S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 5380                                                  A. 6884
 
                        2017-2018 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                              March 23, 2017
                                ___________
 
 IN  SENATE -- Introduced by Sen. GOLDEN -- read twice and ordered print-
   ed, and when printed to be committed  to  the  Committee  on  Consumer
   Protection
 
 IN  ASSEMBLY  -- Introduced by M. of A. ABBATE -- read once and referred
   to the Committee on Consumer Affairs and Protection

 AN ACT to amend the general business law, in relation to requiring auto-
   mobile brokers to be licensed
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 1 of section 736 of the general business law,
 as added by chapter 616 of the laws of 1988,  is  amended  and  two  new
 subdivisions 4 and 5 are added to read as follows:
   1.  "Automobile  broker  business"  means  any  person who, for a fee,
 commission or other valuable consideration paid by a consumer offers  to
 provide,  provides,  or  represents  that  he  will provide a service of
 purchasing, arranging, assisting, FACILITATING or effecting the purchase
 of an automobile as agent,  broker,  or  intermediary  for  a  consumer.
 "AUTOMOBILE  BROKER  BUSINESS" SHALL ALSO INCLUDE ANY PERSON WHO ACTS AS
 AN AGENT, BROKER OR INTERMEDIARY IN  EFFECTUATING  OR  FACILITATING  THE
 LEASE  OF  AN  AUTOMOBILE,  REGARDLESS  OF  WHETHER SUCH PERSON RECEIVES
 CONSIDERATION FROM THE CONSUMER. "Automobile broker business"  does  not
 include any person registered as a dealer pursuant to article sixteen of
 the vehicle and traffic law, or any person who sells, offers for sale OR
 LEASE or acts as agent, broker or intermediary in effecting the purchase
 OR LEASE of three or less automobiles in any calendar year.
   4.  "COMMISSIONER"  MEANS  THE COMMISSIONER OF THE DEPARTMENT OF MOTOR
 VEHICLES.
   5. "DIVISION" MEANS THE DIVISION OF CRIMINAL JUSTICE SERVICES.
   § 2. The general business law is amended by adding five  new  sections
 736-a, 736-b, 736-c, 736-d and 736-e to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10395-03-7

