Bill Text: NY S08389 | 2017-2018 | General Assembly | Amended


Bill Title: Expands protections afforded to renters of motor vehicles and makes certain provisions relating to rental vehicle protections permanent.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2018-07-01 - SIGNED CHAP.109 [S08389 Detail]

Download: New_York-2017-S08389-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         8389--B
                    IN SENATE
                                       May 4, 2018
                                       ___________
        Introduced  by  Sen.  JACOBS -- read twice and ordered printed, and when
          printed to be committed to the Committee  on  Consumer  Protection  --
          reported  favorably from said committee and committed to the Committee
          on Rules -- committee discharged, bill amended, ordered  reprinted  as
          amended  and  recommitted  to  said committee -- committee discharged,
          bill amended, ordered reprinted as amended  and  recommitted  to  said
          committee
        AN  ACT to amend the general business law, in relation to certain rental
          vehicle protections; to amend chapter 656 of the laws of 2002 amending
          the general business law relating to rental  vehicle  protections,  in
          relation  to  making  such provisions permanent; to amend a chapter of
          the laws of 2018, amending chapter 656 of the laws  of  2002  amending
          the  general  business  law relating to rental vehicle protections, as
          proposed in legislative  bills  numbers  S.  8317  and  A.  11097,  in
          relation  to  making  such provisions permanent; and providing for the
          repeal of certain provisions upon expiration thereof
          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 to read as follows:
     3    § 396-z. Rental vehicle protections.  1.  For  the  purposes  of  this
     4  section:  (a) "Authorized driver" [shall mean]  means: (i) the person to
     5  whom the vehicle is rented if a  licensed  driver;  (ii)  such  person's
     6  spouse  if licensed and at least eighteen years of age; (iii) any person
     7  who operates the vehicle during an  emergency  situation  to  a  medical
     8  facility;  or  (iv)  any  licensed driver expressly listed on the rental
     9  agreement as an authorized driver.
    10    (b) "Rental agreement" means any written agreement setting forth terms
    11  and conditions governing the renter's or any authorized driver's use  of
    12  a  rental  vehicle[, as defined in section one hundred thirty-seven-a of
    13  the vehicle and traffic law,] for a period not to exceed thirty  contin-
    14  uous days.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08643-21-8

        S. 8389--B                          2
     1    (c)  "Rental vehicle company" means any person or organization, or any
     2  subsidiary or affiliate, including a  franchisee,  in  the  business  of
     3  providing rental vehicles to the public from locations in this state.
     4    (d)  "Optional  vehicle  protection"  means a rental vehicle company's
     5  agreement not to hold an authorized driver liable for all or part of any
     6  damage or loss to the rented vehicle, any loss  of  use  of  the  rented
     7  vehicle,  or  any storage, impound, towing or administrative charges for
     8  which [the] an authorized driver may be liable. The term "optional vehi-
     9  cle protection" shall encompass within its meaning other  similar  terms
    10  that may be used by rental vehicle companies, such as but not limited to
    11  "Collision Damage Waiver", "CDW", "Damage Waiver", "Loss Damage Waiver",
    12  "LDW", and "Physical Damage Waiver".
    13    (e)  "Renter"  means  a  person  or  entity  that obtains the use of a
    14  [private passenger] rental vehicle from a rental vehicle  company  under
    15  terms of a rental agreement.
    16    (f) "Consolidated facilities charge" means the allowable recovery by a
    17  rental  vehicle  company  from  its renters of those fees, including any
    18  taxes or fees paid on such fees, for the finance,  design,  construction
    19  and  operation  of  consolidated  airport facilities and or the finance,
    20  design, construction and operation of common use transportation  systems
    21  that  move passengers between airport terminals and [those] consolidated
    22  airport car rental facilities. The  aggregate  amount  to  be  collected
    23  shall  not  exceed  the  reasonable  costs, as determined annually by an
    24  independent audit paid for by the  airport  operator  or  its  governing
    25  entity,  to  finance, design, construct and operate those facilities and
    26  common use transportation systems. The consolidated  [facility]  facili-
    27  ties  charge  shall  apply  only to vehicle rentals occurring at vehicle
    28  rental locations subject to the imposition of such charge by an  airport
    29  operator  or  its  governing  entity.  The term "consolidated facilities
    30  charge" shall encompass within its meaning other similar terms that  may
    31  be used by airport authorities or rental vehicle companies, such as, but
    32  not  limited  to "customer facility charge" and "transportation facility
    33  charge".
    34    (g) "Concession recovery fee" means the allowable recovery by a rental
    35  vehicle company from its renters of those fees, including any  taxes  or
    36  fees paid on such fees, which an airport operator or its governing enti-
    37  ty  imposes  on a rental vehicle company's applicable revenues or rental
    38  transactions, as defined and  stated  in  a  concession  agreement  that
    39  authorizes  a rental vehicle company to operate at an airport located in
    40  this state. The concession recovery fee  shall  apply  only  to  vehicle
    41  rentals  occurring at vehicle rental locations subject to the imposition
    42  of such fee by an airport operator or its  governing  entity.  The  term
    43  "concession recovery fee" shall encompass within its meaning other simi-
    44  lar  terms  that  may  be  used by airport authorities or rental vehicle
    45  companies, such as, but not limited to,  "concession  fee",  "concession
    46  recovery fee surcharge", "privilege fee" and "airport access fee".
    47    (h)  "Airport fees" means [the] consolidated [facility charge] facili-
    48  ties charges and/or [the] concession recovery [fee as  those  terms  are
    49  defined herein] fees.
    50    (i)  "Concession  agreement"  means  an  agreement,  permit or license
    51  entered into between an airport operator or  its  governing  entity  and
    52  rental  vehicle  company  setting  forth  the terms and conditions under
    53  which the rental vehicle company may transact  its  rental  business  at
    54  such airport.
    55    (j)  "Consolidated  airport facilities" means those buildings or phys-
    56  ical structures, including, but not limited to, parking garages, parking

