S T A T E O F N E W Y O R K
________________________________________________________________________
S. 2913--A A. 4298--A
Cal. No. 132
2011-2012 Regular Sessions
S E N A T E - A S S E M B L Y
February 3, 2011
___________
IN SENATE -- Introduced by Sens. MAZIARZ, PERKINS -- read twice and
ordered printed, and when printed to be committed to the Committee on
Transportation -- reported favorably from said committee, ordered to
first and second report, ordered to a third reading, amended and
ordered reprinted, retaining its place in the order of third reading
IN ASSEMBLY -- Introduced by M. of A. PERRY, REILICH, ROBINSON, WEISEN-
BERG -- Multi-Sponsored by -- M. of A. ABINANTI, GIBSON, HIKIND,
McDONOUGH, ORTIZ, P. RIVERA -- read once and referred to the Committee
on Transportation -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the vehicle and traffic 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 a, f and i of subdivision 1 of section 415 of
the vehicle and traffic law, as amended by chapter 7 of the laws of
2000, are amended and five new paragraphs k, l, m, n and o are added to
read as follows:
a. "Dealer" means a person engaged in the business of buying, selling
or dealing in motor vehicles, motorcycles or trailers, other than mobile
homes or manufactured homes, at retail or wholesale; except, however,
trailers with an unladen weight of less than one thousand pounds. For
the purposes of this section, a "mobile home" or "manufactured home"
means a mobile home or manufactured home as defined in section one
hundred twenty-two-c of this chapter. Any person who sells, or offers
for sale more than five motor vehicles, motorcycles or trailers in any
calendar year or who displays or permits the display of three or more
motor vehicles, motorcycles or trailers for sale at any one time or
within any one calendar month upon premises owned or controlled by him
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.
LBD04356-02-1
S. 2913--A 2 A. 4298--A
by such person for the purpose of resale, will be regarded as a dealer.
Except as otherwise provided in subdivisions three, five, six-b, and
seven of this section, the term "dealer" shall include a "new motor
vehicle dealer" as defined by paragraph f of this subdivision, A "MOBIL-
ITY DEALER" AS DEFINED BY PARAGRAPH K OF THIS SUBDIVISION, and a "quali-
fied dealer" as defined in paragraph g of this subdivision.
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 MOBILITY VEHICLE or (ii) a motor vehicle for which the
current ownership document is a statement of acquisition issued pursuant
to section four hundred twenty-nine of this title, a salvage certif-
icate, salvage certificate of title, nonrepairable certificate, or simi-
lar 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, MOBILITY VEHICLE, motorcycle, recreational vehicle,
snowmobile, trailer, mobile home or construction equipment; and provided
further that 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 agree-
ment.
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, MOBILITY VEHICLE motor-
cycle, recreational vehicle, snowmobile, trailer, mobile home, or
construction equipment.
K. (I) "MOBILITY DEALER" MEANS A PERSON WHO DISPLAYS FOR SALE, ADVER-
TISES FOR SALE, OR OFFERS FOR SALE MORE THAN FIVE MOBILITY VEHICLES IN
ANY CALENDAR YEAR OR WHO DISPLAYS OR PERMITS THE DISPLAY OF THREE OF
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; OR
(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;
S. 2913--A 3 A. 4298--A
(E) INSURANCE COMPANIES WHO RESELL MOBILITY VEHICLES THAT THEY
ACQUIRED IN THE COURSE OF BUSINESS.
L. "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.
M. "MOBILITY VEHICLE" MEANS A NEW OR USED MOTOR VEHICLE THAT IS
SPECIALLY DESIGNED AND EQUIPPED TO TRANSPORT A PERSON WITH A DISABILITY
(AS INTERPRETED BY THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION)
AND THAT:
(I) IS DESIGNED AND BUILT OR MODIFIED TO ALLOW VEHICLE INGRESS AND
EGRESS FOR A PERSON IN A WHEELCHAIR OR SCOOTER; AND
(II) CONTAINS AT LEAST ONE OF THE FOLLOWING:
(A) AN ELECTRONIC OR MECHANICAL WHEELCHAIR, SCOOTER, OR PLATFORM LIFT
THAT ENABLES A PERSON TO ENTER OR EXIT THE VEHICLE WHILE OCCUPYING A
WHEELCHAIR OR SCOOTER;
(B) AN ELECTRONIC OR MECHANICAL WHEELCHAIR RAMP; OR
(C) A SYSTEM TO SECURE A WHEELCHAIR OR SCOOTER TO ALLOW FOR A PERSON
TO BE SAFELY TRANSPORTED WHILE OCCUPYING THE WHEELCHAIR OR SCOOTER, THAT
IS INSTALLED AS AN INTEGRAL PART OR PERMANENT ATTACHMENT TO THE MOTOR
VEHICLE'S CHASSIS.
