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This entry was published on 2022-04-22
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SECTION 415
Registration of manufacturers, dealers, repairmen and others
Vehicle & Traffic (VAT) CHAPTER 71, TITLE 4, ARTICLE 16
§ 415. Registration of manufacturers, dealers, repairmen and others.
1. Definitions. The following terms when used in this article, shall be
deemed to mean and include:

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 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.
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.

b. "Person" means any natural person, firm, corporation, partnership,
limited liability company, entity, joint venture, association or
organization.

c. "Place of business" means a designated location at which the
business of the dealer is conducted, and, in relation to a retail
dealer, facilities for displaying new or used motor vehicles.

d. "Retail dealer" means a dealer whose business consists in whole or
in part of buying, selling or dealing in motor vehicles, motorcycles or
trailers at retail.

e. "Wholesale dealer" means a dealer whose business consists
exclusively of buying, selling or dealing in motor vehicles, motorcycles
or trailers at wholesale.

f. "New motor vehicle dealer" means a dealer who engages in the
activities described in paragraph a of this subdivision if such
activities relate to new motor vehicles and if such dealer is party to a
franchise, as the terms "new motor vehicle" and "franchise" are defined
in section four hundred sixty-two of this title; provided, however, for
purposes of this definition, a new motor vehicle shall include only
those motor vehicles commonly classified as a passenger automobile,
sport utility vehicle, light truck, pickup truck, van, minivan, or
suburban, with a gross vehicle weight rating of ten thousand pounds or
less, and shall not include (i) any such vehicle which has been
converted for use as a tow truck, or (ii) a motor vehicle for which the
current ownership document is a statement of acquisition issued pursuant
to section four hundred twenty-nine of this title, a salvage
certificate, salvage certificate of title, nonrepairable certificate, or
similar document issued by any state or jurisdiction; or (iii) any motor
vehicle commonly classified as a bus, school bus, garbage truck, marine
trailer, tow truck, motorcycle, recreational vehicle, snowmobile,
trailer, mobile home or construction equipment; and provided further
that: (i) a dealer is a new motor vehicle dealer only with respect to
those vehicles which are of the same make as those which that dealer is
authorized to sell at that location pursuant to a valid franchise
agreement; and (ii) a dealer is not acting as a new motor vehicle dealer
when displaying, advertising, storing and/or demonstrating a new
mobility vehicle.

g. "Qualified dealer" means a dealer, other than a new motor vehicle
dealer or a dealer owned in whole or in part, directly or indirectly, by
a manufacturer, who:

(i) acting through a single person, but operating at one or more
locations of such single person, has displayed new motor vehicles for
sale and/or lease, and has sold and/or leased (excluding sales or leases
of any affiliates) a minimum of four thousand new and/or used motor
vehicles annually (of which at least forty percent annually were new
motor vehicles) at retail regardless of make or model from any one or
more locations of such single person within the state, in each year from
nineteen hundred ninety-five through and including nineteen hundred
ninety-eight, exclusively; or

(ii) has displayed new motor vehicles for sale and/or lease, and has
sold and/or leased (excluding sales or leases of any affiliates) a
minimum of two hundred twenty-five new and/or used motor vehicles (of
which at least thirty-three and one-third percent were new motor
vehicles) at retail, regardless of make or model, from any one or more
locations within the state, in the twelve-month period preceding August
thirty-first, nineteen hundred ninety-nine; or

(iii) was issued an original certificate of registration as a dealer
with a validation date of May, nineteen hundred ninety-nine, has
displayed new motor vehicles for sale and/or lease, and has sold and/or
leased (excluding sales or leases of any affiliates) a minimum of one
hundred fifty new and/or used motor vehicles (of which at least fifty
were new motor vehicles), regardless of make or model, from any one or
more locations within the state, in the period between July first,
nineteen hundred ninety-nine and the effective date of chapter seven of
the laws of two thousand. Notwithstanding the provisions of subdivision
eighteen of this section, the total number of locations from which a
qualified dealer eligible pursuant to this subparagraph may operate
shall not exceed that number of locations operated by such qualified
dealer on August thirty-first, nineteen hundred ninety-nine; or

(iv) was issued a certificate of registration as a dealer new and used
with a validation date of February, nineteen hundred ninety-eight and
has continuously held a certificate of registration as a dealer for the
ten years preceding the effective date of chapter seven of the laws of
two thousand, and has sold and/or leased (excluding sales or leases of
any affiliates) a minimum of two hundred new and/or used motor vehicles
(of which at least twenty percent were new motor vehicles) regardless of
make or model, from one or more locations within the state in the period
between September first, nineteen hundred ninety-eight through and
including August thirty-first, nineteen hundred ninety-nine.

h. For the purposes of this section, "new motor vehicle" means a motor
vehicle commonly classified as a passenger automobile, sport utility
vehicle, light truck, pick up truck, van, minivan or suburban which
meets any one or more of the following criteria:

(i) a motor vehicle which has not been placed in consumer use; or

(ii) a motor vehicle which has not been transferred to someone other
than a distributor, new motor vehicle dealer, or qualified dealer; or

(iii) a motor vehicle which has less than one thousand miles on the
odometer.

Provided, however, that such term shall not include any such vehicle
which has been converted for use as a tow truck or any motor vehicle
commonly classified as a bus, school bus, garbage truck, marine trailer,
tow truck, motorcycle, recreational vehicle, snowmobile, trailer, mobile
home or construction equipment.

i. "Used motor vehicle" means any vehicle not included in the
definition of a new motor vehicle. Provided, however, that such term as
used in paragraph g of this subdivision shall include only those motor
vehicles commonly classified as a passenger automobile, sport utility
vehicle, light truck, pick up truck, van, minivan or suburban, with a
gross vehicle weight rating of ten thousand pounds or less, which (i) is
not deemed to be a "new motor vehicle" pursuant to paragraph h of this
subdivision, or (ii) has not been converted for use as a tow truck, or
(iii) is not commonly classified as a bus, school bus, garbage truck,
marine trailer, tow truck, motorcycle, recreational vehicle, snowmobile,
trailer, mobile home, or construction equipment.

