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S01949 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1949
 
                               2017-2018 Regular Sessions
 
                    IN SENATE
 
                                    January 11, 2017
                                       ___________
 
        Introduced  by  Sen. LATIMER -- 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 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 731 of the laws of 2006, is amended by adding a new  subdivision
     3  16 to read as follows:
     4    16. 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.
                                                                   LBD01144-01-7

        S. 1949                             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  784 of the laws of 1988, is amended by adding a new  subdivision  14  to
     5  read as follows:
     6    14. 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  section  4 of chapter 656 of the laws of 2002, as
    34  amended, when upon such date section two of this act shall take effect.
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