NY Gen Bus L § 396-Z (2021)
2021 New York Laws GBS - General Business Article 26 - Miscellaneous 396-Z - Rental Vehicle Protections.

* §  396-z.  Rental  vehicle  protections. 1. For the purposes of this section: (a) "Authorized driver" means:  (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 renter's or any authorized driver's use of a rental vehicle 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.  (d) "Optional vehicle protection" means  a  rental  vehicle  company's agreement not to hold an authorized driver liable for all or part of any damage  or  loss  to  the  rented vehicle, any loss of use of the rented vehicle, or any storage, impound, towing or administrative  charges  for which  an  authorized  driver  may be liable. The term "optional vehicle protection" shall encompass within its meaning other similar terms  that may  be  used  by  rental  vehicle companies, such as but not limited to "Collision Damage Waiver", "CDW", "Damage Waiver", "Loss Damage Waiver", "LDW", and "Physical Damage Waiver".  (e) "Renter" means a person or entity that obtains the use of a rental vehicle from a rental vehicle company under terms of a rental agreement.  (f) "Consolidated facilities charge" means the allowable recovery by a rental vehicle company from its renters of  those  fees,  including  any taxes  or  fees paid on such fees, for the finance, design, construction and operation of consolidated airport facilities  and  or  the  finance, design,  construction and operation of common use transportation systems that move passengers between airport terminals and consolidated  airport car  rental  facilities.  The aggregate amount to be collected shall not exceed the reasonable costs, as determined annually  by  an  independent audit  paid  for  by  the  airport  operator or its governing entity, to finance, design, construct and operate those facilities and  common  use transportation  systems.  The consolidated facilities charge shall apply only to vehicle rentals occurring at vehicle rental locations subject to the imposition of such charge by an airport operator  or  its  governing entity. The term "consolidated facilities charge" shall encompass within its  meaning other similar terms that may be used by airport authorities or rental vehicle companies, such  as,  but  not  limited  to  "customer facility charge" and "transportation facility charge".  (g) "Concession recovery fee" means the allowable recovery by a rental vehicle  company  from its renters of those fees, including any taxes or fees paid on such fees, which  an  airport  operator  or  its  governing entity  imposes  on  a  rental  vehicle company's applicable revenues or rental transactions, as defined and stated  in  a  concession  agreement that  authorizes  a  rental  vehicle  company  to  operate at an airport located in this state. The concession recovery fee shall apply  only  to vehicle  rentals  occurring  at  vehicle rental locations subject to the imposition of such fee by an airport operator or its  governing  entity. The  term  "concession  recovery fee" shall encompass within its meaning other similar terms that may be used by airport  authorities  or  rental vehicle  companies,  such  as,  but  not  limited  to, "concession fee", "concession recovery fee surcharge", "privilege fee" and "airport access fee".  (h)  "Airport  fees"  means  consolidated  facilities  charges  and/or concession recovery fees.  (i)  "Concession  agreement"  means  an  agreement,  permit or license entered into between an airport operator or  its  governing  entity  and rental  vehicle  company  setting  forth  the terms and conditions under which the rental vehicle company may transact  its  rental  business  at such airport.  (j)   "Consolidated  airport  facilities"  means  those  buildings  or physical structures, including, but not  limited  to,  parking  garages, parking  areas  and  fueling systems, constructed by or on behalf of the airport operator or its governing entity  to  be  jointly  used  by  all rental  vehicle  companies  operating  at  such  airport  pursuant  to a concession agreement.  (k) "Rental vehicle" means a rental vehicle as defined in section  one hundred  thirty-seven-a  of  the  vehicle and traffic law, but excluding motor vehicles designed primarily for the transportation of property.  (l) "Manufacturer's suggested retail price" means the retail price  of the  motor  vehicle suggested by the manufacturer in accordance with the requirements of federal law.   2. (a) A rental  vehicle  company  shall  not  charge  more  than  the following  amounts  per  full or partial twenty-four hour rental day for optional vehicle protection:  (i) nine dollars if the manufacturer's suggested retail price  of  the rental vehicle is not greater than twenty thousand dollars;  (ii)  twelve  dollars  if the manufacturer's suggested retail price of the rental vehicle is greater  than  twenty  thousand  dollars  but  not greater than thirty-five thousand dollars;  (iii)  fifteen dollars if the manufacturer's suggested retail price of the rental vehicle is greater than thirty-five thousand dollars but  not greater than fifty thousand dollars; and  (iv)   the   amount   that  may  be  charged  for  a  vehicle  with  a manufacturer's suggested value of greater than  fifty  thousand  dollars shall  not be subject to a maximum dollar amount but shall be subject to the fair market value as determined by the rental vehicle company.  (b)  A  rental  vehicle  company  shall  not  sell  optional   vehicle protection  unless  the renter agrees to the purchase of such protection in writing at or prior to the time the rental agreement is executed.  (c)  A  rental  vehicle  company  shall  not  void  optional   vehicle protection except for one or more of the following reasons:  (i)  The  damage  or  loss  is  caused intentionally or as a result of willful, wanton, or reckless conduct of the driver;  (ii) The damage or loss arises out of the driver's  operation  of  the vehicle  while  intoxicated or unlawfully impaired by the use of alcohol or drugs;  (iii) The rental vehicle company entered into the  rental  transaction based  on  fraudulent  or  materially  false information supplied by the renter or authorized driver;  (iv) The damage or loss arises out of the use  of  the  vehicle  while engaged in the commission of a crime other than a traffic infraction;  (v)  The  damage or loss arises out of the use of the vehicle to carry persons or property for hire, to push or tow anything, while engaged  in a speed contest, operating off road, or for driver's training;  (vi)  The  damage  or  loss  arises out of the use of the vehicle by a person other than: (1) an authorized driver; (2) the renter's child over the age of eighteen or a parent or parent-in-law of the renter, provided such child, parent or parent-in-law is properly licensed  to  operate  a motor  vehicle and resides in the same household as the renter; or (3) a parking valet or parking garage attendant for compensation  and  in  the normal course of employment;  (vii)  The damage or loss arises out of the use of the vehicle outside of the continental United States  when  that  use  is  not  specifically authorized by the rental agreement; or  (viii) The renter, or authorized driver, if different, or the renter's child  over  the  age  of  eighteen  or a parent or parent-in-law of the renter, if applicable, have failed to comply with the  requirements  for reporting  damage  or  loss  as  set  forth  in subdivision five of this section.  (d) A customer may void  optional  vehicle  protection  at  no  charge within twenty-four hours of purchase provided that the customer: (i) has entered  into  a  rental agreement with a term of two or more days, (ii) appears in person at any branch of the vehicle rental  company  together with  the vehicle that shall be subject to inspection, and (iii) signs a cancellation  form  provided  by  the  rental  vehicle  company.   After twenty-four  hours  of  purchase, a customer may prospectively terminate optional vehicle protection at any  time,  provided  the  customer:  (i) appears  in  person at any branch of the vehicle rental company together with the vehicle that shall be subject to  inspection;  (ii)  voids  the optional  vehicle  protection  in  writing;  and (iii) pays the optional vehicle protection charge for any full or partial rental day or  portion of a day during which the optional vehicle protection was in effect.   3.  Subject  to the provisions of subdivisions six, seven, and nine of this section, a rental vehicle company may  hold  an  authorized  driver liable  for  actual  damage  to,  or loss of, a rental vehicle, 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 such survey is precluded because  the  vehicle  is  returned  by  automation, returned  after-hours,  or  recovered  by  the  rental company, in which event, any claim must be made within ten days after return or  recovery; and  (b) any charge for repair of such damage shall be limited to actual and reasonable 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 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 are returned to the rental vehicle company via a drop box or other  process  offered  by the rental vehicle company.   