NY State Senate Bill 2023-S7972

Current Bill Status - In Senate Committee Transportation Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2024	referred to transportation

2023-S7972 (ACTIVE) - Details

Current Committee:: Senate Transportation
Law Section:: Vehicle and Traffic Law
Laws Affected:: Add §419-b, V & T L; add §99-rr, St Fin L

2023-S7972 (ACTIVE) - Summary

Establishes used motor vehicle dealer training programs to educate dealers on topics such as consumer protection and sales and use tax collection; permits trade organizations to apply to conduct training programs.

2023-S7972 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7972

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the vehicle and traffic law and the state finance law,
in relation to used motor vehicle dealer education

 
PURPOSE OR GENERAL IDEA OF BILL:

To require applicants for used vehicle dealer licenses and designated
individuals who work at these dealerships to complete a training program
established by the Department of Motor Vehicles.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill directs the Commissioner of the Department of
Motor Vehicles (DMV) or a qualified trade organization approved by DMV
to create the following training programs for eligible used vehicle
dealers (those licensed or seeking licensure as used vehicle dealers and
who are not licensed or seeking licensure as a new vehicle dealer):

* A prelicensure dealer training program for applicants for an original
used vehicle dealer license. This program must be completed by an appli-
cant for an original eligible used vehicle dealers license, and by each
partner or officer of the applicant, in the six-month period before the
date of the license application.

* A training program for designated individuals, like the manager or
other employee of the dealer, selected by a licensed dealer to receive
the training. The selection of a designated individual and completion of
the training must be done in 90 days after the license is issued. The
training must be offered at least twice a year and include at least
eight hours of training in transferring title, documentation of title
transfers, record keeping, and any other topic considered appropriate by
the DMV.

* A continuing education training program to be completed by a desig-
nated individual at least once in every 24-month period after the
license is issued. The training must be offered at least twice a year
and include four hours of training.

The training described above can be conducted either online or in
person. A qualified trade organization means a bona fide nonprofit
membership organization that is based in New York, that has existed for
at least five years, and whose members are primarily eligible used vehi-
cle dealers.

The bill establishes a process under which a qualified trade organiza-
tion could be approved to conduct a training program. To be approved, an
applicant must provide documentation that the applicant is a qualified
trade organization, a training program plan for reach training program
the qualified trade organization intends to conduct and any other infor-
mation that DMV might require.

The initial application fee would be up to $500 and a renewal fee of up
to 50% of the initial application fee. DMV would have to approve or deny
an application in writing no later than 30 days after receiving it and
state the reasons for a denial. Approved qualified trade organization
who fail to comply with the requirements of the training programs could
have their approval to conduct training suspended or revoked.

Section two of the bill creates a used motor vehicle dealer training
program fund in the joint custody of the comptroller and the DMV. The
fund consists of money received by DMV from the fees collected from the
training program participants. The money from the fund will be available
to administer the training programs.

Section three of the bill contains the effective date.

 
JUSTIFICATION:

New York is a leader in consumer protection however used motor vehicle
education is woefully insufficient. New York has no mandatory pre-li-
censing or continuing education for used motor vehicle dealers.  Pre-li-
censing education would provide individuals applying for a used motor
vehicle dealer license with information on opening a dealership, appli-
cable state and federal laws, motor vehicle regulations, proper forms,
disclosures, titling, finance and insurance, vehicle financing and
registration, sales tax, odometers, use of VERIFI, ethics, and advertis-
ing. A lack of mandatory education creates gaps in protection for
consumers and industry.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become law.