        S. 8389--B                          3
     1  areas and fueling systems, constructed by or on behalf  of  the  airport
     2  operator  or its governing entity to be jointly used by all rental vehi-
     3  cle companies operating at such airport pursuant to a concession  agree-
     4  ment.
     5    (k)  "Rental vehicle" means a rental vehicle as defined in section one
     6  hundred thirty-seven-a of the vehicle and  traffic  law,  but  excluding
     7  motor vehicles designed primarily for the transportation of property.
     8    (l)  "Manufacturer's suggested retail price" means the retail price of
     9  the motor vehicle suggested by the manufacturer in accordance  with  the
    10  requirements of federal law.
    11    2.  (a)  A  rental  vehicle  company  shall not charge more than [nine
    12  dollars] the following amounts per  full  or  partial  twenty-four  hour
    13  rental  day  for  optional  vehicle  protection  [if  the manufacturer's
    14  suggested retail price of the rental vehicle is not greater than  thirty
    15  thousand  dollars.  A  rental vehicle company shall not charge more than
    16  twelve dollars per full or  partial  twenty-four  hour  rental  day  for
    17  optional vehicle protection]:
    18    (i)  nine  dollars if the manufacturer's suggested retail price of the
    19  rental vehicle is not greater than [thirty] twenty thousand dollars;
    20    (ii) twelve dollars if the manufacturer's suggested  retail  price  of
    21  the  rental  vehicle  is  greater  than  twenty thousand dollars but not
    22  greater than thirty-five thousand dollars;
    23    (iii) fifteen dollars if the manufacturer's suggested retail price  of
    24  the  rental vehicle is greater than thirty-five thousand dollars but not
    25  greater than fifty thousand dollars; and
    26    (iv) the amount that may be charged for a vehicle with  a  manufactur-
    27  er's suggested value of greater than fifty thousand dollars shall not be
    28  subject  to  a  maximum  dollar  amount but shall be subject to the fair
    29  market value as determined by the rental vehicle company.
    30    (b)  A  rental  vehicle  company  shall  not  sell  optional   vehicle
    31  protection  unless the [authorized driver] renter agrees to the purchase
    32  of such protection in writing at or prior to the time the rental  agree-
    33  ment is executed.
    34    (c)   A  rental  vehicle  company  shall  not  void  optional  vehicle
    35  protection except for one or more of the following reasons:
    36    (i) The damage or loss is caused intentionally or as a result of will-
    37  ful, wanton, or reckless conduct of the driver[.];
    38    (ii) The damage or loss arises out of the driver's  operation  of  the
    39  vehicle  while  intoxicated or unlawfully impaired by the use of alcohol
    40  or drugs[.];
    41    (iii) The rental vehicle company entered into the  rental  transaction
    42  based  on  fraudulent  or  materially  false information supplied by the
    43  renter or authorized driver[.];
    44    (iv) The damage or loss arises out of the use  of  the  vehicle  while
    45  engaged in the commission of a crime other than a traffic infraction[.];
    46    (v)  The  damage or loss arises out of the use of the vehicle to carry
    47  persons or property for hire, to push or tow anything, while engaged  in
    48  a speed contest, operating off road, or for driver's training[.];
    49    (vi)  The  damage  or  loss  arises out of the use of the vehicle by a
    50  person other than: (1) an authorized driver; [a duly licensed parent  or
    51  child  over  the  age of eighteen thereof who permanently resides in the
    52  same household;] (2) the renter's child over the age of  eighteen  or  a
    53  parent  or  parent-in-law  of the renter, provided such child, parent or
    54  parent-in-law is properly  licensed  to  operate  a  motor  vehicle  and
    55  resides  in  the same household as the renter; or (3) a parking valet or

        S. 8389--B                          4
     1  parking garage attendant for compensation and in the  normal  course  of
     2  employment[.];
     3    (vii)  The damage or loss arises out of the use of the vehicle outside
     4  of the continental United States  when  that  use  is  not  specifically
     5  authorized by the rental agreement[.]; or
     6    (viii)  The  renter,  or authorized driver [has], if different, or the
     7  renter's child over the age of eighteen or a parent or parent-in-law  of
     8  the  renter,  if applicable, have failed to comply with the requirements
     9  for reporting damage or loss as set forth in subdivision  five  of  this
    10  section.
    11    (d) A customer may void optional vehicle protection at no charge with-
    12  in  twenty-four  hours  of  purchase provided that the customer: (i) has
    13  [rented the vehicle for] entered into a rental agreement with a term  of
    14  two  or  more  days, (ii) appears in person at any branch of the vehicle
    15  rental company together with  the  vehicle  that  shall  be  subject  to
    16  inspection,  and  (iii) signs a cancellation form provided by the rental
    17  vehicle company. After twenty-four hours of  purchase,  a  customer  may
    18  prospectively   terminate  optional  vehicle  protection  at  any  time,
    19  provided the customer: (i) appears in person at any branch of the  vehi-
    20  cle  rental  company  together with the vehicle that shall be subject to
    21  inspection; (ii) voids the optional vehicle protection in  writing;  and
    22  (iii)  pays  the  optional  vehicle  protection  charge  for any full or
    23  partial rental day or portion of a day during which the optional vehicle
    24  protection was in effect.
    25    3. Subject to the provisions of subdivisions six, seven, and  nine  of
    26  this  section,  a  rental  vehicle company may hold an authorized driver
    27  liable for actual damage to, or loss  of,  a  rental  vehicle,  provided
    28  that:  (a) any claim for such damage shall be based on a physical survey
    29  and shall be made upon the return of the  rental  vehicle,  unless  such
    30  survey  is precluded because the vehicle is returned by automation [or],
    31  returned after-hours [which precludes such survey], or recovered by  the
    32  rental  company,  in which event, any claim must be made within ten days
    33  after return or recovery; and (b) any charge for repair of  such  damage
    34  shall  be  limited  to actual and reasonable costs and shall be assessed
    35  and billed separately and apart from the rental agreement. For  purposes
    36  of  this  subdivision, "returned by automation" means a return [acknowl-
    37  edged by machine receipt and] where there is no interaction with  rental
    38  vehicle company personnel; and "after-hours" return means a return after
    39  normal  business  hours and in which the keys [and rental agreement] are
    40  [deposited in] returned to the rental vehicle  company  [office]  via  a
    41  drop box or other process offered by the rental vehicle company.
    42    4. (a) Any rental vehicle company which states or permits to be stated
    43  the  rental  costs  of a rental vehicle in any advertisement shall state
    44  conspicuously, in plain language and in conjunction with the  advertised
    45  rental  cost  of  the vehicle, the daily rate of the applicable optional
    46  vehicle protection, that the rate constitutes an additional daily charge
    47  to the renter, that the purchase of such  protection  is  optional,  and
    48  that  prospective  renters  should examine their credit card protections
    49  and automobile insurance policies for rental vehicle coverage.
    50    (b) Where a written advertisement, including all print media, contains
    51  the statement of the rental cost of the vehicle, the disclosure required
    52  by this section shall be printed in type no less than ten point type.
    53    (c) When the website of a rental vehicle company or the video  presen-
    54  tation  of  a television or internet advertisement by the rental vehicle
    55  company contains the written statement of the rental cost of a  vehicle,

