S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9002
 
                           I N  A S S E M B L Y
 
                             January 10, 2018
                                ___________
 
 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 and the vehicle and traffic
   law, in relation to requiring automobile brokers to be  licensed;  and
   to  amend a chapter of the laws of 2017, amending the general business
   law and the vehicle and traffic law relating to  requiring  automobile
   brokers  to  be  licensed, as proposed in legislative bills numbers S.
   5380-B and A.  6884-B, in relation to manufacturers and distributors
 
   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 amended by a chapter of the laws of 2017, amending the general  busi-
 ness  law  and the vehicle and traffic law relating to requiring automo-
 bile brokers to be licensed, as proposed in legislative bills numbers S.
 5380-B and A. 6884-B, 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  NOR  ANY  BONA  FIDE EMPLOYEE OF A REGISTERED DEALER WHILE
 ACTING FOR SUCH DEALER, 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 fewer automobiles in any calendar year[, or any
 motor vehicle franchisor, manufacturer, or distributor registered  under
 article  sixteen  of the vehicle and traffic law who sells or leases new
 motor vehicles to employees,  immediate  family  members  of  employees,
 retirees, or immediate family members of retirees as authorized by para-
 graph  (y) of subdivision two of section four hundred sixty-three of the
 vehicle and traffic law], ANY NATIONAL SERVICE WHICH AGGREGATES INFORMA-
 TION FOR CONSUMERS, BUT DOES NOT OTHERWISE HAVE CONTACT WITH  CONSUMERS,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD10395-08-8

 A. 9002                             2
 
 OR ANY MOTOR VEHICLE FRANCHISOR, MANUFACTURER, OR DISTRIBUTOR REGISTERED
 UNDER ARTICLE SIXTEEN OF THE VEHICLE AND TRAFFIC LAW.
   §  2. Paragraph e of subdivision 1 of section 738 of the general busi-
 ness law, as amended by a chapter of the  laws  of  2017,  amending  the
 general business law and the vehicle and traffic law relating to requir-
 ing  automobile brokers to be licensed, as proposed in legislative bills
 numbers S. 5380-B and A.  6884-B, is 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 automo-
 bile dealer.
   § 3. The opening paragraph of subdivision 1  of  section  738  of  the
 general  business  law,  as added by chapter 616 of the laws of 1988, is
 amended and a new subdivision 4 is added to read as follows:
   Every contract between a consumer and an  automobile  broker  business
 FOR  THE  PURCHASE OF AN AUTOMOBILE shall be in writing, shall be dated,
 shall contain the street address of the automobile broker  business  and
 the  consumer  and shall be signed by the consumer and by the automobile
 broker business. Every contract shall comply with the  requirements  set
 forth in this section and contain the following:
   4.  AN  AUTOMOBILE  BROKER  BUSINESS  IN ANY TRANSACTION INVOLVING THE
 LEASE OF A VEHICLE SHALL PROVIDE THE RETAIL LESSEE WITH A  RETAIL  LEASE
 AGREEMENT  AS  PROVIDED FOR IN SECTION THREE HUNDRED THIRTY-SEVEN OF THE
 PERSONAL PROPERTY LAW. THE AUTOMOBILE BROKER  SHALL  PROVIDE  A  WRITTEN
 DISCLOSURE  OF  THE AMOUNT OF ANY FEE, COMMISSION OR OTHER CONSIDERATION
 PAID OR EXPECTED TO BE PAID BY THE LESSOR TO THE AUTOMOBILE BROKER BUSI-
 NESS IN CONNECTION WITH A TRANSACTION INVOLVING THE LEASE OF A  VEHICLE.
 SUCH  DISCLOSURE  SHALL  BE  SIGNED BY THE RETAIL LESSEE. THE AUTOMOBILE
 BROKER BUSINESS SHALL PROVIDE THE RETAIL LESSEE WITH A  SIGNED  COPY  OF
 SUCH  DISCLOSURE  TOGETHER  WITH  THE  RETAIL LEASE AGREEMENT REFERENCED
 HEREIN.
   § 4. The general business law is amended by adding a new section 741-b
 to read as follows:
   § 741-B. DISCLOSURE. AN AUTOMOBILE BROKER  BUSINESS  SHALL  PROVIDE  A
 DISCLOSURE AT THE TIME SUCH AUTOMOBILE BROKER BUSINESS TAKES AN ORDER TO
 SEARCH  FOR A LEASED VEHICLE MEETING THE PROSPECTIVE LESSEE'S SPECIFICA-
 TIONS.  SUCH DISCLOSURE SHALL PROVIDE THE AMOUNT OF  ANY  FEES,  COMMIS-
 SIONS  OR  OTHER  VALUABLE  CONSIDERATION THE AUTOMOBILE BROKER BUSINESS
 EXPECTS TO RECEIVE, IF KNOWN, FROM A DEALER, LESSOR OR ANY OTHER  PERSON
 OR  ENTITY FOR ANY ASSISTANCE THE AUTOMOBILE BROKER BUSINESS PROVIDES IN
 EFFECTING THE LEASE TRANSACTION. IF THE AMOUNT OF ANY SUCH FEES, COMMIS-
 SIONS OR OTHER VALUABLE CONSIDERATION  THE  AUTOMOBILE  BROKER  BUSINESS
 EXPECTS  TO  RECEIVE  IS UNKNOWN AT THE TIME OF THE REQUIRED DISCLOSURE,
 THE AUTOMOBILE BROKER BUSINESS SHALL DISCLOSE:  (A)  WHETHER  IT  HAS  A
 CONTRACT  WITH  ANY DEALER, LESSOR OR ANY OTHER PERSON OR ENTITY FOR THE
 PROVISION OF ASSISTANCE IN EFFECTING A LEASE TRANSACTION; AND (B) WHETH-
 ER THE AUTOMOBILE BROKER BUSINESS MAY  BE  COMPENSATED  BY  THE  DEALER,
 LESSOR  OR  ANY  OTHER  PERSON OR ENTITY FOR ANY ASSISTANCE IN EFFECTING
 SUCH LEASE TRANSACTION.
   § 5.  Subdivision 6 of section 415 of the vehicle and traffic law,  as
 amended  by  section 1-b of part A of chapter 63 of the laws of 2005, is
 amended to read as follows:

 A. 9002                             3
 
   6. Fees. Every original application  for  registration  as  a  dealer,
 AUTOMOBILE  BROKER or transporter shall be accompanied by an application
 fee of thirty-seven dollars and fifty cents, which shall in no event  be
 refunded. The annual fee for registration as a dealer, AUTOMOBILE BROKER
 or  transporter  or for renewal thereof shall be two hundred twenty-five
 dollars. The annual fee for any other registration  under  this  section
 shall   be   fifty  dollars.  However,  the  commissioner  may,  in  his
 discretion, issue a renewal of either registration for a period  of  two
 years. The fee for a two-year renewal shall be twice the annual fee. The
 annual  fee  for  dealer  or  transporter  number plates shall be twenty
 dollars for each set. If the commissioner issues to dealers  a  document
 which  is required to be used by a dealer to sell or transfer a vehicle,
 the fee for the issuance of each such document shall  be  five  dollars.
 There  shall  be no refund of registration fee or fees for number plates
 in the event of suspension,  revocation  or  voluntary  cancellation  of
 registration.  The  fee  for  any  such  transfer document issued by the
 commissioner shall be refunded only upon the surrender of such  document
 upon voluntary cancellation of registration.
   §  6.  Subdivision 6 of section 415 of the vehicle and traffic law, as
 amended by chapter 7 of the laws of 2000, is amended to read as follows:
   6. Fees. Every original application  for  registration  as  a  dealer,
 AUTOMOBILE  BROKER or transporter shall be accompanied by an application
 fee of twenty-five dollars, which shall in no  event  be  refunded.  The
 annual  fee for registration as a dealer, AUTOMOBILE BROKER or transpor-
 ter or for renewal thereof shall be one hundred fifty dollars. The annu-
 al fee for any other registration under  this  section  shall  be  fifty
 dollars.  However,  the  commissioner  may,  in  his discretion, issue a
 renewal of either registration for a period of two years. The fee for  a
 two-year renewal shall be twice the annual fee. The annual fee for deal-
 er or transporter number plates shall be twenty dollars for each set. If
 the  commissioner  issues  to dealers a document which is required to be
 used by a dealer to sell or transfer a vehicle, the fee for the issuance
 of each such document shall be one dollar. There shall be no  refund  of
 registration  fee  or fees for number plates in the event of suspension,
 revocation or voluntary cancellation of registration. The  fee  for  any
 such transfer document issued by the commissioner shall be refunded only
 upon  the  surrender  of  such  document  upon voluntary cancellation of
 registration.
   § 7. A chapter of the laws of 2017, amending the general business  law
 and the vehicle and traffic law relating to requiring automobile brokers
 to  be  licensed, as proposed in legislative bills numbers S. 5380-B and
 A. 6884-B, is amended by adding a new section 9-a to read as follows:
   § 9-A. NOTHING CONTAINED WITHIN THIS ACT SHALL BE DEEMED  TO  GRANT  A
 MANUFACTURER  OR  DISTRIBUTOR  THE  ABILITY TO DO ANYTHING THAT WOULD BE
 PROHIBITED UNDER ARTICLE 16 OR ARTICLE 17-A OF THE VEHICLE  AND  TRAFFIC
 LAW.
   §  8.  This  act  shall  take  effect on the same date and in the same
 manner as a chapter of the laws of 2017, amending the  general  business
 law  and  the  vehicle  and traffic law relating to requiring automobile
 brokers to be licensed, as proposed  in  legislative  bills  numbers  S.
 5380-B  and  A.  6884-B,  takes  effect; provided that the amendments to
 subdivision 6 of section 415 of the vehicle  and  traffic  law  made  by
 section  five  of this act shall be subject to the expiration and rever-
 sion of such subdivision pursuant to section 13 of part U1 of chapter 62
 of the laws of 2003, as amended, when upon such date the  provisions  of
 section six of this act shall take effect.