 S. 5380                             2                            A. 6884
 
   § 736-A.  LICENSE AND SURETY BOND REQUIRED. 1. NO PERSON, CORPORATION,
 PARTNERSHIP  OR FIRM SHALL HEREAFTER CARRY ON THE BUSINESS OF AN AUTOMO-
 BILE BROKER, AS DEFINED IN SECTION  SEVEN  HUNDRED  THIRTY-SIX  OF  THIS
 ARTICLE,  WITHOUT  FIRST HAVING (A) RECEIVED A LICENSE TO ENGAGE IN SUCH
 PRACTICE  IN  THE  MANNER PRESCRIBED IN THIS ARTICLE, AND (B) OBTAINED A
 SURETY BOND PRESCRIBED IN SECTION SEVEN HUNDRED FORTY-A OF THIS ARTICLE.
   2. NO PERSON SHALL OWN, CONTROL OR OPERATE, WHETHER AS A SOLE PROPRIE-
 TOR, PARTNER, SHAREHOLDER,  OFFICER,  INDEPENDENT  CONTRACTOR  OR  OTHER
 PERSON,  AN  AUTOMOBILE    BROKER  BUSINESS, AS DEFINED IN SECTION SEVEN
 HUNDRED THIRTY-SIX OF THIS ARTICLE, WITHOUT FIRST HAVING (A) RECEIVED  A
 LICENSE  TO  ENGAGE  IN  SUCH  PRACTICE IN THE MANNER PRESCRIBED IN THIS
 ARTICLE, AND (B) OBTAINED A SURETY  BOND  PRESCRIBED  IN  SECTION  SEVEN
 HUNDRED FORTY-A OF THIS ARTICLE.
   §  736-B.  APPLICATION  FOR  LICENSES.  1.  APPLICATION  FOR A LICENSE
 REQUIRED UNDER THIS ARTICLE SHALL BE IN WRITING, UNDER OATH, AND IN  THE
 FORM PRESCRIBED BY THE COMMISSIONER, AND SHALL CONTAIN THE FOLLOWING:
   (A)  THE  EXACT  NAME AND THE ADDRESS OF THE APPLICANT AND ITS DATE OF
 INCORPORATION;
   (B) THE NAME AND THE BUSINESS AND RESIDENTIAL ADDRESS OF EACH  PRINCI-
 PAL AND OFFICER OF THE APPLICANT;
   (C) IF THE APPLICANT HAS ANY COMMON OWNERSHIP WITH ANY NEW MOTOR VEHI-
 CLE  DEALER,  AS  DEFINED IN SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE
 AND TRAFFIC LAW, THE COMPLETE NAME AND ADDRESS OF SUCH DEALERSHIP;
   (D) THE COMPLETE ADDRESS WHERE THE BUSINESS OF THE APPLICANT IS TO  BE
 CONDUCTED, SHOWING THE STREET AND NUMBER, IF ANY, POST OFFICE AND BUILD-
 ING  AND  ROOM  NUMBER,  IF ANY, THE OFFICE BUILDING AND ROOM NUMBER, IF
 ANY, AND THE MUNICIPALITY AND COUNTY;
   (E) IF THE APPLICANT HAS ONE OR MORE BRANCHES, SUBSIDIARIES OR  AFFIL-
