S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5057
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 6, 2017
                                ___________
 
 Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
   Committee on Consumer Affairs and Protection
 
 AN ACT to amend the general business law,  in  relation  to  prohibiting
   rental  car  companies and used car companies from renting, selling or
   leasing vehicles that have been recalled due to safety risks

   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 10-a to read as follows:
   10-A.  (A) EXCEPT AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION, IT
 SHALL BE UNLAWFUL FOR A RENTAL COMPANY TO RENT, LEASE OR SELL A  COVERED
 VEHICLE  ON  OR  AFTER  THE EARLIER OF THE DATE OF RECEIPT BY THE RENTAL
 COMPANY OF A NOTIFICATION ORDERED BY  THE  SECRETARY  OF  TRANSPORTATION
 UNDER  SUBSECTION  (B)(2)(A) OF SECTION 30118 OF TITLE 49, UNITED STATES
 CODE, OR THE DATE ON  WHICH  A  MANUFACTURER  GIVES  NOTICE  TO  OWNERS,
 PURCHASERS,  AND  DEALERS  THAT  THE  COVERED  VEHICLE CONTAINS A DEFECT
 RELATED TO MOTOR VEHICLE SAFETY OR DOES NOT COMPLY  WITH  AN  APPLICABLE
 MOTOR  VEHICLE  SAFETY  STANDARD, UNLESS THE DEFECT OR NONCOMPLIANCE HAS
 BEEN REMEDIED PRIOR TO RENTAL, LEASE OR SALE.
   (B) FOR PURPOSES OF PARAGRAPH (A) OF THIS SUBDIVISION, A RENTAL COMPA-
 NY SHALL BE CONSIDERED TO HAVE RECEIVED NOTIFICATION FIVE BUSINESS  DAYS
 FOLLOWING THE DATE ON WHICH SUCH NOTIFICATION WAS MAILED.
   (C) IF, DURING A RENTAL OR LEASE PERIOD OF A COVERED VEHICLE, A RENTAL
 COMPANY RECEIVES NOTIFICATION PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVI-
 SION THAT THE COVERED VEHICLE CONTAINS A DEFECT RELATED TO MOTOR VEHICLE
 SAFETY OR DOES NOT COMPLY WITH AN APPLICABLE MOTOR VEHICLE SAFETY STAND-
 ARD,  THE  RENTAL  COMPANY  SHALL IMMEDIATELY: (I) CONTACT THE RENTER OR
 LESSEE AND ANY AUTHORIZED DRIVER FROM WHOM THE RENTAL COMPANY HAS  IMME-
 DIATE CONTACT INFORMATION TO INFORM SUCH RENTER OR LESSEE AND AUTHORIZED
 DRIVER  OF  THE  DEFECT OR NONCOMPLIANCE; AND (II) OFFER TO PROVIDE SUCH
 RENTER, LESSEE, OR AUTHORIZED DRIVER A COMPARABLE  ALTERNATIVE  VEHICLE,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05412-01-7

 A. 5057                             2
 
 AT NO ADDITIONAL COST TO THE RENTER, LESSEE, OR AUTHORIZED DRIVER, UNTIL
 THE DEFECT OR NONCOMPLIANCE HAS BEEN REMEDIED.
   §  2. Section 396-z of the general business law is amended by adding a
 new subdivision 9-a to read as follows:
   9-A. (A) EXCEPT AS PROVIDED IN PARAGRAPH (B) OF THIS  SUBDIVISION,  IT
 SHALL  BE UNLAWFUL FOR A RENTAL COMPANY TO RENT, LEASE OR SELL A COVERED
 VEHICLE ON OR AFTER THE EARLIER OF THE DATE OF  RECEIPT  BY  THE  RENTAL
 COMPANY  OF  A  NOTIFICATION  ORDERED BY THE SECRETARY OF TRANSPORTATION
 UNDER SUBSECTION (B)(2)(A) OF SECTION 30118 OF TITLE 49,  UNITED  STATES
 CODE,  OR  THE  DATE  ON  WHICH  A  MANUFACTURER GIVES NOTICE TO OWNERS,
 PURCHASERS, AND DEALERS THAT  THE  COVERED  VEHICLE  CONTAINS  A  DEFECT
 RELATED  TO  MOTOR  VEHICLE SAFETY OR DOES NOT COMPLY WITH AN APPLICABLE
 MOTOR VEHICLE SAFETY STANDARD, UNLESS THE DEFECT  OR  NONCOMPLIANCE  HAS
 BEEN REMEDIED PRIOR TO RENTAL, LEASE OR SALE.
   (B) FOR PURPOSES OF PARAGRAPH (A) OF THIS SUBDIVISION, A RENTAL COMPA-
 NY  SHALL BE CONSIDERED TO HAVE RECEIVED NOTIFICATION FIVE BUSINESS DAYS
 FOLLOWING THE DATE ON WHICH SUCH NOTIFICATION WAS MAILED.
   (C) IF, DURING A RENTAL OR LEASE PERIOD OF A COVERED VEHICLE, A RENTAL
 COMPANY RECEIVES NOTIFICATION PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVI-
 SION THAT THE COVERED VEHICLE CONTAINS A DEFECT RELATED TO MOTOR VEHICLE
 SAFETY OR DOES NOT COMPLY WITH AN APPLICABLE MOTOR VEHICLE SAFETY STAND-
 ARD, THE RENTAL COMPANY SHALL IMMEDIATELY: (I)  CONTACT  THE  RENTER  OR
 LESSEE AND ANY AUTHORIZED DRIVER FOR WHOM THE RENTAL COMPANY HAS IMMEDI-
 ATE  CONTACT  INFORMATION TO INFORM SUCH RENTER OR LESSEE AND AUTHORIZED
 DRIVER OF THE DEFECT OR NONCOMPLIANCE; AND (II) OFFER  TO  PROVIDE  SUCH
 RENTER,  LESSEE,  OR AUTHORIZED DRIVER A COMPARABLE ALTERNATIVE VEHICLE,
 AT NO ADDITIONAL COST TO THE RENTER, LESSEE, OR AUTHORIZED DRIVER, UNTIL
 THE DEFECT OR NONCOMPLIANCE HAS BEEN REMEDIED.
   § 3. Section 198-b of the general business law is amended by adding  a
 new subdivision h to read as follows:
   H.  PROHIBITIONS  ON  CERTAIN SALES OR LEASES. NO DEALER SHALL SELL OR
 LEASE A USED MOTOR VEHICLE THAT HAS BEEN RECALLED DUE TO SAFETY RISKS.
   § 4. 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 the provisions of section two of  this  act
 shall take effect.