S T A T E   O F   N E W   Y O R K
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                                  6654

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             March 30, 2015
                               ___________

Introduced by M. of A. PERRY, ROBINSON -- Multi-Sponsored by -- M. of A.
  ABINANTI, HIKIND, McDONOUGH, ORTIZ, 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
relate to new motor vehicles and if such dealer is party to a franchise,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03565-01-5
              

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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:
  (I) IS DESIGNED AND BUILT OR MODIFIED TO  ALLOW  VEHICLE  INGRESS  AND
EGRESS FOR A PERSON IN A WHEELCHAIR OR SCOOTER; AND

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  (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
amount of ten thousand dollars executed by a surety  company  authorized
to  transact  business  in  the  state  by  the  department of financial

A. 6654                             4

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
application of an applicant for a registration certificate other than  a
new  motor vehicle dealer certificate or a qualified dealer certificate,

A. 6654                             5

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.