Bill Text: NY S08389 | 2017-2018 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8389 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 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; 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 of13the vehicle and traffic law,] for a period not to exceed thirty contin- 14 uous days. 15 (c) "Rental vehicle company" means any person or organization, or any 16 subsidiary or affiliate, including a franchisee, in the business of 17 providing rental vehicles to the public from locations in this state. 18 (d) "Optional vehicle protection" means a rental vehicle company's 19 agreement not to hold an authorized driver liable for all or part of any 20 damage or loss to the rented vehicle, any loss of use of the rented 21 vehicle, or any storage, impound, towing or administrative charges for 22 which [the] an authorized driver may be liable. The term "optional vehi- 23 cle protection" shall encompass within its meaning other similar terms 24 that may be used by rental vehicle companies, such as but not limited to EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08643-13-8S. 8389 2 1 "Collision Damage Waiver", "CDW", "Damage Waiver", "Loss Damage Waiver", 2 "LDW", and "Physical Damage Waiver". 3 (e) "Renter" means a person or entity that obtains the use of a 4 [private passenger] rental vehicle from a rental vehicle company under 5 terms of a rental agreement. 6 (f) "Consolidated facilities charge" means the allowable recovery by a 7 rental vehicle company from its renters of those fees, including any 8 taxes or fees paid on such fees, for the finance, design, construction 9 and operation of consolidated airport facilities and or the finance, 10 design, construction and operation of common use transportation systems 11 that move passengers between airport terminals and [those] consolidated 12 airport car rental facilities. The aggregate amount to be collected 13 shall not exceed the reasonable costs, as determined annually by an 14 independent audit paid for by the airport operator or its governing 15 entity, to finance, design, construct and operate those facilities and 16 common use transportation systems. The consolidated [facility] facili- 17 ties charge shall apply only to vehicle rentals occurring at vehicle 18 rental locations subject to the imposition of such charge by an airport 19 operator or its governing entity. The term "consolidated facilities 20 charge" shall encompass within its meaning other similar terms that may 21 be used by airport authorities or rental vehicle companies, such as, but 22 not limited to "customer facility charge" and "transportation facility 23 charge". 24 (g) "Concession recovery fee" means the allowable recovery by a rental 25 vehicle company from its renters of those fees, including any taxes or 26 fees paid on such fees, which an airport operator or its governing enti- 27 ty imposes on a rental vehicle company's applicable revenues or rental 28 transactions, as defined and stated in a concession agreement that 29 authorizes a rental vehicle company to operate at an airport located in 30 this state. The concession recovery fee shall apply only to vehicle 31 rentals occurring at vehicle rental locations subject to the imposition 32 of such fee by an airport operator or its governing entity. The term 33 "concession recovery fee" shall encompass within its meaning other simi- 34 lar terms that may be used by airport authorities or rental vehicle 35 companies, such as, but not limited to, "concession fee", "concession 36 recovery fee surcharge", "privilege fee" and "airport access fee". 37 (h) "Airport fees" means [the] consolidated [facility charge] facili- 38 ties charges and/or [the] concession recovery [fee as those terms are39defined herein] fees. 40 (i) "Concession agreement" means an agreement, permit or license 41 entered into between an airport operator or its governing entity and 42 rental vehicle company setting forth the terms and conditions under 43 which the rental vehicle company may transact its rental business at 44 such airport. 45 (j) "Consolidated airport facilities" means those buildings or phys- 46 ical structures, including, but not limited to, parking garages, parking 47 areas and fueling systems, constructed by or on behalf of the airport 48 operator or its governing entity to be jointly used by all rental vehi- 49 cle companies operating at such airport pursuant to a concession agree- 50 ment. 51 (k) "Rental vehicle" means a rental vehicle as defined in section one 52 hundred thirty-seven-a of the vehicle and traffic law, but excluding 53 motor vehicles designed, used or maintained primarily for the transpor- 54 tation of property. 55 2. (a) A rental vehicle company shall not charge more than [nine56dollars] the following amounts per full or partial twenty-four hourS. 