        S. 8389--B                          5
     1  the  depiction  of  the cost of the optional vehicle protection shall be
     2  clear and conspicuous.
     3    (d)  When  a  radio advertisement or the audio presentation of a tele-
     4  vision advertisement contains the statement of the rental  cost  of  the
     5  motor  vehicle,  the oral statement of the rental cost shall immediately
     6  be accompanied by an oral statement of the cost of the optional  vehicle
     7  protection.
     8    (e) When a telephone, internet or other inquiry for the rental cost of
     9  a  vehicle is made to a rental vehicle company  which involves an inter-
    10  action with a representative of a rental vehicle company, the  represen-
    11  tative  of  the  rental  vehicle  company shall, in response to [an] the
    12  inquiry [by the caller], advise that additional optional  products  that
    13  may  be  offered  by  the rental vehicle company are not included in the
    14  daily rental rate.  If an inquiry is  made  regarding  optional  vehicle
    15  protection,  the  representative  shall provide the cost of the optional
    16  vehicle protection and state that the purchase  of  such  protection  is
    17  optional  and  that the renter's personal automobile insurance or credit
    18  card may provide coverage.
    19    (f) Any rental vehicle company that offers optional vehicle protection
    20  to [an authorized driver]  a  renter  shall  [inform]  disclose  to  the
    21  [authorized  driver  in  posted  signs or in pamphlets, written in plain
    22  language, of all of the information required to  be  disclosed  by  this
    23  section. The requirements of this paragraph shall be deemed to be satis-
    24  fied  if  the  rental  vehicle  company places the] renter the following
    25  information on posted signs or pamphlets prominently  and  conspicuously
    26  displayed where they may be easily seen or reached by customers:
    27                                  "NOTICES
    28    THE FOLLOWING IS A GENERAL SUMMARY OF RENTER'S RIGHTS AND OBLIGATIONS.
    29  FOR COMPLETE DETAILS, REFER TO THE RENTAL AGREEMENT.
    30    OPTIONAL  VEHICLE PROTECTION (OVP): This contract offers, for an addi-
    31  tional charge, OVP to cover your financial responsibility for damage  or
    32  loss  to  the  rental  vehicle.  OVP  is  also commonly referred to as a
    33  "collision damage waiver".  The purchase of OVP is optional and  may  be
    34  declined.    Before  deciding  whether  to purchase OVP, you may wish to
    35  determine whether your credit card, or the vehicle insurance  maintained
    36  by  yourself  or someone in your household, affords you any coverage for
    37  damage to the rental vehicle, and the amount  of  deductible  under  any
    38  such coverage.
    39    OVP  -  WHEN  VOID:  OVP  is void and shall not apply to the following
    40  situations:
    41    1. If the damage or loss is caused as a result of the driver's  inten-
    42  tional  acts;  willful,  wanton,  or  reckless conduct of the driver; or
    43  operation of the vehicle while intoxicated or unlawfully impaired by the
    44  use of alcohol or drugs;
    45    2. The rental vehicle company  entered  into  the  rental  transaction
    46  based  on  fraudulent  or  materially  false information supplied by the
    47  renter or authorized driver;
    48    3. The damage or loss arises out of the use of the rental vehicle:
    49    (a) while engaged in the commission of a crime, other than  a  traffic
    50  infraction;
    51    (b)  to  carry  persons or property for hire, to push or tow anything,
    52  while engaged in a speed contest, operating off road,  or  for  driver's
    53  training;
    54    (c) by a person other than: (1) an authorized driver; (2) the renter's
    55  child  over  the  age  of  eighteen  or a parent or parent-in-law of the

