S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5445
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 6, 2023
                                ___________
 
 Introduced  by Sen. SCARCELLA-SPANTON -- read twice and ordered printed,
   and when  printed  to  be  committed  to  the  Committee  on  Consumer
   Protection
 
 AN  ACT  to  amend  the general business law and the vehicle and traffic
   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 736 of the general business law,
 as amended by chapter 28 of the laws of 2018,  is  amended  to  read  as
 follows:
   1.  "Automobile  broker  business"  means  any  person who, for a fee,
 commission or other valuable consideration, regardless of  whether  such
 fee, commission, or consideration is paid directly by a consumer, offers
 to  provide,  provides,  or  represents  that  he  or she will provide a
 service of purchasing, arranging, assisting, facilitating  or  effecting
 the purchase or lease of an automobile as agent, broker, or intermediary
 for a consumer. "Automobile broker business" does not include any person
 registered as a NEW MOTOR VEHICLE dealer OR QUALIFIED DEALER pursuant to
 article  sixteen  of  the vehicle and traffic law, ANY PERSON REGISTERED
 UNDER SECTION FOUR HUNDRED FIFTEEN-A OF THE  VEHICLE  AND  TRAFFIC  LAW,
 ONLY  WHEN  OPERATING  UNDER  ACTIVITY  COVERED BY SUCH REGISTRATION, AN
 AUTOMOBILE AUCTIONEER, ONLY WHEN OPERATING IN THE  MANNER  DESCRIBED  IN
 SECTION  TWENTY-THREE  OF  THIS CHAPTER, nor any bona fide employee 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 automobiles 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  distributor,  DISTRIBUTOR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00498-01-3
 S. 5445                             2
              

 
 BRANCH OR FACTORY BRANCH registered under article sixteen 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 BUSINESS 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
 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  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
 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:
 S. 5445                             3
 
   (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 SPECIFICATIONS AND  IS  OR
 WILL  BE  CERTIFIED BY THE MANUFACTURER AS SUCH 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  SPECIFICATIONS, THE NAME AND STREET
 ADDRESS OF THE MODIFICATION FACILITY AND A STATEMENT IN IMMEDIATE  PROX-
 IMITY  TO  SUCH  INFORMATION THAT THE AUTOMOBILE BROKER BUSINESS ASSUMES
 FULL FINANCIAL RESPONSIBILITY THAT THE NEW MOTOR VEHICLE WILL BE PROPER-
 LY MODIFIED TO MEET ALL UNITED STATES SAFETY AND ENVIRONMENTAL  SPECIFI-
 CATIONS.
   (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-
 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
 S. 5445                             4
 
 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 OBLIGATION, 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  SPECIFI-
 CATIONS 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 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 trans-
 action 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  AGREE-
 MENT  TO  A  NEW  MOTOR  VEHICLE  BY A PERSON OTHER THAN THE PROSPECTIVE
 LESSEE.
   § 4. 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
 such  customer  deposit and the transfer of good title to the vehicle to
 the customer.
   § 5. Section 741 of the general business law, as added by chapter  616
 of the laws of 1988, is amended to read as follows:
 S. 5445                             5
 
   § 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 STATE OR A MUNICIPALITY, TO A MOTOR VEHICLE DEALER. FURTHERMORE,  IT
 SHALL  BE  A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER BUSI-
 NESS TO MAKE ANY MISREPRESENTATION TO A  MOTOR  VEHICLE  DEALER  OR  NEW
 MOTOR  VEHICLE  DEALER REGARDING THE ELIGIBILITY 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
 FINANCE SOURCES THAT  PROVIDE  AUTOMOTIVE-RELATED  LOANS,  OR  PURCHASES
 RETAIL INSTALLMENT CONTRACTS OR LEASE CONTRACTS FOR MOTOR VEHICLES.
   § 6. 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
 S. 5445                             6
 
 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 ON BEHALF OF THE  PROSPECTIVE  BUYER  OR
 LESSEE  FOR  A  MOTOR  VEHICLE MEETING THE PROSPECTIVE BUYER OR LESSEE'S
 SPECIFICATIONS;
   (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. AT THE TIME AN AUTOMOBILE BROKER BUSINESS SOLICITS A BID FROM A NEW
 MOTOR VEHICLE DEALER, SUCH BROKER SHALL PROVIDE  A  DISCLOSURE  TO  EACH
 SOLICITED  DEALER  AS TO THE PROVISIONS OF SECTION SEVEN HUNDRED THIRTY-
 NINE OF THIS ARTICLE.
   5. 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.
   § 7. 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-
 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 AND
 SHALL INSTEAD BE SUBJECT TO REASONABLE SECURITY  REQUIREMENTS  THAT  ARE
 EQUIVALENT TO THOSE APPLICABLE TO NEW MOTOR VEHICLE DEALERS.
   2. IN ADDITION TO THE REQUIREMENTS OF SUBDIVISION ONE OF THIS SECTION,
 AN AUTOMOBILE BROKER BUSINESS SHALL:
 S. 5445                             7

   (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  NEW  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 VEHI-
 CLE WILL BE PURCHASED OR LEASED AND SUCH DEALER VERIFIES THE IDENTITY OF
 SUCH CONSUMER.
   § 8. 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.
   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
 S. 5445                             8
 
 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.  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 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  BENEFIT  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
 QUALIFY. SUCH ACTIONS MAY BE BROUGHT REGARDLESS 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 AVAIL-
 ABLE TO THE FULLEST EXTENT OTHERWISE PERMITTED BY LAW. THE COURT MAY, IN
 ITS DISCRETION, AWARD TREBLE DAMAGES IF THE COURT  FINDS  THE  DEFENDANT
 WILLFULLY  OR  KNOWINGLY  VIOLATED  THIS  ARTICLE. THE COURT SHALL AWARD
 REASONABLE ATTORNEY'S FEES AND COSTS TO A PREVAILING PLAINTIFF.
   § 9. 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
 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,  OR  THE  DISPLAY  OF
 AGGREGATED  INFORMATION  AND IMAGES BY A NATIONAL SERVICE THAT 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  para-
 graph f of this subdivision and a "qualified dealer" as defined in para-
 graph g of this subdivision.
   §  10.  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
 S. 5445                             9
 
 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.
   §  11.  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."
   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; AND (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.
   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
 S. 5445                            10
 
 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.
   §  12. Section 415 of the vehicle and traffic law is amended by adding
 two new subdivisions 22 and 23 to read as follows:
   22. 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
 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.
   23. 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 NEW MOTOR
 VEHICLES 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 AUTOMO-
 BILE 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 NEW
 MOTOR VEHICLE WITHIN ANY PRECEDING SIX-YEAR PERIOD.   SUCH BROKER  SHALL
 S. 5445                            11
 
 ALSO RECORD IN SUCH BOOK 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, 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 SUBDIVISION ARE RECORDED AND  THE  RECORDS
 CONFORM TO SUCH ADDITIONAL REQUIREMENTS AS DETERMINED BY THE COMMISSION-
 ER.
   §  13. Nothing in this act shall be construed to limit, or to enlarge,
 the protections that 47 U.S.C. § 230 confers on an interactive  computer
 service for content provided by another information content provider, as
 such terms are defined in 47 U.S.C. § 230.
   §  14.  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.
   § 15. 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.