NY State Senate Bill 2019-S5190

Senate Bill S5190

2019-2020 Legislative Session

Relates to a cap on the amount that a rental vehicle company may charge a renter for refueling a rental vehicle

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 08, 2020	referred to consumer protection
Apr 15, 2019	referred to consumer protection

2019-S5190 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §396-z, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S3985
2023-2024: S4036

2019-S5190 (ACTIVE) - Summary

Places a cap on the amount that a rental vehicle company may charge a renter for refueling a rental vehicle; imposes a maximum fine for a violation of such cap on charges.

2019-S5190 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5190

SPONSOR: FUNKE
 
TITLE OF BILL:  An act to amend the general business law, in relation
to a cap on the amount which rental vehicle companies may charge for
refueling of a rental vehicle

 
PURPOSE:

This bill will establish a reasonable cap on the prices rental companies
are allowed to charge for refueling vehicles once they are returned.
Currently such cap does not exist, thus leaving consumers at the whim of
rental companies. The price cap would be set at 25% above the regional
average market value of gasoline as published by the United States ener-
gy and information administration, which is also the source that NYSERDA
uses on its website to publish the monthly average price of gasoline.

 
SUMMARY OF PROVISIONS:

Section 1 & 2: Establishes a cap on the amount that vehicle rental
companies are able to charge for gasoline once the vehicle is returned.

The rental companies would be able to charge up to 125% of the regional
market value of gasoline as established by the United States energy and
information administration, for refueling the vehicle upon return to the
level it was at when the individual renting the vehicle took possession
of the vehicle.

This section also authorizes the Attorney General to investigate
violations of this law and impose penalties consistent with price goug-
ing instances where violations are found.

 
JUSTIFICATION:

Individuals who rent cars are in a unique situation often out of town
and on a time crunch to catch a flight or whatever else may be next in
line in their travels. When returning a vehicle, the consumer has two
options: 1. Fuel up at a gas station and return it. 2. Return the vehi-
cle with less fuel and pay the rental company to refuel it. In cases
where you chose the convenience of having the rental company fuel it for
you, the company should be able to charge you more for gasoline than the
gas station would charge. However, there should be a cap in place in
order to prevent companies from charging exuberant rates, much in the
same way there are protections in place for price gouging, to protect
consumers who are stuck between a rock and a hard place where pure capi-
talism fails to protect them. This bill would provide for the rental
company to still make money on their gasoline prices, while ensuring
that a reasonable price is charged.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None to the State. This bill would represent a savings for consumers.

 
EFFECTIVE DATE:
This act shall take effect immediately, provided that the amendments to
subdivision 10 of 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 subdivision (a) of section 4 of chapter 109
of the laws of 2018, as amended, when upon such date the provisions of
section two of this act shall take effect.

2019-S5190 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5190
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              April 15, 2019
                                ___________
 
 Introduced  by  Sen.  FUNKE  -- 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 a  cap  on  the
   amount  which  rental  vehicle companies may charge for refueling of a
   rental vehicle

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 10 of section 396-z of the general business law
 is amended by adding a new paragraph (b-1) to read as follows:
   (B-1)  A  RENTAL  VEHICLE  COMPANY THAT CHARGES FOR THE REFUELING OF A
 RENTAL VEHICLE, PURSUANT TO PARAGRAPH (B)  OF  THIS  SUBDIVISION,  SHALL
 ONLY  CHARGE  THE  RENTER  FOR  THE  AMOUNT OF GAS THAT WAS NECESSARY TO
 RETURN THE FUEL TANK TO THE AMOUNT OF FUEL THAT WAS IN THE TANK  AT  THE
 BEGINNING OF THE RENTAL. THE RENTER SHALL NOT BE CHARGED FOR SUCH GAS AT
 A  RATE  EXCEEDING ONE HUNDRED TWENTY-FIVE PERCENT OF THE REGIONAL AVER-
 AGE MARKET VALUE OF GAS AS  PUBLISHED BY THE UNITED  STATES  ENERGY  AND
 INFORMATION  ADMINISTRATION. WHERE A RENTAL VEHICLE COMPANY HAS VIOLATED
 THE PROVISIONS OF THIS PARAGRAPH, THE ATTORNEY GENERAL  MAY  COMMENCE  A
 SPECIAL PROCEEDING PURSUANT TO SUBDIVISION THIRTEEN OF THIS SECTION, AND
 IN  ANY  SUCH  PROCEEDING  THE  COURT SHALL IMPOSE A CIVIL PENALTY IN AN
 AMOUNT NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS AND,  WHERE  APPROPRI-
 ATE, ORDER RESTITUTION TO AGGRIEVED RENTERS.
   §  2.  Subdivision  9  of section 396-z of the general business law is
 amended by adding a new paragraph (b-1) to read as follows:
   (B-1) A RENTAL VEHICLE COMPANY THAT CHARGES FOR  THE  REFUELING  OF  A
 RENTAL  VEHICLE,  PURSUANT  TO  PARAGRAPH (B) OF THIS SUBDIVISION, SHALL
 ONLY CHARGE THE RENTER FOR THE AMOUNT  OF  GAS  THAT  WAS  NECESSARY  TO
 RETURN  THE  FUEL TANK TO THE AMOUNT OF FUEL THAT WAS IN THE TANK AT THE
 BEGINNING OF THE RENTAL. THE RENTER SHALL NOT BE CHARGED FOR SUCH GAS AT
 A RATE EXCEEDING ONE HUNDRED TWENTY-FIVE PERCENT OF THE REGIONAL AVERAGE
 MARKET VALUE OF GAS AS PUBLISHED BY THE UNITED STATES ENERGY AND  INFOR-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11142-01-9

 S. 5190                             2
 
 MATION  ADMINISTRATION.  WHERE A RENTAL VEHICLE COMPANY HAS VIOLATED THE
 PROVISIONS OF THIS  PARAGRAPH,  THE  ATTORNEY  GENERAL  MAY  COMMENCE  A
 SPECIAL  PROCEEDING  PURSUANT TO SUBDIVISION TWELVE OF THIS SECTION, AND
 IN  ANY  SUCH  PROCEEDING  THE  COURT SHALL IMPOSE A CIVIL PENALTY IN AN
 AMOUNT NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS AND,  WHERE  APPROPRI-
 ATE, ORDER RESTITUTION TO AGGRIEVED RENTERS.
   §  3. This act shall take effect immediately, provided that the amend-
 ments to subdivision 10 of 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 subdivision (a) of  section  4  of
 chapter  109  of  the  laws of 2018, as amended, when upon such date the
 provisions of section two of this act shall take effect.

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