Assembly Actions - Lowercase Senate Actions - UPPERCASE |
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Feb 24, 2020 | print number 6655e |
Feb 24, 2020 | amend (t) and recommit to consumer affairs and protection |
Jan 08, 2020 | referred to consumer affairs and protection |
Jun 15, 2019 | print number 6655d |
Jun 15, 2019 | amend and recommit to consumer affairs and protection |
Jun 14, 2019 | print number 6655c |
Jun 14, 2019 | amend and recommit to consumer affairs and protection |
Jun 11, 2019 | print number 6655b |
Jun 11, 2019 | amend and recommit to consumer affairs and protection |
May 24, 2019 | print number 6655a |
May 24, 2019 | amend and recommit to consumer affairs and protection |
Mar 14, 2019 | referred to consumer affairs and protection |
assembly Bill A6655E
2019-2020 Legislative Session
Relates to designating new automotive broker businesses
Sponsored By
CARROLL
Archive: Last Bill Status - In Assembly Committee
- Introduced
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
Your Voice
Actions
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view actions (12)
Co-Sponsors
Peter Abbate
Albert A. Stirpe
Karines Reyes
Michael DenDekker
- view additional co-sponsors
Al Taylor
Steven Cymbrowitz
Inez E. Dickens
Michael G. Miller
Anthony D'Urso
Steven Englebright
Daniel Rosenthal
Sandy Galef
Richard Gottfried
Philip Ramos
Joe DeStefano
John K. Mikulin
Doug Smith
Nader sayegh
Jaime R. Williams
Vivian Cook
Thomas Abinanti
David McDonough
Dan Quart
Rebecca Seawright
Mike LiPetri
Mike Reilly
Brian D. Miller
Nily Rozic
Anthony H. Palumbo
Harvey Epstein
Nathalia Fernandez
Sean Ryan
Phil Steck
Catalina Cruz
Stacey Pheffer Amato
Victor M. Pichardo
Andrew Raia
Edward Ra
Michael Benedetto
Kevin M. Byrne
Jonathan Jacobson
Multi-Sponsors
Carmen De La Rosa
Peter Lawrence
Jo Anne Simon
A6655 - Details
A6655 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 6655 2019-2020 Regular Sessions I N A S S E M B L Y March 14, 2019 ___________ Introduced by M. of A. CARROLL -- read once and referred to the Commit- tee on Consumer Affairs and Protection AN ACT to amend the vehicle and traffic law and the general business law, in relation to designating new automotive broker businesses THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 415 of the vehicle and traffic law is amended by adding a new paragraph n to read as follows: N. "NEW AUTOMOBILE BROKER BUSINESS" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION FOUR OF SECTION SEVEN HUNDRED THIRTY-SIX OF THE GENERAL BUSINESS LAW. § 2. Section 736 of the general business law is amended by adding a new subdivision 4 to read as follows: 4. "NEW 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 A PREVIOUSLY UNREGISTERED AUTOMOBILE AS AGENT, BROKER, OR INTERMEDIARY FOR A CONSUMER. "NEW AUTOMOBILE BROKER BUSINESS" DOES NOT INCLUDE ANY PERSON REGISTERED AS A NEW VEHICLE DEALER FOR THE NEW AUTOMOBILE BRAND OR BRANDS FOR WHICH SUCH SERVICES ARE PROVIDED, PURSUANT TO ARTICLE SIXTEEN OF THE VEHICLE AND TRAFFIC LAW NOR ANY BONA FIDE EMPLOYEE, AS OPPOSED TO AN INDEPENDENT CONTRACTOR, OF SUCH A REGIS- TERED DEALER WHILE ACTING FOR SUCH DEALER. FOR THE PURPOSES HEREOF, ANY EMPLOYEE WHO, PURSUANT TO DEPARTMENT OF LABOR GUIDELINES, RULES AND REGULATIONS, WOULD BE AN INDEPENDENT CONTRACTOR FOR A REGISTERED DEALER SHALL NOT BE DEEMED A BONA FIDE EMPLOYEE. § 3. Subdivision 3-a and paragraph b-3 of subdivision 5 of section 415 of the vehicle and traffic law, as added by chapter 477 of the laws of 2017, are amended to read as follows: EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
LBD08916-04-9 A. 6655 2 3-a. Automobile broker business [registration] OR NEW AUTOMOBILE BROKER BUSINESS. No person shall engage in the automobile broker busi- ness, THE NEW AUTOMOBILE BROKER BUSINESS or represent or advertise that he or she is engaged or intends to engage in the automobile broker busi- ness OR NEW AUTOMOBILE BROKER BUSINESS in this state, unless there shall have been issued to him or her a certificate of registration as an auto- mobile broker business OR NEW AUTOMOBILE BROKER BUSINESS, AS THE CASE MAY BE, by the commissioner under this section pursuant to an applica- tion for registration submitted pursuant to subdivision five of this section. b-3. In the case of an application for registration as an automobile broker business OR NEW 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 information concerning the surety company. § 4. Subdivision 5 of section 415 of the vehicle and traffic law is amended by adding a new paragraph e to read as follows: E. BEFORE APPLICATION FOR A NEW AUTOMOBILE BROKER BUSINESS IS APPROVED, THE APPLICANT MUST HAVE SUBMITTED ALONG WITH THE APPLICATION, WRITTEN CONFIRMATION FROM THE NEW MOTOR VEHICLE MANUFACTURER AUTHORIZING SUCH APPLICANT TO SERVE AS A BROKER FOR THE SALE OR LEASE OF THE LINES OR MAKES OF THE NEW MOTOR VEHICLES WHICH APPLICANT PROPOSES TO BROKER FROM THE LOCATIONS DESCRIBED IN THE APPLICATION. § 5. Subdivision 1 of section 736-a of the general business law, as added by chapter 477 of the laws of 2017, is amended to read as follows: 1. No person shall engage in business as an automobile broker business OR AS A NEW AUTOMOBILE BROKER BUSINESS, as SUCH TERMS ARE defined in section seven hundred thirty-six of this article, without first having been issued a certificate of registration for an automobile broker busi- ness OR NEW AUTOMOBILE BROKER BUSINESS pursuant to paragraph c of subdi- vision seven of section four hundred fifteen of the vehicle and traffic law. § 6. Section 737 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 737. Advance fees prohibited. No automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS shall solicit, receive or collect from a consumer any fee, or commission, in advance of the performance of those services specified in the contract as required by section seven hundred thirty-eight of this article. § 7. The opening paragraph of subdivision 1 of section 738 of the general business law, as amended by chapter 28 of the laws of 2018, is amended to read as follows: Every contract between a consumer and an automobile broker business, WHICH FOR THE PURPOSES OF THIS SECTION SHALL INCLUDE NEW AUTOMOBILE BROKER BUSINESSES, for the purchase of an automobile shall be in writ- ing, 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: § 8. Section 740 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 740. Escrow required for advance payments. All monies paid by a consumer to an automobile broker business OR A NEW AUTOMOBILE BROKER BUSINESS in connection with a transaction covered by this article shall A. 6655 3 be trust funds in the possession of such automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS and shall be deposited by it within five days after receipt thereof, in an account in a banking organization within the state. The automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS shall thereupon notify in writing the consumer, giving the name and address of the banking organization and the amount deposit- ed. The monies shall be held on deposit until fully applied to the contract price at the time the automobile is delivered to the consumer, unless sooner repaid in accordance with the provisions of this article. § 9. Section 740-a of the general business law, as added by chapter 579 of the laws of 2011 and subdivision 1 as amended by chapter 477 of the laws of 2017, is amended to read as follows: § 740-a. Automobile broker business AND NEW AUTOMOBILE BROKER BUSINESS surety bond. 1. Automobile broker businesses AND NEW AUTOMOBILE BROKER BUSINESSES shall obtain and continue in effect a surety bond in an amount of one hundred thousand dollars executed by a surety company authorized to transact business in the state by the department of finan- cial 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' OR NEW 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. 2. Recovery against a bond may be made by a person, including the state, who obtains a judgment against the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS for an act or omission on which the bond is conditioned if the act or omission occurred during the term of the bond. The total liability imposed on the surety under this section for all breaches of the bond condition is limited to the face amount of the bond. Such liability may include, but is not limited to, the amount of the valid bank drafts, including checks, drawn by the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS for the purchase of motor vehicles. In no event shall the surety on a bond be liable for total claims in excess of the bond amount, regardless of the number or nature of claims made against the bond or the number of years the bond remained in force. 3. Any surety issuing a bond pursuant to this subdivision shall be required to provide sixty days' notice to the secretary of state prior to the effective date of cancellation of the bond. § 10. Section 741 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 741. Deceptive acts prohibited. It is hereby declared to be a decep- tive trade practice and unlawful for an automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS to misrepresent directly or indirectly in its advertising, promotional materials, sales presentation, or in any manner: 1. The nature of the services to be performed; 2. The time within which the services will be performed; 3. The cost of the services to be performed; and 4. The ability of the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS to perform the services. § 11. Section 741-a of the general business law, as amended by chapter 477 of the laws of 2017, is amended to read as follows: § 741-a. Advertising. Automobile broker businesses AND NEW AUTOMOBILE BROKER BUSINESSES shall clearly and conspicuously disclose the following A. 6655 4 in all advertisements in any medium, and in any print advertisement such disclosures shall not appear in any footnotes and shall be situated in the top half of any such advertisement in an easily readable typeface: (a) That the automobile broker business OR NEW AUTOMOBILE BROKER BUSI- NESS is not a registered new motor vehicle dealer but is a registered automobile broker business OR NEW 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 OR NEW 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 OR NEW AUTOMOBILE BROKER BUSINESS for services rendered. Details of such compensation shall be provided by the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS upon request by the consumer; and (d) That no warranty repair services will be provided by the automo- bile broker business OR NEW AUTOMOBILE BROKER BUSINESS. § 12. Section 415 of the vehicle and traffic law is amended by adding a new subdivision 21 to read as follows: 21. PENALTIES AND RIGHTS OF ACTION FOR FAILURE TO OBTAIN A CERTIFICATE OF REGISTRATION AS A NEW AUTOMOBILE BROKER PURSUANT TO SUBDIVISION THREE-A AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION. A. THE COMMISSIONER, OR ANY PERSON DESIGNATED BY HIM OR HER, MAY PROCEED AGAINST A PARTY WHO HAS OPERATED AS A NEW AUTOMOBILE BROKER WITHOUT CERTIFICATE OF REGISTRATION IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE, IN ANY ONE OR MORE PROCEEDINGS AND BY ORDER REQUIRE THE OFFEND- ING PARTY TO PAY THE PEOPLE OF THIS STATE A PENALTY IN A SUM NOT TO EXCEED TWO THOUSAND DOLLARS FOR EACH VIOLATION FOUND TO HAVE BEEN COMMITTED. CIVIL PENALTIES ASSESSED UNDER THIS SUBDIVISION SHALL BE PAID TO THE COMMISSIONER FOR DEPOSIT INTO THE STATE TREASURY, AND UNPAID CIVIL PENALTIES MAY BE RECOVERED BY THE COMMISSIONER IN A CIVIL ACTION IN THE NAME OF THE COMMISSIONER. FOR THE PURPOSES OF THIS SUBDIVISION, A "VIOLATION" SHALL MEAN EACH VEHICLE SOLD OR LEASED TO A CONSUMER FOR WHICH THE PARTY THAT FAILED TO OBTAIN CERTIFICATION AS A NEW AUTOMOBILE BROKER HAS SERVED AS A NEW AUTOMOBILE BROKER. B. IN ADDITION TO ANY CIVIL ACTION BROUGHT BY THE COMMISSIONER OR ANY PERSON APPOINTED BY HIM, ANY COMPLAINANT OR COMPLAINANTS WHO ARE AGGRIEVED BY ANY VIOLATION OF SUBDIVISION THREE-A AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION, SHALL BE ENTITLED TO SUE FOR AND HAVE INJUNCTIVE RELIEF AND DAMAGES AGAINST, ANY PARTY IN VIOLATION OF SUBDI- VISION THREE-A AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION IN ANY COURT OF THE STATE HAVING JURISDICTION OVER THE PARTIES. IN ANY SUCH JUDICIAL ACTION OR PROCEEDING, THE COURT MAY ALSO AWARD NECESSARY COSTS AND DISBURSEMENTS PLUS REASONABLE ATTORNEY'S FEES AND COSTS. § 13. This act shall take effect immediately; provided that all auto- mobile brokers registered on the effective date of this act shall have ninety days to come into compliance with the provisions of this act.
Co-Sponsors
Peter Abbate
Albert A. Stirpe
Karines Reyes
Michael DenDekker
- view additional co-sponsors
Al Taylor
Steven Cymbrowitz
Inez E. Dickens
Michael G. Miller
Anthony D'Urso
Steven Englebright
Daniel Rosenthal
Sandy Galef
Richard Gottfried
Philip Ramos
Joe DeStefano
John K. Mikulin
Doug Smith
Nader sayegh
Jaime R. Williams
Vivian Cook
Thomas Abinanti
David McDonough
Dan Quart
Rebecca Seawright
Mike LiPetri
Mike Reilly
Brian D. Miller
Nily Rozic
Anthony H. Palumbo
Harvey Epstein
Nathalia Fernandez
Sean Ryan
Phil Steck
Catalina Cruz
Stacey Pheffer Amato
Victor M. Pichardo
Andrew Raia
Edward Ra
Michael Benedetto
Kevin M. Byrne
Jonathan Jacobson
David Buchwald
Alicia Hyndman
N. Nick Perry
Fred Thiele
Michaelle C. Solages
Charles Lavine
Steve Stern
Andrew R. Garbarino
Judy Griffin
Multi-Sponsors
Carmen De La Rosa
Michael J. Fitzpatrick
Andrew Hevesi
Peter Lawrence
- view additional multi-sponsors
Jo Anne Simon
A6655A - Details
A6655A - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 6655--A 2019-2020 Regular Sessions I N A S S E M B L Y March 14, 2019 ___________ Introduced by M. of A. CARROLL, ABBATE, STIRPE, REYES, DenDEKKER, TAYLOR, CYMBROWITZ, DICKENS, M. G. MILLER, D'URSO, ENGLEBRIGHT, D. ROSENTHAL, GALEF, GOTTFRIED, RAMOS, DeSTEFANO, MIKULIN, SMITH, SAYEGH, WILLIAMS, COOK, ABINANTI, McDONOUGH, QUART, SEAWRIGHT, LiPE- TRI, REILLY, B. MILLER, ROZIC, PALUMBO, EPSTEIN, FERNANDEZ, RYAN, STECK, CRUZ, PHEFFER AMATO, PICHARDO, RAIA, RA, BENEDETTO, BYRNE, JACOBSON, BUCHWALD, HYNDMAN -- Multi-Sponsored by -- M. of A. DE LA ROSA, LAWRENCE, SIMON -- read once and referred to the Committee on Consumer Affairs and Protection -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee AN ACT to amend the vehicle and traffic law and the general business law, in relation to designating new automotive broker businesses THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 415 of the vehicle and traffic law is amended by adding a new paragraph n to read as follows: N. "NEW AUTOMOBILE BROKER BUSINESS" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION FOUR OF SECTION SEVEN HUNDRED THIRTY-SIX OF THE GENERAL BUSINESS LAW. § 2. Section 736 of the general business law is amended by adding a new subdivision 4 to read as follows: 4. "NEW 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 A PREVIOUSLY UNREGISTERED AUTOMOBILE; THROUGH A NEW MOTOR VEHICLE DEALER, AS AGENT, BROKER, OR INTERMEDIARY FOR A CONSUMER. "NEW AUTOMOBILE BROKER BUSINESS" DOES NOT INCLUDE ANY PERSON REGISTERED AS A NEW VEHICLE DEALER FOR THE NEW AUTOMOBILE BRAND OR BRANDS FOR WHICH EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
LBD08916-06-9 A. 6655--A 2 SUCH SERVICES ARE PROVIDED, PURSUANT TO ARTICLE SIXTEEN OF THE VEHICLE AND TRAFFIC LAW NOR ANY BONA FIDE EMPLOYEE OF SUCH A REGISTERED DEALER WHILE ACTING FOR SUCH DEALER. § 3. Subdivision 3-a and paragraph b-3 of subdivision 5 of section 415 of the vehicle and traffic law, as added by chapter 477 of the laws of 2017, are amended to read as follows: 3-a. Automobile broker business [registration] OR NEW AUTOMOBILE BROKER BUSINESS. No person shall engage in the automobile broker busi- ness, THE NEW AUTOMOBILE BROKER BUSINESS or represent or advertise that he or she is engaged or intends to engage in the automobile broker busi- ness OR NEW AUTOMOBILE BROKER BUSINESS in this state, unless there shall have been issued to him or her a certificate of registration as an auto- mobile broker business OR NEW AUTOMOBILE BROKER BUSINESS, AS THE CASE MAY BE, by the commissioner under this section pursuant to an applica- tion for registration submitted pursuant to subdivision five of this section. THE COMMISSIONER SHALL NOT ISSUE ANY CERTIFICATE OF REGISTRA- TION AUTHORIZED BY THIS SECTION TO ANY FRANCHISOR, MANUFACTURER, DISTRIBUTOR, DISTRIBUTOR BRANCH OR FACTORY BRANCH, AS SUCH TERMS ARE DEFINED IN SECTION FOUR HUNDRED SIXTY-TWO OF THIS TITLE, OR TO ANY SUBSIDIARY, AFFILIATE OR CONTROLLED ENTITY THEREOF. b-3. In the case of an application for registration as an automobile broker business OR NEW 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 AND A STATEMENT INDICATING ANY INTEREST IN THE APPLICANT'S BUSINESS ENTITY BY A PERSON OR ENTITY DESCRIBED IN PARAGRAPH F OF SUBDIVISION SEVEN OF THIS SECTION. If the bond is to be issued by an authorized agent of the sure- ty company licensed by the state, then the name and address of that agent may be provided in lieu of the information concerning the surety company. § 4. Subdivision 5 of section 415 of the vehicle and traffic law is amended by adding a new paragraph e to read as follows: E. BEFORE APPLICATION FOR A NEW AUTOMOBILE BROKER BUSINESS IS APPROVED, THE APPLICANT MUST HAVE SUBMITTED ALONG WITH THE APPLICATION, WRITTEN CONFIRMATION FROM THE NEW MOTOR VEHICLE MANUFACTURER AND/OR DISTRIBUTOR PERMITTING THE APPLICANT TO SERVE AS AN APPROVED REGISTERED BROKER FOR THE SALE OR LEASE, THROUGH A NEW MOTOR VEHICLE DEALER, OF A NEW MOTOR VEHICLE OF THE LINE MAKES WHICH THE APPLICANT PROPOSES TO BROKER FROM THE GEOGRAPHIC LOCATION DESCRIBED IN THE APPLICATION. THE GEOGRAPHIC LOCATION INCLUDED IN THE APPLICATION SHALL BE SUBJECT TO THE PROVISIONS OF ARTICLE SEVENTEEN-A OF THIS TITLE REGARDING FRANCHISED AUTOMOBILE DEALERS. § 5. Subdivision 1 of section 736-a of the general business law, as added by chapter 477 of the laws of 2017, is amended and a new subdivi- sion 3 is added to read as follows: 1. (A) No person shall engage in business as an automobile broker business OR AS A NEW AUTOMOBILE BROKER BUSINESS, as SUCH TERMS ARE defined in section seven hundred thirty-six of this article, without first having been issued a certificate of registration for an automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS pursuant to paragraph c of subdivision seven of section four hundred fifteen of the vehicle and traffic law. A CERTIFICATE OF REGISTRATION FOR A NEW AUTOMOBILE BROKER BUSINESS IS VALID FOR A PERIOD OF TWO YEARS. (B) NO NEW AUTOMOBILE BROKER BUSINESS SHALL REPRESENT OR ACCEPT PAYMENT FROM, EITHER DIRECTLY OR INDIRECTLY, A FRANCHISOR, MANUFACTURER A. 6655--A 3 AND/OR DISTRIBUTOR, AS SUCH TERMS ARE DEFINED IN SECTIONS FOUR HUNDRED FIFTEEN AND FOUR HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW. 3. THE COMMISSIONER OF MOTOR VEHICLES SHALL MAKE NECESSARY RULES AND REGULATIONS AS MAY BE APPROPRIATE FOR THE PROPER ENFORCEMENT OF THE PROVISIONS OF THIS SECTION. § 6. The general business law is amended by adding a new section 741-c to read as follows: § 741-C. PROHIBITIONS RELATED TO PRIVATE INFORMATION. NO PERSON REGIS- TERED UNDER THIS ARTICLE SHALL REQUEST, HANDLE, STORE OR TRANSMIT THE PRIVATE INFORMATION, AS SUCH TERM IS DEFINED IN PARAGRAPH (B) OF SUBDI- VISION ONE OF SECTION EIGHT HUNDRED NINETY-NINE-AA OF THIS CHAPTER, OF ANY CONSUMER. § 7. Section 737 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 737. Advance fees prohibited. No automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS shall solicit, receive or collect from a consumer any fee, or commission, in advance of the performance of those services specified in the contract as required by section seven hundred thirty-eight of this article. § 8. The opening paragraph of subdivision 1 of section 738 of the general business law, as amended by chapter 28 of the laws of 2018, is amended to read as follows: Every contract between a consumer and an automobile broker business, WHICH FOR THE PURPOSES OF THIS SECTION SHALL INCLUDE NEW AUTOMOBILE BROKER BUSINESSES, for the purchase of an automobile shall be in writ- ing, 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: § 9. Section 740 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 740. Escrow required for advance payments. All monies paid by a consumer to an automobile broker business OR A NEW AUTOMOBILE BROKER BUSINESS in connection with a transaction covered by this article shall be trust funds in the possession of such automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS and shall be deposited by it within five days after receipt thereof, in an account in a banking organization within the state. The automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS shall thereupon notify in writing the consumer, giving the name and address of the banking organization and the amount deposit- ed. The monies shall be held on deposit until fully applied to the contract price at the time the automobile is delivered to the consumer, unless sooner repaid in accordance with the provisions of this article. § 10. Section 740-a of the general business law, as added by chapter 579 of the laws of 2011 and subdivision 1 as amended by chapter 477 of the laws of 2017, is amended to read as follows: § 740-a. Automobile broker business AND NEW AUTOMOBILE BROKER BUSINESS surety bond. 1. Automobile broker businesses AND NEW AUTOMOBILE BROKER BUSINESSES shall obtain and continue in effect a surety bond in an amount of one hundred thousand dollars executed by a surety company authorized to transact business in the state by the department of finan- cial 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' OR NEW 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 A. 6655--A 4 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. 