S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1932
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2021
                                ___________
 
 Introduced  by M. of A. CARROLL, ABBATE, STIRPE, REYES, TAYLOR, CYMBROW-
   ITZ, DICKENS, ENGLEBRIGHT, D. ROSENTHAL, GALEF, GOTTFRIED,  DeSTEFANO,
   RAMOS,  MIKULIN,  SAYEGH,  SMITH,  WILLIAMS,  COOK,  ABINANTI,  QUART,
   SEAWRIGHT, REILLY, B. MILLER, ROZIC, FERNANDEZ, EPSTEIN, CRUZ,  STECK,
   PHEFFER AMATO,  PICHARDO,  RA,  BENEDETTO,  BYRNE,  JACOBSON, HYNDMAN,
   PERRY, THIELE, SOLAGES, LAVINE, STERN,  GRIFFIN,  JONES,  BUTTENSCHON,
   BRAUNSTEIN,  FALL,  FRONTUS,  PAULIN,  L. ROSENTHAL,  WALLACE,  DILAN,
   AUBRY, JEAN-PIERRE, DARLING, WALKER -- Multi-Sponsored by -- M. of  A.
   DE LA ROSA,  FITZPATRICK,  HEVESI,  SIMON -- read once and referred to
   the Committee on Consumer Affairs and Protection
 
 AN ACT to amend the general business law, the vehicle  and  traffic  law
   and  the personal property law, in relation to designating new automo-
   tive broker businesses
 
   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 chapter 28 of the laws of  2018,  is  amended  and  a  new
 subdivision 4 is added 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 NEW MOTOR VEHICLE dealer OR QUALIFIED DEALER pursuant to
 article sixteen of the vehicle and traffic law nor any bona fide employ-
 ee  of  a  registered NEW MOTOR VEHICLE DEALER OR QUALIFIED dealer while
 acting for such NEW MOTOR VEHICLE DEALER OR  QUALIFIED  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  auto-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05349-01-1

