Bill Text: NY A04298 | 2011-2012 | General Assembly | Amended


Bill Title: Relates to the definition and registration of mobility dealers.

Spectrum: Moderate Partisan Bill (Democrat 11-2)

Status: (Introduced - Dead) 2012-06-15 - print number 4298d [A04298 Detail]

Download: New_York-2011-A04298-Amended.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        4298--D
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 3, 2011
                                      ___________
       Introduced  by  M.  of A. PERRY, REILICH, ROBINSON, WEISENBERG -- Multi-
         Sponsored by -- M. of A. ABINANTI, GIBSON, HIKIND, McDONOUGH, MILLMAN,
         ORTIZ, P. RIVERA, SWEENEY, TITUS -- read  once  and  referred  to  the
         Committee  on  Transportation  --  committee discharged, bill amended,
         ordered reprinted as amended and  recommitted  to  said  committee  --
         again  reported from said committee with amendments, ordered reprinted
         as amended and recommitted to said committee --  again  reported  from
         said  committee  with  amendments,  ordered  reprinted  as amended and
         recommitted to said committee -- reported and referred to the  Commit-
         tee  on Codes -- committee discharged, bill amended, ordered reprinted
         as amended and recommitted to said committee
       AN ACT to amend the vehicle and traffic law  and  the  general  business
         law, in relation to mobility dealers
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Paragraphs a, f and i of subdivision 1 of  section  415  of
    2  the  vehicle  and  traffic  law,  as amended by chapter 7 of the laws of
    3  2000, are amended and three new paragraphs k, l  and m are added to read
    4  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  OR HER, if such vehicles were purchased, acquired or otherwise  obtained
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04356-07-2
       A. 4298--D                          2
    1  by  such person for the purpose of resale, will be regarded as a dealer.
    2  Except as otherwise provided in subdivisions  three,  five,  six-b,  and
    3  seven  of  this  section,  the  term "dealer" shall include a "new motor
    4  vehicle  dealer"  as  defined  by  paragraph f of this subdivision and a
    5  "qualified dealer" as defined in paragraph g of this subdivision.
    6    f. "New motor vehicle dealer" means a dealer who engages in the activ-
    7  ities described in paragraph a of this subdivision  if  such  activities
    8  relate to new motor vehicles and if such dealer is party to a franchise,
    9  as  the terms "new motor vehicle" and "franchise" are defined in section
   10  four hundred sixty-two of this title; provided, however, for purposes of
   11  this definition, a new motor vehicle  shall  include  only  those  motor
   12  vehicles  commonly  classified  as a passenger automobile, sport utility
   13  vehicle, light truck, pickup truck, van, minivan, or  suburban,  with  a
   14  gross  vehicle  weight  rating of ten thousand pounds or less, and shall
   15  not include (i) any such vehicle which has been converted for use  as  a
   16  tow  truck[,]  or  (ii)  a motor vehicle for which the current ownership
   17  document is a statement of acquisition issued pursuant to  section  four
   18  hundred  twenty-nine  of  this  title,  a  salvage  certificate, salvage
   19  certificate of title, nonrepairable  certificate,  or  similar  document
   20  issued by any state or jurisdiction; or (iii) any motor vehicle commonly
   21  classified  as  a  bus,  school  bus, garbage truck, marine trailer, tow
   22  truck, motorcycle, recreational  vehicle,  snowmobile,  trailer,  mobile
   23  home  or construction equipment; and provided further that a dealer is a
   24  new motor vehicle dealer only with respect to those vehicles  which  are
   25  of  the  same  make  as those which that dealer is authorized to sell at
   26  that location pursuant to a valid franchise agreement.
   27    i. "Used motor vehicle" means any vehicle not included  in  the  defi-
   28  nition of a new motor vehicle. Provided, however, that such term as used
   29  in  paragraph g of this subdivision shall include only those motor vehi-
   30  cles commonly classified as a passenger automobile, sport utility  vehi-
   31  cle,  light truck, pick up truck, van, minivan or suburban, with a gross
   32  vehicle weight rating of ten thousand pounds or less, which (i)  is  not
   33  deemed  to  be  a  "new  motor  vehicle" pursuant to paragraph h of this
   34  subdivision, or (ii) has not been converted for use as a  tow  truck  OR
   35  MOBILITY  VEHICLE,  or (iii) is not commonly classified as a bus, school
   36  bus, garbage truck, marine trailer, tow truck, motorcycle,  recreational
   37  vehicle, snowmobile, trailer, mobile home, or construction equipment.
