NY State Senate Bill 2015-S1547A

Senate Bill S1547A

2015-2016 Legislative Session

Relates to prohibiting the installation of a starter interrupt device on certain motor vehicles

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 06, 2016	referred to consumer protection
May 12, 2015	print number 1547a
May 12, 2015	amend and recommit to consumer protection
Jan 13, 2015	referred to consumer protection

Bill Amendments

Original

A (Active)

2015-S1547 - Details

See Assembly Version of this Bill:: A8210
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add Art 11-C §§199-o - 199-t, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7946
2017-2018: S2780, A3116
2019-2020: S758, A3897

2015-S1547 - Summary

Relates to prohibiting the installation of a starter interrupt device on certain motor vehicles.

2015-S1547 - Sponsor Memo

                                BILL NUMBER:S1547

TITLE OF BILL:

An act to amend the general business law, in relation to the
prohibition of the installation of starter interrupt devices on
certain new and used motor vehicles

PURPOSE OR GENERAL IDEA OF BILL:

To prohibit the use of starter interrupt devices by lenders as a
condition of qualifying for an auto loan.

SUMMARY OF SPECIFIC PROVISIONS:

Section one amends the general business law by adding section a new
article 11-C which prohibits the use of starter interrupt devices by
dealers or lenders on new or used motor vehicles, provides for an
exemption for certain rental car companies, establishes a fine of up
to $5,000 for knowing violation, assigns promulgation of rules and
regulations necessary to implement this provision to the Commissioner
of the Department of Motor Vehicles in conjunction with the Attorney
General and places enforcement of this provision with the Attorney
General.

Section two sets the effective date.

JUSTIFICATION:

A recent explosion in the Subprime auto lending market has some of the
same banks and financial institutions responsible for the catastrophic
collapse of the mortgage industry in 2008, and consequently the U.S.
and global economies, cashing in big once again. And while these high
risk, high-interest loans are on automobiles and not homes,
unfortunately, the victims are often low-income consumers still trying
to recover from the recent economic recession.

In its recently published investigation into lenders' unscrupulous
practices within the booming subprime auto lending market, The New
York Times found that "roughly 25 percent of all new auto loans made
last year were subprime (interest rates on some of the loans exceeded
29 percent)and the volume of subprime auto loans reached more than
$145 billion in the first three months of this year."

A growing number of these predatory lenders are now equipping cars
with a starter interrupt device as a condition of the loan. This new
technology allows lenders to remotely disable the ignition in order to
prevent a car from starting within minutes of a payment being late.
This reckless practice can threaten public safety and result in
serious consequences.  Instances of parents being unable to rush
seriously ill children to the hospital due to lenders activating the
devices are becoming increasingly more common.

Additionally, many of these devices have GPS technology which allow
the lenders to track the cars' location and movements with very few
regulations to protect individual privacy and public safety. This
legislation specifically bans the practice of installing a "starter


interrupt" device as a condition for new or used car purchases, to
remedy this gap in the law and further protect consumers.

PRIOR LEGISLATIVE HISTORY:

2013-14: S.7946 Referred to Rules

FISCAL IMPLICATIONS:

None

EFFECTIVE DATE:

This act shall take effect on the one hundred eightieth day after it
shall have become a law.

2015-S1547 - Bill Text download pdf

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

                                  1547

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 13, 2015
                               ___________

Introduced  by  Sen. KENNEDY -- 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 the prohibition
  of the installation of starter interrupt devices on  certain  new  and
  used motor vehicles