 IATES OPERATING IN THE STATE, THE COMPLETE ADDRESS OF EACH SUCH PLACE OF
 BUSINESS; AND
   (F)  A  COMPLETE  SET  OF TWO FINGERPRINT CARDS FOR EACH PRINCIPAL AND
 OFFICER OF THE APPLICANT ON A STANDARD FINGERPRINT CARD APPROVED BY  THE
 DIVISION  AND  A  FEE  PURSUANT  TO SUBDIVISION EIGHT-A OF SECTION EIGHT
 HUNDRED THIRTY-SEVEN OF THE EXECUTIVE LAW, AND AMENDMENTS  THERETO,  FOR
 THE  COST OF THE DIVISION'S FULL SEARCH AND RETAIN PROCEDURES, WHICH FEE
 SHALL BE REMITTED BY THE COMMISSIONER TO THE DIVISION FOR DEPOSIT BY THE
 COMPTROLLER INTO THE GENERAL FUND. BEFORE APPROVING SUCH APPLICATION THE
 COMMISSIONER, OR HIS OR HER DESIGNEE, SHALL FORWARD  ONE  COPY  OF  SUCH
 FINGERPRINT  CARD AND THE PROCESSING FEE TO THE DIVISION UPON RECEIPT OF
 SUCH FINGERPRINTS. THE DIVISION SHALL  FORWARD  TO  THE  COMMISSIONER  A
 REPORT  WITH  RESPECT  TO  THE APPLICANT'S PREVIOUS CRIMINAL HISTORY, IF
 ANY, OR A STATEMENT THAT THE APPLICANT HAS NO PREVIOUS CRIMINAL  HISTORY
 ACCORDING  TO  ITS  FILES.  IF  ADDITIONAL  COPIES  OF  FINGERPRINTS ARE
 REQUIRED, THE APPLICANT SHALL FURNISH THEM UPON REQUEST.
   2. UPON ORIGINAL APPLICATION FOR A LICENSE TO  OPERATE  AN  AUTOMOBILE
 BROKER  BUSINESS,  THE  APPLICANT  SHALL PAY AN APPLICATION FEE, IN SUCH
 AMOUNT AS MAY BE DETERMINED BY THE COMMISSIONER,  NOT  TO  EXCEED  THREE
 HUNDRED  DOLLARS.  UPON  APPLICATION FOR A LICENSE RENEWAL, THE LICENSEE
 SHALL PAY A RENEWAL PROCESSING FEE IN SUCH AMOUNT AS SHALL BE DETERMINED
 BY THE COMMISSIONER, NOT TO EXCEED THREE HUNDRED DOLLARS.
   § 736-C. CONDITIONS PRECEDENT TO LICENSING. UPON FILING OF AN APPLICA-
 TION FOR A LICENSE, IF THE COMMISSIONER SHALL BE SATISFIED OF  THE  GOOD
 CHARACTER, COMPETENCY AND INTEGRITY OF THE APPLICANT, AND OF THE PRINCI-
 PALS  AND  OFFICERS THEREOF ARE SUCH AS TO COMPLY WITH THE PROVISIONS OF
 THIS ARTICLE, HE OR SHE SHALL THEREUPON ISSUE A LICENSE IN DUPLICATE  TO
 OPERATE  AN AUTOMOBILE BROKER BUSINESS IN ACCORDANCE WITH THE PROVISIONS

