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A06041 Summary:

BILL NOA06041
 
SAME ASSAME AS S00148
 
SPONSORRajkumar
 
COSPNSRWeprin
 
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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A06041 Actions:

BILL NOA06041
 
03/04/2021referred to consumer affairs and protection
03/09/2021reported referred to codes
04/19/2021reported
04/22/2021advanced to third reading cal.228
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A06041 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6041
 
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.   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: 2020: A.5194 (DenDekker)- Passed the Assembly   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None to the state.   EFFECTIVE DATE: This act shall take effect immediately.
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A06041 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6041
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                      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-
     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.
                                                                   LBD02351-01-1

        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.
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