8389 3 1 rental day for optional vehicle protection [if the manufacturer's2suggested retail price of the rental vehicle is not greater than thirty3thousand dollars. A rental vehicle company shall not charge more than4twelve dollars per full or partial twenty-four hour rental day for5optional vehicle protection]: 6 (i) nine dollars if the manufacturer's suggested retail price of the 7 rental vehicle is not greater than [thirty] twenty thousand dollars; 8 (ii) twelve dollars if the manufacturer's suggested retail price of 9 the rental vehicle is greater than twenty thousand dollars but not 10 greater than thirty-five thousand dollars; 11 (iii) fifteen dollars if the manufacturer's suggested retail price of 12 the rental vehicle is greater than thirty-five thousand dollars but not 13 more than fifty thousand dollars; and 14 (iv) the amount that may be charged for a vehicle with a manufactur- 15 er's suggested value of more than fifty thousand dollars shall not be 16 subject to a maximum dollar amount but shall be subject to the fair 17 market value as determined by the rental vehicle company. 18 (b) A rental vehicle company shall not sell optional vehicle 19 protection unless the [authorized driver] renter agrees to the purchase 20 of such protection in writing at or prior to the time the rental agree- 21 ment is executed. 22 (c) A rental vehicle company shall not void optional vehicle 23 protection except for one or more of the following reasons: 24 (i) The damage or loss is caused intentionally or as a result of will- 25 ful, wanton, or reckless conduct of the driver[.]; 26 (ii) The damage or loss arises out of the driver's operation of the 27 vehicle while intoxicated or impaired by the use of alcohol or drugs[.]; 28 (iii) The rental vehicle company entered into the rental transaction 29 based on fraudulent or materially false information supplied by the 30 renter or authorized driver[.]; 31 (iv) The damage or loss arises out of the use of the vehicle while 32 engaged in the commission of a crime other than a traffic infraction[.]; 33 (v) The damage or loss arises out of the use of the vehicle to carry 34 persons or property for hire, to push or tow anything, while engaged in 35 a speed contest, operating off road, or for driver's training[.]; 36 (vi) The damage or loss arises out of the use of the vehicle by a 37 person other than: (1) an authorized driver; [a duly licensed parent or38child over the age of eighteen thereof who permanently resides in the39same household;] (2) the renter's child over the age of eighteen or a 40 parent or parent-in-law of the renter, provided such child, parent or 41 parent-in-law is properly licensed to operate a motor vehicle and 42 resides in the same household as the renter; or (3) a parking valet or 43 parking garage attendant for compensation and in the normal course of 44 employment[.]; 45 (vii) The damage or loss arises out of the use of the vehicle outside 46 of the continental United States when that use is not specifically 47 authorized by the rental agreement[.]; or 48 (viii) The renter, or authorized driver [has], if different, or the 49 renter's child over the age of eighteen or a parent or parent-in-law of 50 the renter, if applicable, have failed to comply with the requirements 51 for reporting damage or loss as set forth in subdivision five of this 52 section. 53 (d) A customer may void optional vehicle protection at no charge with- 54 in twenty-four hours of purchase provided that the customer: (i) has 55 rented the vehicle for two or more days, (ii) appears in person at any 56 branch of the vehicle rental company together with the vehicle thatS. 8389 4 1 shall be subject to inspection, and (iii) signs a cancellation form 2 provided by the rental vehicle company. After twenty-four hours of 3 purchase, a customer may terminate optional vehicle protection at any 4 time, provided the customer: (i) appears in person at any branch of the 5 vehicle rental company together with the vehicle that shall be subject 6 to inspection; (ii) voids the optional vehicle protection in writing; 7 and (iii) pays the optional vehicle protection charge for any full or 8 partial rental day or portion of a day during which the optional vehicle 9 protection was in effect. 10 3. Subject to the provisions of subdivisions six, seven, and nine of 11 this section, a rental vehicle company may hold an authorized driver 12 liable for actual damage to, or loss of, a rental vehicle, provided 13 that: (a) any claim for such damage shall be based on a physical survey 14 and shall be made upon the return of the rental vehicle, unless such 15 survey is precluded when the vehicle is returned by automation [or], 16 returned after-hours [which precludes such survey], or recovered by the 17 rental company, in which event, any claim must be made within ten days 18 after return or recovery; and (b) any charge for repair of such damage 19 shall be limited to actual and reasonable costs and shall be assessed 20 and billed separately and apart from the rental agreement. For purposes 21 of this subdivision, "returned by automation" means a return [acknowl-22edged by machine receipt and] where there is no interaction with rental 23 vehicle company personnel; and "after-hours" return means a return after 24 normal business hours and in which the keys [and rental agreement] are 25 [deposited in] returned to the rental vehicle company [office] via a 26 drop box or other process offered by the rental vehicle company. 