STATEMENT OF BASIS AND PURPOSE
The Department’s Car Rental Program is a voluntary program that was established to assist vehicle rental companies manage parking summonses issued to vehicles registered in the program.
Currently, the Car Rental Program allows a lessor to enroll a vehicle with the Department in order to transfer the liability for the fines and penalties incurred from parking summonses to the lessee. Collection and enforcement issues may arise, however, when a vehicle owner leases the vehicle after incurring a large amount of parking summons debt. The lessor should be responsible for payment of this debt. However, because State law prohibits judgment creditors from interfering with the rights of a lessee, enforcements efforts, like towing or booting a vehicle, for example, are not possible.
The Department is proposing to expand the information that it may require from a lessor of a vehicle when the company that owns the vehicle enrolls or renews their enrollment in the Car Rental Program. The additional information collected from lessors will assist the Department in collecting unpaid parking summons judgment debt incurred by lessors enrolled in the Car Rental Program.
Specifically, the Department proposes adding:
· the lessor’s legal name and address at which it does business;
· a statement from the lessor indicating whether and how the lessor will inform the vehicle lessee that the lessee received a Notice of Violation (summons), including whether the lessor plans to collect fines and penalties originating from a Notice of Violation from the lessee; and,
· the lessor’s bank and credit information.
The Department’s authority for this rule is found in section 237 of the New York State Vehicle and Traffic Law, section 19-203 of the Administrative Code of the City of New York, and sections 1043 and 1504 of the New York City Charter.
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“Shall” and “must” denote mandatory requirements and may be used interchangeably in the rules of this department, unless otherwise specified or unless the context clearly indicates otherwise.