S T A T E O F N E W Y O R K
________________________________________________________________________
5836
2013-2014 Regular Sessions
I N S E N A T E
June 17, 2013
___________
Introduced by Sen. ZELDIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the vehicle and traffic law, in relation to certificates
of registration for certain franchisors
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph f of subdivision 7 of section 415 of the vehicle
and traffic law, as amended by a chapter of the laws of 2013, amending
the vehicle and traffic law relating to automobile manufacturers and
business practices by franchisors, as proposed in legislative bills
numbers S.5725-A and A.7844-A, is amended to read as follows:
f. [Except as provided in paragraph (bb) of subdivision two of section
four hundred sixty-three of this title:
(i)] The commissioner shall not issue any certificate of registration
authorized by this section to any franchisor, [manufacturer, distributor
branch or factory branch,] as such [terms are] TERM IS defined in
section four hundred sixty-two of this title, [or to any subsidiary,
affiliate or controlled entity thereof,] except that the commissioner
may renew such certificate previously issued or otherwise approved to
operate to a franchisor prior to [July first, two thousand six. Nothing
in this section shall preclude the establishment of such facilities
necessary to continue the ongoing operation of any holder of a certif-
icate of registration authorized by this section or otherwise approved
to operate to a franchisor provided such original certificate or
approval was granted prior to July first, two thousand six.
(ii) On or after the effective date of this subparagraph, the commis-
sioner shall not issue any certificate of registration, or renew any
certificate, unless the original certificate was issued before July
first, two thousand six, to any motor vehicle dealer in which a franchi-
sor, manufacturer, distributor, distributor branch or factory branch, as
such terms are defined in section four hundred sixty-two of this title,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11571-01-3
S. 5836 2
or any subsidiary, affiliate or controlled entity thereof, has acquired,
or possesses, a controlling interest in the franchise entity except:
(1) when operating such franchise for a temporary period, not to
exceed one year, during the transition from one owner of the motor vehi-
cle dealership to another, provided, however, that such temporary period
may be extended once for an additional period not to exceed one year for
good cause. Provided that for franchisors of house coaches, the period
of temporary ownership of a franchised house coach dealership may be
extended in one year increments for good cause shown, except that the
aggregate of such extensions shall not exceed five years; or
(2) when operating such franchise temporarily under a plan with an
independent individual who is obligated to make a significant investment
in the dealership that is subject to loss and has an ownership interest
or expects to acquire full ownership in a reasonable period under
reasonable terms and conditions, provided that a reasonable period shall
be presumed to not exceed eight years] MAY SECOND, TWO THOUSAND TWO.
S 2. This act shall take effect on the same date and in the same
manner as a chapter of the laws of 2013 amending the vehicle and traffic
law relating to automobile manufacturers and business practices by fran-
chisors, as proposed in legislative bills numbers S.5725-A and A.7844-A,
takes effect.