 A. 1932                             2
 
 mobiles  in  any  calendar  year,  any national service which aggregates
 information for consumers, but does  not  otherwise  have  contact  with
 consumers, [or] any motor vehicle franchisor, manufacturer, or distribu-
 tor,  DISTRIBUTOR  BRANCH  OR  FACTORY  BRANCH  registered under article
 sixteen of the vehicle and traffic law.
   4. "NEW MOTOR VEHICLE" SHALL HAVE  THE  SAME  MEANING  AS  DEFINED  IN
 SUBDIVISION  ELEVEN OF SECTION FOUR HUNDRED SIXTY-TWO OF THE VEHICLE AND
 TRAFFIC LAW.
   § 2. Section 736-a of the general business law, as  added  by  chapter
 477 of the laws of 2017, is amended to read as follows:
   § 736-a. Registration required. 1. (A) No person shall engage in busi-
 ness  as  an  automobile  broker  business,  as defined in section seven
 hundred thirty-six of this article, without first having been  issued  a
 certificate  of  registration for an automobile broker business pursuant
 to paragraph c of subdivision seven of section four hundred  fifteen  of
 the  vehicle and traffic law. A CERTIFICATE OF REGISTRATION FOR AN AUTO-
 MOBILE BROKER BUSINESS SHALL BE VALID FOR A PERIOD OF TWO YEARS.
   (B) NO AUTOMOBILE BROKER BUSINESS SHALL REPRESENT  OR  ACCEPT  PAYMENT
 FROM,  EITHER  DIRECTLY OR INDIRECTLY, A FRANCHISEE, DEALER, FRANCHISOR,
 MANUFACTURER, DISTRIBUTOR, DISTRIBUTOR BRANCH AND/OR FACTORY BRANCH,  AS
 SUCH TERMS ARE DEFINED IN SECTIONS FOUR HUNDRED FIFTEEN AND FOUR HUNDRED
 SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW.
   (C) NO AUTOMOBILE BROKER BUSINESS SHALL PERFORM ANY SERVICES INVOLVING
 THE  PURCHASING,  ARRANGING,  ASSISTING,  FACILITATING  OR EFFECTING THE
 PURCHASE OR LEASE OF AN AUTOMOBILE AS AGENT, BROKER, OR INTERMEDIARY FOR
 A CONSUMER, UNLESS DONE PURSUANT TO A CONTRACT THAT  COMPLIES  WITH  THE
 PROVISIONS OF SECTION SEVEN HUNDRED THIRTY-EIGHT OF THIS ARTICLE.
   2.  A  certificate  of  registration for an automobile broker business
 shall not permit the registrant to display for sale or lease any new  or
 used  motor vehicles without registration as a dealer under section four
 hundred fifteen of the vehicle and traffic law.
   3. ANY PERSON THAT SELLS OR LEASES FIVE OR MORE VEHICLES IN A CALENDAR
 YEAR TO OR THROUGH ONE OR MORE AUTOMOBILE  BROKER  BUSINESSES  SHALL  BE
 DEEMED TO BE DEALING IN MOTOR VEHICLES AS THAT TERM IS USED IN PARAGRAPH
 A  OF SUBDIVISION ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND
 TRAFFIC LAW.
   4. THE COMMISSIONER OF MOTOR VEHICLES  SHALL  ADOPT  RULES  AND  REGU-
 LATIONS  NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS SECTION, INCLUD-
 ING REGULATIONS THAT REQUIRE THE DISCLOSURE OF THE  NAME,  ADDRESS,  AND
 REGISTRATION  NUMBER  OF AN AUTOMOBILE BROKER BUSINESS THAT PROVIDED THE
 SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE  PURCHASE
 OR  LEASE  OF ANY NEW MOTOR VEHICLE, AND THE FEE COLLECTED BY THE BROKER
 FROM THE CONSUMER FOR PROVIDING SUCH SERVICE. SUCH RULES AND REGULATIONS
 SHALL REQUIRE THAT SUCH INFORMATION OF THE  AUTOMOBILE  BROKER  BUSINESS
 AND  ITS  FEE  FOR  SERVICE  BE PRINTED ON ANY INVOICE, BILL OF SALE, OR
 BUYER'S ORDER, AND ON ANY APPLICATION FOR REGISTRATION OR TITLE  SUBMIT-
 TED  BY  ANY DEALER TO THE DEPARTMENT OF MOTOR VEHICLES ON BEHALF OF THE
 CONSUMER RELATED TO SUCH PURCHASED OR LEASED MOTOR VEHICLE.
   § 3. The general business law is amended by adding a new section 737-a
 to read as follows:
   § 737-A. BONA FIDE BID SOLICITING  REQUIRED.  1.  ON  BEHALF  OF  EACH
 CONSUMER  EXECUTING  A  CONTRACT  THAT  CONFORMS  TO THE REQUIREMENTS OF
 SUBDIVISION THREE OF SECTION SEVEN HUNDRED THIRTY-EIGHT OF THIS ARTICLE,
 AN AUTOMOBILE BROKER BUSINESS SHALL SOLICIT A BID, FROM AT  LEAST  THREE
 NEW MOTOR VEHICLE DEALERS OF THE SAME LINE-MAKE, THAT MEETS THE SPECIFI-
 CATIONS  OF  SUCH  PROSPECTIVE  BUYER  OR LESSEE, INCLUDING FROM THE NEW

