Add Art 12-A SS210 - 216-j, rpld SS391-g, 391-l, 396-z & 398-b, Gen Bus L; add S229, amd S1229-c, V & T L;
amd S3440, Ins L
Requires the registration and regulation by the commissioner of motor vehicles of rental vehicle companies, as defined; prohibits discriminatory practices by rental vehicle companies based on age, credit card ownership, geographical location of renter's residence or past driving history; provides other protections in vehicle renting, including limits of liability of one hundred dollars except under certain circumstances; sets procedures for accident reports and for suspension or revocation of registration and for civil penalties; also authorizes private right of action.
STATE OF NEW YORK
________________________________________________________________________
2283
2009-2010 Regular Sessions
IN ASSEMBLY
January 15, 2009
___________
Introduced by M. of A. PHEFFER, SILVER, COOK, AUBRY, GREENE, DINOWITZ,
P. RIVERA, GABRYSZAK -- Multi-Sponsored by -- M. of A. ALFANO, BARRA,
CLARK, COLTON, CYMBROWITZ, DIAZ, FARRELL, GALEF, GANTT, GIANARIS,
GLICK, GOTTFRIED, HIKIND, HOYT, JACOBS, MAYERSOHN, McENENY, MILLMAN,
ORTIZ, TOWNS, WRIGHT -- read once and referred to the Committee on
Consumer Affairs and Protection
AN ACT to amend the general business law, the vehicle and traffic law,
and the insurance law, in relation to providing for the registration
and regulation of rental vehicle companies; to amend the insurance
law, and the vehicle and traffic law, in relation to making technical
corrections thereto and repealing certain provisions of the general
business law relating to requirements for the rental of 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 article
2 12-A to read as follows:
3 ARTICLE 12-A
4 RENTAL VEHICLE COMPANIES
5 Section 210. Statement of purpose.
6 211. Definitions.
7 212. Registration of rental vehicle companies.
8 213. Application for registration.
9 214. Registration fees.
10 215. Business reorganization.
11 216. Grounds for suspension, revocation, and refusal to issue
12 or to renew a registration.
13 216-a. Hearings; temporary suspension; subpoenas.
14 216-b. Additional penalties.
15 216-c. Unregistered operation; operation while suspended or
16 revoked; procedure and penalties.
17 216-d. Administrative review.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05323-02-9
A. 2283 2
1 216-e. Improper display of registration sign.
2 216-f. Discrimination prohibited.
3 216-g. Other rental vehicle protections.
4 216-h. Display of renter protection sign.
5 216-i. Private right of action.
6 216-j. Powers of the commissioner.
7 § 210. Statement of purpose. The purposes of this article are to
8 discourage discriminatory practices by those engaged in business as a
9 rental vehicle company and to protect consumers of this state from
10 dishonest, deceptive, fraudulent, and otherwise unlawful practices in
11 the rental of such motor vehicles. These purposes will be accomplished
12 by the enactment of legislation which requires the registration of those
13 engaged in business as rental vehicle companies and excludes from that
14 business those persons who engage in such unlawful practices or who
15 otherwise demonstrate unfitness for that business.
16 § 211. Definitions. The following terms, when used in this article,
17 mean and include:
18 1. "Accident report form" refers to the procedures and forms required
19 pursuant to section six hundred five of the vehicle and traffic law or
20 any substantially similar appropriate form furnished by the rental vehi-
21 cle company.
22 2. "Applicant" means any person, firm, company, partnership, associ-
23 ation, limited liability company, corporation, or other entity which
24 applies to the commissioner for a certificate of registration to engage
25 in business as a rental vehicle company.
26 3. "Authorized driver" means:
27 (a) the person to whom the vehicle is rented if such person is a
28 licensed driver;
29 (b) such person's spouse if such person is licensed and at least eigh-
30 teen years of age;
31 (c) any person who operates the vehicle during an emergency situation,
32 driving to a medical facility; or
33 (d) any licensed driver expressly listed on the rental agreement as an
34 authorized driver.
35 4. "Commissioner" means the commissioner of motor vehicles.
36 5. "Credit card" means any credit card, credit plate, charge plate, or
37 other identification card or device which is issued by a person to
38 another person, as the holder thereof, and which may be used by such
39 holder to obtain a cash advance, loan or credit or to purchase or rent
40 property or services on the credit of the person issuing the credit card
41 or of the holder.
42 6. "Department" means the department of motor vehicles.
43 7. "Past driving history" means a compilation of information pertain-
44 ing to any authorized driver's prior accidents while driving a motor
45 vehicle or violations of any law or regulation of this or any other
46 state pertaining to motor vehicles.
47 8. "Person" means an individual, corporation, partnership, joint
48 venture, limited liability company, association, company, trust, unin-
49 corporated organization, or other entity and includes any other person
50 that has a substantial interest in or effectively controls such person,
51 as well as the individual officers, directors, general partners, trus-
52 tees, or other individuals in control of the activities of each such
53 person.
A. 2283 3
1 9. "Registrant" means any person properly registered with the depart-
2 ment of motor vehicles to engage in business as a rental vehicle compa-
3 ny.
4 10. "Rental agreement" means any written agreement setting forth the
5 terms and conditions governing an authorized driver's use of a rental
6 vehicle for a period not to exceed thirty continuous days.
7 11. "Rental vehicle" has the same meaning defined by section one
8 hundred thirty-seven-a of the vehicle and traffic law.
9 12. "Rental vehicle company" means any person, firm, company, partner-
10 ship, limited liability company, association, corporation, or other
11 entity, whether independently owned and operated or otherwise, which
12 engages in the business of providing rental vehicles to the public from
13 a location in this state.
14 § 212. Registration of rental vehicle companies. 1. No person shall
15 engage in business as a rental vehicle company unless such person has
16 registered with the department in accordance with the provisions of this
17 article and has obtained a certificate of registration issued by the
18 commissioner.
19 2. The commissioner is hereby authorized to register applicants to
20 engage in business as a rental vehicle company. Such registration shall
21 be effective for two years and subject to renewal for additional two
22 year periods at the expiration of each two year period. Such registra-
23 tion may only be issued in accordance with this article.
24 § 213. Application for registration. 1. The application for registra-
25 tion under this article shall be filed with the commissioner in such
26 form and detail as the commissioner shall prescribe, setting forth:
27 (a) Name and residential address of applicant; if an individual, the
28 name under which he or she intends to conduct business; if a partner-
29 ship, the name and residential address of each member thereof, and the
30 name under which the business is to be conducted; if a corporation where
31 stock is not sold to the public on a stock exchange or over-the-counter
32 market, the name of the corporation, the name and residential address of
33 each of the officers, directors, and stockholders of the corporation
34 holding more than ten percent of the outstanding stock, and the name
35 under which the business is to be conducted if different from the name
36 of the corporation; if a corporation whose stock is sold to the public
37 on a stock exchange or over-the-counter market, the name and business
38 address of the corporation, the name under which the business is to be
39 conducted if different from the corporate name, and a separate statement
40 that the corporation is either registered in New York or is authorized
41 to do business in the state if a limited liability company, the name of
42 the limited liability company, the name and residential address of each
43 of the members of the limited liability company, and the name under
44 which the business is to be conducted if different from the name of the
45 limited liability company.
