N.Y. GBS Law § 396-Z — New York Code / Act GBS / Article 26 / Section 396-Z
Rental vehicle protections
Status: in_force

* § 396-z. Rental vehicle protections. 1. For the purposes of this\nsection: (a) "Authorized driver" means: (i) the person to whom the\nvehicle is rented if a licensed driver; (ii) such person's spouse if\nlicensed and at least eighteen years of age; (iii) any person who\noperates the vehicle during an emergency situation to a medical\nfacility; or (iv) any licensed driver expressly listed on the rental\nagreement as an authorized driver.\n  (b) "Rental agreement" means any written agreement setting forth terms\nand conditions governing the renter's or any authorized driver's use of\na rental vehicle for a period not to exceed thirty continuous days.\n  (c) "Rental vehicle company" means any person or organization, or any\nsubsidiary or affiliate, including a franchisee, in the business of\nproviding rental vehicles to the public from locations in this state.\n  (d) "Optional vehicle protection" means a rental vehicle company's\nagreement not to hold an authorized driver liable for all or part of any\ndamage or loss to the rented vehicle, any loss of use of the rented\nvehicle, or any storage, impound, towing or administrative charges for\nwhich an authorized driver may be liable. The term "optional vehicle\nprotection" shall encompass within its meaning other similar terms that\nmay be used by rental vehicle companies, such as but not limited to\n"Collision Damage Waiver", "CDW", "Damage Waiver", "Loss Damage Waiver",\n"LDW", and "Physical Damage Waiver".\n  (e) "Renter" means a person or entity that obtains the use of a rental\nvehicle from a rental vehicle company under terms of a rental agreement.\n  (f) "Consolidated facilities charge" means the allowable recovery by a\nrental vehicle company from its renters of those fees, including any\ntaxes or fees paid on such fees, for the finance, design, construction\nand operation of consolidated airport facilities and or the finance,\ndesign, construction and operation of common use transportation systems\nthat move passengers between airport terminals and consolidated airport\ncar rental facilities. The aggregate amount to be collected shall not\nexceed the reasonable costs, as determined annually by an independent\naudit paid for by the airport operator or its governing entity, to\nfinance, design, construct and operate those facilities and common use\ntransportation systems. The consolidated facilities charge shall apply\nonly to vehicle rentals occurring at vehicle rental locations subject to\nthe imposition of such charge by an airport operator or its governing\nentity. The term "consolidated facilities charge" shall encompass within\nits meaning other similar terms that may be used by airport authorities\nor rental vehicle companies, such as, but not limited to "customer\nfacility charge" and "transportation facility charge".\n  (g) "Concession recovery fee" means the allowable recovery by a rental\nvehicle company from its renters of those fees, including any taxes or\nfees paid on such fees, which an airport operator or its governing\nentity imposes on a rental vehicle company's applicable revenues or\nrental transactions, as defined and stated in a concession agreement\nthat authorizes a rental vehicle company to operate at an airport\nlocated in this state. The concession recovery fee shall apply only to\nvehicle rentals occurring at vehicle rental locations subject to the\nimposition of such fee by an airport operator or its governing entity.\nThe term "concession recovery fee" shall encompass within its meaning\nother similar terms that may be used by airport authorities or rental\nvehicle companies, such as, but not limited to, "concession fee",\n"concession recovery fee surcharge", "privilege fee" and "airport access\nfee".\n  (h) "Airport fees" means consolidated facilities charges and/or\nconcession recovery fees.\n  (i) "Concession agreement" means an agreement, permit or license\nentered into between an airport operator or its governing entity and\nrental vehicle company setting forth the terms and conditions under\nwhich the rental vehicle company may transact its rental business at\nsuch airport.\n  (j) "Consolidated airport facilities" means those buildings or\nphysical structures, including, but not limited to, parking garages,\nparking areas and fueling systems, constructed by or on behalf of the\nairport operator or its governing entity to be jointly used by all\nrental vehicle companies operating at such airport pursuant to a\nconcession agreement.\n  (k) "Rental vehicle" means a rental vehicle as defined in section one\nhundred thirty-seven-a of the vehicle and traffic law, but excluding\nmotor vehicles designed primarily for the transportation of property.\n  (l) "Manufacturer's suggested retail price" means the retail price of\nthe motor vehicle suggested by the manufacturer in accordance with the\nrequirements of federal law.\n  2. (a) A rental vehicle company shall not charge more than the\nfollowing amounts per full or partial twenty-four hour rental day for\noptional vehicle protection:\n  (i) nine dollars if the manufacturer's suggested retail price of the\nrental vehicle is not greater than twenty thousand dollars;\n  (ii) twelve dollars if the manufacturer's suggested retail price of\nthe rental vehicle is greater than twenty thousand dollars but not\ngreater than thirty-five thousand dollars;\n  (iii) fifteen dollars if the manufacturer's suggested retail price of\nthe rental vehicle is greater than thirty-five thousand dollars but not\ngreater than fifty thousand dollars; and\n  (iv) the amount that may be charged for a vehicle with a\nmanufacturer's suggested value of greater than fifty thousand dollars\nshall not be subject to a maximum dollar amount but shall be subject to\nthe fair market value as determined by the rental vehicle company.\n  (b) A rental vehicle company shall not sell optional vehicle\nprotection unless the renter agrees to the purchase of such protection\nin writing at or prior to the time the rental agreement is executed.\n  (c) A rental vehicle company shall not void optional vehicle\nprotection except for one or more of the following reasons:\n  (i) The damage or loss is caused intentionally or as a result of\nwillful, wanton, or reckless conduct of the driver;\n  (ii) The damage or loss arises out of the driver's operation of the\nvehicle while intoxicated or unlawfully impaired by the use of alcohol\nor drugs;\n  (iii) The rental vehicle company entered into the rental transaction\nbased on fraudulent or materially false information supplied by the\nrenter or authorized driver;\n  (iv) The damage or loss arises out of the use of the vehicle while\nengaged in the commission of a crime other than a traffic infraction;\n  (v) The damage or loss arises out of the use of the vehicle to carry\npersons or property for hire, to push or tow anything, while engaged in\na speed contest, operating off road, or for driver's training;\n  (vi) The damage or loss arises out of the use of the vehicle by a\nperson other than: (1) an authorized driver; (2) the renter's child over\nthe age of eighteen or a parent or parent-in-law of the renter, provided\nsuch child, parent or parent-in-law is properly licensed to operate a\nmotor vehicle and resides in the same household as the renter; or (3) a\nparking valet or parking garage attendant for compensation and in the\nnormal course of employment;\n  (vii) The damage or loss arises out of the use of the vehicle outside\nof the continental United States when that use is not specifically\nauthorized by the rental agreement; or\n  (viii) The renter, or authorized driver, if different, or the renter's\nchild over the age of eighteen or a parent or parent-in-law of the\nrenter, if applicable, have failed to comply with the requirements for\nreporting damage or loss as set forth in subdivision five of this\nsection.\n  (d) A customer may void optional vehicle protection at no charge\nwithin twenty-four hours of purchase provided that the customer: (i) has\nentered into a rental agreement with a term of two or more days, (ii)\nappears in person at any branch of the vehicle rental company together\nwith the vehicle that shall be subject to inspection, and (iii) signs a\ncancellation form provided by the rental vehicle company. After\ntwenty-four hours of purchase, a customer may prospectively terminate\noptional vehicle protection at any time, provided the customer: (i)\nappears in person at any branch of the vehicle rental company together\nwith the vehicle that shall be subject to inspection; (ii) voids the\noptional vehicle protection in writing; and (iii) pays the optional\nvehicle protection charge for any full or partial rental day or portion\nof a day during which the optional vehicle protection was in effect.