S T A T E   O F   N E W   Y O R K
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                                  4042

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 15, 2011
                               ___________

Introduced by Sens. SEWARD, DeFRANCISCO -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Consumer
  Protection

AN ACT to amend the general business law, in relation to  requiring  the
  deposit,  into  an escrow account, of certain advance payments for the
  restoration of an historical vehicle

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new article
37-B to read as follows:
                              ARTICLE 37-B
                   RESTORATION OF HISTORICAL VEHICLES
SECTION 806. DEFINITIONS.
        807. RESTORATION  OF  HISTORICAL  VEHICLES;  ESCROW REQUIRED FOR
               ADVANCE PAYMENTS.
        808. REMEDIES.
  S 806. DEFINITIONS. AS USED IN THIS ARTICLE:
  1. "BOAT" MEANS A RESIDENTIAL VESSEL OR PLEASURE VESSEL AS DEFINED  IN
SUBDIVISION SIX OF SECTION TWO OF THE NAVIGATION LAW.
  2. "CONSUMER" MEANS A NATURAL PERSON WHO CONTRACTS FOR THE RESTORATION
OF  AN HISTORICAL VEHICLE TO ITS ORIGINAL CONDITION AND MANNER OF OPERA-
TION OR TO A CONDITION THAT REASONABLY  APPEARS  TO  BE  SUCH  VEHICLE'S
ORIGINAL CONDITION AND MANNER OF OPERATION.
  3. "HISTORICAL VEHICLE" MEANS A BOAT, MOTOR VEHICLE OR MOTORCYCLE THAT
WAS MANUFACTURED MORE THAN TWENTY-FIVE YEARS PRIOR TO THE CURRENT CALEN-
DAR  YEAR,  AND ANY OTHER MODEL, YEAR AND TYPE OF BOAT, MOTOR VEHICLE OR
MOTORCYCLE WHICH HAS UNIQUE CHARACTERISTICS AND WHICH IS  DETERMINED  BY
THE COMMISSIONER OF MOTOR VEHICLES TO BE OF HISTORICAL, CLASSIC OR EXHI-
BITION VALUE.
  4.  "MOTORCYCLE"  SHALL  HAVE  THE SAME MEANING AS IS ASCRIBED TO SUCH
TERM BY SECTION ONE HUNDRED TWENTY-THREE OF THE VEHICLE AND TRAFFIC LAW.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10010-01-1
              

S. 4042                             2

  5. "MOTOR VEHICLE" SHALL HAVE THE SAME MEANING AS IS ASCRIBED TO  SUCH
TERM BY SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW.
  S 807. RESTORATION OF HISTORICAL VEHICLES; ESCROW REQUIRED FOR ADVANCE
PAYMENTS.  1.  ALL  MONIES  PAID  BY  A CONSUMER TO ANY PERSON OR ENTITY
ENGAGED IN THE BUSINESS OF THE RESTORATION OF HISTORICAL MOTOR  VEHICLES
SHALL BE TRUST FUNDS IN POSSESSION OF SUCH PERSON OR ENTITY AND SHALL BE
DEPOSITED BY IT, WITHIN FIVE DAYS OF RECEIPT THEREOF, IN AN ACCOUNT IN A
BANKING ORGANIZATION IN THIS STATE WHEN:
  (A)  SUCH  MONIES  ARE  RECEIVED BY THE HISTORICAL VEHICLE RESTORATION
BUSINESS MORE THAN FIVE DAYS BEFORE THE RESTORATION WORK ON THE  CONSUM-
ER'S HISTORICAL VEHICLE IS TO BE COMPLETED AND SUCH VEHICLE IS READY FOR
DELIVERY TO THE CONSUMER; AND
  (B)(I)  THE TOTAL AMOUNT TO BE PAID FOR THE RESTORATION OF THE HISTOR-
ICAL VEHICLE OF THE CONSUMER IS EQUAL TO OR GREATER  THAN  TEN  THOUSAND
DOLLARS; OR
  (II)  THE  TOTAL GROSS ANNUAL RECEIPTS OF THE PERSON OR ENTITY ENGAGED
IN THE RESTORATION OF HISTORICAL VEHICLES EQUALS OR EXCEEDS ONE  HUNDRED
THOUSAND DOLLARS.
  2.  THE HISTORICAL VEHICLE RESTORATION BUSINESS SHALL, UPON DEPOSITING
SUCH MONIES IN A BANKING ORGANIZATION, NOTIFY THE CONSUMER IN WRITING OF
THE NAME AND ADDRESS OF THE BANKING ORGANIZATION AND THE AMOUNT DEPOSIT-
ED.
  3. ALL MONIES DEPOSITED PURSUANT  TO  THIS  SECTION  SHALL  REMAIN  ON
DEPOSIT UNTIL FULLY APPLIED TO THE CONTRACT PRICE FOR THE RESTORATION OF
THE  CONSUMER'S  HISTORICAL VEHICLE UPON COMPLETION OF SUCH RESTORATION,
UNLESS SOONER REPAID TO THE CONSUMER.
  S 808. REMEDIES. 1. A CONSUMER INJURED BY A VIOLATION OF THIS  ARTICLE
MAY  BRING AN ACTION TO RECOVER DAMAGES.  JUDGMENT MAY BE ENTERED FOR UP
TO THREE TIMES THE ACTUAL DAMAGES SUFFERED BY A CONSUMER, OR TWO HUNDRED
DOLLARS, WHICHEVER IS GREATER.  THE  COURT  MAY  ALSO  AWARD  REASONABLE
ATTORNEY'S FEES TO A PREVAILING CONSUMER.
  2.  UPON  ANY VIOLATION OF THIS ARTICLE, AN APPLICATION MAY BE MADE BY
THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF THE STATE TO  A  COURT
OR  JUSTICE  HAVING JURISDICTION TO ISSUE AN INJUNCTION, AND UPON NOTICE
TO THE RESPONDENT OF NOT LESS THAN FIVE DAYS, TO ENJOIN AND RESTRAIN THE
CONTINUANCE OF THE VIOLATION. IF IT SHALL APPEAR TO THE SATISFACTION  OF
THE  COURT  OR JUSTICE THAT THE RESPONDENT HAS VIOLATED ANY PROVISION OF
THIS ARTICLE, AN INJUNCTION MAY BE  ISSUED  BY  THE  COURT  OR  JUSTICE,
ENJOINING AND RESTRAINING ANY FURTHER VIOLATION, WITHOUT REQUIRING PROOF
THAT  ANY PERSON HAS, IN FACT, BEEN INJURED OR DAMAGED THEREBY. WHENEVER
THE COURT SHALL DETERMINE THAT A VIOLATION OF THIS ARTICLE HAS OCCURRED,
THE COURT MAY IMPOSE A CIVIL PENALTY  OF  NOT  MORE  THAN  TWO  THOUSAND
DOLLARS FOR EACH VIOLATION.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.