A 3358: Restricts the rental of safety recalled cars until they are repaired in accordance with the recall; requires disclosure of such recall notices to prospective vehicle renters if such recalled cars have not been repaired.

  
  STATE OF NEW YORK ________________________________________________________________________ 3358 2025-2026 Regular Sessions  IN ASSEMBLY January 27, 2025 ___________ Introduced by M. of A. HYNDMAN -- read once and referred to the Commit- tee on Consumer Affairs and Protection AN ACT to amend the general business law, in relation to prohibiting the rental of motor vehicles that are subject to a recall The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 396-z of the general business law, as amended by 2 chapter 109 of the laws of 2018, is amended by adding a new subdivision 3 17 to read as follows: 4 17. Rental vehicle companies shall inspect and, if appropriate, repair 5 any rental vehicle covered under a federal or manufacturer's safety 6 recall within one hundred twenty days after receiving such notice. 7 Following receipt of such notice by a rental vehicle company, such 8 company may rent a vehicle that is subject to a safety recall provided 9 that such company discloses to any prospective renter of vehicles 10 covered under a federal or manufacturer's safety recall that the vehi- 11 cles are subject to safety recall notices and have not been inspected or 12 repaired prior to the signing of the rental agreement. If one hundred 13 twenty days shall lapse following the receipt of notice by a rental 14 vehicle company that a federal or manufacturer's safety recall is in 15 effect on any of the vehicles owned by the rental vehicle company, and 16 such rental vehicle company has failed to inspect or repair such vehi- 17 cles, the rental vehicle company shall have the option, as an alterna- 18 tive to undertaking the inspections or repairs subject to the recall, to 19 disclose to prospective renters of vehicles covered under a federal or 20 manufacturer's safety recall that the vehicles are subject to safety 21 recall notices and have not been inspected or repaired prior to the 22 signing of the agreement. Any disclosures required under this section 23 shall be set forth in a separate document attached to the rental agree- 24 ment and shall state (a) that the specific vehicle is the subject of a 25 safety recall, (b) describe the recall in question, and (c) describe the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05477-01-5 
 A. 3358 2 1 nature of the defect. Such disclosure shall be initialled by the 2 prospective renter prior to the signing of the rental agreement. 3 § 2. Section 396-z of the general business law, as amended by chapter 4 731 of the laws of 2006, is amended by adding a new subdivision 16 to 5 read as follows: 6 16. Rental vehicle companies shall inspect and, if appropriate, repair 7 any rental vehicle covered under a federal or manufacturer's safety 8 recall within one hundred twenty days after receiving such notice. 9 Following receipt of such notice by a rental vehicle company, such 10 company may rent a vehicle that is subject to a safety recall provided 11 that such company discloses to any prospective renter of vehicles 12 covered under a federal or manufacturer's safety recall that the vehi- 13 cles are subject to safety recall notices and have not been inspected or 14 repaired prior to the signing of the rental agreement. If one hundred 15 twenty days shall lapse following the receipt of notice by a rental 16 vehicle company that a federal or manufacturer's safety recall is in 17 effect on any of the vehicles owned by the rental vehicle company, and 18 such rental vehicle company has failed to inspect or repair such vehi- 19 cles, the rental vehicle company shall have the option, as an alterna- 20 tive to undertaking the inspections or repairs subject to the recall, to 21 disclose to prospective renters of vehicles covered under a federal or 22 manufacturer's safety recall that the vehicles are subject to safety 23 recall notices and have not been inspected or repaired prior to the 24 signing of the agreement. Any disclosures required under this section 25 shall be set forth in a separate document attached to the rental agree- 26 ment and shall state (a) that the specific vehicle is the subject of a 27 safety recall, (b) describe the recall in question, and (c) describe the 28 nature of the defect. Such disclosure shall be initialled by the 29 prospective renter prior to the signing of the rental agreement. 30 § 3. This act shall take effect immediately, provided that the amend- 31 ments to section 396-z of the general business law, made by section one 32 of this act, shall be subject to the expiration and reversion of such 33 section pursuant to subdivision (a) of section 4 of chapter 109 of the 34 laws of 2018, as amended, when upon such date section two of this act 35 shall take effect.