\n  3. Subject to the provisions of subdivisions six, seven, and nine of\nthis section, a rental vehicle company may hold an authorized driver\nliable for actual damage to, or loss of, a rental vehicle, provided\nthat: (a) any claim for such damage shall be based on a physical survey\nand shall be made upon the return of the rental vehicle, unless such\nsurvey is precluded because the vehicle is returned by automation,\nreturned after-hours, or recovered by the rental company, in which\nevent, any claim must be made within ten days after return or recovery;\nand (b) any charge for repair of such damage shall be limited to actual\nand reasonable costs and shall be assessed and billed separately and\napart from the rental agreement. For purposes of this subdivision,\n"returned by automation" means a return where there is no interaction\nwith rental vehicle company personnel; and "after-hours" return means a\nreturn after normal business hours and in which the keys are returned to\nthe rental vehicle company via a drop box or other process offered by\nthe rental vehicle company.\n  4. (a) Any rental vehicle company which states or permits to be stated\nthe rental costs of a rental vehicle in any advertisement shall state\nconspicuously, in plain language and in conjunction with the advertised\nrental cost of the vehicle, the daily rate of the applicable optional\nvehicle protection, that the rate constitutes an additional daily charge\nto the renter, that the purchase of such protection is optional, and\nthat prospective renters should examine their credit card protections\nand automobile insurance policies for rental vehicle coverage.\n  (b) Where a written advertisement, including all print media, contains\nthe statement of the rental cost of the vehicle, the disclosure required\nby this section shall be printed in type no less than ten point type.\n  (c) When the website of a rental vehicle company or the video\npresentation of a television or internet advertisement by the rental\nvehicle company contains the written statement of the rental cost of a\nvehicle, the depiction of the cost of the optional vehicle protection\nshall be clear and conspicuous.\n  (d) When a radio advertisement or the audio presentation of a\ntelevision advertisement contains the statement of the rental cost of\nthe motor vehicle, the oral statement of the rental cost shall\nimmediately be accompanied by an oral statement of the cost of the\noptional vehicle protection.\n  (e) When a telephone, internet or other inquiry for the rental cost of\na vehicle is made to a rental vehicle company which involves an\ninteraction with a representative of a rental vehicle company, the\nrepresentative of the rental vehicle company shall, in response to the\ninquiry, advise that additional optional products that may be offered by\nthe rental vehicle company are not included in the daily rental rate.\nIf an inquiry is made regarding optional vehicle protection, the\nrepresentative shall provide the cost of the optional vehicle protection\nand state that the purchase of such protection is optional and that the\nrenter's personal automobile insurance or credit card may provide\ncoverage.\n  (f) Any rental vehicle company that offers optional vehicle protection\nto a renter shall disclose to the renter the following information on\nposted signs or pamphlets prominently and conspicuously displayed where\nthey may be easily seen or reached by customers:\n                                "NOTICES\n  THE FOLLOWING IS A GENERAL SUMMARY OF RENTER'S RIGHTS AND OBLIGATIONS.\nFOR COMPLETE DETAILS, REFER TO THE RENTAL AGREEMENT.\n  OPTIONAL VEHICLE PROTECTION (OVP): This contract offers, for an\nadditional charge, OVP to cover your financial responsibility for damage\nor loss to the rental vehicle. OVP is also commonly referred to as a\n"collision damage waiver". The purchase of OVP is optional and may be\ndeclined. Before deciding whether to purchase OVP, you may wish to\ndetermine whether your credit card, or the vehicle insurance maintained\nby yourself or someone in your household, affords you any coverage for\ndamage to the rental vehicle, and the amount of deductible under any\nsuch coverage.\n  OVP - WHEN VOID: OVP is void and shall not apply to the following\nsituations:\n  1. If the damage or loss is caused as a result of the driver's\nintentional acts; willful, wanton, or reckless conduct of the driver; or\noperation of the vehicle while intoxicated or unlawfully impaired by the\nuse of alcohol or drugs;\n  2. The rental vehicle company entered into the rental transaction\nbased on fraudulent or materially false information supplied by the\nrenter or authorized driver;\n  3. The damage or loss arises out of the use of the rental vehicle:\n  (a) while engaged in the commission of a crime, other than a traffic\ninfraction;\n  (b) to carry persons or property for hire, to push or tow anything,\nwhile engaged in a speed contest, operating off road, or for driver's\ntraining;\n  (c) by a person other than: (1) an authorized driver; (2) the renter's\nchild over the age of eighteen or a parent or parent-in-law of the\nrenter, provided such child, parent or parent-in-law is properly\nlicensed to operate a motor vehicle and resides in the same household as\nthe renter; or (3) a parking valet or parking garage attendant for\ncompensation and in the normal course of employment;\n  (d) outside of the continental United States when not specifically\nauthorized by the rental agreement;\n  (e) where the renter or authorized driver, if different, or the\nrenter's child over the age of eighteen or a parent or parent-in-law of\nthe renter, if applicable, failed to comply with the requirements for\nreporting damage or loss as set forth in law.\n  OVP - DAMAGE REPORTING REQUIREMENTS: If the rental vehicle sustains\ndamage or loss, the renter and other authorized driver, as applicable,\nare required to complete and return an incident report notice to the\nrental vehicle company. An authorized driver other than the renter is\nonly required to complete and return an incident report notice to the\nrental vehicle company if such authorized driver was operating the\nvehicle when the incident occurred.\n  OVP - RIGHT TO INSPECT VEHICLE DAMAGES: The renter and his/her insurer\nhave the right to request an inspection of the vehicle damages within\nseventy-two hours of the return of the vehicle. Failure of the renter or\nhis/her insurer to request an inspection within seventy-two hours of\nreturn shall be deemed a waiver of such person or entity's right to\ninspect the damaged vehicle.\n  THEFT OF THE RENTAL VEHICLE: If the rental vehicle is stolen during\nthe term of a rental agreement, an authorized driver must report the\ntheft of the rental vehicle to the rental vehicle company and a law\nenforcement agency within twelve hours of learning of such theft."\n  (g) The following disclosure notice shall be made on the face of the\nrental agreement either by stamp, label or as part of the written\ncontract or on any other written document provided to the renter upon\nexecution of such contract, and shall be set apart in boldface type and\nin no smaller print than ten point type until six months after the\neffective date of the chapter of the laws of two thousand eighteen that\namended this section, when upon such date such notice shall be in no\nsmaller print than twelve point type:\n  "NOTICE: This contract offers, for an additional charge, optional\nvehicle protection to cover your financial responsibility for damage or\nloss to the rental vehicle. The purchase of optional vehicle protection\nis optional and may be declined. You are advised to carefully consider\nwhether to purchase this protection if you have rental vehicle collision\ncoverage provided by your credit card or automobile insurance policy.\nBefore deciding whether to purchase optional vehicle protection, you may\nwish to determine whether your credit card or your vehicle insurance\naffords you coverage for damage to the rental vehicle and the amount of\ndeductible under such coverage."\n  (h) The contract shall also include in boldface type and in no smaller\nprint than ten point type until six months after the effective date of\nthe chapter of the laws of two thousand eighteen that amended this\nsection, when upon such date such notice shall be in no smaller print\nthan twelve point type and, in plain language, the conditions and\nexclusions set forth in paragraph (c) of subdivision two of this\nsection. Upon identification by the rental vehicle company of damage to\nthe rental vehicle, such rental vehicle company shall inform the renter\nof his or her right to inspect the vehicle, and the procedures and time\nframes for doing so, pursuant to paragraphs (b) and (c) of subdivision\nfive of this section.