S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    50
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced by M. of A. BUCHWALD, DINOWITZ, WEPRIN, GOTTFRIED, ZEBROWSKI,
   JOYNER  --  Multi-Sponsored  by -- M. of A. COOK, GLICK, PERRY -- read
   once and referred to the Committee on Consumer Affairs and Protection
 
 AN ACT to amend the general business  law,  in  relation  to  automobile
   manufacturers' warranty adjustment programs
 
   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 section
 198-d to read as follows:
   § 198-D. AUTOMOBILE MANUFACTURERS' WARRANTY ADJUSTMENT  PROGRAMS.  (A)
 FOR THE PURPOSES OF THIS SECTION:
   (1) "CONSUMER" MEANS THE PURCHASER, OTHER THAN FOR PURPOSES OF RESALE,
 OF A MOTOR VEHICLE, A LESSEE OF A MOTOR VEHICLE, ANY PERSON TO WHOM SUCH
 MOTOR  VEHICLE IS TRANSFERRED DURING THE DURATION OF AN EXPRESS WARRANTY
 APPLICABLE TO SUCH MOTOR VEHICLE AND ANY PERSON ENTITLED BY THE TERMS OF
 SUCH WARRANTY TO ENFORCE THE OBLIGATIONS OF THE WARRANTY.
   (2) "DEALER" MEANS ANY PERSON SELLING OR AGREEING TO SELL, LEASING  OR
 AGREEING  TO  LEASE  IN  THIS  STATE  ONE OR MORE MOTOR VEHICLES UNDER A
 RETAIL AGREEMENT WITH A MANUFACTURER, MANUFACTURER  BRANCH,  DISTRIBUTOR
 OR DISTRIBUTOR BRANCH, OR AGENT OF ANY OF THEM.
   (3) "LESSEE" MEANS ANY CONSUMER WHO LEASES A MOTOR VEHICLE PURSUANT TO
 A  WRITTEN  LEASE  WHICH  PROVIDES  THAT  THE  LESSEE IS RESPONSIBLE FOR
 REPAIRS TO SUCH MOTOR VEHICLES.
   (4) "ADJUSTMENT PROGRAM" MEANS ANY PROGRAM OR POLICY THAT  EXPANDS  OR
 EXTENDS THE CONSUMER'S WARRANTY BEYOND ITS STATED LIMIT OR UNDER WHICH A
 MANUFACTURER OFFERS TO PAY FOR ALL OR ANY PART OF THE COST OF REPAIRING,
 OR  TO REIMBURSE CONSUMERS FOR ALL OR ANY PART OF THE COST OF REPAIRING,
 ANY CONDITION THAT MAY SUBSTANTIALLY AFFECT  VEHICLE  DURABILITY,  RELI-
 ABILITY  OR  PERFORMANCE,  OTHER THAN SERVICE PROVIDED UNDER A SAFETY OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00698-01-9