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new article
11-C to read as follows:
                               ARTICLE 11-C
            STARTER INTERRUPT DEVICE INSTALLATION PROHIBITED
SECTION 199-O. DEFINITIONS.
        199-P. VIOLATIONS.
        199-Q. EXCEPTIONS.
        199-R. CIVIL PENALTY.
        199-S. RULES AND REGULATIONS.
        199-T. ENFORCEMENT BY ATTORNEY GENERAL.
  S 199-O. DEFINITIONS. THE FOLLOWING TERMS WHEN USED IN  THIS  ARTICLE,
SHALL HAVE THE FOLLOWING MEANINGS:
  1.  "DEALER" AS DEFINED IN SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE
AND TRAFFIC LAW.
  2. "MOTOR VEHICLE" AS DEFINED IN SECTION ONE  HUNDRED  TWENTY-FIVE  OF
THE  VEHICLE  AND TRAFFIC LAW AND EXCLUDING CLASS A, B AND C LIMITED USE
MOTORCYCLES AS DEFINED IN SECTION ONE HUNDRED TWENTY-ONE-B OF THE  VEHI-
CLE AND TRAFFIC LAW.
  3. "STARTER INTERRUPT DEVICE" SHALL MEAN A DEVICE WHICH TRACKS A MOTOR
VEHICLE  PURCHASER'S OR LESSEE'S SCHEDULED PAYMENTS UNDER A FINANCING OR
LEASE AGREEMENT AND PREVENTS THE VEHICLE FROM STARTING  IF  A  SCHEDULED
PAYMENT  IS  NOT RECEIVED BY ITS DUE DATE OR WITHIN ANY APPLICABLE GRACE
PERIOD. SUCH DEVICE TYPICALLY REQUIRES THE CONSUMER TO ENTER A CODE  FOR
EACH  PAYMENT  PERIOD  IN  ORDER TO CONTINUE OPERATING THE VEHICLE.  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03253-01-5

S. 1547                             2

CONSUMER RECEIVES THE PAYMENT CODES  THAT  WILL  ALLOW  THE  VEHICLE  TO
CONTINUE  TO  START  FROM  THE  CREDITOR  WHEN PAYMENT IS TENDERED. SUCH
DEVICE MAY INCLUDE A GLOBAL POSITIONING SYSTEM (GPS) TRACKING  CAPABILI-
TY.
  S  199-P.  VIOLATIONS.  NO  NEW OR USED MOTOR VEHICLE DEALER OR LENDER
SHALL BE PERMITTED TO INSTALL A STARTER  INTERRUPT  DEVICE  ON  A  MOTOR
VEHICLE PURCHASER'S OR LESSEE'S MOTOR VEHICLE.
  S  199-Q.  EXCEPTIONS.  THE PROVISIONS THIS ARTICLE SHALL NOT APPLY TO
ANY RENTAL VEHICLE COMPANY AS DEFINED IN PARAGRAPH  (C)  OF  SUBDIVISION
ONE OF SECTION THREE HUNDRED NINETY-SIX-Z OF THIS CHAPTER.
  S  199-R.  CIVIL PENALTY. A KNOWING VIOLATION OF THIS SECTION SHALL BE
PUNISHABLE BY A FINE NOT TO EXCEED FIVE THOUSAND DOLLARS.
  S 199-S. RULES AND REGULATIONS. THE COMMISSIONER OF THE DEPARTMENT  OF
MOTOR  VEHICLES, IN CONJUNCTION WITH THE ATTORNEY GENERAL, SHALL PROMUL-
GATE SUCH RULES AND REGULATIONS AS SHALL BE NECESSARY TO  IMPLEMENT  THE
PROVISIONS OF THIS ARTICLE.
  S  199-T.  ENFORCEMENT  BY ATTORNEY GENERAL. WHENEVER THERE SHALL BE A
VIOLATION OF THIS ARTICLE, AN APPLICATION 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 AND THE ISSUANCE OF AN INJUNCTION AGAINST  ANY  VIOLATION  OF  THIS
ARTICLE, UPON NOTICE TO THE RENTAL VEHICLE COMPANY OF NOT LESS THAN FIVE
DAYS,  TO ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH VIOLATIONS; AND IF
IT SHALL APPEAR TO THE SATISFACTION OF THE COURT  OR  JUSTICE  THAT  THE
DEFENDANT  HAS,  IN  FACT,  VIOLATED  THIS ARTICLE, AN INJUNCTION MAY BE
ISSUED BY SUCH COURT OR JUSTICE, ENJOINING AND RESTRAINING  ANY  FURTHER
VIOLATION,  WITHOUT  REQUIRING  PROOF THAT ANY PERSON HAS, IN FACT, BEEN
INJURED OR DAMAGED THEREBY. IN ANY SUCH PROCEEDING, THE COURT  MAY  MAKE
ALLOWANCES  TO  THE  ATTORNEY  GENERAL  AS  PROVIDED IN PARAGRAPH SIX OF
SUBDIVISION (A) OF SECTION EIGHTY-THREE HUNDRED THREE OF THE CIVIL PRAC-
TICE LAW AND RULES, AND DIRECT RESTITUTION.  WHENEVER  THE  COURT  SHALL
DETERMINE THAT A VIOLATION OF THIS ARTICLE HAS OCCURRED, THE COURT SHALL
IMPOSE  A  CIVIL PENALTY OF NOT MORE THAN FIVE THOUSAND DOLLARS FOR EACH
VIOLATION. IN CONNECTION WITH ANY SUCH PROPOSED APPLICATION, THE  ATTOR-
NEY  GENERAL IS AUTHORIZED TO TAKE PROOF AND MAKE A DETERMINATION OF THE
RELEVANT FACT AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL  PRAC-
TICE LAW AND RULES.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