2023-S7972 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7972
 
                             I N  S E N A T E
 
                              January 4, 2024
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Transportation
 
 AN ACT to amend the vehicle and traffic law and the state  finance  law,
   in relation to used motor vehicle dealer education
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The vehicle and traffic law is  amended  by  adding  a  new
 section 419-b to read as follows:
   § 419-B. USED  MOTOR VEHICLE DEALER EDUCATION PROGRAM. 1. FOR PURPOSES
 OF THIS SECTION, THE FOLLOWING TERMS SHALL BE DEFINED AS FOLLOWS:
   (A) "DESIGNATED INDIVIDUAL" MEANS ANY OF THE FOLLOWING INDIVIDUALS, IF
 THEY ARE SELECTED BY AN ELIGIBLE USED MOTOR VEHICLE DEALER TO COMPLETE A
 TRAINING PROGRAM DESCRIBED IN THIS SECTION:
   (I) AN INDIVIDUAL WHO IS A LICENSED ELIGIBLE USED MOTOR VEHICLE DEALER
 OR A PARTNER OR OFFICER OF A LICENSED ELIGIBLE USED MOTOR VEHICLE  DEAL-
 ER; OR
   (II)  AN  INDIVIDUAL  WHO  IS  AN EMPLOYEE OF A LICENSED ELIGIBLE USED
 MOTOR VEHICLE DEALER, SUCH AS A GENERAL MANAGER, A SALES MANAGER, OR  AN
 EMPLOYEE  WHO IS RESPONSIBLE FOR PREPARING TITLE DOCUMENTS FOR THE DEAL-
 ER.
   (B) "ELIGIBLE USED  MOTOR  VEHICLE  DEALER"  MEANS  A  PERSON  WHO  IS
 LICENSED AS A USED MOTOR VEHICLE DEALER, OR IS APPLYING FOR LICENSURE AS
 A  USED  MOTOR  VEHICLE  DEALER, AND IS NOT AN OWNER, PARTNER, CORPORATE
 OFFICER, OR DIRECTOR OF A LICENSED NEW MOTOR VEHICLE DEALER  OR  SEEKING
 LICENSURE  AS AN OWNER, PARTNER, CORPORATE OFFICER, OR DIRECTOR OF A NEW
 MOTOR VEHICLE DEALER.
   (C) "FUND" MEANS THE USED MOTOR VEHICLE DEALER TRAINING  PROGRAM  FUND
 CREATED UNDER SECTION NINETY-NINE-RR OF THE STATE FINANCE LAW.
   (D) "QUALIFIED TRADE ORGANIZATION" MEANS A BONA FIDE NONPROFIT MEMBER-
 SHIP  ORGANIZATION  THAT IS BASED IN THIS STATE, THAT HAS BEEN IN EXIST-
 ENCE FOR AT LEAST FIVE YEARS, AND WHOSE MEMBERS ARE  PRIMARILY  ELIGIBLE
 USED MOTOR VEHICLE DEALERS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11872-02-3
 S. 7972                             2