j. "Lease" means to arrange for a person to enter into an agreement
subject to the provisions of article nine-A of the personal property
law, or to act as a lessor as defined in such article.

k. "Mobility vehicle" means a motor vehicle that is specially
converted and equipped to transport a person with a disability and is
altered or modified for such use by an alterer or final stage
manufacturer pursuant to parts 567 and 568 of title 49 of the code of
federal regulations or a modifier pursuant to part 595 of title 49 of
the code of federal regulations and that:

(i) has a chassis that contains: (A) a permanently lowered floor or
permanently lowered frame; or (B) a permanently raised roof and raised
door; and

(ii) contains at least one of the following: (A) an electronic or
mechanical wheelchair, scooter, or platform lift that enables a person
to enter or exit the vehicle while occupying a wheelchair or scooter;
(B) an electronic or mechanical wheelchair ramp that is installed as an
integral part or permanent attachment to the motor vehicle.

For the purposes of this section, the terms "alterer" and "final-stage
manufacturer" shall have the same meanings as such terms are defined in
part 567.3 of title 49 of the code of federal regulations, and the term
"modifier" shall mean any motor vehicle repair business that modifies a
motor vehicle to enable a person with a disability to operate, or ride
as a passenger in, the motor vehicle.

l. "New mobility vehicle" means a mobility vehicle that has not
previously been titled or registered for operation by a consumer, either
as a mobility vehicle or as a motor vehicle.

m. "Automobile broker business" shall have the meaning set forth in
subdivision one of section seven hundred thirty-six of the general
business law.

2. Registration of manufacturers, repairmen and certain others. A
person engaged in a business requiring the limited operation of motor
vehicles, motorcycles or trailers in order to facilitate the delivery,
repair or improvement thereof, or the foreclosure or repossession
thereof or the installation of something thereon or for the purpose of
dismantling such motor vehicle, motorcycle or trailer, may, instead of
obtaining vehicle registration, as provided by sections four hundred one
and four hundred ten of this chapter, apply to the commissioner for
registration under this section.

3. Registration of new motor vehicle dealers, qualified dealers, and
other motor vehicle dealers. a. No person shall engage in business as a
new motor vehicle dealer, or represent, advertise, or otherwise hold
himself or herself out as engaged or intending to engage in the business
of selling new motor vehicles in this state, unless there shall have
been issued to him or her, for a particular make, a certificate of
registration as a new motor vehicle dealer as provided in subdivision
seven of this section, or unless there shall have been issued to him or
her a certificate of registration as a qualified dealer as defined in
paragraph g of subdivision one of this section; provided, however, for
purposes of this subdivision, a new motor vehicle shall have the same
meaning as set forth in paragraph h of subdivision one of this section,
but shall not include a motor vehicle for which the current ownership
document is a statement of acquisition issued pursuant to section four
hundred twenty-nine of this title, a salvage certificate, salvage
certificate of title, nonrepairable certificate, or similar document
issued by any state or jurisdiction. Only a person who has been issued a
certificate as a new motor vehicle dealer or a qualified dealer shall be
entitled to engage in all dealer activities authorized under this
article and shall not be required to obtain an additional certificate of
registration under paragraph c of subdivision seven of this section. A
qualified dealer shall be entitled to sell new motor vehicles of any
make.

b. No person shall engage in the business of selling new motor
vehicles, or represent or advertise that he or she is engaged or intends
to engage in the business of selling new motor vehicles in this state,
unless there shall have been issued to him or her a certificate of
registration as a new motor vehicle dealer or as a qualified dealer as
provided in subdivision seven of this section. No person shall engage in
business as a dealer, or represent or advertise that he or she is
engaged or intends to engage in such business in this state, unless
there shall have been issued to him or her a certificate of registration
as provided in subdivision seven of this section. No provision of this
section shall be deemed to prohibit any dealer located outside of the
state from selling a new motor vehicle to a new motor vehicle dealer or
a qualified dealer. No provision of this section shall be deemed to
prohibit any person engaged in the leasing of new motor vehicles from
selling a new motor vehicle to a third-party bank, finance company or
other commercial lending institution, provided that such sale is made
incidental to and concurrently with the lease of such new motor vehicle
by such third party bank, finance company, or other commercial lending
institution as the lessor, to a retail customer.

c. The issuance of such certificate of registration to a new motor
vehicle dealer, a qualified dealer, or other motor vehicle dealer shall
be deemed to include the right to operate motor vehicles, motorcycles
and trailers to the extent permitted by subdivision eight of this
section, instead of obtaining vehicle registration as provided by
sections four hundred one and four hundred ten of this title. The
provisions of this section shall not apply to persons engaged in the
business of buying, selling or dealing in snowmobiles and/or snow
travellers.

3-a. Automobile broker business registration. 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 business 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
registration submitted pursuant to subdivision five of this section.

4. Number plates. A dealer, manufacturer, or other person, qualifying
for limited use of motor vehicles, motorcycles or trailers under
subdivisions two and three of this section, shall be entitled to receive
one or more sets of number plates for display thereon as the
commissioner may determine, upon payment of the required fee for each
set. Number plates issued to dealers under this section shall bear
distinctive marks to distinguish them from manufacturer and transporter
plates to be issued to other persons qualifying under this section.
Number plates issued to manufacturers under this section shall bear
distinctive marks to distinguish them from dealer and transporter plates
to be issued to other persons qualifying under this section. A set of
number plates shall consist of two plates in the case of a motor vehicle
and one plate in the case of a motorcycle or trailer; provided, however,
that the commissioner, in his or her discretion, may issue, for any
registration year, only one number as a set for a motor vehicle, in
which event a set of number plates for a motor vehicle shall consist of
one plate.

