BILL NUMBER: S5599
SPONSOR: MAY
 
TITLE OF BILL:
An act to amend the general business law, in relation to a cap on the
amount which rental vehicle companies may charge for refueling of a
rental vehicle
 
PURPOSE:
The purpose of this bill is to establish a reasonable cap on the prices
that rental companies are allowed to charge for refueling vehicles once
they have been returned.
 
SUMMARY OF PROVISIONS:
Sections 1 and 2 of the bill would amend subdivisions 9 and 10 of §
396-z of the General Business Law, respectively, to establish a cap on
the amount that vehicle rental companies are able to charge for gasoline
once the vehicle is returned. Rental companies would be able to charge
up to 125% of the regional market value of gasoline as established by
the United States energy and information administration, for refueling
the vehicle upon return to the level it was at when the individual rent-
ing the vehicle took possession of the vehicle. The bill also authorizes
the Attorney General to investigate violations of this law and impose
penalties consistent with price gouging instances where violations are
found.
Section 3 of this bill provides that the effective date shall take
effect immediately, provided that the amendments to subdivision 10 of
section 396-z of the general business law made by section one of this
act shall be subject to the expiration and reversion of such section
pursuant to subdivision (a) of section 4 of chapter 109 of the laws of
2018, as amended, when upon such date the provisions of section two of
this act shall take effect.
 
JUSTIFICATION:
People who rent cars often find themselves in unfamiliar areas with a
limited amount of time to return a rented vehicle, especially if they
are traveling and have to catch a flight or take some other action after
returning the vehicle. When returning a vehicle, the consumer has two
options: 1. Fuel up at a gas station and return it or 2. Return the
vehicle with less fuel and pay the rental company to refuel it. In cases
involving the latter, while companies should reasonably be able to
charge more for gasoline than a gas station would charge to reflect the
time and effort of filling up, there should be a cap in place in order
to prevent companies from charging exorbitant rates, similar to the
protections in place to prevent price gouging.
Currently, a cap does not exist, which leaves consumers at the whim of
rental companies. This bill would set the price cap at 25% above the
regional average market value of gasoline as published by the United
States energy and information administration, which is also the source
that NYSERDA uses on its website to publish the monthly average price of
gasoline.
 
LEGISLATIVE HISTORY:
2023-24: S.4036 (Mannion)
2021-22: S.3985 (Reichlin-Melnick)
2019-20: S.5190 (Funke)
 
FISCAL IMPLICATIONS:
None to state.
 
EFFECTIVE DATE:
Immediately.

Statutes affected:
S5599: 396-z general business law, 396-z(10) general business law