S T A T E   O F   N E W   Y O R K
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                                  7865

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              May 28, 2015
                               ___________

Introduced  by M. of A. BLAKE -- read once and referred to the Committee
  on Banks

AN ACT to amend the financial services law, in relation to the jurisdic-
  tion of the department of financial services  over  the  financing  of
  motor  vehicles; and to amend the vehicle and traffic law, in relation
  to the licensing of motor vehicle dealer finance managers

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

  Section  1.  Subparagraph  (B)  of  paragraph  2  of subsection (a) of
section 104 of the financial services law is amended to read as follows:
  (B) "Financial product or service" shall also not include the  follow-
ing,  when  offered  or  provided  by  a  provider  of consumer goods or
services:  (i) the extension of credit directly to a consumer exclusive-
ly for the purpose of enabling that consumer to purchase  such  consumer
good  or  service  directly from the seller, (ii) the collection of debt
arising from such credit, or (iii) the sale or conveyance of  such  debt
that is delinquent or otherwise in default.  PROVIDED, HOWEVER, THAT THE
PROVISIONS  OF  THIS  SUBPARAGRAPH  SHALL NOT APPLY TO THE SALE OF MOTOR
VEHICLES. EVERY SALE OF A MOTOR VEHICLE THAT INVOLVES FINANCING, WHETHER
ORIGINATED AT A MOTOR VEHICLE DEALER OR AT A LENDING INSTITUTION,  SHALL
BE DEEMED TO BE A "FINANCIAL PRODUCT OR SERVICE" WITHIN THE JURISDICTION
OF THE DEPARTMENT.
  S  2.  The  opening paragraph of section 205 of the financial services
law is designated subsection (a) and a new subsection (b)  is  added  to
read as follows:
  (B)  THE  SUPERINTENDENT  MAY,  IN  HIS OR HER DISCRETION, ESTABLISH A
MOTOR VEHICLE FINANCING BUREAU, AND TO PROMULGATE ANY AND ALL RULES  AND
REGULATIONS  NECESSARY  TO REGULATE MOTOR VEHICLE FINANCING TRANSACTIONS
AND MOTOR VEHICLE DEALER FINANCING DEPARTMENTS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10989-03-5

A. 7865                             2
              

  S 3. Paragraphs 6 and 7 of subsection (c) of section 301 of the finan-
cial services law are amended and four new paragraphs 8, 9,  10  and  11
are added to read as follows:
  (6)  providing  technical assistance to local governments and not-for-
profits in the development of consumer protection measures with  respect
to financial products and services; [and]
  (7)   continuing   and  expanding  the  detection,  investigation  and
prevention of insurance fraud[.];
  (8) PROMULGATING  RULES  AND  REGULATIONS  FOR  MOTOR  VEHICLE  DEALER
FINANCE DEPARTMENTS AND FINANCE MANAGERS;
  (9) ESTABLISHING EDUCATIONAL MATERIALS AND/OR MANDATED INSTRUCTION FOR
MOTOR VEHICLE DEALER FINANCE MANAGERS APPLYING FOR LICENSING PURSUANT TO
PARAGRAPH  D OF SUBDIVISION THREE OF SECTION FOUR HUNDRED FIFTEEN OF THE
VEHICLE AND TRAFFIC  LAW.  NO  SUCH  MANDATE  INSTRUCTION  SHALL  EXCEED
SIXTEEN HOURS DURING ANY BIENNIAL LICENSING PERIOD;
  (10)  IMPOSING  A  LICENSING  AND  COURSE FEE FOR MOTOR VEHICLE DEALER
FINANCE MANAGER APPLICANTS PURSUANT TO PARAGRAPH D OF SUBDIVISION  THREE
OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW; PROVIDED
THAT  SUCH  FEE  SHALL  NOT EXCEED TWO HUNDRED DOLLARS FOR EACH BIENNIAL
LICENSING PERIOD; AND
  (11) ESTABLISHING AND IMPOSING PENALTIES, AND LICENSE SUSPENSIONS  AND
REVOCATIONS  FOR  VIOLATIONS  BY MOTOR VEHICLE DEALERS AND MOTOR VEHICLE
DEALER FINANCE MANAGERS.
  S 4. Subdivision 3 of section 415 of the vehicle and  traffic  law  is
amended by adding a new paragraph d to read as follows:
  D.  (I)  EVERY DEALER WHICH SELLS MOTOR VEHICLES THAT ARE FINANCED, OR
WHICH FACILITATES IN ANY MANNER THE FINANCING OF  THE  PURCHASE  OF  ANY
MOTOR  VEHICLE,  SHALL  ACT  AS  OR  EMPLOY  AN INDIVIDUAL TO ACT AS THE
FINANCE MANAGER FOR  SUCH  DEALER,  AND  EVERY  SUCH  MANAGER  SHALL  BE
LICENSED BY THE DEPARTMENT OF FINANCIAL SERVICES.
  (II)  EVERY  LICENSED FINANCE MANAGER SHALL HAVE COMPLETED SUCH COURSE
OF INSTRUCTION AS SHALL BE ESTABLISHED BY THE  DEPARTMENT  OF  FINANCIAL
SERVICES.
  S  5.  This  act  shall  take effect on the two hundred seventieth day
after it shall have become a law.