2. Recovery against a bond may be made by a person, including the state, who obtains a judgment against the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS for an act or omission on which the bond is conditioned if the act or omission occurred during the term of the bond. The total liability imposed on the surety under this section for all breaches of the bond condition is limited to the face amount of the bond. Such liability may include, but is not limited to, the amount of the valid bank drafts, including checks, drawn by the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS for the purchase of motor vehicles. In no event shall the surety on a bond be liable for total claims in excess of the bond amount, regardless of the number or nature of claims made against the bond or the number of years the bond remained in force. 3. Any surety issuing a bond pursuant to this subdivision shall be required to provide sixty days' notice to the secretary of state prior to the effective date of cancellation of the bond. § 11. Section 741 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 741. Deceptive acts prohibited. It is hereby declared to be a decep- tive trade practice and unlawful for an automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS to misrepresent directly or indirectly in its advertising, promotional materials, sales presentation, or in any manner: 1. The nature of the services to be performed AND IN THE CASE OF A NEW AUTOMOBILE BROKER THAT A THIRD PARTY WILL BE PAYING FOR ANY SUCH SERVICES; 2. The time within which the services will be performed; 3. The cost of the services to be performed; [and] 4. The ability of the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS to perform the services; AND 5. THAT THE AUTOMOBILE BROKER BUSINESS OR NEW AUTOMOBILE BROKER BUSI- NESS IS AFFILIATED WITH ANY AUTOMOBILE MANUFACTURER AND/OR DISTRIBUTOR, PROVIDED, HOWEVER, THAT A NEW AUTOMOBILE BROKER BUSINESS MAY STATE THE LINE MAKES FOR WHICH IT HOLDS PERMISSION PURSUANT TO SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW. § 12. Section 741-a of the general business law, as amended by chapter 477 of the laws of 2017, is amended to read as follows: § 741-a. Advertising. Automobile broker businesses AND NEW AUTOMOBILE BROKER BUSINESSES shall clearly and conspicuously disclose the following in all advertisements in any medium, and in any print advertisement such disclosures shall not appear in any footnotes and shall be situated in the top half of any such advertisement in an easily readable typeface: (a) That the automobile broker business OR NEW AUTOMOBILE BROKER BUSI- NESS is not a registered new motor vehicle dealer but is a registered automobile broker business OR NEW 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 OR NEW 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 OR NEW AUTOMOBILE BROKER BUSINESS for services rendered. Details of such compensation shall be provided by the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS upon request by the consumer; and A. 6655--A 5 (d) That no warranty repair services will be provided by the automo- bile broker business OR NEW AUTOMOBILE BROKER BUSINESS. § 13. Section 415 of the vehicle and traffic law is amended by adding a new subdivision 21 to read as follows: 21. PENALTIES AND RIGHTS OF ACTION FOR FAILURE TO OBTAIN A CERTIFICATE OF REGISTRATION AS A NEW AUTOMOBILE BROKER PURSUANT TO SUBDIVISION THREE-A AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION. A. THE COMMISSIONER, OR ANY PERSON DESIGNATED BY HIM OR HER, MAY PROCEED AGAINST A PARTY WHO HAS OPERATED AS A NEW AUTOMOBILE BROKER WITHOUT CERTIFICATE OF REGISTRATION IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE, IN ANY ONE OR MORE PROCEEDINGS AND BY ORDER REQUIRE THE OFFEND- ING PARTY TO PAY THE PEOPLE OF THIS STATE A PENALTY IN A SUM NOT TO EXCEED TWO THOUSAND DOLLARS FOR EACH VIOLATION FOUND TO HAVE BEEN COMMITTED. CIVIL PENALTIES ASSESSED UNDER THIS SUBDIVISION SHALL BE PAID TO THE COMMISSIONER FOR DEPOSIT INTO THE STATE TREASURY, AND UNPAID CIVIL PENALTIES MAY BE RECOVERED BY THE COMMISSIONER IN A CIVIL ACTION IN THE NAME OF THE COMMISSIONER. FOR THE PURPOSES OF THIS SUBDIVISION, A "VIOLATION" SHALL MEAN EACH VEHICLE SOLD OR LEASED TO A CONSUMER FOR WHICH THE PARTY THAT FAILED TO OBTAIN CERTIFICATION AS A NEW AUTOMOBILE BROKER HAS SERVED AS A NEW AUTOMOBILE BROKER. B. IN ADDITION TO ANY CIVIL ACTION BROUGHT BY THE COMMISSIONER OR ANY PERSON APPOINTED BY HIM, ANY PERSONS INJURED BY ANY VIOLATION OF SUBDI- VISION THREE-A AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION, SHALL BE ENTITLED TO SUE FOR AND HAVE INJUNCTIVE RELIEF AND DAMAGES AGAINST, ANY PARTY IN VIOLATION OF SUBDIVISION THREE-A AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION IN ANY COURT OF THE STATE HAVING JURISDICTION OVER THE PARTIES. IN THE CASE OF A NEW MOTOR VEHICLE DEAL- ER, INJURY SHALL INCLUDE THE SALE OR LEASE OF A NEW MOTOR VEHICLE TO A PERSON RESIDING WITHIN THE RELEVANT MARKET AREA OF SUCH DEALER. THE TERM "RELEVANT MARKET AREA" SHALL HAVE THE SAME MEANING AS IN SUBDIVISION FIFTEEN OF SECTION FOUR HUNDRED SIXTY-TWO OF THIS TITLE. IN ANY SUCH JUDICIAL ACTION OR PROCEEDING, THE COURT MAY AWARD REASONABLE ATTORNEY'S FEES AND COSTS. § 14. Subdivision 2 of section 463 of the vehicle and traffic law is amended by adding three new paragraphs (ll), (mm) and (nn) to read as follows: (LL) TO ISSUE WRITTEN CONFIRMATION TO A NEW AUTOMOBILE BROKER BUSINESS PERMITTING SUCH BUSINESS TO SERVE AS AN APPROVED REGISTERED BROKER FOR THE SALE OR LEASE, THROUGH A NEW MOTOR VEHICLE DEALER, OF SUCH MANUFAC- TURER'S NEW MOTOR VEHICLES, UNLESS THE MANUFACTURER PROVIDES NOTICE PURSUANT TO THE TERMS OF THIS PARAGRAPH. ALL DEALERS THAT HAVE A RELE- VANT MARKET AREA THAT ENCOMPASSES THE PROPOSED SITE SHALL BE ENTITLED TO WRITTEN NOTICE, VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED, INFORMING THEM OF THE PROPOSED APPROVAL OF A NEW AUTOMOBILE BROKER BUSINESS. ANY NEW MOTOR VEHICLE DEALER MAY INSTITUTE AN ADJUDICATORY PROCEEDING OR ACTION AS PROVIDED IN SECTION FOUR HUNDRED SIXTY-NINE OF THIS ARTICLE TO PROTEST THE ISSUANCE OF SUCH WRITTEN CONFIRMATION TO A NEW AUTOMOBILE BROKER BUSINESS PERMITTING SUCH BUSINESS TO SERVE AS AN APPROVED REGIS- TERED BROKER FOLLOWING RECEIPT OF SUCH NOTICE, OR FOLLOWING THE END OF ANY APPEAL PROCEDURE PROVIDED BY THE MANUFACTURER. IN ANY ADJUDICATORY PROCEEDING OR ACTION BROUGHT BY THE DEALER, THE MANUFACTURER SHALL HAVE THE BURDEN OF PROVING THAT THERE EXISTS GOOD CAUSE TO PERMIT SUCH NEW AUTOMOBILE BROKER BUSINESS TO SERVE AS AN APPROVED REGISTERED BROKER AND THAT SUCH PERMISSION WILL NOT HARM THE DEALER WITHIN THE RELEVANT MARKET AREA. INSTITUTION OF AN ACTION PURSUANT TO THIS PARAGRAPH SHALL SERVE TO STAY, WITHOUT BOND, THE EFFECTIVENESS OF THE WRITTEN CONFIRMATION OF A. 6655--A 6 SUCH MANUFACTURER UNTIL A FINAL JUDGMENT HAS BEEN RENDERED IN A PROCEED- ING OR ACTION AS PROVIDED IN SECTION FOUR HUNDRED SIXTY-NINE OF THIS ARTICLE. A MANUFACTURER SHALL NOT ISSUE WRITTEN CONFIRMATION PERMITTING A NEW AUTOMOBILE BROKER BUSINESS TO SERVE AS AN APPROVED REGISTERED BROKER TO ANY PERSON OR ENTITY WHICH HAS BEEN CITED FOR ANY VIOLATION OF ARTICLE THIRTY-FIVE-B OF THE GENERAL BUSINESS LAW, OR WHICH HAS A BUSI- NESS RELATIONSHIP WITH ANY NEW FRANCHISED MOTOR VEHICLE DEALER NOT LICENSED TO OPERATE AS A NEW MOTOR VEHICLE DEALER WITHIN THE STATE, OR DOES NOT HAVE A RELEVANT MARKET AREA THAT INCLUDES ANY PORTION OF THE STATE. FOR THE PURPOSES OF THIS PARAGRAPH "BUSINESS RELATIONSHIP" SHALL MEAN ACTIVITY THAT INCLUDES PAYING A NEW AUTOMOBILE BROKER BUSINESS BY A NEW MOTOR VEHICLE DEALER NOT LICENSED TO OPERATE AS A NEW MOTOR VEHICLE DEALER WITHIN THE STATE, OR DOES NOT HAVE A RELEVANT MARKET AREA THAT INCLUDES ANY PORTION OF THE STATE IN CONNECTION WITH THE SALE OR LEADER OF A NEW MOTOR VEHICLE. (MM) TO ISSUE WRITTEN CONFIRMATION TO A NEW AUTOMOBILE BROKER BUSINESS THAT PERMITS SUCH BUSINESS TO SERVE AS AN APPROVED REGISTERED BROKER FOR A PERIOD EXCEEDING TWO YEARS. (NN) FOR INCENTIVE PAYMENTS, BONUSES, HOLDBACKS OR SIMILAR PAYMENTS RELATED TO THE SALE OR LEASE OF A NEW MOTOR VEHICLE THAT HAS BEEN ARRANGED, ASSISTED, FACILITATED OR EFFECTED IN A PARTICULAR RELEVANT MARKET AREA, TO DENY A FRANCHISED MOTOR VEHICLE DEALER LOCATED IN SUCH RELEVANT MARKET AREA A PAYMENT OF EQUAL VALUE AS HAS BEEN AWARDED TO ANOTHER FRANCHISED MOTOR VEHICLE DEALER. NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED TO AUTHORIZE ANY INCENTIVE PAYMENT, BONUS, HOLDBACK OR SIMILAR PAYMENT TO ANY AUTOMOBILE BROKER BUSINESS OR NEW AUTOMOBILE BROKER BUSINESS, AS SUCH TERMS ARE DEFINED IN SECTION SEVEN HUNDRED THIRTY-SIX OF THE GENERAL BUSINESS LAW. § 15. Section 465 of the vehicle and traffic law is amended by adding a new subdivision 8 to read as follows: 8. A NEW VEHICLE MANUFACTURER SHALL REQUIRE ITS FRANCHISEES TO MAIN- TAIN A RECORD OF ALL SALES OR LEASES ARRANGED, ASSISTED, FACILITATED OR EFFECTED BY EACH NEW AUTOMOBILE BROKER BUSINESS TO WHICH IT HAS PROVIDED WRITTEN CONFIRMATION PERMITTING IT TO SERVE AS A NEW AUTOMOBILE BROKER BUSINESS, AS SUCH TERM IS DEFINED IN SECTION SEVEN HUNDRED THIRTY-SIX OF THE GENERAL BUSINESS LAW. NEW VEHICLE MANUFACTURERS SHALL FURTHER MAIN- TAIN A RECORD OF ALL INCENTIVES PAID TO ANY FRANCHISEE ATTRIBUTABLE TO ANY SALE OR LEASE THAT HAS BEEN ARRANGED, ASSISTED, FACILITATED OR EFFECTED BY A NEW AUTOMOBILE BROKER BUSINESS. FOR SALES OR LEASES ARRANGED, ASSISTED, FACILITATED OR EFFECTED BY ANY NEW AUTOMOBILE BROKER BUSINESS OPERATING OR BASED IN A PARTICULAR RELEVANT MARKET AREA, A NEW VEHICLE MANUFACTURER SHALL FURNISH A RECORD OF INCENTIVES PAID TO ANY FRANCHISEE ATTRIBUTABLE TO ANY SUCH SALES OR LEASES TO THE FRANCHISEE OPERATING OR BASED WITHIN ANY SUCH RELEVANT MARKET AREA. § 16. This act shall take effect immediately; provided that all auto- mobile brokers registered on the effective date of this act shall have ninety days to come into compliance with the provisions of this act.
Co-Sponsors
Peter Abbate
Albert A. Stirpe
Karines Reyes
Michael DenDekker
- view additional co-sponsors
Al Taylor
Steven Cymbrowitz
Inez E. Dickens
Michael G. Miller
Anthony D'Urso
Steven Englebright
Daniel Rosenthal
Sandy Galef
Richard Gottfried
Philip Ramos
Joe DeStefano
John K. Mikulin
Doug Smith
Nader sayegh
Jaime R. Williams
Vivian Cook
Thomas Abinanti
David McDonough
Dan Quart
Rebecca Seawright
Mike LiPetri
Mike Reilly
Brian D. Miller
Nily Rozic
Anthony H. Palumbo
Harvey Epstein
Nathalia Fernandez
Sean Ryan
Phil Steck
Catalina Cruz
Stacey Pheffer Amato
Victor M. Pichardo
Andrew Raia
Edward Ra
Michael Benedetto
Kevin M. Byrne
Jonathan Jacobson
David Buchwald
Alicia Hyndman
N. Nick Perry
Fred Thiele
Michaelle C. Solages
Charles Lavine
Steve Stern
Andrew R. Garbarino
Judy Griffin
Multi-Sponsors
Carmen De La Rosa
Michael J. Fitzpatrick
Andrew Hevesi
Peter Lawrence
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Jo Anne Simon
A6655B - Details
A6655B - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 6655--B 2019-2020 Regular Sessions I N A S S E M B L Y March 14, 2019 ___________ Introduced by M. of A. CARROLL, ABBATE, STIRPE, REYES, DenDEKKER, TAYLOR, CYMBROWITZ, DICKENS, M. G. MILLER, D'URSO, ENGLEBRIGHT, D. ROSENTHAL, GALEF, GOTTFRIED, RAMOS, DeSTEFANO, MIKULIN, SMITH, SAYEGH, WILLIAMS, COOK, ABINANTI, McDONOUGH, QUART, SEAWRIGHT, LiPE- TRI, REILLY, B. MILLER, ROZIC, PALUMBO, EPSTEIN, FERNANDEZ, RYAN, STECK, CRUZ, PHEFFER AMATO, PICHARDO, RAIA, RA, BENEDETTO, BYRNE, JACOBSON, BUCHWALD, HYNDMAN, PERRY, THIELE, SOLAGES, LAVINE, STERN, GARBARINO, GRIFFIN -- Multi-Sponsored by -- M. of A. DE LA ROSA, FITZPATRICK, HEVESI, LAWRENCE, SIMON -- 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 -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee AN ACT to amend the vehicle and traffic law and the general business law, in relation to designating new automotive broker businesses THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph a of subdivision 1 of section 415 of the vehicle and traffic law, as amended by chapter 554 of the laws of 2015, is amended and a new paragraph n is 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 OR LEASE 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 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
LBD08916-07-9 A. 6655--B 2 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. FOR THE PURPOSES OF THIS SECTION, "OFFERS FOR SALE OR LEASE" SHALL INCLUDE, BUT NOT BE LIMITED TO, THE ACT OF DRAWING THE PUBLIC'S ATTEN- TION TO, OR THE PRESENTATION OR DISPLAY OF ANY MOTOR VEHICLE, INCLUDING THE POSTING OF IMAGES OF ANY SUCH VEHICLE, TOGETHER WITH AN OFFER TO PROVIDE, THE PROVISION OF, OR A REPRESENTATION THAT SUCH PERSON MAY PROVIDE A SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE LEASE OF SUCH NEW MOTOR VEHICLE, EXCEPT THIS MEANING SHALL NOT APPLY TO ANY ACTIVITY OF A COOPERATIVE OR OTHER ADVERTISING PROGRAM OR FUND AS DESCRIBED IN ANY FRANCHISE, AS SUCH TERM IS DEFINED BY SUBDIVISION SIX OF SECTION FOUR HUNDRED SIXTY-TWO OF THIS TITLE. 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. N. "NEW AUTOMOBILE BROKER BUSINESS" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION FOUR OF SECTION SEVEN HUNDRED THIRTY-SIX OF THE GENERAL BUSINESS LAW. § 2. Section 736 of the general business law is amended by adding a new subdivision 4 to read as follows: 4. "NEW 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 A PREVIOUSLY UNREGISTERED AUTOMOBILE; THROUGH A NEW MOTOR VEHICLE DEALER, AS AGENT, BROKER, OR INTERMEDIARY FOR A CONSUMER. "NEW AUTOMOBILE BROKER BUSINESS" DOES NOT INCLUDE ANY PERSON REGISTERED AS A NEW VEHICLE DEALER FOR THE NEW AUTOMOBILE BRAND OR BRANDS FOR WHICH SUCH SERVICES ARE PROVIDED, PURSUANT TO ARTICLE SIXTEEN OF THE VEHICLE AND TRAFFIC LAW NOR ANY BONA FIDE EMPLOYEE OF SUCH A REGISTERED DEALER WHILE ACTING FOR SUCH DEALER. § 3. Subdivision 3-a and paragraph b-3 of subdivision 5 of section 415 of the vehicle and traffic law, as added by chapter 477 of the laws of 2017, are amended to read as follows: 3-a. Automobile broker business [registration] OR NEW AUTOMOBILE BROKER BUSINESS. A. No person shall engage in the automobile broker business, THE NEW AUTOMOBILE BROKER BUSINESS or represent or advertise that he or she is engaged or intends to engage in the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS in this state, unless there shall have been issued to him or her a certificate of registration as an automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS, AS THE CASE MAY BE, by the commissioner under this section pursuant to an application for registration submitted pursuant to subdivision five of this section. B. THE COMMISSIONER SHALL NOT ISSUE ANY CERTIFICATE OF REGISTRATION AUTHORIZED BY THIS SECTION TO ANY DEALER, FRANCHISEE, FRANCHISOR, MANUFACTURER, DISTRIBUTOR, DISTRIBUTOR BRANCH OR FACTORY BRANCH, AS SUCH TERMS ARE DEFINED IN SECTION FOUR HUNDRED SIXTY-TWO OF THIS TITLE, OR TO ANY SUBSIDIARY, AFFILIATE OR CONTROLLED ENTITY THEREOF. C. AS A CONDITION OF ANY CERTIFICATE OF REGISTRATION ISSUED PURSUANT TO THIS SUBDIVISION, A NEW AUTOMOBILE BROKER BUSINESS SHALL HAVE, AND CONTINUOUSLY MAINTAIN, A PLACE OF BUSINESS IN THIS STATE FOR WHICH IT SHALL KEEP AND MAINTAIN EVIDENCE THAT ALL NECESSARY APPROVALS, LICENSES A. 6655--B 3 AND/OR PERMITS HAVE BEEN OBTAINED FROM ALL LOCAL GOVERNING BODIES TO OPERATE SUCH PLACE OF BUSINESS WITH CUSTOMER OR CLIENT TRAFFIC. D. EVERY REGISTERED NEW AUTOMOBILE BROKER SHALL PROMINENTLY AND CONSPICUOUSLY POST, IN SUCH A MANNER THAT IT IS LIKELY TO BE NOTICEABLE TO ANYONE ENTERING ITS PREMISES, ITS OFFICIAL BUSINESS CERTIFICATE OF REGISTRATION AND A SIGN, WHICH SIGN SHALL CLEARLY STATE: "(NAME OF REGISTERED NEW AUTOMOBILE BROKER) IS NOT A FRANCHISED NEW MOTOR VEHICLE DEALERSHIP. WE ARE NOT AUTHORIZED TO PERFORM RECALL OR ORIGINAL FACTORY WARRANTY WORK. IF YOU ORDER A SEARCH FOR A NEW MOTOR VEHICLE FROM THIS BROKER, WE MUST SOLICIT AT LEAST THREE BONA FIDE BIDS FOR A NEW MOTOR VEHICLE ON YOUR BEHALF, INCLUDING FROM YOUR LOCAL DEAL- ER." E. A NEW AUTOMOBILE BROKER BUSINESS SHALL NOT PROVIDE, OFFER TO PROVIDE, OR REPRESENT THAT HE OR SHE WILL PROVIDE A SERVICE OF PURCHAS- ING, ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF A PREVIOUSLY UNREGISTERED AUTOMOBILE WITH A DEALER LOCATED IN ANY OTHER STATE UNLESS SUCH STATE AFFORDS LAWFUL MEANS FOR THE SAME BUSINESS ACTIVITY, SUCH STANDARDS AND REQUIREMENTS ARE EQUIVALENT TO THOSE CONTAINED IN THIS ARTICLE AND ARTICLE THIRTY-FIVE-B OF THE GENERAL BUSINESS LAW, THE NEW AUTOMOBILE BROKER BUSINESS IS REGISTERED, PERMIT- TED OR LICENSED TO PERFORM SUCH BUSINESS ACTIVITY IN SUCH OTHER STATE AND IS OTHERWISE IN GOOD STANDING WITH EACH GOVERNMENTAL AGENCY OF SUCH OTHER STATE RESPONSIBLE FOR REGULATING SUCH BUSINESS ACTIVITY. THE COMMISSIONER OF MOTOR VEHICLES SHALL BE EMPOWERED TO DETERMINE THE SUBSTANTIAL EQUIVALENCE OF SUCH OTHER STATE LAWS PERTAINING TO THE REGISTRATION, PERMITTING OR LICENSURE OF SUCH BUSINESSES. b-3. In the case of an application for registration as an automobile broker business OR NEW 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 AND A STATEMENT INDICATING ANY INTEREST IN THE APPLICANT'S BUSINESS ENTITY BY A PERSON OR ENTITY DESCRIBED IN PARAGRAPH (F) OF SUBDIVISION ONE OR PARAGRAPH F OF SUBDIVISION SEVEN OF THIS SECTION. 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 information concerning the surety company. § 4. Subdivision 1 of section 736-a of the general business law, as added by chapter 477 of the laws of 2017, is amended and a new subdivi- sion 3 is added to read as follows: 1. (A) No person shall engage in business as an automobile broker business OR AS A NEW AUTOMOBILE BROKER BUSINESS, as SUCH TERMS ARE defined in section seven hundred thirty-six of this article, without first having been issued a certificate of registration for an automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS pursuant to paragraph c of subdivision seven of section four hundred fifteen of the vehicle and traffic law. A CERTIFICATE OF REGISTRATION FOR A NEW AUTOMOBILE BROKER BUSINESS IS VALID FOR A PERIOD OF TWO YEARS. (B) NO NEW AUTOMOBILE BROKER BUSINESS SHALL REPRESENT OR ACCEPT PAYMENT FROM, EITHER DIRECTLY OR INDIRECTLY, A FRANCHISEE, DEALER, FRAN- CHISOR, MANUFACTURER AND/OR DISTRIBUTOR, AS SUCH TERMS ARE DEFINED IN SECTIONS FOUR HUNDRED FIFTEEN AND FOUR HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW. (C) NO NEW AUTOMOBILE BROKER BUSINESS SHALL PROVIDE, OFFER TO PROVIDE, OR REPRESENT THAT HE OR SHE WILL PROVIDE A SERVICE OF PURCHASING, ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF A PREVIOUSLY UNREGISTERED AUTOMOBILE WITH A DEALER LOCATED IN ANY OTHER A. 6655--B 4 STATE UNLESS SUCH STATE AFFORDS LAWFUL MEANS FOR THE SAME BUSINESS ACTIVITY, SUCH STANDARDS AND REQUIREMENTS SET FORTH IN THE LAWS OF SUCH OTHER STATE ARE EQUIVALENT TO THOSE CONTAINED IN THIS ARTICLE, THE NEW AUTOMOBILE BROKER BUSINESS HAS BEEN REGISTERED, PERMITTED OR LICENSED TO PERFORM SUCH BUSINESS ACTIVITY IN SUCH OTHER STATE AND IS OTHERWISE IN GOOD STANDING WITH EACH AGENCY OF SUCH OTHER STATE RESPONSIBLE FOR REGU- LATING SUCH BUSINESS ACTIVITY. THE SECRETARY OF STATE SHALL BE EMPOWERED TO DETERMINE THE SUBSTANTIAL EQUIVALENCE OF SUCH OTHER STATE LAWS PERTAINING TO THE REGULATION OF SUCH BUSINESS ACTIVITY, INCLUDING CONSUMER PROTECTIONS IN ANY SUCH LAW. 3. THE COMMISSIONER OF MOTOR VEHICLES SHALL MAKE NECESSARY RULES AND REGULATIONS AS MAY BE APPROPRIATE FOR THE PROPER ENFORCEMENT OF THE PROVISIONS OF THIS SECTION. § 5. The general business law is amended by adding a new section 741-c to read as follows: § 741-C. PROHIBITIONS RELATED TO PRIVATE INFORMATION. NO PERSON REGIS- TERED UNDER THIS ARTICLE SHALL REQUEST, RECEIVE, ACCEPT, HANDLE, STORE OR TRANSMIT THE PRIVATE INFORMATION, AS SUCH TERM IS DEFINED IN PARA- GRAPH (B) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED NINETY-NINE-AA OF THIS CHAPTER, OF ANY CONSUMER. § 6. Section 737 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 737. Advance fees prohibited. No automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS shall solicit, receive or collect from a consumer any fee, or commission, in advance of the performance of those services specified in the contract as required by section seven hundred thirty-eight of this article. § 7. The opening paragraph of subdivision 1 of section 738 of the general business law, as amended by chapter 28 of the laws of 2018, is amended to read as follows: Every contract between a consumer and an automobile broker business, WHICH FOR THE PURPOSES OF THIS SECTION SHALL INCLUDE NEW AUTOMOBILE BROKER BUSINESSES, for the purchase of an automobile shall be in writ- ing, 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: § 8. Section 740 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 740. Escrow required for advance payments. All monies paid by a consumer to an automobile broker business OR A NEW AUTOMOBILE BROKER BUSINESS in connection with a transaction covered by this article shall be trust funds in the possession of such automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS and shall be deposited by it within five days after receipt thereof, in an account in a banking organization within the state. The automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS shall thereupon notify in writing the consumer, giving the name and address of the banking organization and the amount deposit- ed. The monies shall be held on deposit until fully applied to the contract price at the time the automobile is delivered to the consumer, unless sooner repaid in accordance with the provisions of this article. § 9. Section 740-a of the general business law, as added by chapter 579 of the laws of 2011 and subdivision 1 as amended by chapter 477 of the laws of 2017, is amended to read as follows: § 740-a. Automobile broker business AND NEW AUTOMOBILE BROKER BUSINESS surety bond. 1. Automobile broker businesses shall obtain and continue A. 6655--B 5 in effect a surety bond in an amount of one hundred thousand dollars executed by a surety company authorized to transact business in the state by the department of financial services of the state or its successor. NEW AUTOMOBILE BROKER BUSINESSES SHALL OBTAIN AND CONTINUE IN EFFECT A SURETY BOND IN AN AMOUNT OF TWO HUNDRED FIFTY THOUSAND DOLLARS EXECUTED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THE STATE BY THE 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' OR NEW 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. 