46 (b) The appropriate certification or documentation from the munici-
47 pality where the rental vehicle company is located that the facility is
48 in compliance with applicable zoning and planning regulations, fire
49 regulations, and building codes. It shall be the responsibility of the
50 applicant to provide such documentation to the commissioner. The commis-
51 sioner may waive this requirement for applicants from municipalities
52 without such codes or regulations.
53 (c) The place or places, including the complete address or addresses,
54 where the business is to be conducted.
55 (d) Such further information as the commissioner may reasonably
56 prescribe.
A. 2283 4
1 2. Before an application for an original certificate of registration
2 is approved, the applicant must have upon the premises to be registered
3 adequate space and proper facilities to retain and safeguard all records
4 and documents that must be maintained upon the registered premises, as
5 required by the vehicle and traffic law and the regulations of the
6 commissioner.
7 3. The commissioner may require the applicant for registration to
8 appear at such time and place as may be designated by the commissioner
9 to enable him or her to determine the accuracy of the facts set forth in
10 the written application, either for initial registration or renewal
11 thereof.
12 4. Every application under this section shall be verified by the
13 applicant.
14 § 214. Registration fees. Every original application for registration
15 as a rental vehicle company shall be accompanied by an application fee
16 of twenty-five dollars, which shall in no event be refunded. If an
17 application is approved by the commissioner, upon payment by the appli-
18 cant of an additional fee of one hundred fifty dollars for each place of
19 business, the applicant shall be granted a certificate of registration
20 for each place of business, which certificate or certificates shall be
21 valid for a period of two years. The commissioner may, at his or her
22 discretion, issue such certificates of registration on a staggered expi-
23 ration basis, in which event the fees set forth in this section shall be
24 prorated on a monthly basis. In the event that a certificate of regis-
25 tration is issued on a staggered basis, it shall expire on the date
26 fixed by the commissioner. The biennial fee for renewal of any certif-
27 icate of registration issued pursuant to this article shall be one
28 hundred fifty dollars. The commissioner shall issue a certificate of
29 registration to each applicant pursuant to the provisions of this arti-
30 cle, which certificate shall be conspicuously displayed in the place of
31 business of the registrant for which such registration is issued. In the
32 case of loss, mutilation, or destruction of a certificate of registra-
33 tion, the commissioner shall, upon application, issue a duplicate
34 certificate thereof upon proof of facts.
35 § 215. Business reorganization. 1. If a certificate of registration
36 under this article is issued in the names of two or more persons as
37 partners and a change occurs in the membership of such partnership, the
38 registration shall not expire if any one of the persons named in such
39 registration is a member of the partnership or carries on the business
40 of the partnership as a surviving member of the partnership. When any
41 such change occurs and the registration does not expire, the partners or
42 the surviving members after such change shall forthwith file with the
43 commissioner a statement regarding such partnership in such form and
44 giving such information as the commissioner shall require, and the
45 commissioner shall issue a new certificate of registration.
46 2. If a certificate of registration under this article is issued and,
47 subsequent thereto, the business name of any such rental vehicle company
48 is changed, or in the event that the owners of a business incorporate
49 such business with no change in the actual ownership and operation ther-
50 eof, such registration shall not expire. Such owner or owners thereof
51 shall forthwith file with the commissioner a statement regarding the
52 change of name in such form and with such information as the commission-
53 er shall require.
54 3. If a certificate of registration under this article is issued in
55 the name of a limited liability company and a change occurs in the
56 membership of such limited liability company, the registration shall not
A. 2283 5
1 expire if any one of the persons named as a member of such limited
2 liability company in the application for registration is a member of the
3 limited liability company. When any such change occurs and the registra-
4 tion does not expire, the limited liability company shall forthwith file
5 with the commissioner a statement regarding such limited liability
6 company in such form and giving such information as the commissioner
7 shall require, and the commissioner shall issue a new certificate of
8 registration.
9 § 216. Grounds for suspension, revocation, and refusal to issue or to
10 renew a registration. The commissioner, or any person deputized by him
11 or her, may deny any application for registration under this article,
12 suspend or revoke a registration under this article, or refuse to issue
13 a renewal thereof if he or she or such deputy determines that such
14 applicant or registrant, or any officer, director, stockholder, partner,
15 or member:
16 1. has made a materially false statement in his or her application or
17 concealed a material fact in connection with such application; or
18 2. has been guilty of fraud or fraudulent practices, or has practiced
19 dishonest or misleading advertising as provided in article twenty-two-A
20 of this chapter; or
21 3. has failed to comply with any of the rules and regulations of the
22 commissioner for the enforcement of this article or with any provision
23 of this article, including, but not limited to, section two hundred
24 sixteen-f, section two hundred sixteen-g, or section two hundred
25 sixteen-h of this article; or
26 4. has been convicted of any crime involving dishonesty or deceit; or
27 5. was a former holder, or was an officer, director, stockholder,
28 partner, or member in a corporation, partnership, or limited liability
29 company which was the former holder of a rental vehicle company's regis-
30 tration, which was revoked by the commissioner or, at the time of appli-
31 cation, suspended by the commissioner; or
32 6. has failed to comply with any requirements established by section
33 four hundred one, four hundred two, four hundred seventeen-a, or twelve
34 hundred twenty-nine of the vehicle and traffic law or section twenty-one
35 hundred thirty-one of the insurance law, where applicable, and section
36 thirty-four hundred forty of the insurance law.
37 § 216-a. Hearings; temporary suspension; subpoenas. 1. No registration
38 shall be suspended or revoked, renewal refused, or application denied
39 pursuant to section two hundred sixteen of this article and no penalty
40 shall be imposed pursuant to section two hundred sixteen-b or two
41 hundred sixteen-c of this article, except upon notice by certified mail
42 to the registrant, applicant, or any person who operates an unregistered
43 rental vehicle company and after an opportunity to be heard before an
44 officer or employee of the department designated for such purpose by the
45 commissioner; provided, however, that, where a notice of hearing is
46 mailed to a registrant at the address shown in the records of the
47 department and such registrant fails to attend such hearing, the commis-
48 sioner may suspend such registration pending the registrant's attendance
49 at such hearing. Requests for adjournment of such hearings shall be
50 granted in accordance with regulations promulgated by the commissioner.
51 A suspension pending attendance at a hearing shall not be appealable;
52 provided, however, that, upon a written notice of temporary suspension
53 delivered by certified mail to the registrant, a registration may be
54 temporarily suspended pending a hearing. Any such notice of temporary
55 suspension shall provide that the suspension is effective seventy-two
56 hours after mailing of such notice and shall provide that a hearing be
A. 2283 6
1 scheduled within ten days after the effective date of the temporary
2 suspension.
3 2. The applicant or registrant may be heard in person or by counsel.
4 The hearing shall be at such time and place as the commissioner shall
5 prescribe. The commissioner or the commissioner's designee may inspect
6 the pertinent books, records, letters, and contracts of a registrant
7 relating to any written complaint or charge against such registrant. The
8 commissioner or the commissioner's designee shall have the power to
9 subpoena and bring before a hearing officer any person in this state and
10 administer an oath to and take testimony of any person or cause the
11 person's deposition to be taken. A subpoena issued under this section
12 shall be regulated by the civil practice law and rules.