27 4. (a) Any rental vehicle company which states or permits to be stated 28 the rental costs of a rental vehicle in any advertisement shall state 29 conspicuously, in plain language and in conjunction with the advertised 30 rental cost of the vehicle, the daily rate of the applicable optional 31 vehicle protection, that the rate constitutes an additional daily charge 32 to the renter, that the purchase of such protection is optional, and 33 that prospective renters should examine their credit card protections 34 and automobile insurance policies for rental vehicle coverage. 35 (b) Where a written advertisement, including all print media, contains 36 the statement of the rental cost of the vehicle, the disclosure required 37 by this section shall be printed in type no less than ten point type. 38 (c) When the video presentation of a television or internet advertise- 39 ment by the rental vehicle company contains the written statement of the 40 rental cost of a vehicle, the depiction of the cost of the optional 41 vehicle protection shall be clear and conspicuous. 42 (d) When a radio advertisement or the audio presentation of a tele- 43 vision advertisement contains the statement of the rental cost of the 44 motor vehicle, the oral statement of the rental cost shall immediately 45 be accompanied by an oral statement of the cost of the optional vehicle 46 protection. 47 (e) When a telephone inquiry for the rental cost of a vehicle is made 48 to a rental vehicle company, the representative of the rental vehicle 49 company shall, in response to an inquiry by the caller, state that addi- 50 tional optional products that may be offered by the rental vehicle 51 company are not included in the daily rental rate. If an inquiry is 52 made regarding optional vehicle protection, the agent shall provide the 53 cost of the optional vehicle protection and state that the purchase of 54 such protection is optional and that the renter's personal automobile 55 insurance or credit card may provide coverage.S. 8389 5 1 (f) Any rental vehicle company that offers optional vehicle protection 2 to [an authorized driver] a renter shall [inform] disclose to the 3 [authorized driver in posted signs or in pamphlets, written in plain4language, of all of the information required to be disclosed by this5section. The requirements of this paragraph shall be deemed to be satis-6fied if the rental vehicle company places the] renter the following 7 information on posted signs or pamphlets prominently and conspicuously 8 displayed or offered where they may be easily seen or reached by custom- 9 ers: 10 "NOTICES 11 THE FOLLOWING IS A SUMMARY OF RENTER'S RIGHTS AND OBLIGATIONS. FOR 12 COMPLETE DETAILS, REFER TO THE RENTAL AGREEMENT. 13 OPTIONAL VEHICLE PROTECTION (OVP): This contract offers, for an addi- 14 tional charge, OVP to cover your financial responsibility for damage or 15 loss to the rental vehicle. The purchase of OVP is optional and may be 16 declined. Before deciding whether to purchase OVP, you may wish to 17 determine whether your credit card, or your vehicle insurance, affords 18 you coverage for damage to the rental vehicle, and the amount of deduct- 19 ible under such coverage. 20 OVP - WHEN VOID: OVP is void and shall not apply to the following 21 situations: 22 1. If the damage or loss is caused as a result of operator's inten- 23 tional acts; willful, wanton, or reckless conduct; or operation of the 24 vehicle while intoxicated or impaired by the use of drugs; 25 2. The renter, or authorized driver, provides fraudulent or materially 26 false information to the rental vehicle company; 27 3. The damage or loss arises out of the use of the rental vehicle: 28 (a) while engaged in the commission of a crime, other than a traffic 29 infraction; 30 (b) to carry persons or property for hire, to push or tow anything, 31 while engaged in a speed contest, operating off road, or for driver's 32 training; 33 (c) by a person other than: (1) an authorized driver; (2) the renter's 34 child over the age of eighteen or a parent or parent-in-law of the 35 renter, provided such child, parent or parent-in-law is properly 36 licensed to operate a motor vehicle and resides in the same household as 37 the renter; or (3) a parking valet or parking garage attendant for 38 compensation and in the normal course of employment; 39 (d) outside of the continental United States when not specifically 40 authorized by the rental agreement; 41 (e) where the renter or authorized driver, if different, or the 42 renter's child over the age of eighteen or a parent or parent-in-law of 43 the renter, if applicable, failed to comply with the requirements for 44 reporting damage or loss as set forth in the rental agreement. 45 OVP - DAMAGE REPORTING REQUIREMENTS: If the rental vehicle sustains 46 damage or loss, the renter and other authorized driver, if applicable, 47 are required to complete and return an incident report notice to the 48 rental vehicle company. 