2. Recovery against a bond may be made by a person, including the state, who obtains a judgment against the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS for an act or omission on which the bond is conditioned if the act or omission occurred during the term of the bond. The total liability imposed on the surety under this section for all breaches of the bond condition is limited to the face amount of the bond. Such liability may include, but is not limited to, the amount of the valid bank drafts, including checks, drawn by the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS for the purchase of motor vehicles. In no event shall the surety on a bond be liable for total claims in excess of the bond amount, regardless of the number or nature of claims made against the bond or the number of years the bond remained in force. 3. Any surety issuing a bond pursuant to this subdivision shall be required to provide sixty days' notice to the secretary of state prior to the effective date of cancellation of the bond. § 10. Section 741 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 741. Deceptive acts AND FRAUDS prohibited. 1. It is hereby declared to be a deceptive trade practice and unlawful for an automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS to misrepresent directly or indirectly in its advertising, promotional materials, sales presenta- tion, or in any manner: [1.] (A) The nature of the services to be performed AND IN THE CASE OF A NEW AUTOMOBILE BROKER THAT A THIRD PARTY WILL BE PAYING FOR ANY SUCH SERVICES; [2.] (B) The time within which the services will be performed; [3.] (C) The cost of the services to be performed; [and 4.] (D) The ability of the automobile broker business OR NEW AUTOMO- BILE BROKER BUSINESS to perform the services; AND (E) THAT THE AUTOMOBILE BROKER BUSINESS OR NEW AUTOMOBILE BROKER BUSI- NESS IS AFFILIATED WITH ANY AUTOMOBILE MANUFACTURER AND/OR DISTRIBUTOR, INCLUDING THE USE OF ANY TRADEMARKS OR COPYRIGHTED MATERIAL WITHOUT THE EXPRESS, WRITTEN CONSENT OF THE OWNER OF SUCH MATERIAL. 2. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER BUSINESS OR NEW AUTOMOBILE BROKER BUSINESS TO REFUSE TO DISCLOSE TO A MOTOR VEHICLE DEALER OR NEW MOTOR VEHICLE DEALER THE REGISTRATION NUMBER PROVIDED BY THE DEPARTMENT OF MOTOR VEHICLES PURSUANT TO SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW. FURTHERMORE, IT SHALL ALSO BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER BUSINESS OR NEW AUTOMOBILE BROKER BUSINESS TO MAKE ANY MISREPRESENTATION TO A MOTOR VEHICLE DEALER OR NEW MOTOR VEHICLE DEALER REGARDING THE ELIGIBIL- A. 6655--B 6 ITY OF ANY CONSUMER FOR ANY DISCOUNTS, REDUCTIONS OR ANY BENEFIT PROGRAMS REGARDING THE SALE OR LEASE OF A MOTOR VEHICLE. 3. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR A NEW AUTOMOBILE BROKER BUSINESS TO FAIL TO MAKE A BONA FIDE ATTEMPT TO OBTAIN A QUOTE OR OFFER FROM AT LEAST THREE UNAFFILIATED DEALERS ON BEHALF OF A PROSPEC- TIVE BUYER OR LESSEE FOR A VEHICLE MEETING THE PROSPECTIVE BUYER OR LESSEE'S SPECIFICATIONS, INCLUDING THE NEW MOTOR VEHICLE DEALER LOCATED IN CLOSEST PROXIMITY TO THE ADDRESS OF SUCH PROSPECTIVE BUYER OR LESSEE'S HOME OR, IN THE CASE OF ANY ENTITY, ITS PLACE OF DOING BUSI- NESS. 4. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR A NEW AUTOMOBILE BROKER BUSINESS TO FAIL TO ACT FOR THE BENEFIT OF THE PROSPECTIVE BUYER OR LESSEE, INCLUDING BY FAILING TO MAKE REASONABLE EFFORTS TO OBTAIN THE LOWEST POSSIBLE PRICE, DOWN PAYMENT, NUMBER OF PAYMENTS, AMOUNT OF PAYMENTS, FINANCE CHARGES, ANNUAL PERCENTAGE RATE AND/OR FEES FOR A NEW MOTOR VEHICLE THAT MEETS THE SPECIFICATIONS OF SUCH PROSPECTIVE BUYER OR LESSEE. § 11. Section 741-a of the general business law, as amended by chapter 477 of the laws of 2017, is amended to read as follows: § 741-a. Advertising. Automobile broker businesses AND NEW AUTOMOBILE BROKER BUSINESSES shall clearly and conspicuously disclose the following in all advertisements in any medium, and in any print advertisement such disclosures shall not appear in any footnotes and shall be situated in the top half of any such advertisement in an easily readable typeface: (a) That the automobile broker business OR NEW AUTOMOBILE BROKER BUSI- NESS is not a registered new motor vehicle dealer but is a registered automobile broker business OR NEW 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 OR NEW 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 OR NEW AUTOMOBILE BROKER BUSINESS for services rendered. Details of such compensation shall be provided by the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS upon request by the consumer; and (d) That no warranty repair services will be provided by the automo- bile broker business OR NEW AUTOMOBILE BROKER BUSINESS. § 12. Section 741-b of the general business law, as added by chapter 28 of the laws of 2018, is amended to read as follows: § 741-b. [Disclosure] DISCLOSURES. 1. An automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS shall provide a disclosure at the time such automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS takes an order to search for a leased OR PURCHASED vehicle meeting the prospective BUYER OR lessee's specifications. Such disclosure shall provide the amount of any fees, commissions or other valuable consider- ation the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS expects to receive FOR ANY ASSISTANCE THE AUTOMOBILE BROKER BUSINESS PROVIDES IN EFFECTING THE LEASE OR PURCHASE TRANSACTION, INCLUDING ANY REASONABLY FORESEEABLE FEES OR CHARGES, INCLUDING DELIVERY FEES. IN THE CASE OF AN AUTOMOBILE BROKER BUSINESS THIS SHALL INCLUDE, if known, ANY PAYMENTS from a dealer, lessor or any other person or entity for any assistance the automobile broker business provides in effecting the lease OR PURCHASE 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 A. 6655--B 7 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. NOTHING IN THIS SUBDIVISION SHALL BE CONSTRUED TO PERMIT THE PAYMENT OF ANY FEES, COMMISSIONS OR OTHER VALUABLE CONSID- ERATION TO A NEW AUTOMOBILE BROKER BUSINESS BY ANY DEALER. 2. A NEW AUTOMOBILE BROKER BUSINESS SHALL PROVIDE AN ADDITIONAL DISCLOSURE AT THE TIME SUCH NEW AUTOMOBILE BROKER BUSINESS TAKES AN ORDER TO SEARCH FOR A VEHICLE MEETING THE PROSPECTIVE BUYER OR LESSEE'S SPECIFICATIONS. SUCH ADDITIONAL DISCLOSURE SHALL STATE THAT THE BROKER SHALL MAKE A BONA FIDE ATTEMPT TO OBTAIN A BID, QUOTE OR OFFER FROM AT LEAST THREE UNAFFILIATED DEALERS ON BEHALF OF THE PROSPECTIVE BUYER OR LESSEE FOR A VEHICLE MEETING THE PROSPECTIVE BUYER OR LESSEE'S SPECIFI- CATIONS, INCLUDING FROM THE NEW MOTOR VEHICLE DEALER OF SUCH LINE MAKE LOCATED CLOSEST TO THE HOME OR PLACE OF BUSINESS OF SUCH PROSPECTIVE BUYER AND THAT THE NEW AUTOMOBILE BROKER HAS A DUTY TO ACT FOR THE BENE- FIT OF THE PROSPECTIVE BUYER OR LESSEE, INCLUDING BY MAKING REASONABLE EFFORTS TO OBTAIN THE LOWEST POSSIBLE PRICE, DOWN PAYMENT, NUMBER OF PAYMENTS, AMOUNT OF PAYMENTS, FINANCE CHARGES, ANNUAL PERCENTAGE RATE AND/OR FEES. 3. EACH DISCLOSURE REQUIRED BY THIS SECTION SHALL BE ACKNOWLEDGED IN WRITING BY EACH RESPECTIVE PROSPECTIVE BUYER OR LESSEE. § 13. Section 742 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 742. Action for recovery of damages by consumer. Any consumer injured by a violation of this article or by the breach by an automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS of a contract which has been entered into pursuant to section seven hundred thirty-nine of this article may bring an action for recovery of damages. Judgment shall be entered in favor of a consumer in an amount not to exceed three times the actual damages, but in no case less than the amount paid by the buyer to the automobile broker business OR NEW AUTOMOBILE BROKER BUSI- NESS. The court may award reasonable attorney's fees to a prevailing plaintiff. § 14. Section 743 of the general business law, as amended by chapter 372 of the laws of 2016, is amended to read as follows: § 743. Enforcement [by]. 1. BY attorney general. In addition to the other remedies provided, whenever there shall be a violation of this article, application may be made by the attorney general in the name of the people of the state of New York to a court or justice having juris- diction by a special proceeding to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such violations; and if it shall appear to the satisfac- tion of the court or justice that the defendant has, in fact, violated this article, an injunction may be issued by such court or justice, enjoining and restraining any further violation, without requiring proof that any person has, in fact, been injured or damaged thereby. In any such proceeding, the court may make allowances to the attorney general as provided in paragraph six of subdivision (a) of section eighty-three hundred three of the civil practice law and rules, and direct restitu- tion. Whenever the court shall determine that a violation of this arti- cle has occurred, the court shall impose a civil penalty of not less than one thousand dollars and not more than three thousand dollars for each violation. IN THE CASE OF AN AUTOMOBILE BROKER, NOT LESS THAN ONE THOUSAND DOLLARS AND NOT MORE THAN THREE THOUSAND DOLLARS FOR EACH A. 6655--B 8 VIOLATION; AND IN THE CASE OF A NEW AUTOMOBILE BROKER, NOT LESS THAN FOUR THOUSAND DOLLARS AND NOT MORE THAN TEN THOUSAND DOLLARS FOR EACH VIOLATION. In connection with any such proposed application, the attor- ney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil prac- tice law and rules. In connection with any such proposed application, the attorney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules. 2. BY LOCAL AUTHORITIES. MUNICIPALITIES MAY, PURSUANT TO LOCAL LAW, ACT UPON THE BUSINESS ACTIVITY THAT IS THE SUBJECT OF THIS ARTICLE, PROVIDED THAT NO LOCAL GOVERNMENT MAY DIMINISH THE PROTECTIONS OR REQUIREMENTS OF THIS ARTICLE OR PREVENT ENFORCEMENT OF ITS PROVISIONS BY APPROPRIATE STATE OFFICIALS. 3. BY PRIVATE PARTY. ANY PERSONS INJURED BY ANY VIOLATION OF THIS ARTICLE MAY BRING AN ACTION IN HIS OR HER OWN NAME TO ENJOIN SUCH UNLAW- FUL ACT OR PRACTICE, AN ACTION TO RECOVER HIS OR HER ACTUAL DAMAGES AND STATUTORY DAMAGES OF FOUR THOUSAND DOLLARS, OR BOTH SUCH ACTIONS. IN THE CASE OF A NEW MOTOR VEHICLE DEALER, INJURY SHALL INCLUDE DEPRIVING A NEW MOTOR VEHICLE DEALER LOCATED CLOSEST TO A LESSEE OR PURCHASER THE OPPOR- TUNITY TO BID ON SUCH LEASE OR PURCHASE AS ENTITLED BY THIS ARTICLE. DAMAGES SHALL INCLUDE INCENTIVE PAYMENTS, BONUSES, HOLDBACKS OR SIMILAR PAYMENTS THAT WOULD HAVE BEEN REALIZED HAD A LESSEE OR PURCHASER PURCHASED OR LEASED SUCH VEHICLE FROM THE NEW MOTOR VEHICLE DEALER IN CLOSEST PROXIMITY TO SUCH LESSEE OR PURCHASER BUT FOR THE ACTIONS OF A PERSON WHO KNOWINGLY AIDED THE VIOLATION OF THE PROVISIONS OF THIS ARTI- CLE. IN ANY SUCH JUDICIAL ACTION OR PROCEEDING, THE COURT MAY AWARD REASONABLE ATTORNEY'S FEES AND COSTS. SUCH ACTIONS MAY BE BROUGHT REGARDLESS OF WHETHER OR NOT THE UNDERLYING VIOLATION IS CONSUMER-OR- IENTED OR HAS A PUBLIC IMPACT. THE COURT MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES IF THE COURT FINDS THE DEFENDANT WILLFULLY OR KNOWINGLY VIOLATED THIS SECTION. THE COURT SHALL AWARD REASONABLE ATTORNEY'S FEES AND COSTS TO A PREVAILING PLAINTIFF. § 15. Section 415 of the vehicle and traffic law is amended by adding two new subdivisions 21 and 22 to read as follows: 21. PENALTIES AND RIGHTS OF ACTION FOR FAILURE TO OBTAIN A CERTIFICATE OF REGISTRATION AS A NEW AUTOMOBILE BROKER PURSUANT TO SUBDIVISION THREE-A AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION. A. THE COMMISSIONER, OR ANY PERSON DESIGNATED BY HIM OR HER, MAY PROCEED AGAINST A PARTY WHO HAS OPERATED AS A NEW AUTOMOBILE BROKER WITHOUT CERTIFICATE OF REGISTRATION IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE, IN ANY ONE OR MORE PROCEEDINGS AND BY ORDER REQUIRE THE OFFEND- ING PARTY TO PAY THE PEOPLE OF THIS STATE A PENALTY IN A SUM NOT TO EXCEED TWO THOUSAND DOLLARS FOR EACH VIOLATION FOUND TO HAVE BEEN COMMITTED. CIVIL PENALTIES ASSESSED UNDER THIS SUBDIVISION SHALL BE PAID TO THE COMMISSIONER FOR DEPOSIT INTO THE STATE TREASURY, AND UNPAID CIVIL PENALTIES MAY BE RECOVERED BY THE COMMISSIONER IN A CIVIL ACTION IN THE NAME OF THE COMMISSIONER. FOR THE PURPOSES OF THIS SUBDIVISION, A "VIOLATION" SHALL MEAN EACH VEHICLE SOLD OR LEASED TO A CONSUMER FOR WHICH THE PARTY THAT FAILED TO OBTAIN CERTIFICATION AS A NEW AUTOMOBILE BROKER HAS SERVED AS A NEW AUTOMOBILE BROKER. B. IN ADDITION TO ANY CIVIL ACTION BROUGHT BY THE COMMISSIONER OR ANY PERSON APPOINTED BY HIM, ANY PERSONS INJURED BY ANY VIOLATION OF SUBDI- VISION THREE-A AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION, SHALL BE ENTITLED TO SUE FOR AND HAVE INJUNCTIVE RELIEF AND DAMAGES A. 6655--B 9 AGAINST, ANY PARTY IN VIOLATION OF SUBDIVISION THREE-A AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION IN ANY COURT OF THE STATE HAVING JURISDICTION OVER THE PARTIES. IN THE CASE OF A NEW MOTOR VEHICLE DEAL- ER, INJURY SHALL INCLUDE DEPRIVING THE NEW MOTOR VEHICLE DEALER LOCATED CLOSEST TO A LESSEE OR PURCHASER THE OPPORTUNITY TO BID ON SUCH LEASE OR PURCHASE AS ENTITLED BY THIS ARTICLE. DAMAGES SHALL INCLUDE INCENTIVE PAYMENTS, BONUSES, HOLDBACKS OR SIMILAR PAYMENTS THAT WOULD HAVE BEEN REALIZED HAD A LESSEE OR PURCHASER PURCHASED OR LEASED SUCH VEHICLE FROM THE NEW MOTOR VEHICLE DEALER IN CLOSEST PROXIMITY TO SUCH LESSEE OR PURCHASER BUT FOR THE ACTIONS OF A PERSON WHO KNOWINGLY AIDED THE VIOLATION OF THE PROVISIONS OF THIS ARTICLE. IN ANY SUCH JUDICIAL ACTION OR PROCEEDING, THE COURT MAY AWARD REASONABLE ATTORNEY'S FEES AND COSTS. SUCH ACTIONS MAY BE BROUGHT REGARDLESS OF WHETHER OR NOT THE UNDERLYING VIOLATION IS CONSUMER-ORIENTED OR HAS A PUBLIC IMPACT. THE COURT MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES IF THE COURT FINDS THE DEFENDANT WILLFULLY OR KNOWINGLY VIOLATED THIS SECTION. THE COURT SHALL AWARD REASONABLE ATTORNEY'S FEES AND COSTS TO A PREVAILING PLAINTIFF. 22. NEW AUTOMOBILE BROKER RECORD REQUIREMENTS. A. NEW AUTOMOBILE BROKERS SHALL MAINTAIN A PERMANENTLY BOUND BOOK IN WHICH SHALL BE RECORDED THE MAKE, MODEL, YEAR COLOR AND VEHICLE IDENTIFICATION NUMBER OF ALL PREVIOUSLY UNREGISTERED AUTOMOBILES FOR WHICH SUCH BROKER HAS PROVIDED A SERVICE OF PURCHASING, ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF SUCH AUTOMOBILE WITHIN ANY PRECEDING SIX-YEAR PERIOD. SUCH BOOK SHALL ALSO HAVE RECORDED A RECORD OF THE NAME AND ADDRESS OF THE PURCHASER OR LESSOR OF SUCH AUTOMOBILE, THE DATE OF SALE OR COMMENCEMENT OF LEASE OF SUCH AUTOMOBILE AND THE NAME AND ADDRESS OF THE DEALER FROM WHICH THE AUTOMOBILE WAS PURCHASED OR LEASED. B. NEW AUTOMOBILE BROKERS SHALL MAINTAIN A PERMANENTLY BOUND BOOK IN WHICH SHALL BE RECORDED ALL COMPLETED ORDERS TO SEARCH FOR A PREVIOUSLY UNREGISTERED AUTOMOBILE. SUCH BOOK SHALL ALSO HAVE RECORDED A RECORD OF THE DATE OF SUCH ORDER, THE NAME AND ADDRESS OF THE PERSON OR ENTITY ORDERING SUCH SEARCH, THE AUTOMOBILE SPECIFICATIONS PROVIDED BY SUCH PROSPECTIVE BUYER OR LESSEE AND THE NAME AND ADDRESS OF THE DEALERS SOLICITED FOR A QUOTE OR OFFER ON BEHALF OF SUCH PROSPECTIVE BUYER OR LESSEE. C. SUCH BOOKS SHALL BE OPEN FOR INSPECTION BY THE COMMISSIONER, OR HIS OR HER AGENT, DURING REASONABLE BUSINESS HOURS. THE COMMISSIONER MAY ESTABLISH BY RULE THE FORM OF ANY SUCH BOOK. D. AS AN ALTERNATIVE TO A BOUND BOOK, A NEW AUTOMOBILE BROKER MAY USE A COMPUTER AND SOFTWARE APPROVED BY THE DEPARTMENT TO MAINTAIN THE RECORDS REQUIRED TO BE KEPT BY THIS SECTION, PROVIDED ALL INFORMATION REQUIRED BY PARAGRAPHS A AND B OF THIS SECTION ARE RECORDED AND THE RECORDS CONFORM TO SUCH ADDITIONAL REQUIREMENTS AS DETERMINED BY THE COMMISSIONER. § 16. Section 465 of the vehicle and traffic law is amended by adding a new subdivision 8 to read as follows: 8. A FRANCHISOR MAY REQUIRE A FRANCHISEE TO SUBMIT TO A FRANCHISOR THE NAME AND REGISTRATION NUMBER OF ANY NEW AUTOMOBILE BROKER BUSINESS THAT ARRANGED, ASSISTED, FACILITATED OR EFFECTED THE PURCHASE OR LEASE OF ANY VEHICLE FROM SUCH DEALER. A FRANCHISOR MAY CHARGE BACK THE FRANCHISEE ANY SALES, ADVERTISING OR MARKETING INCENTIVE PAYMENT OR ANY OTHER PAYMENT OR BENEFIT ASSOCIATED WITH THE SALE OR LEASE OF SUCH VEHICLE FOR FAILURE TO SUBMIT SUCH INFORMATION. § 17. This act shall take effect immediately; provided that all auto- mobile brokers registered on the effective date of this act shall have ninety days to come into compliance with the provisions of this act.
Co-Sponsors
Peter Abbate
Albert A. Stirpe
Karines Reyes
Michael DenDekker
- view additional co-sponsors
Al Taylor
Steven Cymbrowitz
Inez E. Dickens
Michael G. Miller
Anthony D'Urso
Steven Englebright
Daniel Rosenthal
Sandy Galef
Richard Gottfried
Philip Ramos
Joe DeStefano
John K. Mikulin
Doug Smith
Nader sayegh
Jaime R. Williams
Vivian Cook
Thomas Abinanti
David McDonough
Dan Quart
Rebecca Seawright
Mike LiPetri
Mike Reilly
Brian D. Miller
Nily Rozic
Anthony H. Palumbo
Harvey Epstein
Nathalia Fernandez
Sean Ryan
Phil Steck
Catalina Cruz
Stacey Pheffer Amato
Victor M. Pichardo
Andrew Raia
Edward Ra
Michael Benedetto
Kevin M. Byrne
Jonathan Jacobson
David Buchwald
Alicia Hyndman
N. Nick Perry
Fred Thiele
Michaelle C. Solages
Charles Lavine
Steve Stern
Andrew R. Garbarino
Judy Griffin
Multi-Sponsors
Carmen De La Rosa
Michael J. Fitzpatrick
Andrew Hevesi
Peter Lawrence
- view additional multi-sponsors
Jo Anne Simon
A6655C - Details
A6655C - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 6655--C 2019-2020 Regular Sessions I N A S S E M B L Y March 14, 2019 ___________ Introduced by M. of A. CARROLL, ABBATE, STIRPE, REYES, DenDEKKER, TAYLOR, CYMBROWITZ, DICKENS, M. G. MILLER, D'URSO, ENGLEBRIGHT, D. ROSENTHAL, GALEF, GOTTFRIED, RAMOS, DeSTEFANO, MIKULIN, SMITH, SAYEGH, WILLIAMS, COOK, ABINANTI, McDONOUGH, QUART, SEAWRIGHT, LiPE- TRI, REILLY, B. MILLER, ROZIC, PALUMBO, EPSTEIN, FERNANDEZ, RYAN, STECK, CRUZ, PHEFFER AMATO, PICHARDO, RAIA, RA, BENEDETTO, BYRNE, JACOBSON, BUCHWALD, HYNDMAN, PERRY, THIELE, SOLAGES, LAVINE, STERN, GARBARINO, GRIFFIN -- Multi-Sponsored by -- M. of A. DE LA ROSA, FITZPATRICK, HEVESI, LAWRENCE, SIMON -- 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 -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the vehicle and traffic law and the general business law, in relation to designating new automotive broker businesses THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph a of subdivision 1 of section 415 of the vehicle and traffic law, as amended by chapter 554 of the laws of 2015, is amended and a new paragraph n is 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 OR LEASE more than five motor vehicles, motorcycles or trailers in any calendar year or who displays or permits the display of three or EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