5. Application for registration. The application for registration
under this section shall be filed with the commissioner in such form and
detail as the commissioner shall prescribe, setting forth:

a. Name and residence address of applicant; if an individual, the name
under which he intends to conduct business; if a co-partnership, the
name and residence address of each member thereof, and the name under
which the business is to be conducted; if a corporation, the name of the
corporation and the name and residence address of each of the officers.

b. The place or places, including the complete address or addresses
where the business is to be conducted and, in the case of an application
to do business as a new motor vehicle dealer, the names of each line or
make of new motor vehicle which a manufacturer or distributor has
authorized the applicant to sell from each location and the date of
inception of the franchise, as defined in section four hundred sixty-two
of this title, which authorizes the applicant to sell such line or make
from each location. A copy of each such franchise, or other
documentation in lieu thereof satisfactory to the commissioner, shall be
submitted to the commissioner at the time of application and upon each
renewal of each certificate to do business as a new motor vehicle
dealer.

b-1. The name and address of the surety company which will issue the
bond required by subdivision six-b 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.

b-2. A statement indicating any interest in the applicant's franchise
entity by a person or entity described in paragraph f of subdivision
seven of this section.

b-3. In the case of an application for registration as an automobile
broker business, the name and address of the surety company which will
issue the bond required by subdivision one of section seven hundred
forty-a of the general business law. If the bond is to be issued by an
authorized agent of the surety company licensed by the state, then the
name and address of that agent may be provided in lieu of the
information concerning the surety company.

c. Such further information as the commissioner may reasonably
prescribe.

d. Before an application for an original certificate of registration
is approved, the applicant must have on the premises to be licensed
adequate space and proper facilities to retain and safeguard all records
and documents he must maintain upon the licensed premises as required by
the vehicle and traffic law and the regulations of the commissioner.

The commissioner may require the applicant for registration to appear
at such time and place as may be designated by the commissioner for
examination to enable him to determine the accuracy of the facts set
forth in the written application, either for initial registration or
renewal thereof.

Every application under this section shall be verified by the
applicant.

* 6. Fees. Every original application for registration as a dealer,
automobile broker or transporter shall be accompanied by an application
fee of thirty-seven dollars and fifty cents, which shall in no event be
refunded. The annual fee for registration as a dealer, automobile broker
or transporter or for renewal thereof shall be two hundred twenty-five
dollars. The annual fee for any other registration under this section
shall be fifty dollars. However, the commissioner may, in his or her
discretion, issue a renewal of either registration for a period of two
years. The fee for a two-year renewal shall be twice the annual fee. The
annual fee for dealer, manufacturer, or transporter number plates shall
be twenty dollars for each set. If the commissioner issues to dealers a
document which is required to be used by a dealer to sell or transfer a
vehicle, the fee for the issuance of each such document shall be five
dollars. There shall be no refund of registration fee or fees for number
plates in the event of suspension, revocation or voluntary cancellation
of registration. The fee for any such transfer document issued by the
commissioner shall be refunded only upon the surrender of such document
upon voluntary cancellation of registration.

* NB Effective until April 1, 2024

* 6. Fees. Every original application for registration as a dealer,
automobile broker or transporter shall be accompanied by an application
fee of twenty-five dollars, which shall in no event be refunded. The
annual fee for registration as a dealer, automobile broker or
transporter or for renewal thereof shall be one hundred fifty dollars.
The annual fee for any other registration under this section shall be
fifty dollars. However, the commissioner may, in his or her discretion,
issue a renewal of either registration for a period of two years. The
fee for a two-year renewal shall be twice the annual fee. The annual fee
for dealer, manufacturer, or transporter number plates shall be twenty
dollars for each set. If the commissioner issues to dealers a document
which is required to be used by a dealer to sell or transfer a vehicle,
the fee for the issuance of each such document shall be one dollar.
There shall be no refund of registration fee or fees for number plates
in the event of suspension, revocation or voluntary cancellation of
registration. The fee for any such transfer document issued by the
commissioner shall be refunded only upon the surrender of such document
upon voluntary cancellation of registration.

* NB Effective April 1, 2024

* 6-a. Fees; deposited. Fees assessed under this section shall be paid
to the commissioner for deposit to the general fund, with the exception
of the four dollar increase in the fee for issuance of a document to be
used by a dealer to sell or transfer a vehicle collected pursuant to
subdivision six of this section, which shall be deposited to the general
fund through March thirty-first, two thousand four and from April first,
two thousand four and thereafter to the dedicated highway and bridge
trust fund; and with the exception of the twelve dollar and fifty cent
increase in the fee for original application for registration as a
dealer or transporter pursuant to subdivision six of this section and
the seventy-five dollar increase in the annual fee for registration as a
dealer or transporter or for renewal pursuant to subdivision six of this
section, which shall be deposited to the dedicated highway and bridge
trust fund established pursuant to section eighty-nine-b of the state
finance law and the dedicated mass transportation fund established
pursuant to section eighty-nine-c of the state finance law and
distributed according to the provisions of subdivision (d) of section
three hundred one-j of the tax law.

* NB Effective until April 1, 2024

* 6-a. Fees; deposited. Fees assessed under this section shall be paid
to the commissioner for deposit to the general fund.

* NB Effective April 1, 2024

6-b. Dealer, qualified dealer, and new motor vehicle dealer surety
bond. a. As a condition to obtaining a registration certificate
pursuant to this section, every new motor vehicle dealer applicant and
every qualified dealer applicant shall obtain and continue in effect a
surety bond in an amount of fifty thousand dollars executed by a surety
company authorized to transact business in the state by the department
of financial services of the state. As a condition to obtaining a
registration certificate pursuant to this section, every dealer
applicant who is applying for a registration certificate in the first
instance or who sold fifty motor vehicles or fewer in the previous
calendar year shall obtain and continue in effect a surety bond in an
amount of twenty thousand dollars executed by a surety company
authorized to transact business in the state by the department of
financial services of the state. As a condition of obtaining a
registration certificate pursuant to this section, every dealer
applicant who sold more than fifty motor vehicles in the previous
calendar year 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. The bonds shall be approved as to form
by the commissioner and shall be conditioned on the new motor vehicle
dealer's, qualified dealer's, and dealer's: payment of all valid bank
drafts, including checks, drawn by such dealer for the purchase of motor
vehicles; transfer of good title to each motor vehicle such dealer
sells; 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; payment for
all fines imposed upon the new motor vehicle dealer, qualified dealer,
or dealer by the commissioner pursuant to the provisions of this
chapter; and such dealer's repayment of any overcharges of a customer by
such dealer for the vehicle registration and titling charges payable to
the commissioner for registering and titling the sold vehicle. Any such
dealer which is bonded pursuant to this section prior to the effective
date of the chapter of the laws of two thousand sixteen which amended
this paragraph shall be required to comply with the amendments made by
such chapter upon renewal, replacement, alteration, or extension of such
dealer's current surety bond.