\n  5. (a) Upon identification of damage by the rental vehicle company at\nthe return of the vehicle, termination of the rental contract, or within\nten days if a survey for damage is precluded because the vehicle is\nreturned by automation, returned after-hours, or recovered by the rental\nvehicle company, the rental vehicle company shall furnish an incident\nreport form and a notice, pursuant to this paragraph, of the obligation\nof the renter and other authorized driver, if applicable, to execute and\nreturn to the rental vehicle company a complete and accurate incident\nreport describing any physical and/or mechanical damage. An authorized\ndriver other than the renter shall be required to execute and return\nsuch incident report form only if such authorized driver was operating\nthe vehicle when the incident occurred. If the vehicle is returned by\nautomation, returned after-hours, or recovered by the rental vehicle\ncompany, such incident report form and notice shall be mailed by\novernight delivery service or certified mail, return receipt requested,\nand another copy of such notification shall be sent by regular mail. The\nrental vehicle company shall retain for six years a copy of such notice\nand the certified mail return receipt.\n  (b) Within seventy-two hours of receipt of the incident report form\nand notice, either the renter or his or her insurer must notify or send\nnotice to the rental vehicle company that either he, she, or the insurer\nwishes to inspect the damaged vehicle. If the renter or his or her\ninsurer does not notify or send a request for this inspection within the\nseventy-two hour period, he, she, or the insurer will be deemed to have\nwaived this right.\n  (c) If the renter or other authorized driver declines or fails to\ncomplete and return the incident report required pursuant to paragraph\n(a) of this subdivision, the rental vehicle company shall, no sooner\nthan ten days after the mailing of notification pursuant to such\nparagraph (a), mail another copy of the incident report together with a\nletter stating that the renter or other authorized driver has declined\nor otherwise failed to complete and return the incident report. Such\nmailing shall be by overnight delivery service or certified mail, return\nreceipt requested, and another copy of such notification by regular\nmail, with proof of mailing by production of a certificate of mailing\nfrom the post office. When a request to inspect the vehicle has been\ntimely made by the renter or his or her insurer, the inspection must be\ncompleted within seven days of such request. If the rental vehicle\ncompany determines the damaged vehicle to be a total loss and subject to\nsalvage, such seventy-two hour period for notification or waiver of the\nwish to inspect the damaged vehicle shall not apply, and the renter or\nhis or her insurer shall have ten business days from the renter's\nreceipt of notification from the rental vehicle company pursuant to\nparagraph (a) of this subdivision to inspect the damaged vehicle, unless\nthe rental vehicle company agrees to provide access to such damaged\nvehicle beyond the ten business days provided herein. Within the limits\nprovided in this paragraph, the rental vehicle company shall identify\nthe repairer of, and provide access to, the damaged vehicle, in order to\nverify the nature and extent of damages, repairs and repair costs,\nand/or repair estimates.\n  (d) All notices shall be mailed to the address of the renter and other\nauthorized driver, if applicable, as stated on his or her license, or\nother address as designated by him or her on the rental agreement.\n  (e) The renter and other authorized driver, if applicable, shall\ncomplete and return the incident report within ten days of the receipt\nof the notice.\n  (f) The notice required by this subdivision shall be in at least\ntwelve point bold face type and shall contain the statement: "Failure to\ncompletely and accurately fill out and return an incident report within\nten days of receipt of this notice may make the renter or other\nauthorized driver liable for damages sustained to the rental vehicle.\nExcept where the damaged vehicle is determined to be a total loss and\nsubject to salvage, the renter or his or her insurer has seventy-two\nhours from the return or recovery of the vehicle to notify the rental\nvehicle company that he or she wishes to inspect the damaged vehicle.\nThe inspection must be completed within seven business days of the\nrequest to inspect the vehicle. If the rental vehicle company does not\nreceive notification from the renter or his or her insurer requesting\nsuch inspection within the seventy-two hour period, the renter and his\nor her insurer will be deemed to have waived this right. If the rental\nvehicle company determines the damaged vehicle to be a total loss and\nsubject to salvage, such seventy-two hour period for notification or\nwaiver of the wish to inspect the damaged vehicle shall not apply, and\nsuch right to inspect the damaged vehicle shall expire ten business days\nfrom the renter's receipt of this notice from the rental vehicle\ncompany. Upon request of the renter or his or her insurer, we will\nprovide a copy of the professional estimate of the costs of repairing\nthe damaged motor vehicle." Information that is provided in response to\na request by a rental vehicle company, but that is not provided on an\nincident report form, shall satisfy any reporting obligation of a renter\nor authorized driver if such response substantially complies with the\napplicable requirements of this section. If additional information is\nreasonably required by the rental vehicle company in order to adjust any\nclaim of loss, same shall be requested of the renter or authorized\ndriver as soon as reasonably practicable, who shall respond to same as\nsoon as reasonably practicable.\n  (g) (i) For purposes of this subdivision, each of the following shall\nconstitute an "incident report form": (A) a motor vehicle accident\nreport pursuant to section six hundred five of the vehicle and traffic\nlaw; or (B) any similar appropriate form furnished by the rental vehicle\ncompany.\n  (ii) An incident report form described in clause (B) of subparagraph\n(i) of this paragraph:\n  (A) may be sent or given to a renter and/or authorized driver, as\napplicable, with a request that the renter and/or authorized driver\nprovide information pursuant to this section concerning damage to a\nvehicle rented to the renter or operated by an authorized driver, as the\ncase may be; and\n  (B) such a form may also be made available as a fill-in form on the\nrental vehicle company's website, and the renter or authorized driver,\nas the case may be, shall be advised of the availability of such\nweb-based fill-in form when a request for incident information is made\nunder this subdivision.\n  (h) Provided, however, if the renter or other authorized driver is\nphysically incapable of completing the report, the requirements of this\nsubdivision shall lapse until after he or she is able to complete the\nreport and is notified that he or she must complete and return the\nreport as required by paragraph (b) of this subdivision.\n  (i) Provided, further, the rental vehicle company must, at least\ntwenty days prior to commencing an action against the renter or other\nauthorized driver, if applicable, provide the renter or other authorized\ndriver, if applicable, an additional opportunity to complete and submit\nthe incident report by providing a second notice, along with another\nincident report form, by certified mail, return receipt requested, and\nanother copy of such notice and report form by regular mail, with proof\nof mailing by production of a certificate of mailing. If the renter or\nother authorized driver, as applicable, sends the rental vehicle company\na completed incident report within fifteen days of the receipt of the\nnotice, the provisions of this subdivision shall be deemed satisfied.\n  6. (a) A rental vehicle company may hold an authorized driver liable\nto the extent permitted under this chapter for physical or mechanical\ndamage to the rental vehicle that occurs during the time the rental\nvehicle is under the rental agreement; provided, however, that an\nauthorized driver shall not be liable for any normal wear and tear or\nmechanical damage that could reasonably be expected from normal use of\nthe vehicle. For the purposes of this subdivision, the term "normal wear\nand tear" shall mean the deterioration of the condition of the vehicle\nor its component parts due to repetitive use and does not include damage\nthat materially diminishes the value of the vehicle and arises from a\nspecific occurrence or accident during the time the rental vehicle is\nsubject to the rental agreement; and the term "actual and reasonable\ncosts" shall mean the cost to repair the vehicle including all discounts\nand price adjustments available to the rental vehicle company and shall\ninclude costs for towing, storage, and impound fees where applicable.