 
   2.  THE  COMMISSIONER SHALL ESTABLISH EACH OF THE FOLLOWING USED MOTOR
 VEHICLE DEALER TRAINING PROGRAMS FOR ELIGIBLE USED MOTOR  VEHICLE  DEAL-
 ERS:
   (A)  A  PRE-LICENSING  DEALER  TRAINING  PROGRAM THAT MEETS ALL OF THE
 FOLLOWING REQUIREMENTS:
   (I) IS AVAILABLE TO ANY INDIVIDUAL WHO IS AN ELIGIBLE USED MOTOR VEHI-
 CLE DEALER APPLYING FOR AN ORIGINAL DEALER LICENSE OR IS  A  PARTNER  OR
 OFFICER  OF  AN  ELIGIBLE  USED  MOTOR  VEHICLE  DEALER  APPLYING FOR AN
 ORIGINAL DEALER LICENSE; AND
   (II) INCLUDES TRAINING RELATED TO THIS SECTION AND ANY  OTHER  SUBJECT
 MATTER  APPROVED  BY  THE  COMMISSIONER, SUCH AS CONSUMER PROTECTION AND
 SALES AND USE TAX COLLECTION. THE COMMISSIONER MAY  CONSULT  WITH  OTHER
 DEPARTMENTS  TO  EVALUATE  AND  DEVELOP  COURSE  CONTENT WHICH HE OR SHE
 CONSIDERS APPROPRIATE.
   (B) A TRAINING PROGRAM FOR DESIGNATED INDIVIDUALS THAT  MEETS  ALL  OF
 THE FOLLOWING:
   (I) IS OFFERED AT LEAST TWO TIMES EACH CALENDAR YEAR;
   (II) IS AVAILABLE TO ANY DESIGNATED INDIVIDUAL; AND
   (III)  INCLUDES  AT  LEAST  EIGHT  HOURS  OF PRE-LICENSING TRAINING IN
 TRANSFERRING MOTOR VEHICLE TITLES,  DOCUMENTATION  OF  TITLE  TRANSFERS,
 RECORD  KEEPING,  AND ANY OTHER SUBJECT MATTER CONSIDERED APPROPRIATE BY
 THE COMMISSIONER, SUCH AS CONSUMER PROTECTION  AND  SALES  AND  USE  TAX
 COLLECTION. THE COMMISSIONER MAY CONSULT WITH OTHER DEPARTMENTS TO EVAL-
 UATE AND DEVELOP COURSE CONTENT IT CONSIDERS APPROPRIATE.
   (C)  A  CONTINUING  EDUCATION  TRAINING  PROGRAM THAT MEETS ALL OF THE
 FOLLOWING:
   (I) IS CONDUCTED AT LEAST TWO TIMES IN EACH CALENDAR QUARTER;
   (II) INCLUDES AT LEAST FOUR HOURS OF TRAINING; AND
   (III) INCLUDES SUBJECT MATTER CONSIDERED APPROPRIATE  BY  THE  COMMIS-
 SIONER,  SUCH  AS  TRANSFERRING  MOTOR  VEHICLE TITLES, DOCUMENTATION OF
 TITLE TRANSFERS, RECORD KEEPING, CONSUMER PROTECTION, AND SALES AND  USE
 TAX  COLLECTION.  THE COMMISSIONER MAY CONSULT WITH OTHER DEPARTMENTS IT
 CONSIDERS APPROPRIATE TO EVALUATE AND DEVELOP COURSE CONTENT.
   3. IN THE SIX MONTH PERIOD PRECEDING THE DATE OF THE  APPLICATION  FOR
 AN  ORIGINAL ELIGIBLE USED MOTOR VEHICLE DEALER LICENSE, EACH INDIVIDUAL
 WHO IS THE APPLICANT, EACH PARTNER OF THE APPLICANT, OR EACH  OFFICE  OF
 THE APPLICANT, AS APPLICABLE, FOR THE ORIGINAL ELIGIBLE USED MOTOR VEHI-
 CLE  DEALER  LICENSE  SHALL  COMPLETE  THE PRE-LICENSING DEALER TRAINING
 PROGRAM DESCRIBED IN PARAGRAPH (A) OF SUBDIVISION TWO OF  THIS  SECTION.
 THIS SUBDIVISION DOES NOT APPLY TO ANY OF THE FOLLOWING:
   (A)  AN APPLICANT, OR APPLICATION, FOR THE RENEWAL OF AN ELIGIBLE USED
 MOTOR VEHICLE DEALER LICENSE;
   (B) THE HOLDER OF AN  ORIGINAL  ELIGIBLE  USED  MOTOR  VEHICLE  DEALER
 LICENSE  THAT WAS GRANTED BEFORE, AND IS VALID, ON THE EFFECTIVE DATE OF
 THIS SECTION; OR
   (C) THE OWNER, PARTNER, CORPORATE OFFICER, OR DIRECTOR OF A NEW  VEHI-
 CLE DEALER LICENSE.
   4.  AN  ELIGIBLE  USED  MOTOR VEHICLE DEALER SHALL SELECT A DESIGNATED
 INDIVIDUAL FOR EACH OF ITS RETAIL  SALES  LOCATIONS.  AN  ELIGIBLE  USED
 MOTOR  VEHICLE DEALER SHALL NOT SELECT THE SAME INDIVIDUAL AS THE DESIG-
 NATED INDIVIDUAL FOR MORE THAN THREE RETAIL SALES LOCATIONS.
   5. THE HOLDER OF AN ORIGINAL OR RENEWED ELIGIBLE  USED  MOTOR  VEHICLE
 DEALER  LICENSE  THAT  WAS GRANTED BEFORE, AND IS VALID ON THE EFFECTIVE
 DATE OF THIS SECTION SHALL COMPLY WITH  THE  PROVISIONS  OF  SUBDIVISION
 THREE OF THIS SECTION PRIOR TO THE DATE OF THE NEXT REQUIRED RENEWAL.
 S. 7972                             3
 
