICLE.  IF  THE  RENTAL
COMPANY  DOES NOT RECEIVE SUCH TIMELY WRITTEN NOTIFICATION OF THE RENTER
OR HIS OR HER INSURER'S REQUEST TO  INSPECT  THE  DAMAGED  VEHICLE,  THE
RENTER AND HIS OR HER INSURER SHALL BE DEEMED to have waived this right.
If  the  rental  vehicle  company determines the damaged vehicle to be a
total loss and subject to salvage,  such  seventy-two  hour  period  for
notification  or waiver of the wish to inspect the damaged vehicle shall
not apply, and the [authorized driver] RENTER  or  his  or  her  insurer
shall  have  ten  business  days from the [authorized driver's] RENTER'S
receipt of notification from the  rental  vehicle  company  pursuant  to

A. 8159                             7

paragraph (a) of this subdivision to inspect the damaged vehicle, unless
the  rental  vehicle  company  agrees  to provide access to such damaged
vehicle beyond the ten business days provided herein. Within the  limits
provided  in  this  paragraph, the rental vehicle company shall identify
the repairer of, and provide access to, the damaged vehicle, in order to
verify the nature and extent  of  damages,  repairs  and  repair  costs,
and/or repair estimates.
  (d)  All notices shall be mailed to the [authorized driver's] RENTER'S
address as stated on his or her license, or other address as  designated
by him or her ON THE RENTAL AGREEMENT.
  (e) The [authorized driver] RENTER shall complete and return the inci-
dent report within ten days of the receipt of the notice.
  (f)  The  notice  required  by  this  subdivision shall be in at least
twelve point bold face type and shall contain the statement: "Failure to
completely and accurately fill out and return an incident report  within
ten  days  of  receipt  of  this notice may make the [authorized driver]
RENTER liable for damages sustained to the rental vehicle. Except  where
the  damaged  vehicle  is  determined  to be a total loss and subject to
salvage, [the] AN authorized driver or his or her insurer  has  seventy-
two  hours  from  the  return  OR  RECOVERY of the vehicle to notify the
rental vehicle company that he or she  wishes  to  inspect  the  damaged
vehicle.  The inspection must be completed within seven business days of
the return OR RECOVERY date of the vehicle.  If the  [authorized  driver
or his or her insurer does not request this] RENTAL VEHICLE COMPANY DOES
NOT RECEIVE NOTIFICATION FROM AN AUTHORIZED DRIVER OR HIS OR HER INSURER
REQUESTING  SUCH  inspection  within  the seventy-two hour period, [the]
SUCH authorized driver [or] AND his or her insurer  will  be  deemed  to
have  waived  this  right.  If the rental vehicle company determines the
damaged vehicle to be a total loss and subject to salvage,  such  seven-
ty-two hour period for notification or waiver of the wish to inspect the
damaged  vehicle  shall not apply, and such right to inspect the damaged
vehicle shall expire ten business days from EITHER the [authorized driv-
er's] RENTER'S receipt of this notice from the rental vehicle company at
the return of the vehicle, or THE RENTER'S receipt of the first  mailing
of  this  notice  in the event [of return of] the vehicle IS RETURNED by
automation [or], RETURNED after hours OR RECOVERED BY THE RENTAL VEHICLE
COMPANY. Upon request of [the] AN authorized driver or his or her insur-
er, we will provide a copy of our estimate of the costs of repairing the
damaged motor vehicle."
  (g) For purposes of this subdivision, an "incident  report"  shall  be
defined  as  a  motor  vehicle  accident  report pursuant to section six
hundred five of the vehicle and traffic law or any  similar  appropriate
form furnished by the rental vehicle company.
  (h)  Provided,  however,  if  [the] AN authorized driver is physically
incapable of completing the report, the requirements of this subdivision
shall lapse until after he or she is able to complete the report and  is
notified  that he or she must complete and return the report as required
by paragraph (b) of this subdivision.
  (i) Provided, further, THE RENTAL VEHICLE COMPANY MUST, AT LEAST twen-
ty days prior to commencing an action against  the  [authorized  driver,
the  rental  vehicle  company must prove] RENTER PROVIDE the [authorized
driver had] RENTER an additional opportunity to [provide]  COMPLETE  AND
SUBMIT  the  incident  report  by  providing a second notice, along with
another incident report, by certified mail,  return  receipt  requested,
and  another  copy of such notice and report by regular mail, with proof
of mailing by production of a certificate of mailing[; and if].  IF  the