\n  (b) The total liability of an authorized driver under paragraph (a) of\nthis subdivision for damage to a motor vehicle shall not exceed the\nlesser of:\n  (i) the actual and reasonable costs that the rental vehicle company\nincurred to repair the motor vehicle or that the rental vehicle company\nwould have incurred if the motor vehicle had been repaired, which shall\nreflect any discounts, price reductions, or adjustments available to the\nrental vehicle company; or\n  (ii) the fair market value of the motor vehicle immediately before the\ndamage occurred, as determined in the applicable market for the retail\nsale of the motor vehicle, less any net disposal proceeds.\n  (c) The total liability of an authorized driver under paragraph (a) of\nthis subdivision for loss of a motor vehicle shall not exceed reasonable\ncosts incurred by the rental vehicle company for the loss due to theft\nof the rental vehicle up to its fair market value, as determined by the\napplicable market for the retail sale of that vehicle if it is\nestablished that an authorized driver failed to exercise reasonable care\nor that an authorized driver committed, or aided or abetted in the\ncommission of, the theft of the rental motor vehicle.\n  (d) Damages incurred by rental vehicle companies for the loss of use\nof a rental vehicle and related administrative fees shall not be\nrecovered from any authorized driver or his or her insurer.\n  (e) A rental vehicle company shall not hold an authorized driver\nliable for any amounts that the rental vehicle company recovers from any\nother party.\n  (f) A rental vehicle company shall not collect or attempt to collect\nthe amount described in paragraph (b) of this subdivision unless the\nrental vehicle company:\n  (i) obtains an estimate from a repair company or an appraiser in the\nbusiness of providing such appraisals on the cost of repairing the motor\nvehicle;\n  (ii) provides a copy of the estimate and photographic evidence upon\nrequest to the renter or authorized driver, as applicable who may be\nliable under paragraph (a) of this subdivision, and the insurer of such\nrenter or authorized driver, as applicable; and\n  (iii) submits a copy of the estimate with any claim to collect the\namount described in paragraph (b) of this subdivision.\n  (g) A claim against an authorized driver resulting from damage or loss\nto a rental vehicle shall be reasonable and reflect the value of the\nactual loss incurred. A rental vehicle company shall mitigate damages\nwhere possible and shall not assert or collect any claim for physical\ndamage which exceeds the amount authorized under paragraph (b) of this\nsubdivision.\n  (h) If insurance coverage exists under an authorized driver's\napplicable insurance policy, such authorized driver may require that the\nrental vehicle company submit any claims to such authorized driver's\ninsurance carrier. Upon the request of an authorized driver, the rental\nvehicle company shall submit any claims to such authorized driver's\ninsurance carrier and shall not make any written or oral representations\nto the contrary, nor shall it make any written or oral representations\nthat it will not negotiate with such authorized driver's insurance\ncarrier.\n  7. (a) No rental vehicle company shall collect or charge any security,\ndeposit, or payment for damage in any form, by credit card, debit card\nor otherwise, or report the debt to any consumer reporting agency, as\ndefined in subdivision (e) of section three hundred eighty-a of this\nchapter, during the term of the rental agreement, pending resolution of\nany dispute, or prior to obtaining judgment in a court of competent\njurisdiction.\n  (b) No rental vehicle company shall require a deposit or an advance\ncharge against the credit card or debit card of an authorized driver, in\nany form, for damages to a rental vehicle which is in the authorized\ndriver's possession or control.\n  (c) No rental vehicle company shall collect or charge any payment from\nan authorized driver for damage to the rental vehicle upon return or\nrecovery of the vehicle in a damaged condition, until after the cost of\nthe damage to the vehicle and liability therefor is agreed to between\nthe rental vehicle company and an authorized driver or his or her\ninsurer, or is determined pursuant to law or rental agreement provisions\nconsistent with law and the rights and obligations set forth in this\nsection; provided, however, that a rental vehicle company is not\nprecluded from presenting a claim to an authorized driver and his or her\ninsurer pursuant to other provisions of this section.\n  (d) Causes of action concerning the existence of, liability for, and\nextent and cost of damage to the vehicle shall, where appropriate, be\ncommenced by a rental vehicle company in a court of competent\njurisdiction, in accordance with the limitations and jurisdiction of the\nappropriate court act provided the claimant has first mailed a demand\nletter. A demand letter sent by the rental vehicle company pursuant to\nthis paragraph shall contain: (i) the name and post office address of\nthe rental vehicle company, and of its attorney, if any; (ii) the nature\nof the claim; (iii) the time when, the place where and the manner in\nwhich the claim arose, if known, or if not known, the time when and\nplace where the damage was discovered by the rental vehicle company; and\n(iv) the items of damage or injuries claimed to have been sustained,\naccompanied by supporting documentation, such as repair bills, invoices\nand estimates in the possession of or available to the rental vehicle\ncompany. Such demand letter shall be served upon the renter and the\nrenter's insurer in a manner reasonably designed to give actual notice,\nvia regular and certified mail, return receipt requested. Nothing\ncontained herein shall prohibit a rental vehicle company and an\nauthorized driver or his or her insurer from entering into an agreement\nafter a claim of loss to submit the matter to arbitration or mediation.\n  8. No rental vehicle company shall advertise or quote a rental rate\nthat does not include all charges, except taxes or optional items and/or\nservices or any mileage charge, which the renter must pay to obtain a\nrental vehicle. Provided, however, a rental vehicle company shall be\npermitted to separately quote and charge airport fees as defined herein,\nwhich shall be in addition to the rental rate; and provided further that\nadvertised rental rates that include locations at which airport fees\napply shall clearly indicate that additional fees apply.\n  8-a. It shall be unlawful for any rental vehicle company to engage in\nany of the following practices solely on the basis of the geographical\nlocation of the residence of a New York state resident attempting to\nenter into a rental agreement:\n  (a) refusing to rent a vehicle;\n  (b) imposing any additional charge for the rental of a motor vehicle;\nor\n  (c) imposing any additional terms, conditions or privileges upon the\nrental of a vehicle.\n  9. No rental vehicle company shall hold any authorized driver liable\nfor any damage to, or loss of, a rental vehicle, as provided by this\nsection, unless the rental vehicle company prominently discloses, on the\nrental agreement, in at least ten point bold face display, the nature\nand extent of such liability and such driver's rights and\nresponsibilities pursuant to paragraph (c) of subdivision two of this\nsection and paragraph (g) of subdivision four of this section.\n  10. (a) A rental vehicle company shall not charge in addition to the\nrental rate, taxes, and mileage charge, if any, any fee which must be\npaid as a condition of renting the vehicle, such as, but not limited to,\nrequired fuel surcharges, each of which shall be separately stated on\nthe rental agreement. In addition, a rental vehicle company may also\nstate separately and charge, where applicable, airport fees as such term\nis defined herein.\n  (b) In addition to the rental rate, taxes, applicable airport fees,\nand mileage charge, if any, a rental vehicle company may charge for an\nitem or service provided in connection with a particular rental\ntransaction if the renter could have avoided incurring the charge by not\nchoosing to obtain or utilize the optional item or service, such as, but\nnot limited to, optional accessories or services requested by the\nrenter, service charges incident to the renter's optional return of the\nvehicle to a location other than the location where the vehicle was\nrented, and charges for refueling the vehicle with as much fuel as was\nin the fuel tank at the beginning of the rental.\n  (c) A rental vehicle company shall make available detachable or\nremovable seats which meet the requirements of subdivision one of\nsection twelve hundred twenty-nine-c of the vehicle and traffic law.