b. Recovery against a bond may be made by a person, including the
state, who obtains a judgment against the new motor vehicle dealer,
qualified dealer, or dealer 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 new motor vehicle
dealer, qualified dealer, or dealer for the purchase of motor vehicles
or the amount of overcharge by such dealer for registration or title
fees or the amount paid to such dealer or the deposit, as the case may
be, for the motor vehicle for which good title was not delivered. 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, nor
shall any such surety bond provide coverage for transactions involving
sales of any motor vehicles for which a bond is not required pursuant to
the provisions of paragraph d of this subdivision.

c. Any surety issuing a bond pursuant to this subdivision shall be
required to provide sixty days' notice to the commissioner prior to the
effective date of cancellation or lapse of the bond, and shall provide
additional notice to the commissioner upon the date of the cancellation
or lapse of such bond. Upon the cancellation or lapse of any surety bond
required by this subdivision, the commissioner shall, within five days
of such cancellation or lapse, verify that the dealer holds a surety
bond which meets the requirements of this subdivision.

d. For purposes of this subdivision, the term "motor vehicle" means a
motor vehicle commonly classified as a passenger automobile, sport
utility vehicle, light truck, pick up truck, van, minivan, or suburban,
with a gross vehicle weight rating of ten thousand pounds or less.
Notwithstanding the provisions of paragraphs a and b of this
subdivision, the requirement to post a surety bond as set forth in this
subdivision shall not apply to any dealer who is engaged exclusively in
the business of buying, selling or dealing in motor vehicles other than
those motor vehicles with a gross vehicle weight rating of ten thousand
pounds or less and which are commonly classified as a passenger
automobile, sport utility vehicle, light truck, pick up truck, van,
minivan, or suburban, such as buses, school buses, garbage trucks,
marine trailers, tow trucks, motorcycles, recreational vehicles,
snowmobiles, trailers, mobile homes, or construction equipment.
Provided, further, that such requirement also shall not apply to any
dealer who is engaged exclusively in the business of buying, selling or
dealing in motor vehicles solely for conversion for use as a tow truck.

7. Issuance of certificate. a. If the commissioner is satisfied that
the applicant for a new motor vehicle dealer registration certificate is
party to a franchise or franchises authorizing such applicant to sell or
lease lines or makes of new motor vehicles which the applicant proposes
to sell or lease from the locations described in the application for the
sale or lease of such lines or makes and if the commissioner otherwise
approves the application, upon payment of the prescribed fee, he or she
shall issue a new motor vehicle dealer registration certificate in such
form as he or she may prescribe. Every new motor vehicle dealer
registration certificate shall by its terms permit the sale or lease of
the particular lines or makes of new motor vehicles only from a location
or locations authorized for such sale or lease in the franchise or
franchises between such new motor vehicle dealer and the manufacturers
or distributors of such new motor vehicles. The commissioner may, in his
or her discretion, issue such certificates of registration and number
plates on a staggered expiration basis, in which event the fees set
forth in subdivision six of this section for such certificate shall be
prorated on a monthly basis. A new motor vehicle dealer registered under
this section shall notify the commissioner of any change of address of
the locations of his or her place or places of business and whether or
not such locations are approved as locations for the sale or lease of
new motor vehicles in a franchise and which lines or makes are so
approved for sale or lease at each location pursuant to the franchise or
franchises within thirty days after such change is made, and the
commissioner shall be authorized to cancel the registration upon failure
to give such notice. A copy of each franchise affected by any such
change or other proof satisfactory to the commissioner shall accompany
the notice to the commissioner. If any location shall cease to be
approved by the new motor vehicle manufacturer or distributor for the
sale or lease of the line or make of new motor vehicle, then such new
motor vehicle dealer shall immediately cease selling or leasing such
line or make of new motor vehicle from such location and shall notify
the commissioner within thirty days of such change, after which such new
motor vehicle dealer registration certificate shall be modified to
reflect such change.

b. Registration certificate for qualified dealer. If a dealer makes
application, under penalty of perjury, for a registration certificate as
a qualified dealer, the commissioner shall issue a registration as a
qualified dealer to such dealer upon payment of the prescribed fee.

c. Registration certificate for other than new motor vehicle dealer or
qualified dealer. If the commissioner approves the application of an
applicant for a registration certificate other than a new motor vehicle
dealer certificate or a qualified dealer certificate, upon payment of
the prescribed fee, he or she shall issue a registration certificate in
such form as he or she may prescribe.

c-1. Special provisions relating to mobility vehicles. (i) Any dealer,
other than a new motor vehicle dealer, engaged in displaying,
advertising, storing and/or demonstrating mobility vehicles shall notify
prospective purchasers regarding any warranty on the mobility
modifications and the effect of any such modifications or alterations on
any warranty on the underlying motor vehicle and, upon the sale of any
such mobility vehicle, provide the purchaser with any warranty
information available to any such dealer relating to the underlying
motor vehicle.