   38    K.  (I)  "MOBILITY  DEALER"  MEANS  A  PERSON WHO DISPLAYS FOR SALE OR
   39  ADVERTISES FOR SALE MORE THAN FIVE MOBILITY  VEHICLES  IN  ANY  CALENDAR
   40  YEAR  OR  WHO  DISPLAYS OR PERMITS THE DISPLAY OF THREE OR MORE MOBILITY
   41  VEHICLES AT ANY ONE TIME OR WITHIN ANY ONE CALENDAR MONTH UPON  PREMISES
   42  OWNED  OR  CONTROLLED BY HIM OR HER, REGARDLESS OF THE OWNERSHIP OF SUCH
   43  MOBILITY VEHICLES.
   44    (II) MOBILITY DEALER DOES NOT INCLUDE ANY OF THE FOLLOWING:
   45    (A) RECEIVERS, TRUSTEES, ADMINISTRATORS, EXECUTORS, GUARDIANS OR OTHER
   46  PERSONS APPOINTED BY OR ACTING UNDER THE JUDGMENT OR ORDER OF ANY COURT;
   47    (B) PUBLIC OFFICERS WHILE PERFORMING THEIR OFFICIAL DUTIES;
   48    (C) PERSONS DISPOSING OF MOTOR VEHICLES ACQUIRED FOR THEIR OWN USE  OR
   49  FOR  THE USE OF A FAMILY MEMBER, AND ACTUALLY SO USED, WHEN THE VEHICLES
   50  HAVE BEEN ACQUIRED AND USED IN GOOD FAITH AND NOT FOR  THE  PURPOSES  OF
   51  AVOIDING THE PROVISIONS OF THIS SECTION;
   52    (D) FINANCIAL INSTITUTIONS WHO SELL REPOSSESSED MOBILITY VEHICLES;
   53    (E)  INSURANCE  COMPANIES  WHO  RESELL  MOBILITY  VEHICLES  THAT  THEY
   54  ACQUIRED IN THE COURSE OF BUSINESS.
   55    L. "MOBILITY EQUIPMENT" MEANS MECHANICAL OR ELECTRONIC DEVICES,  PARTS
   56  OR  ACCESSORIES  SPECIFICALLY  DESIGNED TO FACILITATE THE USE OF A MOTOR
       A. 4298--D                          3
    1  VEHICLE BY AN AGING OR DISABLED PERSON AS INTERPRETED  BY  THE  NATIONAL
    2  HIGHWAY TRAFFIC SAFETY ADMINISTRATION AND WHICH ARE PERMANENTLY ATTACHED
    3  TO OR INCORPORATED IN THE VEHICLE.
    4    M. "MOBILITY VEHICLE" MEANS A MOTOR VEHICLE THAT IS SPECIALLY DESIGNED
    5  AND  EQUIPPED TO TRANSPORT A PERSON WITH A DISABILITY (AS INTERPRETED BY
    6  THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION) AND THAT:
    7    (I) IS DESIGNED AND BUILT OR MODIFIED TO  ALLOW  VEHICLE  INGRESS  AND
    8  EGRESS FOR A PERSON IN A WHEELCHAIR OR SCOOTER; AND
    9    (II) CONTAINS AT LEAST ONE OF THE FOLLOWING:
   10    (A)  AN ELECTRONIC OR MECHANICAL WHEELCHAIR, SCOOTER, OR PLATFORM LIFT
   11  THAT ENABLES A PERSON TO ENTER OR EXIT THE  VEHICLE  WHILE  OCCUPYING  A
   12  WHEELCHAIR OR SCOOTER;
   13    (B) AN ELECTRONIC OR MECHANICAL WHEELCHAIR RAMP; OR
   14    (C)  A  SYSTEM TO SECURE A WHEELCHAIR OR SCOOTER TO ALLOW FOR A PERSON
   15  TO BE SAFELY TRANSPORTED WHILE OCCUPYING THE WHEELCHAIR OR SCOOTER, THAT
   16  IS INSTALLED AS AN INTEGRAL PART OR PERMANENT ATTACHMENT  TO  THE  MOTOR
   17  VEHICLE'S CHASSIS.
   18    S 2. The opening paragraph and paragraph c of subdivision 3 of section
   19  415  of the vehicle and traffic law, as amended by chapter 7 of the laws
   20  of 2000, are amended and a  new  paragraph  b-1  is  added  to  read  as
   21  follows:
   22    Registration of new motor vehicle dealers, MOBILITY DEALERS, qualified
   23  dealers, and other motor vehicle dealers.