4. (a) Any rental vehicle company which states or permits to be stated the  rental  costs  of a rental vehicle in any advertisement shall state conspicuously, in plain language and in conjunction with the  advertised rental  cost  of  the vehicle, the daily rate of the applicable optional vehicle protection, that the rate constitutes an additional daily charge to the renter, that the purchase of such  protection  is  optional,  and that  prospective  renters  should examine their credit card protections and automobile insurance policies for rental vehicle coverage.  (b) Where a written advertisement, including all print media, contains the statement of the rental cost of the vehicle, the disclosure required by this section shall be printed in type no less than ten point type.  (c) When the  website  of  a  rental  vehicle  company  or  the  video presentation  of  a  television  or internet advertisement by the rental vehicle company contains the written statement of the rental cost  of  a vehicle,  the  depiction  of the cost of the optional vehicle protection shall be clear and conspicuous.  (d) When  a  radio  advertisement  or  the  audio  presentation  of  a television  advertisement  contains  the statement of the rental cost of the  motor  vehicle,  the  oral  statement  of  the  rental  cost  shall immediately  be  accompanied  by  an  oral  statement of the cost of the optional vehicle protection.  (e) When a telephone, internet or other inquiry for the rental cost of a vehicle is  made  to  a  rental  vehicle  company  which  involves  an interaction  with  a  representative  of  a  rental vehicle company, the representative of the rental vehicle company shall, in response  to  the inquiry, advise that additional optional products that may be offered by the  rental  vehicle  company are not included in the daily rental rate. If an  inquiry  is  made  regarding  optional  vehicle  protection,  the representative shall provide the cost of the optional vehicle protection and  state that the purchase of such protection is optional and that the renter's personal  automobile  insurance  or  credit  card  may  provide coverage.  (f) Any rental vehicle company that offers optional vehicle protection to  a  renter  shall disclose to the renter the following information on posted signs or pamphlets prominently and conspicuously displayed  where they may be easily seen or reached by customers:                                 "NOTICES    THE FOLLOWING IS A GENERAL SUMMARY OF RENTER'S RIGHTS AND OBLIGATIONS. FOR COMPLETE DETAILS, REFER TO THE RENTAL AGREEMENT.   OPTIONAL  VEHICLE  PROTECTION  (OVP):  This  contract  offers,  for an additional charge, OVP to cover your financial responsibility for damage or loss to the rental vehicle. OVP is also commonly  referred  to  as  a "collision  damage  waiver".  The purchase of OVP is optional and may be declined. Before deciding whether to  purchase  OVP,  you  may  wish  to determine  whether your credit card, or the vehicle insurance maintained by yourself or someone in your household, affords you any  coverage  for damage  to  the  rental  vehicle, and the amount of deductible under any such coverage.   OVP - WHEN VOID: OVP is void and shall  not  apply  to  the  following situations:   1.  If  the  damage  or  loss  is  caused  as a result of the driver's intentional acts; willful, wanton, or reckless conduct of the driver; or operation of the vehicle while intoxicated or unlawfully impaired by the use of alcohol or drugs;   2. The rental vehicle company  entered  into  the  rental  transaction based  on  fraudulent  or  materially  false information supplied by the renter or authorized driver;   3. The damage or loss arises out of the use of the rental vehicle:  (a) while engaged in the commission of a crime, other than  a  traffic infraction;  (b)  to  carry  persons or property for hire, to push or tow anything, while engaged in a speed contest, operating off road,  or  for  driver's training;  (c) by a person other than: (1) an authorized driver; (2) the renter's child  over  the  age  of  eighteen  or a parent or parent-in-law of the renter,  provided  such  child,  parent  or  parent-in-law  is  properly licensed to operate a motor vehicle and resides in the same household as the  renter;  or  (3)  a  parking  valet or parking garage attendant for compensation and in the normal course of employment;  (d) outside of the continental United  States  when  not  specifically authorized by the rental agreement;  (e)  where  the  renter  or  authorized  driver,  if different, or the renter's child over the age of eighteen or a parent or parent-in-law  of the  renter,  if  applicable, failed to comply with the requirements for reporting damage or loss as set forth in law.   OVP - DAMAGE REPORTING REQUIREMENTS: If the  rental  vehicle  sustains damage  or  loss, the renter and other authorized driver, as applicable, are required to complete and return an incident  report  notice  to  the  rental  vehicle  company.  