 S. 5380                             3                            A. 6884
 
 OF THIS ARTICLE. THE  COMMISSIONER  SHALL  TRANSMIT  ONE  COPY  OF  SUCH
 LICENSE  TO  THE  LICENSEE AND FILE ANOTHER WITH THE COMMISSIONER.  SUCH
 LICENSE SHALL REMAIN IN FULL FORCE AND EFFECT FOR A PERIOD OF TWO  YEARS
 UNLESS  IT  IS  SURRENDERED  BY  THE LICENSEE OR REVOKED OR SUSPENDED AS
 HEREINAFTER PROVIDED; IF THE COMMISSIONER SHALL NOT SO FIND, THE COMMIS-
 SIONER SHALL NOT ISSUE SUCH LICENSE AND THE  COMMISSIONER  SHALL  NOTIFY
 THE  APPLICANT  OF THE DENIAL IN WRITING. THE COMMISSIONER SHALL APPROVE
 OR DENY EVERY APPLICATION FOR LICENSE HEREUNDER WITHIN NINETY DAYS  FROM
 THE FILING THEREOF.
   §  736-D.  LICENSING.  1. EACH LICENSE ISSUED UNDER THIS ARTICLE SHALL
 STATE THE ADDRESS OR ADDRESSES AT WHICH THE BUSINESS IS TO BE  CONDUCTED
 AND  SHALL  STATE FULLY THE NAME OF THE LICENSEE, AND THE DATE AND PLACE
 OF ITS INCORPORATION AND THE EXPIRATION DATE OF THE LICENSE. A  COPY  OF
 SUCH  LICENSE  SHALL  BE PROMINENTLY POSTED IN EACH PLACE OF BUSINESS OF
 THE LICENSEE. SUCH LICENSE SHALL NOT BE TRANSFERABLE OR ASSIGNABLE.
   2. IN THE EVENT THE LOCATION AT WHICH THE BUSINESS IS TO BE  CONDUCTED
 SHALL  BE  CHANGED, THE LICENSEE SHALL FORTHWITH NOTIFY THE COMMISSIONER
 IN WRITING, WHO SHALL THEREUPON WITHOUT CHARGE ATTACH TO THE  LICENSE  A
 RIDER SETTING FORTH SUCH CHANGED LOCATION.
   3. IN THE EVENT THAT THERE SHALL BE ANY CHANGE AMONG THE PRINCIPALS OR
 OFFICERS  OF  ANY  LICENSEE,  THE  LICENSEE  SHALL  FORTHWITH NOTIFY THE
 COMMISSIONER IN WRITING, OF THE NAME AND ADDRESS OF EACH  NEW  PRINCIPAL
 OR OFFICER, AND SHALL SUBMIT A COMPLETE SET OF TWO FINGERPRINT CARDS FOR
 EACH  SUCH  PRINCIPAL  OR  OFFICER  IN ACCORDANCE WITH THE PROVISIONS OF
 PARAGRAPH (F) OF SUBDIVISION ONE OF SECTION SEVEN  HUNDRED  THIRTY-SIX-B
 OF THIS ARTICLE.
   4. PRIOR TO OR UPON THE SALE OR TRANSFER OF ALL OR THE MAJORITY OF THE
 STOCK OR ASSETS OF ANY AUTOMOBILE BROKER BUSINESS, THE NEW PRINCIPALS OR
 OFFICERS  SHALL APPLY FOR A NEW LICENSE WITH THE COMMISSIONER IN ACCORD-
 ANCE WITH THE PROVISIONS  OF  SECTION  SEVEN  HUNDRED  THIRTY-SIX-B  AND
 SECTION  SEVEN  HUNDRED  THIRTY-SIX-C  OF THIS ARTICLE. SUCH APPLICATION
 SHALL BE MADE WITHIN SIXTY DAYS OF SUCH SALE OR TRANSFER.
   5. A LICENSE GRANTED UNDER THE  PROVISIONS  OF  THIS  ARTICLE  MAY  BE
 RENEWED  BY  THE COMMISSIONER UPON APPLICATION THEREFOR BY THE LICENSEE,
 IN SUCH FORM AS THE COMMISSIONER MAY PRESCRIBE, ACCOMPANIED BY THE  NON-
 REFUNDABLE RENEWAL PROCESSING FEE PURSUANT TO SUBDIVISION TWO OF SECTION
 SEVEN  HUNDRED THIRTY-SIX-B OF THIS ARTICLE. IN NO EVENT WILL RENEWAL BE
 GRANTED MORE THAN SIX MONTHS AFTER THE DATE OF EXPIRATION OF A  LICENSE.
 NO  PERSON, FIRM, COMPANY, PARTNERSHIP OR CORPORATION SHALL CARRY ON ANY
 BUSINESS SUBJECT TO THIS ARTICLE  DURING  ANY  PERIOD  WHICH  MAY  EXIST
 BETWEEN THE DATE OF EXPIRATION OF A LICENSE AND THE RENEWAL THEREOF.
   §  736-E.  SCOPE  AND  DUTIES UNDER AUTOMOBILE BROKER LICENSE. 1.  THE
 AUTOMOBILE BROKER LICENSE SHALL PERMIT A DULY LICENSED AUTOMOBILE BROKER
 UNDER THIS SECTION TO  ENGAGE  IN  THE  AUTOMOBILE  BROKER  BUSINESS  AS
 DEFINED  IN  SECTION  SEVEN  HUNDRED  THIRTY-SIX OF THIS ARTICLE. A DULY
 LICENSED AUTOMOBILE BROKER MAY NOT:
   (A) DELIVER A VEHICLE TO A CONSUMER AT ANY  LOCATION  OTHER  THAN  THE
 DULY  LICENSED  NEW OR USED DEALERSHIP THAT THE BROKER ARRANGED THE SALE
 THROUGH;
   (B)  TRANSMIT,  HANDLE  OR  STORE  ANY  DOCUMENTS  OR  MATERIALS  WITH
 PERSONALLY  IDENTIFYING  INFORMATION,  OR  FINANCIAL  INFORMATION OF THE
 CONSUMER; OR
   (C) DISPLAY FOR SALE OR LEASE ANY NEW OR USED MOTOR VEHICLES WITHOUT A
 VALID NEW OR USED CAR DEALERSHIP LICENSE.
   2. A DULY LICENSED BROKER UNDER THIS  SECTION  MUST  DISCLOSE  TO  THE
 CONSUMER ANY RELATIONSHIP WITH ANY DEALERSHIP, AND THE AMOUNT OF COMPEN-