   6.  IN  ADDITION TO THE TRAINING PROGRAM DESCRIBED IN PARAGRAPH (B) OF
 SUBDIVISION TWO OF THIS SECTION, AN ELIGIBLE USED MOTOR  VEHICLE  DEALER
 SHALL  ENSURE  THAT  A  DESIGNATED  INDIVIDUAL  COMPLETES THE CONTINUING
 EDUCATION TRAINING PROGRAM DESCRIBED IN PARAGRAPH (C) OF SUBDIVISION TWO
 OF  THIS SECTION ONCE IN EACH TWENTY-FOUR MONTH PERIOD AFTER THE DATE OF
 ISSUANCE OF ITS ORIGINAL LICENSE.
   7. THE TRAINING REQUIREMENTS DESCRIBED IN SUBDIVISIONS TWO, THREE  AND
 FIVE  OF  THIS  SECTION MAY BE SATISFIED BY ATTENDING A TRAINING PROGRAM
 THAT IS CONDUCTED BY THE DEPARTMENT OF A  QUALIFIED  TRADE  ORGANIZATION
 APPROVED BY THE COMMISSIONER UNDER SUBDIVISION NINE OF THIS SECTION.
   8.  A  QUALIFIED  TRADE ORGANIZATION MAY APPLY TO THE COMMISSIONER FOR
 APPROVAL TO CONDUCT THE TRAINING PROGRAMS DESCRIBED IN  SUBDIVISION  TWO
 OF  THIS  SECTION.  A  QUALIFIED  TRADE ORGANIZATION SHALL NOT CONDUCT A
 TRAINING PROGRAM UNLESS IT OBTAINS THE APPROVAL  FROM  THE  COMMISSIONER
 UNDER  SUBDIVISION  NINE OF THIS SECTION. THE COMMISSIONER SHALL DEVELOP
 AND MAKE AVAILABLE AN APPLICATION FORM WITHIN THIRTY DAYS OF THE  EFFEC-
 TIVE DATE OF THIS SECTION.
   9. (A) THE COMMISSIONER SHALL ESTABLISH AN APPLICATION PROCEDURE FOR A
 QUALIFIED  TRADE ORGANIZATION TO OBTAIN APPROVAL TO CONDUCT THE TRAINING
 PROGRAMS DESCRIBED IN SUBDIVISION TWO OF THIS SECTION THAT INCLUDES  ALL
 OF THE FOLLOWING REQUIREMENTS:
   (I)  ANY DOCUMENTATION REQUIRED FOR ESTABLISHING THAT THE APPLICANT IS
 A QUALIFIED TRADE ORGANIZATION;
   (II) A TRAINING PROGRAM PLAN OR CURRICULUM FOR EACH  TRAINING  PROGRAM
 THE  QUALIFIED  TRADE ORGANIZATION INTENDS TO CONDUCT THAT IS CONSISTENT
 WITH THE TRAINING PROGRAMS DESCRIBED IN SUBDIVISION TWO OF THIS SECTION;
 AND
   (III) ANY OTHER INFORMATION OR REQUIREMENTS THE COMMISSIONER CONSIDERS
 NECESSARY FOR PURPOSES OF APPROVING AN APPLICATION.