\n  (d) Fees for additional authorized drivers shall not exceed five\ndollars per additional driver per rental day.\n  (e) A rental vehicle company shall furnish with each rental vehicle\npursuant to an agreement either an owner's manual or a diagram which\nshall indicate the location and plain language description of the\nfunctions necessary for the safe and efficient operation of the vehicle\nwhich shall at a minimum include:\n  (i) Headlights;\n  (ii) Brakes and emergency brake;\n  (iii) Turn signal indicators;\n  (iv) Hazard lights;\n  (v) Windshield wipers and washers;\n  (vi) Horn;\n  (vii) Cruise control;\n  (viii) Heat control system including defrost systems;\n  (ix) Car locking systems; and\n  (x) Spare tire and car jack, tire wrench, and jacking locations, if\nand to the extent that such items were either included with the initial\nsale of the vehicle when new, or such items were generally included in\nnew vehicles of such year, make, model and style when initially sold at\nretail. In the event the rental vehicle company elects to include the\nowner's manual pursuant to this section, if the owner's manual is not\nreturned with the vehicle, the renter shall be liable to the rental\nvehicle company for the actual replacement cost of the owner's manual\nplus an administrative fee.\n  11. Any clause or provision of a rental agreement inconsistent with\nthe provisions of this section shall be deemed void as against public\npolicy.\n  12. Any rental vehicle company found by a court of competent\njurisdiction to have violated a provision of this section shall be\nsubject to a penalty of not less than five hundred dollars nor more than\none thousand dollars for each violation.\n  13. (a) Whenever there shall be a violation of this section, an\napplication may be made by the attorney general in the name of the\npeople of the state of New York to a court of competent jurisdiction by\na special proceeding for the imposition of a fine or the issuance of an\ninjunction against any violation of this section, upon notice to the\nrental vehicle company of not less than five days, to enjoin and\nrestrain the continuance of such violations.\n  (b) If the court finds that the defendant has, in fact, violated this\nsection, an injunction may be issued by such court, enjoining and\nrestraining any further violation, without requiring proof that any\nperson has, in fact, been injured or damaged thereby.\n  (c) In any proceeding pursuant to this subdivision, the court may\ndirect restitution and make allowances to the attorney general as\nprovided in section sixty-three of the executive law.\n  (d) In support of any application pursuant to this subdivision, the\nattorney general is authorized to take proof, determine relevant facts\nand issue subpoenae in accordance with the civil practice law and rules.\n  13-a. A rental vehicle company shall not use information from any\nglobal positioning system technology to determine or impose any costs,\nfees, charges, or penalties on an authorized driver for such driver's\nuse of a rental vehicle. The use of global positioning technology shall\nnot limit the right of a rental vehicle company to impose costs, fees,\ncharges, or penalties to recover a vehicle that is lost, misplaced, or\nstolen. The provisions of this subdivision shall not be construed to\nmodify or supersede any other provision of law.\n  14. An authorized driver shall provide notice to the rental vehicle\ncompany and law enforcement agency within twelve hours of learning of\nthe theft of the rental vehicle.\n  15. In accordance with any applicable federal law or rule, every\nrental vehicle company shall display the following in a conspicuous\nlocation, with lettering that is legible and that shall be at least\nthree-quarters of an inch boldface type:\n  "NOTICE: New York State Law prohibits the following practices by\nrental vehicle companies based upon race, color, ethnic origin,\nreligion, disability, sex, marital status, or age: (1) refusal to rent;\n(2) the imposition of any additional charge (except in certain instances\nwhere the renter is under the age of 25). In addition, it is unlawful\nfor any rental vehicle company to refuse to rent a vehicle to any person\nsolely on the requirement of ownership of a credit card."\n  16. (a) Notwithstanding any other provision of this section, any\nnotice or disclosure of general applicability required to be provided,\ndelivered, posted, or otherwise made available by a rental vehicle\ncompany pursuant to this section shall also be deemed timely and\neffectively made where such notice or disclosure is (i) provided or\ndelivered electronically to the renter at or before the time required\nprovided that such renter has given his or her expressed consent to\nreceive such notice or disclosure in such a manner, or (ii) included in\na member or master agreement in effect at the time of rental.\n  (b) For the purposes of this subdivision, "member or master agreement"\nshall mean an agreement between a rental vehicle company and a renter,\nor an agreement between a rental vehicle company and another company,\nwhich by its express terms: (i) permits such renter or specified\nemployees of such other company to bypass a retail service location and\nobtain a product or service directly; (ii) does not require the renter\nto execute a rental agreement at the time of rental; or (iii) does not\nrequire the rental vehicle company to provide the renter with the rental\nterms and conditions at the time of rental due to the prior execution of\nthe agreement. Electronic or written acceptance shall hereby be deemed a\nvalid form of acceptance of any such notice or disclosure, and\nacceptance shall remain effective until such time as acceptance is\naffirmatively withdrawn by the renter. Notices and disclosures made\nelectronically pursuant to this subdivision shall be exempt from any\nplacement or stylistic display requirements, including but not limited\nto location, font size, typeset, or other specifically stated\ndescription; provided such disclosure is made in a clear and conspicuous\nmanner.\n  * NB Effective until June 30, 2028\n  * § 396-z. Rental vehicle protections. 1. For the purposes of this\nsection: (a) "Authorized driver" shall mean: (i) the person to whom the\nvehicle is rented if a licensed driver; (ii) such person's spouse if\nlicensed and at least eighteen years of age; (iii) any person who\noperates the vehicle during an emergency situation to a medical\nfacility; or (iv) any licensed driver expressly listed on the rental\nagreement as an authorized driver.\n  (b) "Rental agreement" means any written agreement setting forth terms\nand conditions governing the authorized driver's use of a rental\nvehicle, as defined in section one hundred thirty-seven-a of the vehicle\nand traffic law, for a period not to exceed thirty continuous days.\n  (c) "Rental vehicle company" means any person or organization, or any\nsubsidiary or affiliate, including a franchisee, in the business of\nproviding rental vehicles to the public from locations in this state.\n  (d) "Optional vehicle protection" means a rental vehicle company's\nagreement not to hold an authorized driver liable for all or part of any\ndamage or loss to the rented vehicle, any loss of use of the rented\nvehicle, or any storage, impound, towing or administrative charges for\nwhich the authorized driver may be liable. The term "optional vehicle\nprotection" shall encompass within its meaning other similar terms that\nmay be used by rental vehicle companies, such as but not limited to\n"Collision Damage Waiver", "CDW", "Damage Waiver", "Loss Damage Waiver",\n"LDW", and "Physical Damage Waiver".\n  (e) "Renter" means a person or entity that obtains the use of a\nprivate passenger vehicle from a rental vehicle company under terms of a\nrental agreement.\n  (f) "Consolidated facilities charge" means the allowable recovery by a\nrental vehicle company from its renters of those fees, including any\ntaxes or fees paid on such fees, for the finance, design, construction\nand operation of consolidated airport facilities and or the finance,\ndesign, construction and operation of common use transportation systems\nthat move passengers between airport terminals and those consolidated\nairport car rental facilities. The aggregate amount to be collected\nshall not exceed the reasonable costs, as determined annually by an\nindependent audit paid for by the airport operator or its governing\nentity, to finance, design, construct and operate those facilities and\ncommon use transportation systems. The consolidated facility charge\nshall apply only to vehicle rentals occurring at vehicle rental\nlocations subject to the imposition of such charge by an airport\noperator or its governing entity.