What's happening
This bill regulates rental vehicle companies' use of electronic tolling transponders, capping deposits and prohibiting extra fees beyond actual toll costs.
Why it matters
Limits on Extra Fees. The bill ensures rental vehicle companies cannot charge renters additional "convenience" or administrative fees for using electronic tolling transponders—renters only pay for the actual tolls incurred.
Deposit Protections. While companies can require a deposit (up to $100) for toll payments, the law mandates prompt refunds (within 10 days after the rental ends), protecting renters from prolonged or excessive holds on their funds.
Transparency & Fairness. By prohibiting hidden or inflated fees related to toll transponder use, the bill aims to make rental car costs more predictable and transparent for consumers, reducing the risk of unexpected charges on credit cards after rental periods.
Consumer Rights. The legislation strengthens consumer rights, addressing frequent customer complaints about surprise fees and fostering greater trust in the rental vehicle market.
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Who cares
Headline styles
Limit Rental Car Toll Fees
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 42
No co-sponsors yet.
History
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit Rental Car Toll Fees
In Assembly Committee · Consumer Affairs And Protection · Sponsor Aileen Gunther
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8030
IN SENATE
March 21, 2018
Introduced by Sen. BONACIC -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law, in relation to rental vehicle electronic tolling
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 396-z of the general business law is amended by adding a new paragraph (k) to read as follows:
(k) "Electronic tolling transponder" means a device capable of transmitting information from a motor vehicle to a toll lane for the purpose of charging an account the appropriate toll or charge in an electronic toll collection system, as defined by subdivision twelve of section twenty-nine hundred eighty-five of the public authorities law.
§ 2. Subdivision 1 of section 396-z of the general business law is amended by adding a new paragraph (d) to read as follows:
(d) "Electronic tolling transponder" means a device capable of transmitting information from a motor vehicle to a toll lane for the purpose of charging an account the appropriate toll or charge in an electronic toll collection system, as defined by subdivision twelve of section twenty-nine hundred eighty-five of the public authorities law.
§ 3. Paragraph (d) of subdivision 7 of section 396-z of the general business law is relettered paragraph (e) and a new paragraph (d) is added to read as follows:
(d) In accordance with subdivision sixteen of this section, a rental vehicle company may require a deposit of up to one hundred dollars for payment of tolls charged to the electronic tolling transponder registered to such rental vehicle company. The rental vehicle company must refund such deposit minus any toll payments not more than ten days following the termination of the rental agreement.
§ 4. Subdivision 7 of section 396-z of the general business law, as amended by chapter 784 of the laws of 1988 and as renumbered by chapter 1 of the laws of 1994, is amended to read as follows:
7. No rental vehicle company shall advertise, quote or charge a rental rate that does not include all charges, except taxes and any mileage
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14092-01-8
S. 8030 2
charge, which an authorized driver must pay to obtain a rental vehicle. In accordance with subdivision sixteen of this section, a rental vehicle company may require a deposit of up to one hundred dollars for payment of tolls charged to the electronic tolling transponder registered to such rental vehicle company. The rental vehicle company must refund such deposit minus any toll payments not more than ten days following the termination of the rental agreement.
§ 5. Section 396-z of the general business law is amended by adding a new subdivision 16 to read as follows:
16. A rental vehicle company shall not charge a renter more than the actual cost of payments made for tolls and/or charges prescribed by a public authority for the use of bridges, tunnels, or highways, nor shall such rental vehicle company charge a fee for usage of an electronic tolling transponder. A rental vehicle company may collect a deposit from the renter for actual charges incurred as a result of the renter's use of an electronic tolling transponder registered to the rental vehicle company.
§ 6. This act shall take effect immediately; provided, however, that the amendments to section 396-z of the general business law, made by sections one and three of this act, shall not affect the expiration of such section and shall be deemed expired therewith, when upon such date the provisions of sections two and four of this act shall take effect; and provided, further that the amendment to section 396-z of the general business law, made by section five of this act, shall survive the expiration and reversion of such section as provided in section 4 of chapter 656 of the laws of 2002, as amended.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to rental vehicle electronic tolling
Purpose
To protect consumers from fees charged by rental car companies for the use of electronic tolling transponders.
Summary of provisions
Sections 1 & 2: Amend subdivision 1 of section 396-z of the General Business Law to define "electronic tolling transponder."
Sections 3 & 4: Amend subdivision 7 of section 396-z of the General Business Law to allow a rental car company to require a deposit for tolls charged to the company's transponder.
Section 5: Amends section 396-z of the General Business Law to add a new subdivision 16 which prohibits rental car companies from charging more than the actual cost of tolls and to prohibit fees for use of a trans- ponder.
Section 6: Effective date.
Justification
In his 2018 State of the State address, the Governor proposed to expand cashless tolling to the entire New York State Thruway and Port Authority crossings. In addition, the Governor announced that cash was no longer accepted at MTA bridges and tunnels as of September 30, 2017. This leaves open the possibility that consumers would have no other choice but to pay sometimes exorbitant fees to rental car companies for the usage of a tolling transponder. This bill ensures that renters are only required to pay for the tolls they utilize and protects rental car companies from scofflaws by allowing them to collect a deposit.
Legislative history
New bill.
Fiscal implications
None to state
Effective date
This act shall take effect immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.