S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5740
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 23, 2023
                                ___________
 
 Introduced  by  M.  of  A. J. M. GIGLIO -- read once and referred to the
   Committee on Transportation
 
 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:

   Section 1. Paragraphs f and i of subdivision 1 of section 415  of  the
 vehicle  and traffic law, as amended by chapter 554 of the laws of 2015,
 are amended and two new paragraphs n and o are added to read as follows:
   f. "New motor vehicle dealer" means a dealer who engages in the activ-
 ities described in paragraph a of this subdivision  if  such  activities
 relate to new motor vehicles and if such dealer is party to a franchise,
 as  the terms "new motor vehicle" and "franchise" are defined in section
 four hundred sixty-two of this title; provided, however, for purposes of
 this definition, a new motor vehicle  shall  include  only  those  motor
 vehicles  commonly  classified  as a passenger automobile, sport utility
 vehicle, light truck, pickup truck, van, minivan, or  suburban,  with  a
 gross  vehicle  weight  rating of ten thousand pounds or less, and shall
 not include (i) any such vehicle which has been converted for use  as  a
 tow truck, or (ii) a motor vehicle for which the current ownership docu-
 ment  is  a  statement  of  acquisition  issued pursuant to section four
 hundred twenty-nine  of  this  title,  a  salvage  certificate,  salvage
 certificate  of  title,  nonrepairable  certificate, or similar document
 issued by any state or  jurisdiction[;],  or  (iii)  any  motor  vehicle
 commonly classified as a bus, school bus, garbage truck, marine trailer,
 tow truck, motorcycle, recreational vehicle, snowmobile, trailer, mobile
 home  or construction equipment; and provided further that: (i) a dealer
 is a new motor vehicle dealer only with respect to those vehicles  which
 are of the same make as those which that dealer is authorized to sell at
 that location pursuant to a valid franchise agreement; and (ii) a dealer
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04053-01-3
 A. 5740                             2
              

 
 is  not  acting as a new motor vehicle dealer when displaying, advertis-
 ing, storing and/or demonstrating a new mobility vehicle.
   i.  "Used  motor  vehicle" means any vehicle not included in the defi-
 nition of a new motor vehicle. Provided, however, that such term as used
 in paragraph g of this subdivision shall include only those motor  vehi-
 cles  commonly classified as a passenger automobile, sport utility vehi-
 cle, light truck, pick up truck, van, minivan or suburban, with a  gross
 vehicle  weight  rating of ten thousand pounds or less, which (i) is not
 deemed to be a "new motor vehicle"  pursuant  to  paragraph  h  of  this
 subdivision,  or  (ii)  has not been converted for use as a tow truck OR
 MOBILITY VEHICLE, or (iii) is not commonly classified as a  bus,  school
 bus,  garbage truck, marine trailer, tow truck, motorcycle, recreational
 vehicle, snowmobile, trailer, mobile home, or construction equipment.
   N. (I) "MOBILITY DEALER" MEANS A  PERSON  WHO  DISPLAYS  FOR  SALE  OR
 ADVERTISES  FOR  SALE  MORE  THAN FIVE MOBILITY VEHICLES IN ANY CALENDAR
 YEAR OR WHO DISPLAYS OR PERMITS THE DISPLAY OF THREE  OR  MORE  MOBILITY
 VEHICLES  AT ANY ONE TIME OR WITHIN ANY ONE CALENDAR MONTH UPON PREMISES
 OWNED OR CONTROLLED BY HIM OR HER, REGARDLESS OF THE OWNERSHIP  OF  SUCH
 MOBILITY VEHICLES.
   (II) MOBILITY DEALER DOES NOT INCLUDE ANY OF THE FOLLOWING:
   (A) RECEIVERS, TRUSTEES, ADMINISTRATORS, EXECUTORS, GUARDIANS OR OTHER
 PERSONS APPOINTED BY OR ACTING UNDER THE JUDGMENT OR ORDER OF ANY COURT;
   (B) PUBLIC OFFICERS WHILE PERFORMING THEIR OFFICIAL DUTIES;
   (C)  PERSONS DISPOSING OF MOTOR VEHICLES ACQUIRED FOR THEIR OWN USE OR
 FOR THE USE OF A FAMILY MEMBER, AND ACTUALLY SO USED, WHEN THE  VEHICLES
 HAVE  BEEN  ACQUIRED  AND USED IN GOOD FAITH AND NOT FOR THE PURPOSES OF
 AVOIDING THE PROVISIONS OF THIS SECTION;
   (D) FINANCIAL INSTITUTIONS WHO SELL REPOSSESSED MOBILITY VEHICLES;
   (E)  INSURANCE  COMPANIES  WHO  RESELL  MOBILITY  VEHICLES  THAT  THEY
 ACQUIRED IN THE COURSE OF BUSINESS.
   O.  "MOBILITY EQUIPMENT" MEANS MECHANICAL OR ELECTRONIC DEVICES, PARTS
 OR ACCESSORIES SPECIFICALLY DESIGNED TO FACILITATE THE USE  OF  A  MOTOR
 VEHICLE  BY  AN  AGING OR DISABLED PERSON AS INTERPRETED BY THE NATIONAL
 HIGHWAY TRAFFIC SAFETY ADMINISTRATION AND WHICH ARE PERMANENTLY ATTACHED
 TO OR INCORPORATED IN THE VEHICLE.
   § 2. The opening paragraph and paragraph c of subdivision 3 of section
 415 of the vehicle and traffic law, as amended by chapter 7 of the  laws
 of  2000,  are  amended  and  a  new  paragraph  b-1 is added to read as
 follows:
   Registration of new motor vehicle dealers, MOBILITY DEALERS, qualified
 dealers, and other motor vehicle dealers.
   B-1. NO PERSON SHALL ENGAGE IN  BUSINESS  AS  A  MOBILITY  DEALER,  OR
 REPRESENT,  ADVERTISE,  OR  OTHERWISE  HOLD  HIMSELF  OR  HERSELF OUT AS
 ENGAGED OR INTENDING TO ENGAGE IN THE BUSINESS OF DISPLAYING,  ADVERTIS-
 ING  OR  INVENTORYING  NEW MOBILITY VEHICLES IN THIS STATE, UNLESS THERE
 SHALL HAVE BEEN ISSUED TO HIM OR HER A CERTIFICATE OF REGISTRATION AS  A
 MOBILITY DEALER AS PROVIDED IN THIS SUBDIVISION AND SUBDIVISION SEVEN OF
 THIS  SECTION.  PROVIDED,  HOWEVER,  THAT A REGISTERED NEW MOTOR VEHICLE
 DEALER OR QUALIFIED DEALER MAY ENGAGE IN BUSINESS AS A MOBILITY  DEALER,
 OR  REPRESENT,  ADVERTISE,  OR  OTHERWISE HOLD HIMSELF OR HERSELF OUT AS
 ENGAGED OR INTENDING TO ENGAGE IN THE BUSINESS OF  SELLING,  DISPLAYING,
 OFFERING,  ADVERTISING  OR INVENTORYING MOBILITY VEHICLES IN THIS STATE,
 WITHOUT HAVING BEEN ISSUED TO HIM OR HER A CERTIFICATE  OF  REGISTRATION
 AS A MOBILITY DEALER.
   c.  The  issuance  of  such certificate of registration to a new motor
 vehicle dealer, a qualified dealer, MOBILITY DEALER or other motor vehi-
 A. 5740                             3
 