        S. 8389--B                          6
     1  renter,  provided  such  child,  parent  or  parent-in-law  is  properly
     2  licensed to operate a motor vehicle and resides in the same household as
     3  the  renter;  or  (3)  a  parking  valet or parking garage attendant for
     4  compensation and in the normal course of employment;
     5    (d)  outside  of  the  continental United States when not specifically
     6  authorized by the rental agreement;
     7    (e) where the renter  or  authorized  driver,  if  different,  or  the
     8  renter's  child over the age of eighteen or a parent or parent-in-law of
     9  the renter, if applicable, failed to comply with  the  requirements  for
    10  reporting damage or loss as set forth in law.
    11    OVP  -  DAMAGE  REPORTING REQUIREMENTS: If the rental vehicle sustains
    12  damage or loss, the renter and other authorized driver,  as  applicable,
    13  are  required  to  complete  and return an incident report notice to the
    14  rental vehicle company.  An authorized driver other than the  renter  is
    15  only  required  to  complete and return an incident report notice to the
    16  rental vehicle company if such authorized driver was operating the vehi-
    17  cle when the incident occurred.
    18    OVP - RIGHT TO INSPECT VEHICLE DAMAGES: The renter and his/her insurer
    19  have the right to request an inspection of the  vehicle  damages  within
    20  seventy-two hours of the return of the vehicle. Failure of the renter or
    21  his/her  insurer  to  request  an inspection within seventy-two hours of
    22  return shall be deemed a waiver of such  person  or  entity's  right  to
    23  inspect the damaged vehicle.
    24    THEFT  OF  THE  RENTAL VEHICLE: If the rental vehicle is stolen during
    25  the term of a rental agreement, an authorized  driver  must  report  the
    26  theft  of  the  rental  vehicle  to the rental vehicle company and a law
    27  enforcement agency within twelve hours of learning of such theft."
    28    (g) The following disclosure notice shall be made on the face  of  the
    29  rental  agreement  either  by  stamp,  label  or  as part of the written
    30  contract or on any other written document provided  to  the  [authorized
    31  driver  at  the time such driver takes possession of the vehicle] renter
    32  upon execution of such contract, and shall be set apart in boldface type
    33  and in no smaller print than ten point type until six months  after  the
    34  effective  date of the chapter of the laws of two thousand eighteen that
    35  amended this section, when upon such date such notice  shall  be  in  no
    36  smaller print than twelve point type:
    37    "NOTICE:  This  contract  offers,  for  an additional charge, optional
    38  vehicle protection to cover your financial responsibility for damage  or
    39  loss  to the rental vehicle. The purchase of optional vehicle protection
    40  is optional and may be declined. You are advised to  carefully  consider
    41  whether to purchase this protection if you have rental vehicle collision
    42  coverage  provided  by  your credit card or automobile insurance policy.
    43  Before deciding whether to purchase optional vehicle protection, you may
    44  wish to determine whether your credit card  or  your  vehicle  insurance
    45  affords  you coverage for damage to the rental vehicle and the amount of
    46  deductible under such coverage."
    47    (h) The contract shall also include in boldface type and in no smaller
    48  print than ten point type until six months after the effective  date  of
    49  the  chapter  of  the  laws  of  two thousand eighteen that amended this
    50  section, when upon such date such notice shall be in  no  smaller  print
    51  than  twelve point type and, in plain language, [any other conditions or
    52  exclusions applicable to the optional  vehicle  protection.  The  rental
    53  vehicle  company]  the  conditions and exclusions set forth in paragraph
    54  (c) of subdivision two of  this  section.  Upon  identification  by  the
    55  rental  vehicle  company  of  damage  to the rental vehicle, such rental
    56  vehicle company shall [also] inform the [authorized  driver]  renter  of

        S. 8389--B                          7
     1  his  or  her  right  to inspect the vehicle, and the procedures and time
     2  frames for doing so, pursuant to [paragraph] paragraphs (b) and  (c)  of
     3  subdivision five of this section.
     4    5.  (a) Upon identification of damage by the rental vehicle company at
     5  the return of the vehicle, termination of the rental contract, or within
     6  ten days if a survey for damage is  precluded  because  the  vehicle  is
     7  returned  by  automation [or], returned after-hours, or recovered by the
     8  rental vehicle company, the rental  vehicle  company  shall  furnish  an
     9  incident  report  form  and a notice, pursuant to this paragraph, of the
    10  [authorized driver's] obligation of  the  renter  and  other  authorized
    11  driver,  if  applicable,  to  execute  and  return to the rental vehicle
    12  company a complete and accurate incident report describing any  physical
    13  and/or  mechanical  damage.  An  authorized driver other than the renter
    14  shall be required to execute and return such incident report  form  only
    15  if  such  authorized  driver was operating the vehicle when the incident
    16  occurred. If the  vehicle  is  returned  by  automation  [or],  returned
    17  after-hours,  or  recovered by the rental vehicle company, such incident
    18  report form and notice shall be mailed by overnight delivery service  or
    19  certified  mail,  return  receipt  requested,  and  another copy of such
    20  notification shall be sent by regular mail. The rental  vehicle  company
    21  shall  retain for six years a copy of such notice and the certified mail
    22  return receipt.
    23    (b) [Upon return of the vehicle, or within] Within  seventy-two  hours
    24  [if  the  return is by automation or after-hours, the authorized driver]
    25  of receipt of the incident report form and notice, either the renter  or
    26  his  or  her  insurer  must  notify or send notice to the rental vehicle
    27  company that [they wish] either  he,  she,  or  the  insurer  wishes  to
    28  inspect  the  damaged  vehicle. [The inspection must be completed within
    29  seven days of the return date of the vehicle.] If the [authorized  driv-
    30  er]  renter  or his or her insurer does not notify or send a request for
    31  this inspection within the  seventy-two  hour  period,  [the  authorized
    32  driver  or  his  or  her] he, she, or the insurer will be deemed to have
    33  waived this right.
    34    (c) If the renter or other authorized  driver  declines  or  fails  to
    35  complete  and  return the incident report required pursuant to paragraph
    36  (a) of this subdivision, the rental vehicle  company  shall,  no  sooner
    37  than  [twenty]  ten  days  after the mailing of notification pursuant to
    38  such paragraph (a), mail another copy of the  incident  report  together
    39  with  a  letter  stating  that the renter or other authorized driver has
    40  declined or otherwise failed to complete and return the incident report.
    41  Such mailing shall be by overnight delivery service or  certified  mail,
    42  return receipt requested, and another copy of such notification by regu-
    43  lar  mail, with proof of mailing by production of a certificate of mail-
    44  ing from the post office. [Within seventy-two hours  of  return  of  the
    45  vehicle,  the  authorized  driver  or his or her insurer must notify the
    46  rental vehicle company that he or she  wishes  to  inspect  the  damaged
    47  vehicle.  The  inspection  must  be  completed  within seven days of the
    48  return date of the vehicle. If the  authorized  driver  or  his  or  her
    49  insurer  does  not  request  this inspection within the seventy-two hour
    50  period, the authorized driver or his or her insurer will  be  deemed  to
    51  have  waived this right.] When a request to inspect the vehicle has been
    52  timely made by the renter or his or her insurer, the inspection must  be
    53  completed  within  seven  days  of  such  request. If the rental vehicle
    54  company determines the damaged vehicle to be a total loss and subject to
    55  salvage, such seventy-two hour period for notification or waiver of  the
    56  wish to inspect the damaged vehicle shall not apply, and the [authorized