13 3. (a) Following the suspension or revocation of the certificate of
14 registration of a rental vehicle company pursuant to section two hundred
15 sixteen of this article, the failure of the holder or any other person
16 possessing the certificate of registration to deliver the same along
17 with a certified copy of the order revoking or suspending such registra-
18 tion to the agent or officer directed by the commissioner to secure
19 possession thereof, or agent of the commissioner, displaying authori-
20 zation to act in such capacity, shall be subject to a civil penalty in
21 the sum of one thousand dollars.
22 (b) If any person fails to deliver a certificate of registration, the
23 commissioner shall forthwith direct any peace officer acting pursuant to
24 his or her special duties or police officer to secure possession thereof
25 and to return the same to the commissioner.
26 (c) In the event that a certificate of registration is revoked or an
27 application is denied, no such certificate shall be issued to such
28 former registrant or applicant for at least six months, nor thereafter,
29 except in the discretion of the commissioner.
30 § 216-b. Additional penalties. 1. The commissioner, or any person
31 deputized by him or her, in addition to or in lieu of revoking or
32 suspending the certificate of registration of a registrant in accordance
33 with the provisions of this article, may, in any one proceeding, by
34 order, require the registrant to pay to the people of the state a civil
35 penalty in a sum not exceeding one thousand dollars for each violation
36 as provided in section two hundred sixteen of this article; provided,
37 however, that, if a finding of financial loss has been made pursuant to
38 subdivision three of this section, the amount of such penalty may be
39 increased by the amount of financial loss so found; provided however,
40 further that, if such registrant fails to pay such financial loss so
41 found or upon the failure of such registrant to pay such civil penalty
42 within thirty days after the mailing of such order, postage prepaid,
43 registered or certified, and addressed to the last known place of busi-
44 ness of such registrant, unless such order is stayed by an order of a
45 court of competent jurisdiction, the commissioner may revoke the certif-
46 icate of registration of such registrant or may suspend the same for a
47 period of no longer than six months. Civil penalties assessed under
48 this section shall be paid to the commissioner for deposit into the
49 state treasury, and unpaid civil penalties may be recovered by the
50 commissioner in a civil action in the name of the commissioner.
51 2. In addition, as an alternative to such civil action and provided
52 that no proceeding for judicial review is then pending and the time for
53 initiation of such proceeding has expired, and further provided that any
54 opportunities for administrative hearings and appeals thereof provided
55 for in this article have been exhausted, the commissioner may file with
56 the county clerk of the county in which the registrant is located a
A. 2283 7
1 final order of the commissioner containing the amount of the penalty
2 assessed. The filing of such final order shall have the full force and
3 effect of a judgment duly docketed in the office of such clerk and may
4 be enforced in the same manner and with the same effect as that provided
5 by law with respect to executions issued against property upon judgments
6 of a court of record.
7 3. (a) Upon a determination that a registrant has done or failed to do
8 any act for which suspension or revocation of the registrant's registra-
9 tion or a civil penalty against the registrant could be imposed, the
10 person making such determination may make a finding of financial loss to
11 any complainant or complainants resulting from the actions or omissions
12 of the registrant. The person making such finding may provide that if
13 the registrant makes restitution to the complainant or complainants for
14 the amount or amounts so found, then payment of such restitution may be
15 substituted in lieu of any suspension, revocation, or civil penalty, or
16 a specified portion of such civil penalty imposed upon the registrant. A
17 finding of financial loss may only be made if the complainant:
18 (i) agrees to accept the amount so found, if offered by the regis-
19 trant, and
20 (ii) is not a party to any litigation which is pending or which has
21 gone to judgment in relation to the same matter in any civil court.
22 (b) The amount of financial loss which may be found and proposed as
23 restitution shall be limited to an amount necessary to compensate the
24 complainant or complainants for actual losses caused by the registrant's
25 improper activity or omission. Neither punitive nor incidental damages
26 may be included in the finding of financial loss.
27 4. If payment of restitution to the complainant is authorized in lieu
28 of a suspension, revocation, or all or a portion of a civil penalty, for
29 the registrant to exercise the option to make such payment, such payment
30 must be made by means of a certified check or money order payable to the
31 complainant or complainants delivered to an office of the department as
32 directed by the commissioner or his or her agent within thirty days of
33 the date of notice of suspension, revocation, or civil penalty. Upon
34 receipt of such certified check or money order, the department shall
35 forward the same to the complainant or complainants.
36 5. If payment of restitution may be substituted in lieu of a civil
37 penalty or portion of a civil penalty, and the registrant does not exer-
38 cise the option to make such payment, the civil penalty shall become due
39 as provided in subdivision one of this section relating to suspension of
40 registration, and the provisions of subdivision two of this section
41 relating to the recovery of civil penalties shall apply.
42 § 216-c. Unregistered operation; operation while suspended or revoked;
43 procedure and penalties. 1. The commissioner or any person deputized by
44 him or her shall hear and determine any allegation that a person has
45 operated as a rental vehicle company without being registered as
46 required by section two hundred twelve of this article or while such
47 registration is suspended or revoked. Upon a determination that a person
48 has so operated, the commissioner or person deputized by him or her
49 shall assess civil penalties as provided in subdivisions two and three
50 of this section.
51 2. Except as provided in paragraph (b) of subdivision three of this
52 section, any person who operates as a rental vehicle company without
53 being registered shall be required to pay to the people of this state a
54 civil penalty in the sum of one thousand dollars. Any such person
55 against whom such penalty has been assessed may, however, avoid all but
56 five hundred dollars of such penalty by obtaining a registration as
A. 2283 8
1 required by this article; provided that application for such registra-
2 tion is made not more than ten days after the imposition of such penal-
3 ty.
4 3. (a) (i) Any person who operates as a rental vehicle company while
5 his, her, or its registration is revoked or suspended shall pay to the
6 people of this state a civil penalty in the sum of one thousand dollars.
7 Such civil penalty may not be avoided.
8 (ii) Any person who operates as a rental vehicle company while his,
9 her, or its registration is revoked or suspended who has previously had
10 a civil penalty assessed for operating while his, her, or its registra-
11 tion was revoked or suspended shall pay to the people of this state a
12 civil penalty in the sum of two thousand dollars. Such civil penalty may
13 not be avoided.
14 (b) Any person who operates as a rental vehicle company without being
15 registered as required by section two hundred twelve of this article who
16 has previously had a civil penalty assessed for unregistered operation
17 shall pay to the people of this state a civil penalty in the sum of two
18 thousand dollars. Such civil penalty may not be avoided.
19 4. The commissioner, or any person deputized by him or her, in addi-
20 tion to imposing a civil penalty for unregistered operation as a rental
21 vehicle company, may, in any one proceeding, make a determination that
22 the unregistered rental vehicle company has caused a financial loss to a
23 complainant or complainants and may increase the penalty by the amount
24 of such financial loss. The person making such finding may provide that
25 if the unregistered rental vehicle company makes restitution to the
26 complainant or complainants for the amount or amounts so found, then
27 payment of such restitution may be substituted for the increase in the
28 penalty caused by the finding of financial loss. A finding of financial
29 loss may only be made if the complainant:
30 (a) agrees to accept the amount so found, if offered by the unregis-
31 tered rental vehicle company, and
32 (b) is not a party to any litigation which is pending or in which
33 judgment has been entered in any civil action in any court of competent
34 jurisdiction.
