Bill Text: NJ A2808 | 2016-2017 | Regular Session | Introduced
Bill Title: "Safe Motor Vehicle Rental Act"; prohibits rental companies from renting, leasing, or selling unrepaired motor vehicles which are subject to safety recall.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2016-02-16 - Introduced, Referred to Assembly Consumer Affairs Committee [A2808 Detail]
Download: New_Jersey-2016-A2808-Introduced.html
Sponsored by:
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
Assemblyman JOHN J. BURZICHELLI
District 3 (Cumberland, Gloucester and Salem)
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
SYNOPSIS
"Safe Motor Vehicle Rental Act"; prohibits rental companies from renting, leasing, or selling unrepaired motor vehicles which are subject to safety recall.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning motor vehicle rentals and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. This act shall be known and may be cited as the "Safe Motor Vehicle Rental Act."
b. (1) It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for a rental company to rent a motor vehicle that contains a defect related to motor vehicle safety or does not comply with an applicable motor vehicle safety standard, unless the defect or noncompliance has been remedied prior to rental.
(2) If, during the rental period of a motor vehicle, the rental company learns that the vehicle contains a defect related to motor vehicle safety or does not comply with an applicable motor vehicle safety standard required pursuant to paragraph (1) of this subsection, the rental company shall immediately:
(a) make reasonable efforts to contact the renter and any authorized driver for whom the rental company has immediate contact information to inform the renter and authorized driver of the defect or noncompliance; and
(b) offer to provide the renter or authorized driver a comparable alternative vehicle, which has no defect and is in compliance, at no additional cost to the renter or authorized driver, until the defect or noncompliance has been remedied.
c. It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for a rental company to sell at retail or lease a motor vehicle that contains a defect related to motor vehicle safety if, prior to final sale or during the lease period of a motor vehicle, the rental company learns that the vehicle contains a defect related to motor vehicle safety and fails to immediately inform the purchaser or contact the lessee and any authorized driver for whom the rental company has immediate contact information to inform the purchaser, lessee, or authorized driver of the defect or noncompliance.
d. There shall be an irrebuttable presumption that a rental company had no knowledge of the existence of a prior recall on a motor vehicle if that company accessed the National Highway Traffic Safety Administration's Internet website and, after the company input the specific vehicle identification number, the website indicated that no open recall existed for the particular motor vehicle. This subsection shall not:
(1) create any legal duty upon a rental company related to the accuracy, errors, or omissions of the National Highway Traffic Safety Administration's website; or
(2) require a rental company to provide the person renting, leasing, or purchasing the motor vehicle with any recall information that may be added to the National Highway Traffic Safety Administration's Internet website, after the rental company has printed a copy of the recall information and provided it to the person.
e. As used in this section:
"Rental company" means a person engaged in the business of renting motor vehicles to the general public at retail, including renting vehicles on an hourly, daily, trip, or other short-term basis.
"Sell at retail" means a sale to the general public, and shall not include wholesale sales, sales between dealers, and sales to owners or operators of motor vehicle junk businesses or motor vehicle junk yards, as defined in R.S.39:11-2, or any other persons or entities engaged in the business of dismantling, destroying or recycling motor vehicles.
2. This act shall take effect on the first day of the seventh month next following the date of enactment.
STATEMENT
This bill, the "Safe Motor Vehicle Rental Act" prohibits a rental company from renting, leasing, or selling a motor vehicle which is subject to a known safety recall.
Under the provisions of the bill, it is an unlawful practice under the consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.), for a rental company to rent a motor vehicle that contains a defect related to motor vehicle safety or does not comply with an applicable motor vehicle safety standard, unless the defect or noncompliance has been remedied prior to rental.
If, during the rental period, the rental company learns that a vehicle is subject to a safety recall, the rental company will immediately:
(1) make reasonable efforts to contact the renter and any authorized driver to inform them of the defect or noncompliance; and
(2) offer to provide the renter or authorized driver a comparable alternative vehicle, at no additional cost, until the defect or noncompliance has been remedied.
The bill also provides that it is an unlawful practice under the consumer fraud act for a rental company to sell at retail or lease a motor vehicle that contains a defect related to motor vehicle safety if, prior to final sale or during the lease period of a motor vehicle, the rental company learns that a vehicle is subject to a safety recall and the company fails to immediately inform the purchaser or contact the lessee and any authorized driver to inform them of the defect or noncompliance.
Further, the bill provides that there is an irrebuttable presumption that a rental company had no knowledge of the existence of a prior recall on a motor vehicle if the company accessed the website of the National Highway Traffic Safety Administration (NHTSA) and, after the company input the specific vehicle identification number (VIN), the website indicated that no open recall existed for the particular motor vehicle. This provision would not: (1) create any legal duty upon a rental company related to the accuracy, errors, or omissions of the NHTSA website; or (2) require a rental company to provide a person with any recall information that may be added to the NHTSA website, after the company has printed a copy of the recall information and provided it to the person.
An unlawful practice under the consumer fraud act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. Additionally, violations can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.