        S. 8389--B                          8

     1  driver]  renter  or his or her insurer shall have ten business days from
     2  the [authorized driver's] renter's  receipt  of  notification  from  the
     3  rental  vehicle company pursuant to paragraph (a) of this subdivision to
     4  inspect the damaged vehicle, unless the rental vehicle company agrees to
     5  provide  access  to  such  damaged  vehicle beyond the ten business days
     6  provided herein. Within the  limits  provided  in  this  paragraph,  the
     7  rental  vehicle  company  shall  identify  the  repairer of, and provide
     8  access to, the damaged vehicle, in order to verify the nature and extent
     9  of damages, repairs and repair costs, and/or repair estimates.
    10    (d) All notices shall be mailed to the [authorized  driver's]  address
    11  of  the  renter and other authorized driver, if applicable, as stated on
    12  his or her license, or other address as designated by him or her on  the
    13  rental agreement.
    14    (e)  The  renter  and  other  authorized  driver, if applicable, shall
    15  complete and return the incident report within ten days of  the  receipt
    16  of the notice.
    17    (f)  The  notice  required  by  this  subdivision shall be in at least
    18  twelve point bold face type and shall contain the statement: "Failure to
    19  completely and accurately fill out and return an incident report  within
    20  ten  days of receipt of this notice may make the renter or other author-
    21  ized driver liable for damages sustained to the rental  vehicle.  Except
    22  where  the  damaged vehicle is determined to be a total loss and subject
    23  to salvage, the [authorized driver] renter or his  or  her  insurer  has
    24  seventy-two  hours  from the return or recovery of the vehicle to notify
    25  the rental vehicle company that he or she wishes to inspect the  damaged
    26  vehicle.  The inspection must be completed within seven business days of
    27  the [return date of the vehicle] request to inspect the vehicle. If  the
    28  [authorized  driver  or his or her insurer does not request this] rental
    29  vehicle company does not receive notification from the renter or his  or
    30  her insurer requesting such inspection within the seventy-two hour peri-
    31  od,  the  [authorized  driver  or] renter and his or her insurer will be
    32  deemed to have waived this right. If the rental vehicle  company  deter-
    33  mines  the  damaged  vehicle  to be a total loss and subject to salvage,
    34  such seventy-two hour period for notification or waiver of the  wish  to
    35  inspect  the  damaged vehicle shall not apply, and such right to inspect
    36  the damaged vehicle shall expire ten business days from the  [authorized
    37  driver's] renter's receipt of this notice from the rental vehicle compa-
    38  ny [at the return of the vehicle or receipt of the first mailing of this
    39  notice  in  the  event  of  return of the vehicle by automation or after
    40  hours]. Upon request of the [authorized driver] renter  or  his  or  her
    41  insurer,  we  will  provide a copy of [our] the professional estimate of
    42  the costs of repairing the damaged motor vehicle."  Information that  is
    43  provided  in response to a request by a rental vehicle company, but that
    44  is not provided on an incident report form, shall satisfy any  reporting
    45  obligation  of  a  renter or authorized driver if such response substan-
    46  tially complies with the applicable requirements  of  this  section.  If
    47  additional  information  is  reasonably  required  by the rental vehicle
    48  company in order to adjust any claim of loss, same shall be requested of
    49  the renter or authorized driver as soon as reasonably  practicable,  who
    50  shall respond to same as soon as reasonably practicable.
    51    (g)  (i) For purposes of this subdivision, each of the following shall
    52  constitute an "incident report form" [shall be defined as]: (A) a  motor
    53  vehicle  accident  report  pursuant  to  section six hundred five of the
    54  vehicle and traffic law; or (B) any similar appropriate  form  furnished
    55  by the rental vehicle company.

        S. 8389--B                          9
     1    (ii)  An  incident report form described in clause (B) of subparagraph
     2  (i) of this paragraph:
     3    (A)  may  be  sent  or  given to a renter and/or authorized driver, as
     4  applicable, with a request that  the  renter  and/or  authorized  driver
     5  provide  information  pursuant  to  this  section concerning damage to a
     6  vehicle rented to the renter or operated by an authorized driver, as the
     7  case may be; and
     8    (B) such a form may also be made available as a fill-in  form  on  the
     9  rental  vehicle  company's website, and the renter or authorized driver,
    10  as the case may be, shall be advised of the availability  of  such  web-
    11  based fill-in form when a request for incident information is made under
    12  this subdivision.
    13    (h)  Provided,  however,  if  the renter or other authorized driver is
    14  physically incapable of completing the report, the requirements of  this
    15  subdivision  shall  lapse  until after he or she is able to complete the
    16  report and is notified that he or  she  must  complete  and  return  the
    17  report as required by paragraph (b) of this subdivision.
    18    (i) Provided, further, the rental vehicle company must, at least twen-
    19  ty  days  prior  to commencing an action against the [authorized driver,
    20  the rental vehicle company must prove] renter or other authorized  driv-
    21  er,  if  applicable, provide the [authorized driver had] renter or other
    22  authorized driver, if applicable, an additional opportunity to [provide]
    23  complete and submit the incident report by providing  a  second  notice,
    24  along  with  another  incident  report  form,  by certified mail, return
    25  receipt requested, and another copy of such notice and  report  form  by
    26  regular  mail,  with  proof of mailing by production of a certificate of
    27  mailing[; and if]. If the [authorized driver provides] renter  or  other
    28  authorized  driver,  as  applicable,  sends  the  rental vehicle company
    29  [with] a completed incident report within fifteen days of the receipt of
    30  the notice, the provisions of this subdivision shall  be  deemed  satis-
    31  fied.
    32    6.  (a)  A rental vehicle company may hold an authorized driver liable
    33  to the extent permitted under this chapter for  physical  or  mechanical
    34  damage  to  the  rental  vehicle  that occurs during the time the rental
    35  vehicle is under  the  rental  agreement;  provided,  however,  that  [a
    36  renter]  an authorized driver shall not be liable for [mechanical damage
    37  unrelated to an accident, nor for] any normal wear and tear  or  [other]
    38  mechanical  damage  that could reasonably be expected from normal use of
    39  the vehicle[, except in instances where abuse or neglect by  the  driver
    40  is  shown].  For the purposes of this subdivision, the term "normal wear
    41  and tear" shall mean the deterioration of the condition of  the  vehicle
    42  or its component parts due to repetitive use and does not include damage
    43  that  materially  diminishes  the value of the vehicle and arises from a
    44  specific occurrence or accident during the time the  rental  vehicle  is
    45  subject  to  the  rental  agreement; and the term "actual and reasonable
    46  costs" shall mean the [repair price reduced by all discounts paid by the
    47  rental vehicle company to the repairer of the vehicle,  including]  cost
    48  to  repair  the  vehicle  including  all discounts and price adjustments
    49  available to the rental vehicle company  and  shall  include  costs  for
    50  towing, storage, and impound fees where applicable.
    51    (b) The total liability of an authorized driver under paragraph (a) of
    52  this  subdivision  for  damage  to  a motor vehicle shall not exceed the
    53  lesser of:
    54    (i) the actual and reasonable costs that the  rental  vehicle  company
    55  incurred  to repair the motor vehicle or that the rental vehicle company
    56  would have incurred if the motor vehicle had been repaired, which  shall