(ii) Notwithstanding the provisions of article twelve-A of this
chapter, a dealer engaged in displaying, advertising, storing and/or
demonstrating mobility vehicles may, without obtaining a repair shop
license pursuant to such article twelve-A, perform repairs on those
parts of the mobility vehicle that are unique to the modifications made
thereto and which are not part of the original manufactured motor
vehicle.

d. The commissioner may, in his or her discretion, issue such
certificates of registration and number plates on a staggered expiration
basis, in which event the fees set forth in subdivision six of this
section for such certificate shall be prorated on a monthly basis. A
registrant shall notify the commissioner of any change of address of his
or her principal place of business within thirty days after such change
is made, and the commissioner shall be authorized to cancel the
registration upon failure to give such notice.

e. A registration issued under this section may be renewed upon
application therefor in such form as the commissioner may prescribe,
upon payment of the fee as herein prescribed.

f. Except as provided in paragraph (bb) of subdivision two of section
four hundred sixty-three of this title and subparagraph (iii) of this
paragraph:

(i) The commissioner shall not issue any certificate of registration
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, except that the commissioner may
renew such certificate previously issued or otherwise approved to
operate to a franchisor prior to July first, two thousand six. Nothing
in this section shall preclude the establishment of such facilities
necessary to continue the ongoing operation of any holder of a
certificate of registration authorized by this section or otherwise
approved to operate to a franchisor provided such original certificate
or approval was granted prior to July first, two thousand six.

(ii) On or after the effective date of this subparagraph, the
commissioner shall not issue any certificate of registration, or renew
any certificate, unless the original certificate was issued before July
first, two thousand six, to any motor vehicle dealer in which a
franchisor, manufacturer, distributor, distributor branch or factory
branch, as such terms are defined in section four hundred sixty-two of
this title, or any subsidiary, affiliate or controlled entity thereof,
has acquired, or possesses, a controlling interest in the franchise
entity except:

(1) when operating such franchise for a temporary period, not to
exceed one year, during the transition from one owner of the motor
vehicle dealership to another, provided, however, that such temporary
period may be extended once for an additional period not to exceed one
year for good cause. Provided that for franchisors of house coaches, the
period of temporary ownership of a franchised house coach dealership may
be extended in one year increments for good cause shown, except that the
aggregate of such extensions shall not exceed five years; or

(2) when operating such franchise temporarily under a plan with an
independent individual who is obligated to make a significant investment
in the dealership that is subject to loss and has an ownership interest
or expects to acquire full ownership in a reasonable period under
reasonable terms and conditions, provided that a reasonable period shall
be presumed to not exceed eight years.

(iii) Notwithstanding any other provision of this paragraph or any
provision of paragraph (bb) of subdivision two of section four hundred
sixty-three of this title, the commissioner may renew any certificate of
registration that was issued to a 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, prior to March twenty-sixth, two
thousand fourteen; provided, however, that such franchisor,
manufacturer, distributor, distributor branch or factory branch, or any
subsidiary, affiliate or controlled entity thereof, is a manufacturer
that manufactures or assembles exclusively zero emissions vehicles, or
is a subsidiary, affiliate, or controlled entity of such a manufacturer;
and provided further that a controlling interest in such original
franchisor, manufacturer, distributor, distributor branch or factory
branch or any subsidiary, affiliate or controlled entity was not
transferred, sold or conveyed to another person or entity, other than to
a subsidiary, affiliate or controlled entity of such franchisor,
manufacturer, distributor, distributor branch or factory branch. For
purposes of this paragraph, zero emission vehicles shall have the same
meaning as under part two hundred eighteen of title six of the New York
code of rules and regulations.

8. Use. Transporter number plates issued under this section shall be
used only for the limited operation of vehicles owned or controlled by
the registrant for the purpose of weighing, testing, dismantling,
transporting or delivering the same, or for the purpose of moving such
vehicles in connection with making installations thereon or improvements
thereto, or the repossession or foreclosure thereof, or for the
operation, for demonstration purposes, of any vehicle owned by a
manufacturer, or for transporting or delivering the vehicle upon which
the plates are displayed and additional vehicles carried in whole or in
part upon such vehicle.

Except as provided in section four hundred sixteen of this article,
dealer number plates issued under this section may be used for all
purposes for which transporter plates may be used and, in addition, may
be used for the operation of any vehicle owned or controlled by the
registrant and held for sale or demonstration, except a vehicle rented
to another, a vehicle used to transport passengers for hire, a vehicle
commonly called a "tow truck" or "wrecker" and used by the dealer for
such purposes, a vehicle equipped for the purpose of towing or pushing
disabled or nonoperated vehicles or a commercial or suburban type
vehicle used by the dealer for commercial purposes other than directly
affecting the sale or demonstration of that particular vehicle. In
addition, dealer, manufacturer, or transporter number plates may be used
for any non-self-propelled device used for the transport of modular
homes. Except as provided in section four hundred sixteen of this
article, manufacturer number plates issued under this section may be
used for all purposes for which transporter plates may be used and, in
addition, may be used for the operation of any vehicle owned or
controlled by the registrant and held for demonstration, except a
vehicle rented to another, a vehicle used to transport passengers for
hire, a vehicle commonly called a "tow truck" or "wrecker" and used by
the manufacturer for such purposes, a vehicle equipped for the purpose
of towing or pushing disabled or nonoperated vehicles or a commercial or
suburban type vehicle used by the manufacturer for commercial purposes
other than directly affecting the demonstration of that particular
vehicle.

Dealer, manufacturer, or transporter number plates issued upon renewal
of a dealer, manufacturer, or transporter registration may be used
during the thirty day period immediately preceding the expiration date
of such registration, including such expiration date.

9. Suspension, revocation and refusal to issue or to renew a
registration. The commissioner or any person deputized by him may deny
the application of any person for registration under this section and
suspend or revoke a registration under this section or refuse to issue a
renewal thereof if he or such deputy determines that such applicant or
registrant or any officer, director, stockholder, or partner, or any
other person directly or indirectly interested in the business:

a. Has made a material false statement in his application; or

b. Has used or permitted the use of number plates contrary to law; or

c. Has been guilty of fraud or fraudulent practices, or has practiced
dishonest or misleading advertising; or

d. Has failed to comply with any of the rules and regulations of the
commissioner for the enforcement of this article or with any provision
of this chapter or article thirty-five-B of the general business law
applicable thereto; or

e. Has wilfully violated any provisions of the motor vehicle retail
instalment sales act, the motor vehicle retail leasing act or section
one hundred ninety-eight-c of the general business law; or

f. Does not have a place of business within the meaning of this
section; or

g. Has been convicted of any crime involving dishonesty or deceit; or

h. Was the former holder, or was an officer, director, stockholder, or
partner, in a corporation or partnership which was the former holder of
a dealer's registration, which was suspended or revoked by the
commissioner.

