New York A 3427: Relates to safety recalls on used motor vehicles

Bill Text

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A03427 Summary:

BILL NOA03427 

&nbsp

SAME ASSAME AS S03777

&nbsp

SPONSORPheffer Amato

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Add §198-d, Gen Bus L

&nbsp

Relates to safety recalls on used motor vehicles; requires dealers to provide notice to purchasers of safety recalls.

Go to top A03427 Actions:

BILL NOA03427 

&nbsp

01/27/2025referred to consumer affairs and protection

01/07/2026referred to consumer affairs and protection

Go to topA03427 Committee&nbspVotes:

Go to topA03427 Floor&nbspVotes:

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

Go to topA03427 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 3427

 2025-2026 Regular Sessions

 IN ASSEMBLY

 January 27, 2025
 ___________

 Introduced by M. of A. PHEFFER AMATO -- read once and referred to the
 Committee on Consumer Affairs and Protection

 AN ACT to amend the general business law, in relation to safety recalls
 on used motor vehicles

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

 1 Section 1. The general business law is amended by adding a new section
 2 198-d to read as follows:
 3 § 198-d. Used motor vehicles; recalls. (a) For the purpose of this
 4 section, the following terms shall have the following meanings:
 5 (1) "dealer" shall have the same meaning as paragraph a of subdivision
 6 one of section four hundred fifteen of the vehicle and traffic law.
 7 (2) "used motor vehicle" shall have the same meaning as paragraph i of
 8 subdivision one of section four hundred fifteen of the vehicle and traf-
 9 fic law.
 10 (3) "stop drive order" shall mean a notification issued under 49 USC
 11 section 30118 which includes precautionary advice to stop driving a
 12 motor vehicle (including the vehicle identification number for such
 13 vehicle).
 14 (b) Where a franchisor or manufacturer, as defined by section four
 15 hundred sixty-two of the vehicle and traffic law, directly or indirectly
 16 subjects any dealer to any financial or other penalties or otherwise
 17 penalizes or prevents a dealer from selling or leasing any used motor
 18 vehicle subject to recall, including where any such restrictions are
 19 imposed by the manufacturer, either through the issuance of a "stop
 20 sell" or any other communication that prevents or penalizes a dealer
 21 from offering a vehicle for sale, or federal, state, or local law or
 22 regulation:
 23 (1) the franchisor or manufacturer shall, where parts or a remedy are
 24 not reasonably available and a policy described in this subdivision is
 25 in effect, following fifteen days notice from a dealer that they are in

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05342-01-5

 A. 3427 2

 1 possession of a vehicle subject to the provisions of this section
 2 provide to said dealer a payment of one and seventy-five hundredths
 3 percent of the value of the used motor vehicle as determined by the
 4 average "trade-in" value for a similar used vehicle as indicated in a
 5 widely disseminated, publicly available, independent used motor vehicle
 6 guide for the year, make, model, and mileage of the used motor vehicle
 7 in the possession of the dealer for every thirty days, or portion of
 8 thirty days, the dealer is unable to sell, offer to sell, or repair such
 9 vehicle due to the inability to satisfy any recall issued for such vehi-
 10 cle or due to a communication described in the opening paragraph of this
 11 subdivision received from the manufacturer regarding the sale of such
 12 vehicle; and
 13 (2) all reimbursement claims made by a dealer pursuant to this subdi-
 14 vision shall be subject to the procedure established under subdivisions
 15 two through seven of section four hundred sixty-five of the vehicle and
 16 traffic law.
 17 (c) The manufacturer or franchisor may not retaliate against a dealer
 18 who has submitted a claim for reimbursement under this section or who
 19 was otherwise compensated for a vehicle subject to a recall. For the
 20 purposes of this subdivision, retaliation shall include, but shall not
 21 be limited to, reducing the amount of compensation otherwise owed to a
 22 dealer, whether through a chargeback, removal from an incentive p