NY State Senate Bill 2021-S3236

Senate Bill S3236

2021-2022 Legislative Session

Prohibits the imposition of certain fees at the expiration of a term on a motor vehicle lease which constitutes administrative, clerical or handling charges

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 05, 2022	referred to consumer protection
Jan 28, 2021	referred to consumer protection

2021-S3236 (ACTIVE) - Details

See Assembly Version of this Bill:: A5551
Current Committee:: Senate Consumer Protection
Law Section:: Personal Property Law
Laws Affected:: Amd §337, Pers Prop L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S1396, A2904
2011-2012: S1599, A1581
2013-2014: S3573, A466
2015-2016: S488, A2512
2017-2018: S2988, A2337
2019-2020: S5921, A3345
2023-2024: S4778, A7167

2021-S3236 (ACTIVE) - Summary

Provides that with respect to leases on motor vehicles, no lease shall provide that the lessee would be charged a turn-in fee at the expiration of the term which constitutes solely an additional fee for administrative, handling or clerical charges.

2021-S3236 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3236

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the personal property law, in relation to prohibiting
certain provisions in retail lease agreements

 
PURPOSE OR GENERAL IDEA OF BILL:

To prevent the imposition of certain fees at the expiration of a term on
a motor vehicle lease which constitutes administrative, clerical or
handling charges.

 
SUMMARY OF PROVISIONS:

This bill adds a new section (j) to Section 337(14) of the Personal
Property Law dealing with retail auto lease agreements.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):

 
JUSTIFICATION:

The proposed new section prohibits charging a turn-in fee at the expira-
tion of the term of the lease, the basis of which is solely for adminis-
trative, handling or clerical charges.When a lessee turns in an automo-
bile at the end of the lease that has not been damaged nor exceeds the
contractual mileage allowed, there is no basis for charging an addi-
tional amount called a turn-in fee for purely administrative costs for
the dealer to accept the automobile.This is a fee very seldom discussed
with the lessee at the time the lease is signed. The lesser often offers
to waive such a fee as an incentive to the customer to do a subsequent
lease. This discourages the consumer from seeking the best rate avail-
able.

 
PRIOR LEGISLATIVE HISTORY:

1999-00A.8035- committed to judiciary - referred to judiciary

2001-02A.4159- referred to consumer protection

2003-04A.1975

2005-06A.4642- ordered to third reading rules cal.203

2007-08A.1519- referred to consumer protection

2009-10A.2904- referred to consumer protection

2011-12A.1581- advanced to third reading cal.386

2013-14A.466 -advanced to third reading cal.428

2015-16A.2512- advanced to third reading cal.578

2017-18:A.2337- ordered to third reading cal.176

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None to the State

 
EFFECTIVE DATE:
This act shall effect on the first of January next succeeding the date
on which it shall have become a law and shall apply to leases executed
on and after such date.

2021-S3236 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3236
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 28, 2021
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 AN ACT to amend the personal property law, in  relation  to  prohibiting
   certain provisions in retail lease agreements
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraphs (h) and (i) of subdivision 14 of section 337  of
 the  personal  property  law, paragraph (h) as added by chapter 1 of the
 laws of 1994 and paragraph (i) as amended by chapter 111 of the laws  of
 1995, are amended and a new paragraph (j) is added to read as follows:
   (h)  the  lessee  waives any right to a trial by jury in any action or
 proceeding arising out of the agreement; [or]
   (i) a lessee who is not in default of his or her obligations under the
 agreement would be prohibited from terminating the agreement at any time
 after the expiration of the first fifty percent of the total  number  of
 months  of the lease term. The exercise of this right to terminate early
 voluntarily is contingent upon the lessee discharging fully his  or  her
 liability under the early termination provisions of the agreement[.]; OR
   (J) THE LESSEE WOULD BE CHARGED A TURN-IN FEE AT THE EXPIRATION OF THE
 TERM  WHICH  CONSTITUTES  SOLELY  AN  ADDITIONAL FEE FOR ADMINISTRATIVE,
 HANDLING OR CLERICAL CHARGES.
   § 2. This act shall take effect on the first of January next  succeed-
 ing  the  date  on  which  it shall have become a law and shall apply to
 leases executed on or after such date.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05602-01-1

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