NY State Assembly Bill A6655E

Archive: Last Bill Status - In Assembly Committee

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (12)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
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

Bill Amendments

Original

E (Active)

Original

E (Active)

Co-Sponsors

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Multi-Sponsors

A6655 - Details

Law Section:: General Business Law
Laws Affected:: Amd §415, V & T L; amd Gen Bus L, generally; amd §337, Pers Prop L
Versions Introduced in Other Legislative Sessions:: 2021-2022: A1932
2023-2024: A3499

A6655 - Summary

Requires registration of new automotive broker businesses; enacts various provisions relating to conduct of such businesses; defines certain deceptive practices; establishes rights of action and penalties.

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

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Multi-Sponsors

A6655A - Details

Law Section:: General Business Law
Laws Affected:: Amd §415, V & T L; amd Gen Bus L, generally; amd §337, Pers Prop L
Versions Introduced in Other Legislative Sessions:: 2021-2022: A1932
2023-2024: A3499

A6655A - Summary

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.

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A6655B - Details

Law Section:: General Business Law
Laws Affected:: Amd §415, V & T L; amd Gen Bus L, generally; amd §337, Pers Prop L
Versions Introduced in Other Legislative Sessions:: 2021-2022: A1932
2023-2024: A3499

A6655B - Summary

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.

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A6655C - Details

Law Section:: General Business Law
Laws Affected:: Amd §415, V & T L; amd Gen Bus L, generally; amd §337, Pers Prop L
Versions Introduced in Other Legislative Sessions:: 2021-2022: A1932
2023-2024: A3499

A6655C - Summary

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.

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A6655D - Details

Law Section:: General Business Law
Laws Affected:: Amd §415, V & T L; amd Gen Bus L, generally; amd §337, Pers Prop L
Versions Introduced in Other Legislative Sessions:: 2021-2022: A1932
2023-2024: A3499

A6655D - Summary

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.

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A6655E (ACTIVE) - Details

Law Section:: General Business Law
Laws Affected:: Amd §415, V & T L; amd Gen Bus L, generally; amd §337, Pers Prop L
Versions Introduced in Other Legislative Sessions:: 2021-2022: A1932
2023-2024: A3499

A6655E (ACTIVE) - Summary

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.

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The New York State Senate

assembly Bill A6655E

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assembly Bill A6655E

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Archive: Last Bill Status - In Assembly Committee

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Peter Abbate

Albert A. Stirpe

Karines Reyes

Michael DenDekker

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 - Summary

A6655 - Bill Text download pdf

Co-Sponsors

Peter Abbate

Albert A. Stirpe

Karines Reyes

Michael DenDekker

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