35 5. Civil penalties assessed under this section shall be paid to the
36 commissioner for deposit into the state treasury, and unpaid civil
37 penalties may be recovered by the commissioner in a civil action in the
38 name of the commissioner. In addition, as an alternative to such civil
39 action and provided that no proceeding for judicial review is then pend-
40 ing and the time for initiation of such proceeding has expired, and
41 further provided that any opportunities for administrative hearings and
42 appeals thereof have been exhausted, the commissioner may file with the
43 county clerk of the county in which the registrant or unregistered
44 person is located a final order of the commissioner containing the
45 amount of the penalty assessed. The filing of such final order shall
46 have the full force and effect of a judgment duly docketed in the office
47 of such clerk and may be enforced in the same manner and with the same
48 effect as that provided by law in respect to executions issued against
49 property upon judgments of a court of record.
50 § 216-d. Administrative review. 1. Appeals board. The commissioner
51 shall appoint three or more appeals officers, to serve at his or her
52 pleasure, and shall select a chairperson for each appeals board from the
53 members so appointed. Appeals officers who are not full time employees
54 of the department shall be attorneys admitted to practice in New York
55 state. The commissioner shall assign at least three appeals officers to
56 serve on each appeals board established to hear appeals pursuant to this
A. 2283 9
1 section. Any appeals officer who is not a full time employee of the
2 department shall receive a per diem at a rate to be fixed by the commis-
3 sioner, with the approval of the director of the budget, for each day he
4 or she serves on an appeals board, in addition to all necessary
5 expenses. The commissioner shall also designate such other members of
6 the department as may be necessary to assist an appeals board in carry-
7 ing out its assigned functions.
8 2. Right of appeal. (a) Any person who is aggrieved by a determination
9 of a hearing officer pursuant to this article may appeal such determi-
10 nation pursuant to the provisions of this section.
11 (b) Except as otherwise provided in this subdivision, a transcript of
12 the hearing resulting in the determination appealed from must be submit-
13 ted on any such appeal.
14 (c) If the only issue raised on appeal is the appropriateness of the
15 penalty imposed, the appellant, in his or her discretion, may submit
16 such appeal without a transcript of the hearing. In such event, the
17 decision of the appeals board may be based solely on the appeal papers
18 and the records of the department, and such decision shall not be
19 subject to judicial review.
20 (d) Where a transcript of the hearing is submitted at the time an
21 appeal is filed, the determination of the appeals board shall be subject
22 to judicial review as prescribed in subdivision nine of this section.
23 3. Appeals boards. Each appeal filed pursuant to this section shall be
24 reviewed by an appeals board, which shall make a determination of such
25 appeal and shall cause an appropriate order to be entered in the records
26 of the department.
27 4. Time limitations. No appeal shall be reviewed if it is filed more
28 than thirty days after notice was given of the determination appealed
29 from.
30 5. Appeal procedures. Any person desiring to file an appeal from an
31 adverse determination pursuant to this section, shall do so in a form
32 and manner provided by the commissioner. The transcript of any hearing
33 which formed the basis for such determination shall be reviewed only if
34 it is submitted by the appellant. An appeal shall not be deemed to be
35 finally submitted until the appellant has submitted all forms or docu-
36 ments required to be submitted by the commissioner or this section.
37 6. Transcript of hearings. Transcripts of the record of any hearing
38 may be obtained at the cost to the department, if prepared by the
39 department, or at the rate specified in the contract between the depart-
40 ment and the contractor, if prepared by a private contractor. The amount
41 paid as such cost or at such rate by a person convicted who submits,
42 upon an appeal from the determination of guilt, or upon such appeal and
43 upon a review pursuant to the provisions of article seventy-eight of the
44 civil practice law and rules, a transcript of the hearing or hearings
45 which resulted in such determination, shall be refunded by the depart-
46 ment upon a final determination by the appeals board, dismissing the
47 charges, or if the charges were sustained by the appeals board, upon a
48 final determination by the court, dismissing the charges.
49 7. Fees. The fee for filing an appeal shall be ten dollars. No appeal
50 shall be accepted unless the required fee has been paid.
51 8. Stays pending appeal. Whenever a determination has not been made
52 within thirty days after an appeal has been finally submitted, a stay of
53 execution will be deemed granted by operation of law, and the license,
54 certificate, permit, or privilege affected will be automatically
55 restored pending final determination.
A. 2283 10
1 9. Judicial review. (a) No determination of a hearing officer which
2 is appealable under the provisions of this section shall be reviewed in
3 any court unless an appeal has been filed and determined in accordance
4 with this section.
5 (b) A determination of the appeals board in any case where a tran-
6 script of the hearing has been submitted shall be subject to review
7 pursuant to the provisions of article seventy-eight of the civil prac-
8 tice law and rules; provided, however, that a statement by the hearing
9 officer at the conclusion of the hearing indicating that the charges
10 have been sustained and announcing the penalty imposed, together with a
11 summary of the reasons the appeal was denied by the appeals board, shall
12 constitute sufficient findings for the purpose of such review.
13 § 216-e. Improper display of registration sign. 1. The holder of a
14 rental vehicle company registration whose registration is revoked or
15 suspended or whose rental vehicle company is out of business shall
16 remove or cause to be removed any sign which contains the registration
17 number of the rental vehicle company which is visible to the public and
18 which is required to be displayed by this article or regulations promul-
19 gated pursuant to this article. If the registration is only suspended,
20 the holder may cover up the sign instead of removing it.
21 2. No person shall permit the display of any sign required to be
22 displayed by this article or regulations promulgated pursuant to this
23 article indicating to the public that an official rental vehicle company
24 is operating unless a rental vehicle company registration has been
25 issued to that person and is currently valid.
26 § 216-f. Discrimination prohibited. 1. (a) It is unlawful for any
27 rental vehicle company to engage in any of the following practices on
28 the basis of the race, creed, religion, color, ethnic origin, sex, sexu-
29 al orientation, marital status, or disability of the person attempting
30 to enter into such rental agreement:
31 (i) refuse to rent such vehicle;
32 (ii) impose any additional charge for the rental of such motor vehi-
33 cle; or
34 (iii) impose any additional terms, conditions, or privileges upon the
35 rental of such vehicle.
36 (b) Notwithstanding any charges authorized by paragraph (b) of subdi-
37 vision eight of section two hundred sixteen-g of this article, it is
38 unlawful for any rental vehicle company, in response to a request from a
39 person with a disability, to fail to make any reasonable effort to
40 provide such person, free of charge, with any accessories necessary for
41 such person to operate such vehicle. For purposes of this subdivision, a
42 reasonable effort is any effort that does not incur an unduly burdensome
43 expense.
44 2. It is unlawful for any rental vehicle company to engage in any of
45 the following practices on the basis of the age of the person attempting
46 to enter into such rental agreement, including on the basis of such
47 person's being either over the age of sixty or under the age of twenty-
48 five; provided that such person is at least eighteen years of age and
49 that insurance coverage for persons of such age is available:
50 (a) refuse to rent such vehicle;
51 (b) impose any additional charge for the rental of such vehicle,
52 except that any actual extra cost for insurance related to the age of
53 the person renting such motor vehicle may be passed on to such person in
54 accordance with rules and regulations promulgated by the superintendent
55 of insurance pursuant to section thirty-four hundred forty of the insur-
56 ance law; or
A. 2283 11
1 (c) impose any additional terms, conditions, or privileges upon the
2 rental of such vehicle.