   24    B-1.  NO  PERSON  SHALL  ENGAGE  IN  BUSINESS AS A MOBILITY DEALER, OR
   25  REPRESENT, ADVERTISE, OR  OTHERWISE  HOLD  HIMSELF  OR  HERSELF  OUT  AS
   26  ENGAGED  OR INTENDING TO ENGAGE IN THE BUSINESS OF DISPLAYING, ADVERTIS-
   27  ING OR INVENTORYING NEW MOBILITY VEHICLES IN THIS  STATE,  UNLESS  THERE
   28  SHALL  HAVE BEEN ISSUED TO HIM OR HER A CERTIFICATE OF REGISTRATION AS A
   29  MOBILITY DEALER AS PROVIDED IN THIS SUBDIVISION AND SUBDIVISION SEVEN OF
   30  THIS SECTION. PROVIDED, HOWEVER, THAT A  REGISTERED  NEW  MOTOR  VEHICLE
   31  DEALER  OR QUALIFIED DEALER MAY ENGAGE IN BUSINESS AS A MOBILITY DEALER,
   32  OR REPRESENT, ADVERTISE, OR OTHERWISE HOLD HIMSELF  OR  HERSELF  OUT  AS
   33  ENGAGED  OR  INTENDING TO ENGAGE IN THE BUSINESS OF SELLING, DISPLAYING,
   34  OFFERING, ADVERTISING OR INVENTORYING MOBILITY VEHICLES IN  THIS  STATE,
   35  WITHOUT  HAVING  BEEN ISSUED TO HIM OR HER A CERTIFICATE OF REGISTRATION
   36  AS A MOBILITY DEALER.
   37    c. The issuance of such certificate of registration  to  a  new  motor
   38  vehicle dealer, a qualified dealer, MOBILITY DEALER or other motor vehi-
   39  cle  dealer  shall be deemed to include the right to operate motor vehi-
   40  cles, motorcycles and trailers to the extent  permitted  by  subdivision
   41  eight  of  this  section,  instead  of obtaining vehicle registration as
   42  provided by sections four hundred one  and  four  hundred  ten  of  this
   43  title. The provisions of this section shall not apply to persons engaged
   44  in the business of buying, selling or dealing in snowmobiles and/or snow
   45  travellers.
   46    S  3.  The  opening  paragraph  and  paragraph a of subdivision 6-b of
   47  section 415 of the vehicle and traffic law, as amended by chapter  7  of
   48  the  laws  of 2000, and paragraph a as further amended by section 104 of
   49  part A of chapter 62 of the  laws  of  2011,  are  amended  to  read  as
   50  follows:
   51    Dealer, qualified dealer, MOBILITY DEALER, and new motor vehicle deal-
   52  er  surety bond.   a. As a condition to obtaining a registration certif-
   53  icate pursuant to this section, every new motor vehicle dealer applicant
   54  [and], every qualified dealer applicant AND EVERY MOBILITY DEALER APPLI-
   55  CANT shall obtain and continue in effect a surety bond in an  amount  of
   56  fifty thousand dollars executed by a surety company authorized to trans-
       A. 4298--D                          4
    1  act business in the state by the department of financial services of the
    2  state.  As  a condition to obtaining a registration certificate pursuant
    3  to this section, EVERY MOBILITY DEALER APPLICANT AND every dealer appli-
    4  cant  who  is  applying  for  a  registration  certificate  in the first
    5  instance or who sold two hundred motor vehicles or fewer in the previous
    6  calendar year shall obtain and continue in effect a surety  bond  in  an
    7  amount  of  ten thousand dollars executed by a surety company authorized
    8  to transact business  in  the  state  by  the  department  of  financial
    9  services  of  the  state.  As  a  condition  of obtaining a registration
   10  certificate pursuant to this section, every dealer  applicant  who  sold
   11  more than two hundred motor vehicles in the previous calendar year shall
   12  obtain  and continue in effect a surety bond in an amount of twenty-five
   13  thousand dollars executed by a surety  company  authorized  to  transact
   14  business  in  the  state  by the department of financial services of the
   15  state. The bonds shall be approved as to form by  the  commissioner  and
   16  shall  be conditioned on the new motor vehicle dealer's, qualified deal-
   17  er's, and dealer's: payment of all valid bank drafts, including  checks,
   18  drawn  by  such  dealer  for the purchase of motor vehicles; transfer of
   19  good title to each motor vehicle such dealer sells; safekeeping  of  all
   20  customer  deposits  related  to  the sale of a motor vehicle between the
   21  time of receipt of such customer deposit and the transfer of good  title
   22  to  the  vehicle to the customer; payment for all fines imposed upon the
   23  new motor vehicle dealer, qualified dealer, or dealer by the commission-
   24  er pursuant to the provisions of this chapter; and such dealer's  repay-
   25  ment  of  any  overcharges  of a customer by such dealer for the vehicle
   26  registration and titling charges payable to the commissioner for  regis-
   27  tering and titling the sold vehicle.
