NY State Senate Bill 2019-S758

Senate Bill S758

2019-2020 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to consumer protection
Jan 09, 2019	referred to consumer protection

2019-S758 (ACTIVE) - Details

See Assembly Version of this Bill:: A3897
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
2015-2016: S1547, A8210
2017-2018: S2780, A3116

2019-S758 (ACTIVE) - Summary

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

2019-S758 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S758

SPONSOR: KENNEDY
 
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. 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 applyòto 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:

2015-16: S.1547 Referred to Consumer Protection/A.8210 Referred to
Consumer Affairs and Protection

2017-18: 5.2780 Referred to Consumer Protection/A.3116 Referred to
Consumer Affairs and Protection

 
FISCAL IMPLICATIONS:

None

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

2019-S758 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    758
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 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.
   § 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
 GRACE  PERIOD.  SUCH  DEVICE  TYPICALLY REQUIRES THE CONSUMER TO ENTER A

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD02703-01-9

 S. 758                              2
 
 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.
   § 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.
   § 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.
   §  199-R.  CIVIL PENALTY. A KNOWING VIOLATION OF THIS SECTION SHALL BE
 PUNISHABLE BY A FINE NOT TO EXCEED FIVE THOUSAND DOLLARS.
   § 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.
   §  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.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.  Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of this act on its effective date are authorized and directed to
 be made on or before such effective date.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.