Provides that with respect to leases on motor vehicles, no lease shall provide that the lessee would be charged a turn-in fee at the expiration of the term which constitutes solely an additional fee for administrative, handling or clerical charges.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7167
SPONSOR: Solages
 
TITLE OF BILL:
An act to amend the personal property law, in relation to prohibiting
certain provisions in retail lease agreements
 
PURPOSE:
To prevent the imposition of certain fees at the expiration of a term on
a motor vehicle lease which constitutes administrative, clerical or
handling charges.
 
SUMMARY:
Section 1. Amends paragraphs (h) and (i) of subdivision 14 of section
337 of the personal property law, paragraph (h) as added by chapter 1 of
the laws of 1994 and paragraph (i) as amended by chapter 111 of the laws
of 1995, are amended and a new paragraph (j) is added.
Section 2. Sets the effective date.
 
JUSTIFICATION:
The proposed new section prohibits charging a turn-in fee at the expira-
tion of the term of the lease, the basis of which is solely for adminis-
trative, handling or clerical charges.When a lessee turns in an automo-
bile at the end of the lease that has not been damaged nor exceeds the
contractual mileage allowed, there is no basis for charging an addi-
tional amount called a turn-in fee for purely administrative costs for
the dealer to accept the automobile. This is a fee seldom discussed with
the lessee at the time the lease is signed. The lesser often offers to
waive such a fee as an incentive to the customer to do a subsequent
lease. This discourages the consumer from seeking the best rate avail-
able.
 
RACIAL JUSTICE IMPACT:
TBD.
 
GENDER JUSTICE IMPACT:
TBD.
 
PRIOR LEGISLATIVE HISTORY:
1999-00 A.8035 - committed to judiciary
2001-02 A.4159 - referred to judiciary
2003-04 A.1975 - referred to consumer protection
2005-06 A.4642 - ordered to third reading rules cal.203
2007-08 A.1519 - referred to consumer protection
2009-10 A.2904 - referred to consumer protection
2011-12 A.1581 - advanced to third reading cal.386
2013-14 A.466 - advanced to third reading cal.428
2015-16 A.2512 - advanced to third reading cal.578
2017-18 A.2337 - ordered to third reading cal.176
2019-20 A.3345 - ordered to third reading cal.138
2021-22: A5551; passed Assembly.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law and shall apply to leases
executed on or after such date.
STATE OF NEW YORK
________________________________________________________________________
7167
2023-2024 Regular Sessions
IN ASSEMBLY
May 11, 2023
___________
Introduced by M. of A. SOLAGES -- read once and referred to the Commit-
tee on Judiciary
AN ACT to amend the personal property law, in relation to prohibiting
certain provisions in retail lease agreements
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraphs (h) and (i) of subdivision 14 of section 337 of
2 the personal property law, paragraph (h) as added by chapter 1 of the
3 laws of 1994 and paragraph (i) as amended by chapter 111 of the laws of
4 1995, are amended and a new paragraph (j) is added to read as follows:
5 (h) the lessee waives any right to a trial by jury in any action or
6 proceeding arising out of the agreement; [or]
7 (i) a lessee who is not in default of his or her obligations under the
8 agreement would be prohibited from terminating the agreement at any time
9 after the expiration of the first fifty percent of the total number of
10 months of the lease term. The exercise of this right to terminate early
11 voluntarily is contingent upon the lessee discharging fully his or her
12 liability under the early termination provisions of the agreement[.]; or
13 (j) the lessee would be charged a turn-in fee at the expiration of the
14 term which constitutes solely an additional fee for administrative,
15 handling or clerical charges.
16 § 2. This act shall take effect on the first of January next succeed-
17 ing the date on which it shall have become a law and shall apply to
18 leases executed on or after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09516-01-3