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

Bill Text

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A01292 Summary:

BILL NOA01292 

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SAME ASNo Same As

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SPONSORRosenthal

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COSPNSR

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MLTSPNSR

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Amd §§396-z & 198-b, Gen Bus L

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

Go to top A01292 Actions:

BILL NOA01292 

&nbsp

01/09/2025referred to consumer affairs and protection

01/07/2026referred to consumer affairs and protection

Go to topA01292 Committee&nbspVotes:

Go to topA01292 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA01292 Text:

 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 notificat