\n  (g) "Concession recovery fee" means the allowable recovery by a rental\nvehicle company from its renters of those fees, including any taxes or\nfees paid on such fees, which an airport operator or its governing\nentity imposes on a rental vehicle company's applicable revenues, as\ndefined and stated in a concession agreement that authorizes a rental\nvehicle company to operate at an airport located in this state. The\nconcession recovery fee shall apply only to vehicle rentals occurring at\nvehicle rental locations subject to the imposition of such fee by an\nairport operator or its governing entity.\n  (h) "Airport fees" means the consolidated facility charge and/or the\nconcession recovery fee as those terms are defined herein.\n  (i) "Concession agreement" means an agreement, permit or license\nentered into between an airport operator or its governing entity and\nrental vehicle company setting forth the terms and conditions under\nwhich the rental vehicle company may transact its rental business at\nsuch airport.\n  (j) "Consolidated airport facilities" means those buildings or\nphysical structures, including, but not limited to, parking garages,\nparking areas and fueling systems, constructed by or on behalf of the\nairport operator or its governing entity to be jointly used by all\nrental vehicle companies operating at such airport pursuant to a\nconcession agreement.\n  2. (a) A rental vehicle company shall not charge more than nine\ndollars per full or partial twenty-four hour rental day for optional\nvehicle protection if the manufacturer's suggested retail price of the\nrental vehicle is not greater than thirty thousand dollars. A rental\nvehicle company shall not charge more than twelve dollars per full or\npartial twenty-four hour rental day for optional vehicle protection if\nthe manufacturer's suggested retail price of the rental vehicle is\ngreater than thirty thousand dollars.\n  (b) A rental vehicle company shall not sell optional vehicle\nprotection unless the authorized driver agrees to the purchase of such\nprotection in writing at or prior to the time the rental agreement is\nexecuted.\n  (c) A rental vehicle company shall not void optional vehicle\nprotection except for one or more of the following reasons:\n  (i) The damage or loss is caused intentionally or as a result of\nwillful, wanton, or reckless conduct of the driver.\n  (ii) The damage or loss arises out of the driver's operation of the\nvehicle while intoxicated or impaired by the use of alcohol or drugs.\n  (iii) The rental vehicle company entered into the rental transaction\nbased on fraudulent or materially false information supplied by the\nrenter or authorized driver.\n  (iv) The damage or loss arises out of the use of the vehicle while\nengaged in the commission of a crime other than a traffic infraction.\n  (v) The damage or loss arises out of the use of the vehicle to carry\npersons or property for hire, to push or tow anything, while engaged in\na speed contest, operating off road, or for driver's training.\n  (vi) The damage or loss arises out of the use of the vehicle by a\nperson other than: an authorized driver; a duly licensed parent or child\nover the age of eighteen thereof who permanently resides in the same\nhousehold; or a parking valet or parking garage attendant for\ncompensation and in the normal course of employment.\n  (vii) The damage or loss arises out of the use of the vehicle outside\nof the continental United States when that use is not specifically\nauthorized by the rental agreement.\n  (viii) The authorized driver has failed to comply with the\nrequirements for reporting damage or loss as set forth in subdivision\nfive of this section.\n  (d) A customer may void optional vehicle protection at no charge\nwithin twenty-four hours of purchase provided that the customer: (i) has\nrented the vehicle for two or more days, (ii) appears in person at any\nbranch of the vehicle rental company together with the vehicle that\nshall be subject to inspection, and (iii) signs a cancellation form\nprovided by the rental vehicle company.\n  3. Subject to the provisions of subdivisions six, seven, and nine of\nthis section, a rental vehicle company may hold an authorized driver\nliable for actual damage to, or loss of, a rental vehicle, provided\nthat: (a) any claim for such damage shall be based on a physical survey\nand shall be made upon the return of the rental vehicle, unless returned\nby automation or after-hours which precludes such survey, in which event\nany claim must be made within ten days after return; and (b) any charge\nfor repair of such damage shall be limited to actual and reasonable\ncosts and shall be assessed and billed separately and apart from the\nrental agreement. For purposes of this subdivision, "returned by\nautomation" means a return acknowledged by machine receipt and where\nthere is no interaction with rental vehicle company personnel and\n"after-hours" return means a return after normal business hours and in\nwhich the keys and rental agreement are deposited in the rental vehicle\ncompany office.\n  4. (a) Any rental vehicle company which states or permits to be stated\nthe rental costs of a rental vehicle in any advertisement shall state\nconspicuously, in plain language and in conjunction with the advertised\nrental cost of the vehicle, the daily rate of the applicable optional\nvehicle protection, that the rate constitutes an additional daily charge\nto the renter, that the purchase of such protection is optional, and\nthat prospective renters should examine their credit card protections\nand automobile insurance policies for rental vehicle coverage.\n  (b) Where a written advertisement, including all print media, contains\nthe statement of the rental cost of the vehicle, the disclosure required\nby this section shall be printed in type no less than ten point type.\n  (c) When the video presentation of a television or internet\nadvertisement by the rental vehicle company contains the written\nstatement of the rental cost of a vehicle, the depiction of the cost of\nthe optional vehicle protection shall be clear and conspicuous.\n  (d) When a radio advertisement or the audio presentation of a\ntelevision advertisement contains the statement of the rental cost of\nthe motor vehicle, the oral statement of the rental cost shall\nimmediately be accompanied by an oral statement of the cost of the\noptional vehicle protection.\n  (e) When a telephone inquiry for the rental cost of a vehicle is made\nto a rental vehicle company, the representative of the rental vehicle\ncompany shall, in response to an inquiry by the caller, provide the cost\nof the optional vehicle protection and state that the purchase of such\nprotection is optional and that the renter's personal automobile\ninsurance or credit card may provide coverage.\n  (f) Any rental vehicle company that offers optional vehicle protection\nto an authorized driver shall inform the authorized driver in posted\nsigns or in pamphlets, written in plain language, of all of the\ninformation required to be disclosed by this section. The requirements\nof this paragraph shall be deemed to be satisfied if the rental vehicle\ncompany places the posted signs or pamphlets prominently and\nconspicuously where they may be easily seen or reached by customers.\n  (g) The following disclosure notice shall be made on the face of the\nrental agreement either by stamp, label or as part of the written\ncontract or on any other written document provided to the authorized\ndriver at the time such driver takes possession of the vehicle, shall be\nset apart in boldface type and in no smaller print than ten point type:\n  NOTICE: This contract offers, for an additional charge, optional\nvehicle protection to cover your financial responsibility for damage or\nloss to the rental vehicle. The purchase of optional vehicle protection\nis optional and may be declined. You are advised to carefully consider\nwhether to purchase this protection if you have rental vehicle collision\ncoverage provided by your credit card or automobile insurance policy.\nBefore deciding whether to purchase optional vehicle protection, you may\nwish to determine whether your credit card or your vehicle insurance\naffords you coverage for damage to the rental vehicle and the amount of\ndeductible under such coverage.\n  (h) The contract shall also include in boldface type and in no smaller\nprint than ten point type, in plain language, any other conditions or\nexclusions applicable to the optional vehicle protection. The rental\nvehicle company shall also inform the authorized driver of his or her\nright to inspect the vehicle pursuant to paragraph (c) of subdivision\nfive of this section.