What's happening
This bill requires rental companies to inspect or repair recalled vehicles within 120 days or disclose unaddressed recalls to renters.
Why it matters
Increases transparency for renters. by requiring companies to provide specific written notice if a vehicle is under recall and hasn't been inspected or repaired, including details about the recall and the defect, which must be initialed by the renter before the agreement is signed.
Creates a clear timeline for action. by mandating that rental companies must inspect and, if needed, repair recalled vehicles within 120 days of receiving a recall notice, potentially leading to faster resolution of safety issues.
Balances consumer choice and business operations. by allowing companies to rent out recalled vehicles during the 120-day period or after, as long as the required disclosure is made, rather than imposing an immediate ban.
Could impact liability and customer trust. by making rental companies more accountable for informing renters of known risks, which may influence renter decisions and affect the companies’ legal exposure in the event of accidents related to unrepaired recalls.
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Who cares
Headline styles
Stop Renting Recalled Cars
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
1 Co-sponsor
History
- Referred to consumer protection
- 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.
No Rentals of Recalled Cars
In Assembly Committee · Consumer Affairs And Protection · Sponsor Alicia Hyndman
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2531
2019-2020 Regular Sessions
IN SENATE
January 28, 2019
Introduced by Sen. COMRIE -- 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 prohibiting the rental of motor vehicles that are subject to a recall
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 396-z of the general business law, as amended by chapter 109 of the laws of 2018, is amended by adding a new subdivision 17 to read as follows:
17. Rental vehicle companies shall inspect and, if appropriate, repair any rental vehicle covered under a federal or manufacturer's safety recall within one hundred twenty days after receiving such notice. Following receipt of such notice by a rental vehicle company, such company may rent a vehicle that is subject to a safety recall provided that such company discloses to any prospective renter of vehicles covered under a federal or manufacturer's safety recall that the vehicles are subject to safety recall notices and have not been inspected or repaired prior to the signing of the rental agreement. If one hundred twenty days shall lapse following the receipt of notice by a rental vehicle company that a federal or manufacturer's safety recall is in effect on any of the vehicles owned by the rental vehicle company, and such rental vehicle company has failed to inspect or repair such vehicles, the rental vehicle company shall have the option, as an alternative to undertaking the inspections or repairs subject to the recall, to disclose to prospective renters of vehicles covered under a federal or manufacturer's safety recall that the vehicles are subject to safety recall notices and have not been inspected or repaired prior to the signing of the agreement. Any disclosures required under this section shall be set forth in a separate document attached to the rental agreement and shall state (a) that the specific vehicle is the subject of a safety recall, (b) describe the recall in question, and (c) describe the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06251-01-9
S. 2531 2
nature of the defect. Such disclosure shall be initialled by the prospective renter prior to the signing of the rental agreement.
§ 2. Section 396-z of the general business law, as amended by chapter 731 of the laws of 2006, is amended by adding a new subdivision 16 to read as follows:
16. Rental vehicle companies shall inspect and, if appropriate, repair any rental vehicle covered under a federal or manufacturer's safety recall within one hundred twenty days after receiving such notice. Following receipt of such notice by a rental vehicle company, such company may rent a vehicle that is subject to a safety recall provided that such company discloses to any prospective renter of vehicles covered under a federal or manufacturer's safety recall that the vehicles are subject to safety recall notices and have not been inspected or repaired prior to the signing of the rental agreement. If one hundred twenty days shall lapse following the receipt of notice by a rental vehicle company that a federal or manufacturer's safety recall is in effect on any of the vehicles owned by the rental vehicle company, and such rental vehicle company has failed to inspect or repair such vehicles, the rental vehicle company shall have the option, as an alternative to undertaking the inspections or repairs subject to the recall, to disclose to prospective renters of vehicles covered under a federal or manufacturer's safety recall that the vehicles are subject to safety recall notices and have not been inspected or repaired prior to the signing of the agreement. Any disclosures required under this section shall be set forth in a separate document attached to the rental agreement and shall state (a) that the specific vehicle is the subject of a safety recall, (b) describe the recall in question, and (c) describe the nature of the defect. Such disclosure shall be initialled by the prospective renter prior to the signing of the rental agreement.
§ 3. This act shall take effect immediately, provided that the amendments to section 396-z of the general business law, made by section one of this act, shall be subject to the expiration and reversion of such section pursuant to subdivision (a) of section 4 of chapter 109 of the laws of 2018, as amended, when upon such date section two of this act shall take effect.
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 prohibiting the rental of motor vehicles that are subject to a recall
Purpose or general idea of bill
This legislation would (Prohibits the rental of safety recalled cars until they are repaired in accordance with the recall).
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 govern- ment, 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 appro- priate, 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 vehi- cle 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 infor- mation prior to the signing of any rental agreement, the rental car company shall be permitted to rent the vehicle to the customer.
Legislative history
S 7378 COMRIE Same as A10250
Fiscal implications
None to the state.
Effective date
This act shall take effect immediately, with provisions.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.