S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    937
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  M.  of  A. PHEFFER AMATO, QUART, DILAN, NORRIS, NOLAN --
   Multi-Sponsored by -- M. of A. EPSTEIN -- read once  and  referred  to
   the Committee on Consumer Affairs and Protection
 
 AN  ACT to amend the general business law, in relation to safety recalls
   on 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 section
 198-d to read as follows:
   §  198-D.  USED  MOTOR  VEHICLES; RECALLS. (A) FOR THE PURPOSE OF THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (1) "DEALER" SHALL HAVE THE SAME MEANING AS PARAGRAPH A OF SUBDIVISION
 ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW.
   (2) "USED MOTOR VEHICLE" SHALL HAVE THE SAME MEANING AS PARAGRAPH I OF
 SUBDIVISION ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAF-
 FIC LAW.
   (3) "STOP DRIVE ORDER" SHALL MEAN A NOTIFICATION ISSUED UNDER  49  USC
 SECTION  30118  WHICH  INCLUDES  PRECAUTIONARY  ADVICE TO STOP DRIVING A
 MOTOR VEHICLE (INCLUDING THE  VEHICLE  IDENTIFICATION  NUMBER  FOR  SUCH
 VEHICLE).
   (B)  WHERE  A  FRANCHISOR  OR MANUFACTURER, AS DEFINED BY SECTION FOUR
 HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW, DIRECTLY OR INDIRECTLY
 SUBJECTS ANY DEALER TO ANY FINANCIAL OR  OTHER  PENALTIES  OR  OTHERWISE
 PENALIZES  OR  PREVENTS  A DEALER FROM SELLING OR LEASING ANY USED MOTOR
 VEHICLE SUBJECT TO RECALL, INCLUDING WHERE  ANY  SUCH  RESTRICTIONS  ARE
 IMPOSED  BY  THE  MANUFACTURER,  EITHER  THROUGH THE ISSUANCE OF A "STOP
 SELL" OR ANY OTHER COMMUNICATION THAT PREVENTS  OR  PENALIZES  A  DEALER
 FROM  OFFERING  A  VEHICLE  FOR SALE, OR FEDERAL, STATE, OR LOCAL LAW OR
 REGULATION:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05095-01-1

 A. 937                              2
 
   (1) THE FRANCHISOR OR MANUFACTURER SHALL, WHERE PARTS OR A REMEDY  ARE
 NOT  REASONABLY  AVAILABLE AND A POLICY DESCRIBED IN THIS SUBDIVISION IS
 IN EFFECT, FOLLOWING FIFTEEN DAYS NOTICE FROM A DEALER THAT THEY ARE  IN
 POSSESSION  OF  A  VEHICLE  SUBJECT  TO  THE  PROVISIONS OF THIS SECTION
 PROVIDE  TO  SAID  DEALER  A  PAYMENT OF ONE AND SEVENTY-FIVE HUNDREDTHS
 PERCENT OF THE VALUE OF THE USED MOTOR  VEHICLE  AS  DETERMINED  BY  THE
 AVERAGE  "TRADE-IN"  VALUE  FOR A SIMILAR USED VEHICLE AS INDICATED IN A
 WIDELY DISSEMINATED, PUBLICLY AVAILABLE, INDEPENDENT USED MOTOR  VEHICLE
 GUIDE  FOR  THE YEAR, MAKE, MODEL, AND MILEAGE OF THE USED MOTOR VEHICLE
 IN THE POSSESSION OF THE DEALER FOR EVERY THIRTY  DAYS,  OR  PORTION  OF
 THIRTY DAYS, THE DEALER IS UNABLE TO SELL, OFFER TO SELL, OR REPAIR SUCH
 VEHICLE DUE TO THE INABILITY TO SATISFY ANY RECALL ISSUED FOR SUCH VEHI-
 CLE OR DUE TO A COMMUNICATION DESCRIBED IN THE OPENING PARAGRAPH OF THIS
 SUBDIVISION  RECEIVED  FROM  THE MANUFACTURER REGARDING THE SALE OF SUCH
 VEHICLE; AND
   (2) ALL REIMBURSEMENT CLAIMS MADE BY A DEALER PURSUANT TO THIS  SUBDI-
 VISION  SHALL BE SUBJECT TO THE PROCEDURE ESTABLISHED UNDER SUBDIVISIONS
 TWO THROUGH SEVEN OF SECTION FOUR HUNDRED SIXTY-FIVE OF THE VEHICLE  AND
 TRAFFIC LAW.
   (C)  THE MANUFACTURER OR FRANCHISOR MAY NOT RETALIATE AGAINST A DEALER
 WHO HAS SUBMITTED A CLAIM FOR REIMBURSEMENT UNDER THIS  SECTION  OR  WHO
 WAS  OTHERWISE  COMPENSATED  FOR  A VEHICLE SUBJECT TO A RECALL. FOR THE
 PURPOSES OF THIS SUBDIVISION, RETALIATION SHALL INCLUDE, BUT  SHALL  NOT
 BE  LIMITED  TO, REDUCING THE AMOUNT OF COMPENSATION OTHERWISE OWED TO A
 DEALER, WHETHER THROUGH A CHARGEBACK, REMOVAL FROM AN INCENTIVE PROGRAM,
 REDUCING THE AMOUNT OWED UNDER AN INCENTIVE PROGRAM, OR ANY OTHER MEANS,
 IMPOSING ADDITIONAL REQUIREMENTS, WITHHOLDING INVENTORY, REDUCING  ALLO-
 CATION,  REQUIRING  ANY  FACILITY  UPGRADE,  OR OTHERWISE SURCHARGING OR
 PENALIZING THE DEALER.  A DEALER MAY NOT, HOWEVER, RECEIVE  COMPENSATION
 FOR  THE  SAME VEHICLE UNDER RECALL UNDER THIS SECTION, AS WELL AS UNDER
 ANOTHER MANUFACTURER PROGRAM DESIGNED TO MITIGATE DEALER COSTS  FOR  THE
 HOLDING  OF  VEHICLES  UNDER  RECALL,  UNLESS OTHERWISE ENTITLED TO SUCH
 COMPENSATION, AND SUCH COMPENSATION IS EQUAL TO  OR  GREATER  THAN  THAT
 PROVIDED UNDER PARAGRAPH ONE OF SUBDIVISION (B) OF THIS SECTION.
   (D) THE MANUFACTURER OR FRANCHISOR SHALL PAY FOR ANY REPAIRS PERFORMED
 BY  THE  DEALER  TO  REMEDY  ANY  RECALL,  PURSUANT TO THE PROVISIONS OF
 SECTION FOUR HUNDRED SIXTY-FIVE OF THE  VEHICLE  AND  TRAFFIC  LAW.  ANY
 REPLACEMENT  PART  PROVIDED  FOR  A  RECALL  REPAIR SHALL BE PAID AT THE
 EXISTING RETAIL REIMBURSEMENT RATE IN EXISTENCE AT THE TIME  THE  REPAIR
 IS PERFORMED.
   §  2.  This act shall take effect immediately, provided, however, that
 subdivision (b) of section one hundred  ninety-eight-d  of  the  general
 business  law, as added by section one of this act, shall take effect on
 the sixtieth day after this act shall have become a law.