\n  5. (a) Upon return of the vehicle, termination of the rental contract,\nor within ten days if returned by automation or after-hours, the rental\nvehicle company shall furnish an incident report form and a notice,\npursuant to this paragraph, of the authorized driver's obligation to\nexecute and return to the rental vehicle company a complete and accurate\nincident report describing any physical and/or mechanical damage. If the\nvehicle is returned by automation or after-hours, such incident report\nform and notice shall be mailed by overnight delivery service or\ncertified mail, return receipt requested, and another copy of such\nnotification shall be sent by regular mail. The rental vehicle company\nshall retain for six years a copy of such notice and the certified mail\nreturn receipt.\n  (b) Upon return of the vehicle, or within seventy-two hours if the\nreturn is by automation or after-hours, the authorized driver or his or\nher insurer must notify the rental vehicle company that they wish to\ninspect the damaged vehicle. The inspection must be completed within\nseven days of the return date of the vehicle. If the authorized driver\nor his or her insurer does not request this inspection within the\nseventy-two hour period, the authorized driver or his or her insurer\nwill be deemed to have waived this right.\n  (c) If the authorized driver declines or fails to complete and return\nthe incident report required pursuant to paragraph (a) of this\nsubdivision, the rental vehicle company shall, no sooner than twenty\ndays after the mailing of notification pursuant to such paragraph (a),\nmail another copy of the incident report together with a letter stating\nthat the authorized driver has declined or otherwise failed to complete\nand return the incident report. Such mailing shall be by overnight\ndelivery service or certified mail, return receipt requested, and\nanother copy of such notification by regular mail, with proof of mailing\nby production of a certificate of mailing from the post office. Within\nseventy-two hours of return of the vehicle, the authorized driver or his\nor her insurer must notify the rental vehicle company that he or she\nwishes to inspect the damaged vehicle. The inspection must be completed\nwithin seven days of the return date of the vehicle. If the authorized\ndriver or his or her insurer does not request this inspection within the\nseventy-two hour period, the authorized driver or his or her insurer\nwill be deemed to have waived this right. If the rental vehicle company\ndetermines the damaged vehicle to be a total loss and subject to\nsalvage, such seventy-two hour period for notification or waiver of the\nwish to inspect the damaged vehicle shall not apply, and the authorized\ndriver or his or her insurer shall have ten business days from the\nauthorized driver's receipt of notification from the rental vehicle\ncompany pursuant to paragraph (a) of this subdivision to inspect the\ndamaged vehicle, unless the rental vehicle company agrees to provide\naccess to such damaged vehicle beyond the ten business days provided\nherein. Within the limits provided in this paragraph, the rental vehicle\ncompany shall identify the repairer of, and provide access to, the\ndamaged vehicle, in order to verify the nature and extent of damages,\nrepairs and repair costs, and/or repair estimates.\n  (d) All notices shall be mailed to the authorized driver's address as\nstated on his or her license, or other address as designated by him or\nher.\n  (e) The authorized driver shall complete and return the incident\nreport within ten days of the receipt of the notice.\n  (f) The notice required by this subdivision shall be in at least\ntwelve point bold face type and shall contain the statement: "Failure to\ncompletely and accurately fill out and return an incident report within\nten days of receipt of this notice may make the authorized driver liable\nfor damages sustained to the rental vehicle. Except where the damaged\nvehicle is determined to be a total loss and subject to salvage, the\nauthorized driver or his or her insurer has seventy-two hours from the\nreturn of the vehicle to notify the rental vehicle company that he or\nshe wishes to inspect the damaged vehicle. The inspection must be\ncompleted within seven business days of the return date of the vehicle.\nIf the authorized driver or his or her insurer does not request this\ninspection within the seventy-two hour period, the authorized driver or\nhis or her insurer will be deemed to have waived this right. If the\nrental vehicle company determines the damaged vehicle to be a total loss\nand subject to salvage, such seventy-two hour period for notification or\nwaiver of the wish to inspect the damaged vehicle shall not apply, and\nsuch right to inspect the damaged vehicle shall expire ten business days\nfrom the authorized driver's receipt of this notice from the rental\nvehicle company at the return of the vehicle or receipt of the first\nmailing of this notice in the event of return of the vehicle by\nautomation or after hours. Upon request of the authorized driver or his\nor her insurer, we will provide a copy of our estimate of the costs of\nrepairing the damaged motor vehicle."\n  (g) For purposes of this subdivision, an "incident report" shall be\ndefined as a motor vehicle accident report pursuant to section six\nhundred five of the vehicle and traffic law or any similar appropriate\nform furnished by the rental vehicle company.\n  (h) Provided, however, if the authorized driver is physically\nincapable of completing the report, the requirements of this subdivision\nshall lapse until after he or she is able to complete the report and is\nnotified that he or she must complete and return the report as required\nby paragraph (b) of this subdivision.\n  (i) Provided, further, twenty days prior to commencing an action\nagainst the authorized driver, the rental vehicle company must prove the\nauthorized driver had an additional opportunity to provide the incident\nreport by providing a second notice along with another incident report\nby certified mail, return receipt requested, and another copy of such\nnotice and report by regular mail, with proof of mailing by production\nof a certificate of mailing; and if the authorized driver provides the\nrental vehicle company with a completed incident report within fifteen\ndays of the receipt of the notice, the provisions of this subdivision\nshall be deemed satisfied.\n  6. (a) A rental vehicle company may hold an authorized driver liable\nto the extent permitted under this chapter for physical or mechanical\ndamage to the rental vehicle that occurs during the time the rental\nvehicle is under the rental agreement; provided, however, that a renter\nshall not be liable for mechanical damage unrelated to an accident, nor\nfor any normal wear and tear or other mechanical damage that could\nreasonably be expected from normal use of the vehicle, except in\ninstances where abuse or neglect by the driver is shown. For the\npurposes of this subdivision, "actual and reasonable costs" shall mean\nthe repair price reduced by all discounts paid by the rental vehicle\ncompany to the repairer of the vehicle, including costs for towing,\nstorage, and impound fees.\n  (b) The total liability of an authorized driver under paragraph (a) of\nthis subdivision for damage to a motor vehicle shall not exceed the\nlesser of:\n  (i) the actual and reasonable costs that the rental vehicle company\nincurred to repair the motor vehicle or that the rental vehicle company\nwould have incurred if the motor vehicle had been repaired, which shall\nreflect any discounts, price reductions, or adjustments available to the\nrental vehicle company; or\n  (ii) the fair market value of the motor vehicle immediately before the\ndamage occurred, as determined in the applicable market for the retail\nsale of the motor vehicle, less any net disposal proceeds.\n  (c) The total liability of an authorized driver under paragraph (a) of\nthis subdivision for loss of a motor vehicle shall not exceed reasonable\ncosts incurred by the rental vehicle company for the loss due to theft\nof the rental vehicle up to its fair market value, as determined by the\napplicable market for the retail sale of that vehicle if it is\nestablished that an authorized driver failed to exercise reasonable care\nor that an authorized driver committed, or aided or abetted in the\ncommission of, the theft of the rental motor vehicle.\n  (d) Damages incurred by rental vehicle companies for the loss of use\nof a rental vehicle and related administrative fees shall not be\nrecovered from authorized drivers.\n  (e) A rental vehicle company shall not hold an authorized driver\nliable for any amounts that the rental vehicle company recovers from any\nother party.