A. 8159                             8

[authorized  driver]  RENTER  provides the rental vehicle company with a
completed incident report within fifteen days  of  the  receipt  of  the
notice, the provisions of this subdivision shall be deemed satisfied.
  6.  (a)  A rental vehicle company may hold an authorized driver liable
to the extent permitted under this chapter for  physical  or  mechanical
damage  to  the  rental  vehicle  that occurs during the time the rental
vehicle is under  the  rental  agreement;  provided,  however,  that  [a
renter]  AN AUTHORIZED DRIVER shall not be liable for [mechanical damage
unrelated to an accident, nor for] any normal wear and tear  or  [other]
mechanical  damage  that could reasonably be expected from normal use of
the vehicle[, except in instances where abuse or neglect by  the  driver
is  shown]. For the purposes of this subdivision, "actual and reasonable
costs" shall mean the repair price reduced by all discounts paid by  the
rental  vehicle  company to the repairer of the vehicle, including costs
for towing, storage, and impound fees.
  (b) The total liability of an authorized driver under paragraph (a) of
this subdivision for damage to a motor  vehicle  shall  not  exceed  the
lesser of:
  (i)  the  actual  and reasonable costs that the rental vehicle company
incurred to repair the motor vehicle or that the rental vehicle  company
would  have incurred if the motor vehicle had been repaired, which shall
reflect any discounts, price reductions, or adjustments available to the
rental vehicle company; or
  (ii) the fair market value of the motor vehicle immediately before the
damage occurred, as determined in the applicable market for  the  retail
sale of the motor vehicle, less any net disposal proceeds.
  (c) The total liability of an authorized driver under paragraph (a) of
this subdivision for loss of a motor vehicle shall not exceed reasonable
costs  incurred  by the rental vehicle company for the loss due to theft
of the rental vehicle up to its fair market value, as determined by  the
applicable  market  for  the retail sale of that vehicle if it is estab-
lished that an authorized driver failed to exercise reasonable  care  or
that  an authorized driver committed, or aided or abetted in the commis-
sion of, the theft of the rental motor vehicle.
  (d) Damages incurred by rental vehicle companies for the loss  of  use
of  a rental vehicle and related administrative fees shall not be recov-
ered [from authorized drivers] FROM THE RENTER, ANY  AUTHORIZED  DRIVER,
OR HIS OR HER INSURER.
  (e)  A  rental  vehicle  company  shall  not hold an authorized driver
liable for any amounts that the rental vehicle company recovers from any
other party.
  (f) A rental vehicle company shall not collect or attempt  to  collect
the  amount  described  in  paragraph (b) of this subdivision unless the
rental vehicle company:
  (i) obtains an estimate from a repair company or an appraiser  in  the
business of providing such appraisals on the cost of repairing the motor
vehicle;
  (ii)  provides  a  copy of the estimate and photographic evidence upon
request to the [authorized driver] PARTY who may be liable  under  para-
graph (a) of this subdivision, or the insurer of [the authorized driver]
SUCH PARTY; and
  (iii)  submits  a  copy  of the estimate with any claim to collect the
amount described in paragraph (b) of this subdivision.
  (g) [A claim against an authorized driver  resulting  from  damage  or
loss  to  a rental vehicle shall be reasonable and rationally related to
the actual loss incurred.]  A  rental  vehicle  company  shall  mitigate