LBD08916-13-9 A. 6655--C 2 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. FOR THE PURPOSES OF THIS SECTION, "OFFERS FOR SALE OR LEASE" SHALL INCLUDE, BUT NOT BE LIMITED TO, THE ACT OF DRAWING THE PUBLIC'S ATTEN- TION TO, OR THE PRESENTATION OR DISPLAY OF ANY MOTOR VEHICLE, INCLUDING THE POSTING OF IMAGES OF ANY SUCH VEHICLE, TOGETHER WITH AN OFFER TO PROVIDE, THE PROVISION OF, OR A REPRESENTATION THAT SUCH PERSON MAY PROVIDE A SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE LEASE OF SUCH NEW MOTOR VEHICLE, EXCEPT THIS MEANING SHALL NOT APPLY TO ANY ACTIVITY OF A COOPERATIVE OR OTHER ADVERTISING PROGRAM OR FUND AS DESCRIBED IN ANY FRANCHISE, AS SUCH TERM IS DEFINED BY SUBDIVISION SIX OF SECTION FOUR HUNDRED SIXTY-TWO OF THIS TITLE. 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. N. "NEW AUTOMOBILE BROKER BUSINESS" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION FOUR OF SECTION SEVEN HUNDRED THIRTY-SIX OF THE GENERAL BUSINESS LAW. § 2. Section 736 of the general business law is amended by adding two new subdivisions 4 and 5 to read as follows: 4. "NEW 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 A PREVIOUSLY UNREGISTERED AUTOMOBILE; THROUGH A NEW MOTOR VEHICLE DEALER, AS AGENT, BROKER, OR INTERMEDIARY FOR A CONSUMER. "NEW AUTOMOBILE BROKER BUSINESS" DOES NOT INCLUDE ANY PERSON REGISTERED AS A NEW VEHICLE DEALER FOR THE NEW AUTOMOBILE BRAND OR BRANDS FOR WHICH SUCH SERVICES ARE PROVIDED, PURSUANT TO ARTICLE SIXTEEN OF THE VEHICLE AND TRAFFIC LAW NOR ANY BONA FIDE EMPLOYEE OF SUCH A REGISTERED DEALER WHILE ACTING FOR SUCH DEALER, NOR ANY MOTOR VEHICLE FRANCHISOR, MANUFAC- TURER OR DISTRIBUTOR FOR THE NEW AUTOMOBILE BRAND OR BRANDS FOR WHICH SUCH SERVICES ARE PROVIDED. 5. NOTWITHSTANDING ANY OTHER SUBDIVISION OF THIS SECTION, THE TERMS "AUTOMOBILE BROKER BUSINESS" AND "NEW AUTOMOBILE BROKER BUSINESS" SHALL NOT INCLUDE ANY ENTITY THAT PROVIDES A SERVICE OF PURCHASING, ARRANGING, ASSISTING, FACILITATING, OR EFFECTING THE PURCHASE OR LEASE OF A PREVI- OUSLY UNREGISTERED AUTOMOBILE AS AN AGENT, BROKER, OR INTERMEDIARY FOR A CONSUMER, IF THAT ENTITY FACILITATES THE PURCHASE OR LEASE OF A NEW MOTOR VEHICLE IN THIS STATE FROM A NEW MOTOR VEHICLE DEALER BY MEANS OF AN ONLINE NEW AUTOMOBILE REFERRAL SERVICE. FOR THE PURPOSES OF THIS SUBDIVISION, "ONLINE NEW AUTOMOBILE REFERRAL SERVICE" MEANS AN ORGANIZA- TION, INCLUDING, BUT NOT LIMITED TO A CORPORATION, LIMITED LIABILITY COMPANY, PARTNERSHIP, SOLE PROPRIETOR, OR ANY OTHER ENTITY, THAT: (A) OPERATES AN INTERACTIVE WEBSITE AND/OR SMARTPHONE APPLICATION THAT FACILITATES THE PROVISION OF SERVICES OR CONSUMMATION OF TRANSACTIONS BY MARKETPLACE ENTITIES AND PERSONS SEEKING SUCH SERVICES OR TRANSACTIONS ON A DIGITAL PLATFORM SPECIFICALLY DESIGNED AND BUILT FOR ONLINE MOTOR VEHICLE LEASE TRANSACTIONS; (B) LISTS MOTOR VEHICLES PROVIDED BY MULTIPLE NEW MOTOR VEHICLE DEAL- ERS IN THIS STATE; A. 6655--C 3 (C) PROVIDES SERVICES, OR THE TRANSACTIONS FACILITATED THEREBY, ON A MULTI-STATE BASIS; AND (D) INVOLVES NO IN-PERSON MEETING AS BETWEEN A PROSPECTIVE LESSEE OR PURCHASER AND THE OPERATOR OF SUCH INTERACTIVE WEBSITE AND/OR SMARTPHONE APPLICATION. § 3. Subdivision 3-a and paragraph b-3 of subdivision 5 of section 415 of the vehicle and traffic law, as added by chapter 477 of the laws of 2017, are amended to read as follows: 3-a. Automobile broker business [registration] OR NEW AUTOMOBILE BROKER BUSINESS. A. No person shall engage in the automobile broker business, THE NEW AUTOMOBILE BROKER BUSINESS or represent or advertise that he or she is engaged or intends to engage in the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS in this state, unless there shall have been issued to him or her a certificate of registration as an automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS, AS THE CASE MAY BE, by the commissioner under this section pursuant to an application for registration submitted pursuant to subdivision five of this section. B. THE COMMISSIONER SHALL NOT ISSUE ANY CERTIFICATE OF REGISTRATION AUTHORIZED BY THIS SUBDIVISION TO ANY DEALER, FRANCHISEE, FRANCHISOR, MANUFACTURER, DISTRIBUTOR, DISTRIBUTOR BRANCH OR FACTORY BRANCH, AS SUCH TERMS ARE DEFINED IN SECTION FOUR HUNDRED SIXTY-TWO OF THIS TITLE, OR TO ANY SUBSIDIARY, AFFILIATE OR CONTROLLED ENTITY THEREOF. C. AS A CONDITION OF ANY CERTIFICATE OF REGISTRATION ISSUED PURSUANT TO THIS SUBDIVISION, A NEW AUTOMOBILE BROKER BUSINESS SHALL HAVE, AND CONTINUOUSLY MAINTAIN, A PLACE OF BUSINESS IN THIS STATE FOR WHICH IT SHALL KEEP AND MAINTAIN EVIDENCE THAT ALL NECESSARY APPROVALS, LICENSES AND/OR PERMITS HAVE BEEN OBTAINED FROM ALL LOCAL GOVERNING BODIES TO OPERATE SUCH PLACE OF BUSINESS WITH CUSTOMER OR CLIENT TRAFFIC. D. EVERY REGISTERED NEW AUTOMOBILE BROKER SHALL PROMINENTLY AND CONSPICUOUSLY POST, IN SUCH A MANNER THAT IT IS LIKELY TO BE NOTICEABLE TO ANYONE ENTERING ITS PREMISES, ITS OFFICIAL BUSINESS CERTIFICATE OF REGISTRATION AND A SIGN, WHICH SIGN SHALL CLEARLY STATE: "(NAME OF REGISTERED NEW AUTOMOBILE BROKER) IS NOT A FRANCHISED NEW MOTOR VEHICLE DEALERSHIP. WE ARE NOT AUTHORIZED OR APPROVED BY A MANUFACTURER OR DISTRIBUTOR TO SELL A MOTOR VEHICLE OR PERFORM RECALL OR ORIGINAL FACTORY WARRANTY WORK. IF YOU ORDER A SEARCH FOR A NEW MOTOR VEHICLE FROM THIS BROKER, WE MUST MAKE A BONA FIDE EFFORT TO SOLICIT BIDS FROM AT LEAST THREE UNAFFILIATED NEW MOTOR VEHICLE DEALERS FOR A NEW MOTOR VEHICLE ON YOUR BEHALF, INCLUDING FROM YOUR LOCAL DEALER." E. A NEW AUTOMOBILE BROKER BUSINESS SHALL NOT PROVIDE, OFFER TO PROVIDE, OR REPRESENT THAT HE OR SHE WILL PROVIDE A SERVICE OF PURCHAS- ING, ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF A PREVIOUSLY UNREGISTERED AUTOMOBILE WITH A DEALER LOCATED IN ANY OTHER STATE UNLESS SUCH STATE AFFORDS LAWFUL MEANS FOR THE SAME BUSINESS ACTIVITY, SUCH STANDARDS AND REQUIREMENTS ARE EQUIVALENT TO THOSE CONTAINED IN THIS ARTICLE AND ARTICLE THIRTY-FIVE-B OF THE GENERAL BUSINESS LAW, THE NEW AUTOMOBILE BROKER BUSINESS IS REGISTERED, PERMIT- TED OR LICENSED TO PERFORM SUCH BUSINESS ACTIVITY IN SUCH OTHER STATE AND IS OTHERWISE IN GOOD STANDING WITH EACH GOVERNMENTAL AGENCY OF SUCH OTHER STATE RESPONSIBLE FOR REGULATING SUCH BUSINESS ACTIVITY. THE COMMISSIONER OF MOTOR VEHICLES SHALL BE EMPOWERED TO DETERMINE THE SUBSTANTIAL EQUIVALENCE OF SUCH OTHER STATE LAWS PERTAINING TO THE REGISTRATION, PERMITTING OR LICENSURE OF SUCH BUSINESSES. F. NOTHING IN THIS SUBDIVISION SHALL BE CONSTRUED TO PROHIBIT A FRAN- CHISOR, MANUFACTURER, OR DISTRIBUTOR FROM SPONSORING ACTIVITIES INTENDED A. 6655--C 4 TO GENERATE LEADS TOWARD THE SALE OR LEASE OF A NEW MOTOR VEHICLE BY A FRANCHISEE. b-3. In the case of an application for registration as an automobile broker business OR NEW 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 AND A STATEMENT INDICATING ANY INTEREST IN THE APPLICANT'S BUSINESS ENTITY BY A PERSON OR ENTITY DESCRIBED IN PARAGRAPH (F) OF SUBDIVISION ONE OR PARAGRAPH F OF SUBDIVISION SEVEN OF THIS SECTION. 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 information concerning the surety company. § 4. Subdivision 1 of section 736-a of the general business law, as added by chapter 477 of the laws of 2017, is amended and a new subdivi- sion 3 is added to read as follows: 1. (A) No person shall engage in business as an automobile broker business OR AS A NEW AUTOMOBILE BROKER BUSINESS, as SUCH TERMS ARE defined in section seven hundred thirty-six of this article, without first having been issued a certificate of registration for an automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS pursuant to paragraph c of subdivision seven of section four hundred fifteen of the vehicle and traffic law. A CERTIFICATE OF REGISTRATION FOR A NEW AUTOMOBILE BROKER BUSINESS IS VALID FOR A PERIOD OF TWO YEARS. (B) NO NEW AUTOMOBILE BROKER BUSINESS SHALL REPRESENT OR ACCEPT PAYMENT FROM, EITHER DIRECTLY OR INDIRECTLY, A FRANCHISEE, DEALER, FRAN- CHISOR, MANUFACTURER AND/OR DISTRIBUTOR, AS SUCH TERMS ARE DEFINED IN SECTIONS FOUR HUNDRED FIFTEEN AND FOUR HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW. (C) NO NEW AUTOMOBILE BROKER BUSINESS SHALL PROVIDE, OFFER TO PROVIDE, OR REPRESENT THAT HE OR SHE WILL PROVIDE A SERVICE OF PURCHASING, ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF A PREVIOUSLY UNREGISTERED AUTOMOBILE WITH A DEALER LOCATED IN ANY OTHER STATE UNLESS SUCH STATE AFFORDS LAWFUL MEANS FOR THE SAME BUSINESS ACTIVITY, SUCH STANDARDS AND REQUIREMENTS SET FORTH IN THE LAWS OF SUCH OTHER STATE ARE EQUIVALENT TO THOSE CONTAINED IN THIS ARTICLE, THE NEW AUTOMOBILE BROKER BUSINESS HAS BEEN REGISTERED, PERMITTED OR LICENSED TO PERFORM SUCH BUSINESS ACTIVITY IN SUCH OTHER STATE AND IS OTHERWISE IN GOOD STANDING WITH EACH AGENCY OF SUCH OTHER STATE RESPONSIBLE FOR REGU- LATING SUCH BUSINESS ACTIVITY. THE COMMISSIONER OF MOTOR VEHICLES SHALL BE EMPOWERED TO DETERMINE THE SUBSTANTIAL EQUIVALENCE OF SUCH OTHER STATE LAWS PERTAINING TO THE REGULATION OF SUCH BUSINESS ACTIVITY, INCLUDING CONSUMER PROTECTIONS IN ANY SUCH LAW. 3. THE COMMISSIONER OF MOTOR VEHICLES SHALL MAKE NECESSARY RULES AND REGULATIONS AS MAY BE APPROPRIATE FOR THE PROPER ENFORCEMENT OF THE PROVISIONS OF THIS SECTION. § 5. The general business law is amended by adding a new section 741-c to read as follows: § 741-C. PROHIBITIONS RELATED TO PRIVATE INFORMATION. NO PERSON REGIS- TERED UNDER THIS ARTICLE SHALL REQUEST, RECEIVE, ACCEPT, HANDLE, STORE OR TRANSMIT THE PRIVATE INFORMATION, AS SUCH TERM IS DEFINED IN PARA- GRAPH (B) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED NINETY-NINE-AA OF THIS CHAPTER, OF ANY CONSUMER. § 6. Section 737 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 737. Advance fees prohibited. No automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS shall solicit, receive or collect from a A. 6655--C 5 consumer any fee, or commission, in advance of the performance of those services specified in the contract as required by section seven hundred thirty-eight of this article. § 7. The opening paragraph of subdivision 1 of section 738 of the general business law, as amended by chapter 28 of the laws of 2018, is amended to read as follows: Every contract between a consumer and an automobile broker business, WHICH FOR THE PURPOSES OF THIS SECTION SHALL INCLUDE NEW AUTOMOBILE BROKER BUSINESSES, for the purchase of an automobile shall be in writ- ing, 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: § 8. Section 740 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 740. Escrow required for advance payments. All monies paid by a consumer to an automobile broker business OR A NEW AUTOMOBILE BROKER BUSINESS in connection with a transaction covered by this article shall be trust funds in the possession of such automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS and shall be deposited by it within five days after receipt thereof, in an account in a banking organization within the state. The automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS shall thereupon notify in writing the consumer, giving the name and address of the banking organization and the amount deposit- ed. The monies shall be held on deposit until fully applied to the contract price at the time the automobile is delivered to the consumer, unless sooner repaid in accordance with the provisions of this article. § 9. Section 740-a of the general business law, as added by chapter 579 of the laws of 2011 and subdivision 1 as amended by chapter 477 of the laws of 2017, is amended to read as follows: § 740-a. Automobile broker business AND NEW AUTOMOBILE BROKER BUSINESS surety bond. 1. Automobile broker businesses shall obtain and continue in effect a surety bond in an amount of one hundred thousand dollars executed by a surety company authorized to transact business in the state by the department of financial services of the state or its successor. NEW AUTOMOBILE BROKER BUSINESSES SHALL OBTAIN AND CONTINUE IN EFFECT A SURETY BOND IN AN AMOUNT OF TWO HUNDRED FIFTY THOUSAND DOLLARS EXECUTED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THE STATE BY THE 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' OR NEW 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. 2. Recovery against a bond may be made by a person, including the state, who obtains a judgment against the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS for an act or omission on which the bond is conditioned if the act or omission occurred during the term of the bond. The total liability imposed on the surety under this section for all breaches of the bond condition is limited to the face amount of the bond. Such liability may include, but is not limited to, the amount of the valid bank drafts, including checks, drawn by the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS for the purchase of motor vehicles. In no event shall the surety on a bond be liable for total A. 6655--C 6 claims in excess of the bond amount, regardless of the number or nature of claims made against the bond or the number of years the bond remained in force. 3. Any surety issuing a bond pursuant to this subdivision shall be required to provide sixty days' notice to the secretary of state prior to the effective date of cancellation of the bond. § 10. Section 741 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 741. Deceptive acts AND FRAUDS prohibited. 1. It is hereby declared to be a deceptive trade practice and unlawful for an automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS to misrepresent directly or indirectly in its advertising, promotional materials, sales presenta- tion, or in any manner: [1.] (A) The nature of the services to be performed AND IN THE CASE OF A NEW AUTOMOBILE BROKER THAT A THIRD PARTY WILL BE PAYING FOR ANY SUCH SERVICES; [2.] (B) The time within which the services will be performed; [3.] (C) The cost of the services to be performed; [and 4.] (D) The ability of the automobile broker business OR NEW AUTOMO- BILE BROKER BUSINESS to perform the services; AND (E) THAT THE AUTOMOBILE BROKER BUSINESS OR NEW AUTOMOBILE BROKER BUSI- NESS IS AFFILIATED WITH ANY AUTOMOBILE MANUFACTURER AND/OR DISTRIBUTOR, INCLUDING THE USE OF ANY TRADEMARKS OR COPYRIGHTED MATERIAL WITHOUT THE EXPRESS, WRITTEN CONSENT OF THE OWNER OF SUCH MATERIAL. 2. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER BUSINESS OR NEW AUTOMOBILE BROKER BUSINESS TO REFUSE TO DISCLOSE TO A MOTOR VEHICLE DEALER OR NEW MOTOR VEHICLE DEALER THE REGISTRATION NUMBER PROVIDED BY THE DEPARTMENT OF MOTOR VEHICLES PURSUANT TO SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW. FURTHERMORE, IT SHALL ALSO BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER BUSINESS OR NEW AUTOMOBILE BROKER BUSINESS TO MAKE ANY MISREPRESENTATION TO A MOTOR VEHICLE DEALER OR NEW MOTOR VEHICLE DEALER REGARDING THE ELIGIBIL- ITY OF ANY CONSUMER FOR ANY DISCOUNTS, REDUCTIONS OR ANY BENEFIT PROGRAMS REGARDING THE SALE OR LEASE OF A MOTOR VEHICLE. 3. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR A NEW AUTOMOBILE BROKER BUSINESS TO FAIL TO MAKE A BONA FIDE ATTEMPT TO OBTAIN A QUOTE OR OFFER FROM AT LEAST THREE UNAFFILIATED DEALERS ON BEHALF OF A PROSPEC- TIVE BUYER OR LESSEE FOR A VEHICLE MEETING THE PROSPECTIVE BUYER OR LESSEE'S SPECIFICATIONS, INCLUDING THE NEW MOTOR VEHICLE DEALER LOCATED IN CLOSEST PROXIMITY TO THE ADDRESS OF SUCH PROSPECTIVE BUYER OR LESSEE'S HOME OR, IN THE CASE OF ANY ENTITY, ITS PLACE OF DOING BUSI- NESS. 4. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR A NEW AUTOMOBILE BROKER BUSINESS TO FAIL TO ACT FOR THE BENEFIT OF THE PROSPECTIVE BUYER OR LESSEE, INCLUDING BY FAILING TO MAKE REASONABLE EFFORTS TO OBTAIN THE LOWEST POSSIBLE PRICE, DOWN PAYMENT, NUMBER OF PAYMENTS, AMOUNT OF PAYMENTS, FINANCE CHARGES, ANNUAL PERCENTAGE RATE AND/OR FEES FOR A NEW MOTOR VEHICLE THAT MEETS THE SPECIFICATIONS OF SUCH PROSPECTIVE BUYER OR LESSEE. § 11. Section 741-a of the general business law, as amended by chapter 477 of the laws of 2017, is amended to read as follows: § 741-a. Advertising. Automobile broker businesses AND NEW AUTOMOBILE BROKER BUSINESSES shall clearly and conspicuously disclose the following in all advertisements in any medium, and in any print advertisement such disclosures shall not appear in any footnotes and shall be situated in the top half of any such advertisement in an easily readable typeface: A. 6655--C 7 (a) That the automobile broker business OR NEW AUTOMOBILE BROKER BUSI- NESS is not a registered new motor vehicle dealer but is a registered automobile broker business OR NEW 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 OR NEW 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 OR NEW AUTOMOBILE BROKER BUSINESS for services rendered. Details of such compensation shall be provided by the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS upon request by the consumer; and (d) That no warranty repair services will be provided by the automo- bile broker business OR NEW AUTOMOBILE BROKER BUSINESS. § 12. Section 741-b of the general business law, as added by chapter 28 of the laws of 2018, is amended to read as follows: § 741-b. [Disclosure] DISCLOSURES. 1. An automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS shall provide a disclosure at the time such automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS takes an order to search for a leased OR PURCHASED vehicle meeting the prospective BUYER OR lessee's specifications. Such disclosure shall provide the amount of any fees, commissions or other valuable consider- ation the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS expects to receive FOR ANY ASSISTANCE THE AUTOMOBILE BROKER BUSINESS PROVIDES IN EFFECTING THE LEASE OR PURCHASE TRANSACTION, INCLUDING ANY REASONABLY FORESEEABLE FEES OR CHARGES, INCLUDING DELIVERY FEES. IN THE CASE OF AN AUTOMOBILE BROKER BUSINESS THIS SHALL INCLUDE, if known, ANY PAYMENTS from a dealer, lessor or any other person or entity for any assistance the automobile broker business provides in effecting the lease OR PURCHASE 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. NOTHING IN THIS SUBDIVISION SHALL BE CONSTRUED TO PERMIT THE PAYMENT OF ANY FEES, COMMISSIONS OR OTHER VALUABLE CONSID- ERATION TO A NEW AUTOMOBILE BROKER BUSINESS BY ANY DEALER. 2. A NEW AUTOMOBILE BROKER BUSINESS SHALL PROVIDE AN ADDITIONAL DISCLOSURE AT THE TIME SUCH NEW AUTOMOBILE BROKER BUSINESS TAKES AN ORDER TO SEARCH FOR A VEHICLE MEETING THE PROSPECTIVE BUYER OR LESSEE'S SPECIFICATIONS. SUCH ADDITIONAL DISCLOSURE SHALL STATE THAT THE BROKER SHALL MAKE A BONA FIDE ATTEMPT TO OBTAIN A BID, QUOTE OR OFFER FROM AT LEAST THREE UNAFFILIATED DEALERS ON BEHALF OF THE PROSPECTIVE BUYER OR LESSEE FOR A VEHICLE MEETING THE PROSPECTIVE BUYER OR LESSEE'S SPECIFI- CATIONS, INCLUDING FROM THE NEW MOTOR VEHICLE DEALER OF SUCH LINE MAKE LOCATED CLOSEST TO THE HOME OR PLACE OF BUSINESS OF SUCH PROSPECTIVE BUYER AND THAT THE NEW AUTOMOBILE BROKER HAS A DUTY TO ACT FOR THE BENE- FIT OF THE PROSPECTIVE BUYER OR LESSEE, INCLUDING BY MAKING REASONABLE EFFORTS TO OBTAIN THE LOWEST POSSIBLE PRICE, DOWN PAYMENT, NUMBER OF PAYMENTS, AMOUNT OF PAYMENTS, FINANCE CHARGES, ANNUAL PERCENTAGE RATE AND/OR FEES. 3. EACH DISCLOSURE REQUIRED BY THIS SECTION SHALL BE ACKNOWLEDGED IN WRITING BY EACH RESPECTIVE PROSPECTIVE BUYER OR LESSEE. A. 6655--C 8 § 13. Section 742 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 742. Action for recovery of damages by consumer. Any consumer injured by a violation of this article or by the breach by an automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS of a contract which has been entered into pursuant to section seven hundred thirty-nine of this article may bring an action for recovery of damages. Judgment shall be entered in favor of a consumer in an amount not to exceed three times the actual damages, but in no case less than the amount paid by the buyer to the automobile broker business OR NEW AUTOMOBILE BROKER BUSI- NESS. The court may award reasonable attorney's fees to a prevailing plaintiff. § 14. Section 743 of the general business law, as amended by chapter 372 of the laws of 2016, is amended to read as follows: § 743. Enforcement [by]. 