Bill Text: NY S07307 | 2017-2018 | General Assembly | Introduced

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Bill Title: Requires automobile brokers to be licensed; clarifies the role of manufacturers and distributors.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2018-04-18 - SIGNED CHAP.28 [S07307 Detail]

Download: New_York-2017-S07307-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          7307
                    IN SENATE
                                     January 5, 2018
                                       ___________
        Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
        AN ACT to amend the general business law and  the  vehicle  and  traffic
          law,  in  relation to requiring automobile brokers to be licensed; and
          to amend a chapter of the laws of 2017, amending the general  business
          law  and  the vehicle and traffic law relating to requiring automobile
          brokers to be licensed, as proposed in legislative  bills  numbers  S.
          5380-B and A.  6884-B, in relation to manufacturers and distributors
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subdivision 1 of section 736 of the general  business  law,
     2  as  amended by a chapter of the laws of 2017, amending the general busi-
     3  ness law and the vehicle and traffic law relating to  requiring  automo-
     4  bile brokers to be licensed, as proposed in legislative bills numbers S.
     5  5380-B and A. 6884-B, is amended to read as follows:
     6    1.  "Automobile  broker  business"  means  any  person who, for a fee,
     7  commission or other valuable consideration, regardless of  whether  such
     8  fee, commission, or consideration is paid directly by a consumer, offers
     9  to  provide,  provides,  or  represents  that  he  or she will provide a
    10  service of purchasing, arranging, assisting, facilitating  or  effecting
    11  the purchase or lease of an automobile as agent, broker, or intermediary
    12  for a consumer. "Automobile broker business" does not include any person
    13  registered  as  a  dealer pursuant to article sixteen of the vehicle and
    14  traffic law nor any bona fide employee  of  a  registered  dealer  while
    15  acting  for  such  dealer,  or  any person who sells, offers for sale or
    16  lease or acts as agent, broker or intermediary in effecting the purchase
    17  or lease of three or fewer automobiles in any  calendar  year[,  or  any
    18  motor  vehicle franchisor, manufacturer, or distributor registered under
    19  article sixteen of the vehicle and traffic law who sells or  leases  new
    20  motor  vehicles  to  employees,  immediate  family members of employees,
    21  retirees, or immediate family members of retirees as authorized by para-
    22  graph (y) of subdivision two of section four hundred sixty-three of  the
    23  vehicle and traffic law], any national service which aggregates informa-
    24  tion  for consumers, but does not otherwise have contact with consumers,
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10395-08-8
        S. 7307                             2
     1  or any motor vehicle franchisor, manufacturer, or distributor registered
     2  under article sixteen of the vehicle and traffic law.
     3    §  2. Paragraph e of subdivision 1 of section 738 of the general busi-
     4  ness law, as amended by a chapter of the  laws  of  2017,  amending  the
     5  general business law and the vehicle and traffic law relating to requir-
     6  ing  automobile brokers to be licensed, as proposed in legislative bills
     7  numbers S. 5380-B and A.  6884-B, is amended to read as follows:
     8    (e) A description of any other services  and  an  itemization  of  the
     9  charges for each. Such description shall include disclosure of the auto-
    10  mobile  dealer  from  which the automobile was purchased [or leased], as
    11  well as all fees, commissions or other valuable considerations  paid  by
    12  an  automobile  dealer  to  the  automobile broker business for selling,
    13  arranging, assisting or effecting the sale [or lease] of  an  automobile
    14  as  agent,  broker, or intermediary between the consumer and the automo-
    15  bile dealer.
    16    § 3. The opening paragraph of subdivision 1  of  section  738  of  the
    17  general  business  law,  as added by chapter 616 of the laws of 1988, is
    18  amended and a new subdivision 4 is added to read as follows:
    19    Every contract between a consumer and an  automobile  broker  business
    20  for  the  purchase of an automobile shall be in writing, shall be dated,
    21  shall contain the street address of the automobile broker  business  and
    22  the  consumer  and shall be signed by the consumer and by the automobile
    23  broker business. Every contract shall comply with the  requirements  set
    24  forth in this section and contain the following:
    25    4.  An  automobile  broker  business  in any transaction involving the
    26  lease of a vehicle shall provide the retail lessee with a  retail  lease
    27  agreement  as  provided for in section three hundred thirty-seven of the
    28  personal property law. The automobile broker  shall  provide  a  written
    29  disclosure  of  the amount of any fee, commission or other consideration
    30  paid or expected to be paid by the lessor to the automobile broker busi-
    31  ness in connection with a transaction involving the lease of a  vehicle.
    32  Such  disclosure  shall  be  signed by the retail lessee. The automobile
    33  broker business shall provide the retail lessee with a  signed  copy  of
    34  such  disclosure  together  with  the  retail lease agreement referenced
    35  herein.