 A. 50                               2
 
 EMISSION-RELATED RECALL CAMPAIGN. THIS TERM DOES NOT INCLUDE ADJUSTMENTS
 MADE BY A MANUFACTURER ON A CASE BY CASE BASIS.
   (5)  "MANUFACTURER" MEANS (I) ANY PERSON WHO MANUFACTURES OR ASSEMBLES
 NEW MOTOR VEHICLES FOR SALE OR DISTRIBUTION OR (II) ANY  PERSON  WHO  IS
 ENGAGED  IN  THE  BUSINESS  OF  IMPORTING NEW MOTOR VEHICLES FOR SALE OR
 DISTRIBUTION TO DEALERS OR THROUGH DISTRIBUTORS, OR FACTORY BRANCHES.
   (6) "MOTOR VEHICLE" MEANS A MOTOR VEHICLE EXCLUDING OFF-ROAD VEHICLES,
 WHICH WAS SUBJECT TO A MANUFACTURER'S EXPRESS WARRANTY AT  THE  TIME  OF
 ORIGINAL DELIVERY AND EITHER (I) WAS PURCHASED, LEASED OR TRANSFERRED IN
 THIS  STATE WITHIN EITHER THE FIRST EIGHTEEN THOUSAND MILES OF OPERATION
 OR TWO YEARS FROM THE DATE OF ORIGINAL DELIVERY, WHICHEVER  IS  EARLIER,
 OR (II) IS REGISTERED IN THIS STATE.
   (7) "OFF-ROAD VEHICLE" MEANS ANY SELF-PROPELLED VEHICLE WHICH IS MANU-
 FACTURED  FOR SALE FOR OPERATION PRIMARILY ON OFF-HIGHWAY TRAILS OR OFF-
 HIGHWAY COMPETITIONS AND ONLY INCIDENTALLY OPERATED ON  PUBLIC  HIGHWAYS
 PROVIDED  THAT  SUCH  VEHICLE DOES NOT EXCEED SEVENTY INCHES IN WIDTH OR
 ONE THOUSAND POUNDS DRY WEIGHT.
   (8) "SERVICE BULLETIN" MEANS ANY DOCUMENT  ISSUED  BY  A  MANUFACTURER
 PERTAINING TO ANY ADJUSTMENT PROGRAM.
   (B) (1) A MANUFACTURER SHALL, WITHIN NINETY DAYS OF THE ADOPTION OF AN
 ADJUSTMENT  PROGRAM, NOTIFY, BY FIRST-CLASS MAIL, ALL CONSUMERS ELIGIBLE
 UNDER SUCH PROGRAM OF THE  CONDITION  IN  THE  MOTOR  VEHICLE  WHICH  IS
 COVERED  BY AN ADJUSTMENT PROGRAM AND THE PRINCIPAL TERMS AND CONDITIONS
 OF THE ADJUSTMENT PROGRAM.
   (2) WITHIN THIRTY DAYS OF THE ADOPTION OF ANY NEW ADJUSTMENT  PROGRAM,
 A  MANUFACTURER  SHALL  NOTIFY ITS DEALERS, IN WRITING, OF ALL THE TERMS
 AND CONDITIONS THEREOF.
   (3) COPIES OF ALL NOTICES MAILED IN ACCORDANCE WITH  THIS  SUBDIVISION
 SHALL  BE  SENT  TO  THE DEPARTMENT OF STATE AND THE DEPARTMENT OF MOTOR
 VEHICLES AND MADE AVAILABLE FOR PUBLIC INQUIRIES.
   (C) EACH MANUFACTURER EITHER DIRECTLY OR THROUGH ITS AUTHORIZED  AGENT
 SHALL  CAUSE  TO BE GIVEN TO THE ORIGINAL PURCHASER OF A NEW MOTOR VEHI-
 CLE, AT THE TIME OF PURCHASE, A NOTICE OUTLINING THE PROVISIONS OF  THIS
 SECTION  AND  THE  RIGHTS  AND REMEDIES PROVIDED UNDER THIS SECTION. THE
 WRITTEN NOTICE SHALL BE DEEMED SUFFICIENT IF DONE IN  SUBSTANTIALLY  THE
 FOLLOWING FORM:
   "SOMETIMES  (INSERT  MANUFACTURER'S  NAME) OFFERS A SPECIAL ADJUSTMENT
 PROGRAM TO PAY ALL OR PART OF THE COST OF  CERTAIN  REPAIRS  BEYOND  THE
 TERMS  OF THE WARRANTY.  CHECK WITH YOUR DEALER TO DETERMINE WHETHER ANY
 ADJUSTMENT PROGRAM IS APPLICABLE TO YOUR MOTOR VEHICLE."
   (D) (1) A DEALER SHALL DISCLOSE TO A CONSUMER SEEKING  REPAIRS  FOR  A
 PARTICULAR  CONDITION AT ITS REPAIR SHOP, THE PRINCIPAL TERMS AND CONDI-
 TIONS OF THE MANUFACTURER'S ADJUSTMENT PROGRAM COVERING  SUCH  CONDITION
 IF THE DEALER HAS RECEIVED A SERVICE BULLETIN CONCERNING SUCH ADJUSTMENT
 PROGRAM OR OTHERWISE HAS KNOWLEDGE OF IT.
   (2)  A  DEALER  SHALL  PROVIDE  NOTICE  TO  PROSPECTIVE PURCHASERS AND
 LESSEES THAT PROVIDES INFORMATION ON HOW TO GET COPIES OF SERVICE BULLE-
 TINS.  NOTHING IN THIS NOTICE SHALL BE CONSTRUED AS AN ADMISSION BY  THE
 DEALER  OR  MANUFACTURER  OF  THE EXISTENCE OR NONEXISTENCE OF A VEHICLE
 DEFECT. THE NOTICE SHALL BE DEEMED SUFFICIENT IF POSTED IN THE  SHOWROOM
 OR OTHER AREA CONSPICUOUS TO MOTOR VEHICLE PURCHASERS AND WRITTEN IN THE
 FOLLOWING FORM:
   FEDERAL  LAW  REQUIRES  MANUFACTURERS  TO FURNISH THE NATIONAL HIGHWAY
 TRAFFIC SAFETY ADMINISTRATION (N.H.T.S.A.) WITH BULLETINS DESCRIBING ANY
 DEFECTS IN THEIR VEHICLES.