A. 8159                             9

damages  where  possible  and  shall not assert or collect any claim for
physical damage which exceeds the amount authorized under paragraph  (b)
of this subdivision.
  (h) If insurance coverage exists under the [authorized driver's appli-
cable]  insurance policy OF THE RENTER OR AUTHORIZED DRIVER, AS APPLICA-
BLE, the RENTER OR authorized driver may require that the rental vehicle
company submit any claims to the RENTER OR authorized driver's insurance
carrier. Upon the request of [an] A RENTER  OR  authorized  driver,  the
rental  vehicle company shall submit any claims to [the authorized driv-
er's] SUCH PERSON'S insurance carrier and shall not make any written  or
oral  representations  to the contrary, nor shall it make any written or
oral representations that it will not  negotiate  with  [the  authorized
driver's] SUCH insurance carrier.
  7.  (a) No rental vehicle company shall require any security, deposit,
or charge for damage in any form, by credit card  or  otherwise,  during
the term of the rental agreement or pending resolution of any dispute.
  (b)  [No  rental vehicle company shall require a deposit or an advance
charge against the credit card of an authorized driver, in any form, for
damages to  a  rental  vehicle  which  is  in  the  authorized  driver's
possession or control.
  (c)] No rental vehicle company shall require any payment to the rental
vehicle  company,  upon  [the authorized driver's] return OR RECOVERY of
the vehicle in a damaged condition, until after the cost of  the  damage
to  the  vehicle  and liability therefor is agreed to between the rental
vehicle company and the [authorized driver] RENTER OR HIS OR HER  INSUR-
ER,  or  is  determined  pursuant to law OR CONTRACT; provided, however,
that a rental vehicle company is not precluded from presenting  a  claim
to the RENTER OR AN authorized driver, AND APPLICABLE INSURANCE CARRIERS
pursuant to other provisions of this section.
  [(d)] (C) Causes of action concerning the existence of, liability for,
and  extent  and cost of damage to the vehicle shall, where appropriate,
be commenced by a rental vehicle company in a commercial claims part  in
accordance  with  the  limitations  and  jurisdiction of the appropriate
court act.
  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
obtain a rental vehicle. Provided, however,  a  rental  vehicle  company
shall  be  permitted  to  separately  quote  and  charge airport fees as
defined herein, 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.
  9. No rental vehicle company shall hold any [authorized driver] RENTER
liable  for  any damage to, or loss of, a rental vehicle, as provided by
this section, unless the rental vehicle company  prominently  discloses,
on  the  rental  agreement, in at least ten point bold face display, the
nature and extent of such liability and such driver's rights and respon-
sibilities [under] PURSUANT TO PARAGRAPH (C) OF SUBDIVISION TWO OF  THIS
SECTION AND PARAGRAPH (G) OF SUBDIVISION FOUR OF this section.
  10.  (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

A. 8159                            10

state separately and charge, where applicable, airport fees as such term
is defined herein.
  (b)  In  addition  to the rental rate, taxes, applicable airport fees,
and mileage charge, if any, a rental vehicle company may charge  for  an
item  or  service provided in connection with a particular rental trans-
action 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.
  (c) A rental vehicle company shall make available detachable or remov-
able  seats  which  meet  the requirements of subdivision one of section
twelve hundred twenty-nine-c of the vehicle and traffic law.
  (d) Fees for additional authorized drivers shall  not  exceed  [three]
TEN dollars per additional driver per rental day.
  (e)  A  rental  vehicle company shall furnish with each rental vehicle
pursuant to an agreement either an owner's manual  or  a  diagram  which
shall  indicate the location and plain language description of the func-
tions necessary for the safe and  efficient  operation  of  the  vehicle
which shall at a minimum include:
  (i) Headlights;
  (ii) Brakes and emergency brake;
  (iii) Turn signal indicators;
  (iv) Hazard lights;
  (v) Windshield wipers and washers;
  (vi) Horn;
  (vii) Cruise control;
  (viii) Heat control system including defrost systems;
  (ix) Car locking systems; and
  (x)  Spare  tire  and car jack, tire wrench, and jacking locations, IF
APPLICABLE. In the event the rental vehicle company  elects  to  include
the  owner's  manual  pursuant to this section, if the owner's manual is
not returned with the vehicle, the renter shall be liable to the  rental
vehicle  company  for  the actual replacement cost of the owner's manual
plus an administrative fee.
  11. Any clause or provision of a rental  agreement  inconsistent  with
the  provisions  of  this section shall be deemed void as against public
policy.
  12. Any rental vehicle company found by a court of competent jurisdic-
tion to have violated a provision of this section shall be subject to  a
penalty of not less than five hundred dollars nor more than one thousand
dollars for each violation.
  13. (a) Whenever there shall be a violation of this section, an appli-
cation  may be made by the attorney general in the name of the people of
the state of New York to a court of competent jurisdiction by a  special
proceeding for the imposition of a fine or the issuance of an injunction
against any violation of this section, upon notice to the rental vehicle
company  of  not less than five days, to enjoin and restrain the contin-
uance of such violations.
  (b) If the court finds that the defendant has, in fact, violated  this
section,  an  injunction  may  be  issued  by  such court, enjoining and
restraining any further violation,  without  requiring  proof  that  any
person has, in fact, been injured or damaged thereby.