9-a. Hearings; temporary suspension. (a) No registration shall be
suspended or revoked, or renewal refused, except upon notice to the
registrant and after an opportunity to be heard. Provided however, upon
a written notice of temporary suspension delivered by certified mail to
the registrant, a registration may be temporarily suspended pending a
hearing. Any such notice of temporary suspension shall provide that the
suspension is effective seventy-two hours after mailing of such notice
and shall provide that a hearing be scheduled within ten days after the
effective date of the temporary suspension.

(b) The applicant may be heard in person or by counsel. The hearing
shall be at such time and place as the commissioner shall prescribe. The
commissioner or the commissioner's designee may inspect the pertinent
books, records, letters and contracts of a registrant relating to any
written complaint or charge against such registrant. The commissioner or
the commissioner's designee shall have the power to subpoena and bring
before a hearing officer any person in this state, and administer an
oath to and take testimony of any person or cause the person's
deposition to be taken. A subpoena issued under this section shall be
regulated by the civil practice law and rules.

10. Suspension and revocation of number plates. The commissioner may
suspend or revoke number plates issued pursuant to subdivision four of
this section, if he determines that the registrant to whom these plates
have been issued has used or permitted the use of such number plates
contrary to law or to the regulations of the commissioner with respect
to the use thereof. The registrant to whom such number plates have been
issued shall have an opportunity to be heard, and the provisions of
subdivision nine of this section shall apply to hearings held under this
subdivision, and to review of determinations made by the commissioner
hereunder.

11. Following the suspension or revocation of the certificate of
registration of a dealer, manufacturer, or transporter or number plates,
pursuant to this section, the failure of the holder or any other person
possessing the certificate of registration, number plates or
certificates of sale issued to a dealer pursuant to the regulations of
the commissioner, to deliver the same to the suspending or revoking
officer, peace officer acting pursuant to his or her special duties,
police officer directed by the commissioner to secure possession
thereof, or agent of the commissioner, displaying authorization to act
in such capacity along with a certified copy of the order revoking or
suspending such registration or number plates, shall be a misdemeanor.

If any person shall fail to deliver a certificate of registration,
number plates or certificates of sale as provided herein, the
commissioner shall forthwith direct any peace officer acting pursuant to
his or her special duties or police officer to secure possession thereof
and to return the same to the commissioner.

12. The commissioner, or any person deputized by him, in addition to
or in lieu of revoking or suspending the certificate of registration of
a registrant in accordance with the provisions of this article, may in
any one proceeding by order require the registrant to pay to the people
of this state a penalty for a first violation a sum not exceeding one
thousand dollars for each violation found to have been committed; and
for a second or subsequent violation not arising out of the same
incident both of which were committed within a period of thirty months,
a sum of not more than one thousand five hundred dollars for each
violation found to have been committed; provided, however, the penalty
for each and any violation of paragraph c of subdivision nine of this
section found to have been committed shall be no less than three hundred
and fifty dollars and no more than one thousand five hundred dollars,
except that if a finding of financial loss has been made pursuant to
subdivision fourteen of this section, the amount of such penalty may be
increased by the amount of financial loss so found, and upon the failure
of such registrant to pay such penalty within twenty days after the
mailing of such order, postage prepaid, registered or certified, and
addressed to the last known place of business of such registrant, unless
such order is stayed by an order of a court of competent jurisdiction,
the commissioner may revoke the certificate of registration of such
registrant or may suspend the same for such period as he may determine.
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.

13. In addition, as an alternative to such civil action and provided
that no proceeding for judicial review shall then be pending and the
time for initiation of such proceeding shall have expired, the
commissioner may file with the county clerk of the county in which the
registrant is located a final order of the commissioner containing the
amount of the penalty assessed. The filing of such final order shall
have the full force and effect of a judgment duly docketed in the office
of such clerk and may be enforced in the same manner and with the same
effect as that provided by law in respect to executions issued against
property upon judgments of a court of record.

14. Restitution; assessment. a. Upon a determination that a registrant
has done or failed to do any act for which suspension of the
registrant's registration or a civil penalty against the registrant
could be imposed, the person making such determination may make a
finding of financial loss to any complainant or complainants resulting
from the actions of the registrant. The person making such finding may
provide that if the registrant makes restitution to the complainant or
complainants for the amount or amounts so found, that payment of such
restitution may be substituted in lieu of any suspension or civil
penalty, or a specified portion thereof imposed upon the registrant.
However, a finding of financial loss shall only be made if the
complainant (i) agrees to accept the amount so found, if offered by the
registrant, and (ii) is not a party to any litigation which is pending
or which has gone to judgment in relation to the same matter in any
civil court.

b. The amount of financial loss which may be found and proposed as
restitution shall be limited to an amount necessary to compensate the
complainant or complainants for actual losses caused by the registrant's
improper activity. Neither punitive nor incidental damages may be
included in the finding of financial loss.

c. If payment of restitution to the complainant is authorized in lieu
of all or a portion of a suspension or civil penalty, in order for the
registrant to exercise the option to make such payment, such payment
must be made by means of a certified check or money order payable to the
complainant or complainants delivered to an office of the department as
directed by the commissioner or his agent within thirty days of the date
of notice of suspension and/or civil penalty. Upon receipt of such
certified check or money order, the department shall forward the same to
the complainant or complainants. In the event that the registrant should
fail to make payment for restitution within such thirty days, but, at a
later time, pays such civil penalty, the department shall deduct from
such civil penalty the amount assessed for restitution, and shall mail a
check for such amount to the complainant or complainants.

d. If payment of restitution may be substituted in lieu of a civil
penalty or portion of a civil penalty, and the registrant does not
exercise the option to make such payment, the civil penalty becomes due
as provided in subdivision twelve of this section and the provisions of
that subdivision and subdivision thirteen of this section relating to
suspension of registration and recovery of civil penalties shall apply.

e. Any payment made in compliance with such a finding of financial
loss shall not preclude any civil action which may be brought by either
the complainant or registrant, and any such finding may be considered
but shall not be binding upon any court before which any such action is
brought.