1. BY attorney general. In addition to the other remedies provided, whenever there shall be a violation of this article, application may be made by the attorney general in the name of the people of the state of New York to a court or justice having juris- diction by a special proceeding to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such violations; and if it shall appear to the satisfac- tion of the court or justice that the defendant has, in fact, violated this article, an injunction may be issued by such court or justice, enjoining and restraining any further violation, without requiring proof that any person has, in fact, been injured or damaged thereby. In any such proceeding, the court may make allowances to the attorney general as provided in paragraph six of subdivision (a) of section eighty-three hundred three of the civil practice law and rules, and direct restitu- tion. Whenever the court shall determine that a violation of this arti- cle has occurred, the court shall impose a civil penalty of not less than one thousand dollars and not more than three thousand dollars for each violation. IN THE CASE OF AN AUTOMOBILE BROKER, NOT LESS THAN ONE THOUSAND DOLLARS AND NOT MORE THAN THREE THOUSAND DOLLARS FOR EACH VIOLATION; AND IN THE CASE OF A NEW AUTOMOBILE BROKER, NOT LESS THAN FOUR THOUSAND DOLLARS AND NOT MORE THAN TEN THOUSAND DOLLARS FOR EACH VIOLATION. In connection with any such proposed application, the attor- ney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil prac- tice law and rules. In connection with any such proposed application, the attorney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules. 2. BY LOCAL AUTHORITIES. A. MUNICIPALITIES MAY, PURSUANT TO LOCAL LAW, ACT UPON THE BUSINESS ACTIVITY THAT IS THE SUBJECT OF THIS ARTICLE, PROVIDED THAT NO LOCAL GOVERNMENT MAY DIMINISH THE PROTECTIONS OR REQUIREMENTS OF THIS ARTICLE OR PREVENT ENFORCEMENT OF ITS PROVISIONS BY APPROPRIATE STATE OFFICIALS. B. THE PROVISIONS OF THIS ARTICLE MAY BE ENFORCED IN THE SAME MANNER AS SET FORTH IN SUBDIVISION ONE OF THIS SECTION BY THE DIRECTOR OF A MUNICIPAL CONSUMER AFFAIRS OFFICE OR A BUSINESS INTEGRITY COMMISSION, OR BY THE TOWN ATTORNEY, CITY CORPORATION COUNSEL, OR OTHER LAWFULLY DESIG- NATED ENFORCEMENT OFFICER OF A MUNICIPALITY OR LOCAL GOVERNMENT, AND ALL MONIES COLLECTED THEREUNDER SHALL BE RETAINED BY SUCH MUNICIPALITY OR LOCAL GOVERNMENT, PROVIDED THAT NO LOCAL GOVERNMENT MAY PREVENT ENFORCE- MENT OF ITS PROVISIONS BY APPROPRIATE STATE OFFICIALS. A. 6655--C 9 3. BY PRIVATE PARTY. ANY PERSONS INJURED BY ANY VIOLATION OF THIS ARTICLE MAY BRING AN ACTION IN HIS OR HER OWN NAME AGAINST AN AUTOMOBILE BROKER BUSINESS OR A NEW AUTOMOBILE BROKER BUSINESS TO ENJOIN SUCH UNLAWFUL ACT OR PRACTICE, AN ACTION TO RECOVER HIS OR HER ACTUAL DAMAGES AND STATUTORY DAMAGES OF FOUR THOUSAND DOLLARS, OR BOTH SUCH ACTIONS. IN THE CASE OF A NEW MOTOR VEHICLE DEALER, INJURY SHALL INCLUDE DEPRIVING A NEW MOTOR VEHICLE DEALER LOCATED CLOSEST TO A LESSEE OR PURCHASER THE OPPORTUNITY TO BID ON SUCH LEASE OR PURCHASE AS ENTITLED BY THIS ARTI- CLE. DAMAGES SHALL INCLUDE THE VALUE OF INCENTIVE PAYMENTS, BONUSES, HOLDBACKS OR SIMILAR PAYMENTS THAT WOULD HAVE BEEN REALIZED HAD A LESSEE OR PURCHASER PURCHASED OR LEASED SUCH VEHICLE FROM THE NEW MOTOR VEHICLE DEALER IN CLOSEST PROXIMITY TO SUCH LESSEE OR PURCHASER BUT FOR THE ACTIONS OF A PERSON WHO KNOWINGLY AIDED THE VIOLATION OF THE PROVISIONS OF THIS ARTICLE. NOTHING IN THIS SECTION SHALL REQUIRE A FRANCHISOR, MANUFACTURER, OR DISTRIBUTOR TO GRANT A NEW MOTOR VEHICLE DEALER A BENE- FIT UNDER AN INCENTIVE, BONUS, HOLDBACK OR SIMILAR PAYMENT THAT THE NEW MOTOR VEHICLE DEALER DID NOT EARN OR FOR WHICH THE NEW MOTOR DEALER DID NOT COMPLETE OR QUALIFY. IN ANY SUCH JUDICIAL ACTION OR PROCEEDING, THE COURT MAY AWARD REASONABLE ATTORNEY'S FEES AND COSTS. SUCH ACTIONS MAY BE BROUGHT REGARDLESS OF WHETHER OR NOT THE UNDERLYING VIOLATION IS CONSUMER-ORIENTED OR HAS A PUBLIC IMPACT. THE COURT MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES IF THE COURT FINDS THE DEFEND- ANT WILLFULLY OR KNOWINGLY VIOLATED THIS SECTION. THE COURT SHALL AWARD REASONABLE ATTORNEY'S FEES AND COSTS TO A PREVAILING PLAINTIFF. § 15. Section 415 of the vehicle and traffic law is amended by adding two new subdivisions 21 and 22 to read as follows: 21. PENALTIES AND RIGHTS OF ACTION FOR FAILURE TO OBTAIN A CERTIFICATE OF REGISTRATION AS A NEW AUTOMOBILE BROKER PURSUANT TO SUBDIVISION THREE-A AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION. A. THE COMMISSIONER, OR ANY PERSON DESIGNATED BY HIM OR HER, MAY PROCEED AGAINST A PARTY WHO HAS OPERATED AS A NEW AUTOMOBILE BROKER WITHOUT CERTIFICATE OF REGISTRATION IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE, IN ANY ONE OR MORE PROCEEDINGS AND BY ORDER REQUIRE THE OFFEND- ING PARTY TO PAY THE PEOPLE OF THIS STATE A PENALTY IN A SUM NOT TO EXCEED TWO THOUSAND DOLLARS FOR EACH VIOLATION FOUND TO HAVE BEEN COMMITTED. CIVIL PENALTIES ASSESSED UNDER THIS SUBDIVISION SHALL BE PAID TO THE COMMISSIONER FOR DEPOSIT INTO THE STATE TREASURY, AND UNPAID CIVIL PENALTIES MAY BE RECOVERED BY THE COMMISSIONER IN A CIVIL ACTION IN THE NAME OF THE COMMISSIONER. FOR THE PURPOSES OF THIS SUBDIVISION, A "VIOLATION" SHALL MEAN EACH VEHICLE SOLD OR LEASED TO A CONSUMER FOR WHICH THE PARTY THAT FAILED TO OBTAIN CERTIFICATION AS A NEW AUTOMOBILE BROKER HAS SERVED AS A NEW AUTOMOBILE BROKER. B. IN ADDITION TO ANY CIVIL ACTION BROUGHT BY THE COMMISSIONER OR ANY PERSON APPOINTED BY HIM, ANY PERSONS INJURED BY ANY VIOLATION OF SUBDI- VISION THREE-A AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION, SHALL BE ENTITLED TO SUE FOR AND HAVE INJUNCTIVE RELIEF AND DAMAGES AGAINST, ANY PARTY IN VIOLATION OF SUBDIVISION THREE-A AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION IN ANY COURT OF THE STATE HAVING JURISDICTION OVER THE PARTIES. IN THE CASE OF A NEW MOTOR VEHICLE DEAL- ER, INJURY SHALL INCLUDE DEPRIVING THE NEW MOTOR VEHICLE DEALER LOCATED CLOSEST TO A LESSEE OR PURCHASER THE OPPORTUNITY TO BID ON SUCH LEASE OR PURCHASE AS ENTITLED BY THIS ARTICLE. DAMAGES SHALL INCLUDE THE VALUE OF INCENTIVE PAYMENTS, BONUSES, HOLDBACKS OR SIMILAR PAYMENTS THAT WOULD HAVE BEEN REALIZED HAD A LESSEE OR PURCHASER PURCHASED OR LEASED SUCH VEHICLE FROM THE NEW MOTOR VEHICLE DEALER IN CLOSEST PROXIMITY TO SUCH LESSEE OR PURCHASER BUT FOR THE ACTIONS OF A PERSON WHO KNOWINGLY AIDED A. 6655--C 10 THE VIOLATION OF THE PROVISIONS OF THIS ARTICLE. NOTHING IN THIS SUBDI- VISION SHALL REQUIRE A FRANCHISOR, MANUFACTURER, OR DISTRIBUTOR TO GRANT A NEW MOTOR VEHICLE DEALER A BENEFIT UNDER AN INCENTIVE, BONUS, HOLDBACK OR SIMILAR PAYMENT THAT THE NEW MOTOR VEHICLE DEALER DID NOT EARN OR FOR WHICH THE NEW MOTOR DEALER DID NOT COMPLETE OR QUALIFY. IN ANY SUCH JUDICIAL ACTION OR PROCEEDING, THE COURT MAY AWARD REASONABLE ATTORNEY'S FEES AND COSTS. SUCH ACTIONS MAY BE BROUGHT REGARDLESS OF WHETHER OR NOT THE UNDERLYING VIOLATION IS CONSUMER-ORIENTED OR HAS A PUBLIC IMPACT. THE COURT MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES IF THE COURT FINDS THE DEFENDANT WILLFULLY OR KNOWINGLY VIOLATED THIS SECTION. THE COURT SHALL AWARD REASONABLE ATTORNEY'S FEES AND COSTS TO A PREVAILING PLAINTIFF. 22. NEW AUTOMOBILE BROKER RECORD REQUIREMENTS. A. NEW AUTOMOBILE BROKERS SHALL MAINTAIN A PERMANENTLY BOUND BOOK IN WHICH SHALL BE RECORDED THE MAKE, MODEL, YEAR COLOR AND VEHICLE IDENTIFICATION NUMBER OF ALL PREVIOUSLY UNREGISTERED AUTOMOBILES FOR WHICH SUCH BROKER HAS PROVIDED A SERVICE OF PURCHASING, ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF SUCH AUTOMOBILE WITHIN ANY PRECEDING SIX-YEAR PERIOD. SUCH BOOK SHALL ALSO HAVE RECORDED A RECORD OF THE NAME AND ADDRESS OF THE PURCHASER OR LESSOR OF SUCH AUTOMOBILE, THE DATE OF SALE OR COMMENCEMENT OF LEASE OF SUCH AUTOMOBILE AND THE NAME AND ADDRESS OF THE DEALER FROM WHICH THE AUTOMOBILE WAS PURCHASED OR LEASED. B. NEW AUTOMOBILE BROKERS SHALL MAINTAIN A PERMANENTLY BOUND BOOK IN WHICH SHALL BE RECORDED ALL COMPLETED ORDERS TO SEARCH FOR A PREVIOUSLY UNREGISTERED AUTOMOBILE. SUCH BOOK SHALL ALSO HAVE RECORDED A RECORD OF THE DATE OF SUCH ORDER, THE NAME AND ADDRESS OF THE PERSON OR ENTITY ORDERING SUCH SEARCH, THE AUTOMOBILE SPECIFICATIONS PROVIDED BY SUCH PROSPECTIVE BUYER OR LESSEE AND THE NAME AND ADDRESS OF THE DEALERS SOLICITED FOR A QUOTE OR OFFER ON BEHALF OF SUCH PROSPECTIVE BUYER OR LESSEE. C. SUCH BOOKS SHALL BE OPEN FOR INSPECTION BY THE COMMISSIONER, OR HIS OR HER AGENT, DURING REASONABLE BUSINESS HOURS. THE COMMISSIONER MAY ESTABLISH BY RULE THE FORM OF ANY SUCH BOOK. D. AS AN ALTERNATIVE TO A BOUND BOOK, A NEW AUTOMOBILE BROKER MAY USE A COMPUTER AND SOFTWARE APPROVED BY THE DEPARTMENT TO MAINTAIN THE RECORDS REQUIRED TO BE KEPT BY THIS SECTION, PROVIDED ALL INFORMATION REQUIRED BY PARAGRAPHS A AND B OF THIS SECTION ARE RECORDED AND THE RECORDS CONFORM TO SUCH ADDITIONAL REQUIREMENTS AS DETERMINED BY THE COMMISSIONER. § 16. Section 465 of the vehicle and traffic law is amended by adding a new subdivision 8 to read as follows: 8. A FRANCHISOR MAY REQUIRE A FRANCHISEE TO SUBMIT TO A FRANCHISOR THE NAME AND REGISTRATION NUMBER OF ANY NEW AUTOMOBILE BROKER BUSINESS THAT ARRANGED, ASSISTED, FACILITATED OR EFFECTED THE PURCHASE OR LEASE OF ANY VEHICLE FROM SUCH DEALER. A FRANCHISOR MAY CHARGE BACK THE FRANCHISEE ANY SALES, ADVERTISING OR MARKETING INCENTIVE PAYMENT OR ANY OTHER PAYMENT OR BENEFIT ASSOCIATED WITH THE SALE OR LEASE OF SUCH VEHICLE FOR FAILURE TO SUBMIT SUCH INFORMATION. § 17. The general business law is amended by adding a new section 737-a to read as follows: § 737-A. BONA FIDE BID SOLICITING REQUIRED. 1. IN PROVIDING A SERVICE OF PURCHASING, ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF A PREVIOUSLY UNREGISTERED AUTOMOBILE, A NEW AUTOMO- BILE BROKER BUSINESS SHALL SOLICIT BIDS FROM AT LEAST THREE UNAFFILIATED NEW MOTOR VEHICLE DEALERS ON BEHALF OF A PROSPECTIVE BUYER OR LESSEE FOR A NEW MOTOR VEHICLE MEETING THE SPECIFICATIONS OF SUCH PROSPECTIVE BUYER A. 6655--C 11 OR LESSEE, INCLUDING THE NEW MOTOR VEHICLE DEALER LOCATED IN CLOSEST PROXIMITY TO THE HOME ADDRESS OF SUCH PROSPECTIVE BUYER OR LESSEE OR, IN THE CASE OF AN ENTITY, ITS PLACE OF DOING BUSINESS. 2. THE COMMISSIONER OF MOTOR VEHICLES MAY ADOPT RULES AND REGULATIONS NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS SECTION. § 18. Severability. If any provision of this act, or any application of any provision of this act, is held to be invalid, that shall not affect the validity or effectiveness of any other provision of this act, or of any other application of any provision of this act, which can be given effect without that provision or application; and to that end, the provisions and applications of this act are severable. § 19. This act shall take effect immediately; provided that all auto- mobile brokers registered on the effective date of this act shall have ninety days to come into compliance with the provisions of this act.
Co-Sponsors
Peter Abbate
Albert A. Stirpe
Karines Reyes
Michael DenDekker
- view additional co-sponsors
Al Taylor
Steven Cymbrowitz
Inez E. Dickens
Michael G. Miller
Anthony D'Urso
Steven Englebright
Daniel Rosenthal
Sandy Galef
Richard Gottfried
Philip Ramos
Joe DeStefano
John K. Mikulin
Doug Smith
Nader sayegh
Jaime R. Williams
Vivian Cook
Thomas Abinanti
Dan Quart
Rebecca Seawright
Mike LiPetri
Mike Reilly
Brian D. Miller
Nily Rozic
Anthony H. Palumbo
Harvey Epstein
Nathalia Fernandez
Sean Ryan
Phil Steck
Catalina Cruz
Stacey Pheffer Amato
Victor M. Pichardo
Andrew Raia
Edward Ra
Michael Benedetto
Kevin M. Byrne
Jonathan Jacobson
David Buchwald
Alicia Hyndman
N. Nick Perry
Fred Thiele
Michaelle C. Solages
Charles Lavine
Steve Stern
Andrew R. Garbarino
Judy Griffin
Billy Jones
Marianne Buttenschon
Michael Blake
Amy Paulin
Edward Braunstein
Charles Fall
Mathylde Frontus
Linda Rosenthal
Monica P. Wallace
Multi-Sponsors
Carmen De La Rosa
Michael J. Fitzpatrick
Andrew Hevesi
Peter Lawrence
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Jo Anne Simon
A6655D - Details
A6655D - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 6655--D 2019-2020 Regular Sessions I N A S S E M B L Y March 14, 2019 ___________ Introduced by M. of A. CARROLL, ABBATE, STIRPE, REYES, DenDEKKER, TAYLOR, CYMBROWITZ, DICKENS, M. G. MILLER, D'URSO, ENGLEBRIGHT, D. ROSENTHAL, GALEF, GOTTFRIED, RAMOS, DeSTEFANO, MIKULIN, SMITH, SAYEGH, WILLIAMS, COOK, ABINANTI, McDONOUGH, QUART, SEAWRIGHT, LiPE- TRI, REILLY, B. MILLER, ROZIC, PALUMBO, EPSTEIN, FERNANDEZ, RYAN, STECK, CRUZ, PHEFFER AMATO, PICHARDO, RAIA, RA, BENEDETTO, BYRNE, JACOBSON, BUCHWALD, HYNDMAN, PERRY, THIELE, SOLAGES, LAVINE, STERN, GARBARINO, GRIFFIN -- Multi-Sponsored by -- M. of A. DE LA ROSA, FITZPATRICK, HEVESI, LAWRENCE, SIMON -- 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 -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee AN ACT to amend the vehicle and traffic law and the general business law, in relation to designating new automotive broker businesses THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph a of subdivision 1 of section 415 of the vehicle and traffic law, as amended by chapter 554 of the laws of 2015, is amended and a new paragraph n is 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 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
LBD08916-15-9 A. 6655--D 2 for sale OR LEASE 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. FOR THE PURPOSES OF THIS SECTION, "OFFERS FOR SALE OR LEASE" SHALL INCLUDE, BUT NOT BE LIMITED TO, THE ACT OF DRAWING THE PUBLIC'S ATTEN- TION TO, OR THE PRESENTATION OR DISPLAY OF ANY MOTOR VEHICLE, INCLUDING THE POSTING OF IMAGES OF ANY SUCH VEHICLE, TOGETHER WITH AN OFFER TO PROVIDE, THE PROVISION OF, OR A REPRESENTATION THAT SUCH PERSON MAY PROVIDE A SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE LEASE OF SUCH NEW MOTOR VEHICLE, EXCEPT THIS MEANING SHALL NOT APPLY TO ANY ACTIVITY OF A COOPERATIVE OR OTHER ADVERTISING PROGRAM OR FUND AS DESCRIBED IN ANY FRANCHISE, AS SUCH TERM IS DEFINED BY SUBDIVISION SIX OF SECTION FOUR HUNDRED SIXTY-TWO OF THIS TITLE. 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. N. "NEW AUTOMOBILE BROKER BUSINESS" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION FOUR OF SECTION SEVEN HUNDRED THIRTY-SIX OF THE GENERAL BUSINESS LAW. § 2. Section 736 of the general business law is amended by adding two new subdivisions 4 and 5 to read as follows: 4. "NEW 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 A PREVIOUSLY UNREGISTERED AUTOMOBILE; THROUGH A NEW MOTOR VEHICLE DEALER, AS AGENT, BROKER, OR INTERMEDIARY FOR A CONSUMER. "NEW AUTOMOBILE BROKER BUSINESS" DOES NOT INCLUDE ANY PERSON REGISTERED AS A NEW VEHICLE DEALER FOR THE NEW AUTOMOBILE BRAND OR BRANDS FOR WHICH SUCH SERVICES ARE PROVIDED, PURSUANT TO ARTICLE SIXTEEN OF THE VEHICLE AND TRAFFIC LAW NOR ANY BONA FIDE EMPLOYEE OF SUCH A REGISTERED DEALER WHILE ACTING FOR SUCH DEALER, NOR ANY MOTOR VEHICLE FRANCHISOR, MANUFAC- TURER OR DISTRIBUTOR FOR THE NEW AUTOMOBILE BRAND OR BRANDS FOR WHICH SUCH SERVICES ARE PROVIDED. 5. NOTWITHSTANDING ANY OTHER SUBDIVISION OF THIS SECTION, THE TERMS "AUTOMOBILE BROKER BUSINESS" AND "NEW AUTOMOBILE BROKER BUSINESS" SHALL NOT INCLUDE ANY ENTITY THAT PROVIDES A SERVICE OF PURCHASING, ARRANGING, ASSISTING, FACILITATING, OR EFFECTING THE PURCHASE OR LEASE OF A PREVI- OUSLY UNREGISTERED AUTOMOBILE AS AN AGENT, BROKER, OR INTERMEDIARY FOR A CONSUMER, IF THAT ENTITY FACILITATES THE PURCHASE OR LEASE OF A NEW MOTOR VEHICLE IN THIS STATE FROM A NEW MOTOR VEHICLE DEALER ONLY BY MEANS OF AN ONLINE NEW AUTOMOBILE REFERRAL SERVICE. FOR THE PURPOSES OF THIS SUBDIVISION, "ONLINE NEW AUTOMOBILE REFERRAL SERVICE" MEANS AN ORGANIZATION, INCLUDING, BUT NOT LIMITED TO A CORPORATION, LIMITED LIABILITY COMPANY, PARTNERSHIP, SOLE PROPRIETOR, OR ANY OTHER ENTITY, THAT: (A) OPERATES AN INTERACTIVE WEBSITE AND/OR SMARTPHONE APPLICATION THAT FACILITATES THE PROVISION OF SERVICES OR CONSUMMATION OF TRANSACTIONS BY MARKETPLACE ENTITIES AND PERSONS SEEKING SUCH SERVICES OR TRANSACTIONS ON A DIGITAL PLATFORM SPECIFICALLY DESIGNED AND BUILT FOR ONLINE MOTOR VEHICLE LEASE TRANSACTIONS; A. 6655--D 3 (B) LISTS MOTOR VEHICLES PROVIDED BY MULTIPLE NEW MOTOR VEHICLE DEAL- ERS IN THIS STATE; (C) PROVIDES SERVICES, OR THE TRANSACTIONS FACILITATED THEREBY, ON A MULTI-STATE BASIS PURSUANT TO WRITTEN CONTRACTS WITH NEW MOTOR VEHICLE DEALERS WHICH ESTABLISH A PREDETERMINED PRICE FOR THE SERVICES TO BE RENDERED; AND (D) INVOLVES NO IN-PERSON MEETING AS BETWEEN A PROSPECTIVE LESSEE OR PURCHASER AND THE OPERATOR OF SUCH INTERACTIVE WEBSITE AND/OR SMARTPHONE APPLICATION. § 3. Subdivision 3-a and paragraph b-3 of subdivision 5 of section 415 of the vehicle and traffic law, as added by chapter 477 of the laws of 2017, are amended to read as follows: 3-a. Automobile broker business [registration] OR NEW AUTOMOBILE BROKER BUSINESS. A. No person shall engage in the automobile broker business, THE NEW AUTOMOBILE BROKER BUSINESS or represent or advertise that he or she is engaged or intends to engage in the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS in this state, unless there shall have been issued to him or her a certificate of registration as an automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS, AS THE CASE MAY BE, by the commissioner under this section pursuant to an application for registration submitted pursuant to subdivision five of this section. B. THE COMMISSIONER SHALL NOT ISSUE ANY CERTIFICATE OF REGISTRATION AUTHORIZED BY THIS SUBDIVISION TO ANY DEALER, FRANCHISEE, FRANCHISOR, MANUFACTURER, DISTRIBUTOR, DISTRIBUTOR BRANCH OR FACTORY BRANCH, AS SUCH TERMS ARE DEFINED IN SECTION FOUR HUNDRED SIXTY-TWO OF THIS TITLE, OR TO ANY SUBSIDIARY, AFFILIATE OR CONTROLLED ENTITY THEREOF. C. AS A CONDITION OF ANY CERTIFICATE OF REGISTRATION ISSUED PURSUANT TO THIS SUBDIVISION, A NEW AUTOMOBILE BROKER BUSINESS SHALL HAVE, AND CONTINUOUSLY MAINTAIN, A PLACE OF BUSINESS IN THIS STATE FOR WHICH IT SHALL KEEP AND MAINTAIN EVIDENCE THAT ALL NECESSARY APPROVALS, LICENSES AND/OR PERMITS HAVE BEEN OBTAINED FROM ALL LOCAL GOVERNING BODIES TO OPERATE SUCH PLACE OF BUSINESS WITH CUSTOMER OR CLIENT TRAFFIC. D. EVERY REGISTERED NEW AUTOMOBILE BROKER SHALL PROMINENTLY AND CONSPICUOUSLY POST, IN SUCH A MANNER THAT IT IS LIKELY TO BE NOTICEABLE TO ANYONE ENTERING ITS PREMISES, ITS OFFICIAL BUSINESS CERTIFICATE OF REGISTRATION AND A SIGN, WHICH SIGN SHALL CLEARLY STATE: "(NAME OF REGISTERED NEW AUTOMOBILE BROKER) IS NOT A FRANCHISED NEW MOTOR VEHICLE DEALERSHIP. WE ARE NOT AUTHORIZED OR APPROVED BY A MANUFACTURER OR DISTRIBUTOR TO SELL A MOTOR VEHICLE OR PERFORM RECALL OR ORIGINAL FACTORY WARRANTY WORK. IF YOU ORDER A SEARCH FOR A NEW MOTOR VEHICLE FROM THIS BROKER, WE MUST MAKE A BONA FIDE EFFORT TO SOLICIT BIDS FROM AT LEAST THREE UNAFFILIATED NEW MOTOR VEHICLE DEALERS FOR A NEW MOTOR VEHICLE ON YOUR BEHALF, INCLUDING FROM YOUR LOCAL DEALER." E. A NEW AUTOMOBILE BROKER BUSINESS SHALL NOT PROVIDE, OFFER TO PROVIDE, OR REPRESENT THAT HE OR SHE WILL PROVIDE A SERVICE OF PURCHAS- ING, ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF A PREVIOUSLY UNREGISTERED AUTOMOBILE WITH A DEALER LOCATED IN ANY OTHER STATE UNLESS SUCH STATE AFFORDS LAWFUL MEANS FOR THE SAME BUSINESS ACTIVITY, SUCH STANDARDS AND REQUIREMENTS ARE EQUIVALENT TO THOSE CONTAINED IN THIS ARTICLE AND ARTICLE THIRTY-FIVE-B OF THE GENERAL BUSINESS LAW, THE NEW AUTOMOBILE BROKER BUSINESS IS REGISTERED, PERMIT- TED OR LICENSED TO PERFORM SUCH BUSINESS ACTIVITY IN SUCH OTHER STATE AND IS OTHERWISE IN GOOD STANDING WITH EACH GOVERNMENTAL AGENCY OF SUCH OTHER STATE RESPONSIBLE FOR REGULATING SUCH BUSINESS ACTIVITY. THE COMMISSIONER OF MOTOR VEHICLES SHALL BE EMPOWERED TO DETERMINE THE A. 6655--D 4 SUBSTANTIAL EQUIVALENCE OF SUCH OTHER STATE LAWS PERTAINING TO THE REGISTRATION, PERMITTING OR LICENSURE OF SUCH BUSINESSES. F. NOTHING IN THIS SUBDIVISION SHALL BE CONSTRUED TO PROHIBIT A FRAN- CHISOR, MANUFACTURER, OR DISTRIBUTOR FROM SPONSORING ACTIVITIES INTENDED TO GENERATE LEADS TOWARD THE SALE OR LEASE OF A NEW MOTOR VEHICLE BY A FRANCHISEE. b-3. In the case of an application for registration as an automobile broker business OR NEW 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 AND A STATEMENT INDICATING ANY INTEREST IN THE APPLICANT'S BUSINESS ENTITY BY A PERSON OR ENTITY DESCRIBED IN PARAGRAPH (F) OF SUBDIVISION ONE OR PARAGRAPH F OF SUBDIVISION SEVEN OF THIS SECTION. 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 information concerning the surety company. § 4. Subdivision 1 of section 736-a of the general business law, as added by chapter 477 of the laws of 2017, is amended and a new subdivi- sion 3 is added to read as follows: 1. (A) No person shall engage in business as an automobile broker business OR AS A NEW AUTOMOBILE BROKER BUSINESS, as SUCH TERMS ARE defined in section seven hundred thirty-six of this article, without first having been issued a certificate of registration for an automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS pursuant to paragraph c of subdivision seven of section four hundred fifteen of the vehicle and traffic law. A CERTIFICATE OF REGISTRATION FOR A NEW AUTOMOBILE BROKER BUSINESS IS VALID FOR A PERIOD OF TWO YEARS. (B) NO NEW AUTOMOBILE BROKER BUSINESS SHALL REPRESENT OR ACCEPT PAYMENT FROM, EITHER DIRECTLY OR INDIRECTLY, A FRANCHISEE, DEALER, FRAN- CHISOR, MANUFACTURER AND/OR DISTRIBUTOR, AS SUCH TERMS ARE DEFINED IN SECTIONS FOUR HUNDRED FIFTEEN AND FOUR HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW. (C) NO NEW AUTOMOBILE BROKER BUSINESS SHALL PROVIDE, OFFER TO PROVIDE, OR REPRESENT THAT HE OR SHE WILL PROVIDE A SERVICE OF PURCHASING, ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF A PREVIOUSLY UNREGISTERED AUTOMOBILE WITH A DEALER LOCATED IN ANY OTHER STATE UNLESS SUCH STATE AFFORDS LAWFUL MEANS FOR THE SAME BUSINESS ACTIVITY, SUCH STANDARDS AND REQUIREMENTS SET FORTH IN THE LAWS OF SUCH OTHER STATE ARE EQUIVALENT TO THOSE CONTAINED IN THIS ARTICLE, THE NEW AUTOMOBILE BROKER BUSINESS HAS BEEN REGISTERED, PERMITTED OR LICENSED TO PERFORM SUCH BUSINESS ACTIVITY IN SUCH OTHER STATE AND IS OTHERWISE IN GOOD STANDING WITH EACH AGENCY OF SUCH OTHER STATE RESPONSIBLE FOR REGU- LATING SUCH BUSINESS ACTIVITY. THE COMMISSIONER OF MOTOR VEHICLES SHALL BE EMPOWERED TO DETERMINE THE SUBSTANTIAL EQUIVALENCE OF SUCH OTHER STATE LAWS PERTAINING TO THE REGULATION OF SUCH BUSINESS ACTIVITY, INCLUDING CONSUMER PROTECTIONS IN ANY SUCH LAW. 3. THE COMMISSIONER OF MOTOR VEHICLES SHALL MAKE NECESSARY RULES AND REGULATIONS AS MAY BE APPROPRIATE FOR THE PROPER ENFORCEMENT OF THE PROVISIONS OF THIS SECTION. § 5. The general business law is amended by adding a new section 741-c to read as follows: § 741-C. PROHIBITIONS RELATED TO PRIVATE INFORMATION. NO PERSON REGIS- TERED UNDER THIS ARTICLE SHALL REQUEST, RECEIVE, ACCEPT, HANDLE, STORE OR TRANSMIT THE PRIVATE INFORMATION, AS SUCH TERM IS DEFINED IN PARA- GRAPH (B) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED NINETY-NINE-AA OF THIS CHAPTER, OF ANY CONSUMER. A. 6655--D 5 § 6. Section 737 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 737. Advance fees prohibited. No automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS shall solicit, receive or collect from a consumer any fee, or commission, in advance of the performance of those services specified in the contract as required by section seven hundred thirty-eight of this article. § 7. The opening paragraph of subdivision 1 of section 738 of the general business law, as amended by chapter 28 of the laws of 2018, is amended to read as follows: Every contract between a consumer and an automobile broker business, WHICH FOR THE PURPOSES OF THIS SECTION SHALL INCLUDE NEW AUTOMOBILE BROKER BUSINESSES, for the purchase of an automobile shall be in writ- ing, 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: § 8. Section 740 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 740. Escrow required for advance payments. All monies paid by a consumer to an automobile broker business OR A NEW AUTOMOBILE BROKER BUSINESS in connection with a transaction covered by this article shall be trust funds in the possession of such automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS and shall be deposited by it within five days after receipt thereof, in an account in a banking organization within the state. The automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS shall thereupon notify in writing the consumer, giving the name and address of the banking organization and the amount deposit- ed. The monies shall be held on deposit until fully applied to the contract price at the time the automobile is delivered to the consumer, unless sooner repaid in accordance with the provisions of this article. § 9. Section 740-a of the general business law, as added by chapter 579 of the laws of 2011 and subdivision 1 as amended by chapter 477 of the laws of 2017, is amended to read as follows: § 740-a. Automobile broker business AND NEW AUTOMOBILE BROKER BUSINESS surety bond. 1. Automobile broker businesses shall obtain and continue in effect a surety bond in an amount of one hundred thousand dollars executed by a surety company authorized to transact business in the state by the department of financial services of the state or its successor. NEW AUTOMOBILE BROKER BUSINESSES SHALL OBTAIN AND CONTINUE IN EFFECT A SURETY BOND IN AN AMOUNT OF TWO HUNDRED FIFTY THOUSAND DOLLARS EXECUTED BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN THE STATE BY THE 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' OR NEW 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. 