        S. 8389--B                         10
     1  reflect any discounts, price reductions, or adjustments available to the
     2  rental vehicle company; or
     3    (ii) the fair market value of the motor vehicle immediately before the
     4  damage  occurred,  as determined in the applicable market for the retail
     5  sale of the motor vehicle, less any net disposal proceeds.
     6    (c) The total liability of an authorized driver under paragraph (a) of
     7  this subdivision for loss of a motor vehicle shall not exceed reasonable
     8  costs incurred by the rental vehicle company for the loss due  to  theft
     9  of  the rental vehicle up to its fair market value, as determined by the
    10  applicable market for the retail sale of that vehicle if  it  is  estab-
    11  lished  that  an authorized driver failed to exercise reasonable care or
    12  that an authorized driver committed, or aided or abetted in the  commis-
    13  sion of, the theft of the rental motor vehicle.
    14    (d)  Damages  incurred by rental vehicle companies for the loss of use
    15  of a rental vehicle and related administrative fees shall not be  recov-
    16  ered  [from authorized drivers] from any authorized driver or his or her
    17  insurer.
    18    (e) A rental vehicle company  shall  not  hold  an  authorized  driver
    19  liable for any amounts that the rental vehicle company recovers from any
    20  other party.
    21    (f)  A  rental vehicle company shall not collect or attempt to collect
    22  the amount described in paragraph (b) of  this  subdivision  unless  the
    23  rental vehicle company:
    24    (i)  obtains  an estimate from a repair company or an appraiser in the
    25  business of providing such appraisals on the cost of repairing the motor
    26  vehicle;
    27    (ii) provides a copy of the estimate and  photographic  evidence  upon
    28  request  to  the  renter  or authorized driver, as applicable who may be
    29  liable under paragraph (a) of this subdivision, [or] and the insurer  of
    30  [the authorized driver] such renter or authorized driver, as applicable;
    31  and
    32    (iii)  submits  a  copy  of the estimate with any claim to collect the
    33  amount described in paragraph (b) of this subdivision.
    34    (g) A claim against an authorized driver resulting from damage or loss
    35  to a rental vehicle shall be  reasonable  and  [rationally  related  to]
    36  reflect  the value of the actual loss incurred. A rental vehicle company
    37  shall mitigate damages where possible and shall not  assert  or  collect
    38  any  claim for physical damage which exceeds the amount authorized under
    39  paragraph (b) of this subdivision.
    40    (h) If insurance coverage exists under [the]  an  authorized  driver's
    41  applicable  insurance  policy,  [the] such authorized driver may require
    42  that the rental vehicle company submit any claims to [the] such  author-
    43  ized driver's insurance carrier. Upon the request of an authorized driv-
    44  er,  the  rental  vehicle  company shall submit any claims to [the] such
    45  authorized driver's insurance carrier and shall not make any written  or
    46  oral  representations  to the contrary, nor shall it make any written or
    47  oral representations that it will not negotiate with [the] such  author-
    48  ized driver's insurance carrier.
    49    7. (a) No rental vehicle company shall [require] collect or charge any
    50  security, deposit, or [charge] payment for damage in any form, by credit
    51  card,  debit  card  or  otherwise,  or  report  the debt to any consumer
    52  reporting agency, as defined in subdivision (e) of section three hundred
    53  eighty-a of this chapter, during the term of the rental agreement  [or],
    54  pending  resolution  of any dispute, or prior to obtaining judgment in a
    55  court of competent jurisdiction.

