A01380 Summary:

SPONSORPheffer Amato (MS)
COSPNSRQuart, Dilan, Norris, Crespo, Nolan
Add §198-d, Gen Bus L
Relates to safety recalls on used motor vehicles; requires dealers to provide notice to purchasers of safety recalls.
Go to top    

A01380 Actions:

01/15/2019referred to consumer affairs and protection
05/08/2019amend and recommit to consumer affairs and protection
05/08/2019print number 1380a
01/08/2020referred to consumer affairs and protection
Go to top

A01380 Committee Votes:

Go to top

A01380 Floor Votes:

There are no votes for this bill in this legislative session.
Go to top

A01380 Text:

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 15, 2019
        Introduced  by  M.  of  A.  PHEFFER AMATO, QUART, DILAN, NORRIS, CRESPO,
          NOLAN -- Multi-Sponsored by -- M. of  A.  EPSTEIN  --  read  once  and
          referred  to  the  Committee  on  Consumer  Affairs  and Protection --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted to said committee

        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:
     1    Section 1. The general business law is amended by adding a new section
     2  198-d to read as follows:
     3    §  198-d.  Used  motor  vehicles; recalls. (a) For the purpose of this
     4  section, the following terms shall have the following meanings:
     5    (1) "dealer" shall have the same meaning as paragraph a of subdivision
     6  one of section four hundred fifteen of the vehicle and traffic law.
     7    (2) "used motor vehicle" shall have the same meaning as paragraph i of
     8  subdivision one of section four hundred fifteen of the vehicle and traf-
     9  fic law.
    10    (3) "stop drive order" shall mean a notification issued under  49  USC
    11  section  30118  which  includes  precautionary  advice to stop driving a
    12  motor vehicle (including the  vehicle  identification  number  for  such
    13  vehicle).
    14    (b)  Where  a  franchisor  or manufacturer, as defined by section four
    15  hundred sixty-two of the vehicle and traffic law, directly or indirectly
    16  subjects any dealer to any financial or  other  penalties  or  otherwise
    17  penalizes  or  prevents  a dealer from selling or leasing any used motor
    18  vehicle subject to recall, including where  any  such  restrictions  are
    19  imposed  by  the  manufacturer,  either  through the issuance of a "stop
    20  sell" or any other communication that prevents  or  penalizes  a  dealer
    21  from  offering  a  vehicle  for sale, or federal, state, or local law or
    22  regulation:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 1380--A                          2
     1    (1) the franchisor or manufacturer shall, where parts or a remedy  are
     2  not  reasonably  available and a policy described in this subdivision is
     3  in effect, following fifteen days notice from a dealer that they are  in
     4  possession  of  a  vehicle  subject  to  the  provisions of this section
     5  provide  to  said  dealer  a  payment of one and seventy-five hundredths
     6  percent of the value of the used motor  vehicle  as  determined  by  the
     7  average  "trade-in"  value  for a similar used vehicle as indicated in a
     8  widely disseminated, publicly available, independent used motor  vehicle
     9  guide  for  the year, make, model, and mileage of the used motor vehicle
    10  in the possession of the dealer for every thirty  days,  or  portion  of
    11  thirty days, the dealer is unable to sell, offer to sell, or repair such
    12  vehicle due to the inability to satisfy any recall issued for such vehi-
    13  cle or due to a communication described in the opening paragraph of this
    14  subdivision  received  from  the manufacturer regarding the sale of such
    15  vehicle; and
    16    (2) all reimbursement claims made by a dealer pursuant to this  subdi-
    17  vision  shall be subject to the procedure established under subdivisions
    18  two through seven of section four hundred sixty-five of the vehicle  and
    19  traffic law.
    20    (c)  The manufacturer or franchisor may not retaliate against a dealer
    21  who has submitted a claim for reimbursement under this  section  or  who
    22  was  otherwise  compensated  for  a vehicle subject to a recall. For the
    23  purposes of this subdivision, retaliation shall include, but  shall  not
    24  be  limited  to, reducing the amount of compensation otherwise owed to a
    25  dealer, whether through a chargeback, removal from an incentive program,
    26  reducing the amount owed under an incentive program, or any other means,
    27  imposing additional requirements, withholding inventory, reducing  allo-
    28  cation,  requiring  any  facility  upgrade,  or otherwise surcharging or
    29  penalizing the dealer.  A dealer may not, however, receive  compensation
    30  for  the  same vehicle under recall under this section, as well as under
    31  another manufacturer program designed to mitigate dealer costs  for  the
    32  holding  of  vehicles  under  recall,  unless otherwise entitled to such
    33  compensation, and such compensation is equal to  or  greater  than  that
    34  provided under paragraph one of subdivision (b) of this section.
    35    (d) The manufacturer or franchisor shall pay for any repairs performed
    36  by  the  dealer  to  remedy  any  recall,  pursuant to the provisions of
    37  section four hundred sixty-five of the  vehicle  and  traffic  law.  Any
    38  replacement  part  provided  for  a  recall  repair shall be paid at the
    39  existing retail reimbursement rate in existence at the time  the  repair
    40  is performed.
    41    §  2.  This act shall take effect immediately, provided, however, that
    42  subdivision (b) of section one hundred  ninety-eight-d  of  the  general
    43  business  law, as added by section one of this act, shall take effect on
    44  the sixtieth day after this act shall have become a law.
Go to top