 S. 5380                             4                            A. 6884
 
 SATION  PAID TO THE BROKER FOR ARRANGING THE SALE OF THE VEHICLE FOR THE
 DEALER.
   § 3. Section 744 of the general business law is renumbered section 745
 and a new section 744 is added to read as follows:
   §  744.  INVESTIGATION  BY  THE ATTORNEY GENERAL. THE ATTORNEY GENERAL
 SHALL INVESTIGATE NON-LICENSED AUTOMOBILE BROKER BUSINESSES  ENGAGED  IN
 THE  LEASING  OF  MOTOR  VEHICLES  AND SHALL MAKE RECOMMENDATIONS TO THE
 LEGISLATURE CONCERNING LEGISLATIVE PROPOSALS TO EFFECTUATE THE  PURPOSES
 OF THIS ARTICLE.
   §  4.  Subdivision  1 of section 740-a of the general business law, as
 added by chapter 579 of the laws of 2011, is amended to read as follows:
   1. Automobile broker businesses shall obtain and continue in effect  a
 surety bond in an amount of [seventy-five] ONE HUNDRED TWENTY-FIVE thou-
 sand  dollars  executed by a surety company authorized to transact busi-
 ness in the state by the [insurance] department OF FINANCIAL SERVICES of
 the state or its successor. The bonds shall be approved as  to  form  by
 the secretary of state and shall be conditioned on the automobile broker
 business'  payment of all valid bank drafts, including checks, drawn for
 the purchase of motor vehicles and 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.
   §  5.  This  act shall take effect on the ninetieth day after it shall
 have become a law; provided,  however,  that  the  commissioner  of  the
 department of motor vehicles shall take actions necessary to provide for
 the  issuance of licenses pursuant to section 736-d of the general busi-
 ness law, as added by section two of this act, prior to such date.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 5380--A                                            A. 6884--A
     Cal. No. 1056
 
                        2017-2018 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                              March 23, 2017
                                ___________
 
 IN  SENATE -- Introduced by Sen. GOLDEN -- read twice and ordered print-
   ed, and when printed to be committed  to  the  Committee  on  Consumer
   Protection  -- reported favorably from said committee and committed to
   the Committee on Finance -- reported favorably  from  said  committee,
   ordered  to  first  and  second  report,  ordered  to a third reading,
   amended and ordered reprinted, retaining its place  in  the  order  of
   third reading
 
 IN  ASSEMBLY  --  Introduced by M. of A. ABBATE, HARRIS, TITONE, LENTOL,
   CYMBROWITZ, CUSICK, COLTON, McDONOUGH -- read once and referred to the
   Committee on Consumer Affairs and Protection -- committee  discharged,
   bill  amended,  ordered  reprinted  as amended and recommitted to said
   committee
 
 AN ACT to amend the general business law and  the  vehicle  and  traffic
   law, in relation to requiring automobile brokers to be licensed
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 736 of the general  business  law,
 as  added  by  chapter  616  of  the laws of 1988, is amended to read as
 follows:
   1. "Automobile broker business" means  any  person  who,  for  a  fee,
 commission  or  other valuable consideration, REGARDLESS OF WHETHER SUCH
 FEE, COMMISSION, OR CONSIDERATION IS paid DIRECTLY by a consumer, offers
 to provide, provides, or represents  that  he  OR  SHE  will  provide  a
 service  of  purchasing, arranging, assisting, FACILITATING or effecting
 the purchase OR LEASE of an automobile as agent, broker, or intermediary
 for a consumer. "Automobile broker business" does not include any person
 registered as a dealer pursuant to article sixteen of  the  vehicle  and
 traffic  law,  or any person who sells, offers for sale OR LEASE or acts
 as agent, broker or intermediary in effecting the purchase OR  LEASE  of
 three  or  [less]  FEWER  automobiles in any calendar year, OR ANY MOTOR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD10395-06-7