        S. 8389--B                         11
     1    (b) No rental vehicle company shall require a deposit  or  an  advance
     2  charge against the credit card or debit card of an authorized driver, in
     3  any  form,  for  damages  to a rental vehicle which is in the authorized
     4  driver's possession or control.
     5    (c)  No  rental  vehicle company shall [require] collect or charge any
     6  payment [to the] from an authorized driver  for  damage  to  the  rental
     7  vehicle  [company,] upon [the authorized driver's] return or recovery of
     8  the vehicle in a damaged condition, until after the cost of  the  damage
     9  to  the  vehicle  and liability therefor is agreed to between the rental
    10  vehicle company and [the] an authorized driver or his or her insurer, or
    11  is determined pursuant to law or rental agreement provisions  consistent
    12  with  law  and  the  rights  and  obligations set forth in this section;
    13  provided, however, that a rental vehicle company is not  precluded  from
    14  presenting  a claim to [the] an authorized driver and his or her insurer
    15  pursuant to other provisions of this section.
    16    (d) Causes of action concerning the existence of, liability  for,  and
    17  extent  and  cost  of damage to the vehicle shall, where appropriate, be
    18  commenced by a rental vehicle company  in  a  [commercial  claims  part]
    19  court  of competent jurisdiction, in accordance with the limitations and
    20  jurisdiction of the appropriate court  act  provided  the  claimant  has
    21  first mailed a demand letter. A demand letter sent by the rental vehicle
    22  company  pursuant to this paragraph shall contain: (i) the name and post
    23  office address of the rental vehicle company, and of  its  attorney,  if
    24  any;  (ii) the nature of the claim; (iii) the time when, the place where
    25  and the manner in which the claim arose, if known, or if not known,  the
    26  time  when and place where the damage was discovered by the rental vehi-
    27  cle company; and (iv) the items of damage or injuries  claimed  to  have
    28  been  sustained, accompanied by supporting documentation, such as repair
    29  bills, invoices and estimates in the possession of or available  to  the
    30  rental  vehicle  company.  Such  demand  letter shall be served upon the
    31  renter and the renter's insurer in a manner reasonably designed to  give
    32  actual notice, via regular and certified mail, return receipt requested.
    33  Nothing  contained herein shall prohibit a rental vehicle company and an
    34  authorized driver or his or her insurer from entering into an  agreement
    35  after a claim of loss to submit the matter to arbitration or mediation.
    36    8.  No  rental  vehicle company shall advertise or quote a rental rate
    37  that does not include all charges, except taxes or optional items and/or
    38  services or any mileage charge, which [an authorized driver] the  renter
    39  must pay to obtain a rental vehicle. Provided, however, a rental vehicle
    40  company  shall  be permitted to separately quote and charge airport fees
    41  as defined herein, which shall be in addition to the  rental  rate;  and
    42  provided  further that advertised rental rates that include locations at
    43  which airport fees apply shall clearly  indicate  that  additional  fees
    44  apply.
    45    8-a.  It shall be unlawful for any rental vehicle company to engage in
    46  any of the following practices solely on the basis of  the  geographical
    47  location  of  the  residence  of a New York state resident attempting to
    48  enter into a rental agreement:
    49    (a) refusing to rent a vehicle;
    50    (b) imposing any additional charge for the rental of a motor  vehicle;
    51  or
    52    (c)  imposing  any additional terms, conditions or privileges upon the
    53  rental of a vehicle.
    54    9. No rental vehicle company shall hold any authorized  driver  liable
    55  for  any  damage  to,  or loss of, a rental vehicle, as provided by this
    56  section, unless the rental vehicle company prominently discloses, on the

        S. 8389--B                         12
     1  rental agreement, in at least ten point bold face  display,  the  nature
     2  and  extent  of such liability and such driver's rights and responsibil-
     3  ities [under] pursuant to paragraph  (c)  of  subdivision  two  of  this
     4  section and paragraph (g) of subdivision four of this section.
     5    10.  (a)  A rental vehicle company shall not charge in addition to the
     6  rental rate, taxes, and mileage charge, if any, any fee  which  must  be
     7  paid as a condition of renting the vehicle, such as, but not limited to,
     8  required  fuel  surcharges,  each of which shall be separately stated on
     9  the rental agreement. In addition, a rental  vehicle  company  may  also
    10  state separately and charge, where applicable, airport fees as such term
    11  is defined herein.
    12    (b)  In  addition  to the rental rate, taxes, applicable airport fees,
    13  and mileage charge, if any, a rental vehicle company may charge  for  an
    14  item  or  service provided in connection with a particular rental trans-
    15  action if the renter could have avoided  incurring  the  charge  by  not
    16  choosing to obtain or utilize the optional item or service, such as, but
    17  not  limited  to,  optional  accessories  or  services  requested by the
    18  renter, service charges incident to the renter's optional return of  the
    19  vehicle  to  a  location  other  than the location where the vehicle was
    20  rented, and charges for refueling the vehicle with as much fuel  as  was
    21  in the fuel tank at the beginning of the rental.
    22    (c) A rental vehicle company shall make available detachable or remov-
    23  able  seats  which  meet  the requirements of subdivision one of section
    24  twelve hundred twenty-nine-c of the vehicle and traffic law.
    25    (d) Fees for additional authorized drivers shall  not  exceed  [three]
    26  five dollars per additional driver per rental day.
    27    (e)  A  rental  vehicle company shall furnish with each rental vehicle
    28  pursuant to an agreement either an owner's manual  or  a  diagram  which
    29  shall  indicate the location and plain language description of the func-
    30  tions necessary for the safe and  efficient  operation  of  the  vehicle
    31  which shall at a minimum include:
    32    (i) Headlights;
    33    (ii) Brakes and emergency brake;
    34    (iii) Turn signal indicators;
    35    (iv) Hazard lights;
    36    (v) Windshield wipers and washers;
    37    (vi) Horn;
    38    (vii) Cruise control;
    39    (viii) Heat control system including defrost systems;
    40    (ix) Car locking systems; and
    41    (x)  Spare  tire  and car jack, tire wrench, and jacking locations, if
    42  and to the extent that such items were either included with the  initial
    43  sale  of  the vehicle when new, or such items were generally included in
    44  new vehicles of such year, make, model and style when initially sold  at
    45  retail.  In  the  event the rental vehicle company elects to include the
    46  owner's manual pursuant to this section, if the owner's  manual  is  not
    47  returned  with  the  vehicle,  the  renter shall be liable to the rental
    48  vehicle company for the actual replacement cost of  the  owner's  manual
    49  plus an administrative fee.
    50    11.  Any  clause  or provision of a rental agreement inconsistent with
    51  the provisions of this section shall be deemed void  as  against  public
    52  policy.
    53    12. Any rental vehicle company found by a court of competent jurisdic-
    54  tion  to have violated a provision of this section shall be subject to a
    55  penalty of not less than five hundred dollars nor more than one thousand
    56  dollars for each violation.

