BILL NUMBER: S9737
SPONSOR: KAVANAGH
 
TITLE OF BILL:
An act to amend the general business law, in relation to prohibiting
rental vehicle companies from imposing any fees, charges or penalties,
other than the actual cost of a toll, on an authorized driver for such
driver's use of a rental vehicle
 
PURPOSE OR GENERAL IDEA OF BILL:
To prevent rental vehicle companies from charging any fees, charges, or
penalties, other than the actual cost of a toll for use of a rental
vehicle through a toll collection facility that uses an electronic toll
collection system.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill amends section 396-z of the general business law
by adding a new section 13-b. This new section would prevent rental
vehicle companies from charging any fees, charges or penalties, other
than the actual cost of a toll, on an authorized driver for the driver's
use of a rental vehicle through a toll collection facility that uses an
electronic toll collection system.
Section 2 of the bill is the effective date.
 
JUSTIFICATION:
New York State has begun the transition away from traditional tollbooths
on our roads towards an automatic tolling system. The system uses a
camera to take a picture of the vehicle's license plate, and subsequent-
ly sends the bill to the driver of the vehicle. The new system helps to
ease traffic congestion, helps the environment by reducing emissions
from idling cars in lines, and saves hours of driving time for commu-
ters.
An unintended consequence of this technology is that some rental car
companies treat camera-generated bills as traffic violations, such as
when a driver passes through a red light that is equipped with a camera.
The bill is outsourced to another company that charges the renter of the
car the fee for the toll, and a processing fee on top of the original
toll fee. This practice forces renters to pay more than their fair share
for travel.
As New York abandons traditional toll booths for the electronic system,
the issue of unfairly imposed fees from camera-generated tolls will
affect more New Yorkers who choose to rent a car to travel. By refusing
to allow rental car companies to impose any fees, charges, or penalties
other than the actual cost of a toll, this bill will eliminate the ineq-
uity between drivers using their personal vehicles, and those travelling
in rental vehicles.
 
PRIOR LEGISLATIVE HISTORY:
2026: A4665 (Jackson) - Referred to Consumer Affairs and Protection
2025: S2691(Hoylman-Sigal)- Referred to Consumer Protection
2025: A4665 (Jackson) - Referred to Consumer Affairs and Protection
2024: S1533 (Hoylman-Sigal) - Referred to Consumer Protection
2024: A3796 (Gunther) - Referred to Consumer Affairs and Protection
2023: S1533 (Hoylman-Sigal) - Referred to Consumer Protection
2023: A3796 (Gunther) - Referred to Consumer Affairs and Protection
2022: S0363 (Hoylman-Sigal) - Referred to Consumer Protection
2022: A3485 (Gunther) - Referred to Consumer Affairs and Protection
2021: S0363 (Hoylman-Sigal) - Referred to Consumer Protection
2021: A3485 (Gunther) - Referred to Consumer Affairs and Protection
2020: S1843 (Hoylman-Sigal) - Referred to Consumer Protection
2020: A6233 (Gunther) - Reported to Ways and Means
2019: S1843 (Hoylman-Sigal) - Advanced to Third Reading
2019: A6233 (Gunther) - Referred to Consumer Affairs and Protection
2018: S5910 (Hoylman-Sigal) - Referred to Consumer Protection
2017: 55910 (Hoylman-Sigal) - Referred to Consumer Protection
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become law; provided that the amendments to section 369-z of the general
business law made by section one of this act shall survive the expira-
tion and reversion of such section as provided in section 4 of chapter
656 of the laws of 2002, as amended.

Statutes affected:
S9737: 396-z general business law