    36    § 4. The general business law is amended by adding a new section 741-b
    37  to read as follows:
    38    § 741-b. Disclosure. An automobile broker  business  shall  provide  a
    39  disclosure at the time such automobile broker business takes an order to
    40  search  for a leased vehicle meeting the prospective lessee's specifica-
    41  tions.  Such disclosure shall provide the amount of  any  fees,  commis-
    42  sions  or  other  valuable  consideration the automobile broker business
    43  expects to receive, if known, from a dealer, lessor or any other  person
    44  or  entity for any assistance the automobile broker business provides in
    45  effecting the lease transaction. If the amount of any such fees, commis-
    46  sions or other valuable consideration  the  automobile  broker  business
    47  expects  to  receive  is unknown at the time of the required disclosure,
    48  the automobile broker business shall disclose:  (a)  whether  it  has  a
    49  contract  with  any dealer, lessor or any other person or entity for the
    50  provision of assistance in effecting a lease transaction; and (b) wheth-
    51  er the automobile broker business may  be  compensated  by  the  dealer,
    52  lessor  or  any  other  person or entity for any assistance in effecting
    53  such lease transaction.
    54    § 5.  Subdivision 6 of section 415 of the vehicle and traffic law,  as
    55  amended  by  section 1-b of part A of chapter 63 of the laws of 2005, is
    56  amended to read as follows:
        S. 7307                             3
     1    6. Fees. Every original application  for  registration  as  a  dealer,
     2  automobile  broker or transporter shall be accompanied by an application
     3  fee of thirty-seven dollars and fifty cents, which shall in no event  be
     4  refunded. The annual fee for registration as a dealer, automobile broker
     5  or  transporter  or for renewal thereof shall be two hundred twenty-five
     6  dollars. The annual fee for any other registration  under  this  section
     7  shall   be   fifty  dollars.  However,  the  commissioner  may,  in  his
     8  discretion, issue a renewal of either registration for a period  of  two
     9  years. The fee for a two-year renewal shall be twice the annual fee. The
    10  annual  fee  for  dealer  or  transporter  number plates shall be twenty
    11  dollars for each set. If the commissioner issues to dealers  a  document
    12  which  is required to be used by a dealer to sell or transfer a vehicle,
    13  the fee for the issuance of each such document shall  be  five  dollars.
    14  There  shall  be no refund of registration fee or fees for number plates
    15  in the event of suspension,  revocation  or  voluntary  cancellation  of
    16  registration.  The  fee  for  any  such  transfer document issued by the
    17  commissioner shall be refunded only upon the surrender of such  document
    18  upon voluntary cancellation of registration.
    19    §  6.  Subdivision 6 of section 415 of the vehicle and traffic law, as
    20  amended by chapter 7 of the laws of 2000, is amended to read as follows:
    21    6. Fees. Every original application  for  registration  as  a  dealer,
    22  automobile  broker or transporter shall be accompanied by an application
    23  fee of twenty-five dollars, which shall in no  event  be  refunded.  The
    24  annual  fee for registration as a dealer, automobile broker or transpor-
    25  ter or for renewal thereof shall be one hundred fifty dollars. The annu-
    26  al fee for any other registration under  this  section  shall  be  fifty
    27  dollars.  However,  the  commissioner  may,  in  his discretion, issue a
    28  renewal of either registration for a period of two years. The fee for  a
    29  two-year renewal shall be twice the annual fee. The annual fee for deal-
    30  er or transporter number plates shall be twenty dollars for each set. If
    31  the  commissioner  issues  to dealers a document which is required to be
    32  used by a dealer to sell or transfer a vehicle, the fee for the issuance
    33  of each such document shall be one dollar. There shall be no  refund  of
    34  registration  fee  or fees for number plates in the event of suspension,
    35  revocation or voluntary cancellation of registration. The  fee  for  any
    36  such transfer document issued by the commissioner shall be refunded only
    37  upon  the  surrender  of  such  document  upon voluntary cancellation of
    38  registration.
    39    § 7. A chapter of the laws of 2017, amending the general business  law
    40  and the vehicle and traffic law relating to requiring automobile brokers
    41  to  be  licensed, as proposed in legislative bills numbers S. 5380-B and
    42  A. 6884-B, is amended by adding a new section 9-a to read as follows:
    43    § 9-a. Nothing contained within this act shall be deemed  to  grant  a
    44  manufacturer  or  distributor  the  ability to do anything that would be
    45  prohibited under article 16 or article 17-A of the vehicle  and  traffic
    46  law.
    47    §  8.  This  act  shall  take  effect on the same date and in the same
    48  manner as a chapter of the laws of 2017, amending the  general  business
    49  law  and  the  vehicle  and traffic law relating to requiring automobile
    50  brokers to be licensed, as proposed  in  legislative  bills  numbers  S.
    51  5380-B  and  A.  6884-B,  takes  effect; provided that the amendments to
    52  subdivision 6 of section 415 of the vehicle  and  traffic  law  made  by
    53  section  five  of this act shall be subject to the expiration and rever-
    54  sion of such subdivision pursuant to section 13 of part U1 of chapter 62
    55  of the laws of 2003, as amended, when upon such date the  provisions  of
    56  section six of this act shall take effect.