2015-S1547A (ACTIVE) - Details

See Assembly Version of this Bill:: A8210
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add Art 11-C §§199-o - 199-t, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7946
2017-2018: S2780, A3116
2019-2020: S758, A3897

2015-S1547A (ACTIVE) - Summary

Relates to prohibiting the installation of a starter interrupt device on certain motor vehicles.

2015-S1547A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S1547A

TITLE OF BILL:

An act to amend the general business law, in relation to the prohibition
of the installation of starter interrupt devices on certain new and used
motor vehicles

PURPOSE OR GENERAL IDEA OF BILL:

To prohibit the use of starter interrupt devices by lenders as a condi-
tion of qualifying for an auto loan.

SUMMARY OF SPECIFIC PROVISIONS:

Section one amends the general business law by adding section a new
article 11-C which prohibits the use of starter interrupt devices by
dealers or lenders on new or used motor vehicles, provides for an
exemption for certain rental car companies, establishes a fine of up to
$5,000 for knowing violation, assigns promulgation of rules and regu-
lations necessary to implement this provision to the Commissioner of the
Department of Motor Vehicles in conjunction with the Attorney General
and places enforcement of this provision with the Attorney General.

Section two sets the effective date.

JUSTIFICATION:

A recent explosion in the Subprime auto lending market has some of the
same banks and financial institutions responsible for the catastrophic
collapse of the mortgage industry in 2008, and consequently the U.S. and
global economies, cashing in big once again. And while these high-risk,
high-interest loans are on automobiles and not homes, unfortunately, the
victims are often low-income consumers still trying to recover from the
recent economic recession.

In its recently published investigation into lenders' unscrupulous prac-
tices within the booming subprime auto lending market, The New York
Times found that "roughly 25 percent of all new auto loans made last
year were subprime (interest rates on some of the loans exceeded 29
percent) and the volume of subprime auto loans reached more than $145
billion in the first three months of this year."

A growing number of these predatory lenders are now equipping cars with
a starter interrupt device as a condition of the loan. This new technol-
ogy allows lenders to remotely disable the ignition in order to prevent
a car from starting within minutes of a payment being late. This reck-
less practice can threaten public safety and result in serious conse-
quences. Instances of parents being unable to rush seriously ill chil-
dren to the hospital due to lenders activating the devices are becoming
increasingly more common.

This legislation specifically bans the practice of installing a "starter
interrupt" device as a condition for new or used car purchases, to reme-
dy this gap in the law and further protect consumers. The ban on "start-
er interrupt" devices does not apply to ignition interlock devices which
have been mandated by court order to prevent driving under the influence
or reporting attempted driving under the influence, nor any aftermarket
consumer installed or manufacturer installed remote disabling device
used for the sole purpose of theft prevention. GPS tracking devices
which are separate from and independent of starter interrupt devices
shall be exempt from this prohibition.