An authorized driver other than the renter is only required to complete and return an incident report  notice  to  the rental  vehicle  company  if  such  authorized  driver was operating the vehicle when the incident occurred.   OVP - RIGHT TO INSPECT VEHICLE DAMAGES: The renter and his/her insurer have  the  right  to request an inspection of the vehicle damages within seventy-two hours of the return of the vehicle. Failure of the renter or his/her insurer to request an inspection  within  seventy-two  hours  of return  shall  be  deemed  a  waiver of such person or entity's right to inspect the damaged vehicle.   THEFT OF THE RENTAL VEHICLE: If the rental vehicle  is  stolen  during the  term  of  a  rental agreement, an authorized driver must report the theft of the rental vehicle to the rental  vehicle  company  and  a  law enforcement agency within twelve hours of learning of such theft."  (g)  The  following disclosure notice shall be made on the face of the rental agreement either by stamp,  label  or  as  part  of  the  written contract  or  on  any other written document provided to the renter upon execution of such contract, and shall be set apart in boldface type  and in  no  smaller  print  than  ten  point type until six months after the effective date of the chapter of the laws of two thousand eighteen  that amended  this  section,  when  upon such date such notice shall be in no smaller print than twelve point type:   "NOTICE: This contract offers,  for  an  additional  charge,  optional vehicle  protection to cover your financial responsibility for damage or loss to the rental vehicle. The purchase of optional vehicle  protection is  optional  and may be declined. You are advised to carefully consider whether to purchase this protection if you have rental vehicle collision coverage provided by your credit card or  automobile  insurance  policy. Before deciding whether to purchase optional vehicle protection, you may wish  to  determine  whether  your credit card or your vehicle insurance affords you coverage for damage to the rental vehicle and the amount  of deductible under such coverage."  (h) The contract shall also include in boldface type and in no smaller print  than  ten point type until six months after the effective date of the chapter of the laws of  two  thousand  eighteen  that  amended  this section,  when  upon  such date such notice shall be in no smaller print than twelve point type  and,  in  plain  language,  the  conditions  and exclusions  set  forth  in  paragraph  (c)  of  subdivision  two of this section. Upon identification by the rental vehicle company of damage  to the  rental vehicle, such rental vehicle company shall inform the renter of his or her right to inspect the vehicle, and the procedures and  time frames  for  doing so, pursuant to paragraphs (b) and (c) of subdivision five of this section.   5. (a) Upon identification of damage by the rental vehicle company  at the return of the vehicle, termination of the rental contract, or within ten  days  if  a  survey  for damage is precluded because the vehicle is returned by automation, returned after-hours, or recovered by the rental vehicle company, the rental vehicle company shall  furnish  an  incident report  form and a notice, pursuant to this paragraph, of the obligation of the renter and other authorized driver, if applicable, to execute and return to the rental vehicle company a complete  and  accurate  incident report  describing  any physical and/or mechanical damage. An authorized driver other than the renter shall be required  to  execute  and  return such  incident  report form only if such authorized driver was operating the vehicle when the incident occurred. If the vehicle  is  returned  by automation,  returned  after-hours,  or  recovered by the rental vehicle company, such incident  report  form  and  notice  shall  be  mailed  by overnight  delivery service or certified mail, return receipt requested,  and another copy of such notification shall be sent by regular mail. The rental vehicle company shall retain for six years a copy of such  notice and the certified mail return receipt.  (b)  Within  seventy-two  hours of receipt of the incident report form and notice, either the renter or his or her insurer must notify or  send notice to the rental vehicle company that either he, she, or the insurer wishes  to  inspect  the  damaged  vehicle.  If the renter or his or her insurer does not notify or send a request for this inspection within the seventy-two hour period, he, she, or the insurer will be deemed to  have waived this right.  (c)  If  the  renter  or  other authorized driver declines or fails to complete and return the incident report required pursuant  to  paragraph (a)  of  this  subdivision,  the rental vehicle company shall, no sooner than ten days  after  the  mailing  of  notification  pursuant  to  such paragraph  (a), mail another copy of the incident report together with a letter stating that the renter or other authorized driver  has  declined or  otherwise  failed  to  complete and return the incident report. Such mailing shall be by overnight delivery service or certified mail, return receipt requested, and another copy  of  such  notification  by  regular mail,  with  proof  of mailing by production of a certificate of mailing from the post office. When a request to inspect  the  vehicle  has  been timely  made by the renter or his or her insurer, the inspection must be completed within seven days of  such  request.  If  the  rental  vehicle company determines the damaged vehicle to be a total loss and subject to salvage,  such seventy-two hour period for notification or waiver of the wish to inspect the damaged vehicle shall not apply, and the  renter  or his  or  her  insurer  shall  have  ten  business days from the renter's receipt of notification from the  rental  vehicle  company  pursuant  to paragraph (a) of this subdivision to inspect the damaged vehicle, unless the  rental  vehicle  company  agrees  to provide access to such damaged vehicle beyond the ten business days provided herein. Within the  limits provided  in  this  paragraph, the rental vehicle company 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, and/or repair estimates.  (d) All notices shall be mailed to the address of the renter and other authorized  driver,  if  applicable, as stated on his or her license, or other address as designated by him or her on the rental agreement.  (e) The renter and  other  authorized  driver,  if  applicable,  shall complete  and  return the incident report within ten days of the receipt of the notice.  (f) The notice required by this  subdivision  shall  be  in  at  least twelve point bold face type and shall contain the statement: "Failure to completely  and accurately fill out and return an incident report within ten days of receipt  of  this  notice  may  make  the  renter  or  other authorized  driver  liable  for damages sustained to the rental vehicle. Except where the damaged vehicle is determined to be a  total  loss  and subject  to  salvage,  the  renter or his or her insurer has seventy-two hours from the return or recovery of the vehicle to  notify  the  rental vehicle  company  that  he or she wishes to inspect the damaged vehicle. The inspection must be completed  within  seven  business  days  of  the request  to  inspect the vehicle. If the rental vehicle company does not receive notification from the renter or his or  her  insurer  requesting such  inspection  within the seventy-two hour period, the renter and his or her insurer will be deemed to have waived this right. If  the  rental vehicle  company  determines  the damaged vehicle to be a total loss and subject to salvage, such seventy-two hour  period  for  notification  or waiver  of  the wish to inspect the damaged vehicle shall not apply, and  such right to inspect the damaged vehicle shall expire ten business days from the renter's  receipt  of  this  notice  from  the  rental  vehicle company.  Upon  request  of  the  renter  or his or her insurer, we will provide  a  copy  of the professional estimate of the costs of repairing the damaged motor vehicle." Information that is provided in response  to a  request  by  a rental vehicle company, but that is not provided on an incident report form, shall satisfy any reporting obligation of a renter or authorized driver if such response substantially  complies  with  the applicable  requirements  of  this section. If additional information is reasonably required by the rental vehicle company in order to adjust any claim of loss, same shall be  requested  of  the  renter  or  authorized driver  as  soon as reasonably practicable, who shall respond to same as soon as reasonably practicable.  (g) (i) For purposes of this subdivision, each of the following  shall constitute  an  "incident  report  form":  (A)  a motor vehicle accident report pursuant to section six hundred five of the vehicle  and  traffic law; or (B) any similar appropriate form furnished by the rental vehicle company.  (ii)  An  incident report form described in clause (B) of subparagraph (i) of this paragraph:  (A) may be sent or given to a  renter  and/or  authorized  driver,  as applicable,  with  a  request  that  the renter and/or authorized driver provide information pursuant to this  section  concerning  damage  to  a vehicle rented to the renter or operated by an authorized driver, as the case may be; and  (B)  such  a  form may also be made available as a fill-in form on the rental vehicle company's website, and the renter or  authorized  driver, as  the  case  may  be,  shall  be  advised  of the availability of such web-based fill-in form when a request for incident information  is  made under this subdivision.  (h)  Provided,  however,  if  the renter or other authorized driver is physically incapable of completing the report, the requirements of  this subdivision  shall  lapse  until after he or she is able to complete the report and is notified that he or  she  must  complete  and  return  the report as required by paragraph (b) of this subdivision.  (i)  Provided,  further,  the  rental  vehicle  company must, at least twenty days prior to commencing an action against the  renter  or  other authorized driver, if applicable, provide the renter or other authorized driver,  if applicable, an additional opportunity to complete and submit the incident report by providing a second  notice,  along  with  another incident  report  form, by certified mail, return receipt requested, and another copy of such notice and report form by regular mail, with  proof of  mailing  by production of a certificate of mailing. If the renter or other authorized driver, as applicable, sends the rental vehicle company a completed incident report within fifteen days of the  receipt  of  the notice, the provisions of this subdivision shall be deemed satisfied.   6.  (a)  A rental vehicle company may hold an authorized driver liable to the extent permitted under this chapter for  physical  or  mechanical damage  to  the  rental  vehicle  that occurs during the time the rental vehicle is under  the  rental  agreement;  provided,  however,  that  an authorized  driver  shall  not be liable for any normal wear and tear or mechanical damage that could reasonably be expected from normal  use  of the vehicle. For the purposes of this subdivision, the term "normal wear and  tear"  shall mean the deterioration of the condition of the vehicle or its component parts due to repetitive use and does not include damage that materially diminishes the value of the vehicle and  arises  from  a specific  occurrence  or  accident during the time the rental vehicle is subject to the rental agreement; and the  term  "actual  and  reasonable  costs" shall mean the cost to repair the vehicle including all discounts and  price adjustments available to the rental vehicle company and shall include costs for towing, storage, and impound fees where applicable.  (b) The total liability of an authorized driver under paragraph (a) of this  subdivision  for  damage  to  a motor vehicle shall not exceed the lesser of:  (i) the actual and reasonable costs that the  rental  vehicle  company incurred  to repair the motor vehicle or that the rental vehicle company would have incurred if the motor vehicle had been repaired, which  shall reflect any discounts, price reductions, or adjustments available to the rental vehicle company; or  (ii) the fair market value of the motor vehicle immediately before the damage  occurred,  as determined in the applicable market for the retail sale of the motor vehicle, less any net disposal proceeds.  (c) The total liability of an authorized driver under paragraph (a) of this subdivision for loss of a motor vehicle shall not exceed reasonable costs incurred by the rental vehicle company for the loss due  to  theft of  the rental vehicle up to its fair market value, as determined by the applicable market  for  the  retail  sale  of  that  vehicle  if  it  is established that an authorized driver failed to exercise reasonable care or  that  an  authorized  driver  committed,  or aided or abetted in the commission of, the theft of the rental motor vehicle.  (d) Damages incurred by rental vehicle companies for the loss  of  use of  a  rental  vehicle  and  related  administrative  fees  shall not be recovered from any authorized driver or his or her insurer.  (e) A rental vehicle company  shall  not  hold  an  authorized  driver liable for any amounts that the rental vehicle company recovers from any other party.  (f)  A  rental vehicle company shall not collect or attempt to collect the amount described in paragraph (b) of  this  subdivision  unless  the rental vehicle company:  (i)  obtains  an estimate from a repair company or an appraiser in the business of providing such appraisals on the cost of repairing the motor vehicle;  (ii) provides a copy of the estimate and  photographic  evidence  upon request  to  the  renter  or authorized driver, as applicable who may be liable under paragraph (a) of this subdivision, and the insurer of  such renter or authorized driver, as applicable; and  (iii)  submits  a  copy  of the estimate with any claim to collect the amount described in paragraph (b) of this subdivision.  (g) A claim against an authorized driver resulting from damage or loss to a rental vehicle shall be reasonable and reflect  the  value  of  the actual  loss  incurred.  A rental vehicle company shall mitigate damages where possible and shall not assert or collect any  claim  for  physical damage  which  exceeds the amount authorized under paragraph (b) of this subdivision.  (h)  If  insurance  coverage  exists  under  an  authorized   driver's applicable insurance policy, such authorized driver may require that the rental  vehicle  company  submit  any claims to such authorized driver's insurance carrier. Upon the request of an authorized driver, the  rental vehicle  company  shall  submit  any  claims to such authorized driver's insurance carrier and shall not make any written or oral representations to the contrary, nor shall it make any written or  oral  representations that  it  will  not  negotiate  with  such authorized driver's insurance carrier.   7. (a) No rental vehicle company shall collect or charge any security, deposit, or payment for damage in any form, by credit card,  debit  card or  otherwise,  or  report the debt to any consumer reporting agency, as  defined in subdivision (e) of section three  hundred  eighty-a  of  this chapter,  during the term of the rental agreement, pending resolution of any dispute, or prior to obtaining judgment  in  a  court  of  competent jurisdiction.  (b)  No  rental  vehicle company shall require a deposit or an advance charge against the credit card or debit card of an authorized driver, in any form, for damages to a rental vehicle which  is  in  the  authorized driver's possession or control.  (c) No rental vehicle company shall collect or charge any payment from an  authorized  driver  for  damage to the rental vehicle upon return or recovery of the vehicle in a damaged condition, until after the cost  of the  damage  to  the vehicle and liability therefor is agreed to between the rental vehicle company and  an  authorized  driver  or  his  or  her insurer, or is determined pursuant to law or rental agreement provisions consistent  with  law  and  the rights and obligations set forth in this section; provided,  however,  that  a  rental  vehicle  company  is  not precluded from presenting a claim to an authorized driver and his or her insurer pursuant to other provisions of this section.  (d)  Causes  of action concerning the existence of, liability for, and extent and cost of damage to the vehicle shall,  where  appropriate,  be commenced   by  a  rental  vehicle  company  in  a  court  of  competent jurisdiction, in accordance with the limitations and jurisdiction of the appropriate court act provided the claimant has first  mailed  a  demand letter.  A  demand letter sent by the rental vehicle company pursuant to this paragraph shall contain: (i) the name and post  office  address  of the rental vehicle company, and of its attorney, if any; (ii) the nature of  the  claim;  (iii)  the time when, the place where and the manner in which the claim arose, if known, or if not  known,  the  time  when  and place where the damage was discovered by the rental vehicle company; and (iv)  the  items  of  damage or injuries claimed to have been sustained, accompanied by supporting documentation, such as repair bills,  invoices and  estimates  in  the possession of or available to the rental vehicle company. Such demand letter shall be served  upon  the  renter  and  the renter's  insurer in a manner reasonably designed to give actual notice, via regular  and  certified  mail,  return  receipt  requested.  Nothing contained  herein  shall  prohibit  a  rental  vehicle  company  and  an authorized driver or his or her insurer from entering into an  agreement after a claim of loss to submit the matter to arbitration or mediation.   8.  No  rental  vehicle company shall advertise or quote a rental rate that does not include all charges, except taxes or optional items and/or services or any mileage charge, which the renter must pay  to  obtain  a rental  vehicle.  Provided,  however,  a rental vehicle company shall be permitted to separately quote and charge airport fees as defined herein, which shall be in addition to the rental rate; and provided further that advertised rental rates that include locations  at  which  airport  fees apply shall clearly indicate that additional fees apply.   8-a.  It shall be unlawful for any rental vehicle company to engage in any of the following practices solely on the basis of  the  geographical location  of  the  residence  of a New York state resident attempting to enter into a rental agreement:  (a) refusing to rent a vehicle;  (b) imposing any additional charge for the rental of a motor  vehicle; or  (c)  imposing  any additional terms, conditions or privileges upon the rental of a vehicle.   