3 3. (a) It shall be unlawful for any rental vehicle company to engage
4 in any of the following practices on the basis of the lack of ownership
5 of a credit card by the person attempting to enter into such rental
6 agreement:
7 (i) refuse to rent such vehicle;
8 (ii) impose any additional charge for the rental of such motor vehi-
9 cle; or
10 (iii) impose any additional terms, conditions, or privileges upon the
11 rental of such vehicle, except that any rental vehicle company may
12 require a person attempting to enter into a rental agreement without a
13 credit card to submit a cash deposit as limited by subdivision five of
14 section two hundred sixteen-g of this article.
15 (b) Any rental vehicle company which requires a person attempting to
16 enter into a rental agreement without a credit card to satisfy cash
17 qualification criteria in order to qualify as a cash customer shall:
18 (i) comply with an internal policy in compliance with this subdivi-
19 sion; and
20 (ii) provide prompt notice to each authorized driver requesting a
21 reservation without a credit card that the company may require such
22 driver to satisfy such cash qualification criteria, and that a copy of
23 the company's internal policy is available upon request. As used in this
24 subparagraph, "prompt notice" means in the same telephone conversation
25 as the driver's request to reserve the motor vehicle if such request is
26 made by telephone, in the same in person conversation as the driver's
27 request to reserve the motor vehicle if such request is made in person,
28 and by a written notice in plain language mailed on the same business
29 day of the driver's request to reserve the motor vehicle if such request
30 is made in writing.
31 (c) Nothing in this subdivision shall preclude a rental vehicle compa-
32 ny from making an initial determination to refuse to rent to an author-
33 ized driver due to his or her failure to satisfy the company's cash
34 qualification criteria; provided that:
35 (i) such refusal is based on reliable information that such driver did
36 not satisfy the company's cash qualification criteria;
37 (ii) such refusal was in compliance with the company's internal poli-
38 cy;
39 (iii) such driver is afforded the right to rebut such determination by
40 furnishing the company with reliable information and such right as
41 described in the written notice of denial or the written confirmation of
42 denial, as applicable, prescribed by paragraphs (d) and (e) of this
43 subdivision;
44 (iv) the company makes a new determination in good faith based on such
45 new information within one week thereafter; and
46 (v) the company is otherwise in compliance with paragraphs (d), (e),
47 and (f) of this subdivision.
48 (d) If the authorized driver's request to reserve a motor vehicle is
49 made four or more days prior to the requested hour of departure, such
50 company shall make an initial determination, and, in the event of an
51 initial determination to refuse to rent, inform such driver through a
52 written notice of denial mailed seven days after the request is made or
53 three days prior to the scheduled hour of departure, whichever is earli-
54 er. Such written notice of denial shall state the source of the informa-
55 tion which forms the basis for the refusal and the basis for such
56 refusal and is accompanied by the internal policy.
A. 2283 12
1 (e) If the authorized driver's request to reserve a motor vehicle is
2 made three or fewer days prior to the requested hour of departure, such
3 company shall make an initial determination, and, in the event of an
4 initial determination to refuse to rent, provide oral notice of denial
5 within twelve hours of the request. Such oral notice of denial shall be
6 followed within twenty-four hours thereafter with a written confirmation
7 of denial which states the source of the information which forms the
8 basis for the refusal and the basis of such refusal and is accompanied
9 by a copy of the internal policy.
10 (f) Any company which refuses to rent to an authorized driver due to
11 such driver's failure to satisfy the company's cash qualification crite-
12 ria shall maintain all information relevant to the company's determi-
13 nation for a period of at least one year after such refusal. Any company
14 which makes an initial determination under paragraph (c) of this subdi-
15 vision but reverses such determination based on new information shall
16 maintain all information relevant to the company's determination,
17 including the information which formed the basis for the reversal, in
18 the company's records and shall adhere to such reversal for at least one
19 year or the period such information is relevant under the company's
20 internal policy, whichever is longer. Nothing in this paragraph shall
21 require any rental vehicle company to maintain any information if the
22 driver requests or authorizes that such information be deleted from the
23 company's records.
24 (g) An authorized driver's cash qualification shall be considered to
25 be based on reliable information under subparagraph (i) of paragraph (c)
26 of this subdivision if the information was furnished to the rental vehi-
27 cle company by:
28 (i) the authorized driver;
29 (ii) the person who executes the rental agreement; or
30 (iii) a consumer reporting agency, as defined in section three hundred
31 eighty-a of this chapter.
32 (h) Any rental vehicle company which refuses to rent a motor vehicle
33 to any authorized driver due to such driver's failure to satisfy the
34 company's cash qualification criteria shall make available at all rental
35 locations to any person, promptly upon request, the company's internal
36 policy, which shall include, at a minimum:
37 (i) the standards used by the company to deny rentals;
38 (ii) the types of reliable information which, pursuant to subparagraph
39 (i) of paragraph (c) of this subdivision, the company may use to make an
40 initial determination and which, pursuant to subparagraph (iii) of para-
41 graph (c) of this subdivision, the authorized driver may use to rebut
42 the company's initial determination to refuse to rent;
43 (iii) a plain language statement of the procedures the authorized
44 driver must undertake to rebut an initial determination to refuse to
45 rent, which shall be sufficient to apprise a reasonable authorized driv-
46 er how to undertake such procedure and which shall include a telephone
47 number and the address of the company location where rebuttals may be
48 directed;
49 (iv) a plain language description of the provisions of this subdivi-
50 sion;
51 (v) a statement that complaints as to violations of this subdivision
52 may be filed with the attorney general;
53 (vi) a description of the right of injured persons to bring actions
54 under section two hundred sixteen-i of this article; and
55 (vii) a description of the penalties provided in law for violations of
56 this article.
A. 2283 13
1 (i) As used in this subdivision, "initial determination" means the
2 first decision following a request to reserve a motor vehicle as to
3 whether or not a rental vehicle company will rent to an authorized driv-
4 er due to such driver's satisfaction of the company's cash qualification
5 criteria, which shall be rebuttable as provided in this subdivision.
6 4. It is unlawful for any rental vehicle company to engage in any of
7 the following practices on the basis of the geographical location of the
8 residence of the person attempting to enter into such rental agreement:
9 (a) refuse to rent such vehicle;
10 (b) impose any additional charge for the rental of such motor vehicle;
11 or
12 (c) impose any additional terms, conditions, or privileges upon the
13 rental of such vehicle.
14 5. (a) It is unlawful for any rental vehicle company to engage in any
15 of the following practices on the basis of the past driving history of
16 the person attempting to enter into such rental agreement, unless such
17 practices are in compliance with this subdivision:
18 (i) refuse to rent such vehicle;
19 (ii) impose any additional charge for the rental of such motor vehi-
20 cle; or
21 (iii) impose any additional terms, conditions, or privileges upon the
22 rental of such vehicle.
