Regulates vehicle licensing recovery fees as they relate to rental vehicles

BILL NUMBER:S2789

Title of bill

An act to amend the general business law, in relation to rental car vehicles

Purpose

To permit rental vehicle companies to itemize charges on the rental agreement for certain costs associated with the licensing, titling, registration, and inspection of vehicles.

Summary of provisions

This bill amends subdivisions 1, 8 and 10 of section 396-z of the general business law.

Section 1 amends General Business Law §396-z (1) to add the definition of "vehicle licensing recovery fee" as the daily fee a rental vehicle company may charge customers which shall represent an average per-rental portion of the company's estimated annual costs, as imposed by the state, for the licensing, titling, registration and inspection of its vehicles in New York. Should the amount recovered from renters differ from the total amount paid by the vehicle rental company, the rental car company shall adjust its daily fee in the following calendar year by the amount of the difference. The amount of such fees collected and reconciliation with actual amounts paid shall be posted annually on each company's website.

Section 2 amends General Business Law §396-z (8) to allow rental car companies to advertise and quote base rental rates without bundling the vehicle licensing costs into the base rate.

Section 3 amends General Business Law §396-z (10) to require rental car companies to separately state on the rental agreement the base rate, taxes, mileage charge, optional items selected by the renter, airport fees, and vehicle licensing recovery fees.

Justification

New York has traditionally allowed only for taxes, mileage charges, optional items (such as navigation systems) and fees imposed on a rental vehicle company by an airport to be stated separately on a renter's rental agreement. Other mandated costs are currently bundled into the rental rate of each vehicle. The consumer is currently unaware which portion of the rate relates to the use of the vehicle and which portion of the rate relates to state-mandated expenses related to the vehicle. These New York State mandated expenses include the cost of licensing, titling, registering and inspecting the vehicle.

Rental car companies register tens of thousands of vehicles in New York. As vehicle licensing fees increase, rental car companies must raise rental rates accordingly. This legislation will allow rental car

companies to keep rates consistent with what they are offering in other states and on national advertising campaigns. It will not allow rental car companies to separately state expenses that constitute the general cost of doing business.

Legislative history

Similar S.5725 Passed the Senate in 2010. 2010 - PASSED SENATE; Died in Assembly

Effective date

This law shall take effect immediately; provided, however, that the amendments to section 396-z of the general business law made by sections 1, 2 and 3 of this act shall not affect the repeal of such section and shall be deemed repealed therewith.