2. Recovery against a bond may be made by a person, including the state, who obtains a judgment against the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS for an act or omission on which the bond is conditioned if the act or omission occurred during the term of the bond. The total liability imposed on the surety under this section for all breaches of the bond condition is limited to the face amount of the A. 6655--D 6 bond. Such liability may include, but is not limited to, the amount of the valid bank drafts, including checks, drawn by the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS for the purchase of motor vehicles. In no event shall the surety on a bond be liable for total claims in excess of the bond amount, regardless of the number or nature of claims made against the bond or the number of years the bond remained in force. 3. Any surety issuing a bond pursuant to this subdivision shall be required to provide sixty days' notice to the secretary of state prior to the effective date of cancellation of the bond. § 10. Section 741 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 741. Deceptive acts AND FRAUDS prohibited. 1. It is hereby declared to be a deceptive trade practice and unlawful for an automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS to misrepresent directly or indirectly in its advertising, promotional materials, sales presenta- tion, or in any manner: [1.] (A) The nature of the services to be performed AND IN THE CASE OF A NEW AUTOMOBILE BROKER THAT A THIRD PARTY WILL BE PAYING FOR ANY SUCH SERVICES; [2.] (B) The time within which the services will be performed; [3.] (C) The cost of the services to be performed; [and 4.] (D) The ability of the automobile broker business OR NEW AUTOMO- BILE BROKER BUSINESS to perform the services; AND (E) THAT THE AUTOMOBILE BROKER BUSINESS OR NEW AUTOMOBILE BROKER BUSI- NESS IS AFFILIATED WITH ANY AUTOMOBILE MANUFACTURER AND/OR DISTRIBUTOR, INCLUDING THE USE OF ANY TRADEMARKS OR COPYRIGHTED MATERIAL WITHOUT THE EXPRESS, WRITTEN CONSENT OF THE OWNER OF SUCH MATERIAL. 2. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER BUSINESS OR NEW AUTOMOBILE BROKER BUSINESS TO REFUSE TO DISCLOSE TO A MOTOR VEHICLE DEALER OR NEW MOTOR VEHICLE DEALER THE REGISTRATION NUMBER PROVIDED BY THE DEPARTMENT OF MOTOR VEHICLES PURSUANT TO SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW. FURTHERMORE, IT SHALL ALSO BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER BUSINESS OR NEW AUTOMOBILE BROKER BUSINESS TO MAKE ANY MISREPRESENTATION TO A MOTOR VEHICLE DEALER OR NEW MOTOR VEHICLE DEALER REGARDING THE ELIGIBIL- ITY OF ANY CONSUMER FOR ANY DISCOUNTS, REDUCTIONS OR ANY BENEFIT PROGRAMS REGARDING THE SALE OR LEASE OF A MOTOR VEHICLE. 3. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR A NEW AUTOMOBILE BROKER BUSINESS TO FAIL TO MAKE A BONA FIDE ATTEMPT TO OBTAIN A QUOTE OR OFFER FROM AT LEAST THREE UNAFFILIATED DEALERS ON BEHALF OF A PROSPEC- TIVE BUYER OR LESSEE FOR A VEHICLE MEETING THE PROSPECTIVE BUYER OR LESSEE'S SPECIFICATIONS, INCLUDING THE NEW MOTOR VEHICLE DEALER LOCATED IN CLOSEST PROXIMITY TO THE ADDRESS OF SUCH PROSPECTIVE BUYER OR LESSEE'S HOME OR, IN THE CASE OF ANY ENTITY, ITS PLACE OF DOING BUSI- NESS. 4. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR A NEW AUTOMOBILE BROKER BUSINESS TO FAIL TO ACT FOR THE BENEFIT OF THE PROSPECTIVE BUYER OR LESSEE, INCLUDING BY FAILING TO MAKE REASONABLE EFFORTS TO OBTAIN THE LOWEST POSSIBLE PRICE, DOWN PAYMENT, NUMBER OF PAYMENTS, AMOUNT OF PAYMENTS, FINANCE CHARGES, ANNUAL PERCENTAGE RATE AND/OR FEES FOR A NEW MOTOR VEHICLE THAT MEETS THE SPECIFICATIONS OF SUCH PROSPECTIVE BUYER OR LESSEE. § 11. Section 741-a of the general business law, as amended by chapter 477 of the laws of 2017, is amended to read as follows: A. 6655--D 7 § 741-a. Advertising. Automobile broker businesses AND NEW AUTOMOBILE BROKER BUSINESSES shall clearly and conspicuously disclose the following in all advertisements in any medium, and in any print advertisement such disclosures shall not appear in any footnotes and shall be situated in the top half of any such advertisement in an easily readable typeface: (a) That the automobile broker business OR NEW AUTOMOBILE BROKER BUSI- NESS is not a registered new motor vehicle dealer but is a registered automobile broker business OR NEW 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 OR NEW 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 OR NEW AUTOMOBILE BROKER BUSINESS for services rendered. Details of such compensation shall be provided by the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS upon request by the consumer; and (d) That no warranty repair services will be provided by the automo- bile broker business OR NEW AUTOMOBILE BROKER BUSINESS. § 12. Section 741-b of the general business law, as added by chapter 28 of the laws of 2018, is amended to read as follows: § 741-b. [Disclosure] DISCLOSURES. 1. An automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS shall provide a disclosure at the time such automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS takes an order to search for a leased OR PURCHASED vehicle meeting the prospective BUYER OR lessee's specifications. Such disclosure shall provide the amount of any fees, commissions or other valuable consider- ation the automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS expects to receive FOR ANY ASSISTANCE THE AUTOMOBILE BROKER BUSINESS PROVIDES IN EFFECTING THE LEASE OR PURCHASE TRANSACTION, INCLUDING ANY REASONABLY FORESEEABLE FEES OR CHARGES, INCLUDING DELIVERY FEES. IN THE CASE OF AN AUTOMOBILE BROKER BUSINESS THIS SHALL INCLUDE, if known, ANY PAYMENTS from a dealer, lessor or any other person or entity for any assistance the automobile broker business provides in effecting the lease OR PURCHASE 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. NOTHING IN THIS SUBDIVISION SHALL BE CONSTRUED TO PERMIT THE PAYMENT OF ANY FEES, COMMISSIONS OR OTHER VALUABLE CONSID- ERATION TO A NEW AUTOMOBILE BROKER BUSINESS BY ANY DEALER. 2. A NEW AUTOMOBILE BROKER BUSINESS SHALL PROVIDE AN ADDITIONAL DISCLOSURE AT THE TIME SUCH NEW AUTOMOBILE BROKER BUSINESS TAKES AN ORDER TO SEARCH FOR A VEHICLE MEETING THE PROSPECTIVE BUYER OR LESSEE'S SPECIFICATIONS. SUCH ADDITIONAL DISCLOSURE SHALL STATE THAT THE BROKER SHALL MAKE A BONA FIDE ATTEMPT TO OBTAIN A BID, QUOTE OR OFFER FROM AT LEAST THREE UNAFFILIATED DEALERS ON BEHALF OF THE PROSPECTIVE BUYER OR LESSEE FOR A VEHICLE MEETING THE PROSPECTIVE BUYER OR LESSEE'S SPECIFI- CATIONS, INCLUDING FROM THE NEW MOTOR VEHICLE DEALER OF SUCH LINE MAKE LOCATED CLOSEST TO THE HOME OR PLACE OF BUSINESS OF SUCH PROSPECTIVE BUYER AND THAT THE NEW AUTOMOBILE BROKER HAS A DUTY TO ACT FOR THE BENE- FIT OF THE PROSPECTIVE BUYER OR LESSEE, INCLUDING BY MAKING REASONABLE EFFORTS TO OBTAIN THE LOWEST POSSIBLE PRICE, DOWN PAYMENT, NUMBER OF A. 6655--D 8 PAYMENTS, AMOUNT OF PAYMENTS, FINANCE CHARGES, ANNUAL PERCENTAGE RATE AND/OR FEES. 3. EACH DISCLOSURE REQUIRED BY THIS SECTION SHALL BE ACKNOWLEDGED IN WRITING BY EACH RESPECTIVE PROSPECTIVE BUYER OR LESSEE. § 13. Section 742 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 742. Action for recovery of damages by consumer. Any consumer injured by a violation of this article or by the breach by an automobile broker business OR NEW AUTOMOBILE BROKER BUSINESS of a contract which has been entered into pursuant to section seven hundred thirty-nine of this article may bring an action for recovery of damages. Judgment shall be entered in favor of a consumer in an amount not to exceed three times the actual damages, but in no case less than the amount paid by the buyer to the automobile broker business OR NEW AUTOMOBILE BROKER BUSI- NESS. The court may award reasonable attorney's fees to a prevailing plaintiff. § 14. Section 743 of the general business law, as amended by chapter 372 of the laws of 2016, is amended to read as follows: § 743. Enforcement [by]. 1. BY attorney general. In addition to the other remedies provided, whenever there shall be a violation of this article, application may be made by the attorney general in the name of the people of the state of New York to a court or justice having juris- diction by a special proceeding to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such violations; and if it shall appear to the satisfac- tion of the court or justice that the defendant has, in fact, violated this article, an injunction may be issued by such court or justice, enjoining and restraining any further violation, without requiring proof that any person has, in fact, been injured or damaged thereby. In any such proceeding, the court may make allowances to the attorney general as provided in paragraph six of subdivision (a) of section eighty-three hundred three of the civil practice law and rules, and direct restitu- tion. Whenever the court shall determine that a violation of this arti- cle has occurred, the court shall impose a civil penalty of not less than one thousand dollars and not more than three thousand dollars for each violation. IN THE CASE OF AN AUTOMOBILE BROKER, NOT LESS THAN ONE THOUSAND DOLLARS AND NOT MORE THAN THREE THOUSAND DOLLARS FOR EACH VIOLATION; AND IN THE CASE OF A NEW AUTOMOBILE BROKER, NOT LESS THAN FOUR THOUSAND DOLLARS AND NOT MORE THAN TEN THOUSAND DOLLARS FOR EACH VIOLATION. In connection with any such proposed application, the attor- ney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil prac- tice law and rules. In connection with any such proposed application, the attorney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules. 2. BY LOCAL AUTHORITIES. A. MUNICIPALITIES MAY, PURSUANT TO LOCAL LAW, ACT UPON THE BUSINESS ACTIVITY THAT IS THE SUBJECT OF THIS ARTICLE, PROVIDED THAT NO LOCAL GOVERNMENT MAY DIMINISH THE PROTECTIONS OR REQUIREMENTS OF THIS ARTICLE OR PREVENT ENFORCEMENT OF ITS PROVISIONS BY APPROPRIATE STATE OFFICIALS. B. THE PROVISIONS OF THIS ARTICLE MAY BE ENFORCED IN THE SAME MANNER AS SET FORTH IN SUBDIVISION ONE OF THIS SECTION BY THE DIRECTOR OF A MUNICIPAL CONSUMER AFFAIRS OFFICE OR A BUSINESS INTEGRITY COMMISSION, OR BY THE TOWN ATTORNEY, CITY CORPORATION COUNSEL, OR OTHER LAWFULLY DESIG- A. 6655--D 9 NATED ENFORCEMENT OFFICER OF A MUNICIPALITY OR LOCAL GOVERNMENT, AND ALL MONIES COLLECTED THEREUNDER SHALL BE RETAINED BY SUCH MUNICIPALITY OR LOCAL GOVERNMENT, PROVIDED THAT NO LOCAL GOVERNMENT MAY PREVENT ENFORCE- MENT OF ITS PROVISIONS BY APPROPRIATE STATE OFFICIALS. 3. BY PRIVATE PARTY. ANY PERSONS INJURED BY ANY VIOLATION OF THIS ARTICLE MAY BRING AN ACTION IN HIS OR HER OWN NAME AGAINST AN AUTOMOBILE BROKER BUSINESS OR A NEW AUTOMOBILE BROKER BUSINESS TO ENJOIN SUCH UNLAWFUL ACT OR PRACTICE, AN ACTION TO RECOVER HIS OR HER ACTUAL DAMAGES AND STATUTORY DAMAGES OF FOUR THOUSAND DOLLARS, OR BOTH SUCH ACTIONS. IN THE CASE OF A NEW MOTOR VEHICLE DEALER, INJURY SHALL INCLUDE DEPRIVING A NEW MOTOR VEHICLE DEALER LOCATED CLOSEST TO A LESSEE OR PURCHASER THE OPPORTUNITY TO BID ON SUCH LEASE OR PURCHASE AS ENTITLED BY THIS ARTI- CLE. DAMAGES SHALL INCLUDE THE VALUE OF INCENTIVE PAYMENTS, BONUSES, HOLDBACKS OR SIMILAR PAYMENTS THAT WOULD HAVE BEEN REALIZED HAD A LESSEE OR PURCHASER PURCHASED OR LEASED SUCH VEHICLE FROM THE NEW MOTOR VEHICLE DEALER IN CLOSEST PROXIMITY TO SUCH LESSEE OR PURCHASER BUT FOR THE ACTIONS OF A PERSON WHO KNOWINGLY AIDED THE VIOLATION OF THE PROVISIONS OF THIS ARTICLE. NOTHING IN THIS SECTION SHALL REQUIRE A FRANCHISOR, MANUFACTURER, OR DISTRIBUTOR TO GRANT A NEW MOTOR VEHICLE DEALER A BENE- FIT UNDER AN INCENTIVE, BONUS, HOLDBACK OR SIMILAR PAYMENT THAT THE NEW MOTOR VEHICLE DEALER DID NOT EARN OR FOR WHICH THE NEW MOTOR DEALER DID NOT COMPLETE OR QUALIFY. IN ANY SUCH JUDICIAL ACTION OR PROCEEDING, THE COURT MAY AWARD REASONABLE ATTORNEY'S FEES AND COSTS. SUCH ACTIONS MAY BE BROUGHT REGARDLESS OF WHETHER OR NOT THE UNDERLYING VIOLATION IS CONSUMER-ORIENTED OR HAS A PUBLIC IMPACT. THE COURT MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES IF THE COURT FINDS THE DEFEND- ANT WILLFULLY OR KNOWINGLY VIOLATED THIS SECTION. THE COURT SHALL AWARD REASONABLE ATTORNEY'S FEES AND COSTS TO A PREVAILING PLAINTIFF. § 15. Section 415 of the vehicle and traffic law is amended by adding two new subdivisions 21 and 22 to read as follows: 21. PENALTIES AND RIGHTS OF ACTION FOR FAILURE TO OBTAIN A CERTIFICATE OF REGISTRATION AS A NEW AUTOMOBILE BROKER PURSUANT TO SUBDIVISION THREE-A AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION. A. THE COMMISSIONER, OR ANY PERSON DESIGNATED BY HIM OR HER, MAY PROCEED AGAINST A PARTY WHO HAS OPERATED AS A NEW AUTOMOBILE BROKER WITHOUT CERTIFICATE OF REGISTRATION IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE, IN ANY ONE OR MORE PROCEEDINGS AND BY ORDER REQUIRE THE OFFEND- ING PARTY TO PAY THE PEOPLE OF THIS STATE A PENALTY IN A SUM NOT TO EXCEED TWO THOUSAND DOLLARS FOR EACH VIOLATION FOUND TO HAVE BEEN COMMITTED. CIVIL PENALTIES ASSESSED UNDER THIS SUBDIVISION SHALL BE PAID TO THE COMMISSIONER FOR DEPOSIT INTO THE STATE TREASURY, AND UNPAID CIVIL PENALTIES MAY BE RECOVERED BY THE COMMISSIONER IN A CIVIL ACTION IN THE NAME OF THE COMMISSIONER. FOR THE PURPOSES OF THIS SUBDIVISION, A "VIOLATION" SHALL MEAN EACH VEHICLE SOLD OR LEASED TO A CONSUMER FOR WHICH THE PARTY THAT FAILED TO OBTAIN CERTIFICATION AS A NEW AUTOMOBILE BROKER HAS SERVED AS A NEW AUTOMOBILE BROKER. B. IN ADDITION TO ANY CIVIL ACTION BROUGHT BY THE COMMISSIONER OR ANY PERSON APPOINTED BY HIM, ANY PERSONS INJURED BY ANY VIOLATION OF SUBDI- VISION THREE-A AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION, SHALL BE ENTITLED TO SUE FOR AND HAVE INJUNCTIVE RELIEF AND DAMAGES AGAINST, ANY PARTY IN VIOLATION OF SUBDIVISION THREE-A AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION IN ANY COURT OF THE STATE HAVING JURISDICTION OVER THE PARTIES. IN THE CASE OF A NEW MOTOR VEHICLE DEAL- ER, INJURY SHALL INCLUDE DEPRIVING THE NEW MOTOR VEHICLE DEALER LOCATED CLOSEST TO A LESSEE OR PURCHASER THE OPPORTUNITY TO BID ON SUCH LEASE OR PURCHASE AS ENTITLED BY THIS ARTICLE. DAMAGES SHALL INCLUDE THE VALUE OF A. 6655--D 10 INCENTIVE PAYMENTS, BONUSES, HOLDBACKS OR SIMILAR PAYMENTS THAT WOULD HAVE BEEN REALIZED HAD A LESSEE OR PURCHASER PURCHASED OR LEASED SUCH VEHICLE FROM THE NEW MOTOR VEHICLE DEALER IN CLOSEST PROXIMITY TO SUCH LESSEE OR PURCHASER BUT FOR THE ACTIONS OF A PERSON WHO KNOWINGLY AIDED THE VIOLATION OF THE PROVISIONS OF THIS ARTICLE. NOTHING IN THIS SUBDI- VISION SHALL REQUIRE A FRANCHISOR, MANUFACTURER, OR DISTRIBUTOR TO GRANT A NEW MOTOR VEHICLE DEALER A BENEFIT UNDER AN INCENTIVE, BONUS, HOLDBACK OR SIMILAR PAYMENT THAT THE NEW MOTOR VEHICLE DEALER DID NOT EARN OR FOR WHICH THE NEW MOTOR DEALER DID NOT COMPLETE OR QUALIFY. IN ANY SUCH JUDICIAL ACTION OR PROCEEDING, THE COURT MAY AWARD REASONABLE ATTORNEY'S FEES AND COSTS. SUCH ACTIONS MAY BE BROUGHT REGARDLESS OF WHETHER OR NOT THE UNDERLYING VIOLATION IS CONSUMER-ORIENTED OR HAS A PUBLIC IMPACT. THE COURT MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES IF THE COURT FINDS THE DEFENDANT WILLFULLY OR KNOWINGLY VIOLATED THIS SECTION. THE COURT SHALL AWARD REASONABLE ATTORNEY'S FEES AND COSTS TO A PREVAILING PLAINTIFF. 22. NEW AUTOMOBILE BROKER RECORD REQUIREMENTS. A. NEW AUTOMOBILE BROKERS SHALL MAINTAIN A PERMANENTLY BOUND BOOK IN WHICH SHALL BE RECORDED THE MAKE, MODEL, YEAR COLOR AND VEHICLE IDENTIFICATION NUMBER OF ALL PREVIOUSLY UNREGISTERED AUTOMOBILES FOR WHICH SUCH BROKER HAS PROVIDED A SERVICE OF PURCHASING, ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF SUCH AUTOMOBILE WITHIN ANY PRECEDING SIX-YEAR PERIOD. SUCH BOOK SHALL ALSO HAVE RECORDED A RECORD OF THE NAME AND ADDRESS OF THE PURCHASER OR LESSOR OF SUCH AUTOMOBILE, THE DATE OF SALE OR COMMENCEMENT OF LEASE OF SUCH AUTOMOBILE AND THE NAME AND ADDRESS OF THE DEALER FROM WHICH THE AUTOMOBILE WAS PURCHASED OR LEASED. B. NEW AUTOMOBILE BROKERS SHALL MAINTAIN A PERMANENTLY BOUND BOOK IN WHICH SHALL BE RECORDED ALL COMPLETED ORDERS TO SEARCH FOR A PREVIOUSLY UNREGISTERED AUTOMOBILE. SUCH BOOK SHALL ALSO HAVE RECORDED A RECORD OF THE DATE OF SUCH ORDER, THE NAME AND ADDRESS OF THE PERSON OR ENTITY ORDERING SUCH SEARCH, THE AUTOMOBILE SPECIFICATIONS PROVIDED BY SUCH PROSPECTIVE BUYER OR LESSEE AND THE NAME AND ADDRESS OF THE DEALERS SOLICITED FOR A QUOTE OR OFFER ON BEHALF OF SUCH PROSPECTIVE BUYER OR LESSEE. C. SUCH BOOKS SHALL BE OPEN FOR INSPECTION BY THE COMMISSIONER, OR HIS OR HER AGENT, DURING REASONABLE BUSINESS HOURS. THE COMMISSIONER MAY ESTABLISH BY RULE THE FORM OF ANY SUCH BOOK. D. AS AN ALTERNATIVE TO A BOUND BOOK, A NEW AUTOMOBILE BROKER MAY USE A COMPUTER AND SOFTWARE APPROVED BY THE DEPARTMENT TO MAINTAIN THE RECORDS REQUIRED TO BE KEPT BY THIS SECTION, PROVIDED ALL INFORMATION REQUIRED BY PARAGRAPHS A AND B OF THIS SECTION ARE RECORDED AND THE RECORDS CONFORM TO SUCH ADDITIONAL REQUIREMENTS AS DETERMINED BY THE COMMISSIONER. § 16. Section 465 of the vehicle and traffic law is amended by adding a new subdivision 8 to read as follows: 8. A FRANCHISOR MAY REQUIRE A FRANCHISEE TO SUBMIT TO A FRANCHISOR THE NAME AND REGISTRATION NUMBER OF ANY NEW AUTOMOBILE BROKER BUSINESS THAT ARRANGED, ASSISTED, FACILITATED OR EFFECTED THE PURCHASE OR LEASE OF ANY VEHICLE FROM SUCH DEALER. A FRANCHISOR MAY CHARGE BACK THE FRANCHISEE ANY SALES, ADVERTISING OR MARKETING INCENTIVE PAYMENT OR ANY OTHER PAYMENT OR BENEFIT ASSOCIATED WITH THE SALE OR LEASE OF SUCH VEHICLE FOR FAILURE TO SUBMIT SUCH INFORMATION. § 17. The general business law is amended by adding a new section 737-a to read as follows: § 737-A. BONA FIDE BID SOLICITING REQUIRED. 1. IN PROVIDING A SERVICE OF PURCHASING, ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE A. 6655--D 11 PURCHASE OR LEASE OF A PREVIOUSLY UNREGISTERED AUTOMOBILE, A NEW AUTOMO- BILE BROKER BUSINESS SHALL SOLICIT BIDS FROM AT LEAST THREE UNAFFILIATED NEW MOTOR VEHICLE DEALERS ON BEHALF OF A PROSPECTIVE BUYER OR LESSEE FOR A NEW MOTOR VEHICLE MEETING THE SPECIFICATIONS OF SUCH PROSPECTIVE BUYER OR LESSEE, INCLUDING THE NEW MOTOR VEHICLE DEALER LOCATED IN CLOSEST PROXIMITY TO THE HOME ADDRESS OF SUCH PROSPECTIVE BUYER OR LESSEE OR, IN THE CASE OF AN ENTITY, ITS PLACE OF DOING BUSINESS. 2. THE COMMISSIONER OF MOTOR VEHICLES MAY ADOPT RULES AND REGULATIONS NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS SECTION. § 18. Severability. If any provision of this act, or any application of any provision of this act, is held to be invalid, that shall not affect the validity or effectiveness of any other provision of this act, or of any other application of any provision of this act, which can be given effect without that provision or application; and to that end, the provisions and applications of this act are severable. § 19. This act shall take effect immediately; provided that all auto- mobile brokers registered on the effective date of this act shall have ninety days to come into compliance with the provisions of this act.