   (B) NOT LATER THAN THIRTY DAYS AFTER RECEIVING  AN  APPLICATION  UNDER
 THIS SUBDIVISION FROM A QUALIFIED TRADE ORGANIZATION TO CONDUCT TRAINING
 PROGRAMS  UNDER THIS SECTION, THE COMMISSIONER SHALL APPROVE OR DENY THE
 APPLICATION. THE COMMISSIONER SHALL PROVIDE THE APPROVAL  OR  DENIAL  IN
 WRITING AND, IF DENIED, SHALL STATE THE REASONS FOR THE DENIAL.  REGARD-
 LESS  OF  THE REASON FOR DENIAL, THE APPLICANT MAY RESUBMIT THE APPLICA-
 TION CORRECTING THE DEFICIENCIES IDENTIFIED IN THE DENIAL LETTER.    THE
 COMMISSIONER SHALL HAVE TEN BUSINESS DAYS TO REVIEW A RESUBMITTED APPLI-
 CATION  AND  EITHER  APPROVE  OR  DENY THE APPLICATION. IF A RESUBMITTED
 APPLICATION IS DENIED, THE DENIAL MUST BE IN WRITING  TO  THE  APPLICANT
 AND  THE  APPLICANT MUST HAVE AN OPPORTUNITY TO CORRECT ANY DEFICIENCIES
 IDENTIFIED IN THE DENIAL LETTER.
   (C) THE TRAINING PROGRAMS ESTABLISHED BY THE DEPARTMENT OR ANY  TRAIN-
 ING  PROGRAM APPROVED UNDER THIS SUBDIVISION MAY BE CONDUCTED IN PERSON,
 ONLINE OR BY OTHER ELECTRONIC MEANS.
   10. THE DEPARTMENT SHALL PERIODICALLY MONITOR  ALL  TRAINING  PROGRAMS
 APPROVED  UNDER SUBDIVISION NINE OF THIS SECTION FOR COMPLIANCE WITH THE
 REQUIREMENTS OF THE TRAINING PROGRAMS DESCRIBED IN  SUBDIVISION  TWO  OF
 THIS  SECTION.  IF  A QUALIFIED TRADE ORGANIZATION THAT HAS RECEIVED THE
 APPROVAL TO CONDUCT A TRAINING PROGRAM OR PROGRAMS FAILS TO COMPLY  WITH
 THE  REQUIREMENTS  OF THE TRAINING PROGRAMS, THE COMMISSIONER MAY, AFTER
 NOTICE AND HEARING, SUSPEND OR REVOKE THE APPROVAL.
   11. THE DEPARTMENT SHALL NOT RENEW THE LICENSE  OF  AN  ELIGIBLE  USED
 MOTOR  VEHICLE  DEALER  UNLESS  THE  APPLICATION  FOR RENEWAL INCLUDES A
 CERTIFICATION FROM THE DEALER THAT IT IS IN COMPLIANCE WITH THE TRAINING
 REQUIREMENTS APPLICABLE UNDER THIS SECTION.
 S. 7972                             4
 