49 OVP - RIGHT TO INSPECT VEHICLE DAMAGES: The renter or his/her insurer 50 has the right to request an inspection of the vehicle damages within 51 seventy-two hours of the return of the vehicle. Failure of the renter or 52 his/her insurer to request an inspection within seventy-two hours of 53 return shall be deemed a waiver of the right to inspect the damaged 54 vehicle."S. 8389 6 1 (g) The following disclosure notice shall be made on the face of the 2 rental agreement either by stamp, label or as part of the written 3 contract or on any other written document provided to the [authorized4driver at the time such driver takes possession of the vehicle] renter 5 upon execution of such contract, and shall be set apart in boldface type 6 and in no smaller print than ten point type: 7 "NOTICE: This contract offers, for an additional charge, optional 8 vehicle protection to cover your financial responsibility for damage or 9 loss to the rental vehicle. The purchase of optional vehicle protection 10 is optional and may be declined. You are advised to carefully consider 11 whether to purchase this protection if you have rental vehicle collision 12 coverage provided by your credit card or automobile insurance policy. 13 Before deciding whether to purchase optional vehicle protection, you may 14 wish to determine whether your credit card or your vehicle insurance 15 affords you coverage for damage to the rental vehicle and the amount of 16 deductible under such coverage." 17 (h) The contract shall also include in boldface type and in no smaller 18 print than ten point type[, in plain language, any other conditions or19exclusions applicable to the optional vehicle protection. The rental20vehicle company] the conditions and exclusions set forth in paragraph 21 (c) of subdivision two of this section. Upon identification by the 22 rental vehicle company of damage to the rental vehicle, such rental 23 vehicle company shall [also] inform the [authorized driver] renter of 24 his or her right to inspect the vehicle pursuant to paragraph (c) of 25 subdivision five of this section. 26 5. (a) Upon identification of damage by the rental vehicle company at 27 the return of the vehicle, termination of the rental contract, or within 28 ten days if returned by automation [or], returned after-hours, or recov- 29 ered by the rental vehicle company, the rental vehicle company shall 30 furnish an incident report form and a notice, pursuant to this para- 31 graph, of the [authorized driver's] obligation of the renter and other 32 authorized driver, if applicable, to execute and return to the rental 33 vehicle company a complete and accurate incident report describing any 34 physical and/or mechanical damage. An authorized driver other than the 35 renter shall be required to execute and return such incident report form 36 only if such authorized driver was operating the vehicle when the inci- 37 dent occurred. If the vehicle is returned by automation [or], returned 38 after-hours, or recovered by the rental vehicle company, such incident 39 report form and notice shall be mailed by overnight delivery service or 40 certified mail, return receipt requested, and another copy of such 41 notification shall be sent by regular mail. The rental vehicle company 42 shall retain for six years a copy of such notice and the certified mail 43 return receipt. 44 (b) [Upon return of the vehicle, or within] Within seventy-two hours 45 [if the return is by automation or after-hours, the authorized driver] 46 of receipt of the incident report, the renter or his or her insurer must 47 notify the rental vehicle company that they wish to inspect the damaged 48 vehicle. [The inspection must be completed within seven days of the49return date of the vehicle.] If the [authorized driver] renter or his or 50 her insurer does not request this inspection within the seventy-two hour 51 period, the [authorized driver] renter or his or her insurer will be 52 deemed to have waived this right. 53 (c) If the renter or other authorized driver declines or fails to 54 complete and return the incident report required pursuant to paragraph 55 (a) of this subdivision, the rental vehicle company shall, no sooner 56 than [twenty] ten days after the mailing of notification pursuant toS. 8389 7 1 such paragraph (a), mail another copy of the incident report together 2 with a letter stating that the renter or other authorized driver has 3 declined or otherwise failed to complete and return the incident report. 4 Such mailing shall be by overnight delivery service or certified mail, 5 return receipt requested, and another copy of such notification by regu- 6 lar mail, with proof of mailing by production of a certificate of mail- 7 ing from the post office. [Within seventy-two hours of return of the8vehicle, the authorized driver or his or her insurer must notify the9rental vehicle company that he or she wishes to inspect the damaged10vehicle. The inspection must be completed within seven days of the11return date of the vehicle. If the authorized driver or his or her12insurer does not request this inspection within the seventy-two hour13period, the authorized driver or his or her insurer will be deemed to14have waived this right.] When a request to inspect the vehicle has been 15 timely made by the renter or his or her insurer, the inspection must be 16 completed within seven days of such request. If the rental vehicle 17 company determines the damaged vehicle to be a total loss and subject to 18 salvage, such seventy-two hour period for notification or waiver of the 19 wish to inspect the damaged vehicle shall not apply, and the [authorized20driver] renter or his or her insurer shall have ten business days from 21 the [authorized driver's] renter's receipt of notification from the 22 rental vehicle company pursuant to paragraph (a) of this subdivision to 23 inspect the damaged vehicle, unless the rental vehicle company agrees to 24 provide access to such damaged vehicle beyond the ten business days 25 provided herein. Within the limits provided in this paragraph, the 26 rental vehicle company shall identify the repairer of, and provide 27 access to, the damaged vehicle, in order to verify the nature and extent 28 of damages, repairs and repair costs, and/or repair estimates. 