PRIOR LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

None

EFFECTIVE DATE:

This act shall take effect on the one hundred eightieth day after it
shall have become a law.

2015-S1547A (ACTIVE) - Bill Text download pdf

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

                                 1547--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 13, 2015
                               ___________

Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee

AN ACT to amend the general business law, in relation to the prohibition
  of the installation of starter interrupt devices on  certain  new  and
  used motor vehicles

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new article
11-C to read as follows:
                               ARTICLE 11-C
            STARTER INTERRUPT DEVICE INSTALLATION PROHIBITED
SECTION 199-O. DEFINITIONS.
        199-P. VIOLATIONS.
        199-Q. EXCEPTIONS.
        199-R. CIVIL PENALTY.
        199-S. RULES AND REGULATIONS.
        199-T. ENFORCEMENT BY ATTORNEY GENERAL.
  S 199-O. DEFINITIONS. THE FOLLOWING TERMS WHEN USED IN  THIS  ARTICLE,
SHALL HAVE THE FOLLOWING MEANINGS:
  1.  "DEALER" AS DEFINED IN SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE
AND TRAFFIC LAW.
  2. "MOTOR VEHICLE" AS DEFINED IN SECTION ONE  HUNDRED  TWENTY-FIVE  OF
THE  VEHICLE  AND TRAFFIC LAW AND EXCLUDING CLASS A, B AND C LIMITED USE
MOTORCYCLES AS DEFINED IN SECTION ONE HUNDRED TWENTY-ONE-B OF THE  VEHI-
CLE AND TRAFFIC LAW.
  3.  (A)  "STARTER INTERRUPT DEVICE" SHALL MEAN A DEVICE WHICH TRACKS A
MOTOR VEHICLE PURCHASER'S OR LESSEE'S SCHEDULED PAYMENTS UNDER A FINANC-
ING OR LEASE AGREEMENT AND PREVENTS THE VEHICLE FROM STARTING IF A SCHE-
DULED PAYMENT IS NOT RECEIVED BY ITS DUE DATE OR WITHIN  ANY  APPLICABLE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03253-04-5