23 (b) Any rental vehicle company which engages in any of the practices
24 listed in paragraph (a) of this subdivision due to, in whole or in part,
25 the past driving history of such driver shall:
26 (i) comply with an internal policy in compliance with this subdivi-
27 sion; and
28 (ii) provide prompt notice to each authorized driver requesting a
29 reservation that the company considers an authorized driver's past driv-
30 ing history in deciding whether or not to rent to such driver and in the
31 establishment of rental policies and that a copy of the company's inter-
32 nal policy is available upon request. As used in this subparagraph,
33 "prompt notice" means in the same telephone conversation as the driver's
34 request to reserve the motor vehicle if such request is made by tele-
35 phone, in the same in person conversation as the driver's request to
36 reserve the motor vehicle if such request is made in person, and by a
37 written notice in plain language mailed on the same business day of the
38 driver's request to reserve the motor vehicle if such request is made in
39 writing.
40 (c) Nothing in this subdivision shall preclude a rental vehicle compa-
41 ny from making an initial determination to engage in any of the prac-
42 tices listed in paragraph (a) of this subdivision due to a driver's past
43 driving history based on an initial presumption that the internal policy
44 was violated; provided that:
45 (i) such practice was based on reliable information that such driver
46 had an accident while driving a motor vehicle or on reliable information
47 that such driver violated any law or regulation of this or any other
48 state pertaining to motor vehicles;
49 (ii) such practice was in compliance with the company's internal
50 policy;
51 (iii) such driver is afforded the right to rebut such determination by
52 furnishing the company with a police report, a criminal or civil deci-
53 sion by a court or arbitrator, an insurance company determination, or
54 other similar, reliable information and such right is described in the
55 written notice or the written confirmation, as applicable, prescribed by
56 paragraphs (d) and (e) of this subdivision;
A. 2283 14
1 (iv) the company makes a new determination in good faith based on such
2 new information within one week thereafter; and
3 (v) the company is otherwise in compliance with paragraphs (d), (e),
4 and (f) of this subdivision.
5 Nothing in this paragraph requires a company to permit a driver to
6 rebut an initial determination based on a claim that a governmental
7 entity which found the driver in violation of a motor vehicle law or
8 regulation was incorrect in its finding.
9 (d) If the authorized driver's request to reserve a motor vehicle is
10 made four or more days prior to the requested hour of departure, such
11 company shall make an initial determination and, in the event of an
12 initial determination to engage in any of the practices listed in para-
13 graph (a) of this subdivision, inform such driver through a written
14 notice mailed seven days after the request is made or three days prior
15 to the scheduled hour of departure, whichever is earlier. Such written
16 notice shall state the source of the information which forms the basis
17 for the practice and the basis for such practice and be accompanied by
18 the internal policy.
19 (e) If the authorized driver's request to reserve a motor vehicle is
20 made three or fewer days prior to the requested hour of departure, such
21 company shall make an initial determination and, in the event of an
22 initial determination to engage in any of the practices listed in para-
23 graph (a) of this subdivision, provide oral notice within twelve hours
24 of the request. Such oral notice shall be followed within twenty-four
25 hours thereafter with a written confirmation which states the source of
26 the information which forms the basis for the practice and the basis of
27 such practice and is accompanied by a copy of the internal policy.
28 (f) Any company which engages in any of the practices listed in para-
29 graph (a) of this subdivision due to past driving history shall maintain
30 all information relevant to the company's determination for a period of
31 at least one year after engaging in such practice. Any company which
32 makes an initial determination under paragraph (c) of this subdivision
33 but reverses such determination based on new information shall maintain
34 all information relevant to the company's determination, including the
35 information which formed the basis for the reversal, in the company's
36 records and adhere to such reversal for at least one year or the period
37 such information is relevant under the company's internal policy, which-
38 ever is longer. Nothing in this paragraph requires any rental vehicle
39 company to maintain any information if the driver requests or authorizes
40 that such information be deleted from the company's records.
41 (g) An authorized driver's past driving history shall be considered to
42 be based on reliable information under subparagraph (i) of paragraph (c)
43 of this subdivision if the information was furnished to the rental vehi-
44 cle company by:
45 (i) the authorized driver;
46 (ii) the person who executes the rental agreement; or
47 (iii) a governmental entity under a legal duty to accurately compile
48 and report the information which forms the basis for the practice.
49 (h) Any rental vehicle company which engages in any of the practices
50 listed in paragraph (a) of this subdivision due to, in whole or in part,
51 the past driving history of such driver shall make available at all
52 rental locations to any person, promptly upon request, the company's
53 internal policy, which shall include, at a minimum:
54 (i) the standards used by the company to engage in such practices;
55 (ii) the types of reliable information which, pursuant to subparagraph
56 (i) of paragraph (c) of this subdivision, the company may use to make an
A. 2283 15
1 initial determination and which, pursuant to subparagraph (iii) of para-
2 graph (c) of this subdivision, the authorized driver may rebut the
3 company's initial determination to engage in such practices;
4 (iii) a plain language statement of the procedures the authorized
5 driver must undertake to rebut a company's initial determination to
6 engage in such practices, which shall be sufficient to apprise a reason-
7 able authorized driver how to undertake such procedure and which shall
8 include a telephone number and the address of the company location where
9 rebuttals may be directed;
10 (iv) a plain language description of the provisions of this subdivi-
11 sion;
12 (v) a statement that complaints as to violations of this subdivision
13 may be filed with the attorney general;
14 (vi) a description of the right of injured persons to bring actions
15 under section two hundred sixteen-i of this article; and
16 (vii) a description of the penalties provided in law for violations of
17 this article.
18 (i) Notwithstanding any provision of this subdivision, it is unlawful
19 for any rental vehicle company to engage in any of the practices listed
20 in paragraph (a) of this subdivision due to, in whole or in part, any
21 prior accident while driving a motor vehicle or any violation of any law
22 or regulation of this or any other state pertaining to motor vehicles
23 which occurred more than four years prior to the date of the driver's
24 request to rent the motor vehicle.
25 (j) As used in this subdivision, "initial determination" means the
26 first decision following a request to reserve a motor vehicle as to
27 whether or not a rental vehicle company will engage in any of the prac-
28 tices listed in paragraph (a) of this subdivision due to the past driv-
29 ing history of such driver, which shall be rebuttable as provided in
30 this subdivision.
31 § 216-g. Other rental vehicle protections. 1. No rental vehicle compa-
32 ny shall, in rental agreements not exceeding thirty continuous days,
33 hold an authorized driver liable for actual damage to, or loss of, such
34 rental vehicle (including loss of use), except where:
35 (a) the damage or loss is caused intentionally by an authorized driver
36 or the damage or loss arises out of an authorized driver's willful and
37 wanton misconduct;
38 (b) the damage or loss arises out of an authorized driver's operation
39 of the motor vehicle while intoxicated by alcohol or impaired by the use
40 of drugs within the meaning of section eleven hundred ninety-two of the
41 vehicle and traffic law;
42 (c) the damage or loss arises out of an authorized driver's partic-
43 ipation in any organized speed racing competition;
44 (d) the damage or loss arises out of the use of the vehicle when
45 carrying persons or property for hire;
46 (e) the damage or loss arises out of the use of the vehicle while an
47 authorized driver is committing a felony or otherwise engaged in a crim-
48 inal act in which the damage or loss of such vehicle is caused by such
49 criminal activity; or
50 (f) the authorized driver fails to furnish the rental vehicle company
51 with a report of an accident and the rental vehicle company complies
52 with the following procedure:
53 (i) At return of the vehicle, at the termination of a rental agree-
54 ment, or within ten days if returned by automation or after-hours, the
55 rental vehicle company shall furnish an accident report form and a
A. 2283 16
1 notice, pursuant to this paragraph, of the authorized driver's obli-
2 gation to complete the accident report form.