29 (d) All notices shall be mailed to the [authorized driver's] address 30 of the renter and other authorized driver, if applicable, as stated on 31 his or her license, or other address as designated by him or her on the 32 rental agreement. 33 (e) The renter and other authorized driver, if applicable, shall 34 complete and return the incident report within ten days of the receipt 35 of the notice. 36 (f) The notice required by this subdivision shall be in at least 37 twelve point bold face type and shall contain the statement: "Failure to 38 completely and accurately fill out and return an incident report within 39 ten days of receipt of this notice may make the renter or other author- 40 ized driver liable for damages sustained to the rental vehicle. Except 41 where the damaged vehicle is determined to be a total loss and subject 42 to salvage, the [authorized driver] renter or his or her insurer has 43 seventy-two hours from the return or recovery of the vehicle to notify 44 the rental vehicle company that he or she wishes to inspect the damaged 45 vehicle. The inspection must be completed within seven business days of 46 the [return date of the vehicle] request to inspect the vehicle. If the 47 [authorized driver or his or her insurer does not request this] rental 48 vehicle company does not receive notification from the renter or his or 49 her insurer requesting such inspection within the seventy-two hour peri- 50 od, the [authorized driver or] renter and his or her insurer will be 51 deemed to have waived this right. If the rental vehicle company deter- 52 mines the damaged vehicle to be a total loss and subject to salvage, 53 such seventy-two hour period for notification or waiver of the wish to 54 inspect the damaged vehicle shall not apply, and such right to inspect 55 the damaged vehicle shall expire ten business days from the [authorized56driver's] renter's receipt of this notice from the rental vehicle compa-S. 8389 8 1 ny [at the return of the vehicle or receipt of the first mailing of this2notice in the event of return of the vehicle by automation or after3hours]. Upon request of the [authorized driver] renter or his or her 4 insurer, we will provide a copy of our estimate of the costs of repair- 5 ing the damaged motor vehicle." 6 (g) For purposes of this subdivision, an "incident report" shall be 7 defined as a motor vehicle accident report pursuant to section six 8 hundred five of the vehicle and traffic law or any similar appropriate 9 form furnished by the rental vehicle company. 10 (h) Provided, however, if the renter or other authorized driver is 11 physically incapable of completing the report, the requirements of this 12 subdivision shall lapse until after he or she is able to complete the 13 report and is notified that he or she must complete and return the 14 report as required by paragraph (b) of this subdivision. 15 (i) Provided, further, the rental vehicle company must, at least twen- 16 ty days prior to commencing an action against the [authorized driver,17the rental vehicle company must prove] renter or other authorized driv- 18 er, if applicable, provide the [authorized driver had] renter or other 19 authorized driver, if applicable, an additional opportunity to [provide] 20 complete and submit the incident report by providing a second notice, 21 along with another incident report, by certified mail, return receipt 22 requested, and another copy of such notice and report by regular mail, 23 with proof of mailing by production of a certificate of mailing[; and24if]. If the [authorized driver] renter or other authorized driver, if 25 applicable, provides the rental vehicle company with a completed inci- 26 dent report within fifteen days of the receipt of the notice, the 27 provisions of this subdivision shall be deemed satisfied. 28 6. (a) A rental vehicle company may hold an authorized driver liable 29 to the extent permitted under this chapter for physical or mechanical 30 damage to the rental vehicle that occurs during the time the rental 31 vehicle is under the rental agreement; provided, however, that [a32renter] an authorized driver shall not be liable for [mechanical damage33unrelated to an accident, nor for] any normal wear and tear or [other] 34 mechanical damage that could reasonably be expected from normal use of 35 the vehicle[, except in instances where abuse or neglect by the driver36is shown]. For the purposes of this subdivision, the term "normal wear 37 and tear" shall mean the deterioration of the condition of the vehicle 38 or its component parts due to repetitive use and does not include damage 39 arising from a specific occurrence or accident during the time the 40 rental vehicle is subject to the rental agreement; and the term "actual 41 and reasonable costs" shall mean the [repair price reduced by all42discounts paid by the rental vehicle company to the repairer of the43vehicle, including] cost to repair the vehicle including all discounts 44 and price adjustments available to the rental vehicle company and shall 45 include costs for towing, storage, and impound fees where applicable. 