 cle dealer shall be deemed to include the right to operate  motor  vehi-
 cles,  motorcycles  and  trailers to the extent permitted by subdivision
 eight of this section, instead  of  obtaining  vehicle  registration  as
 provided  by  sections  four  hundred  one  and four hundred ten of this
 title. The provisions of this section shall not apply to persons engaged
 in the business of buying, selling or dealing in snowmobiles and/or snow
 travellers.
   § 3. The opening paragraph and  paragraph  a  of  subdivision  6-b  of
 section  415  of  the  vehicle and traffic law, the opening paragraph as
 amended by chapter 7 of the laws of 2000 and paragraph a as  amended  by
 chapter 342 of the laws of 2016, are amended to read as follows:
   Dealer, qualified dealer, MOBILITY DEALER and new motor vehicle dealer
 surety  bond.  a. As a condition to obtaining a registration certificate
 pursuant to this section,  every  new  motor  vehicle  dealer  applicant
 [and], every qualified dealer applicant AND EVERY MOBILITY DEALER APPLI-
 CANT  shall  obtain and continue in effect a surety bond in an amount of
 fifty thousand dollars executed by a surety company authorized to trans-
 act business in the state by the department of financial services of the
 state. As a condition to obtaining a registration  certificate  pursuant
 to this section, EVERY MOBILITY DEALER APPLICANT AND every dealer appli-
 cant  who  is  applying  for  a  registration  certificate  in the first
 instance or who sold fifty motor  vehicles  or  fewer  in  the  previous
 calendar  year  shall  obtain and continue in effect a surety bond in an
 amount of twenty thousand dollars executed by a surety  company  author-
 ized  to  transact  business in the state by the department of financial
 services of the state.  As  a  condition  of  obtaining  a  registration
 certificate  pursuant  to  this section, every dealer applicant who sold
 more than fifty motor vehicles  in  the  previous  calendar  year  shall
 obtain  and continue in effect a surety bond in an amount of one hundred
 thousand dollars executed by a surety  company  authorized  to  transact
 business  in  the  state  by the department of financial services of the
 state. The bonds shall be approved as to form by  the  commissioner  and
 shall  be conditioned on the new motor vehicle dealer's, qualified deal-
 er's, and dealer's: payment of all valid bank drafts, including  checks,
 drawn  by  such  dealer  for the purchase of motor vehicles; transfer of
 good title to each motor vehicle such dealer sells; safekeeping  of  all
 customer  deposits  related  to  the sale of a motor vehicle between the
 time of receipt of such customer deposit and the transfer of good  title
 to  the  vehicle to the customer; payment for all fines imposed upon the
 new motor vehicle dealer, qualified dealer, or dealer by the commission-
 er pursuant to the provisions of this chapter; and such dealer's  repay-
 ment  of  any  overcharges  of a customer by such dealer for the vehicle
 registration and titling charges payable to the commissioner for  regis-
 tering  and  titling  the  sold vehicle. Any such dealer which is bonded
 pursuant to this section prior to the effective date of the  chapter  of
 the  laws  of two thousand sixteen which amended this paragraph shall be
 required to comply  with  the  amendments  made  by  such  chapter  upon
 renewal,  replacement, alteration, or extension of such dealer's current
 surety bond.
   § 4. Paragraph c of subdivision 7 of section 415 of  the  vehicle  and
 traffic law, as amended by chapter 7 of the laws of 2000, is amended and
 a new paragraph b-1 is added to read as follows:
   B-1.  REGISTRATION CERTIFICATES FOR MOBILITY DEALERS. (I) APPLICATION.
 IF A PERSON MAKES APPLICATION, UNDER PENALTY OF PERJURY, FOR A REGISTRA-
 TION CERTIFICATE AS A MOBILITY DEALER, THE COMMISSIONER  SHALL  ISSUE  A
 REGISTRATION  AS  A  MOBILITY  DEALER TO SUCH DEALER UPON PAYMENT OF THE
 A. 5740                             4
 