Co-Sponsors
Peter Abbate
Albert A. Stirpe
Karines Reyes
Michael DenDekker
- view additional co-sponsors
Al Taylor
Steven Cymbrowitz
Inez E. Dickens
Michael G. Miller
Anthony D'Urso
Steven Englebright
Daniel Rosenthal
Sandy Galef
Richard Gottfried
Philip Ramos
Joe DeStefano
John K. Mikulin
Doug Smith
Nader sayegh
Jaime R. Williams
Vivian Cook
Thomas Abinanti
Dan Quart
Rebecca Seawright
Mike LiPetri
Mike Reilly
Brian D. Miller
Nily Rozic
Anthony H. Palumbo
Harvey Epstein
Nathalia Fernandez
Sean Ryan
Phil Steck
Catalina Cruz
Stacey Pheffer Amato
Victor M. Pichardo
Andrew Raia
Edward Ra
Michael Benedetto
Kevin M. Byrne
Jonathan Jacobson
David Buchwald
Alicia Hyndman
N. Nick Perry
Fred Thiele
Michaelle C. Solages
Charles Lavine
Steve Stern
Andrew R. Garbarino
Judy Griffin
Billy Jones
Marianne Buttenschon
Michael Blake
Amy Paulin
Edward Braunstein
Charles Fall
Mathylde Frontus
Linda Rosenthal
Monica P. Wallace
Erik Dilan
Jeffrion Aubry
Walter T. Mosley
Kimberly Jean-Pierre
Latrice Walker
Taylor Darling
Felix Ortiz
Multi-Sponsors
Carmen De La Rosa
Michael J. Fitzpatrick
Andrew Hevesi
Peter Lawrence
- view additional multi-sponsors
Jo Anne Simon
A6655E (ACTIVE) - Details
A6655E (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 6655--E 2019-2020 Regular Sessions I N A S S E M B L Y March 14, 2019 ___________ Introduced by M. of A. CARROLL, ABBATE, STIRPE, REYES, DenDEKKER, TAYLOR, CYMBROWITZ, DICKENS, M. G. MILLER, D'URSO, ENGLEBRIGHT, D. ROSENTHAL, GALEF, GOTTFRIED, RAMOS, DeSTEFANO, MIKULIN, SMITH, SAYEGH, WILLIAMS, COOK, ABINANTI, QUART, SEAWRIGHT, LiPETRI, REILLY, B. MILLER, ROZIC, PALUMBO, EPSTEIN, FERNANDEZ, RYAN, STECK, CRUZ, PHEFFER AMATO, PICHARDO, RA, BENEDETTO, BYRNE, JACOBSON, BUCHWALD, HYNDMAN, PERRY, THIELE, SOLAGES, LAVINE, STERN, GARBARINO, GRIFFIN, JONES, BUTTENSCHON, BLAKE, PAULIN, BRAUNSTEIN, FALL, FRONTUS, L. ROSENTHAL, WALLACE -- Multi-Sponsored by -- M. of A. DE LA ROSA, FITZPATRICK, HEVESI, LAWRENCE, SIMON -- 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 -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Consumer Affairs and Protection in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the general business law, the vehicle and traffic law and the personal property law, in relation to designating new automo- tive broker businesses 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 chapter 28 of the laws of 2018, is amended and a new subdivision 4 is added to read as follows: 1. "Automobile broker business" means any person who, for a fee, commission or other valuable consideration, regardless of whether such EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
LBD08916-23-0 A. 6655--E 2 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 NEW MOTOR VEHICLE dealer OR QUALIFIED DEALER pursuant to article sixteen of the vehicle and traffic law nor any bona fide employ- ee of a registered NEW MOTOR VEHICLE DEALER OR QUALIFIED dealer while acting for such NEW MOTOR VEHICLE DEALER OR QUALIFIED 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 auto- mobiles in any calendar year, any national service which aggregates information for consumers, but does not otherwise have contact with consumers, [or] any motor vehicle franchisor, manufacturer, or distribu- tor, DISTRIBUTOR BRANCH OR FACTORY BRANCH registered under article sixteen of the vehicle and traffic law. 4. "NEW MOTOR VEHICLE" SHALL HAVE THE SAME MEANING AS DEFINED IN SUBDIVISION ELEVEN OF SECTION FOUR HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW. § 2. Section 736-a of the general business law, as added by chapter 477 of the laws of 2017, is amended to read as follows: § 736-a. Registration required. 1. (A) No person shall engage in busi- ness 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. A CERTIFICATE OF REGISTRATION FOR AN AUTO- MOBILE BROKER BUSINESS SHALL BE VALID FOR A PERIOD OF TWO YEARS. (B) NO AUTOMOBILE BROKER BUSINESS SHALL REPRESENT OR ACCEPT PAYMENT FROM, EITHER DIRECTLY OR INDIRECTLY, A FRANCHISEE, DEALER, FRANCHISOR, MANUFACTURER, DISTRIBUTOR, DISTRIBUTOR BRANCH AND/OR FACTORY BRANCH, AS SUCH TERMS ARE DEFINED IN SECTIONS FOUR HUNDRED FIFTEEN AND FOUR HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW. (C) NO AUTOMOBILE BROKER BUSINESS SHALL PERFORM ANY SERVICES INVOLVING THE PURCHASING, ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF AN AUTOMOBILE AS AGENT, BROKER, OR INTERMEDIARY FOR A CONSUMER, UNLESS DONE PURSUANT TO A CONTRACT THAT COMPLIES WITH THE PROVISIONS OF SECTION SEVEN HUNDRED THIRTY-EIGHT OF THIS ARTICLE. 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. ANY PERSON THAT SELLS OR LEASES FIVE OR MORE VEHICLES IN A CALENDAR YEAR TO OR THROUGH ONE OR MORE AUTOMOBILE BROKER BUSINESSES SHALL BE DEEMED TO BE DEALING IN MOTOR VEHICLES AS THAT TERM IS USED IN PARAGRAPH A OF SUBDIVISION ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW. 4. THE COMMISSIONER OF MOTOR VEHICLES SHALL ADOPT RULES AND REGU- LATIONS NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS SECTION, INCLUD- ING REGULATIONS THAT REQUIRE THE DISCLOSURE OF THE NAME, ADDRESS, AND REGISTRATION NUMBER OF AN AUTOMOBILE BROKER BUSINESS THAT PROVIDED THE SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF ANY NEW MOTOR VEHICLE, AND THE FEE COLLECTED BY THE BROKER FROM THE CONSUMER FOR PROVIDING SUCH SERVICE. SUCH RULES AND REGULATIONS SHALL REQUIRE THAT SUCH INFORMATION OF THE AUTOMOBILE BROKER BUSINESS AND ITS FEE FOR SERVICE BE PRINTED ON ANY INVOICE, BILL OF SALE, OR A. 6655--E 3 BUYER'S ORDER, AND ON ANY APPLICATION FOR REGISTRATION OR TITLE SUBMIT- TED BY ANY DEALER TO THE DEPARTMENT OF MOTOR VEHICLES ON BEHALF OF THE CONSUMER RELATED TO SUCH PURCHASED OR LEASED MOTOR VEHICLE. § 3. The general business law is amended by adding a new section 737-a to read as follows: § 737-A. BONA FIDE BID SOLICITING REQUIRED. 1. ON BEHALF OF EACH CONSUMER EXECUTING A CONTRACT THAT CONFORMS TO THE REQUIREMENTS OF SUBDIVISION THREE OF SECTION SEVEN HUNDRED THIRTY-EIGHT OF THIS ARTICLE, AN AUTOMOBILE BROKER BUSINESS SHALL SOLICIT A BID, FROM AT LEAST THREE NEW MOTOR VEHICLE DEALERS OF THE SAME LINE-MAKE, THAT MEETS THE SPECIFI- CATIONS OF SUCH PROSPECTIVE BUYER OR LESSEE, INCLUDING FROM THE NEW MOTOR VEHICLE DEALER LOCATED IN CLOSEST PROXIMITY TO THE HOME ADDRESS OF A PROSPECTIVE BUYER OR LESSEE OF A NEW MOTOR VEHICLE OR, IN THE CASE OF AN ENTITY, THE PLACE OF DOING BUSINESS OF SUCH PROSPECTIVE BUYER OR LESSEE OF A NEW MOTOR VEHICLE. WHENEVER AN AUTOMOBILE BROKER BUSINESS MAY CHOOSE BID SPECIFICATIONS ON BEHALF OF A CONSUMER, SUCH AUTOMOBILE BROKER BUSINESS SHALL SOLICIT A BID MATCHING SUCH SPECIFICATIONS FROM AT LEAST THREE NEW MOTOR VEHICLE DEALERS OF THE SAME LINE-MAKE, INCLUDING FROM THE NEW MOTOR VEHICLE DEALER LOCATED IN CLOSEST PROXIMITY TO THE HOME ADDRESS OF A PROSPECTIVE BUYER OR LESSEE OF A NEW MOTOR VEHICLE OR, IN THE CASE OF AN ENTITY, THE PLACE OF DOING BUSINESS OF SUCH PROSPEC- TIVE BUYER OR LESSEE OF A NEW MOTOR VEHICLE. 2. AT A MINIMUM, AN AUTOMOBILE BROKER BUSINESS THAT SOLICITS A BID PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL REQUEST THE FOLLOWING INFORMATION AS PART OF ANY SOLICITATION TO A NEW MOTOR VEHICLE DEALER: (A) PRICE OR LEASE COSTS; (B) DOWN OR SIMILAR PAYMENT; (C) NUMBER OF PAYMENTS; (D) AMOUNT OF INSTALLMENT OR MONTHLY PAYMENTS; (E) MAKE, MODEL, YEAR OF PRODUCTION, AND COLOR OF ANY AVAILABLE MOTOR VEHICLE; (F) WHETHER THE MOTOR VEHICLE HAS ACCESSORIES SPECIFICALLY REQUESTED BY THE CONSUMER; (G) FEES; (H) WHERE APPLICABLE, FINANCE CHARGES AND/OR ANNUAL PERCENTAGE RATE; (I) ESTIMATED DELIVERY DATE OF THE AUTOMOBILE; (J) STATEMENT OF WHETHER OR NOT THE MANUFACTURER'S WARRANTY ACCOMPANY- ING THE MOTOR VEHICLE IS THE SAME WARRANTY AS THAT FURNISHED TO PURCHAS- ERS OF THAT MAKE MOTOR VEHICLE FROM AN AUTHORIZED DEALER; AND (K) THE IDENTITY OF THE NEW MOTOR VEHICLE DEALER OFFERING A BID. 3. THE CONTENTS OF EACH BID BY A MOTOR VEHICLE DEALER, SOLICITED PURSUANT TO SUBDIVISION ONE OF THIS SECTION, SHALL BE PROVIDED TO EACH CONSUMER ON WHOSE BEHALF SUCH BID HAS BEEN SOLICITED, REGARDLESS OF THE PARTICULARS OR CONTENT OF ANY SUCH BID. 4. THE COMMISSIONER OF MOTOR VEHICLES SHALL ADOPT RULES AND REGU- LATIONS NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS SECTION. § 4. The opening paragraph and paragraph (e) of subdivision 1 and subdivisions 3 and 4 of section 738 of the general business law, the opening paragraph and paragraph (e) of subdivision 1 as amended and subdivision 4 as added by chapter 28 of the laws of 2018 and subdivision 3 as amended by chapter 477 of the laws of 2017, are amended to read as follows: Every contract between a consumer and an automobile broker business for the purchase of [an automobile] A MOTOR VEHICLE, OTHER THAN A NEW MOTOR VEHICLE, shall be in writing, shall be dated, shall contain the street address of the automobile broker business and the consumer and A. 6655--E 4 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: (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, as well as all fees, commissions or other valuable [considerations paid by an automo- bile dealer] CONSIDERATION OWED BY THE CONSUMER to the automobile broker business for selling, arranging, assisting or effecting the sale of an automobile as agent, broker, or intermediary between the consumer and the automobile dealer. 3. EVERY CONTRACT BETWEEN A CONSUMER AND AN AUTOMOBILE BROKER BUSINESS FOR THE SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF A NEW MOTOR VEHICLE SHALL BE IN WRITING, SHALL BE DATED, SHALL CONTAIN THE STREET ADDRESS OF THE AUTOMOBILE BROKER BUSI- NESS AND THE CONSUMER, AND SHALL BE SIGNED BY THE CONSUMER AND BY THE AUTOMOBILE BROKER BUSINESS. EVERY SUCH CONTRACT SHALL COMPLY WITH THE REQUIREMENTS SET FORTH IN THIS SECTION AND CONTAIN THE FOLLOWING PROVISIONS, WHICH SHALL BE PRINTED IN AT LEAST TWELVE-POINT BOLD TYPE AND SHALL NOT BE NEGATED OR SUPERSEDED BY ANY ADDITIONAL PROVISION: (A) A TITLE, ACROSS THE TOP OF THE DOCUMENT IN AT LEAST SIXTEEN-POINT BOLD TYPE, OF "CONTRACT FOR AUTOMOBILE BROKERING SERVICES FOR A NEW MOTOR VEHICLE". (B) A STATEMENT OF WHETHER A SOLICITED NEW MOTOR VEHICLE IS OR WILL BE MANUFACTURED IN ACCORDANCE WITH UNITED STATES SAFETY AND ENVIRONMENTAL SPECIFICATIONS AND IS OR WILL BE CERTIFIED BY THE MANUFACTURER AS SUCH; PROVIDED, IF THE NEW MOTOR VEHICLE IS NOT OR WILL NOT BE MANUFACTURED IN ACCORDANCE WITH UNITED STATES SAFETY AND ENVIRONMENTAL SPECIFICATIONS, AND THE CONSUMER HAS RETAINED THE AUTOMOBILE BROKER BUSINESS TO ARRANGE FOR THE MODIFICATION OF THE NEW MOTOR VEHICLE TO MEET SUCH SPECIFICA- TIONS, THE NAME AND STREET ADDRESS OF THE MODIFICATION FACILITY AND A STATEMENT IN IMMEDIATE PROXIMITY TO SUCH INFORMATION THAT THE AUTOMOBILE BROKER BUSINESS ASSUMES FULL FINANCIAL RESPONSIBILITY THAT THE NEW MOTOR VEHICLE WILL BE PROPERLY MODIFIED TO MEET ALL UNITED STATES SAFETY AND ENVIRONMENTAL SPECIFICATIONS. (C) A STATEMENT THAT THE CONSUMER MAY CANCEL THE CONTRACT FOR AUTOMO- BILE BROKERING SERVICES FOR A NEW MOTOR VEHICLE FOR ANY REASON WITHIN THREE DAYS OF THE EXECUTION OF SUCH CONTRACT AND THAT THE CONSUMER HAS THE RIGHT TO A FULL REFUND WITHIN TEN BUSINESS DAYS FOLLOWING RECEIPT OF THE NOTICE OF CANCELLATION. (D) A STATEMENT THAT, IF THE REQUESTED NEW MOTOR VEHICLE CANNOT BE PROCURED BY THE AUTOMOBILE BROKER BUSINESS WITHIN THIRTY DAYS FOLLOWING THE DATE OF EXECUTION OF THE CONTRACT FOR AUTOMOBILE BROKERING SERVICES FOR A NEW MOTOR VEHICLE, THE CONSUMER HAS THE RIGHT TO CANCEL THE CONTRACT AND TO RECEIVE A FULL REFUND WITHIN TEN BUSINESS DAYS FOLLOWING RECEIPT OF THE REQUEST FOR A REFUND, UNLESS THE DELAY IN DELIVERY IS ATTRIBUTABLE TO THE CONSUMER. (E) A STATEMENT THAT THE CONSUMER SHALL BE PROVIDED WITH THE CONTENTS OF EACH BID RECEIVED BY THE AUTOMOBILE BROKER BUSINESS IN RESPONSE TO ITS SOLICITATION ON BEHALF OF SUCH CONSUMER. (F) THE AMOUNT OF THE FEE TO BE PAID BY THE CONSUMER TO THE AUTOMOBILE BROKER BUSINESS FOR THE SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF A NEW MOTOR VEHICLE. (G) A STATEMENT THAT THE SINGLE FEE AUTHORIZED BY SUCH CONTRACT FOR AUTOMOBILE BROKERING SERVICES FOR A NEW MOTOR VEHICLE IS INCLUSIVE OF ALL CHARGES INCIDENT TO THE PURCHASING, ARRANGING, ASSISTING, FACILITAT- A. 6655--E 5 ING OR EFFECTING THE PURCHASE OR LEASE OF SUCH NEW MOTOR VEHICLE BY THE AUTOMOBILE BROKER BUSINESS AS AGENT, BROKER, OR INTERMEDIARY AND THAT NO OTHER CHARGE OR EXPENSE WHATSOEVER SHALL BE TAKEN, RECEIVED, RESERVED OR CONTRACTED FOR BY THE AUTOMOBILE BROKER BUSINESS FOR SUCH SERVICES. 4. THE CONTRACT FOR AUTOMOBILE BROKERING SERVICES FOR A NEW MOTOR VEHICLE SHALL BE ACCOMPANIED BY A COMPLETED FORM IN DUPLICATE, CAPTIONED "NOTICE OF CANCELLATION" WHICH SHALL BE ATTACHED TO THE CONTRACT AND EASILY DETACHABLE, AND WHICH SHALL CONTAIN IN AT LEAST TWELVE-POINT TYPE THE FOLLOWING: "NOTICE OF CANCELLATION YOU MAY CANCEL THIS CONTRACT FOR AUTOMOBILE BROKERING SERVICES FOR A NEW MOTOR VEHICLE, WITHOUT ANY PENALTY OR OBLI- GATION, WITHIN THREE DAYS FROM THE DATE THAT A COPY OF AN EXECUTED CONTRACT IS RECEIVED BY YOU. YOU MAY ALSO CANCEL THIS CONTRACT, WITHOUT PENALTY OR OBLIGATION, IF THE AUTOMOBILE BROKER BUSINESS DOES NOT PRODUCE A BID MEETING YOUR SPECIFICATIONS WITHIN THIRTY DAYS OF THE DATE OF EXECUTION OF THIS CONTRACT. TO CANCEL THIS CONTRACT, MAIL OR DELIVER A SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE, OR ANY OTHER WRITTEN NOTICE, TO (NAME OF AUTO- MOBILE BROKER BUSINESS) AT (ADDRESS OF AUTOMOBILE BROKER BUSINESS) NOT LATER THAN MIDNIGHT OF THE THIRD DAY, OR, IN THE CASE OF AN AUTOMOBILE BROKER BUSINESS NOT PRODUCING A BID MEETING YOUR SPECIFICATIONS WITHIN THIRTY DAYS, NOT LATER THAN MIDNIGHT OF THE THIRTIETH DAY, FOLLOWING YOUR RECEIPT OF A SIGNED CONTRACT. I HEREBY CANCEL THIS TRANSACTION. ________________________________ (SIGNATURE OF CONSUMER) _____________________ (DATE)" 5. An automobile broker business shall deliver to the consumer or mail to him or her at the address shown on [the] ANY contract REQUIRED BY THIS SECTION , an executed copy thereof. [4. An] 6. IN ADDITION TO THE BROKERING SERVICES AGREEMENT REQUIRED BY SUBDIVISION ONE OF THIS SECTION, 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 business 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. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PERMIT THE DELIVERY OF AN EXECUTED RETAIL LEASE AGREEMENT TO A NEW MOTOR VEHICLE BY A PERSON OTHER THAN THE PROSPECTIVE LESSEE. § 5. Subdivision 1 of section 740-a of the general business law, as amended by chapter 477 of the laws of 2017, is amended to read as follows: 1. Automobile broker businesses shall obtain and continue in effect a surety bond in an amount of [one] TWO hundred FIFTY thousand dollars executed by a surety company authorized to transact business in the state by the 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 A. 6655--E 6 such customer deposit and the transfer of good title to the vehicle to the customer. § 6. Section 741 of the general business law, as added by chapter 616 of the laws of 1988, is amended to read as follows: § 741. Deceptive acts AND FRAUDS prohibited. 1. It is hereby declared to be a deceptive trade practice and unlawful for an automobile broker business to misrepresent directly or indirectly in its advertising, promotional materials, sales presentation, or in any manner: [1.] (A) The nature of the services to be performed and that a third party will be paying for any such services; [2.] (B) The time within which the services will be performed; [3.] (C) The cost of the services to be performed; [and 4.] (D) The ability of the automobile broker business to perform the services; AND (E) THAT THE AUTOMOBILE BROKER BUSINESS IS AFFILIATED WITH ANY NEW MOTOR VEHICLE MANUFACTURER, DISTRIBUTOR, DISTRIBUTOR BRANCH AND/OR FACTORY BRANCH INCLUDING THE USE OF ANY TRADEMARKS OR COPYRIGHTED MATE- RIAL WITHOUT THE EXPRESS, WRITTEN CONSENT OF THE OWNER OF SUCH MATERIAL. 2. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER BUSINESS TO REFUSE TO DISCLOSE ITS REGISTRATION NUMBER, ISSUED EITHER BY THE DEPARTMENT OF MOTOR VEHICLES PURSUANT TO SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW OR A MUNICIPALITY, TO A MOTOR VEHICLE DEALER. FURTHERMORE, IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER BUSINESS TO MAKE ANY MISREPRESENTATION TO A MOTOR VEHICLE DEALER OR NEW MOTOR VEHICLE DEALER REGARDING THE ELIGIBIL- ITY OF ANY CONSUMER FOR ANY DISCOUNTS, REDUCTIONS OR ANY BENEFIT PROGRAMS REGARDING THE SALE OR LEASE OF A MOTOR VEHICLE. 3. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER BUSINESS TO ADVERTISE NEW MOTOR VEHICLES, THROUGH ANY PRINT, ELECTRONIC OR DIGITAL SIGNAL OR MEDIUM, WRITTEN OR VERBAL STATEMENT OR WORD, DESIGN, DEVICE, SOUND OR ANY COMBINATION OF ANY SUCH METHOD OR MEDIUM, WITHOUT DISCLOSING THAT IT IS NOT A LICENSED MOTOR VEHICLE DEALER AND IS NOT AN AUTHORIZED SATELLITE LOCATION FOR ANY PARTICULAR LICENSED MOTOR VEHICLE DEALER. 4. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER BUSINESS TO ADVERTISE THROUGH ANY PRINT, ELECTRONIC OR DIGITAL SIGNAL OR MEDIUM, WRITTEN OR VERBAL STATEMENT OR WORD, DESIGN, DEVICE, SOUND OR ANY COMBINATION OF ANY SUCH METHOD OR MEDIUM, THAT WOULD LEAD A REASON- ABLE CONSUMER TO CONCLUDE THAT THE AUTOMOBILE BROKER BUSINESS IS A LICENSED NEW MOTOR VEHICLE DEALER. 5. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER BUSINESS TO MAINTAIN ANY WEBSITE WITHOUT INCLUDING A TEXT BOX WITH THE FOLLOWING STATEMENT IN NO LESS THAN EIGHTEEN-POINT BOLDFACE TYPE ON THE SPLASH PAGE: "(BROKER NAME) IS NOT A LICENSED NEW MOTOR VEHICLE DEALER IN THE STATE OF NEW YORK, NOR IS IT AN AUTHORIZED AFFILIATE OF ANY LICENSED NEW MOTOR VEHICLE DEALER IN THE STATE OF NEW YORK". 6. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER BUSINESS TO INCLUDE ANY PRICING OR FINANCING OFFERS OR PROMOTIONS IN ANY ADVERTISEMENT, INCLUDING ANY PRINT, ELECTRONIC OR DIGITAL SIGNAL OR MEDIUM, WRITTEN OR VERBAL STATEMENT OR WORD, DESIGN, DEVICE, SOUND OR ANY COMBINATION OF ANY SUCH METHOD OR MEDIUM. 7. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER BUSINESS TO GAIN ACCESS TO OR USE, OR REPRESENT OR ADVERTISE THAT IT MAY ACCESS OR USE, A PORTAL, COMPUTER, OR INTERNET ACCOUNT OWNED BY OR RESERVED FOR A NEW MOTOR VEHICLE DEALER TO ACCESS OR USE ONE OR MORE A. 6655--E 7 FINANCE SOURCES THAT PROVIDE AUTOMOTIVE-RELATED LOANS, OR PURCHASES RETAIL INSTALLMENT CONTRACTS OR LEASE CONTRACTS FOR MOTOR VEHICLES. § 7. Section 741-b of the general business law, as added by chapter 28 of the laws of 2018, is amended to read as follows: § 741-b. [Disclosure] DISCLOSURES REQUIRED BY BROKERS. 1. An automo- bile broker business shall GENERATE AND provide a disclosure at the time such automobile broker business takes an order to search for a leased OR PURCHASED vehicle meeting the prospective BUYER OR lessee's specifica- tions. Such disclosure shall provide the amount of any fees, commissions 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 PURCHASE OR lease transaction. If the amount of any such fees, commissions 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 PURCHASE OR lease trans- action[; and (b) whether the automobile broker business may be compen- sated by the dealer, lessor or any other person or entity for any assistance in effecting such lease transaction]. NOTHING IN THIS SUBDI- VISION SHALL BE CONSTRUED TO PERMIT THE PAYMENT OF ANY FEES, COMMISSIONS OR OTHER VALUABLE CONSIDERATION TO AN AUTOMOBILE BROKER BUSINESS BY ANY MOTOR VEHICLE DEALER. 