15. Miscellaneous provisions. The commissioner may, in his or her
discretion, limit the number of sets of number plates which shall be
issued to any registrant. The provisions of subdivision three of section
four hundred one of this title with respect to the fee for lost,
mutilated or destroyed certificates and number plates shall apply to
certificates and number plates issued under this section.

In the event of the loss or theft of any dealer, manufacturer, or
transporter number plate or set of such number plates whether with or
without a date tag or tags, or any date tag or set of date tags, the
dealer or manufacturer must immediately notify the police of such fact
and in the event of loss, theft, mutilation or destruction of any such
items the dealer or manufacturer must immediately file a statement and
proof of the facts as the commissioner shall require. The provisions of
section four hundred two and four hundred eleven of this title with
respect to the care and display of number plates shall apply to number
plates issued under this section. Registration under this section shall
be upon the condition that the registrant shall conform to such
reasonable requirements as shall be prescribed by the commissioner.

The commissioner may, in his or her discretion, require a registrant
to maintain a record in a prescribed form of all vehicles received or
disposed of by him or her, which records shall be open at all times for
inspection by the commissioner, his or her representatives and any peace
officer, acting pursuant to his or her special duties, or police
officer.

If registration under this section shall be issued in the names of two
or more persons as partners and a change occurs in the membership of
such partnership, the registration shall not expire so long as any one
of the persons named in such registration is a member of the partnership
or carries on the business of the partnership as surviving member of the
partnership. However, when any such change occurs and the registration
does not expire, the partners or surviving member after such change
shall forthwith file with the commissioner a statement regarding such
partnership in such form and giving such information as the commissioner
shall require, and the commissioner shall issue a new certificate of
registration.

16. Unregistered operation; operation while suspended or revoked;
procedures and penalties. a. The commissioner or any person deputized by
him shall hear and determine any allegation that a person has operated
as a dealer without being registered as required by subdivision three of
this section or while registration is suspended or revoked. Upon a
determination that a person has so operated, the commissioner or person
deputized by him shall assess civil penalties as provided in paragraphs
b and c of this subdivision.

b. Except as provided in paragraph c of this subdivision, any person
who operates as a dealer without being registered shall be required to
pay to the people of this state a civil penalty in the sum of one
thousand dollars. However, any such person against whom such penalty has
been assessed may avoid all but five hundred dollars of such penalty by
obtaining a registration as required by this article, provided that
application for such registration is made not more than ten days after
the imposition of such penalty.

c. (i) Any person who operates as a dealer while his registration is
revoked or suspended, shall pay to the people of this state a civil
penalty in the sum of one thousand dollars. Such civil penalty may not
be avoided.

(ii) Any person who operates as a dealer without being registered as
required by subdivision three of this section who has previously had a
civil penalty assessed for unregistered operation shall pay to the
people of this state a civil penalty in the sum of one thousand dollars.
Any person who operates as a dealer without being registered as required
by subdivision three of this section who has had two previous civil
penalties assessed for unregistered operation not arising from the same
incident all of which were committed within a period of thirty months
shall pay to the people of this state a civil penalty in the sum of four
thousand ten dollars. Such civil penalties may not be avoided.

(iii) No person who operates as a dealer without being registered as
required by subdivision three of this section or while his or her
registration is revoked or suspended shall park a motor vehicle, which
he or she owns or controls and holds for sale or demonstration, upon a
public highway of this state without first being registered in
accordance with the provisions of section four hundred one of this
chapter. Any such person shall, in addition to any penalties imposed
pursuant to paragraph b of this subdivision or subparagraph (ii) of this
paragraph, be required to pay to the people of this state an additional
civil penalty of three hundred dollars for each motor vehicle owned or
controlled and held for sale or demonstration by such person which is
parked upon the public highways of this state without first being
registered in accordance with the provisions of section four hundred one
of this chapter.

d. The commissioner, or any person deputized by him, in addition to
imposing a civil penalty for unregistered operation as a dealer, may, in
any one proceeding, make a determination that the unregistered dealer
has caused a financial loss to a complainant or complainants and may
increase the civil penalty by the amount of financial loss. The person
making such finding may provide that if the unregistered dealer makes
restitution to the complainant or complainants for the amount or amounts
so found, that payment of such restitution may be substituted for the
increase in the civil penalty caused by the finding of financial loss.
However, a finding of financial loss shall only be made if the
complainant (i) agrees to accept the amount so found, if offered by the
unregistered dealer, and (ii) is not a party to any litigation which is
pending or in which judgment has been entered in any civil action in any
court of competent jurisdiction.

e. Civil penalties assessed under this section 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. In addition, as an alternative to such civil
action and provided that no proceeding for judicial review shall then be
pending and the time for initiation of such proceeding shall have
expired, the commissioner may file with the county clerk of the county
in which the registrant is located a final order of the commissioner
containing the amount of the penalty assessed. The filing of such final
order shall have the full force and effect of a judgment duly docketed
in the office of such clerk and may be enforced in the same manner and
with the same effect as that provided by law in respect to executions
issued against property upon judgments of a court of record.

f. No allegation of unregistered operation as a dealer shall be heard
or determined unless notice of such allegation has been mailed to such
person within two years after the date of the alleged unregistered
operation.

17. Improper display of signs. a. The holder of a dealer registration
shall remove or cause to be removed any sign which contains the
registration number of the dealer which is visible to the public and
which is required to be displayed by this article or regulations
promulgated thereunder if the registration is revoked or suspended or
the dealer is out of business. If the registration is only suspended,
the holder may cover up the sign instead of removing it.

b. No person shall permit the display of any sign required to be
displayed by this article or regulations promulgated thereunder
indicating to the public that an official dealer is operating unless a
dealer registration has been issued to that person and is currently
valid.