 PRESCRIBED FEE AND ANY REQUIREMENTS THE COMMISSIONER  MAY  PRESCRIBE  BY
 REGULATION.
   (II)  RIGHTS  OF  MOBILITY  DEALERS.  NOTWITHSTANDING ANY OTHER LAW OR
 RULE, A PERSON HOLDING A MOBILITY  DEALER  CERTIFICATE  SHALL  HAVE  THE
 RIGHT TO:
   (A) DISPLAY, INVENTORY, ADVERTISE, SOLICIT, OR DEMONSTRATE ANY MOBILI-
 TY  VEHICLE, REGARDLESS OF THE CHASSIS MAKE OF THE MOBILITY VEHICLE, AND
 REGARDLESS OF WHETHER OWNERSHIP OF SUCH MOBILITY VEHICLE IS  HELD  BY  A
 NEW MOTOR VEHICLE DEALER INSIDE OR OUTSIDE THIS STATE;
   (B)  ARRANGE,  NEGOTIATE,  AND/OR  ASSIST  CONSUMERS  AS  REGARDS  THE
 PURCHASE OF ANY MOBILITY VEHICLE;
   (C) SELL AND INSTALL MOBILITY  EQUIPMENT  AND  ACCESSORIES  AND  OTHER
 GOODS  AND SERVICES TO MEET THE NEEDS PARTICULAR TO DISABLED DRIVERS AND
 PASSENGERS;
   (D) PROVIDE MOBILITY VEHICLE MAINTENANCE AND REPAIR SERVICES.
   (III) PROHIBITIONS. NOTWITHSTANDING ANY OTHER LAW OR  RULE,  A  PERSON
 HOLDING  A  MOBILITY  DEALER  CERTIFICATE  SHALL  NOT  HAVE THE RIGHT TO
 PERFORM REPAIRS ON MOBILITY VEHICLES OR OTHER  MOTOR  VEHICLES,  WITHOUT
 OBTAINING  A  LICENSE  AS  A REPAIR SHOP PURSUANT TO ARTICLE TWELVE-A OF
 THIS CHAPTER, HOWEVER, A MOBILITY DEALER  MAY,  WITHOUT  OBTAINING  SUCH
 LICENSE,  PERFORM REPAIRS ON PARTS WHICH ARE UNIQUE TO MOBILITY VEHICLES
 AND WERE NOT PART OF THE ORIGINAL MANUFACTURED MOTOR VEHICLE.
   (IV) REGULATIONS BY THE COMMISSIONER. THE COMMISSIONER SHALL HAVE  THE
 POWER  TO  PROMULGATE  SUCH  REGULATIONS  AS  ARE NECESSARY TO IMPLEMENT
 MOBILITY DEALER REGISTRATION AND ESTABLISH  REASONABLE  AND  APPROPRIATE
 QUALIFICATIONS FOR SUCH DEALERS.
   c.  Registration  certificate for other than new motor vehicle dealer,
 MOBILITY DEALER or qualified dealer. If the  commissioner  approves  the
 application  of an applicant for a registration certificate other than a
 new motor vehicle dealer certificate or a qualified dealer  certificate,
 upon payment of the prescribed fee, he or she shall issue a registration
 certificate in such form as he or she may prescribe.
   §  5. Section 198-a of the general business law is amended by adding a
 new subdivision (p) to read as follows:
   (P) THIS SECTION SHALL NOT APPLY TO MOBILITY EQUIPMENT AS  DEFINED  IN
 SUBDIVISION ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAF-
 FIC LAW.
   §  6. Section 198-b of the general business law is amended by adding a
 new subdivision h to read as follows:
   H. THIS SECTION SHALL NOT APPLY TO MOBILITY EQUIPMENT  AS  DEFINED  IN
 SUBDIVISION ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAF-
 FIC LAW.
   § 7. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.