 A. 50                               3
 
   YOU MAY OBTAIN COPIES OF THESE BULLETINS, FOR A FEE,  FROM  EITHER  OF
 THE FOLLOWING:
   THE MANUFACTURER (ASK YOUR DEALER FOR THE TOLL-FREE NUMBER); OR
   N.H.T.S.A.--TECHNICAL  REFERENCE  DIVISION (INSERT THE CURRENT MAILING
 ADDRESS AND TELEPHONE NUMBER ESTABLISHED BY THE NATIONAL HIGHWAY TRAFFIC
 SAFETY ADMINISTRATION FOR RECEIVING REQUESTS FOR SERVICE BULLETINS).
   IN ADDITION, CERTAIN CONSUMER PUBLICATIONS PUBLISH THESE BULLETINS
   AND SOME COMPANIES WILL SEND THEM TO YOU, FOR A FEE.
   SUCH SIGN SHALL BE PRINTED WITH LETTERING THAT IS LEGIBLE AND SHALL BE
 AT LEAST THREE-QUARTERS OF AN INCH BOLDFACE TYPE.
   (E) A MANUFACTURER WHO ESTABLISHES AN ADJUSTMENT PROGRAM SHALL  IMPLE-
 MENT  PROCEDURES TO ASSURE REIMBURSEMENT OF EACH CONSUMER ELIGIBLE UNDER
 AN ADJUSTMENT PROGRAM WHO INCURS EXPENSES  FOR  REPAIR  OF  A  CONDITION
 SUBJECT  TO  THE  PROGRAM  PRIOR  TO ACQUIRING KNOWLEDGE OF THE PROGRAM.
 SUCH REIMBURSEMENT SHALL BE CONSISTENT WITH THE TERMS AND CONDITIONS  OF
 THE PARTICULAR PROGRAM.
   ANY  CLAIM  FOR  REIMBURSEMENT UNDER THIS SUBDIVISION SHALL BE MADE IN
 WRITING TO THE MANUFACTURER WITHIN TWO YEARS OF THE DATE OF THE  CONSUM-
 ER'S PAYMENT FOR REPAIR OF THE CONDITION.  THE MANUFACTURER SHALL NOTIFY
 THE  CONSUMER  WITHIN  TWENTY-ONE BUSINESS DAYS OF RECEIVING A CLAIM FOR
 REIMBURSEMENT WHETHER THE CLAIM WILL BE ALLOWED OR DENIED.  IF THE CLAIM
 IS DENIED, THE SPECIFIC REASONS FOR THE DENIAL SHALL BE STATED IN  WRIT-
 ING.
   (F)  A  VIOLATION  OF  ANY  OF THE PROVISIONS OF THIS SECTION SHALL BE
 DEEMED A DECEPTIVE ACT OR PRACTICE UNDER ARTICLE  TWENTY-TWO-A  OF  THIS
 CHAPTER.
   (G)  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO EXCLUDE, MODIFY, OR
 OTHERWISE LIMIT ANY OTHER REMEDY  PROVIDED  BY  LAW  TO  A  CONSUMER  OR
 LESSEE.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.