NY State Senate Bill 2019-S2737

Senate Bill S2737

2019-2020 Legislative Session

Prohibits certain entities from engaging in the business of securing motor vehicle registrations or giving instructions as to procuring motor vehicle registrations

download bill text pdf

Archive: Last Bill Status - In Senate Committee Transportation Committee

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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to transportation
Jan 29, 2019	referred to transportation

2019-S2737 (ACTIVE) - Details

See Assembly Version of this Bill:: A7474
Current Committee:: Senate Transportation
Law Section:: Vehicle and Traffic Law
Laws Affected:: Amd §395, V & T L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S178, A388
2023-2024: A4353

2019-S2737 (ACTIVE) - Summary

Prohibits certain entities from engaging in the business of assisting for hire in securing motor vehicle registrations or, for compensation, giving instructions as to procuring motor vehicle registrations.

2019-S2737 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2737

SPONSOR: KAPLAN
 
TITLE OF BILL:

An act to amend the vehicle and traffic law, in relation to prohibiting
certain entities from engaging in the business of securing motor vehicle
registrations or giving instructions as to procuring motor vehicle
registrations

 
PURPOSE:

This legislation would outlaw the licensing of certain predatory third-
party vendors selling access to vehicle registration services already
performed by the Department of Motor Vehicles.

 
SUMMARY OF PROVISIONS:

Section one amends the vehicle and traffic law in order to prevent busi-
nesses that are not engaged in vehicle sales from charging residents for
directions on how to register your vehicle - a service the Department of

Motor Vehicles performs.

Section two is the effective date.

 
JUSTIFICATION:

It's often hard for consumers to determine the legitimacy of online
services at a glance. Websites like www.dmv-services.com or
www.onlineregistration.us appear to be portals to official Department of
Motor Vehicles webpages and, despite the mandatory but hard to find
disclaimer, many people are fooled into paying an unnecessary "finder's"
fee. One constituent expressed outrage that New York raised the price of
registration renewals before realizing he had nearly fallen for the
scam.

For example, at "On-Line Registration" the webpage states consumers have
landed on the "New York Motor Vehicles Service Bureau" webpage.  That
site charges a $45 to $75 "Online Service Bureau" fee for registration
renewals (based on "processing time"). Using an official looking monik-
er, this website and others like it simultaneously rips off New York
State residents and tarnishes the image of the Department of Motor Vehi-
cles. In the case of "On-Line Registration", the required disclaimer is
buried under the site's privacy policy, making it extremely unlikely
that the average consumer would find it.  For reference, that disclaimer
is copied below:

"NOTICE PURSUANT TO 15 NYCRR 77.7 THIS TRANSACTION OR SERVICE IS ALSO
AVAILABLE, AT NO CHARGE, DIRECTLY FROM THE OFFICIAL DEPARTMENT OF MOTOR
VEHICLES WEBSITE AT WWW.NYSDMV.COM."

It's clear these websites provide no essential service to New York State
residents. Using shady tactics and clever search engine.  optimization
they target consumers who are often unfamiliar with internet etiquette
or in a hurry to finalize their paperwork. There is no reason for
crooked businesses like these, which exist only to hustle state resi-
dents attempting to comply with the law, to be licensed by the Depart-
ment of Motor Vehicles.

 
LEGISLATIVE HISTORY:

A. 9017 of 2018; Passed Assembly

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2019-S2737 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2737
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2019
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Transportation
 
 AN ACT to amend the vehicle and traffic law, in relation to  prohibiting
   certain entities from engaging in the business of securing motor vehi-
   cle registrations or giving instructions as to procuring motor vehicle
   registrations
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 395 of the vehicle and traffic law, as  amended  by
 chapter 124 of the laws of 1974, is amended to read as follows:
   § 395. Certain  private  service  bureaus  to be licensed.   Except as
 otherwise provided herein, no person, firm, association  or  corporation
 shall, engage in the business of assisting for hire in securing licenses
 to  drive  motor  vehicles or registrations or titles of motor vehicles,
 nor shall any person, firm, association or corporation for  compensation
 give  instructions  as  to procuring licenses to drive motor vehicles or
 registrations or titles of motor vehicles, without being the holder of a
 license for such purpose issued by the commissioner of  motor  vehicles.
 An  applicant  for  a  license  shall furnish the commissioner with such
 information and such references as to moral character as he may  reason-
 ably  require.  Every application shall be accompanied by a fee of twen-
 ty-five dollars, which shall be regarded as an application fee and shall
 in no event be refunded. If an application be approved  by  the  commis-
 sioner,  the  applicant upon the payment of an additional fee of twenty-
 five dollars shall be granted a license which shall expire on the  thir-
 tieth  day  of June following the date of its issuance. The commissioner
 shall issue a license certificate to  each  licensee  which  certificate
 shall  be conspicuously displayed in the place of business of the licen-
 see, or, if the licensee has no place  of  business,  such  certificates
 shall  be  exhibited  at the request of any person. In case of the loss,
 mutilation or destruction of a certificate, the commissioner shall issue
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02838-02-9