S. 1547--A                          2

GRACE  PERIOD.  SUCH  DEVICE  TYPICALLY REQUIRES THE CONSUMER TO ENTER A
CODE FOR EACH PAYMENT PERIOD IN ORDER TO CONTINUE OPERATING THE VEHICLE.
THE CONSUMER RECEIVES THE PAYMENT CODES THAT WILL ALLOW THE  VEHICLE  TO
CONTINUE  TO  START  FROM  THE  CREDITOR  WHEN PAYMENT IS TENDERED. SUCH
DEVICE MAY INCLUDE A GLOBAL POSITIONING SYSTEM (GPS) TRACKING  CAPABILI-
TY.  GPS  TRACKING  DEVICES  THAT ARE SEPARATE FROM, AND INDEPENDENT OF,
STARTER INTERRUPT DEVICES SHALL BE EXEMPT FROM THIS PROHIBITION.
  (B) "STARTER INTERRUPT DEVICE" SHALL NOT MEAN ANY  IGNITION  INTERLOCK
DEVICE  WHOSE  INSTALLATION  AND  USE IS MANDATED BY COURT ORDER, OR ANY
IGNITION INTERLOCK DEVICE WHOSE SOLE PURPOSE IS TO PREVENT DRIVING UNDER
THE INFLUENCE OR REPORTING ATTEMPTED DRIVING UNDER THE INFLUENCE. "STAR-
TER INTERRUPT DEVICE" SHALL NOT MEAN ANY AFTER MARKET CONSUMER-INSTALLED
OR MANUFACTURER-INSTALLED REMOTE DISABLING DEVICE, PROVIDED  THAT  THESE
DEVICES  SHALL  ONLY  BE USED IN THE EVENT OF THEFT BY A THIRD PARTY AND
NOT FOR PURPOSES OF REPOSSESSION BY A LENDER OR SELLER. BUYERS  MAY  NOT
CONSENT TO USE THESE DEVICES FOR THE PURPOSES OF REPOSSESSION.
  S  199-P.  VIOLATIONS.  NO  NEW OR USED MOTOR VEHICLE DEALER OR LENDER
SHALL BE PERMITTED TO INSTALL A STARTER  INTERRUPT  DEVICE  ON  A  MOTOR
VEHICLE PURCHASER'S OR LESSEE'S MOTOR VEHICLE.
  S 199-Q. EXCEPTIONS. THE PROVISIONS OF THIS ARTICLE SHALL NOT APPLY TO
ANY  RENTAL  VEHICLE  COMPANY AS DEFINED IN PARAGRAPH (C) OF SUBDIVISION
ONE OF SECTION THREE HUNDRED NINETY-SIX-Z OF THIS CHAPTER.
  S 199-R. CIVIL PENALTY. A KNOWING VIOLATION OF THIS SECTION  SHALL  BE
PUNISHABLE BY A FINE NOT TO EXCEED FIVE THOUSAND DOLLARS.
  S  199-S. RULES AND REGULATIONS. THE COMMISSIONER OF THE DEPARTMENT OF
MOTOR VEHICLES, IN CONJUNCTION WITH THE ATTORNEY GENERAL, SHALL  PROMUL-
GATE  SUCH  RULES AND REGULATIONS AS SHALL BE NECESSARY TO IMPLEMENT THE
PROVISIONS OF THIS ARTICLE.
  S 199-T. ENFORCEMENT BY ATTORNEY GENERAL. WHENEVER THERE  SHALL  BE  A
VIOLATION  OF  THIS  ARTICLE, AN APPLICATION 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  AND  THE  ISSUANCE  OF AN INJUNCTION AGAINST ANY VIOLATION OF THIS
ARTICLE, UPON NOTICE TO THE DEFENDANT OF NOT LESS  THAN  FIVE  DAYS,  TO
ENJOIN  AND RESTRAIN THE CONTINUANCE OF SUCH VIOLATIONS; AND IF IT SHALL
APPEAR TO THE SATISFACTION OF THE COURT OR JUSTICE  THAT  THE  DEFENDANT
HAS, IN FACT, VIOLATED THIS ARTICLE, AN INJUNCTION MAY BE ISSUED BY SUCH
COURT OR JUSTICE, ENJOINING AND RESTRAINING ANY FURTHER VIOLATION, WITH-
OUT  REQUIRING  PROOF  THAT  ANY  PERSON  HAS,  IN FACT, BEEN INJURED OR
DAMAGED THEREBY. IN ANY SUCH PROCEEDING, THE COURT MAY  MAKE  ALLOWANCES
TO  THE ATTORNEY GENERAL AS PROVIDED IN PARAGRAPH SIX OF SUBDIVISION (A)
OF SECTION EIGHTY-THREE HUNDRED THREE OF  THE  CIVIL  PRACTICE  LAW  AND
RULES, AND DIRECT RESTITUTION. WHENEVER THE COURT SHALL DETERMINE THAT A
VIOLATION  OF  THIS ARTICLE HAS OCCURRED, THE COURT SHALL IMPOSE A CIVIL
PENALTY OF NOT MORE THAN FIVE THOUSAND DOLLARS FOR  EACH  VIOLATION.  IN
CONNECTION  WITH  ANY SUCH PROPOSED APPLICATION, THE ATTORNEY GENERAL IS
AUTHORIZED TO TAKE PROOF AND MAKE A DETERMINATION OF THE  RELEVANT  FACT
AND  TO  ISSUE  SUBPOENAS  IN ACCORDANCE WITH THE CIVIL PRACTICE LAW AND
RULES.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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