New York S 9737: Prohibits rental vehicle companies from imposing any fees, charges or penalties, other than the actual cost of a toll, on an authorized driver for such driver's use of a rental vehicle

Bill Text

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S09737 Summary:

BILL NOS09737A

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SAME ASNo Same As

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SPONSORKAVANAGH

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COSPNSR

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MLTSPNSR

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Add Art 9 Title 11-A, redes §§2985 & 2985-a to be Art 9 Title 11-A, amd §2985, Pub Auth L; amd §396-z, Gen
Bus L

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Prohibits rental vehicle companies from imposing any fees, charges or penalties, other than the actual cost of a toll, on an authorized driver for such driver's use of a rental vehicle.

Go to top S09737 Actions:

BILL NOS09737A

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04/02/2026REFERRED TO CONSUMER PROTECTION

05/20/20261ST REPORT CAL.1299

05/21/20262ND REPORT CAL.

05/26/2026ADVANCED TO THIRD READING 

05/27/2026AMENDED ON THIRD READING (T) 9737A

06/05/2026COMMITTED TO RULES

Go to topS09737 Committee&nbspVotes:

Go to topS09737 Floor&nbspVotes:

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

Go to topS09737 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 9737--A
 Cal. No. 1299

 IN SENATE

 April 2, 2026
 ___________

 Introduced by Sen. KAVANAGH -- read twice and ordered printed, and when
 printed to be committed to the Committee on Consumer Protection --
 reported favorably from said committee, ordered to first and second
 report, ordered to a third reading, amended and ordered reprinted,
 retaining its place in the order of third reading

 AN ACT to amend the public authorities law and the general business law,
 in relation to prohibiting rental vehicle companies from imposing any
 fees, charges or penalties, other than the actual cost of a toll, on
 an authorized driver for such driver's use of a rental vehicle

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Article 9 of the public authorities law is amended by
 2 adding a new title 11-A to read as follows:

 3 TITLE 11-A
 4 TOLL COLLECTION

 5 § 2. Sections 2985 and 2985-a of the public authorities are redesig-
 6 nated to title 11-A of article 9 of the public authorities law, as added
 7 by section one of this act.
 8 § 3. Subdivision 10 of section 2985 of the public authorities law, as
 9 amended by chapter 666 of the laws of 1993, is amended to read as
 10 follows:
 11 10. An owner who is a lessor of a vehicle to which a notice of liabil-
 12 ity was issued pursuant to subdivision seven of this section shall not
 13 be liable for the violation of the toll collection regulation provided
 14 that [he or she] such owner sends to the public authority serving the
 15 notice of liability and to the court or other entity having jurisdiction
 16 a copy of the [rental,] lease or other such contract document covering
 17 such vehicle on the date of the violation, with the name and address of
 18 the lessee clearly legible, within thirty days after receiving the
 19 original notice of liability. Failure to send such information within
 20 such thirty day time period shall render the lessor liable for the
 21 penalty prescribed by this section. Where the lessor complies with the

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD06144-03-6

 S. 9737--A 2

 1 provisions of this subdivision, the lessee of such vehicle on the date
 2 of such violation shall be deemed to be the owner of such vehicle for
 3 purposes of this section and shall be subject to liability for the
 4 violation of toll collection regulations, provided that the public
 5 authority mails a notice of liability to the lessee within ten days
 6 after the court, or other entity having jurisdiction, deems the lessee
 7 to be the owner. For purposes of this subdivision the term "lessor"
 8 shall mean any person, corporation, firm, partnership, agency, associ-
 9 ation or organization engaged in the business of [renting or] leasing
 10 vehicles to any lessee under a [rental agreement,] lease or otherwise
 11 wherein the said lessee has the exclusive use of said vehicle for any
 12 period of time, provided however that "lessor" shall not mean a rental
 13 vehicle company as defined in paragraph (c) of subdivision one of
 14 section three hundred ninety-six-z of the general business law. For
 15 purposes of this subdivision, the term "lessee" shall mean any person,
 16 corporation, firm, partnership, agency, association or organizatio