        S. 8389--B                         13
     1    13. (a) Whenever there shall be a violation of this section, an appli-
     2  cation may be made by the attorney general in the name of the people  of
     3  the  state of New York to a court of competent jurisdiction by a special
     4  proceeding for the imposition of a fine or the issuance of an injunction
     5  against any violation of this section, upon notice to the rental vehicle
     6  company  of  not less than five days, to enjoin and restrain the contin-
     7  uance of such violations.
     8    (b) If the court finds that the defendant has, in fact, violated  this
     9  section,  an  injunction  may  be  issued  by  such court, enjoining and
    10  restraining any further violation,  without  requiring  proof  that  any
    11  person has, in fact, been injured or damaged thereby.
    12    (c)  In  any  proceeding  pursuant  to this subdivision, the court may
    13  direct restitution and  make  allowances  to  the  attorney  general  as
    14  provided in section sixty-three of the executive law.
    15    (d)  In  support  of any application pursuant to this subdivision, the
    16  attorney general is authorized to take proof, determine  relevant  facts
    17  and issue subpoenae in accordance with the civil practice law and rules.
    18    13-a.  A  rental  vehicle  company  shall not use information from any
    19  global positioning system technology to determine or impose  any  costs,
    20  fees,  charges,  or  penalties on an authorized driver for such driver's
    21  use of a rental vehicle. The use of global positioning technology  shall
    22  not  limit  the right of a rental vehicle company to impose costs, fees,
    23  charges, or penalties to recover a vehicle that is lost,  misplaced,  or
    24  stolen.  The  provisions  of  this subdivision shall not be construed to
    25  modify or supersede any other provision of law.
    26    14. An authorized driver shall provide notice to  the  rental  vehicle
    27  company  [or] and law enforcement agency within twelve hours of learning
    28  of the theft of the rental vehicle.
    29    15. In accordance with any  applicable  federal  law  or  rule,  every
    30  rental  vehicle  company  shall  display  the following in a conspicuous
    31  location, with lettering that is legible and  that  shall  be  at  least
    32  three-quarters of an inch boldface type:
    33    "NOTICE:  New  York  State  Law  prohibits  the following practices by
    34  rental vehicle companies based upon race, color,  ethnic  origin,  reli-
    35  gion,  disability, sex, marital status, or age: (1) refusal to rent; (2)
    36  the imposition of any additional charge  (except  in  certain  instances
    37  where  the  renter  is under the age of 25). In addition, it is unlawful
    38  for any rental vehicle company to refuse to rent a vehicle to any person
    39  solely on the requirement of ownership of a credit card."
    40    16. (a) Notwithstanding any  other  provision  of  this  section,  any
    41  notice  or  disclosure of general applicability required to be provided,
    42  delivered, posted, or otherwise  made  available  by  a  rental  vehicle
    43  company  pursuant to this section shall also be deemed timely and effec-
    44  tively made where such notice or disclosure is (i) provided or delivered
    45  electronically to the renter at or before  the  time  required  provided
    46  that  such renter has given his or her expressed consent to receive such
    47  notice or disclosure in such a manner, or (ii) included in a  member  or
    48  master agreement in effect at the time of rental.
    49    (b) For the purposes of this subdivision, "member or master agreement"
    50  shall  mean  an agreement between a rental vehicle company and a renter,
    51  or an agreement between a rental vehicle company  and  another  company,
    52  which by its express terms: (i) permits such renter or specified employ-
    53  ees of such other company to bypass a retail service location and obtain
    54  a  product  or  service  directly;  (ii)  does not require the renter to
    55  execute a rental agreement at the time of  rental;  or  (iii)  does  not
    56  require the rental vehicle company to provide the renter with the rental

        S. 8389--B                         14
     1  terms and conditions at the time of rental due to the prior execution of
     2  the agreement. Electronic or written acceptance shall hereby be deemed a
     3  valid  form  of acceptance of any such notice or disclosure, and accept-
     4  ance  shall  remain  effective until such time as acceptance is affirma-
     5  tively withdrawn by the renter. Notices and disclosures  made  electron-
     6  ically  pursuant  to this subdivision shall be exempt from any placement
     7  or  stylistic  display  requirements,  including  but  not  limited   to
     8  location,  font size, typeset, or other specifically stated description;
     9  provided such disclosure is made in a clear and conspicuous manner.
    10    § 2. Section 4 of chapter 656 of the laws of 2002 amending the general
    11  business law relating to rental vehicle protections, as amended by chap-
    12  ter 82 of the laws of 2013, is amended to read as follows:
    13    § 4. This act shall take effect on the ninetieth day  after  it  shall
    14  have become a law[; provided that all of the amendments made by this act
    15  shall expire and be deemed repealed June 30, 2018].
    16    § 3. Section 4 of chapter 656 of the laws of 2002 amending the general
    17  business  law  relating  to  rental  vehicle protections, as proposed in
    18  legislative bills numbers S. 8317 and A. 11097, is amended  to  read  as
    19  follows:
    20    §  4.  This  act shall take effect on the ninetieth day after it shall
    21  have become a law[; provided that all of the amendments made by this act
    22  shall expire and be deemed repealed June 30, 2023].
    23    § 4. This act shall take effect immediately; provided, however that:
    24    (a) section one of this act shall take effect  on  the  ninetieth  day
    25  after it shall have become a law and shall expire and be deemed repealed
    26  June 30, 2023;
    27    (b) if section 1 of a chapter of the laws of 2018 amending chapter 656
    28  of the laws of 2002 amending the general business law relating to rental
    29  vehicle  protections,  as  proposed in legislative bills numbers S. 8317
    30  and A. 11097, takes effect then section three of  this  act  shall  take
    31  effect  on  the  same date and in the same manner as such chapter of the
    32  laws of 2018, takes effect and section two of this act shall  be  deemed
    33  repealed.
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