 S. 5380--A                          2                         A. 6884--A
 
 VEHICLE FRANCHISOR, MANUFACTURER, OR DISTRIBUTOR REGISTERED UNDER  ARTI-
 CLE  SIXTEEN OF THE VEHICLE AND TRAFFIC LAW AND SUBJECT TO PARAGRAPH (Y)
 OF SUBDIVISION TWO OF SECTION FOUR HUNDRED SIXTY-THREE  OF  THE  VEHICLE
 AND TRAFFIC LAW.
   § 2. The general business law is amended by adding a new section 736-a
 to read as follows:
   § 736-A. LICENSE REQUIRED. 1. NO PERSON SHALL ENGAGE IN BUSINESS AS AN
 AUTOMOBILE  BROKER BUSINESS, AS DEFINED IN SECTION SEVEN HUNDRED THIRTY-
 SIX OF THIS ARTICLE, WITHOUT FIRST HAVING BEEN ISSUED A  CERTIFICATE  OF
 REGISTRATION  FOR  AN AUTOMOBILE BROKER BUSINESS PURSUANT TO PARAGRAPH C
 OF SUBDIVISION SEVEN OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE  AND
 TRAFFIC LAW.
   2.  A  CERTIFICATE  OF  REGISTRATION FOR AN AUTOMOBILE BROKER BUSINESS
 SHALL NOT PERMIT THE REGISTRANT TO DISPLAY FOR SALE OR LEASE ANY NEW  OR
 USED  MOTOR VEHICLES WITHOUT REGISTRATION AS A DEALER UNDER SECTION FOUR
 HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW.
   3. A PERSON HOLDING A LICENSE AS AN AUTOMOBILE BROKER  BUSINESS  SHALL
 NOT  ALSO  HOLD  A  CERTIFICATE  OF REGISTRATION AS A "NEW MOTOR VEHICLE
 DEALER" AS DEFINED IN SECTION FOUR HUNDRED FIFTEEN OF  THE  VEHICLE  AND
 TRAFFIC LAW.
   § 3. Paragraphs (e), (f) and (g) of subdivision 1 and subdivision 3 of
 section  738 of the general business law, as added by chapter 616 of the
 laws of 1988, paragraph (e) of subdivision 1 as amended by  chapter  579
 of the laws of 2011, are amended to read as follows:
   (e)  A  description  of  any  other services and an itemization of the
 charges for each. Such description shall include disclosure of the auto-
 mobile dealer from which the automobile was purchased OR LEASED, as well
 as all fees, commissions or other valuable  considerations  paid  by  an
 automobile  dealer  to  the  automobile  broker  business for [selling,]
 arranging, assisting or effecting the sale OR LEASE of an automobile  as
 agent,  broker,  or intermediary between the consumer and the automobile
 dealer. IF ANY SUCH FEES, COMMISSIONS OR CONSIDERATIONS ARE TO  BE  PAID
 TO  THE  AUTOMOBILE  BROKER  BUSINESS  BY  SUCH DEALER, THERE SHALL BE A
 STATEMENT IN IMMEDIATE PROXIMITY TO SUCH  DISCLOSURE  THAT  THE  AMOUNTS
 DISCLOSED  ARE  TO  BE PAID BY THE DEALER TO THE AUTOMOBILE BROKER BUSI-
 NESS.
   (f) If a consumer elects to cancel the contract pursuant to  paragraph
 (b)  or  (c)  of this subdivision, he OR SHE shall notify in writing the
 automobile broker business at the address specified in the contract. The
 automobile broker business shall make a  full  refund  to  the  consumer
 within  ten business days following receipt of the request for a refund.
 The contract shall contain a statement,  setting  forth  the  consumer's
 right to cancel the contract under paragraphs (b) and (c) of this subdi-
 vision and the refund obligations of the automobile broker business.
   (g)  The  statements required by paragraphs (a), (b), (c), (E) and (f)
 of this subdivision shall be printed in at least ten point bold type.
   3. An automobile broker business shall deliver to the consumer or mail
 to him OR HER at the address shown on the  contract,  an  executed  copy
 thereof.
   §  4.  Subdivision  1 of section 740-a of the general business law, as
 added by chapter 579 of the laws of 2011, is amended to read as follows:
   1. Automobile broker businesses shall obtain and continue in effect  a
 surety  bond in an amount of [seventy-five] ONE HUNDRED thousand dollars
 executed by a surety company authorized  to  transact  business  in  the
 state  by  the [insurance] department OF FINANCIAL SERVICES of the state
 or its successor. The bonds shall be approved as to form by  the  secre-