A. 8159                            11

  (c)  In  any  proceeding  pursuant  to this subdivision, the court may
direct restitution and  make  allowances  to  the  attorney  general  as
provided in section sixty-three of the executive law.
  (d)  In  support  of any application pursuant to this subdivision, the
attorney general is authorized to take proof, determine  relevant  facts
and issue subpoenae in accordance with the civil practice law and rules.
  13-a.  A  rental  vehicle  company  shall not use information from any
global positioning system technology to determine or impose  any  costs,
fees,  charges,  or  penalties on an authorized driver for such driver's
use of a rental vehicle. The use of global positioning technology  shall
not  limit  the right of a rental vehicle company to impose costs, fees,
charges, or penalties to recover a vehicle that is lost,  misplaced,  or
stolen.  The  provisions  of  this subdivision shall not be construed to
modify or supersede any other provision of law.
  14. An authorized driver shall provide notice to  the  rental  vehicle
company or law enforcement agency within twelve hours of learning of the
theft of the rental vehicle.
  15.  In  accordance  with  any  applicable  federal law or rule, every
rental vehicle company shall display  the  following  in  a  conspicuous
location,  with  lettering  that  is  legible and that shall be at least
three-quarters of an inch boldface type:
  "NOTICE: New York State  Law  prohibits  the  following  practices  by
rental  vehicle  companies  based upon race, color, ethnic origin, reli-
gion, disability, sex, marital status, or age: (1) refusal to rent;  (2)
the  imposition  of  any  additional charge (except in certain instances
where the renter is under the age of 25). In addition,  it  is  unlawful
for any rental vehicle company to refuse to rent a vehicle to any person
solely on the requirement of ownership of a credit card."
  16. ANY NOTICE OR DISCLOSURE REQUIRED TO BE PROVIDED, DELIVERED, POST-
ED,  OR OTHERWISE MADE AVAILABLE BY A RENTAL VEHICLE COMPANY PURSUANT TO
THIS ARTICLE SHALL ALSO BE DEEMED TIMELY AND EFFECTIVELY MADE WHERE SUCH
NOTICE OR DISCLOSURE IS (I) PROVIDED OR DELIVERED ELECTRONICALLY  AT  OR
BEFORE  THE TIME REQUIRED, OR (II) INCLUDED IN A MEMBER OR MASTER AGREE-
MENT AT OR BEFORE THE TIME REQUIRED. FOR THE PURPOSES OF THIS ARTICLE, A
MASTER OR MEMBER AGREEMENT SHALL INCLUDE, BUT NOT  BE  LIMITED  TO,  ANY
SERVICE  OFFERED  BY A COMPANY THAT PERMITS CUSTOMERS TO BYPASS A RETAIL
SERVICE LOCATION AND OBTAIN A PRODUCT OR  SERVICE  DIRECTLY.  ELECTRONIC
ACCEPTANCE SHALL HEREBY BE DEEMED A VALID FORM OF ACCEPTANCE OF ANY SUCH
NOTICE  OR  DISCLOSURE, AND ACCEPTANCE SHALL REMAIN EFFECTIVE UNTIL SUCH
TIME AS ACCEPTANCE IS AFFIRMATIVELY WITHDRAWN. NOTICES  AND  DISCLOSURES
MADE  PURSUANT TO THIS SUBDIVISION SHALL BE EXEMPT FROM ANY PLACEMENT OR
STYLISTIC DISPLAY REQUIREMENTS, INCLUDING BUT NOT LIMITED  TO  LOCATION,
FONT  SIZE,  TYPESET, OR OTHER SPECIFICALLY-STATED DESCRIPTION; PROVIDED
SUCH DISCLOSURES ARE GENERALLY CONSISTENT IN APPEARANCE WITH THE ENTIRE-
TY OF THE COMMUNICATION IN WHICH THEY ARE CONTAINED.
  S 2. This act shall take effect immediately; provided,  however,  that
the  amendments  to  section  396-z of the general business law, made by
section one of this act, shall not affect the expiration  and  reversion
of  certain  provisions of such section pursuant to section 4 of chapter
656 of the laws of 2002, as amended, and shall be deemed repealed there-
with.