\n  (f) A rental vehicle company shall not collect or attempt to collect\nthe amount described in paragraph (b) of this subdivision unless the\nrental vehicle company:\n  (i) obtains an estimate from a repair company or an appraiser in the\nbusiness of providing such appraisals on the cost of repairing the motor\nvehicle;\n  (ii) provides a copy of the estimate and photographic evidence upon\nrequest to the authorized driver who may be liable under paragraph (a)\nof this subdivision, or the insurer of the authorized driver; and\n  (iii) submits a copy of the estimate with any claim to collect the\namount described in paragraph (b) of this subdivision.\n  (g) A claim against an authorized driver resulting from damage or loss\nto a rental vehicle shall be reasonable and rationally related to the\nactual loss incurred. A rental vehicle company shall mitigate damages\nwhere possible and shall not assert or collect any claim for physical\ndamage which exceeds the amount authorized under paragraph (b) of this\nsubdivision.\n  (h) If insurance coverage exists under the authorized driver's\napplicable insurance policy, the authorized driver may require that the\nrental vehicle company submit any claims to the authorized driver's\ninsurance carrier. Upon the request of an authorized driver, the rental\nvehicle company shall submit any claims to the authorized driver's\ninsurance carrier and shall not make any written or oral representations\nto the contrary, nor shall it make any written or oral representations\nthat it will not negotiate with the authorized driver's insurance\ncarrier.\n  7. (a) No rental vehicle company shall require any security, deposit,\nor charge for damage in any form, by credit card or otherwise, during\nthe term of the rental agreement or pending resolution of any dispute.\n  (b) No rental vehicle company shall require a deposit or an advance\ncharge against the credit card of an authorized driver, in any form, for\ndamages to a rental vehicle which is in the authorized driver's\npossession or control.\n  (c) No rental vehicle company shall require any payment to the rental\nvehicle company, upon the authorized driver's return of the vehicle in a\ndamaged condition, until after the cost of the damage to the vehicle and\nliability therefor is agreed to between the rental vehicle company and\nthe authorized driver or is determined pursuant to law; provided,\nhowever, that a rental vehicle company is not precluded from presenting\na claim to the authorized driver pursuant to other provisions of this\nsection.\n  (d) Causes of action concerning the existence of, liability for, and\nextent and cost of damage to the vehicle shall, where appropriate, be\ncommenced by a rental vehicle company in a commercial claims part in\naccordance with the limitations and jurisdiction of the appropriate\ncourt act.\n  8. No rental vehicle company shall advertise or quote a rental rate\nthat does not include all charges, except taxes or optional items and/or\nservices or any mileage charge, which an authorized driver must pay to\nobtain a rental vehicle. Provided, however, a rental vehicle company\nshall be permitted to separately quote and charge airport fees as\ndefined herein, which shall be in addition to the rental rate; and\nprovided further that advertised rental rates that include locations at\nwhich airport fees apply shall clearly indicate that additional fees\napply.\n  9. No rental vehicle company shall hold any authorized driver liable\nfor any damage to, or loss of, a rental vehicle, as provided by this\nsection, unless the rental vehicle company prominently discloses, on the\nrental agreement, in at least ten point bold face display, the nature\nand extent of such liability and such driver's rights and\nresponsibilities under this section.\n  10. (a) A rental vehicle company shall not charge in addition to the\nrental rate, taxes, and mileage charge, if any, any fee which must be\npaid as a condition of renting the vehicle, such as, but not limited to,\nrequired fuel surcharges, each of which shall be separately stated on\nthe rental agreement. In addition, a rental vehicle company may also\nstate separately and charge, where applicable, airport fees as such term\nis defined herein.\n  (b) In addition to the rental rate, taxes, applicable airport fees,\nand mileage charge, if any, a rental vehicle company may charge for an\nitem or service provided in connection with a particular rental\ntransaction if the renter could have avoided incurring the charge by not\nchoosing to obtain or utilize the optional item or service, such as, but\nnot limited to, optional accessories or services requested by the\nrenter, service charges incident to the renter's optional return of the\nvehicle to a location other than the location where the vehicle was\nrented, and charges for refueling the vehicle with as much fuel as was\nin the fuel tank at the beginning of the rental.\n  (c) A rental vehicle company shall make available detachable or\nremovable seats which meet the requirements of subdivision one of\nsection twelve hundred twenty-nine-c of the vehicle and traffic law.\n  (d) Fees for additional authorized drivers shall not exceed three\ndollars per additional driver per rental day.\n  (e) A rental vehicle company shall furnish with each rental vehicle\npursuant to an agreement either an owner's manual or a diagram which\nshall indicate the location and plain language description of the\nfunctions necessary for the safe and efficient operation of the vehicle\nwhich shall at a minimum include:\n  (i) Headlights;\n  (ii) Brakes and emergency brake;\n  (iii) Turn signal indicators;\n  (iv) Hazard lights;\n  (v) Windshield wipers and washers;\n  (vi) Horn;\n  (vii) Cruise control;\n  (viii) Heat control system including defrost systems;\n  (ix) Car locking systems; and\n  (x) Spare tire and car jack, tire wrench, and jacking locations. In\nthe event the rental vehicle company elects to include the owner's\nmanual pursuant to this section, if the owner's manual is not returned\nwith the vehicle, the renter shall be liable to the rental vehicle\ncompany for the actual replacement cost of the owner's manual plus an\nadministrative fee.\n  11. Any clause or provision of a rental agreement inconsistent with\nthe provisions of this section shall be deemed void as against public\npolicy.\n  12. Any rental vehicle company found by a court of competent\njurisdiction to have violated a provision of this section shall be\nsubject to a penalty of not less than five hundred dollars nor more than\none thousand dollars for each violation.\n  13. (a) Whenever there shall be a violation of this section, an\napplication may be made by the attorney general in the name of the\npeople of the state of New York to a court of competent jurisdiction by\na special proceeding for the imposition of a fine or the issuance of an\ninjunction against any violation of this section, upon notice to the\nrental vehicle company of not less than five days, to enjoin and\nrestrain the continuance of such violations.\n  (b) If the court finds that the defendant has, in fact, violated this\nsection, an injunction may be issued by such court, enjoining and\nrestraining any further violation, without requiring proof that any\nperson has, in fact, been injured or damaged thereby.\n  (c) In any proceeding pursuant to this subdivision, the court may\ndirect restitution and make allowances to the attorney general as\nprovided in section sixty-three of the executive law.\n  (d) In support of any application pursuant to this subdivision, the\nattorney general is authorized to take proof, determine relevant facts\nand issue subpoenae in accordance with the civil practice law and rules.\n  13-a. A rental vehicle company shall not use information from any\nglobal positioning system technology to determine or impose any costs,\nfees, charges, or penalties on an authorized driver for such driver's\nuse of a rental vehicle. The use of global positioning technology shall\nnot limit the right of a rental vehicle company to impose costs, fees,\ncharges, or penalties to recover a vehicle that is lost, misplaced, or\nstolen. The provisions of this subdivision shall not be construed to\nmodify or supersede any other provision of law.\n  14. An authorized driver shall provide notice to the rental vehicle\ncompany or law enforcement agency within twelve hours of learning of the\ntheft of the rental vehicle.\n  15. In accordance with any applicable federal law or rule, every\nrental vehicle company shall display the following in a conspicuous\nlocation, with lettering that is legible and that shall be at least\nthree-quarters of an inch boldface type:\n  NOTICE: New York State Law prohibits the following practices by rental\nvehicle companies based upon race, color, ethnic origin, religion,\ndisability, sex, marital status, or age: (1) refusal to rent; (2) the\nimposition of any additional charge (except in certain instances where\nthe renter is under the age of 25). In addition, it is unlawful for any\nrental vehicle company to refuse to rent a vehicle to any person solely\non the requirement of ownership of a credit card.\n  * NB Effective June 30, 2028\n