S T A T E   O F   N E W   Y O R K
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                                  6433

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                             March 16, 2011
                               ___________

Introduced by M. of A. LIFTON -- read once and referred to the Committee
  on Consumer Affairs and Protection

AN  ACT  to amend the general business law, in relation to requiring the
  deposit, into an escrow account, of certain advance payments  for  the
  restoration of an historical vehicle

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new article
37-B to read as follows:
                              ARTICLE 37-B
                   RESTORATION OF HISTORICAL VEHICLES
SECTION 806. DEFINITIONS.
        807. RESTORATION OF HISTORICAL  VEHICLES;  ESCROW  REQUIRED  FOR
               ADVANCE PAYMENTS.
        808. REMEDIES.
  S 806. DEFINITIONS. AS USED IN THIS ARTICLE:
  1.  "BOAT" MEANS A RESIDENTIAL VESSEL OR PLEASURE VESSEL AS DEFINED IN
SUBDIVISION SIX OF SECTION TWO OF THE NAVIGATION LAW.
  2. "CONSUMER" MEANS A NATURAL PERSON WHO CONTRACTS FOR THE RESTORATION
OF AN HISTORICAL VEHICLE TO ITS ORIGINAL CONDITION AND MANNER OF  OPERA-
TION  OR  TO  A  CONDITION  THAT REASONABLY APPEARS TO BE SUCH VEHICLE'S
ORIGINAL CONDITION AND MANNER OF OPERATION.
  3. "HISTORICAL VEHICLE" MEANS A BOAT, MOTOR VEHICLE OR MOTORCYCLE THAT
WAS MANUFACTURED MORE THAN TWENTY-FIVE YEARS PRIOR TO THE CURRENT CALEN-
DAR YEAR, AND ANY OTHER MODEL, YEAR AND TYPE OF BOAT, MOTOR  VEHICLE  OR
MOTORCYCLE  WHICH  HAS UNIQUE CHARACTERISTICS AND WHICH IS DETERMINED BY
THE COMMISSIONER OF MOTOR VEHICLES TO BE OF HISTORICAL, CLASSIC OR EXHI-
BITION VALUE.
  4. "MOTORCYCLE" SHALL HAVE THE SAME MEANING AS  IS  ASCRIBED  TO  SUCH
TERM BY SECTION ONE HUNDRED TWENTY-THREE OF THE VEHICLE AND TRAFFIC LAW.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10010-01-1

              

A. 6433                             2

  5.  "MOTOR VEHICLE" SHALL HAVE THE SAME MEANING AS IS ASCRIBED TO SUCH
TERM BY SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW.
  S 807. RESTORATION OF HISTORICAL VEHICLES; ESCROW REQUIRED FOR ADVANCE
PAYMENTS.  1.  ALL  MONIES  PAID  BY  A CONSUMER TO ANY PERSON OR ENTITY
ENGAGED IN THE BUSINESS OF THE RESTORATION OF HISTORICAL MOTOR  VEHICLES
SHALL BE TRUST FUNDS IN POSSESSION OF SUCH PERSON OR ENTITY AND SHALL BE
DEPOSITED BY IT, WITHIN FIVE DAYS OF RECEIPT THEREOF, IN AN ACCOUNT IN A
BANKING ORGANIZATION IN THIS STATE WHEN:
  (A)  SUCH  MONIES  ARE  RECEIVED BY THE HISTORICAL VEHICLE RESTORATION
BUSINESS MORE THAN FIVE DAYS BEFORE THE RESTORATION WORK ON THE  CONSUM-
ER'S HISTORICAL VEHICLE IS TO BE COMPLETED AND SUCH VEHICLE IS READY FOR
DELIVERY TO THE CONSUMER; AND
  (B)(I)  THE TOTAL AMOUNT TO BE PAID FOR THE RESTORATION OF THE HISTOR-
ICAL VEHICLE OF THE CONSUMER IS EQUAL TO OR GREATER  THAN  TEN  THOUSAND
DOLLARS; OR
  (II)  THE  TOTAL GROSS ANNUAL RECEIPTS OF THE PERSON OR ENTITY ENGAGED
IN THE RESTORATION OF HISTORICAL VEHICLES EQUALS OR EXCEEDS ONE  HUNDRED
THOUSAND DOLLARS.
  2.  THE HISTORICAL VEHICLE RESTORATION BUSINESS SHALL, UPON DEPOSITING
SUCH MONIES IN A BANKING ORGANIZATION, NOTIFY THE CONSUMER IN WRITING OF
THE NAME AND ADDRESS OF THE BANKING ORGANIZATION AND THE AMOUNT DEPOSIT-
ED.
  3. ALL MONIES DEPOSITED PURSUANT  TO  THIS  SECTION  SHALL  REMAIN  ON
DEPOSIT UNTIL FULLY APPLIED TO THE CONTRACT PRICE FOR THE RESTORATION OF
THE  CONSUMER'S  HISTORICAL VEHICLE UPON COMPLETION OF SUCH RESTORATION,
UNLESS SOONER REPAID TO THE CONSUMER.
  S 808. REMEDIES. 1. A CONSUMER INJURED BY A VIOLATION OF THIS  ARTICLE
MAY  BRING AN ACTION TO RECOVER DAMAGES.  JUDGMENT MAY BE ENTERED FOR UP
TO THREE TIMES THE ACTUAL DAMAGES SUFFERED BY A CONSUMER, OR TWO HUNDRED
DOLLARS, WHICHEVER IS GREATER.  THE  COURT  MAY  ALSO  AWARD  REASONABLE
ATTORNEY'S FEES TO A PREVAILING CONSUMER.
  2.  UPON  ANY VIOLATION OF THIS ARTICLE, AN APPLICATION MAY BE MADE BY
THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF THE STATE TO  A  COURT
OR  JUSTICE  HAVING JURISDICTION TO ISSUE AN INJUNCTION, AND UPON NOTICE
TO THE RESPONDENT OF NOT LESS THAN FIVE DAYS, TO ENJOIN AND RESTRAIN THE
CONTINUANCE OF THE VIOLATION. IF IT SHALL APPEAR TO THE SATISFACTION  OF
THE  COURT  OR JUSTICE THAT THE RESPONDENT HAS VIOLATED ANY PROVISION OF
THIS ARTICLE, AN INJUNCTION MAY BE  ISSUED  BY  THE  COURT  OR  JUSTICE,
ENJOINING AND RESTRAINING ANY FURTHER VIOLATION, WITHOUT REQUIRING PROOF
THAT  ANY PERSON HAS, IN FACT, BEEN INJURED OR DAMAGED THEREBY. WHENEVER
THE COURT SHALL DETERMINE THAT A VIOLATION OF THIS ARTICLE HAS OCCURRED,
THE COURT MAY IMPOSE A CIVIL PENALTY  OF  NOT  MORE  THAN  TWO  THOUSAND
DOLLARS FOR EACH VIOLATION.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.