Section 396-Z - [Effective 6/30/2028] Rental vehicle protections1. For the purposes of this section: (a) "Authorized driver" shall mean: (i) the person to whom the vehicle is rented if a licensed driver; (ii) such person's spouse if licensed and at least eighteen years of age; (iii) any person who operates the vehicle during an emergency situation to a medical facility; or (iv) any licensed driver expressly listed on the rental agreement as an authorized driver. (b) "Rental agreement" means any written agreement setting forth terms and conditions governing the authorized driver's use of a rental vehicle, as defined in section one hundred thirty-seven-a of the vehicle and traffic law, for a period not to exceed thirty continuous days.(c) "Rental vehicle company" means any person or organization, or any subsidiary or affiliate, including a franchisee, in the business of providing rental vehicles to the public from locations in this state.2. No rental vehicle company renting private passenger motor vehicles shall, in rental agreements of not exceeding thirty continuous days, hold an authorized driver liable for actual damage to, or loss of, such rental vehicle (including loss of use), except where: (a) the damage or loss is caused intentionally by an authorized driver or is caused by such authorized driver's willful and wanton misconduct; (b) the damage or loss arises out of an authorized driver's operation of the motor vehicle while intoxicated by alcohol or impaired by the use of drugs within the meaning of section eleven hundred ninety-two of the vehicle and traffic law;(c) the damage or loss arises out of an authorized driver's participation in any organized speed racing competition; (d) the damage or loss arises out of the use of the vehicle when carrying persons or property for hire; (e) the damage or loss arises out of the use of the vehicle while an authorized driver is committing a felony or otherwise engaged in a criminal act in which the damage or loss of such vehicle is caused by such criminal activity; or(f) the authorized driver fails to furnish the rental vehicle company a report of an accident and the rental vehicle company complies with the following procedure: (i) At return of the vehicle, at the termination of the rental contract or within ten days if returned by automation or after-hours, the rental vehicle company shall furnish an accident report and a notice, pursuant to this paragraph, of the authorized driver's obligation to complete the accident report. (ii) If the authorized driver declines or fails to complete the accident report, the rental vehicle company shall mail within ten days a notice, by certified mail, return receipt requested and by regular mail, with proof of mailing by production of a certificate of mailing from the post office, along with another accident report, together with a letter stating that the authorized driver declined or otherwise failed to complete the accident report and will be held liable for damages to the rental vehicle for failing to complete the accident report. (iii) All notices shall be mailed to the authorized driver's address as stated on his license, or other address as designated by him. (iv) The authorized driver shall complete the accident report within fifteen days of receipt of the notice. (v) The notice as required by this paragraph shall be in at least twelve point bold face type and shall contain the statement "Failure to fill out an accident report within fifteen days will make the authorized driver liable for damages sustained to the rental vehicle". (vi) For purposes of this paragraph, an accident report shall be defined as a motor vehicle accident report pursuant to section six hundred five of the vehicle and traffic law or any similar appropriate form furnished by the rental vehicle company. (vii) Provided, however, if the authorized driver is physically incapable of completing the report, the penalties hereunder shall lapse until after he is able to complete the report and is notified that he must complete the report as set forth in subparagraph (ii) of this paragraph, and fails to do so. (viii) Provided, further, thirty days prior to commencing an action against the authorized driver, the rental vehicle company must provide the authorized driver an additional opportunity to provide the accident report by providing a further notice along with another accident report, by certified mail, return receipt requested and by regular mail, with proof of mailing by production of a certificate of mailing; and the rental vehicle company cannot hold an authorized driver liable under this paragraph, if the authorized driver provides the rental vehicle company with a completed accident report within fifteen days of the receipt of the notice.3. Notwithstanding subdivision three and subject to subdivision six of this section, a rental vehicle company may hold an authorized driver liable for actual damage to, or loss of, a rental vehicle caused by such authorized driver, up to a maximum of one hundred dollars, provided that: (a) any claim for such damage shall be based on a physical survey and shall be made upon the return of the rental vehicle, unless returned by automation or after-hours which precludes such survey in which event any claim must be made within ten days after return; and (b) any charge for repair of such damage shall be limited to actual costs and shall be assessed and billed separately and apart from the rental agreement. For purposes of this subdivision, "returned by automation" means a return acknowledged by machine receipt and where there is no interaction with rental vehicle company personnel and "after-hours" return means a return after normal business hours and in which the keys and rental agreement are deposited in the rental vehicle company office. 4. No rental vehicle company shall directly or indirectly agree, for a charge, to waive any claims against an authorized driver for any damage to, or loss of, the rental vehicle (including loss of use) during the term of a rental agreement not exceeding thirty continuous days. 5.