3 (ii) If the authorized driver declines or fails to complete the acci-
4 dent report form, the rental vehicle company shall mail within ten days
5 a notice, by certified mail, return receipt requested, and by regular
6 mail, with proof of mailing by production of a certificate of mailing
7 from the post office, along with another accident report form, together
8 with a letter stating that the authorized driver declined or otherwise
9 failed to complete the accident report form and will be held liable for
10 damages to the rental vehicle for failing to complete the accident
11 report form.
12 (iii) All notices shall be mailed to the authorized driver's address
13 stated on his or her license or to another address designated by him or
14 her.
15 (iv) The notice as required by this paragraph shall be in at least
16 twelve point bold face type and shall contain the statement "Failure to
17 fill out an accident report form within fifteen days will make the
18 authorized driver liable for damages sustained to the rental vehicle".
19 (v) Provided, further, thirty days prior to commencing an action
20 against the authorized driver, the rental vehicle company must provide
21 the authorized driver with an additional opportunity to report the acci-
22 dent by providing a further notice along with another accident report
23 form, by certified mail, return receipt requested, and by regular mail,
24 with proof of mailing by production of a certificate of mailing; and the
25 rental vehicle company shall not hold an authorized driver liable under
26 this paragraph if the authorized driver provides the rental vehicle
27 company with a completed accident report form within fifteen days of the
28 receipt of the notice.
29 2. (a) Notwithstanding the provisions of subdivision one of this
30 section and subject to the provisions of subdivision four of this
31 section, a rental vehicle company may hold an authorized driver liable
32 for actual damage to, or loss of, a rental vehicle caused by such
33 authorized driver, up to a maximum of one hundred dollars; provided
34 that:
35 (i) any claim for such damage is based on a physical survey and is
36 made upon the return of the rental vehicle, unless returned by auto-
37 mation or after-hours, which precludes such survey, in which event any
38 claim must be made within ten days after return; and
39 (ii) any charge for repair of such damage is limited to actual costs
40 and is assessed and billed separately and apart from the rental agree-
41 ment.
42 (b) For purposes of this section, "returned by automation" means a
43 return acknowledged by machine receipt and where there is no interaction
44 with rental vehicle company personnel, and "after-hours" return means a
45 return after normal business hours and in which the keys and rental
46 agreement are deposited in the rental vehicle company office.
47 3. No rental vehicle company shall directly or indirectly agree, for a
48 charge, to waive any claims against an authorized driver for any damage
49 to, or loss of, the rental vehicle (including loss of use) during the
50 term of a rental agreement not exceeding thirty continuous days.
51 4. (a) In the event of damage to a rental vehicle for which an author-
52 ized driver is responsible under subdivision one of this section and is
53 not covered by an automobile insurance policy, the rental vehicle compa-
54 ny shall charge no more than the actual cost paid by the rental vehicle
55 company in repairing such vehicle; provided, however, that, if such
56 damaged vehicle cannot be repaired because parts necessary to effect the
A. 2283 17
1 repair are not available within a reasonable period of time, the rental
2 vehicle company may charge no more than the amount in the standard motor
3 crash guide or similar insurance industry crash guides.
4 (b) For the purposes of this section "actual cost":
5 (i) means the repair price, reduced by all discounts, paid by the
6 rental vehicle company to the repairer of the vehicle; and
7 (ii) may include a reasonable factor for loss of use, based upon rates
8 applicable to the vehicle in effect at the time the rental agreement was
9 executed on the basis obtained by the authorized driver, to reflect lost
10 rental revenues, less expenses and depreciation, due to loss of use of
11 the damaged vehicle that is not a total loss, in proportion to utiliza-
12 tion rate experiences documented by the rental vehicle company for such
13 type of vehicle.
14 (c) Upon written request from the authorized driver or such authorized
15 driver's representative, including an insurer, the rental vehicle compa-
16 ny and its representative shall identify the repairer of, and provide
17 access to, the damaged vehicle to verify the nature and extent of
18 damages, repairs, and repair costs, except that the right to access
19 provided in this paragraph expires after ten business days following the
20 authorized driver's receipt of notification from the rental vehicle
21 company.
22 5. (a) No rental vehicle company may require any security, deposit,
23 or charge for damage in any form, by credit card or otherwise, during
24 the term of the rental agreement or pending resolution of any dispute.
25 (b) Any security or deposit imposed by a rental vehicle company, by
26 cash, credit card, or otherwise, used as security for the payment of the
27 rental rate, shall be limited to one hundred fifty percent of the rental
28 rate, measured as of the inception of the rental agreement. Nothing in
29 this paragraph authorizes any security, deposit, or charge prohibited by
30 paragraph (a) of this subdivision or subdivision eight of this section.
31 For the purposes of this paragraph, the term "rental rate" includes all
32 charges, except taxes and any mileage charge, which the authorized driv-
33 er must pay for the use of the rental vehicle.
34 6. No rental vehicle company shall advertise, quote, or charge a
35 rental rate that does not include all charges, except taxes and any
36 mileage charge, which an authorized driver must pay to obtain a rental
37 vehicle.
38 7. No rental vehicle company shall hold any authorized driver liable
39 for any damage to, or loss of, a rental vehicle (including loss of use),
40 as provided by this section, unless the rental vehicle company promi-
41 nently discloses, on the rental agreement, in at least ten point bold
42 face type, the nature and extent of such liability and such driver's
43 rights and responsibilities under this section.
44 8. (a) A rental vehicle company shall not charge in addition to the
45 rental rate, taxes, and mileage charge, if any, any fee which must be
46 paid as a condition of renting the rental vehicle, such as, but not
47 limited to, required fuel or airport surcharges, nor any fee for trans-
48 portation to the location where the rental vehicle will be delivered.
49 (b) In addition to the rental rate, taxes, and mileage charge, if any,
50 a rental vehicle company may charge for an item or service provided in
51 connection with a particular rental transaction if the renter could have
52 avoided incurring the charge by not choosing to obtain or utilize the
53 optional item or service, such as, but not limited to, optional accesso-
54 ries or services requested by the renter, service charges incidental to
55 the renter's optional return of the vehicle to a location other than the
56 location where the vehicle was rented, and charges for refueling the
A. 2283 18
1 vehicle with as much fuel as was in the fuel tank at the beginning of
2 the rental.
3 (c) A rental vehicle company shall make available detachable or remov-
4 able seats which meet the requirements of subdivision one of section
5 twelve hundred twenty-nine-c of the vehicle and traffic law.
6 (d) Fees for additional authorized drivers shall not exceed two
7 dollars and fifty cents per person for the first rental day and one
8 dollar per day thereafter; provided, however, that in no event shall the
9 total charge exceed five dollars per additional driver.
10 9. Any rental agreement or other contract inconsistent with the
11 provisions of this section is void as against public policy.
12 10. An authorized driver shall provide notice to the rental vehicle
13 company or law enforcement agency within forty-eight hours of learning
14 of the theft of the rental vehicle.
