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.

                            
 
                     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.

                            
 
                     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.

                            
 
                     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.

                            
 
                     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.