NY State Senate Bill 2017-S7307

Senate Bill S7307

Signed By Governor

2017-2018 Legislative Session

Relates to licensure of automobile brokers; manufacturers and distributors

download bill text pdf

Archive: Last Bill Status - Signed by Governor

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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 18, 2018	signed chap.28
Apr 06, 2018	delivered to governor
Mar 22, 2018	returned to senate passed assembly ordered to third reading rules cal.16 substituted for a9002
Jan 30, 2018	referred to consumer affairs and protection delivered to assembly passed senate
Jan 08, 2018	ordered to third reading cal.35
Jan 05, 2018	referred to rules

Votes

- Jan 30, 2018 - Floor Vote
  S7307
  
  58
  
  Aye
  
  1
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jan 30, 2018
      
      aye (58)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kavanagh
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Marchione
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Seward
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      nay (1)
      
      Felder
      
      excused (2)
      
      Montgomery
      
      Serrano
  Jan 8, 2018 - Rules Committee Vote
  S7307
  
  23
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jan 8, 2018
      
      aye (23)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hannon
      
      Kennedy
      
      LaValle
      
      Lanza
      
      Larkin
      
      Marcellino
      
      Montgomery
      
      Parker
      
      Ranzenhofer
      
      Rivera
      
      Robach
      
      Savino
      
      Seward
      
      Stewart-Cousins
      
      Valesky
      
      aye wr (2)
      
      Krueger
      
      Little

2017-S7307 (ACTIVE) - Details

See Assembly Version of this Bill:: A9002
Law Section:: General Business Law
Laws Affected:: Amd §§736 & 738, add §741-b, Gen Bus L; amd §415, V & T L; add §9-a, Chap of 2017 (as proposed in S. 5380-B and A. 6884-B)

2017-S7307 (ACTIVE) - Summary

Requires automobile brokers to be licensed; clarifies the role of manufacturers and distributors.

2017-S7307 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7307

SPONSOR: GOLDEN
 
TITLE OF BILL:  An act to amend the general business law and the vehi-
cle and traffic law, in relation to requiring automobile brokers to be
licensed; and to amend a chapter of the laws of 2017, amending the
general business law and the vehicle and traffic law relating to requir-
ing automobile brokers to be licensed, as proposed in legislative bills
numbers S. 5380-B and A.  6884-B, in relation to manufacturers and
distributors

 
PURPOSE:

To decrease the incidence of unlawful deceptive practices in the automo-
bile broker business by requiring licensure of automobile brokers.

 
SUMMARY OF PROVISIONS:

Section one of this bill amends subdivision 1 of section 736 of the
General Business Law to include leasing in the definition of "automobile
broker business". Section one also defines what is not considered an

automobile broker business.

Section two of this bill adds a new 736-a section to General Business
Law article 43. New section 736-a requires that any person or entity
engaged in the automobile broker business shall be registered. In addi-
tion, this section specifies that a certificate of registration for an
automobile broker does not permit the registrant to display for sale any
new or used motor vehicles without registration as a dealer.

Section three of this bill amends paragraphs e,f, and g of subdivision
one and subdivision here of section 738 of the General Business Law.
Paragraph e is amended to included leased vehicles in the itemized
disclosure while paragraph f and g are technical amendments.

Section four of this bill amends section 740-a of the General Business
Law to provide that automobile broker businesses shall obtain and
continue in effect a surety bond in an amount of one hundred twenty five
thousand dollars.

Section five of this bill amends section 741-a of the General Business
Law to specify what automobile broker businesses must disclose to the
consumer in any advertisements for their business.

Section six of this bill adds a new subdivision 1 of section 415 of the
Vehicle and Traffic Law to define an automobile broker business.

Section seven of this bill adds a new subdivision 3-a to the Vehicle and
Traffic Law that requires automobile brokers to register.