18. Rights of dealers. The rights of all new motor vehicle dealers
under this article may be exercised from any location or locations which
are from time to time approved by their franchisors and the commissioner
as prescribed in this article. The rights of all qualified dealers under
this article may be exercised from any location or locations from which
they operate from time to time; provided, however, that no qualified
dealer shall operate from more than two locations within the four
counties of Kings, Queens, Nassau, and Suffolk; and provided further
that no qualified dealer shall operate from more than one location in
any one county. The total number of locations from which a qualified
dealer may operate shall not exceed that number of locations operated by
such qualified dealer on December thirty-first, nineteen hundred
ninety-eight. It shall be unlawful for any person to interfere with the
rights of, or discriminate against, any new motor vehicle dealer or any
qualified dealer under this article. The commissioner shall penalize
those persons who violate the provisions of this section as enacted by
chapter four hundred fifty-one of the laws of nineteen hundred
ninety-nine and the chapter of the laws of two thousand which amended
this subdivision as provided by this section. Nothing contained in this
article shall be construed to prohibit a new motor vehicle dealer, a
qualified dealer, or a dealer, respectively, from utilizing the internet
to engage in such activities as each are respectively permitted under
this article and under other applicable laws, or affect where a new
motor vehicle dealer or a qualified dealer may deliver a new motor
vehicle.

19. Disclosures by qualified dealers; penalties. a. Every qualified
dealer who advertises in newspapers, magazines, or by direct mail the
availability of new motor vehicles for sale shall clearly disclose that
such qualified dealer is not a franchised new motor vehicle dealer.

b. Every qualified dealer shall prominently and conspicuously post a
sign, in such a manner that it is likely to be noticeable to anyone
entering the premises, which sign shall clearly state: "(name of
qualified dealer) is not a franchised dealership and does not represent
a manufacturer. We are not authorized to perform recall or original
factory warranty work."

c. Every contract for the sale of a new motor vehicle entered into by
a qualified dealer and the purchaser shall contain the following
statement: "(name of qualified dealer) is not a franchised dealership
and does not represent a manufacturer. We are not authorized to perform
recall or original factory warranty work."

d. A qualified dealer who fails to comply with the requirements of
this subdivision, shall be subject to the penalties provided by this
section. Further, a person who has purchased a new motor vehicle from a
qualified dealer pursuant to a contract which does not contain the
disclosure required under paragraph c of this subdivision, shall be
entitled to rescind the sale and obtain full restitution of any amounts
paid, plus reasonable court costs and attorneys fees, within four months
of the date of purchase.

20. Restrictions on transferability and operation of certain qualified
dealerships. a. A qualified dealer may sell, devise, assign, convey or
otherwise transfer any or all of its assets, including without
limitation all rights to conduct the activities of a qualified dealer
hereunder and further, the owner of an equity interest in a qualified
dealership may sell, devise, assign, convey or otherwise transfer any or
all of its equity interest in such qualified dealership, subject to the
conditions set forth in this subdivision. To the extent that such
qualified dealer conducts such activities at more than one location as
permitted under this article, then such qualified dealer may transfer
such rights on a location by location basis; provided, however, that
such a transferee shall acquire no greater rights to relocate than those
of his or her transferor, and provided further below, that such
transferee shall remain subject to the provisions of this subdivision
exactly as they applied to his or her transferor.

b. A transferee who acquires the assets and/or an equity interest in a
qualified dealer as defined in subparagraph (ii), (iii) or (iv) of
paragraph g of subdivision one of this section and is the parent,
spouse, child or sibling of an individual who was an equity holder of
such qualified dealer may conduct activities as specified pursuant to
this section without restriction.

c. A transferee who acquires substantially all of the assets and/or a
controlling equity interest in a qualified dealer as defined in
subparagraph (ii), (iii) or (iv) of paragraph g of subdivision one of
this section who is not the parent, spouse, child or sibling of an
individual who was an equity holder of such qualified dealer may conduct
activities as specified pursuant to this section; provided, however,
that such transferee, in any calendar year, shall not be permitted to
sell more than one hundred ten percent of the number of new motor
vehicles sold by the transferor or qualified dealer during the twelve
month period ending on the last day of the calendar month preceding the
date of transfer of such rights.

d. A transferee who acquires ten per cent or more of an equity
interest after August 31, 1999 in a qualified dealer as defined in
subparagraph (ii), (iii), or (iv) of paragragh g of subdivision one of
this section and is a publicly traded corporation may conduct activities
as specified pursuant to this section; provided, however, that such
transferee, in any calendar year, shall not be permitted to sell more
than one hundred ten percent of the number of new motor vehicles sold by
the transferor or qualified dealer during the twelve month period ending
on the last day of the calendar month preceding the date of transfer of
such rights.

e. Each transferee who acquires substantially all of the assets and/or
a controlling equity interest in a qualified dealer from a transferee as
defined in paragraph b, c or d of this subdivision shall not be
permitted to sell a number of new motor vehicles in any calendar year in
excess of the number of new motor vehicles sold by such transferor
qualified dealer during the twelve month period ending on the last day
of the calendar month preceding the date of transfer of such rights.

f. The rights of a qualified dealer under subparagraph (ii), (iii) or
(iv) of paragraph g of subdivision one of this section are also deemed
transferred for purposes hereof in the event that, after August
thirty-first, nineteen hundred ninety-nine, (i) the controlling equity
interest of such qualified dealer is transferred (in any one or series
of transactions) to any person or persons, other than the parent,
spouse, child or sibling of an individual who is an equity holder of
such qualified dealer, or (ii) there occurs any merger, combination or
consolidation of, with or into the business entity which constitutes
such qualified dealer.

g. Nothing contained herein shall (i) prohibit a qualified dealer or
the parent, spouse, child or sibling who is the equity holder of such
qualified dealer from forming a corporation or limited liability company
to operate and wholly own the qualified dealer; (ii) restrict the
ability of a qualified dealer to transfer a controlling equity interest
to a corporation or a limited liability company operated and wholly
owned by an individual who is an equity holder of such qualified dealer;
or (iii) restrict the ability of a qualified dealer to transfer an
equity interest in the stock and/or assets of a qualified dealer to a
full-time employee of such qualified dealer.