46 (b) The total liability of an authorized driver under paragraph (a) of 47 this subdivision for damage to a motor vehicle shall not exceed the 48 lesser of: 49 (i) the actual and reasonable costs that the rental vehicle company 50 incurred to repair the motor vehicle or that the rental vehicle company 51 would have incurred if the motor vehicle had been repaired, which shall 52 reflect any discounts, price reductions, or adjustments available to the 53 rental vehicle company; or 54 (ii) the fair market value of the motor vehicle immediately before the 55 damage occurred, as determined in the applicable market for the retail 56 sale of the motor vehicle, less any net disposal proceeds.S. 8389 9 1 (c) The total liability of an authorized driver under paragraph (a) of 2 this subdivision for loss of a motor vehicle shall not exceed reasonable 3 costs incurred by the rental vehicle company for the loss due to theft 4 of the rental vehicle up to its fair market value, as determined by the 5 applicable market for the retail sale of that vehicle if it is estab- 6 lished that an authorized driver failed to exercise reasonable care or 7 that an authorized driver committed, or aided or abetted in the commis- 8 sion of, the theft of the rental motor vehicle. 9 (d) Damages incurred by rental vehicle companies for the loss of use 10 of a rental vehicle and related administrative fees shall not be recov- 11 ered [from authorized drivers] from any authorized driver or his or her 12 insurer. 13 (e) A rental vehicle company shall not hold an authorized driver 14 liable for any amounts that the rental vehicle company recovers from any 15 other party. 16 (f) A rental vehicle company shall not collect or attempt to collect 17 the amount described in paragraph (b) of this subdivision unless the 18 rental vehicle company: 19 (i) obtains an estimate from a repair company or an appraiser in the 20 business of providing such appraisals on the cost of repairing the motor 21 vehicle; 22 (ii) provides a copy of the estimate and photographic evidence upon 23 request to the [authorized driver] party who may be liable under para- 24 graph (a) of this subdivision, or the insurer of [the authorized driver] 25 such party; and 26 (iii) submits a copy of the estimate with any claim to collect the 27 amount described in paragraph (b) of this subdivision. 28 (g) A claim against an authorized driver resulting from damage or loss 29 to a rental vehicle shall be reasonable and [rationally related to] 30 reflect the value of the actual loss incurred. A rental vehicle company 31 shall mitigate damages where possible and shall not assert or collect 32 any claim for physical damage which exceeds the amount authorized under 33 paragraph (b) of this subdivision. 34 (h) If insurance coverage exists under [the] an authorized driver's 35 applicable insurance policy, [the] such authorized driver may require 36 that the rental vehicle company submit any claims to [the] such author- 37 ized driver's insurance carrier. Upon the request of an authorized driv- 38 er, the rental vehicle company shall submit any claims to [the] such 39 authorized driver's insurance carrier and shall not make any written or 40 oral representations to the contrary, nor shall it make any written or 41 oral representations that it will not negotiate with [the] such author- 42 ized driver's insurance carrier. 43 7. (a) No rental vehicle company shall [require] collect or charge any 44 security, deposit, or [charge] payment for damage in any form, by credit 45 card, debit card or otherwise, or report the debt to any consumer 46 reporting agency, as defined in subdivision (e) of section three hundred 47 eighty-a of this chapter, during the term of the rental agreement or 48 pending resolution of any dispute. 49 (b) No rental vehicle company shall require a deposit or an advance 50 charge against the credit card or debit card of an authorized driver, in 51 any form, for damages to a rental vehicle which is in the authorized 52 driver's possession or control. 53 (c) No rental vehicle company shall [require] collect or charge any 54 payment [to the] from an authorized driver for damage to the rental 55 vehicle [company,] upon [the authorized driver's] return or recovery of 56 the vehicle in a damaged condition, until after the cost of the damageS. 8389 10 1 to the vehicle and liability therefor is agreed to between the rental 2 vehicle company and [the] an authorized driver or his or her insurer, or 3 is determined pursuant to law or rental agreement provisions consistent 4 with the rights and obligations set forth in this section; provided, 5 however, that a rental vehicle company is not precluded from presenting 6 a claim to [the] an authorized driver and his or her insurer pursuant to 7 other provisions of this section. 