 S. 5380--A                          3                         A. 6884--A
 
 tary  of  state  and shall be conditioned on the automobile broker busi-
 ness' payment of all valid bank drafts, including checks, drawn for  the
 purchase  of  motor  vehicles  and  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.
   §  5.  Section  741-a of the general business law, as added by chapter
 579 of the laws of 2011, is amended to read as follows:
   § 741-a. Advertising. Automobile broker businesses shall  clearly  and
 conspicuously  disclose the following in all advertisements in any medi-
 um, and in any print advertisement such disclosures shall not appear  in
 any  footnotes  and shall be situated in the top half of any such adver-
 tisement in an easily readable typeface:
   (a) That the automobile broker business is not a [licensed] REGISTERED
 new motor vehicle dealer BUT IS A REGISTERED AUTOMOBILE BROKER  BUSINESS
 as  defined  in  section four hundred fifteen of the vehicle and traffic
 law;
   (b) THE REGISTRATION NUMBER ISSUED TO THE AUTOMOBILE  BROKER  BUSINESS
 PURSUANT TO SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW;
   (C)  Whether any fees may be imposed by the automobile broker business
 for services rendered. Details of such compensation shall be provided by
 the automobile broker business upon request by the consumer; and
   [(c)] (D) That no warranty repair services will  be  provided  by  the
 automobile broker business.
   §  6.  Subdivision  1 of section 415 of the vehicle and traffic law is
 amended by adding a new paragraph m to read as follows:
   M. "AUTOMOBILE BROKER BUSINESS" SHALL HAVE THE MEANING  SET  FORTH  IN
 SUBDIVISION ONE OF SECTION SEVEN HUNDRED THIRTY-SIX OF THE GENERAL BUSI-
 NESS LAW.
   § 7. Section 415 of the vehicle and traffic law is amended by adding a
 new subdivision 3-a to read as follows:
   3-A.  AUTOMOBILE  BROKER BUSINESS REGISTRATION. NO PERSON SHALL ENGAGE
 IN THE AUTOMOBILE BROKER BUSINESS OR REPRESENT OR ADVERTISE THAT  HE  OR
 SHE IS ENGAGED OR INTENDS TO ENGAGE IN THE AUTOMOBILE BROKER BUSINESS IN
 THIS  STATE, UNLESS THERE SHALL HAVE BEEN ISSUED TO HIM OR HER A CERTIF-
 ICATE OF REGISTRATION AS AN AUTOMOBILE BROKER BUSINESS  BY  THE  COMMIS-
 SIONER  UNDER  THIS  SECTION PURSUANT TO AN APPLICATION FOR REGISTRATION
 SUBMITTED PURSUANT TO SUBDIVISION FIVE OF THIS SECTION.
   § 8. Subdivision 5 of section 415 of the vehicle and  traffic  law  is
 amended by adding a new paragraph b-3 to read as follows:
   B-3.   IN THE CASE OF AN APPLICATION FOR REGISTRATION AS AN AUTOMOBILE
 BROKER BUSINESS, THE NAME AND ADDRESS OF THE SURETY COMPANY  WHICH  WILL
 ISSUE  THE  BOND  REQUIRED  BY  SUBDIVISION ONE OF SECTION SEVEN HUNDRED
 FORTY-A OF THE GENERAL BUSINESS LAW. IF THE BOND IS TO BE ISSUED  BY  AN
 AUTHORIZED  AGENT  OF THE SURETY COMPANY LICENSED BY THE STATE, THEN THE
 NAME AND ADDRESS OF THAT AGENT MAY BE PROVIDED IN LIEU OF  THE  INFORMA-
 TION CONCERNING THE SURETY COMPANY.
   §  9.  Paragraph  d of subdivision 9 of section 415 of the vehicle and
 traffic law, as amended by chapter 254 of the laws of 2010,  is  amended
 to read as follows:
   d.  Has  failed to comply with any of the rules and regulations of the
 commissioner for the enforcement of this article or with  any  provision
 of  this  chapter  OR  ARTICLE THIRTY-FIVE-B OF THE GENERAL BUSINESS LAW
 applicable thereto; or
   § 10. This act shall take effect on  the  one  hundred  eightieth  day
 after  it  shall  have become a law; provided, however, that the commis-

 S. 5380--A                          4                         A. 6884--A
 
 sioner of the department of motor vehicles shall take actions  necessary
 to  provide  for  the  issuance of registration certificates pursuant to
 section 415 of the vehicle and traffic law, as amended by sections  six,
 seven, eight and nine of this act, prior to such date.