2023 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, 2028
* § 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.
(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 the 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
private passenger 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  those  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 facility 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.
(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,  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.
(h) "Airport fees" means the consolidated facility charge  and/or  the
concession recovery fee as those terms are defined herein.
(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.
2. (a) A rental vehicle  company  shall  not  charge  more  than  nine
dollars  per  full  or  partial twenty-four hour rental day for optional
vehicle protection if the manufacturer's suggested retail price  of  the
rental  vehicle  is  not  greater than thirty thousand dollars. A rental
vehicle company shall not charge more than twelve dollars  per  full  or
partial  twenty-four  hour rental day for optional vehicle protection if
the manufacturer's suggested retail  price  of  the  rental  vehicle  is
greater than thirty thousand dollars.
(b)   A  rental  vehicle  company  shall  not  sell  optional  vehicle
protection unless the authorized driver 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 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: an authorized driver; a duly licensed parent or child
over  the  age  of  eighteen thereof who permanently resides in the same
household;  or  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.
(viii)   The   authorized   driver  has  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
rented the vehicle for 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.
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 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 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 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. (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  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 inquiry for the rental cost of a vehicle is  made
to  a  rental  vehicle company, the representative of the rental vehicle
company shall, in response to an inquiry by the caller, 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 an authorized driver shall inform the  authorized  driver  in  posted
signs  or  in  pamphlets,  written  in  plain  language,  of  all of the
information required to be disclosed by this section.  The  requirements
of  this paragraph shall be deemed to be satisfied if the rental vehicle
company  places  the  posted  signs   or   pamphlets   prominently   and
conspicuously where they may be easily seen or reached by customers.
(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 authorized
driver at the time such driver takes possession of the vehicle, shall be
set apart in boldface type and in no smaller print than ten 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, in plain language, any other conditions or
exclusions applicable to the optional  vehicle  protection.  The  rental
vehicle  company  shall  also inform the authorized driver of his or her
right to inspect the vehicle pursuant to paragraph  (c)  of  subdivision
five of this section.
5. (a) Upon return of the vehicle, termination of the rental contract,
or  within ten days if returned by automation or after-hours, the rental
vehicle company shall furnish an incident  report  form  and  a  notice,
pursuant  to  this  paragraph,  of the authorized driver's obligation to
execute and return to the rental vehicle company a complete and accurate
incident report describing any physical and/or mechanical damage. If the
vehicle is returned by automation or after-hours, 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)  Upon  return  of  the vehicle, or within seventy-two hours if the
return is by automation or after-hours, the authorized driver or his  or
her  insurer  must  notify  the rental vehicle company that they wish to
inspect the damaged vehicle. The inspection  must  be  completed  within
seven  days  of the return date of the vehicle. If the authorized driver
or his or her insurer  does  not  request  this  inspection  within  the
seventy-two  hour  period,  the  authorized driver or his or her insurer
will be deemed to have waived this right.
(c) If the 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  twenty
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 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.  Within
seventy-two hours of return of the vehicle, the authorized driver or his
or  her  insurer  must  notify the rental vehicle company that he or she
wishes to inspect the damaged vehicle. The inspection must be  completed
within  seven  days of the return date of the vehicle. If the authorized
driver or his or her insurer does not request this inspection within the
seventy-two hour period, the authorized driver or  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 the  authorized
driver  or  his  or  her  insurer  shall have ten business days from the
authorized driver'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 authorized driver's address  as
stated  on  his or her license, or other address as designated by him or
her.
(e)  The  authorized  driver  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 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
authorized driver or his or her insurer has seventy-two hours  from  the
return  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 return date of the vehicle.
If the authorized driver or his or her insurer  does  not  request  this
inspection  within the seventy-two hour period, the authorized driver or
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 authorized driver's receipt of  this  notice  from  the  rental
vehicle  company  at  the  return of the vehicle or receipt of the first
mailing of this notice  in  the  event  of  return  of  the  vehicle  by
automation  or after hours. Upon request of the authorized driver or his
or her insurer, we will provide a copy of our estimate of the  costs  of
repairing the damaged motor vehicle."
(g)  For  purposes  of this subdivision, an "incident 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.
(h)  Provided,  however,  if  the  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,  twenty  days  prior  to commencing an action
against the authorized driver, the rental vehicle company must prove the
authorized driver had an additional opportunity to provide the  incident
report  by  providing a second notice along with another incident report
by certified mail, return receipt requested, and another  copy  of  such
notice  and  report by regular mail, with proof of mailing by production
of a certificate of mailing; and if the authorized driver  provides  the
rental  vehicle  company with 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 a  renter
shall  not be liable for mechanical damage unrelated to an accident, nor
for any normal wear and tear  or  other  mechanical  damage  that  could
reasonably  be  expected  from  normal  use  of  the  vehicle, except in
instances where abuse or  neglect  by  the  driver  is  shown.  For  the
purposes  of  this subdivision, "actual and reasonable costs" shall mean
the repair price reduced by all discounts paid  by  the  rental  vehicle

company  to  the  repairer  of  the vehicle, including costs for towing,
storage, and impound fees.
(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 authorized drivers.
(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 authorized driver who may be liable under paragraph (a)
of this subdivision, or the insurer of the authorized driver; 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 rationally related to 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  the  authorized  driver's
applicable insurance policy, the authorized driver may require that  the
rental  vehicle  company  submit  any  claims to the authorized driver's
insurance carrier. Upon the request of an authorized driver, the  rental
vehicle  company  shall  submit  any  claims  to the 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  the  authorized driver's insurance
carrier.
7. (a) No rental vehicle company shall 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.
(b) No rental vehicle company shall require a deposit  or  an  advance
charge against the credit 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 require any payment to the rental
vehicle company, upon the authorized driver's return 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
the  authorized  driver  or  is  determined  pursuant  to law; provided,
however, that a rental vehicle company is not precluded from  presenting
a  claim  to  the authorized driver 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  commercial  claims  part  in
accordance  with  the  limitations  and  jurisdiction of the appropriate
court act.
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 an authorized driver 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.
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 under 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  three
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. 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 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, 2028