S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4618
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2017
                                ___________
 
 Introduced  by M. of A. BLAKE -- read once and referred to the Committee
   on Banks
 
 AN ACT to amend the financial services law, in relation to the jurisdic-
   tion of the department of financial services  over  the  financing  of
   motor  vehicles; and to amend the vehicle and traffic law, in relation
   to the licensing of motor vehicle dealer finance managers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subparagraph  (B)  of  paragraph  2  of subsection (a) of
 section 104 of the financial services law is amended to read as follows:
   (B) "Financial product or service" shall also not include the  follow-
 ing,  when  offered  or  provided  by  a  provider  of consumer goods or
 services:  (i) the extension of credit directly to a consumer exclusive-
 ly for the purpose of enabling that consumer to purchase  such  consumer
 good  or  service  directly from the seller, (ii) the collection of debt
 arising from such credit, or (iii) the sale or conveyance of  such  debt
 that is delinquent or otherwise in default.  PROVIDED, HOWEVER, THAT THE
 PROVISIONS  OF  THIS  SUBPARAGRAPH  SHALL NOT APPLY TO THE SALE OF MOTOR
 VEHICLES. EVERY SALE OF A MOTOR VEHICLE THAT INVOLVES FINANCING, WHETHER
 ORIGINATED AT A MOTOR VEHICLE DEALER OR AT A LENDING INSTITUTION,  SHALL
 BE DEEMED TO BE A "FINANCIAL PRODUCT OR SERVICE" WITHIN THE JURISDICTION
 OF THE DEPARTMENT.
   §  2.  The  opening paragraph of section 205 of the financial services
 law is designated subsection (a) and a new subsection (b)  is  added  to
 read as follows:
   (B)  THE  SUPERINTENDENT  MAY,  IN  HIS OR HER DISCRETION, ESTABLISH A
 MOTOR VEHICLE FINANCING BUREAU, AND TO PROMULGATE ANY AND ALL RULES  AND
 REGULATIONS  NECESSARY  TO REGULATE MOTOR VEHICLE FINANCING TRANSACTIONS
 AND MOTOR VEHICLE DEALER FINANCING DEPARTMENTS.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00440-01-7

              

 A. 4618                             2
 
   § 3. Paragraphs 6 and 7 of subsection (c) of section 301 of the finan-
 cial services law are amended and four new paragraphs 8, 9,  10  and  11
 are added to read as follows:
   (6)  providing  technical assistance to local governments and not-for-
 profits in the development of consumer protection measures with  respect
 to financial products and services; [and]
   (7)   continuing   and  expanding  the  detection,  investigation  and
 prevention of insurance fraud[.];
   (8) PROMULGATING  RULES  AND  REGULATIONS  FOR  MOTOR  VEHICLE  DEALER
 FINANCE DEPARTMENTS AND FINANCE MANAGERS;
   (9) ESTABLISHING EDUCATIONAL MATERIALS AND/OR MANDATED INSTRUCTION FOR
 MOTOR VEHICLE DEALER FINANCE MANAGERS APPLYING FOR LICENSING PURSUANT TO
 PARAGRAPH  D OF SUBDIVISION THREE OF SECTION FOUR HUNDRED FIFTEEN OF THE
 VEHICLE AND TRAFFIC  LAW.  NO  SUCH  MANDATE  INSTRUCTION  SHALL  EXCEED
 SIXTEEN HOURS DURING ANY BIENNIAL LICENSING PERIOD;
   (10)  IMPOSING  A  LICENSING  AND  COURSE FEE FOR MOTOR VEHICLE DEALER
 FINANCE MANAGER APPLICANTS PURSUANT TO PARAGRAPH D OF SUBDIVISION  THREE
 OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW; PROVIDED
 THAT  SUCH  FEE  SHALL  NOT EXCEED TWO HUNDRED DOLLARS FOR EACH BIENNIAL
 LICENSING PERIOD; AND
   (11) ESTABLISHING AND IMPOSING PENALTIES, AND LICENSE SUSPENSIONS  AND
 REVOCATIONS  FOR  VIOLATIONS  BY MOTOR VEHICLE DEALERS AND MOTOR VEHICLE
 DEALER FINANCE MANAGERS.
   § 4. Subdivision 3 of section 415 of the vehicle and  traffic  law  is
 amended by adding a new paragraph d to read as follows:
   D.  (I)  EVERY DEALER WHICH SELLS MOTOR VEHICLES THAT ARE FINANCED, OR
 WHICH FACILITATES IN ANY MANNER THE FINANCING OF  THE  PURCHASE  OF  ANY
 MOTOR  VEHICLE,  SHALL  ACT  AS  OR  EMPLOY  AN INDIVIDUAL TO ACT AS THE
 FINANCE MANAGER FOR  SUCH  DEALER,  AND  EVERY  SUCH  MANAGER  SHALL  BE
 LICENSED BY THE DEPARTMENT OF FINANCIAL SERVICES.
   (II)  EVERY  LICENSED FINANCE MANAGER SHALL HAVE COMPLETED SUCH COURSE
 OF INSTRUCTION AS SHALL BE ESTABLISHED BY THE  DEPARTMENT  OF  FINANCIAL
 SERVICES.
   §  5.  This  act  shall  take effect on the two hundred seventieth day
 after it shall have become a law.