S T A T E O F N E W Y O R K ________________________________________________________________________ 5618 2011-2012 Regular Sessions I N S E N A T E June 7, 2011 ___________ Introduced by Sen. ZELDIN -- 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 ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Section 396-z of the general business law, as amended by 2 chapter 731 of the laws of 2006, is amended by adding a new subdivision 3 16 to read as follows: 4 16. RENTAL VEHICLE COMPANIES SHALL INSPECT AND, IF APPROPRIATE, REPAIR 5 ANY RENTAL VEHICLE COVERED UNDER A FEDERAL OR MANUFACTURER'S SAFETY 6 RECALL WITHIN ONE HUNDRED TWENTY DAYS AFTER RECEIVING SUCH NOTICE. 7 FOLLOWING RECEIPT OF SUCH NOTICE BY A RENTAL VEHICLE COMPANY, SUCH 8 COMPANY MAY RENT A VEHICLE THAT IS SUBJECT TO A SAFETY RECALL PROVIDED 9 THAT SUCH COMPANY DISCLOSES TO ANY PROSPECTIVE RENTER OF VEHICLES 10 COVERED UNDER A FEDERAL OR MANUFACTURER'S SAFETY RECALL THAT THE VEHI- 11 CLES ARE SUBJECT TO SAFETY RECALL NOTICES AND HAVE NOT BEEN INSPECTED OR 12 REPAIRED PRIOR TO THE SIGNING OF THE RENTAL AGREEMENT. IF ONE HUNDRED 13 TWENTY DAYS SHALL LAPSE FOLLOWING THE RECEIPT OF NOTICE BY A RENTAL 14 VEHICLE COMPANY THAT A FEDERAL OR MANUFACTURER'S SAFETY RECALL IS IN 15 EFFECT ON ANY OF THE VEHICLES OWNED BY THE RENTAL VEHICLE COMPANY, AND 16 SUCH RENTAL VEHICLE COMPANY HAS FAILED TO INSPECT OR REPAIR SUCH VEHI- 17 CLES, THE RENTAL VEHICLE COMPANY SHALL HAVE THE OPTION, AS AN ALTERNA- 18 TIVE TO UNDERTAKING THE INSPECTIONS OR REPAIRS SUBJECT TO THE RECALL, TO 19 DISCLOSE TO PROSPECTIVE RENTERS OF VEHICLES COVERED UNDER A FEDERAL OR 20 MANUFACTURER'S SAFETY RECALL THAT THE VEHICLES ARE SUBJECT TO SAFETY 21 RECALL NOTICES AND HAVE NOT BEEN INSPECTED OR REPAIRED PRIOR TO THE 22 SIGNING OF THE AGREEMENT. ANY DISCLOSURES REQUIRED UNDER THIS SECTION 23 SHALL BE SET FORTH IN A SEPARATE DOCUMENT ATTACHED TO THE RENTAL AGREE- 24 MENT AND SHALL STATE (A) THAT THE SPECIFIC VEHICLE IS THE SUBJECT OF A 25 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. LBD10040-03-1 S. 5618 2 1 NATURE OF THE DEFECT. SUCH DISCLOSURE SHALL BE INITIALLED BY THE 2 PROSPECTIVE RENTER PRIOR TO THE SIGNING OF THE RENTAL AGREEMENT. 3 S 2. Section 396-z of the general business law, as amended by chapter 4 784 of the laws of 1988, is amended by adding a new subdivision 14 to 5 read as follows: 6 14. RENTAL VEHICLE COMPANIES SHALL INSPECT AND, IF APPROPRIATE, REPAIR 7 ANY RENTAL VEHICLE COVERED UNDER A FEDERAL OR MANUFACTURER'S SAFETY 8 RECALL WITHIN ONE HUNDRED TWENTY DAYS AFTER RECEIVING SUCH NOTICE. 9 FOLLOWING RECEIPT OF SUCH NOTICE BY A RENTAL VEHICLE COMPANY, SUCH 10 COMPANY MAY RENT A VEHICLE THAT IS SUBJECT TO A SAFETY RECALL PROVIDED 11 THAT SUCH COMPANY DISCLOSES TO ANY PROSPECTIVE RENTER OF VEHICLES 12 COVERED UNDER A FEDERAL OR MANUFACTURER'S SAFETY RECALL THAT THE VEHI- 13 CLES ARE SUBJECT TO SAFETY RECALL NOTICES AND HAVE NOT BEEN INSPECTED OR 14 REPAIRED PRIOR TO THE SIGNING OF THE RENTAL AGREEMENT. IF ONE HUNDRED 15 TWENTY DAYS SHALL LAPSE FOLLOWING THE RECEIPT OF NOTICE BY A RENTAL 16 VEHICLE COMPANY THAT A FEDERAL OR MANUFACTURER'S SAFETY RECALL IS IN 17 EFFECT ON ANY OF THE VEHICLES OWNED BY THE RENTAL VEHICLE COMPANY, AND 18 SUCH RENTAL VEHICLE COMPANY HAS FAILED TO INSPECT OR REPAIR SUCH VEHI- 19 CLES, THE RENTAL VEHICLE COMPANY SHALL HAVE THE OPTION, AS AN ALTERNA- 20 TIVE TO UNDERTAKING THE INSPECTIONS OR REPAIRS SUBJECT TO THE RECALL, TO 21 DISCLOSE TO PROSPECTIVE RENTERS OF VEHICLES COVERED UNDER A FEDERAL OR 22 MANUFACTURER'S SAFETY RECALL THAT THE VEHICLES ARE SUBJECT TO SAFETY 23 RECALL NOTICES AND HAVE NOT BEEN INSPECTED OR REPAIRED PRIOR TO THE 24 SIGNING OF THE AGREEMENT. ANY DISCLOSURES REQUIRED UNDER THIS SECTION 25 SHALL BE SET FORTH IN A SEPARATE DOCUMENT ATTACHED TO THE RENTAL AGREE- 26 MENT AND SHALL STATE (A) THAT THE SPECIFIC VEHICLE IS THE SUBJECT OF A 27 SAFETY RECALL, (B) DESCRIBE THE RECALL IN QUESTION, AND (C) DESCRIBE THE 28 NATURE OF THE DEFECT. SUCH DISCLOSURE SHALL BE INITIALLED BY THE 29 PROSPECTIVE RENTER PRIOR TO THE SIGNING OF THE RENTAL AGREEMENT. 30 S 3. This act shall take effect immediately, provided that the amend- 31 ments to section 396-z of the general business law, made by section one 32 of this act, shall be subject to the expiration and reversion of such 33 section pursuant to section 4 of chapter 656 of the laws of 2002, as 34 amended, when upon such date section two of this act shall take effect.