Bill Text: NY S07545 | 2017-2018 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to safety recalls on used motor vehicles; requires dealers to provide notice to purchasers of safety recalls.
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Introduced - Dead) 2018-05-22 - COMMITTEE DISCHARGED AND COMMITTED TO RULES [S07545 Detail]
Download: New_York-2017-S07545-Introduced.html
Bill Title: Relates to safety recalls on used motor vehicles; requires dealers to provide notice to purchasers of safety recalls.
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Introduced - Dead) 2018-05-22 - COMMITTEE DISCHARGED AND COMMITTED TO RULES [S07545 Detail]
Download: New_York-2017-S07545-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7545 IN SENATE January 23, 2018 ___________ Introduced by Sen. FUNKE -- 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 safety recalls on used motor vehicles 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. Used motor vehicles; recalls. (a) For the purpose of this 4 section, the following terms shall have the following meanings: 5 (1) "dealer" shall have the same meaning as paragraph a of subdivision 6 one of section four hundred fifteen of the vehicle and traffic law. 7 (2) "used motor vehicle" shall have the same meaning as paragraph i of 8 subdivision one of section four hundred fifteen of the vehicle and traf- 9 fic law. 10 (3) "stop drive order" shall mean a notification issued under 49 USC 11 section 30118 which includes precautionary advice to stop driving a 12 motor vehicle (including the vehicle identification number for such 13 vehicle). 14 (4) "safer car website" shall mean any website, application, or inter- 15 net accessed platform operated by the national highway traffic safety 16 administration, the United States department of transportation, or their 17 agent and/or subcontractor, wherein a consumer may determine the status 18 of all recalls on any new and/or used motor vehicle. 19 (b) If, prior to executing a contract for sale or lease of a used 20 motor vehicle at retail, a dealer determines pursuant to the inquiry 21 required by subdivision (f) of this section that the used motor vehicle 22 subject to the contract is under a stop drive order, such dealer shall 23 not sell or lease any such vehicle until the defect or noncompliance is 24 remedied. 25 (c) A dealer shall disclose in any print and online advertisement that 26 any used motor vehicle being advertised may be subject to a recall, and 27 that a consumer may obtain all recall information from the safer car 28 website. Two days prior to the submission of any advertisement for a EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11912-04-8S. 7545 2 1 used motor vehicle, a dealer shall make an inquiry on the safer car 2 website for any open recalls. If any open recalls are listed on this 3 report, the dealer shall either cause the recall defect to be repaired 4 before the used vehicle is delivered to the consumer, or clearly display 5 notice, in such advertisement, stating that the particular vehicle is 6 subject to an open recall. 7 (d) A dealer shall maintain a link on any website or online platform 8 it controls directing that a consumer may obtain all recall information 9 from the safer car website. 10 (e) A dealer shall place upon all used vehicles for sale a sticker 11 and/or decal that includes information that will allow a consumer to 12 check the status of any potential recalls on said vehicle through the 13 safer car website, or shall include a means of checking said vehicle's 14 recall status on the safer car website by scanning a bar code, QR code, 15 or vehicle identification number, or shall include a report, which may 16 be a print copy of the results of a search of the safer car website, 17 from the safer car website reflecting the vehicle's recall status. 18 (f) A dealer shall perform, prior to, but no earlier than two days 19 before, the execution of the sale or lease of any used vehicle, a search 20 using the vehicle identification number of the vehicle involved in the 21 transaction on the national highway traffic safety administration's 22 safer car website, and shall produce and provide the report from such 23 website to the purchaser of any motor vehicle safety recall or recalls 24 that the motor vehicle is subject to, that such recalls may be repaired 25 by a motor vehicle dealer approved by the manufacturer of the vehicle, 26 and that further information on the recalls may be obtained from the 27 national highway traffic safety administration on its safer car website. 28 Providing a printout of the result of the search provided for in this 29 subdivision shall be deemed compliance with this requirement, and such 30 notice shall be signed by the purchaser. Additionally, such dealer who 31 complies with this subdivision shall be deemed to have complied with any 32 state or local law, rule or regulation relating to deceptive trade, 33 business or commercial acts or practices concerning the sale or lease 34 of, or offer to sell or lease, any used motor vehicle that as a result 35 of a federal safety defective or noncompliant condition has been 36 recalled by the original equipment manufacturer of such used motor vehi- 37 cle or the United States department of transportation, provided, howev- 38 er, the provisions of section one hundred ninety-eight-b of this article 39 shall still apply. 40 (g) Where a franchisor or manufacturer, as defined by section four 41 hundred sixty-two of the vehicle and traffic law, directly or indirectly 42 subjects any dealer to any financial or other penalties or otherwise 43 penalizes or prevents a dealer from selling or leasing any used motor 44 vehicle subject to recall, including where any such restrictions are 45 imposed by the manufacturer, either through the issuance of a "stop 46 sell" or any other communication, or federal, state, or local law or 47 regulation: 48 (1) the franchisor or manufacturer shall, within fifteen days from 49 notice of a recall, or upon notification from a dealer that they are in 50 possession of a vehicle subject to such recall, which is covered under a 51 policy or policies as described in this subdivision, provide to said 52 dealer a payment of two percent of the value of a used motor vehicle as 53 determined by the average "trade-in" value for a similar used vehicle as 54 indicated in a widely disseminated, publicly available, independent used 55 motor vehicle guide for the year, make, model, and mileage of the used 56 motor vehicle in the possession of the dealer for every thirty days, orS. 7545 3 1 portion of thirty days, the dealer is unable to sell, offer to sell, or 2 repair such vehicle due to the inability to satisfy any recall issued 3 for such vehicle or due to communication received from the manufacturer 4 regarding the sale of such vehicle; and 5 (2) the manufacturer or franchisor shall pay the dealer through a 6 credit to the dealer's open account, or by any other method approved by 7 the dealer. 8 (h) The manufacturer or franchisor may not retaliate against a dealer 9 who has submitted a claim for reimbursement under this section or who 10 was otherwise compensated for a vehicle subject to a recall. For the 11 purposes of this subdivision, retaliation shall include, but shall not 12 be limited to, reducing the amount of compensation otherwise owed to a 13 dealer, whether through a chargeback, removal from an incentive program, 14 reducing the amount owed under an incentive program, or any other means, 15 imposing additional requirements, withholding inventory, reducing allo- 16 cation, requiring any facility upgrade, or otherwise surcharging or 17 penalizing the dealer. A dealer may not, however, receive compensation 18 for the same vehicle under recall under this section, as well as under 19 another manufacturer program designed to mitigate dealer costs for the 20 holding of vehicles under recall, unless otherwise entitled to such 21 compensation. 22 (i) The manufacturer or franchisor shall pay for any repairs performed 23 by the dealer to remedy any recall, pursuant to the provisions of 24 section four hundred sixty-five of the vehicle and traffic law. Any 25 replacement part provided for a recall repair shall be paid at the 26 existing retail reimbursement rate in existence at the time the repair 27 is performed. 28 § 2. This act shall take effect immediately, provided, however, that 29 subdivisions (b) through (f) of section one hundred ninety-eight-d of 30 the general business law, as added by section one of this act, shall 31 take effect sixty days after this act shall have become a law.
