S T A T E O F N E W Y O R K
________________________________________________________________________
3224
2009-2010 Regular Sessions
I N A S S E M B L Y
January 23, 2009
___________
Introduced by M. of A. PHEFFER -- read once and referred to the Commit-
tee on Transportation
AN ACT to amend the vehicle and traffic law, in relation to dealers and
dealer registration; and to amend the general business law, in
relation to the definition of dealer
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Paragraph a of subdivision 1, paragraph b and the opening
2 paragraph of paragraph d of subdivision 5 and paragraphs c and h of
3 subdivision 9 of section 415 of the vehicle and traffic law, as amended
4 by chapter 7 of the laws of 2000, are amended to read as follows:
5 a. "Dealer" means a person engaged in the business of buying, selling
6 or dealing in motor vehicles, motorcycles or trailers, other than mobile
7 homes or manufactured homes, at retail or wholesale; except, however,
8 trailers with an unladen weight of less than one thousand pounds. For
9 the purposes of this section, a "mobile home" or "manufactured home"
10 means a mobile home or manufactured home as defined in section one
11 hundred twenty-two-c of this chapter. Any person who sells, or offers
12 for sale more than five motor vehicles, motorcycles or trailers in any
13 calendar year or who displays or permits the display of three or more
14 motor vehicles, motorcycles or trailers for sale at any one time or
15 within any one calendar month upon premises owned or controlled by him,
16 if such vehicles were purchased, acquired or otherwise obtained by such
17 person for the purpose of resale, will be regarded as a dealer. ANY
18 PERSON WHO WITH THE AID OF THE INTERNET, OR OTHER COMPUTER-MEDIATED
19 CHANNEL, DIRECTLY OR INDIRECTLY, SELLS OR DELIVERS MORE THAN FIVE MOTOR
20 VEHICLES TO CONSUMERS IN THIS STATE WITHIN ONE YEAR SHALL BE DEEMED A
21 DEALER. Except as otherwise provided in subdivisions three, five, six-b,
22 and seven of this section, the term "dealer" shall include a "new motor
23 vehicle dealer" as defined by paragraph f of this subdivision and a
24 "qualified dealer" as defined in paragraph g of this subdivision.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06854-01-9