   28    S  4.  Paragraph  c of subdivision 7 of section 415 of the vehicle and
   29  traffic law, as amended by chapter 7 of the laws of 2000, is amended and
   30  a new paragraph b-1 is added to read as follows:
   31    B-1. REGISTRATION CERTIFICATES FOR MOBILITY DEALERS. (I)  APPLICATION.
   32  IF A PERSON MAKES APPLICATION, UNDER PENALTY OF PERJURY, FOR A REGISTRA-
   33  TION  CERTIFICATE  AS  A MOBILITY DEALER, THE COMMISSIONER SHALL ISSUE A
   34  REGISTRATION AS A MOBILITY DEALER TO SUCH DEALER  UPON  PAYMENT  OF  THE
   35  PRESCRIBED  FEE  AND  ANY REQUIREMENTS THE COMMISSIONER MAY PRESCRIBE BY
   36  REGULATION.
   37    (II) RIGHTS OF MOBILITY DEALERS.  NOTWITHSTANDING  ANY  OTHER  LAW  OR
   38  RULE,  A  PERSON  HOLDING  A  MOBILITY DEALER CERTIFICATE SHALL HAVE THE
   39  RIGHT TO:
   40    (A) DISPLAY, INVENTORY, ADVERTISE, SOLICIT, OR DEMONSTRATE ANY MOBILI-
   41  TY VEHICLE, REGARDLESS OF THE CHASSIS MAKE OF THE MOBILITY VEHICLE,  AND
   42  REGARDLESS  OF  WHETHER  OWNERSHIP OF SUCH MOBILITY VEHICLE IS HELD BY A
   43  NEW MOTOR VEHICLE DEALER INSIDE OR OUTSIDE THIS STATE;
   44    (B)  ARRANGE,  NEGOTIATE,  AND/OR  ASSIST  CONSUMERS  AS  REGARDS  THE
   45  PURCHASE OF ANY MOBILITY VEHICLE;
   46    (C)  SELL  AND  INSTALL  MOBILITY  EQUIPMENT AND ACCESSORIES AND OTHER
   47  GOODS AND SERVICES TO MEET THE NEEDS PARTICULAR TO DISABLED DRIVERS  AND
   48  PASSENGERS;
   49    (D) PROVIDE MOBILITY VEHICLE MAINTENANCE AND REPAIR SERVICES.
   50    (III)  PROHIBITIONS.  NOTWITHSTANDING  ANY OTHER LAW OR RULE, A PERSON
   51  HOLDING A MOBILITY DEALER  CERTIFICATE  SHALL  NOT  HAVE  THE  RIGHT  TO
   52  PERFORM  REPAIRS  ON  MOBILITY VEHICLES OR OTHER MOTOR VEHICLES, WITHOUT
   53  OBTAINING A LICENSE AS A REPAIR SHOP PURSUANT  TO  ARTICLE  TWELVE-A  OF
   54  THIS  CHAPTER,  HOWEVER,  A  MOBILITY DEALER MAY, WITHOUT OBTAINING SUCH
   55  LICENSE, PERFORM REPAIRS ON PARTS WHICH ARE UNIQUE TO MOBILITY  VEHICLES
   56  AND WERE NOT PART OF THE ORIGINAL MANUFACTURED MOTOR VEHICLE.
       A. 4298--D                          5
    1    (IV)  REGULATIONS BY THE COMMISSIONER. THE COMMISSIONER SHALL HAVE THE
    2  POWER TO PROMULGATE SUCH  REGULATIONS  AS  ARE  NECESSARY  TO  IMPLEMENT
    3  MOBILITY  DEALER  REGISTRATION  AND ESTABLISH REASONABLE AND APPROPRIATE
    4  QUALIFICATIONS FOR SUCH DEALERS.
    5    c.  Registration  certificate for other than new motor vehicle dealer,
    6  MOBILITY DEALER or qualified dealer. If the  commissioner  approves  the
    7  application  of an applicant for a registration certificate other than a
    8  new motor vehicle dealer certificate or a qualified dealer  certificate,
    9  upon payment of the prescribed fee, he or she shall issue a registration
   10  certificate in such form as he or she may prescribe.
   11    S  5. Section 198-a of the general business law is amended by adding a
   12  new subdivision (p) to read as follows:
   13    (P) THIS SECTION SHALL NOT APPLY TO MOBILITY EQUIPMENT AS  DEFINED  IN
   14  SUBDIVISION ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAF-
   15  FIC LAW.
   16    S  6. Section 198-b of the general business law is amended by adding a
   17  new subdivision h to read as follows:
   18    H. THIS SECTION SHALL NOT APPLY TO MOBILITY EQUIPMENT  AS  DEFINED  IN
   19  SUBDIVISION ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAF-
   20  FIC LAW.
   21    S 7. This act shall take effect on the one hundred twentieth day after
   22  it shall have become a law.
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