What's happening
This bill amends the insurance law to clarify and expand service contracts covering certain "lease-end" charges for leased vehicles.
Why it matters
Narrows the definition of what “lease-end” service contracts can cover. , removing explicit mention of exterior dents, scratches, windshield cracks, chips, tires, and paint damage, and instead focusing coverage on interior stains, rips, scratches, and missing interior parts—potentially lowering costs for some lessees but reducing coverage options for exterior and glass damage.
Clarifies and limits lessors’ ability to require or offer certain service contracts. , which may protect consumers from paying for overlapping or redundant coverage that is already included under warranties or other agreements.
May impact lease-end financial liability for consumers. , as the amended language could mean lessees are responsible for some types of wear and tear (like exterior or windshield damage) that previously might have been covered, altering the total potential out-of-pocket costs at the end of a lease.
Reflects increased legislative attention to consumer protection in auto leasing. , signaling that lawmakers are closely scrutinizing the scope and marketing of vehicle service contracts and trying to balance consumer cost, clarity, and coverage.
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Who cares
Headline styles
Protect Drivers From Lease Charges
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to insurance
- Delivered to assembly
- Passed senateVote 61–0
- Ordered to third reading cal.32
- Referred to rules
- Referred to rules
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.
Protect Drivers From Lease Fees
Assembly Floor Calendar · Sponsor Kevin Cahill
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6953
IN SENATE
January 6, 2020
Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the insurance law, in relation to "lease-end" charges
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (k) of section 7902 of the insurance law, as amended by a chapter of the laws of 2019, amending the insurance law relating to expanding the availability of meaningful service contracts to protect New Yorkers leasing automobiles for their personal use from unanticipated "lease-end" charges related to excess use or wear and tear of the leased vehicle, as proposed in legislative bills numbers S. 3631 and A. 268, is amended to read as follows:
(k) "Service contract" means a contract or agreement, for a separate or additional consideration, for a specific duration to perform the repair, replacement or maintenance of property, or indemnification for repair, replacement or maintenance, due to a defect in materials or workmanship or wear and tear, with or without additional provision for indemnity payments for incidental damages, provided any such indemnity payment per incident shall not exceed the purchase price of the property serviced. Service contracts may include towing, rental and emergency road service, and may also provide for the repair, replacement or maintenance of property for damage resulting from power surges and accidental damage from handling. Service contracts may also include contracts to repair, replace or maintain residential appliances and systems. Such term shall also mean a contract or agreement made (1) by or for the manufacturer or seller of a motor vehicle tire for repair or replacement of the tire or wheel as the result of damage arising from a road hazard, (2) by or for the supplier or seller of a service for repair of chips or cracks in a motor vehicle windshield, but not including services that involve the replacement of the entire windshield, and (3) by or for the supplier or seller of a service for repair or removal of dents, dings or creases from a motor vehicle without affecting the existing paint finish using paintless dent repair techniques, but not including services that involve the replacement of vehicle body panels,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S LBD03105-02-9
S. 6953 2
or sanding, bonding or painting. In conjunction with a motor vehicle leased for personal use, such term shall also mean a contract to perform the repair, replacement or maintenance of property, or to provide indemnification for repair, replacement or maintenance, due to excess wear and use or damage for [items such as tires, paint cracks or chips,] interior stains, rips or scratches[, exterior dents or scratches, windshield cracks or chips,] or missing interior [or exterior] parts that result in a lease-end charge not otherwise covered by a service agreement or warranty, provided any such payment shall not exceed the purchase price of the vehicle.
§ 2. This act shall take effect on the same date and in the same manner as a chapter of the laws of 2019, amending the insurance law relating to expanding the availability of meaningful service contracts to protect New Yorkers leasing automobiles for their personal use from unanticipated "lease-end" charges related to excess use or wear and tear of the leased vehicle, as proposed in legislative bills numbers S. 3631 and A. 268, takes 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 insurance law, in relation to "lease-end" charges
Purpose
This is a chapter amendment that makes changes to provisions of L.2019, c.736.
Summary of provisions
This legislation amends the underlying chapter by deleting language and thereby narrowing the scope of the possible contract coverage allowed.
Justification
Pursuant to approval memo 82 of 2019, the Executive expressed concerns over the underlying legislation while supporting its goals. This legis- lation is a negotiated change to the underlying chapter that addresses those concerns.
Legislative history
Chapter amendment to Chapter 736 of the Laws of 2019.
Fiscal implications
None
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.