Bill Text: NY A09062 | 2023-2024 | General Assembly | Amended

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Bill Title: Prohibits motor vehicle manufacturers and dealers from charging a subscription fee for certain functions of a motor vehicle after the vehicle is sold; provides that any manufacturer, dealer, or agent of a manufacturer or dealer that fails to comply with such requirements shall be assessed a civil penalty not to exceed two hundred fifty dollars per point of sale for each violation.

Spectrum: Partisan Bill (Democrat 15-0)

Status: (Engrossed) 2024-06-03 - REFERRED TO RULES [A09062 Detail]

Download: New_York-2023-A09062-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         9062--B

                   IN ASSEMBLY

                                    February 6, 2024
                                       ___________

        Introduced  by  M.  of  A.  MAGNARELLI,  GLICK, GUNTHER, LAVINE, THIELE,
          BURDICK, WEPRIN,  EPSTEIN,  SANTABARBARA,  DAVILA,  LEVENBERG,  STECK,
          BURGOS,  ARDILA -- Multi-Sponsored by -- M. of A. WOERNER -- read once
          and referred to the Committee on Consumer Affairs  and  Protection  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee -- reported and referred to the  Commit-
          tee  on  Codes  --  reported and referred to the Committee on Rules --
          Rules Committee discharged, bill amended, ordered reprinted as amended
          and recommitted to the Committee on Rules

        AN ACT to amend the general business law,  in  relation  to  prohibiting
          motor  vehicle  manufacturers and dealers from charging a subscription
          fee for certain functions of a motor vehicle after the vehicle is sold

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. The general business law is amended by adding a new section
     2  198-d to read as follows:
     3    § 198-d. Vehicle feature subscriptions. (a) As used in this section:
     4    (1)  "Consumer"  shall  mean  the purchaser, or lessee, other than for
     5  purposes of resale, of a motor vehicle.
     6    (2) "Dealer" shall have the same meaning as such term  is  defined  by
     7  section four hundred fifteen of the vehicle and traffic law.
     8    (3)  "Manufacturer"  shall  mean  a  person or business engaged in the
     9  manufacturing or assembling of new motor vehicles.
    10    (4) "Motor vehicle" shall have  the  same  meaning  as  such  term  is
    11  defined  by  section  one hundred twenty-five of the vehicle and traffic
    12  law.
    13    (5) "Motor vehicle feature" shall mean any convenience or safety func-
    14  tion included on the motor vehicle, including but not limited to  heated
    15  seats  that typically is offered to a consumer as an upgrade at the time
    16  of purchase or lease of the motor vehicle.
    17    (6)  "Subscription  service"  shall  mean  a  service  provided  on  a
    18  subscription  basis  in exchange for a recurring payment, including, but
    19  not limited to, a weekly, monthly, or annual payment charged to and made
    20  by a consumer but shall not include  a  consumer's  reoccurring  payment

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13200-05-4
        A. 9062--B                          2

     1  made pursuant to a retail installment contract or lease contract for the
     2  purchase or lease of a motor vehicle.
     3    (b)  No  manufacturer,  dealer,  or  agent of a manufacturer or dealer
     4  shall offer to a consumer a subscription service for any  motor  vehicle
     5  feature that:
     6    (1)  utilizes  components  and hardware already installed on the motor
     7  vehicle at the time of purchase or lease by the consumer; and
     8    (2) would function after activation without ongoing cost to or support
     9  by the dealer, manufacturer, or any third-party service provider.
    10    (c) The provisions of this section shall not:
    11    (1) apply to navigation system updates, infotainment features,  satel-
    12  lite  radio, in-vehicle Wi-Fi, telematics services, roadside assistance,
    13  software-dependent driver assistance or driver automation  features,  or
    14  vehicle-connected  services that rely on cellular or other data networks
    15  for continued operation; or
    16    (2) be construed to prohibit a dealer or manufacturer  from  providing
    17  any  software  update to a consumer, provided the dealer or manufacturer
    18  does not charge the consumer a fee for any software update  remedying  a
    19  safety-related defect that is required to be provided to the consumer at
    20  no  cost  as  required by Section 573.6 of Title 49 of the United States
    21  Code.
    22    (d) Any manufacturer, dealer, or agent of  a  manufacturer  or  dealer
    23  that  fails  to  comply  with  the requirements of this section shall be
    24  assessed a civil penalty not to exceed two  hundred  fifty  dollars  per
    25  point of sale for each violation.
    26    §  2.  This  act shall take effect on the ninetieth day after it shall
    27  have become a law. Effective immediately, the addition, amendment and/or
    28  repeal of any rule or regulation necessary  for  the  implementation  of
    29  this  act  on its effective date are authorized to be made and completed
    30  on or before such effective date.