15 § 216-h. Display of renter protection sign. Every rental vehicle
16 company shall display the following information in a conspicuous
17 location visible to any potential customer, with lettering that is legi-
18 ble and is at least three-quarters of an inch in boldface type:
19 "NOTICE: NEW YORK STATE LAW PROHIBITS THE FOLLOWING PRACTICES BY
20 RENTAL VEHICLE COMPANIES BASED UPON RACE, CREED, RELIGION, COLOR, ETHNIC
21 ORIGIN, SEX, SEXUAL ORIENTATION, MARITAL STATUS, DISABILITY, AGE,
22 LOCATION OF RENTER'S RESIDENCE, AND CREDIT CARD OWNERSHIP: (1) THE
23 REFUSAL TO RENT; (2) THE IMPOSITION OF ANY ADDITIONAL CHARGE; AND (3)
24 THE IMPOSITION OF ANY ADDITIONAL TERMS, CONDITIONS, OR PRIVILEGES UPON A
25 RENTAL OF A VEHICLE. FURTHER, A RENTER'S LIABILITY FOR DAMAGES OR LOSS
26 OF THE VEHICLE IS GENERALLY LIMITED TO ONE HUNDRED DOLLARS ($100). IN
27 ADDITION, THE TOTAL CHARGE FOR EACH ADDITIONAL DRIVER MAY NOT EXCEED
28 FIVE DOLLARS AND ANY REQUIRED DEPOSIT CAN NOT EXCEED 150% OF THE RENTAL
29 AGREEMENT. FOR INFORMATION ABOUT RENTAL VEHICLE LAWS, OR TO FILE A
30 COMPLAINT, CONTACT THE NEW YORK DEPARTMENT OF MOTOR VEHICLES AT
31 (address and telephone number of regional office of the department of
32 motor vehicles)."
33 § 216-i. Private right of action. In addition to any action granted to
34 the commissioner pursuant to this article, any person who has been
35 injured by reason of any violation of this article may bring an action
36 in his or her own name to enjoin such unlawful act or practice, an
37 action to recover his or her actual damages or two hundred fifty
38 dollars, whichever is greater, or both such actions. A court may, in its
39 discretion, award the prevailing plaintiff in such action a penalty up
40 to one thousand dollars, if the court finds the defendant willfully or
41 knowingly violated the provisions of this article. A court may award
42 reasonable attorneys' fees to a prevailing plaintiff.
43 § 216-j. Powers of the commissioner. 1. In addition to the powers and
44 duties specified in the vehicle and traffic law, the commissioner, upon
45 any complaint or upon his or her own initiative, has the power to make
46 and conduct such investigation as he or she deems proper to effectuate
47 the purposes of this article. The commissioner may establish, by rule or
48 regulation, criteria upon which the necessity for investigation of
49 complaints shall be determined. Such criteria may include, but are not
50 limited to, the alleged financial loss to the complainant, the indi-
51 cation of a recurring incidence of fraud or deceptive practices, the
52 alleged practice or instance of discrimination pursuant to section two
53 hundred sixteen-f of this article, or violations of any protections
54 granted pursuant to section two hundred sixteen-g of this article. The
55 commissioner also has the power to assist in the settlement of disputes
56 between complainants and registrants. In any such case in which a
A. 2283 19
1 settlement is reached, a report of the facts shall be included in the
2 registrant's record. The provisions of section two hundred sixteen-a of
3 this article relating to the required attendance of registrants and the
4 power to subpoena shall apply to any investigation conducted pursuant to
5 this section.
6 2. The commissioner is hereby authorized and directed to promulgate
7 rules and regulations necessary and appropriate for the implementation
8 of this article.
9 § 2. The vehicle and traffic law is amended by adding a new section
10 229 to read as follows:
11 § 229. Regulation of rental vehicle companies; enforcement. The
12 commissioner has the power to enforce the provisions of article twelve-A
13 of the general business law.
14 § 3. Section 3440 of the insurance law is amended by adding a new
15 subsection (g) to read as follows:
16 (g) The superintendent is authorized and directed to promulgate rules
17 and regulations to govern the actual extra cost for insurance relating
18 to the age of the person renting a motor vehicle to be passed on to such
19 person pursuant to subdivision two of section two hundred sixteen-f of
20 the general business law.
21 § 4. Section 391-g of the general business law is REPEALED.
22 § 5. Section 391-l of the general business law, as added by chapter
23 573 of the laws of 1980 and as redesignated by chapter 694 of the laws
24 of 1995, is REPEALED.
25 § 6. Section 396-z of the general business law is REPEALED.
26 § 7. Section 398-b of the general business law is REPEALED.
27 § 8. Subsection (e) of section 3440 of the insurance law, as added by
28 chapter 784 of the laws of 1988, is amended to read as follows:
29 (e) Nothing in this section shall be construed to require an insurer
30 to make payment under the coverage herein for damage to, or loss of, a
31 rental vehicle (including loss of use) which the rental vehicle company
32 is precluded from recovering from the insured whether pursuant to the
33 terms of the rental agreement or due to the prohibitions of [section
34 three hundred ninety-six-z] article twelve-A of the general business law
35 or similar statutory provisions of other jurisdictions; or which is not
36 otherwise recoverable under the applicable insurance policy or policies.
37 § 9. Paragraph (a) of subdivision 12 of section 1229-c of the vehicle
38 and traffic law, as amended by chapter 509 of the laws of 2004, is
39 amended to read as follows:
40 (a) Every rental vehicle company, as defined in [paragraph (c) of
41 subdivision one of section three hundred ninety-six-z] subdivision
42 twelve of section two hundred eleven of the general business law, shall
43 post a sign in their place of business which states in conspicuous
44 lettering of at least seventy-two point boldface type:
45 NEW YORK STATE LAW REQUIRES ALL CHILDREN UNDER THE AGE OF SEVEN TO BE
46 RESTRAINED IN A FEDERALLY APPROVED CHILD RESTRAINT SYSTEM.
47 § 10. This act shall take effect on the one hundred twentieth day
48 after it shall have become a law; provided, however, that, effective
49 immediately, the addition, amendment or repeal of any rules or regu-
50 lations necessary for the implementation of the foregoing sections of
51 this act on its effective date is authorized and directed to be made and
52 completed on or before such effective date.
REPEAL NOTE.--Section 391-g of the general business law, repealed by
section four of this act, prohibited certain forms of discrimination
based upon age in the rental of motor vehicles. It is replaced by new
A. 2283 20
section 216-f of the general business law, as added by section one of
this act.
Section 391-l of the general business law, added by chapter 573 of the
laws of 1980, redesignated by chapter 694 of the laws of 1995 and
repealed by section five of this act, prohibited refusal to rent a motor
vehicle solely upon the requirement of a credit card. It is replaced by
new section 216-f of the general business law, as added by section one
of this act.
Section 396-z of the general business law, repealed by section six of
this act, provided for various consumer protections in the rental of
motor vehicles. It is replaced by new section 216-g and article 12-A of
the general business law, as added by section one of this act.
Section 398-b of the general business law, repealed by section seven
of this act, prohibited discrimination because of race, color, ethnic
origin, or sex in the rental of motor vehicles. It is replaced by the
proscriptions of new section 216-f and article 12-A of the general busi-
ness law, as added by section one of this act.
