NY State Senate Bill 2023-S357

Senate Bill S357

2023-2024 Legislative Session

Relates to requiring motor vehicle dealers to search for recalls and make certain repairs prior to selling a used motor vehicle

download bill text pdf

Current 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 03, 2024	referred to consumer protection
Jan 04, 2023	referred to consumer protection

2023-S357 (ACTIVE) - Details

See Assembly Version of this Bill:: A6549
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §198-d, amd §199, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2013-2014: A6522
2015-2016: A4125
2017-2018: A2665
2019-2020: S6059, A5194
2021-2022: S148, A6041

2023-S357 (ACTIVE) - Summary

Requires motor vehicle dealers to search for recalls and make certain repairs prior to selling a used motor vehicle.

2023-S357 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S357

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring motor
vehicle dealers to search for recalls and make certain repairs prior to
selling a used motor vehicle

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to require used motor vehicle dealers, prior
to offering a contract for the sale of a used motor vehicle at retail,
to determine whether there are any manufacturer's recalls on such motor
vehicle. If there are any open recalls applicable to the used motor
vehicle, then the dealer shall either make the repairs required by the
manufacturer's recall, bring the vehicle to an authorized dealer and
have the recall satisfied prior to the sale.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill amends the general business law by adding a new

section 198-d:

Subdivision 1 defines "dealer" and "used motor vehicle."

Subdivision 2 requires that a dealer make a good-faith effort to discov-
er whether there is an auto recall upon a used motor vehicle before
selling it to a consumer. If there is an auto recall, the dealer must
repair the defect themselves or have an authorized dealer repair it
prior to the used motor vehicle's sale.

Section 2 of the bill amends section 199 of the general business law and
provides that any person, firm, or, corporation violating the provisions
of section 198d shall be liable in an action brought on behalf of the
people of the state of New York through a fine not exceeding five thou-
sand dollars per violation.

 
JUSTIFICATION:

Currently, manufacturers are required to contact the registered owner of
a motor vehicle upon which it has initiated a safety recall and notify
the owner that it will repair that vehicle at no cost to the owner.
However, there are occasions when a manufacturer has no way of contact-
ing the person or entity in possession of the recalled vehicle because
they have sold or traded-in that vehicle to a dealer or third party.
This new legislation would enhance vehicular safety in New York State by
ensuring that used car dealers search for recalls and conduct appropri-
ate repairs before selling the vehicle. This legislation will protect
consumers by ensuring that their used cars are safe prior to purchase.

 
PRIOR LEGISLATIVE HISTORY:

2021-22: S.148 (Thomas) / A.6041 (Rajkumar) - Referred to Consumer
Protection.

2019-20: S.6059 (Thomas) / A.5194 (DenDekker) - Referred to Consumer
Protection.

2017-18: A.2665 (DenDekker) - Referred to Consumer Affairs and
Protection.

2015-16: S5209 (Lanza) / A.4125 (DenDekker (MS)) - Referred to Consumer
Protection.

2013-14: S5616 (Savino) / A.6522 (DenDekker) - Referred to Consumer
Protection.

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S357 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    357
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sen.  THOMAS -- 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 requiring motor
   vehicle dealers to search for recalls and make certain  repairs  prior
   to selling a used motor vehicle
 
   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. 1.   FOR THE  PURPOSE  OF  THIS
 SECTION, THE FOLLOWING WORDS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "DEALER"  SHALL  HAVE  THE  SAME MEANING AS IN PARAGRAPH THREE OF
 SUBDIVISION A OF SECTION ONE HUNDRED NINETY-EIGHT-B OF THIS ARTICLE.
   (B) "USED MOTOR VEHICLE" SHALL HAVE THE SAME MEANING AS  IN  PARAGRAPH
 TWO OF SUBDIVISION A OF SECTION ONE HUNDRED NINETY-EIGHT-B OF THIS ARTI-
 CLE.
   2.  PRIOR  TO  OFFERING A CONTRACT FOR SALE OF A USED MOTOR VEHICLE AT
 RETAIL, THE DEALER, OR HIS OR HER AGENT, SHALL MAKE A GOOD FAITH  EFFORT
 TO  DETERMINE  WHETHER  A  MANUFACTURER  OR THE NATIONAL HIGHWAY TRAFFIC
 SAFETY ADMINISTRATION HAS ISSUED ANY  RECALL  APPLICABLE  TO  SUCH  USED
 MOTOR  VEHICLE.  UPON  DETERMINING  THAT A MANUFACTURER OR SUCH ADMINIS-
 TRATION HAS ISSUED ANY RECALL APPLICABLE TO SUCH USED MOTOR  VEHICLE,  A
 DEALER,  OR  HIS  OR  HER  AGENT,  MUST MAKE OR CAUSE REPAIRS TO BE MADE
 PURSUANT TO THE MANUFACTURER'S OR SUCH ADMINISTRATION'S RECALL SUCH THAT
 THE RECALL IS SATISFIED.
   § 2. Section 199 of the general business law, as added by chapter  900
 of  the  laws  of  1956  and as renumbered by chapter 582 of the laws of
 1970, is amended to read as follows:
   § 199. Penalties. Any  person,  firm,  or  corporation  violating  the
 provisions  of  section  one hundred [ninety-six] NINETY-EIGHT-D of this
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01637-01-3
 S. 357                              2
 
 article shall be liable in an action brought on behalf of the people  of
 the state of New York in the sum of [one] FIVE thousand dollars for each
 [of] such [violations] VIOLATION.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 have become a law.

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