 S. 2737                             2
 
 a duplicate upon proof of the facts and the payment  of  a  fee  of  one
 dollar.  The  refusal to issue a license may be reviewed by a proceeding
 under article seventy-eight of the civil practice law  and  rules.  Such
 license  shall  be renewed annually upon the payment of a fee of twenty-
 five dollars, such renewal to take effect on the first day  of  July  in
 each year.  Upon renewal, the commissioner may, in his discretion, issue
 a  license  which  shall be valid for a two year period. The fee for any
 such two year renewal shall be fifty dollars.
   No license shall be issued under this section nor shall any renewal of
 a license issued under this section be made for conducting business in a
 city having a population of fifty thousand or  more,  according  to  the
 latest  federal  census  if  the  place  of business of the licensee, or
 branch thereof, is within fifteen hundred feet of a building,  owned  or
 leased  by  the state, a county or a city, in which motor vehicle regis-
 trations or licenses to drive motor vehicles are issued to  the  public.
 The  said  distance  of fifteen hundred feet shall be measured along the
 public streets by the nearest route from  such  place  of  business,  or
 branch thereof, to such building. The provisions of this paragraph shall
 not  apply  to a holder of a certificate of registration issued pursuant
 to section four hundred fifteen of this chapter.
   NO LICENSE SHALL BE ISSUED UNDER THIS SECTION NOR SHALL ANY RENEWAL OF
 A LICENSE ISSUED UNDER THIS SECTION BE MADE FOR A PERSON, FIRM,  ASSOCI-
 ATION  OR  CORPORATION WHO ENGAGES IN THE BUSINESS OF ASSISTING FOR HIRE
 IN SECURING MOTOR VEHICLE REGISTRATIONS OR WHO, FOR  COMPENSATION,  GIVE
 INSTRUCTIONS AS TO PROCURING MOTOR VEHICLE REGISTRATIONS. THE PROVISIONS
 OF THIS PARAGRAPH SHALL NOT APPLY TO A HOLDER OF A LICENSE ISSUED PURSU-
 ANT  TO  SECTION THREE HUNDRED NINETY-FOUR OF THIS ARTICLE OR THE HOLDER
 OF A CERTIFICATE OF REGISTRATION ISSUED PURSUANT TO SECTION FOUR HUNDRED
 FIFTEEN OF THIS CHAPTER.
   A licensee shall be subject to such reasonable regulations  concerning
 the  business  conducted  under  his  license  as  the  commissioner may
 prescribe and he shall permit the commissioner, or his  representatives,
 to  inspect  his place of business on any business day and shall furnish
 to the commissioner, or his representative, such information  concerning
 the conduct of the business as may be reasonably required.
   The  provisions  of subdivisions five and six of section three hundred
 ninety-four of this [chapter] ARTICLE shall be applicable  with  respect
 to this section.
   The holder of a license issued pursuant to section three hundred nine-
 ty-four  of  this  [chapter]  ARTICLE  or the holder of a certificate of
 registration issued pursuant to section four  hundred  fifteen  of  this
 chapter  shall not be required to secure a license under this section in
 order to conduct a business for which a  license  is  required  by  this
 section  but  any  such  licensee, or registrant, who shall conduct such
 business, shall be subject to the same visitation and regulation by  the
 commissioner with reference to such business as provided in this section
 with respect to a licensee under this section.
   As  used in this section the phrase "licenses to drive motor vehicles"
 includes the term "learners' permits".
   A violation of any of the provisions of this section shall  constitute
 a misdemeanor.
   § 2. This act shall take effect immediately.

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