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A06549 Summary:

BILL NOA06549
 
SAME ASSAME AS S00357
 
SPONSORRajkumar
 
COSPNSRWeprin, Sayegh, Santabarbara
 
MLTSPNSR
 
Add §198-d, amd §199, Gen Bus L
 
Requires motor vehicle dealers to search for recalls and make certain repairs prior to selling a used motor vehicle.
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A06549 Actions:

BILL NOA06549
 
04/17/2023referred to consumer affairs and protection
05/16/2023reported referred to codes
05/23/2023reported referred to rules
05/24/2023reported
05/24/2023rules report cal.264
05/24/2023ordered to third reading rules cal.264
06/06/2023passed assembly
06/06/2023delivered to senate
06/06/2023REFERRED TO RULES
01/03/2024DIED IN SENATE
01/03/2024RETURNED TO ASSEMBLY
01/03/2024ordered to third reading cal.189
04/02/2024passed assembly
04/02/2024delivered to senate
04/02/2024REFERRED TO CONSUMER PROTECTION
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A06549 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6549
 
SPONSOR: Rajkumar
  TITLE OF BILL: An act to amend the general business law, in relation to requiring motor vehicle dealers to search for recalls and make certain repairs prior to selling a used motor vehicle   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to require used motor vehicle dealers, prior to offering a contract for the sale of a used motor vehicle at retail, to determine whether there are any manufacturer's recalls on such motor vehicle. If there are any open recalls applicable to the used motor vehicle, then the dealer shall either make the repairs required by the manufacturer's recall, bring the vehicle to an authorized dealer and have the recall satisfied prior to the sale.   SUMMARY OF PROVISIONS: Section 1 adds a new section 198-d to the general business law that requires that a used motor vehicle dealer make a good faith effort to determine if a vehicle has an outstanding national highway safety recall and if the vehicle does, the dealer must make or cause repairs to be made that would satisfy the recall. Section 2 amends section 199 of the general business law raising the existing . penalty for violation of this section from one thousand dollars to five thousand dollars per violation. Section 3 sets the effective date.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): Click here to enter text.   JUSTIFICATION: Currently, when a motor vehicle recall is initiated by a manufacturer, the manufacturer is required to contact the registered owners of those vehicles and notify them that a safety recall is in place. It is also required to notify the owners that it will repair that vehicle at no cost to the vehicle owner. However, many times people sell or trade-in their vehicle to dealers or third parties, and the manufacturer has 'no way of notifying the person or entity that has possession of the vehicle of the safety recall. This new legislation would enhance vehicular safe- ty in New York State by ensuring that used car dealers search for recalls and have them satisfied before selling the vehicle. This legis- lation will protect consumers by ensuring that their used cars are safe prior to purchase.   PRIOR LEGISLATIVE HISTORY: 2013-2014 A6522 Passed Assembly 2015-2016 A4125 advanced to third reading 2017-2018 A2665 referred to consumer affairs and protection 2019-20 A5194 Passed Assembly 2021-22 A6041 Passed Assembly   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None to the state.   EFFECTIVE DATE: This act shall take effect immediately.
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A06549 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6549
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                     April 17, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  RAJKUMAR,  WEPRIN,  SAYEGH  -- read once and
          referred to the Committee on Consumer Affairs and Protection
 
        AN ACT to amend the general business law, in relation to requiring motor
          vehicle dealers to search for recalls and make certain  repairs  prior
          to selling a used motor vehicle

          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. 1.   For the  purpose  of  this
     4  section, the following words shall have the following meanings:
     5    (a)  "Dealer"  shall  have  the  same meaning as in paragraph three of
     6  subdivision a of section one hundred ninety-eight-b of this article.
     7    (b) "Used motor vehicle" shall have the same meaning as  in  paragraph
     8  two of subdivision a of section one hundred ninety-eight-b of this arti-
     9  cle.
    10    2.  Prior  to  offering a contract for sale of a used motor vehicle at
    11  retail, the dealer, or his or her agent, shall make a good faith  effort
    12  to  determine  whether  a  manufacturer  or the national highway traffic
    13  safety administration has issued any  recall  applicable  to  such  used
    14  motor  vehicle.  Upon  determining  that a manufacturer or such adminis-
    15  tration has issued any recall applicable to such used motor  vehicle,  a
    16  dealer,  or  his  or  her  agent,  must make or cause repairs to be made
    17  pursuant to the manufacturer's or such administration's recall such that
    18  the recall is satisfied.
    19    § 2. Section 199 of the general business law, as added by chapter  900
    20  of  the  laws  of  1956  and as renumbered by chapter 582 of the laws of
    21  1970, is amended to read as follows:
    22    § 199. Penalties. Any  person,  firm,  or  corporation  violating  the
    23  provisions  of  section  one hundred [ninety-six] ninety-eight-d of this
    24  article shall be liable in an action brought on behalf of the people  of
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01637-01-3

        A. 6549                             2
 
     1  the state of New York in the sum of [one] five thousand dollars for each
     2  [of] such [violations] violation.
     3    §  3.  This  act shall take effect on the ninetieth day after it shall
     4  have become a law.
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