Bill Text: NY S01956 | 2019-2020 | General Assembly | Introduced

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Bill Title: Grants the department of financial services jurisdiction over the financing of motor vehicles; requires motor vehicle dealer finance managers to be licensed by the department of financial services.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO CONSUMER PROTECTION [S01956 Detail]

Download: New_York-2019-S01956-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          1956
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 18, 2019
                                       ___________
        Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Banks
        AN ACT to amend the financial services law, in relation to the jurisdic-
          tion of the department of financial services  over  the  financing  of
          motor  vehicles; and to amend the vehicle and traffic law, in relation
          to the licensing of motor vehicle dealer finance managers
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Subparagraph  (B)  of  paragraph  2  of subsection (a) of
     2  section 104 of the financial services law is amended to read as follows:
     3    (B) "Financial product or service" shall also not include the  follow-
     4  ing,  when  offered  or  provided  by  a  provider  of consumer goods or
     5  services:  (i) the extension of credit directly to a consumer exclusive-
     6  ly for the purpose of enabling that consumer to purchase  such  consumer
     7  good  or  service  directly from the seller, (ii) the collection of debt
     8  arising from such credit, or (iii) the sale or conveyance of  such  debt
     9  that is delinquent or otherwise in default.  Provided, however, that the
    10  provisions  of  this  subparagraph  shall not apply to the sale of motor
    11  vehicles. Every sale of a motor vehicle that involves financing, whether
    12  originated at a motor vehicle dealer or at a lending institution,  shall
    13  be deemed to be a "financial product or service" within the jurisdiction
    14  of the department.
    15    §  2.  The  opening paragraph of section 205 of the financial services
    16  law is designated subsection (a) and a new subsection (b)  is  added  to
    17  read as follows:
    18    (b)  The  superintendent  may,  in  his or her discretion, establish a
    19  motor vehicle financing bureau, and to promulgate any and all rules  and
    20  regulations  necessary  to regulate motor vehicle financing transactions
    21  and motor vehicle dealer financing departments.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05528-01-9
        S. 1956                             2
     1    § 3. Paragraphs 6 and 7 of subsection (c) of section 301 of the finan-
     2  cial services law are amended and four new paragraphs 8, 9,  10  and  11
     3  are added to read as follows:
     4    (6)  providing  technical assistance to local governments and not-for-
     5  profits in the development of consumer protection measures with  respect
     6  to financial products and services; [and]
     7    (7)   continuing   and  expanding  the  detection,  investigation  and
     8  prevention of insurance fraud[.];
     9    (8) promulgating  rules  and  regulations  for  motor  vehicle  dealer
    10  finance departments and finance managers;
    11    (9) establishing educational materials and/or mandated instruction for
    12  motor vehicle dealer finance managers applying for licensing pursuant to
    13  paragraph  d of subdivision three of section four hundred fifteen of the
    14  vehicle and traffic  law.  No  such  mandate  instruction  shall  exceed
    15  sixteen hours during any biennial licensing period;
    16    (10)  imposing  a  licensing  and  course fee for motor vehicle dealer
    17  finance manager applicants pursuant to paragraph d of subdivision  three
    18  of section four hundred fifteen of the vehicle and traffic law; provided
    19  that  such  fee  shall  not exceed two hundred dollars for each biennial
    20  licensing period; and
    21    (11) establishing and imposing penalties, and license suspensions  and
    22  revocations  for  violations  by motor vehicle dealers and motor vehicle
    23  dealer finance managers.
    24    § 4. Subdivision 3 of section 415 of the vehicle and  traffic  law  is
    25  amended by adding a new paragraph d to read as follows:
    26    d.  (i)  Every dealer which sells motor vehicles that are financed, or
    27  which facilitates in any manner the financing of  the  purchase  of  any
    28  motor  vehicle,  shall  act  as  or  employ  an individual to act as the
    29  finance manager for  such  dealer,  and  every  such  manager  shall  be
    30  licensed by the department of financial services.
    31    (ii)  Every  licensed finance manager shall have completed such course
    32  of instruction as shall be established by the  department  of  financial
    33  services.
    34    §  5.  This  act  shall  take effect on the two hundred seventieth day
    35  after it shall have become a law.