Section eight of this bill amends subdivision 5 of Section 415 of the
Vehicle and Traffic Law by adding a new paragraph b-2 that specifies
what needs to be covered by surety bond issued to the automobile broker
business.

Section nine of this bill amends paragraph d of subdivision 9 of section
415 of the Vehicle and Traffic Law to add article 35-B of the General
Business Law to the enforcement by the Commissioner for violations of
provisions of this chapter.
Section ten of this bill provides that this act shall take effect on the
ninetieth day after it shall have become a law; provided, however, that
the secretary of state shall take actions necessary to provide for the
issuance of licenses pursuant to section 786-d of the general business
law, as added by section two of this act, prior to such date

 
EXISTING LAW:

None.

 
JUSTIFICATION:

Currently, Article 35-B of the General Business Law provides some regu-
lation of the automobile broker business. Unfortunately, the current law
does not include licensure requirements. Additionally, the current law
does not include people and entities that facilitate leasing agreements
by obtaining the vehicle, as well as the leasing paperwork, from a
licensed automobile dealer, managing the consumer's execution of the
lease agreement and paperwork, delivering the vehicle to the consumer
and delivering the executed lease agreement and paperwork to the automo-
bile dealer who provided the vehicle. This bill includes provisions
addressing both of these issues. By addressing these issues, this bill
reduces any consumer confusion regarding whether the automobile broker
is an authorized representative of an automobile manufacturer and
enhances the protection afforded to consumers. This legislation's abili-
ty to require the licensure of automobile brokers will better regulate
the automobile broker industry. Furthermore allowing the Attorney Gener-
al to investigate non-licensed automobile broker businesses will deter
unscrupulous brokers from engaging in unlawful practices and taking
advantage of New Yorkers.

This bill represents a chapter amendment agreement to Chapter 477 of the
laws of 2017 that inserts technical corrections to better effectuate the
original intent of that legislation.

 
LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS:

None.

 
LOCAL FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the same date and in the same manner as a
chapter of the laws of 2017, amending the general business law and the
vehicle and traffic law relating to requiring automobile brokers to be
licensed, as proposed in legislative bills numbers S.5380-B and
A.6884-B, takes effect; provided that the amendments to subdivision 6 of
section 415 of the vehicle and traffic law made by section five of this
act shall be subject to the expiration and reversion of such subdivision
pursuant to section 13 of part U1 of chapter 62 of the laws of 2003, as
amended, when upon such date the provisions of section six of this act
shall take effect.

2017-S7307 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7307
 
                             I N  S E N A T E
 
                              January 5, 2018
                                ___________
 
 Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the general business law and  the  vehicle  and  traffic
   law,  in  relation to requiring automobile brokers to be licensed; and
   to amend a chapter of the laws of 2017, amending the general  business
   law  and  the vehicle and traffic law relating to requiring automobile
   brokers to be licensed, as proposed in legislative  bills  numbers  S.
   5380-B and A.  6884-B, in relation to manufacturers and distributors
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 736 of the general  business  law,
 as  amended by a chapter of the laws of 2017, amending the general busi-
 ness law and the vehicle and traffic law relating to  requiring  automo-
 bile brokers to be licensed, as proposed in legislative bills numbers S.
 5380-B and A. 6884-B, is amended to read as follows:
   1.  "Automobile  broker  business"  means  any  person who, for a fee,
 commission or other valuable consideration, regardless of  whether  such
 fee, commission, or consideration is paid directly by a consumer, offers
 to  provide,  provides,  or  represents  that  he  or she will provide a
 service of purchasing, arranging, assisting, facilitating  or  effecting
 the purchase or lease of an automobile as agent, broker, or intermediary
 for a consumer. "Automobile broker business" does not include any person
 registered  as  a  dealer pursuant to article sixteen of the vehicle and
 traffic law NOR ANY BONA FIDE EMPLOYEE  OF  A  REGISTERED  DEALER  WHILE
 ACTING  FOR  SUCH  DEALER,  or  any person who sells, offers for sale or
 lease or acts as agent, broker or intermediary in effecting the purchase
 or lease of three or fewer automobiles in any  calendar  year[,  or  any
 motor  vehicle franchisor, manufacturer, or distributor registered under
 article sixteen of the vehicle and traffic law who sells or  leases  new
 motor  vehicles  to  employees,  immediate  family members of employees,
 retirees, or immediate family members of retirees as authorized by para-
 graph (y) of subdivision two of section four hundred sixty-three of  the
 vehicle and traffic law], ANY NATIONAL SERVICE WHICH AGGREGATES INFORMA-
 TION  FOR CONSUMERS, BUT DOES NOT OTHERWISE HAVE CONTACT WITH CONSUMERS,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD10395-08-8