A. 3224 2
1 b. The place or places, including the complete address or addresses
2 where the business is to be conducted and, in the case of an application
3 to do business as a new motor vehicle dealer, the names of each line or
4 make of new motor vehicle which a manufacturer or distributor has
5 authorized the applicant to sell from each location and the date of
6 inception of the franchise, as defined in section four hundred sixty-two
7 of this title, which authorizes the applicant to sell such line or make
8 from each location. A copy of each such franchise, or other documenta-
9 tion in lieu thereof satisfactory to the commissioner, shall be submit-
10 ted to the commissioner at the time of application and upon each renewal
11 of each certificate to do business as a new motor vehicle dealer. AN
12 APPLICANT WHO PROPOSES TO USE THE INTERNET, OR OTHER COMPUTER-MEDIATED
13 CHANNEL, IN AID OF ITS SALE OF MOTOR VEHICLES TO CONSUMERS IN THIS
14 STATE, WHICH SUCH ACTIVITIES MAY RESULT IN THE CREATION OF BUSINESS
15 RECORDS OUTSIDE THIS STATE, SHALL PROVIDE THE COMMISSIONER WITH THE
16 IDENTITY OF THE PERSON, AND HIS OR HER ADDRESS AND TELEPHONE NUMBER, WHO
17 HAS CONTROL OVER SUCH RECORDS, BUT THIS SHALL NOT RELIEVE SUCH APPLICANT
18 FROM MAINTAINING AN ESTABLISHED PLACE OF BUSINESS IN THIS STATE.
19 Before an application for an original certificate of registration is
20 approved, the applicant must have on the premises to be licensed
21 adequate space and proper facilities to retain and safeguard all records
22 and documents he must maintain upon the licensed premises as required by
23 [the vehicle and traffic law] THIS CHAPTER and the regulations of the
24 commissioner. AN APPLICANT WHO USES THE INTERNET, OR OTHER
25 COMPUTER-MEDIATED CHANNEL, IN AID OF ITS SALE OF MOTOR VEHICLES TO
26 CONSUMERS IN THIS STATE, WHICH SUCH ACTIVITIES MAY RESULT IN THE
27 CREATION OF BUSINESS RECORDS OUTSIDE THIS STATE SHALL UPON WRITTEN
28 REQUEST OF THE COMMISSIONER OR ANY OF ITS INSPECTORS OR OTHER EMPLOYEES
29 PROVIDE COPIES OF RECORDS MAINTAINED ON SUCH COMPUTERS REGARDING TRANS-
30 ACTIONS WITH CONSUMERS IN THIS STATE WITHIN FIFTEEN DAYS OF RECEIPT OF
31 SUCH REQUEST. IN THE INSTANCE OF A CONSUMER REQUESTING THEIR INDIVIDUAL
32 RECORDS THE APPLICANT WHO USES THE INTERNET MUST PROVIDE SUCH RECORDS
33 WITHIN FIVE BUSINESS DAYS OF RECEIPT OF SUCH REQUEST.
34 c. Has been guilty of fraud or fraudulent practices, or has practiced
35 dishonest or misleading advertising. DEALER ADVERTISEMENTS OF PRODUCTS
36 OR SERVICES THAT ARE SUBJECT TO AVAILABILITY MUST BE PLAINLY AND LEGIBLY
37 IDENTIFIED AS SUCH BY THE DEALER IN THE ADVERTISEMENT. "ADVERTISING" AND
38 "ADVERTISEMENT" MEANS, FOR PURPOSES OF THIS PARAGRAPH, ANY ORAL, WRIT-
39 TEN, PICTORIAL, OR GRAPHIC EXPRESSION OF A MESSAGE MADE BY A DEALER TO
40 THE CONSUMING PUBLIC IN CONNECTION WITH THE SOLICITATION OF ITS BUSINESS
41 OR SERVICES, AND INCLUDES, WITHOUT LIMITATION, SUCH EXPRESSIONS
42 CONTAINED IN NEWSPAPERS, MAGAZINES, DIRECT MAIL, INTERNET WEBSITES, OR
43 ON RADIO OR TELEVISION; or
44 h. Was the former holder, or was an officer, director, stockholder, or
45 partner, in a corporation or partnership which was the former holder of
46 a dealer's registration, which was suspended or revoked by the commis-
47 sioner[.]; OR
48 S 2. Subdivision 9 of section 415 of the vehicle and traffic law is
49 amended by adding two new paragraphs i and j to read as follows:
50 I. AS TO VEHICLES DELIVERED TO A LOCATION DESIGNATED BY THE CONSUMER,
51 HAS FAILED TO ORIGINATE SUCH VEHICLE DELIVERIES FROM A DEALER'S ESTAB-
52 LISHED PLACE OF BUSINESS IN THIS STATE; OR
53 J. HAS FAILED TO COMPLY WITH ANY OF THE REQUIREMENTS SET FORTH UNDER
54 SECTION ONE HUNDRED NINETY-EIGHT-A OR ONE HUNDRED NINETY-EIGHT-B OF THE
55 GENERAL BUSINESS LAW.
A. 3224 3
1 S 3. The opening paragraph of paragraph 3 of subdivision a of section
2 198-b of the general business law, as amended by chapter 444 of the laws
3 of 1989, is amended to read as follows:
4 "Dealer" means any person or business which sells, offers for sale,
5 leases or offers for lease a used vehicle after selling, offering for
6 sale, leasing or offering for lease three or more used vehicles in the
7 previous twelve month period[, but]. ANY PERSON WHO WITH THE AID OF THE
8 INTERNET, OR OTHER COMPUTER-MEDIATED CHANNEL, DIRECTLY OR INDIRECTLY,
9 SELLS, OR DELIVERS OR LEASES MORE THAN FIVE MOTOR VEHICLES TO CONSUMERS
10 WITHIN ONE YEAR IN THIS STATE SHALL BE DEEMED A MOTOR VEHICLE DEALER.
11 DEALER does not include:
12 S 4. Nothing in this act shall contravene any franchise agreements in
13 effect as of the effective date of this act.
14 S 5. This act shall take effect on the ninetieth day after it shall
15 have become a law.