Amd §399-zzzz, Gen Bus L; amd §§337 & 341, Pers Prop L
 
Requires that a retail lessee shall not be liable for charges for the early termination of a retail lease agreement of a motor vehicle if he or she has deceased before the end of such lease.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2078A
SPONSOR: Gunther
 
TITLE OF BILL: An act to amend the general business law and the
personal property law, in relation to early termination of motor vehicle
lease contracts
 
PURPOSE:
This bill would prohibit companies from charging early termination fees
on motor vehicle lease contracts if a customer has deceased before the
end of such contract
 
SUMMARY OF PROVISIONS:
Section 1 amends subdivision 1 of section 399-zzzz of the general busi-
ness law to prohibit motor vehicle lessors from imposing an early termi-
nation fee if a customer has deceased before the end of such contract.
Section 2 amends subdivision 5 of section 337 of the personal property
law to add a prohibition on early termination fees to all retail lease
agreements of motor vehicles
Section 3 adds a new subdivision 4 to section 341 of the personal prop-
erty law to add a prohibition on early termination fees to the
restrictions on early termination liability
Section 4 is the effective date
 
JUSTIFICATION:
Many companies use early termination fees to ensure a customer continues
use of a service through the contract length. However, there have been
instances where these companies have charged early termination fees to
accounts cancelled prior to the expiration of the contract due to the
customer's death. Chapter 331 of the laws of 2016 prohibited telephone,
cellular telephone, television, internet, energy, and water service
providers from charging early termination fees if the contract was
broken due to the death of the customer. However, motor vehicle leases
were not included. This bill simply expands protections from early
termination fees to motor vehicle leases.
 
LEGISLATIVE HISTORY:
2017-18: A9727 referred to Consumer Affairs
 
FISCAL IMPLICATIONS:
None to state.
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law and shall apply to all leases entered into, renewed, modi-
fied or amended on or after such effective date.
STATE OF NEW YORK
________________________________________________________________________
2078--A
2019-2020 Regular Sessions
IN ASSEMBLY
January 22, 2019
___________
Introduced by M. of A. GUNTHER -- read once and referred to the Commit-
tee on Consumer Affairs and Protection -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the general business law and the personal property law,
in relation to early termination of motor vehicle lease contracts
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 399-zzzz of the general business
2 law, as added by chapter 331 of the laws of 2016, is amended to read as
3 follows:
4 1. Subject to federal law and regulation[,]:
5 a. no provider of telephone, cellular telephone, television, internet,
6 energy, or water services shall impose a fee for termination or early
7 cancellation of a service contract in the event the customer has
8 deceased before the end of such contract; and
9 b. a retail lessee, as defined in section three hundred thirty-one of
10 the personal property law, shall not be liable for charges for the early
11 termination of a retail lease agreement of a motor vehicle if he or she
12 has deceased before the end of such lease.
13 § 2. Paragraphs (i), (j) and (k) of subdivision 5 of section 337 of
14 the personal property law are relettered paragraphs (j), (k) and (l) and
15 a new paragraph (i) is added to read as follows:
16 (i) A statement in at least eight-point bold type stating that the
17 lessee shall not be liable for an early termination fee if he or she has
18 deceased before the end of the lease;
19 § 3. Section 341 of the personal property law is amended by adding a
20 new subdivision 4 to read as follows:
21 4. There shall be no early termination liability to the lessee if he
22 or she has deceased before the end of such lease.
23 § 4. This act shall take effect on the ninetieth day after it shall
24 have become a law and shall apply to all leases entered into, renewed,
25 modified or amended on or after such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01695-02-9