2. AN AUTOMOBILE BROKER BUSINESS SHALL GENERATE AND PROVIDE AN ADDI- TIONAL DISCLOSURE TO THE CONSUMER AT THE TIME SUCH AUTOMOBILE BROKER BUSINESS TAKES AN ORDER TO SEARCH FOR A MOTOR VEHICLE MEETING THE PROSPECTIVE BUYER OR LESSEE'S SPECIFICATIONS. SUCH ADDITIONAL DISCLOSURE SHALL STATE THE FOLLOWING: (A) THAT THE AUTOMOBILE BROKER BUSINESS SHALL MAKE A BONA FIDE ATTEMPT TO OBTAIN A BID, QUOTE OR OFFER FROM AT LEAST THREE UNAFFILIATED DEALERS ON BEHALF OF THE PROSPECTIVE BUYER OR LESSEE FOR A MOTOR VEHICLE MEETING THE PROSPECTIVE BUYER OR LESSEE'S SPECIFICATIONS, INCLUDING FROM THE NEW MOTOR VEHICLE DEALER OF SUCH LINE-MAKE LOCATED CLOSEST TO THE HOME OR PLACE OF BUSINESS OF SUCH PROSPECTIVE BUYER FOR A CONSUMER THAT SEEKS A NEW MOTOR VEHICLE; (B) THAT THE AUTOMOBILE BROKER BUSINESS SHALL PROVIDE TO THE CONSUMER ALL CONTENTS OF EACH BID MADE BY A MOTOR VEHICLE DEALER IN RESPONSE TO THE SOLICITATION OF THE AUTOMOBILE BROKER BUSINESS; AND (C) THAT THE AUTOMOBILE BROKER BUSINESS HAS A DUTY TO ACT FOR THE BENEFIT OF THE PROSPECTIVE BUYER OR LESSEE. 3. EACH DISCLOSURE REQUIRED BY THIS SECTION TO BE MADE TO A CONSUMER SHALL BE ACKNOWLEDGED IN WRITING BY EACH CONSUMER. 4. PRIOR TO THE EXECUTION OF ANY PURCHASE CONTRACT OR LEASE FOR AN AUTOMOBILE, AN AUTOMOBILE BROKER BUSINESS SHALL PROVIDE EACH CONSUMER WITH ALL DISCLOSURES REQUIRED TO BE MADE BY A DEALER. § 8. The general business law is amended by adding a new section 741-c to read as follows: § 741-C. PRIVATE INFORMATION SECURITY. 1. AN AUTOMOBILE BROKER BUSI- NESS SHALL REPORT ANNUALLY TO THE DEPARTMENT OF MOTOR VEHICLES ITS COMPLIANCE WITH SECTIONS THREE HUNDRED NINETY-NINE-CC, THREE HUNDRED NINETY-NINE-DD, THREE HUNDRED NINETY-NINE-DDD, THREE HUNDRED NINETY- NINE-H, THREE HUNDRED NINETY-NINE-OO, THREE HUNDRED NINETY-NINE-P, THREE HUNDRED NINETY-NINE-PP, AND EIGHT HUNDRED NINETY-NINE-BB OF THIS CHAP- TER. FOR THE PURPOSES OF SUBDIVISION TWO OF SECTION EIGHT HUNDRED NINE- A. 6655--E 8 TY-NINE-BB OF THIS CHAPTER, AN AUTOMOBILE BROKER BUSINESS SHALL NOT BE CONSIDERED A SMALL BUSINESS AS THAT TERM IS DEFINED IN THAT SECTION. 2. IN ADDITION TO THE REQUIREMENTS OF SUBDIVISION ONE OF THIS SECTION, AN AUTOMOBILE BROKER BUSINESS SHALL: (A) KEEP AND MAINTAIN ALL CONSUMER RECORDS CONTAINING PRIVATE INFORMA- TION IN A SAFE PLACE THAT IS NOT ACCESSIBLE TO PERSONS NOT EMPLOYED BY THE AUTOMOBILE BROKER BUSINESS, INCLUDING BY KEEPING AND MAINTAINING A CLEAR AND PERMANENT PHYSICAL BARRIER FROM OTHER BUSINESSES THAT SHARE OR NEIGHBOR ITS PLACE OF BUSINESS; (B) HAVE A MAILBOX AT SUCH PLACE OF BUSINESS DEDICATED ONLY TO THE AUTOMOBILE BROKER BUSINESS; AND (C) HAVE A METHOD OF LOCKING SECURITY ITEMS, INCLUDING A LOCKING CABI- NET OR SAFE. 3. NO TRANSACTION FOR THE PURCHASE OR LEASE OF A PREVIOUSLY UNREGIS- TERED MOTOR VEHICLE THAT WAS ARRANGED, ASSISTED, FACILITATED OR EFFECTED BY AN AUTOMOBILE BROKER BUSINESS SHALL BE VALID UNLESS THE CONSUMER PERSONALLY DELIVERS AN EXECUTED PURCHASE CONTRACT OR LEASE, AND, WHERE APPLICABLE, FINANCING AGREEMENT, TO THE PLACE OF BUSINESS OF THE DEALER FROM WHICH SUCH VEHICLE WILL BE PURCHASED OR LEASED AND SUCH DEALER VERIFIES THE IDENTITY OF SUCH CONSUMER. § 9. Section 743 of the general business law, as amended by chapter 372 of the laws of 2016, is amended to read as follows: § 743. Enforcement [by]. 1. BY attorney general. In addition to the other remedies provided, whenever there shall be a violation of this article, application may be made by the attorney general in the name of the people of the state of New York to a court or justice having juris- diction by a special proceeding to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such violations; and if it shall appear to the satisfac- tion of the court or justice that the defendant has, in fact, violated this article, an injunction may be issued by such court or justice, enjoining and restraining any further violation, without requiring proof that any person has, in fact, been injured or damaged thereby. In any such proceeding, the court may make allowances to the attorney general as provided in paragraph six of subdivision (a) of section eighty-three hundred three of the civil practice law and rules, and direct restitu- tion. Whenever the court shall determine that a violation of this arti- cle has occurred, the court shall impose a civil penalty of not less than [one] FOUR thousand dollars and not more than [three] TEN thousand dollars for each violation. In connection with any such proposed appli- cation, the attorney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules. 2. BY LOCAL AUTHORITIES. (A) MUNICIPALITIES MAY, PURSUANT TO LOCAL LAW, ACT UPON THE BUSINESS ACTIVITY THAT IS THE SUBJECT OF THIS ARTICLE, PROVIDED THAT NO LOCAL GOVERNMENT MAY DIMINISH THE PROTECTIONS OR REQUIREMENTS OF THIS ARTICLE OR PREVENT ENFORCEMENT OF ITS PROVISIONS BY APPROPRIATE STATE OFFICIALS. (B) THE PROVISIONS OF THIS ARTICLE MAY BE ENFORCED IN THE SAME MANNER AS SET FORTH IN SUBDIVISION ONE OF THIS SECTION BY THE DIRECTOR OF A MUNICIPAL CONSUMER AFFAIRS OFFICE OR A BUSINESS INTEGRITY COMMISSION, OR BY THE TOWN ATTORNEY, CITY CORPORATION COUNSEL, OR OTHER LAWFULLY DESIG- NATED ENFORCEMENT OFFICER OF A MUNICIPALITY OR LOCAL GOVERNMENT, AND ALL MONIES COLLECTED THEREUNDER SHALL BE RETAINED BY SUCH MUNICIPALITY OR LOCAL GOVERNMENT, PROVIDED THAT NO LOCAL GOVERNMENT MAY PREVENT ENFORCE- MENT OF ITS PROVISIONS BY APPROPRIATE STATE OFFICIALS. A. 6655--E 9 3. BY PRIVATE PARTY. ANY PERSONS THAT ARE OR MAY BE INJURED BY ANY VIOLATION OF THIS ARTICLE MAY BRING AN ACTION IN HIS OR HER OWN NAME AGAINST AN AUTOMOBILE BROKER BUSINESS TO ENJOIN SUCH UNLAWFUL ACT OR PRACTICE, AN ACTION TO RECOVER HIS OR HER DAMAGES AND STATUTORY DAMAGES OF NOT LESS THAN FOUR THOUSAND DOLLARS AND NOT MORE THAN TEN THOUSAND DOLLARS FOR EACH VIOLATION, OR BOTH SUCH ACTIONS. INJURY SHALL INCLUDE, BUT NOT BE LIMITED TO, LOST SALES ON ACCOUNT OF DECEPTIVE OR UNFAIR ADVERTISING AND DEPRIVING A NEW MOTOR VEHICLE DEALER LOCATED CLOSEST TO A LESSEE OR PURCHASER THE OPPORTUNITY TO BID ON SUCH LEASE OR PURCHASE AS ENTITLED BY THIS ARTICLE. DAMAGES SHALL INCLUDE, BUT NOT BE LIMITED TO, LOST SALES AND THE VALUE OF INCENTIVE PAYMENTS, BONUSES, HOLDBACKS OR SIMILAR PAYMENTS THAT WOULD HAVE BEEN REALIZED HAD A LESSEE OR PURCHASER PURCHASED OR LEASED SUCH VEHICLE FROM THE NEW MOTOR VEHICLE DEALER IN CLOSEST PROXIMITY TO SUCH LESSEE OR PURCHASER BUT FOR THE ACTIONS OF A PERSON WHO KNOWINGLY AIDED THE VIOLATION OF THE PROVISIONS OF THIS ARTICLE. NOTHING IN THIS SECTION SHALL REQUIRE A FRANCHISOR, MANUFACTURER, OR DISTRIBUTOR TO GRANT A NEW MOTOR VEHICLE DEALER A BENE- FIT UNDER AN INCENTIVE, BONUS, HOLDBACK OR SIMILAR PAYMENT THAT THE NEW MOTOR VEHICLE DEALER DID NOT EARN OR FOR WHICH THE NEW MOTOR VEHICLE DEALER DID NOT COMPLETE OR QUALIFY. SUCH ACTIONS MAY BE BROUGHT REGARD- LESS OF WHETHER OR NOT THE UNDERLYING VIOLATION IS CONSUMER-ORIENTED OR HAS A PUBLIC IMPACT. GIVEN THE REMEDIAL NATURE OF THIS SUBDIVISION, STANDING TO BRING AN ACTION UNDER THIS SUBDIVISION SHALL BE LIBERALLY CONSTRUED AND SHALL BE AVAILABLE TO THE FULLEST EXTENT OTHERWISE PERMIT- TED BY LAW. THE COURT MAY, IN ITS DISCRETION, AWARD TREBLE DAMAGES IF THE COURT FINDS THE DEFENDANT WILLFULLY OR KNOWINGLY VIOLATED THIS ARTI- CLE. THE COURT SHALL AWARD REASONABLE ATTORNEY'S FEES AND COSTS TO A PREVAILING PLAINTIFF. § 10. Paragraph a of subdivision 1 of section 415 of the vehicle and traffic law, as amended by chapter 554 of the laws of 2015, is amended 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 OR LEASE 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. FOR THE PURPOSES OF THIS SECTION, "OFFERS FOR SALE OR LEASE" SHALL INCLUDE, BUT NOT BE LIMITED TO, THE ACT OF DRAWING THE PUBLIC'S ATTEN- TION TO, OR THE PRESENTATION OR DISPLAY OF ANY MOTOR VEHICLE, INCLUDING THE POSTING OF IMAGES OF ANY SUCH VEHICLE, TOGETHER WITH A SUGGESTED RETAIL PRICE, LEASE COST OR FINANCING RATE FOR SUCH VEHICLE AND AN OFFER TO PROVIDE, THE PROVISION OF, OR A REPRESENTATION THAT SUCH PERSON MAY PROVIDE A SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF SUCH NEW MOTOR VEHICLE, EXCEPT THIS MEANING SHALL NOT APPLY TO ANY ACTIVITY OF A COOPERATIVE OR OTHER ADVERTISING PROGRAM OR FUND AS DESCRIBED IN ANY FRANCHISE, AS SUCH TERM IS DEFINED BY SUBDI- VISION SIX OF SECTION FOUR HUNDRED SIXTY-TWO OF THIS TITLE, OR THE DISPLAY OF AGGREGATED INFORMATION AND IMAGES BY A NATIONAL SERVICE THAT A. 6655--E 10 OTHERWISE DOES NOT HAVE CONTACT WITH CONSUMERS. 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. § 11. Subdivision 3 of section 415 of the vehicle and traffic law is amended by adding a new paragraph d to read as follows: D. IT IS HEREBY DECLARED TO BE A FRAUDULENT PRACTICE, FOR THE PURPOSES OF PARAGRAPH C OF SUBDIVISION NINE OF THIS SECTION, FOR A DEALER TO USE ANY SUBSIDIARY CORPORATION, AFFILIATED CORPORATION, OR ANY OTHER CONTROLLED CORPORATION, PARTNERSHIP, ASSOCIATION, BUSINESS OR PERSON TO ACCOMPLISH WHAT WOULD OTHERWISE BE UNLAWFUL CONDUCT UNDER THIS ARTICLE OR ARTICLE THIRTY-FIVE-B OF THE GENERAL BUSINESS LAW, INCLUDING REQUEST- ING THAT AN AUTOMOBILE BROKER BUSINESS REPRESENT SUCH DEALER IN GENERAT- ING A SALE OR LEASE OR MAKING PAYMENT TO, EITHER DIRECTLY OR INDIRECTLY, AN AUTOMOBILE BROKER BUSINESS. § 12. Subdivision 3-a and paragraph b-3 of subdivision 5 of section 415 of the vehicle and traffic law, as added by chapter 477 of the laws of 2017, are amended to read as follows: 3-a. Automobile broker business registration. A. 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 busi- ness in this state, unless there shall have been issued to him or her a certificate of registration as an automobile broker business by the commissioner under this section pursuant to an application for registra- tion submitted pursuant to subdivision five of this section. SUCH REGIS- TRATION SHALL BE EFFECTIVE FOR A PERIOD NOT EXCEEDING TWO YEARS. AT THE DISCRETION OF THE COMMISSIONER A REGISTRATION MAY BE RENEWED FOR A PERI- OD OF UP TO TWO YEARS UPON APPLICATION THEREFOR, IN SUCH FORM AS THE COMMISSIONER MAY PRESCRIBE, AND A SHOWING OF PROOF OF SATISFACTION OF THE REQUIREMENTS OF SECTION SEVEN HUNDRED FORTY-A OF THE GENERAL BUSI- NESS LAW, AND UPON PAYMENT OF THE FEE AS HEREIN PRESCRIBED. B. THE COMMISSIONER SHALL NOT ISSUE OR RENEW A CERTIFICATE OF REGIS- TRATION AUTHORIZED BY THIS SUBDIVISION TO ANY DEALER, FRANCHISEE, FRAN- CHISOR, MANUFACTURER, DISTRIBUTOR, DISTRIBUTOR BRANCH OR FACTORY BRANCH, AS SUCH TERMS ARE DEFINED IN SECTION FOUR HUNDRED SIXTY-TWO OF THIS TITLE, OR TO ANY SUBSIDIARY, AFFILIATE, EMPLOYEE OR CONTROLLED PERSON OR ENTITY THEREOF. C. AS A CONDITION OF ANY CERTIFICATE OF REGISTRATION ISSUED OR RENEWED PURSUANT TO THIS SUBDIVISION, AN AUTOMOBILE BROKER BUSINESS SHALL HAVE, AND CONTINUOUSLY MAINTAIN, A PLACE OF BUSINESS IN THIS STATE FOR WHICH IT SHALL KEEP AND MAINTAIN EVIDENCE THAT ALL NECESSARY APPROVALS, LICENSES AND/OR PERMITS HAVE BEEN OBTAINED FROM ALL LOCAL GOVERNING BODIES TO OPERATE SUCH PLACE OF BUSINESS WITH CUSTOMER OR CLIENT TRAF- FIC. NO MORE THAN ONE AUTOMOBILE BROKER BUSINESS SHALL OPERATE AT ANY SINGLE LOCATION AND NO AUTOMOBILE BROKER BUSINESS SHALL OPERATE AT THE SAME LOCATION AS A NEW MOTOR VEHICLE DEALER. D. EVERY REGISTERED AUTOMOBILE BROKER BUSINESS SHALL PROMINENTLY AND CONSPICUOUSLY POST, IN SUCH A MANNER THAT IT IS LIKELY TO BE NOTICEABLE TO ANYONE ENTERING ITS PREMISES, ITS OFFICIAL BUSINESS CERTIFICATE OF REGISTRATION AND A SIGN, WHICH SIGN SHALL CLEARLY STATE: "(NAME OF REGISTERED AUTOMOBILE BROKER) IS NOT A FRANCHISED NEW MOTOR VEHICLE DEALER. WE ARE NOT AUTHORIZED OR APPROVED BY A MANUFACTURER OR DISTRIBUTOR TO SELL A NEW MOTOR VEHICLE OR PERFORM RECALL OR ORIGINAL FACTORY WARRANTY WORK. IF YOU ORDER A SEARCH FOR A NEW MOTOR VEHICLE FROM THIS BROKER, WE MUST MAKE A BONA FIDE EFFORT TO SOLICIT BIDS FROM A. 6655--E 11 AT LEAST THREE UNAFFILIATED NEW MOTOR VEHICLE DEALERS FOR A NEW MOTOR VEHICLE ON YOUR BEHALF, INCLUDING FROM YOUR LOCAL DEALER." E. AS A CONDITION OF ANY CERTIFICATE OF REGISTRATION ISSUED OR RENEWED PURSUANT TO THIS SUBDIVISION, AND BEFORE PERFORMING ANY BROKER SERVICES RELATED TO A NEW MOTOR VEHICLE, AN AUTOMOBILE BROKER BUSINESS SHALL ATTEST IN WRITING TO EACH CONSUMER, THAT THE BROKER: (I) IS NOT A FRAN- CHISED NEW MOTOR VEHICLE DEALER; (II) IS NOT AUTHORIZED OR APPROVED BY A MANUFACTURER OR DISTRIBUTOR TO SELL A NEW MOTOR VEHICLE OR PERFORM RECALL OR ORIGINAL FACTORY WARRANTY WORK; AND (III) THAT THE BROKER SHALL MAKE A BONA FIDE EFFORT TO SOLICIT BIDS FROM AT LEAST THREE UNAF- FILIATED NEW MOTOR VEHICLE DEALERS THAT SELL A NEW MOTOR VEHICLE OR ANY LINE OR MAKE DESIRED BY SUCH CONSUMER, INCLUDING FROM THE CONSUMER'S LOCAL DEALER. F. IT IS HEREBY DECLARED TO BE A FRAUDULENT PRACTICE, FOR THE PURPOSES OF PARAGRAPH C OF SUBDIVISION NINE OF THIS SECTION, FOR AN AUTOMOBILE BROKER BUSINESS TO DRAW THE PUBLIC'S ATTENTION TO, OR PRESENT OR DISPLAY ANY NEW MOTOR VEHICLE, INCLUDING BY POSTING IMAGES OF ANY SUCH VEHICLE, TOGETHER WITH A SUGGESTED RETAIL PRICE, LEASE COST OR FINANCING RATE FOR SUCH VEHICLE AND AN OFFER TO PROVIDE, THE PROVISION OF, OR A REPRESEN- TATION THAT SUCH PERSON MAY PROVIDE A SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF SUCH NEW MOTOR VEHI- CLE. G. NOTHING IN THIS SUBDIVISION SHALL BE CONSTRUED TO PROHIBIT A FRAN- CHISOR, MANUFACTURER, OR DISTRIBUTOR FROM SPONSORING ACTIVITIES INTENDED TO GENERATE LEADS TOWARD THE SALE OR LEASE OF A NEW MOTOR VEHICLE BY A FRANCHISEE. b-3. In the case of an application for registration as an automobile broker business, EITHER FOR INITIAL REGISTRATION OR RENEWAL THEREOF, 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, A COPY OF SUCH BOND CERTIFIED BY THE SECRETARY OF STATE OR ONE OF HIS OR HER AGENTS, AND A STATEMENT INDICATING ANY INTER- EST IN THE APPLICANT'S BUSINESS ENTITY BY A PERSON OR ENTITY DESCRIBED IN PARAGRAPH F OF SUBDIVISION ONE OR PARAGRAPH F OF SUBDIVISION SEVEN OF THIS SECTION, OR ANY EMPLOYEE OR PERSON, CONTROLLING PERSON OR ENTITY THEREOF. If the bond is to be issued by an authorized agent of the sure- ty company licensed by the state, then the name and address of that agent may be provided in lieu of the information concerning the surety company. § 13. Section 415 of the vehicle and traffic law is amended by adding two new subdivisions 21 and 22 to read as follows: 21. PENALTIES AND RIGHTS OF ACTION FOR FAILURE TO OBTAIN A CERTIFICATE OF REGISTRATION AS AN AUTOMOBILE BROKER PURSUANT TO SUBDIVISION THREE-A AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION. IN ADDITION TO ANY OTHER ACTION AUTHORIZED BY LAW, THE COMMISSIONER, OR ANY PERSON DESIGNATED BY HIM OR HER, MAY PROCEED AGAINST A PARTY WHO HAS OPERATED AS AN AUTOMOBILE BROKER WITHOUT CERTIFICATE OF REGISTRATION IN ACCORD- ANCE WITH THE PROVISIONS OF THIS ARTICLE, IN ANY ONE OR MORE PROCEEDINGS AND BY ORDER TO ENJOIN SUCH UNLAWFUL ACTS OR PRACTICES AND REQUIRING THE OFFENDING PARTY TO PAY THE PEOPLE OF THIS STATE A PENALTY IN A SUM NOT LESS THAN FOUR THOUSAND DOLLARS AND NOT MORE THAN TEN THOUSAND DOLLARS FOR EACH VIOLATION FOUND TO HAVE BEEN COMMITTED. CIVIL PENALTIES ASSESSED UNDER THIS SUBDIVISION SHALL BE PAID TO THE COMMISSIONER FOR DEPOSIT INTO THE STATE TREASURY, AND UNPAID CIVIL PENALTIES MAY BE RECOVERED BY THE COMMISSIONER IN A CIVIL ACTION IN THE NAME OF THE COMMISSIONER. FOR THE PURPOSES OF THIS SUBDIVISION, A "VIOLATION" SHALL A. 6655--E 12 MEAN EACH VEHICLE SOLD OR LEASED TO A CONSUMER FOR WHICH THE PARTY THAT FAILED TO OBTAIN CERTIFICATION AS AN AUTOMOBILE BROKER HAS SERVED AS AN AUTOMOBILE BROKER. 22. AUTOMOBILE BROKER RECORD REQUIREMENTS. A. AUTOMOBILE BROKERS SHALL MAINTAIN A PERMANENTLY BOUND BOOK IN WHICH SHALL BE RECORDED THE MAKE, MODEL, YEAR, COLOR AND VEHICLE IDENTIFICATION NUMBER OF ALL PREVIOUSLY UNREGISTERED AUTOMOBILES FOR WHICH SUCH BROKER HAS PROVIDED A SERVICE OF PURCHASING, ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF SUCH AUTOMOBILE WITHIN ANY PRECEDING SIX-YEAR PERIOD. SUCH BROKER SHALL ALSO RECORD IN SUCH BOOK THE NAME AND ADDRESS OF THE PURCHASER OR LESSOR OF SUCH AUTOMOBILE, THE DATE OF SALE OR COMMENCEMENT OF LEASE OF SUCH AUTOMOBILE AND THE NAME AND ADDRESS OF THE DEALER FROM WHICH THE AUTOMOBILE WAS PURCHASED OR LEASED. B. AUTOMOBILE BROKER BUSINESSES SHALL MAINTAIN A PERMANENTLY BOUND BOOK IN WHICH SHALL BE RECORDED ALL COMPLETED ORDERS TO SEARCH FOR A PREVIOUSLY UNREGISTERED AUTOMOBILE WITHIN ANY PRECEDING SIX-YEAR PERIOD. SUCH BROKER SHALL ALSO RECORD IN SUCH BOOK THE DATE OF SUCH ORDER, THE NAME AND ADDRESS OF THE PERSON OR ENTITY ORDERING SUCH SEARCH, THE AUTO- MOBILE SPECIFICATIONS PROVIDED BY SUCH PROSPECTIVE BUYER OR LESSEE AND THE NAME AND ADDRESS OF THE DEALERS SOLICITED FOR A QUOTE OR OFFER ON BEHALF OF SUCH PROSPECTIVE BUYER OR LESSEE. C. SUCH BOOKS SHALL BE OPEN FOR INSPECTION BY THE COMMISSIONER, OR HIS OR HER AGENT, DURING REASONABLE BUSINESS HOURS. THE COMMISSIONER MAY ESTABLISH BY RULE THE FORM OF ANY SUCH BOOK. D. AS AN ALTERNATIVE TO A BOUND BOOK, AN AUTOMOBILE BROKER MAY USE A COMPUTER AND SOFTWARE APPROVED BY THE DEPARTMENT TO MAINTAIN THE RECORDS REQUIRED TO BE KEPT BY THIS SECTION, PROVIDED ALL INFORMATION REQUIRED BY PARAGRAPHS A AND B OF THIS SECTION ARE RECORDED AND THE RECORDS CONFORM TO SUCH ADDITIONAL REQUIREMENTS AS DETERMINED BY THE COMMISSION- ER. § 14. Subdivision 5 of section 337 of the personal property law is amended by adding a new paragraph (m) and such section is amended by adding a new subdivision 4-a to read as follows: 4-A. ANY CREDIT APPLICATION, OR OTHER REQUEST FOR A DETERMINATION OF CREDITWORTHINESS, IN FURTHERANCE OF A RETAIL LEASE AGREEMENT FOR A NEW MOTOR VEHICLE, THAT IS SUBMITTED TO A LESSOR OR ANTICIPATED ASSIGNEE THAT IS A MANUFACTURER, AS SUCH TERM IS DEFINED IN SUBDIVISION NINE OF SECTION FOUR HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW, A PERSON UNDER CONTRACT WITH A MANUFACTURER TO SERVE AS HOLDER, OR A CAPTIVE FINANCE SOURCE, AS SUCH TERM IS DEFINED BY SUBDIVISION SIXTEEN OF SECTION FOUR HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW, SHALL INCLUDE THE NAME, ADDRESS, AND DEPARTMENT OF MOTOR VEHICLES REGISTRATION NUMBER OF THE AUTOMOBILE BROKER BUSINESS THAT PROVIDED THE SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING SUCH AGREEMENT AS AGENT, BROKER, OR INTERMEDIARY FOR SUCH RETAIL LESSEE, AND THE AMOUNT OF THE FEE PAID BY THE CONSUMER TO THE AUTOMOBILE BROKER BUSINESS, AS SUCH TERM IS USED IN ARTICLE THIRTY-FIVE-B OF THE GENERAL BUSINESS LAW, FOR THE SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE LEASE OF SUCH NEW MOTOR VEHICLE. (M) IN THE CASE OF A RETAIL LEASE AGREEMENT FOR A NEW MOTOR VEHICLE, AS SUCH TERM IS DEFINED IN SUBDIVISION ELEVEN OF SECTION FOUR HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW, WHERE THE LESSOR OR ANTIC- IPATED ASSIGNEE IS A MANUFACTURER, AS SUCH TERM IS DEFINED IN SUBDIVI- SION NINE OF SECTION FOUR HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW, A PERSON UNDER CONTRACT WITH THE MANUFACTURER OF SUCH LEASED NEW MOTOR VEHICLE TO SERVE AS HOLDER, OR A CAPTIVE FINANCE SOURCE, AS SUCH A. 6655--E 13 TERM IS DEFINED BY SUBDIVISION SIXTEEN OF SECTION FOUR HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW, THE NAME, ADDRESS, AND DEPARTMENT OF MOTOR VEHICLES REGISTRATION NUMBER OF THE AUTOMOBILE BROKER BUSINESS THAT PROVIDED THE SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING SUCH AGREEMENT AS AGENT, BROKER, OR INTERMEDIARY FOR SUCH RETAIL LESSEE, AND THE AMOUNT OF THE FEE PAID BY THE CONSUMER TO THE AUTOMOBILE BROKER BUSINESS, AS SUCH TERM IS USED IN ARTICLE THIRTY-FIVE-B OF THE GENERAL BUSINESS LAW, FOR THE SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE LEASE OF SUCH NEW MOTOR VEHI- CLE. § 15. Severability. If any provision of this act, or any application of any provision of this act, is held to be invalid, that shall not affect the validity or effectiveness of any other provision of this act, or of any other application of any provision of this act, which can be given effect without that provision or application; and to that end, the provisions and applications of this act are severable. § 16. This act shall take effect immediately; provided that all auto- mobile brokers registered on the effective date of this act shall have ninety days to come into compliance with the provisions of this act.