BILL NUMBER: S5596
SPONSOR: MAY
 
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
Section 1 of the bill amends the general business law by adding a new
section 198-d:
Subdivision 1 defines "dealer" and "used motor vehicle."
Subdivision 2 requires that a dealer make a good-faith effort to discov-
er whether there is an auto recall upon a used motor vehicle before
selling it to a consumer. If there is an auto recall, the dealer must
repair the defect themselves or have an authorized dealer repair it
prior to the used motor vehicle's sale.
Section 2 of the bill amends section 199 of the general business law and
provides that any person, firm, or, corporation violating the provisions
of section 198d shall be liable in an action brought on behalf of the
people of the state of New York through a fine not exceeding five thou-
sand dollars per violation.
 
JUSTIFICATION:
Currently, manufacturers are required to contact the registered owner of
a motor vehicle upon which it has initiated a safety recall and notify
the owner that it will repair that vehicle at no cost to the owner.
However, there are occasions when a manufacturer has no way of contact-
ing the person or entity in possession of the recalled vehicle because
they have sold or traded-in that vehicle to a dealer or third party.
This new legislation would enhance vehicular safety in New York State by
ensuring that used car dealers search for recalls and conduct appropri-
ate repairs before selling the vehicle. This legislation will protect
consumers by ensuring that their used cars are safe prior to purchase.
 
PRIOR LEGISLATIVE HISTORY:
2023-24:S.357(Thomas)/ A.6549(Rajkumar)
2021-22:S.148(Thomas)/ A.6041(Rajkumar)
2019-20:S.6059(Thomas)/ A.5194(DenDekker)
2017-18:A.2665(DenDekker)
2015-16:S5209(Lanza)/ A.4125(DenDekker(MS))
2013-14:S5616(Savino)/ A.6522(DenDekker)
 
FISCAL IMPLICATIONS:
None to the State.
 
EFFECTIVE DATE:
This act shall take effect immediately.