NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6041
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.
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:
2020: A.5194 (DenDekker)- Passed the Assembly
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the state.
This act shall take effect immediately.
STATE OF NEW YORK
2021-2022 Regular Sessions
March 4, 2021
Introduced by M. of A. RAJKUMAR -- read once and referred to the Commit-
tee 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-
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.
A. 6041 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.