|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|May 29, 2013||
referred to transportation
delivered to assembly
|Apr 22, 2013||
advanced to third reading
|Apr 17, 2013||
2nd report cal.
|Apr 16, 2013||
1st report cal.342
|Mar 15, 2013||
referred to transportation
senate Bill S4245
Imposes sanctions for credit card charge backs on motor vehicle fees
Archive: Last Bill Status - Passed Senate
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
view actions (7)
May 29, 2013 - floor VoteS4245601floor60Aye1Nay0Absent2Excused0Abstained
show floor vote details
Floor Vote: May 29, 2013aye (60)
Apr 16, 2013 - Transportation committee VoteS4245170committee17Aye0Nay1Aye with Reservations0Absent0Excused0Abstained
- show floor vote details
S4245 - Bill Details
- Current Committee:
- Assembly Transportation
- Law Section:
- Vehicle and Traffic Law
- Laws Affected:
- Amd §202-b, V & T L
S4245 - Bill Texts
Imposes sanctions for credit card charge backs on motor vehicle fees.
view sponsor memo
TITLE OF BILL: An act to amend the vehicle and traffic law, in
relation to sanctions for credit card charge backs on motor vehicle
Purpose of the Bill:
This bill would authorize the Department of Motor Vehicles (DMV) to
impose sanctions against persons who pay for fees with a credit card
and thereafter use the card "charge back" system to avoid payment.
Summary of Provisions:
Section one of the bill would amend Vehicle and Traffic Law (VTL)
202-b by providing for possible suspension of a customer's driver's
license and/or registration when the fee for those documents was paid
by credit card and the customer subsequently contests the credit card
charge such that the fee is charged back to DMV. The customer would be
given time to make payment prior to the suspension taking effect.
Section two of the bill would provide that the law becomes effective
in 120 days. Existing Law:
VTL § 202-b currently authorizes DMV to impose a penalty and suspend
licenses and registrations only for dishonored checks.
Prior Legislative History:
This proposal was introduced as S. 4918 in 2003 and passed the Senate
in 2003 and 2004.
Statement in Support:
DMV has experienced an increase in a relatively new type of fraudulent
activity associated with credit card transactions. A customer will pay
a license or registration fee with a credit card and then
illegitimately contest the charge with the customer's credit card
company to obtain a "charge back." By requesting a charge back for a
valid DMV charge, these customers are able to obtain a valid license
or registration that they have not paid for.
While VTL § 202-b currently allows DMV to suspend the license or
registration of a customer whose check is dishonored, there is no
similar mechanism for those who defraud DMV by illegitimately
requesting a charge back on their credit card transaction. The same
safeguards applicable to dishonored checks would apply to charge
backs. Before the suspension would take effect, DMV would notify the
customer in writing that a fee is due. The customer would have 30 days
from notification within which to make the payment to DMV to avoid
Both the volume of charge backs and the dollar amount per charged back
transaction have been increasing. DMV anticipates that this trend will
continue as the range of transactions payable by credit card expands,
and especially as additional internet transactions are offered. In
fiscal year 2010-11, DMV received an average of 100 chargeback
requests per month from credit card issuers. DMV was able to recover
only 50% of the unpaid fees associated with credit card charge backs
($158,457 out of $306,898). In addition to this lost revenue, DMV has
incurred additional expenses because credit card companies may charge
$10.00 per charge back.
By imposing sanctions, this bill will increase revenue to the State by
reducing the number of unpaid transaction fees for driver's licenses
This act shall take effect 120 days after becoming law.
view full text
S T A T E O F N E W Y O R K ________________________________________________________________________ 4245 2013-2014 Regular Sessions I N S E N A T E March 15, 2013 ___________ Introduced by Sen. FUSCHILLO -- (at request of the Department of Motor Vehicles) -- read twice and ordered printed, and when printed to be committed to the Committee on Transportation AN ACT to amend the vehicle and traffic law, in relation to sanctions for credit card charge backs on motor vehicle fees THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 202-b of the vehicle and traffic law, as added by chapter 190 of the laws of 1990, is amended to read as follows: S 202-b. Penalties for submission of dishonored checks AND CREDIT CARD PAYMENTS. A thirty-five dollar penalty fee shall be charged to any person who has submitted a check to the commissioner or his or her agent as payment for any license, permit or registration or any other type of fee for any type of transaction as required by this chapter and such check has been dishonored. Such thirty-five dollar penalty shall be added to the amount due to the commissioner. In addition, any or all licenses, permits or registrations issued in the name of such person may be suspended WHERE SUCH PERSON'S CHECK HAS BEEN DISHONORED, OR, IN THE CASE OF A CREDIT CARD PAYMENT, WHERE THE PAYMENT IS CONTESTED AND IS NOT HONORED BY THE CREDIT CARD COMPANY and, if a suspension has been issued, any other transaction in the name of such person with this department may be prohibited until full satisfaction of the amount due to the commissioner and, IN THE CASE OF A DISHONORED CHECK, the thirty-five dollar penalty fee is paid to the commissioner. No such suspension shall be issued until thirty days after notification that the check has been dishonored OR THE CREDIT CARD PAYMENT HAS NOT BEEN HONORED BY THE CREDIT CARD COMPANY is mailed to such person. If satisfaction is made within thirty days from the date of mailing of such notification, no suspension shall be issued. S 2. This act shall take effect on the one hundred twentieth day after it shall have become a law and shall apply to all payments received on or after such date. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09092-01-3
Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.
By contributing or voting you agree to the Terms of Participation and verify you are over 13.