(a) In the event of damage to a rental vehicle for which an authorized driver is responsible under subdivision three of this section and is not covered by an automobile insurance policy, the rental vehicle company shall charge no more than the actual cost paid by the rental vehicle company in repairing such vehicle; provided, however, if such damaged vehicle cannot be repaired because parts necessary to effect the repair are not available within a reasonable period of time, the rental vehicle company may charge no more than the amount in the standard motor crash guide, or similar insurance industry crash guides. (b) For purposes of this section, "actual cost": (i) shall mean the repair price, reduced by all discounts, paid by the rental vehicle company to the repairer of the vehicle; and (ii) may include a reasonable factor for loss of use, based upon rates applicable to the vehicle in effect at the time the rental agreement was executed on the basis obtained by the authorized driver, to reflect lost rental revenues, less expenses and depreciation, due to loss of use of the damaged vehicle that is not a total loss, in proportion to utilization rate experience documented by the rental vehicle company for such type of vehicle. (c) Upon written request from the authorized driver or such authorized driver's representative, including an insurer, the rental vehicle company and its representatives shall identify the repairer of, and provide access to, the damaged vehicle, in order to verify the nature and extent of damages, repairs and repair costs, except the right to access provided herein shall expire after ten business days following the authorized driver's receipt of notification from the rental vehicle company. 6. No rental vehicle company may require any security, deposit, or charge for damage in any form, by credit card or otherwise, during the term of the rental agreement or pending resolution of any dispute. 7. No rental vehicle company shall advertise, quote or charge a rental rate that does not include all charges, except taxes and any mileage charge, which an authorized driver must pay to obtain a rental vehicle. 8. No rental vehicle company shall hold any authorized driver liable for any damage to, or loss of, a rental vehicle (including loss of use), as provided by this section, unless the rental vehicle company prominently discloses, on the rental agreement, in at least ten point bold face display, the nature and extent of such liability and such driver's rights and responsibilities under this section. 9.(a) A rental vehicle company shall not charge in addition to the rental rate, taxes and mileage charge, if any, any fee which must be paid as a condition of renting the vehicle, such as, but not limited to, required fuel or airport surcharges, nor any fee for transportation to the location where the rental vehicle will be delivered. (b) In addition to the rental rate, taxes and mileage charge, if any, a rental vehicle company may charge for an item or service provided in connection with a particular rental transaction if the renter could have avoided incurring the charge by not choosing to obtain or utilize the optional item or service, such as, but not limited to, optional accessories or services requested by the renter, service charges incident to the renter's optional return of the vehicle to a location other than the location where the vehicle was rented, and charges for refueling the vehicle with as much fuel as was in the fuel tank at the beginning of the rental.(c) A rental vehicle company shall make available detachable or removable seats which meet the requirements of subdivision one of section twelve hundred twenty-nine-c of the vehicle and traffic law. (d) Fees for additional authorized drivers shall not exceed two dollars and fifty cents per person for the first rental day and one dollar per day thereafter; provided, however, in no event shall the total charge exceed five dollars per additional driver. 10. Any rental agreement or other contract inconsistent with the provisions of this section shall be deemed void as against public policy. 11. Any rental vehicle company found by a court of competent jurisdiction to have violated a provision of this section shall be subject to a penalty of not less than five hundred dollars nor more than one thousand dollars for each violation. 12.(a) Whenever there shall be a violation of this section, an application may be made by the attorney general in the name of the people of the state of New York to a court of competent jurisdiction by a special proceeding for the imposition of a fine or the issuance of an injunction against any violation of this section, upon notice to the rental vehicle company of not less than five days, to enjoin and restrain the continuance of such violations.(b) If the court finds that the defendant has, in fact, violated this section, an injunction may be issued by such court, enjoining and restraining any further violation, without requiring proof that any person has, in fact, been injured or damaged thereby.(c) In any proceeding pursuant to this subdivision, the court may direct restitution and make allowances to the attorney general as provided in section sixty-three of the executive law. (d) In support of any application pursuant to this subdivision, the attorney general is authorized to take proof, determine relevant facts and issue subpoenae in accordance with the civil practice law and rules. 13. An authorized driver shall provide notice to the rental vehicle company or law enforcement agency within forty-eight hours of learning of the theft of the rental vehicle. 13-a. A rental vehicle company shall not use information from any global positioning system technology to determine or impose any costs, fees, charges, or penalties on an authorized driver for such driver's use of a rental vehicle. The use of global positioning technology shall not limit the right of a rental vehicle company to impose costs, fees, charges, or penalties to recover a vehicle that is lost, misplaced, or stolen. The provisions of this subdivision shall not be construed to modify or supersede any other provision of law. 14. An authorized driver shall provide notice to the rental vehicle company or law enforcement agency within twelve hours of learning of the theft of the rental vehicle.15. In accordance with any applicable federal law or rule, every rental vehicle company shall display the following in a conspicuous location, with lettering that is legible and that shall be at least three-quarters of an inch boldface type: NOTICE: New York State Law prohibits the following practices by rental vehicle companies based upon race, color, ethnic origin, religion, disability, sex, marital status, or age: (2) the imposition of any additional charge (except in certain instances where the renter is under the age of 25). In addition, it is unlawful for any rental vehicle company to refuse to rent a vehicle to any person solely on the requirement of ownership of a credit card.N.Y. Gen. Bus. Law § 396-Z
Amended by New York Laws 2023, ch. 163,Sec. 1, eff. 6/30/2023.Amended by New York Laws 2018, ch. 109,Sec. 1, eff. 9/29/2018, exp. 6/30/2028.Amended by New York Laws 2018, ch. 108,Sec. 1, eff. 7/1/2018.This section is set out more than once due to postponed, multiple, or conflicting amendments.