Restricts the rental of safety recalled cars until they are repaired in accordance with the recall; requires disclosure of such recall notices to prospective vehicle renters if such recalled cars have not been repaired.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2585
SPONSOR: Hyndman TITLE OF BILL:
An act to amend the general business law, in relation to prohibiting the
rental of motor vehicles that are subject to a recall
PURPOSE OR GENERAL IDEA OF BILL:
This legislation would prohibit the rental of safety recalled cars until
they are repaired in accordance with the recall.
SUMMARY OF PROVISIONS:
Section 1: adds a new subdivision 16 to section 396-z of the general
business law, as amended by the laws of 2006 which require rental car
companies to inspect and repair vehicles that are subject to a recall
within 120 days of notification that the vehicle is Subject to a recall.
The rental company shall provide disclosure to the prospective renter
during these 120 days, if inspections and repairs have not yet been
made. Following the 120 days, the rental car company shall have the
option of providing disclosure instead of making the inspections and
repairs. All disclosures required or permitted in this bill shall be
subject to specific requirements.
Section 2: adds a new subdivision 14 to section 396-z of the general
business law, as amended by the laws of 1988 which require rental car
companies to inspect and repair vehicles that are subject to a recall
within 120 days of notification that the vehicle is subject to a recall.
The rental company shall also have the option of providing disclosure
subject to specific requirements upon such disclosure.
Section 3: provides the effective date and provides that section two
shall take effect when section one is repealed pursuant to section 4 of
chapter 656 of the laws of 2002.
JUSTIFICATION:
Recalls on vehicles are issued for public safety. The federal govern-
ment, as well as car manufacturers, issue recall notices when a defect
is discovered that could be potentially harmful to someone using the
vehicle. Included among the most prevalent reasons for a motor vehicle
recall are wiring and leaks that cause fire, steering problems that lead
to a loss of control, and accelerators that break or suddenly freeze.
These problems are all potentially deadly if not addressed. Under
current law, auto dealers are prohibited from selling cars that are
subject to a recall however there is no regulation with respect to the
rental of recalled vehicles. This legislation holds car rental companies
to heightened restrictions similar to those placed on auto dealers by
requiring rental companies to inspect recalled vehicles, and when appro-
priate, repair such vehicles. Alternatively, rental car companies may
disclose defects to potential renters if they decline to make the
repairs under the recall.
Disclosure is required at all times that a vehicle is rented by a vehi-
cle rental company while it is subject to a recall. If disclosure is
made with respect to the existence and nature of the recall and the
specific defect, and the customer initials a form containing this infor-
mation prior to the signing of any rental agreement, the rental car
company shall be permitted to rent the vehicle to the customer.
FISCAL IMPLICATIONS:
None to the state.
EFFECTIVE DATE: :
This act shall take effect immediately, with provisions.
STATE OF NEW YORK
________________________________________________________________________
2585
2023-2024 Regular Sessions
IN ASSEMBLY
January 26, 2023
___________
Introduced by M. of A. HYNDMAN -- read once and referred to the Commit-
tee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to prohibiting the
rental of motor vehicles that are subject to a recall
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 396-z of the general business law, as amended by
2 chapter 109 of the laws of 2018, is amended by adding a new subdivision
3 17 to read as follows:
4 17. Rental vehicle companies shall inspect and, if appropriate, repair
5 any rental vehicle covered under a federal or manufacturer's safety
6 recall within one hundred twenty days after receiving such notice.
7 Following receipt of such notice by a rental vehicle company, such
8 company may rent a vehicle that is subject to a safety recall provided
9 that such company discloses to any prospective renter of vehicles
10 covered under a federal or manufacturer's safety recall that the vehi-
11 cles are subject to safety recall notices and have not been inspected or
12 repaired prior to the signing of the rental agreement. If one hundred
13 twenty days shall lapse following the receipt of notice by a rental
14 vehicle company that a federal or manufacturer's safety recall is in
15 effect on any of the vehicles owned by the rental vehicle company, and
16 such rental vehicle company has failed to inspect or repair such vehi-
17 cles, the rental vehicle company shall have the option, as an alterna-
18 tive to undertaking the inspections or repairs subject to the recall, to
19 disclose to prospective renters of vehicles covered under a federal or
20 manufacturer's safety recall that the vehicles are subject to safety
21 recall notices and have not been inspected or repaired prior to the
22 signing of the agreement. Any disclosures required under this section
23 shall be set forth in a separate document attached to the rental agree-
24 ment and shall state (a) that the specific vehicle is the subject of a
25 safety recall, (b) describe the recall in question, and (c) describe the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04607-01-3
A. 2585 2
1 nature of the defect. Such disclosure shall be initialled by the
2 prospective renter prior to the signing of the rental agreement.
3 § 2. Section 396-z of the general business law, as amended by chapter
4 731 of the laws of 2006, is amended by adding a new subdivision 16 to
5 read as follows:
6 16. Rental vehicle companies shall inspect and, if appropriate, repair
7 any rental vehicle covered under a federal or manufacturer's safety
8 recall within one hundred twenty days after receiving such notice.
9 Following receipt of such notice by a rental vehicle company, such
10 company may rent a vehicle that is subject to a safety recall provided
11 that such company discloses to any prospective renter of vehicles
12 covered under a federal or manufacturer's safety recall that the vehi-
13 cles are subject to safety recall notices and have not been inspected or
14 repaired prior to the signing of the rental agreement. If one hundred
15 twenty days shall lapse following the receipt of notice by a rental
16 vehicle company that a federal or manufacturer's safety recall is in
17 effect on any of the vehicles owned by the rental vehicle company, and
18 such rental vehicle company has failed to inspect or repair such vehi-
19 cles, the rental vehicle company shall have the option, as an alterna-
20 tive to undertaking the inspections or repairs subject to the recall, to
21 disclose to prospective renters of vehicles covered under a federal or
22 manufacturer's safety recall that the vehicles are subject to safety
23 recall notices and have not been inspected or repaired prior to the
24 signing of the agreement. Any disclosures required under this section
25 shall be set forth in a separate document attached to the rental agree-
26 ment and shall state (a) that the specific vehicle is the subject of a
27 safety recall, (b) describe the recall in question, and (c) describe the
28 nature of the defect. Such disclosure shall be initialled by the
29 prospective renter prior to the signing of the rental agreement.
30 § 3. This act shall take effect immediately, provided that the amend-
31 ments to section 396-z of the general business law, made by section one
32 of this act, shall be subject to the expiration and reversion of such
33 section pursuant to subdivision (a) of section 4 of chapter 109 of the
34 laws of 2018, as amended, when upon such date section two of this act
35 shall take effect.