9. No rental vehicle company shall hold any authorized  driver  liable for  any  damage  to,  or loss of, a rental vehicle, 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 pursuant to paragraph (c) of subdivision  two  of  this section and paragraph (g) of subdivision four of this section.   10.  (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  surcharges,  each of which shall be separately stated on the rental agreement. In addition, a rental  vehicle  company  may  also state separately and charge, where applicable, airport fees as such term is defined herein.  (b)  In  addition  to the rental rate, taxes, applicable airport fees, 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  five dollars per additional driver per rental day.  (e)  A  rental  vehicle company shall furnish with each rental vehicle pursuant to an agreement either an owner's manual  or  a  diagram  which shall  indicate  the  location  and  plain  language  description of the functions necessary for the safe and efficient operation of the  vehicle which shall at a minimum include:  (i) Headlights;  (ii) Brakes and emergency brake;  (iii) Turn signal indicators;  (iv) Hazard lights;  (v) Windshield wipers and washers;  (vi) Horn;  (vii) Cruise control;  (viii) Heat control system including defrost systems;  (ix) Car locking systems; and  (x)  Spare  tire  and car jack, tire wrench, and jacking locations, if and to the extent that such items were either included with the  initial sale  of  the vehicle when new, or such items were generally included in new vehicles of such year, make, model and style when initially sold  at retail.  In  the  event the rental vehicle company elects to include the owner's manual pursuant to this section, if the owner's  manual  is  not returned  with  the  vehicle,  the  renter shall be liable to the rental vehicle company for the actual replacement cost of  the  owner's  manual plus an administrative fee.   11.  Any  clause  or provision of a rental agreement inconsistent with the provisions of this section shall be deemed void  as  against  public policy.   12.  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.   13.  (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-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  and  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: (1) refusal to rent; (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."   16.  (a)  Notwithstanding  any  other  provision  of this section, any notice or disclosure of general applicability required to  be  provided, delivered,  posted,  or  otherwise  made  available  by a rental vehicle company pursuant to  this  section  shall  also  be  deemed  timely  and effectively  made  where  such  notice  or disclosure is (i) provided or delivered electronically to the renter at or before  the  time  required provided  that  such  renter  has  given his or her expressed consent to receive such notice or disclosure in such a manner, or (ii) included  in a member or master agreement in effect at the time of rental.  (b) For the purposes of this subdivision, "member or master agreement" shall  mean  an agreement between a rental vehicle company and a renter, or an agreement between a rental vehicle company  and  another  company, which  by  its  express  terms:  (i)  permits  such  renter or specified employees of such other company to bypass a retail service location  and obtain  a  product or service directly; (ii) does not require the renter to execute a rental agreement at the time of rental; or (iii)  does  not require the rental vehicle company to provide the renter with the rental terms and conditions at the time of rental due to the prior execution of the agreement. Electronic or written acceptance shall hereby be deemed a valid  form  of  acceptance  of  any  such  notice  or  disclosure,  and acceptance shall remain effective  until  such  time  as  acceptance  is  affirmatively  withdrawn  by  the  renter.  Notices and disclosures made electronically pursuant to this subdivision shall  be  exempt  from  any placement  or  stylistic display requirements, including but not limited to   location,   font   size,  typeset,  or  other  specifically  stated description; provided such disclosure is made in a clear and conspicuous manner.   * NB Effective until June 30, 2023   * § 396-z. Rental vehicle protections. 1. 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: (1) refusal to  rent;  (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.   * NB Effective June 30, 2023