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

                                  5984

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             March 12, 2013
                               ___________

Introduced  by  M.  of A. PERRY, REILICH, ROBINSON, WEISENBERG -- Multi-
  Sponsored by -- M. of A.  ABINANTI, GIBSON, HIKIND,  McDONOUGH,  MILL-
  MAN,  ORTIZ, SWEENEY, TITUS -- 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 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 three new paragraphs k, l  and m 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
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  and  a
"qualified 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00109-01-3
              

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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
document  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 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.
  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.
  K. (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.
  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 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:

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  (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.
  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 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-
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  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, and paragraph a as further amended by section 104 of
part A of chapter 62 of the  laws  of  2011,  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 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 two hundred motor vehicles or fewer in the previous
calendar  year  shall  obtain and continue in effect a surety bond in an

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amount of ten thousand dollars executed by a surety  company  authorized
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 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 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.
  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, 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

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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. 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.
  S  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.
  S 7. This act shall take effect on the one hundred twentieth day after
it shall have become a law.