   12. THE DEPARTMENT MAY CHARGE A QUALIFIED TRADE ORGANIZATION AN ANNUAL
 FEE FOR APPLYING FOR APPROVAL TO CONDUCT TRAINING  PROGRAMS  UNDER  THIS
 SECTION. SUCH ANNUAL FEE SHALL BE:
   (A)  AN  INITIAL  APPLICATION  FEE OF UP TO FIVE HUNDRED DOLLARS TO BE
 DETERMINED BY THE COMMISSIONER; AND
   (B) AN APPLICATION RENEWAL FEE  IN  AN  AMOUNT  NOT  TO  EXCEED  FIFTY
 PERCENT OF THE INITIAL APPLICATION FEE.
   13. A QUALIFIED TRADE ORGANIZATION THAT RECEIVED APPROVAL TO CONDUCT A
 TRAINING PROGRAM SHALL DO ALL OF THE FOLLOWING:
   (A)  NOTIFY THE DEPARTMENT OF THE DATE, TIME, AND LOCATION OF A TRAIN-
 ING PROGRAM AT  LEAST  THREE  DAYS  PRIOR  TO  CONDUCTING  THE  TRAINING
 PROGRAM. ALL TRAINING PROGRAMS MUST BE MADE AVAILABLE TO THE DEPARTMENT;
   (B) REPORT TO THE DEPARTMENT A LIST OF ALL PARTICIPANTS THAT COMPLETED
 THE TRAINING PROGRAM IN AN ELECTRONIC FORMAT; AND
   (C)  REMIT  TO  THE  DEPARTMENT A PAYMENT OF FIVE DOLLARS PER TRAINING
 PROGRAM PARTICIPANT.
   14. THE FEES COLLECTED BY THE DEPARTMENT UNDER SUBDIVISION  TWELVE  OF
 THIS  SECTION SHALL BE DEPOSITED IN THE USED MOTOR VEHICLE DEALER TRAIN-
 ING PROGRAM FUND CREATED  UNDER  SECTION  NINETY-NINE-RR  OF  THE  STATE
 FINANCE LAW.
   15.  THE COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS TO EFFEC-
 TUATE THE PROVISIONS OF THIS SECTION.
   § 2. The state finance law is amended by adding a new section 99-rr to
 read as follows:
   99-RR. USED MOTOR VEHICLE DEALER TRAINING PROGRAM FUND.  1.  THERE  IS
 HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE
 COMMISSIONER  OF  MOTOR  VEHICLES  A FUND TO BE KNOWN AS THE "USED MOTOR
 VEHICLE DEALER TRAINING PROGRAM FUND".
   2. THE FUND SHALL CONSIST OF ALL MONEYS RECEIVED BY THE DEPARTMENT  OF
 MOTOR  VEHICLES UNDER SECTION FOUR HUNDRED NINETEEN-B OF THE VEHICLE AND
 TRAFFIC LAW AND ANY OTHER MONEYS APPROPRIATED THEREFOR.
   3.  MONEYS  FROM  THE  FUND  SHALL  BE  AVAILABLE  TO  ADMINISTER  THE
 PROVISIONS OF SECTION FOUR HUNDRED NINETEEN-B OF THE VEHICLE AND TRAFFIC
 LAW.    MONIES SHALL BE PAID OUT OF THE FUND ON THE AUDIT AND WARRANT OF
 THE COMPTROLLER ON VOUCHERS APPROVED BY THE COMMISSIONER OF MOTOR  VEHI-
 CLES.  ANY  INTEREST RECEIVED BY THE COMPTROLLER ON MONIES ON DEPOSIT IN
 THE USED MOTOR VEHICLE DEALER TRAINING PROGRAM FUND SHALL BE RETAINED IN
 AND BECOME PART OF SUCH FUND.
   § 3. This act shall take effect on the thirtieth day  after  it  shall
 have become a law.

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Senate Bill S7972

Sponsored By

Current Bill Status - In Senate Committee Transportation Committee

2023-S7972 (ACTIVE) - Details

2023-S7972 (ACTIVE) - Summary

2023-S7972 (ACTIVE) - Sponsor Memo

2023-S7972 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7972

Share this bill

Sponsored By

Kevin Thomas

Current Bill Status - In Senate Committee Transportation Committee

2023-S7972 (ACTIVE) - Details

2023-S7972 (ACTIVE) - Summary

2023-S7972 (ACTIVE) - Sponsor Memo

2023-S7972 (ACTIVE) - Bill Text download pdf

Comments