A 1292: Prohibits rental car companies and used car companies from renting, selling or leasing vehicles that have been recalled due to safety risks.

  
  STATE OF NEW YORK ________________________________________________________________________ 1292 2025-2026 Regular Sessions  IN ASSEMBLY January 9, 2025 ___________ Introduced by M. of A. ROSENTHAL -- read once and referred to the Committee on Consumer Affairs and Protection AN ACT to amend the general business law, in relation to prohibiting rental car companies and used car companies from renting, selling or leasing vehicles that have been recalled due to safety risks 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 is amended by 2 adding a new subdivision 10-a to read as follows: 3 10-a. (a) Except as provided in paragraph (b) of this subdivision, it 4 shall be unlawful for a rental company to rent, lease or sell a covered 5 vehicle on or after the earlier of the date of receipt by the rental 6 company of a notification ordered by the Secretary of Transportation 7 under subsection (b)(2)(A) of section 30118 of title 49, United States 8 Code, or the date on which a manufacturer gives notice to owners, 9 purchasers, and dealers that the covered vehicle contains a defect 10 related to motor vehicle safety or does not comply with an applicable 11 motor vehicle safety standard, unless the defect or noncompliance has 12 been remedied prior to rental, lease or sale. 13 (b) For purposes of paragraph (a) of this subdivision, a rental compa- 14 ny shall be considered to have received notification five business days 15 following the date on which such notification was mailed. 16 (c) If, during a rental or lease period of a covered vehicle, a rental 17 company receives notification pursuant to paragraph (a) of this subdivi- 18 sion that the covered vehicle contains a defect related to motor vehicle 19 safety or does not comply with an applicable motor vehicle safety stand- 20 ard, the rental company shall immediately: (i) contact the renter or 21 lessee and any authorized driver from whom the rental company has imme- 22 diate contact information to inform such renter or lessee and authorized 23 driver of the defect or noncompliance; and (ii) offer to provide such 24 renter, lessee, or authorized driver a comparable alternative vehicle, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03815-01-5 
 A. 1292 2 1 at no additional cost to the renter, lessee, or authorized driver, until 2 the defect or noncompliance has been remedied. 3 § 2. Section 396-z of the general business law is amended by adding a 4 new subdivision 9-a to read as follows: 5 9-a. (a) Except as provided in paragraph (b) of this subdivision, it 6 shall be unlawful for a rental company to rent, lease or sell a covered 7 vehicle on or after the earlier of the date of receipt by the rental 8 company of a notification ordered by the Secretary of Transportation 9 under subsection (b)(2)(A) of section 30118 of title 49, United States 10 Code, or the date on which a manufacturer gives notice to owners, 11 purchasers, and dealers that the covered vehicle contains a defect 12 related to motor vehicle safety or does not comply with an applicable 13 motor vehicle safety standard, unless the defect or noncompliance has 14 been remedied prior to rental, lease or sale. 15 (b) For purposes of paragraph (a) of this subdivision, a rental compa- 16 ny shall be considered to have received notification five business days 17 following the date on which such notification was mailed. 18 (c) If, during a rental or lease period of a covered vehicle, a rental 19 company receives notification pursuant to paragraph (a) of this subdivi- 20 sion that the covered vehicle contains a defect related to motor vehicle 21 safety or does not comply with an applicable motor vehicle safety stand- 22 ard, the rental company shall immediately: (i) contact the renter or 23 lessee and any authorized driver for whom the rental company has immedi- 24 ate contact information to inform such renter or lessee and authorized 25 driver of the defect or noncompliance; and (ii) offer to provide such 26 renter, lessee, or authorized driver a comparable alternative vehicle, 27 at no additional cost to the renter, lessee, or authorized driver, until 28 the defect or noncompliance has been remedied. 29 § 3. Section 198-b of the general business law is amended by adding a 30 new subdivision h to read as follows: 31 h. Prohibitions on certain sales or leases. No dealer shall sell or 32 lease a used motor vehicle that has been recalled due to safety risks. 33 § 4. This act shall take effect immediately; provided that the amend- 34 ments to section 396-z of the general business law made by section one 35 of this act shall be subject to the expiration and reversion of such 36 section pursuant to subdivision (a) of section 4 of chapter 109 of the 37 laws of 2018, as amended, when upon such date the provisions of section 38 two of this act shall take effect.