Prohibits excessive refueling charges by motor vehicle rental agencies

BILL NUMBER:S2653

Title of bill

An act to amend the general business law, in relation to excessive refueling charges by motor vehicle rental agencies

Purpose or general idea of bill

The bill would require that rental car agencies in this state charge no more than ten percent above the average price of gasoline at stations within a five mile radius of such agency's location, as the cost for refueling a rental car upon its return. Violation of this section would result in a misdemeanor, punishable by a fine of up to $500, or not more than 100 days in jail, or both.

Summary of provisions

This bill would amend the General Business Law by adding a new section 391-r which would prohibit rental car agencies from charging excessive refueling costs.

Justification

Most rental car agencies in this state are currently charging an inflated cost for refueling of motor vehicles rented out by such establishment, upon their return. The refueling charges in the Metropolitan New York area are currently about $1.95/gallon. This is practically a ninety percent mark-up over the current average price/gallon of gas in that area. One may argue that this price injustice could be easily remedied by simply refilling the tank on one's own prior to returning the car. However, many business people who rent cars are running on time schedules that may prohibit them from doing this. In addition, and especially in light of recent abuses of the rental car customer by the rental car industry, just because a specific injustice is easily remedied doesn't mean that it should be tolerated by the general public.

Fiscal implications

None.

Effective date

This act shall take effect on the first day of November next succeeding the date on which it shall have become a law.