N. "NEW MOBILITY VEHICLE" MEANS A MOBILITY VEHICLE THAT IS ALSO A NEW
MOTOR VEHICLE.
O. "USED MOBILITY VEHICLE" MEANS A MOBILITY VEHICLE THAT IS NOT A NEW
MOBILITY VEHICLE.
S 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 SELLING, DISPLAYING,
OFFERING, ADVERTISING OR INVENTORYING 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 SELL-
ING, 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-
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.
S. 2913--A 4 A. 4298--A
S 3. The opening paragraph and paragraph a of subdivision 6-b of
section 415 of the vehicle and traffic law, as amended by chapter 7 of
the laws of 2000, are amended to read as follows:
Dealer, qualified dealer, MOBILITY DEALER, and new motor vehicle deal-
er surety bond. a. As a condition to obtaining a registration certif-
icate pursuant to this section, every new motor vehicle dealer applicant
and every qualified dealer applicant shall obtain and continue in effect
a surety bond in an amount of fifty thousand dollars executed by a sure-
ty company authorized to transact business in the state by the insurance
department of the state. As a condition to obtaining a registration
certificate pursuant to this section, EVERY MOBILITY DEALER APPLICANT
AND every dealer applicant who is applying for a registration certif-
icate in the first instance or who sold two hundred motor vehicles or
fewer in the previous calendar year shall obtain and continue in effect
a surety bond in an amount of ten thousand dollars executed by a surety
company authorized to transact business in the state by the insurance
department of the state. As a condition of obtaining a registration
certificate pursuant to this section, every dealer applicant who sold
more than two hundred motor vehicles in the previous calendar year shall
obtain and continue in effect a surety bond in an amount of twenty-five
thousand dollars executed by a surety company authorized to transact
business in the state by the insurance department 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 dealer'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 commissioner
pursuant to the provisions of this chapter; and such dealer's repayment
of any overcharges of a customer by such dealer for the vehicle regis-
tration and titling charges payable to the commissioner for registering
and titling the sold vehicle.
S 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
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, DEMONSTRATE, SELL, OFFER
FOR SALE OR DELIVER ANY USED MOBILITY VEHICLE;
(B) DISPLAY, INVENTORY, ADVERTISE, SOLICIT, DEMONSTRATE, OR OFFER FOR
SALE ANY NEW MOBILITY VEHICLE, REGARDLESS OF THE CHASSIS MAKE OF THE NEW
MOBILITY VEHICLE, AND REGARDLESS OF WHETHER OWNERSHIP OF SUCH NEW MOBIL-
ITY VEHICLE IS HELD BY A NEW MOTOR VEHICLE DEALER INSIDE OR OUTSIDE THIS
STATE;
(C) ARRANGE, NEGOTIATE, AND/OR ASSIST CONSUMERS AS REGARDS THE
PURCHASE OF ANY MOBILITY VEHICLE;
S. 2913--A 5 A. 4298--A
(D) SELL AND INSTALL MOBILITY EQUIPMENT AND ACCESSORIES AND OTHER
GOODS AND SERVICES TO MEET THE NEEDS OF DISABLED DRIVERS AND PASSENGERS;
(E) PROVIDE MOBILITY VEHICLE MAINTENANCE AND REPAIR SERVICES.
(III) 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.
(IV) INITIAL RETAIL TRANSFER OF TITLE OR OF OWNERSHIP OF NEW MOBILITY
VEHICLE. NOTWITHSTANDING ANY PROVISION OF THIS SUBDIVISION, THE FIRST
TRANSFER OF TITLE OR OF OWNERSHIP OF A NEW MOBILITY VEHICLE TO A
PURCHASER OTHER THAN FOR RESALE MUST BE MADE BY A NEW VEHICLE DEALER,
LICENSED EITHER INSIDE THIS STATE OR OUTSIDE THIS STATE, HOLDING A FRAN-
CHISE AGREEMENT WITH THE MANUFACTURER OF THE CHASSIS MAKE OF THE NEW
MOBILITY VEHICLE.
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.
S 5. This act shall take effect immediately.