 S. 7307                             2
 
 OR ANY MOTOR VEHICLE FRANCHISOR, MANUFACTURER, OR DISTRIBUTOR REGISTERED
 UNDER ARTICLE SIXTEEN OF THE VEHICLE AND TRAFFIC LAW.
   §  2. Paragraph e of subdivision 1 of section 738 of the general busi-
 ness law, as amended by a chapter of the  laws  of  2017,  amending  the
 general business law and the vehicle and traffic law relating to requir-
 ing  automobile brokers to be licensed, as proposed in legislative bills
 numbers S. 5380-B and A.  6884-B, is amended to read as follows:
   (e) A description of any other services  and  an  itemization  of  the
 charges for each. Such description shall include disclosure of the auto-
 mobile  dealer  from  which the automobile was purchased [or leased], as
 well as all fees, commissions or other valuable considerations  paid  by
 an  automobile  dealer  to  the  automobile broker business for SELLING,
 arranging, assisting or effecting the sale [or lease] of  an  automobile
 as  agent,  broker, or intermediary between the consumer and the automo-
 bile dealer.
   § 3. The opening paragraph of subdivision 1  of  section  738  of  the
 general  business  law,  as added by chapter 616 of the laws of 1988, is
 amended and a new subdivision 4 is added to read as follows:
   Every contract between a consumer and an  automobile  broker  business
 FOR  THE  PURCHASE OF AN AUTOMOBILE shall be in writing, shall be dated,
 shall contain the street address of the automobile broker  business  and
 the  consumer  and shall be signed by the consumer and by the automobile
 broker business. Every contract shall comply with the  requirements  set
 forth in this section and contain the following:
   4.  AN  AUTOMOBILE  BROKER  BUSINESS  IN ANY TRANSACTION INVOLVING THE
 LEASE OF A VEHICLE SHALL PROVIDE THE RETAIL LESSEE WITH A  RETAIL  LEASE
 AGREEMENT  AS  PROVIDED FOR IN SECTION THREE HUNDRED THIRTY-SEVEN OF THE
 PERSONAL PROPERTY LAW. THE AUTOMOBILE BROKER  SHALL  PROVIDE  A  WRITTEN
 DISCLOSURE  OF  THE AMOUNT OF ANY FEE, COMMISSION OR OTHER CONSIDERATION
 PAID OR EXPECTED TO BE PAID BY THE LESSOR TO THE AUTOMOBILE BROKER BUSI-
 NESS IN CONNECTION WITH A TRANSACTION INVOLVING THE LEASE OF A  VEHICLE.
 SUCH  DISCLOSURE  SHALL  BE  SIGNED BY THE RETAIL LESSEE. THE AUTOMOBILE
 BROKER BUSINESS SHALL PROVIDE THE RETAIL LESSEE WITH A  SIGNED  COPY  OF
 SUCH  DISCLOSURE  TOGETHER  WITH  THE  RETAIL LEASE AGREEMENT REFERENCED
 HEREIN.
   § 4. The general business law is amended by adding a new section 741-b
 to read as follows:
   § 741-B. DISCLOSURE. AN AUTOMOBILE BROKER  BUSINESS  SHALL  PROVIDE  A
 DISCLOSURE AT THE TIME SUCH AUTOMOBILE BROKER BUSINESS TAKES AN ORDER TO
 SEARCH  FOR A LEASED VEHICLE MEETING THE PROSPECTIVE LESSEE'S SPECIFICA-
 TIONS.  SUCH DISCLOSURE SHALL PROVIDE THE AMOUNT OF  ANY  FEES,  COMMIS-
 SIONS  OR  OTHER  VALUABLE  CONSIDERATION THE AUTOMOBILE BROKER BUSINESS
 EXPECTS TO RECEIVE, IF KNOWN, FROM A DEALER, LESSOR OR ANY OTHER  PERSON
 OR  ENTITY FOR ANY ASSISTANCE THE AUTOMOBILE BROKER BUSINESS PROVIDES IN
 EFFECTING THE LEASE TRANSACTION. IF THE AMOUNT OF ANY SUCH FEES, COMMIS-
 SIONS OR OTHER VALUABLE CONSIDERATION  THE  AUTOMOBILE  BROKER  BUSINESS
 EXPECTS  TO  RECEIVE  IS UNKNOWN AT THE TIME OF THE REQUIRED DISCLOSURE,
 THE AUTOMOBILE BROKER BUSINESS SHALL DISCLOSE:  (A)  WHETHER  IT  HAS  A
 CONTRACT  WITH  ANY DEALER, LESSOR OR ANY OTHER PERSON OR ENTITY FOR THE
 PROVISION OF ASSISTANCE IN EFFECTING A LEASE TRANSACTION; AND (B) WHETH-
 ER THE AUTOMOBILE BROKER BUSINESS MAY  BE  COMPENSATED  BY  THE  DEALER,
 LESSOR  OR  ANY  OTHER  PERSON OR ENTITY FOR ANY ASSISTANCE IN EFFECTING
 SUCH LEASE TRANSACTION.
   § 5.  Subdivision 6 of section 415 of the vehicle and traffic law,  as
 amended  by  section 1-b of part A of chapter 63 of the laws of 2005, is
 amended to read as follows:

 S. 7307                             3
 
   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
 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  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.
   §  6.  Subdivision 6 of section 415 of the vehicle and traffic law, as
 amended by chapter 7 of the laws of 2000, is amended to read as follows:
   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 transpor-
 ter or for renewal thereof shall be one hundred fifty dollars. The annu-
 al fee for any other registration under  this  section  shall  be  fifty
 dollars.  However,  the  commissioner  may,  in  his 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 deal-
 er 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.
   § 7. A chapter of the laws of 2017, amending the general business  law
 and the vehicle and traffic law relating to requiring automobile brokers
 to  be  licensed, as proposed in legislative bills numbers S. 5380-B and
 A. 6884-B, is amended by adding a new section 9-a to read as follows:
   § 9-A. NOTHING CONTAINED WITHIN THIS ACT SHALL BE DEEMED  TO  GRANT  A
 MANUFACTURER  OR  DISTRIBUTOR  THE  ABILITY TO DO ANYTHING THAT WOULD BE
 PROHIBITED UNDER ARTICLE 16 OR ARTICLE 17-A OF THE VEHICLE  AND  TRAFFIC
 LAW.
   §  8.  This  act  shall  take  effect on the same date and in the same
 manner as a chapter of the laws of 2017, amending the  general  business
 law  and  the  vehicle  and traffic law relating to requiring automobile
 brokers to be licensed, as proposed  in  legislative  bills  numbers  S.
 5380-B  and  A.  6884-B,  takes  effect; provided that the amendments to
 subdivision 6 of section 415 of the vehicle  and  traffic  law  made  by
 section  five  of this act shall be subject to the expiration and rever-
 sion of such subdivision pursuant to section 13 of part U1 of chapter 62
 of the laws of 2003, as amended, when upon such date the  provisions  of
 section six of this act shall take effect.

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