Prohibits the rental of safety recalled cars until they are repaired in accordance with the recall

BILL NUMBER:S6320

Title of bill

An act to amend the general business law, in relation to prohibiting the rental of motor vehicles that are subject to a recall

Purpose or general idea of bill

This legislation would require rental car companies to fix defective vehicles that are subject to a federal or manufacturer's recall. Rental car companies would have the alternative option to alert the prospective renter to the defect, to the recall, and to the fact that the company has not addressed the defect so long as this disclosure is in writing, initialed by the customer and was made known prior to any rental agreement being signed.

Summary of provisions

Section One adds a new subdivision 16 to section 396-z of the general business law, as amended by the laws of 2006 which requires rental car companies to inspect and repair vehicles that are subject to a recall within 120 days of notification that the vehicle is Subject to a recall. The rental company Shall provide disclosure to the prospective renter during these 120 days, if inspections and repairs have not yet been made. Following the 120 days, the rental car company shall have the option of providing disclosure instead of making the inspections and repairs. All disclosures required or permitted in this bill shall be subject to specific requirements.

Section Two adds a new subdivision 14 to section 396-z of the general business law, as amended by the laws of 1988 which requires rental car companies to inspect and repair vehicles that are subject to a recall within 120 days of notification that the vehicle is subject to a recall. The rental company shall also have the option of providing disclosure subject to specific requirements upon such disclosure.

Section Three provides the effective date and provides that section two shall take effect when section one is repealed pursuant to section 4 of chapter 656 of the laws of 2002.

Justification

Recalls on vehicles are issued for public safety. The federal government, as well as car manufacturers, issue recall notices when a defect is discovered that could be potentially harmful to someone using the vehicle. Included among the most prevalent reasons for a motor vehicle recall are wiring and leaks that cause fire, steering problems that lead to a loss of control, and accelerators that break or suddenly freeze.

These problems are all potentially deadly if not addressed. Under current law, auto dealers are prohibited from selling cars that are subject to a recall however there is no regulation with respect to the rental of recalled vehicles. This legislation holds car rental companies to heightened restrictions similar to those placed on auto dealers by requiring rental companies to inspect recalled vehicles, and when appropriate, repair such vehicles. Alternatively, rental car

companies may disclose defects to potential renters if they decline to make the repairs under the recall. Disclosure is required at all times that a vehicle is rented by a vehicle rental company while it is subject to a recall. If disclosure is made with respect to the existence and nature of the recall and the specific defect, and the customer initials a form containing this information prior to the signing of any rental agreement, the rental car company shall be permitted to rent the vehicle to the customer.

Legislative history

A8973/S5618 of 2011-2012 - Referred to Consumer Affairs and Protection

Fiscal implications

None to the state.

Effective date

This act shall take effect immediately, with provisions.