8 (d) Causes of action concerning the existence of, liability for, and 9 extent and cost of damage to the vehicle shall, where appropriate, be 10 commenced by a rental vehicle company in a [commercial claims part] 11 court of competent jurisdiction, in accordance with the limitations and 12 jurisdiction of the appropriate court act provided the claimant has 13 first mailed a demand letter. Where the court rules specify the form and 14 substance of the demand letter, it shall be in compliance with the rules 15 of any such court. Notwithstanding the foregoing, nothing contained 16 herein shall prohibit a rental vehicle company and an authorized driver 17 or his or her insurer from agreeing to submit the matter to arbitration 18 to the extent permitted under the rental agreement, if applicable. 19 8. No rental vehicle company shall advertise or quote a rental rate 20 that does not include all charges, except taxes or optional items and/or 21 services or any mileage charge, which [an authorized driver] the renter 22 must pay to obtain a rental vehicle. Provided, however, a rental vehicle 23 company shall be permitted to separately quote and charge airport fees 24 as defined herein, which shall be in addition to the rental rate; and 25 provided further that advertised rental rates that include locations at 26 which airport fees apply shall clearly indicate that additional fees 27 apply. 28 8-a. It shall be unlawful for any rental vehicle company to engage in 29 any of the following practices solely on the basis of the geographical 30 location of the residence of a New York state resident attempting to 31 enter into a rental agreement: 32 (a) refusing to rent a vehicle; 33 (b) imposing any additional charge for the rental of a motor vehicle; 34 or 35 (c) imposing any additional terms, conditions or privileges upon the 36 rental of a vehicle. 37 9. No rental vehicle company shall hold any authorized driver liable 38 for any damage to, or loss of, a rental vehicle, as provided by this 39 section, unless the rental vehicle company prominently discloses, on the 40 rental agreement, in at least ten point bold face display, the nature 41 and extent of such liability and such driver's rights and responsibil- 42 ities [under] pursuant to paragraph (c) of subdivision two of this 43 section and paragraph (g) of subdivision four of this section. 44 10. (a) A rental vehicle company shall not charge in addition to the 45 rental rate, taxes, and mileage charge, if any, any fee which must be 46 paid as a condition of renting the vehicle, such as, but not limited to, 47 required fuel surcharges, each of which shall be separately stated on 48 the rental agreement. In addition, a rental vehicle company may also 49 state separately and charge, where applicable, airport fees as such term 50 is defined herein. 51 (b) In addition to the rental rate, taxes, applicable airport fees, 52 and mileage charge, if any, a rental vehicle company may charge for an 53 item or service provided in connection with a particular rental trans- 54 action if the renter could have avoided incurring the charge by not 55 choosing to obtain or utilize the optional item or service, such as, but 56 not limited to, optional accessories or services requested by theS. 8389 11 1 renter, service charges incident to the renter's optional return of the 2 vehicle to a location other than the location where the vehicle was 3 rented, and charges for refueling the vehicle with as much fuel as was 4 in the fuel tank at the beginning of the rental. 5 (c) A rental vehicle company shall make available detachable or remov- 6 able seats which meet the requirements of subdivision one of section 7 twelve hundred twenty-nine-c of the vehicle and traffic law. 8 (d) Fees for additional authorized drivers shall not exceed [three] 9 five dollars per additional driver per rental day. 10 (e) A rental vehicle company shall furnish with each rental vehicle 11 pursuant to an agreement either an owner's manual or a diagram which 12 shall indicate the location and plain language description of the func- 13 tions necessary for the safe and efficient operation of the vehicle 14 which shall at a minimum include: 15 (i) Headlights; 16 (ii) Brakes and emergency brake; 17 (iii) Turn signal indicators; 18 (iv) Hazard lights; 19 (v) Windshield wipers and washers; 20 (vi) Horn; 21 (vii) Cruise control; 22 (viii) Heat control system including defrost systems; 23 (ix) Car locking systems; and 24 (x) [Spare] If applicable, spare tire and car jack, tire wrench, and 25 jacking locations. In the event the rental vehicle company elects to 26 include the owner's manual pursuant to this section, if the owner's 27 manual is not returned with the vehicle, the renter shall be liable to 28 the rental vehicle company for the actual replacement cost of the 29 owner's manual plus an administrative fee. 30 11. Any clause or provision of a rental agreement inconsistent with 31 the provisions of this section shall be deemed void as against public 32 policy. 33 12. Any rental vehicle company found by a court of competent jurisdic- 34 tion to have violated a provision of this section shall be subject to a 35 penalty of not less than five hundred dollars nor more than one thousand 36 dollars for each violation. 37 13. (a) Whenever there shall be a violation of this section, an appli- 38 cation may be made by the attorney general in the name of the people of 39 the state of New York to a court of competent jurisdiction by a special 40 proceeding for the imposition of a fine or the issuance of an injunction 41 against any violation of this section, upon notice to the rental vehicle 42 company of not less than five days, to enjoin and restrain the contin- 43 uance of such violations. 44 (b) If the court finds that the defendant has, in fact, violated this 45 section, an injunction may be issued by such court, enjoining and 46 restraining any further violation, without requiring proof that any 47 person has, in fact, been injured or damaged thereby. 48 (c) In any proceeding pursuant to this subdivision, the court may 49 direct restitution and make allowances to the attorney general as 50 provided in section sixty-three of the executive law. 51 (d) In support of any application pursuant to this subdivision, the 52 attorney general is authorized to take proof, determine relevant facts 53 and issue subpoenae in accordance with the civil practice law and rules. 54 13-a. A rental vehicle company shall not use information from any 55 global positioning system technology to determine or impose any costs, 56 fees, charges, or penalties on an authorized driver for such driver'sS. 8389 12 1 use of a rental vehicle. The use of global positioning technology shall 2 not limit the right of a rental vehicle company to impose costs, fees, 3 charges, or penalties to recover a vehicle that is lost, misplaced, or 4 stolen. The provisions of this subdivision shall not be construed to 5 modify or supersede any other provision of law. 6 14. An authorized driver shall provide notice to the rental vehicle 7 company [or] and law enforcement agency within twelve hours of learning 8 of the theft of the rental vehicle. 9 15. In accordance with any applicable federal law or rule, every 10 rental vehicle company shall display the following in a conspicuous 11 location, with lettering that is legible and that shall be at least 12 three-quarters of an inch boldface type: 13 "NOTICE: New York State Law prohibits the following practices by 14 rental vehicle companies based upon race, color, ethnic origin, reli- 15 gion, disability, sex, marital status, or age: (1) refusal to rent; (2) 16 the imposition of any additional charge (except in certain instances 17 where the renter is under the age of 25). In addition, it is unlawful 18 for any rental vehicle company to refuse to rent a vehicle to any person 19 solely on the requirement of ownership of a credit card." 20 16. Notwithstanding any other provision of this section, any notice or 21 disclosure required to be provided, delivered, posted, or otherwise made 22 available by a rental vehicle company pursuant to this section shall 23 also be deemed timely and effectively made where such notice or disclo- 24 sure is (i) provided or delivered electronically to the renter at or 25 before the time required provided that the renter has given his or her 26 express consent to receive such notice or disclosure in such a manner, 27 or (ii) included in a member or master agreement in effect at the time 28 of rental. For the purposes of this section, "member or master agree- 29 ment" shall mean an agreement between a rental vehicle company and the 30 renter, or an agreement between a rental vehicle company and another 31 company, which (a) permits renters to bypass a retail service location 32 and obtain a product or service directly; (b) does not require the 33 renter to execute a rental agreement at the time of rental; or (c) does 34 not require the rental vehicle company to provide the renter with the 35 rental terms and conditions at the time of rental due to the prior 36 execution of the agreement. Electronic or written acceptance shall here- 37 by be deemed a valid form of acceptance of any such notice or disclo- 38 sure, and acceptance shall remain effective until such time as accept- 39 ance is affirmatively withdrawn by the renter. Notices and disclosures 40 made electronically pursuant to this subdivision shall be exempt from 41 any placement or stylistic display requirements, including but not 42 limited to location, font size, typeset, or other specifically stated 43 description; provided such disclosure is made in a clear and conspicuous 44 manner. 45 § 2. Section 4 of chapter 656 of the laws of 2002 amending the general 46 business law relating to rental vehicle protections, as amended by chap- 47 ter 82 of the laws of 2013, is amended to read as follows: 48 § 4. This act shall take effect on the ninetieth day after it shall 49 have become a law[; provided that all of the amendments made by this act50shall expire and be deemed repealed June 30, 2018]. 51 § 3. This act shall take effect immediately; provided, however, 52 section one of this act shall take effect on the ninetieth day after it 53 shall have become a law; provided, further, that section one of this act 54 shall expire and be deemed repealed June 30, 2023.