 A. 1932                             3
 
 MOTOR VEHICLE DEALER LOCATED IN CLOSEST PROXIMITY TO THE HOME ADDRESS OF
 A PROSPECTIVE BUYER OR LESSEE OF A NEW MOTOR VEHICLE OR, IN THE CASE  OF
 AN  ENTITY,  THE  PLACE  OF  DOING BUSINESS OF SUCH PROSPECTIVE BUYER OR
 LESSEE  OF  A  NEW MOTOR VEHICLE. WHENEVER AN AUTOMOBILE BROKER BUSINESS
 MAY CHOOSE BID SPECIFICATIONS ON BEHALF OF A CONSUMER,  SUCH  AUTOMOBILE
 BROKER BUSINESS SHALL SOLICIT A BID MATCHING SUCH SPECIFICATIONS FROM AT
 LEAST  THREE  NEW MOTOR VEHICLE DEALERS OF THE SAME LINE-MAKE, INCLUDING
 FROM THE NEW MOTOR VEHICLE DEALER LOCATED IN CLOSEST  PROXIMITY  TO  THE
 HOME ADDRESS OF A PROSPECTIVE BUYER OR LESSEE OF A NEW MOTOR VEHICLE OR,
 IN  THE  CASE OF AN ENTITY, THE PLACE OF DOING BUSINESS OF SUCH PROSPEC-
 TIVE BUYER OR LESSEE OF A NEW MOTOR VEHICLE.
   2. AT A MINIMUM, AN AUTOMOBILE BROKER BUSINESS  THAT  SOLICITS  A  BID
 PURSUANT  TO SUBDIVISION ONE OF THIS SECTION SHALL REQUEST THE FOLLOWING
 INFORMATION AS PART OF ANY SOLICITATION TO A NEW MOTOR VEHICLE DEALER:
   (A) PRICE OR LEASE COSTS;
   (B) DOWN OR SIMILAR PAYMENT;
   (C) NUMBER OF PAYMENTS;
   (D) AMOUNT OF INSTALLMENT OR MONTHLY PAYMENTS;
   (E) MAKE, MODEL, YEAR OF PRODUCTION, AND COLOR OF ANY AVAILABLE  MOTOR
 VEHICLE;
   (F)  WHETHER  THE MOTOR VEHICLE HAS ACCESSORIES SPECIFICALLY REQUESTED
 BY THE CONSUMER;
   (G) FEES;
   (H) WHERE APPLICABLE, FINANCE CHARGES AND/OR ANNUAL PERCENTAGE RATE;
   (I) ESTIMATED DELIVERY DATE OF THE AUTOMOBILE;
   (J) STATEMENT OF WHETHER OR NOT THE MANUFACTURER'S WARRANTY ACCOMPANY-
 ING THE MOTOR VEHICLE IS THE SAME WARRANTY AS THAT FURNISHED TO PURCHAS-
 ERS OF THAT MAKE MOTOR VEHICLE FROM AN AUTHORIZED DEALER; AND
   (K) THE IDENTITY OF THE NEW MOTOR VEHICLE DEALER OFFERING A BID.
   3. THE CONTENTS OF EACH BID  BY  A  MOTOR  VEHICLE  DEALER,  SOLICITED
 PURSUANT  TO  SUBDIVISION ONE OF THIS SECTION, SHALL BE PROVIDED TO EACH
 CONSUMER ON WHOSE BEHALF SUCH BID HAS BEEN SOLICITED, REGARDLESS OF  THE
 PARTICULARS OR CONTENT OF ANY SUCH BID.
   4.  THE  COMMISSIONER  OF  MOTOR  VEHICLES SHALL ADOPT RULES AND REGU-
 LATIONS NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS SECTION.
   § 4. The opening paragraph and paragraph  (e)  of  subdivision  1  and
 subdivisions  3  and  4  of section 738 of the general business law, the
 opening paragraph and paragraph (e) of  subdivision  1  as  amended  and
 subdivision 4 as added by chapter 28 of the laws of 2018 and subdivision
 3  as amended by chapter 477 of the laws of 2017, are amended to read as
 follows:
   Every contract between a consumer and an  automobile  broker  business
 for  the  purchase  of [an automobile] A MOTOR VEHICLE, OTHER THAN A NEW
 MOTOR VEHICLE, 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:
   (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, as well as all
 fees, commissions or other valuable [considerations paid by  an  automo-
 bile dealer] CONSIDERATION OWED BY THE CONSUMER to the automobile broker
 business  for  selling, arranging, assisting or effecting the sale of an
 automobile as agent, broker, or intermediary between  the  consumer  and
 the automobile dealer.

 A. 1932                             4
 
   3. EVERY CONTRACT BETWEEN A CONSUMER AND AN AUTOMOBILE BROKER BUSINESS
 FOR  THE  SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE
 PURCHASE OR LEASE OF A NEW MOTOR VEHICLE SHALL BE IN WRITING,  SHALL  BE
 DATED,  SHALL  CONTAIN THE STREET ADDRESS OF THE AUTOMOBILE BROKER BUSI-
 NESS  AND  THE  CONSUMER, AND SHALL BE SIGNED BY THE CONSUMER AND BY THE
 AUTOMOBILE BROKER BUSINESS. EVERY SUCH CONTRACT SHALL  COMPLY  WITH  THE
 REQUIREMENTS  SET  FORTH  IN  THIS  SECTION  AND  CONTAIN  THE FOLLOWING
 PROVISIONS, WHICH SHALL BE PRINTED IN AT LEAST  TWELVE-POINT  BOLD  TYPE
 AND SHALL NOT BE NEGATED OR SUPERSEDED BY ANY ADDITIONAL PROVISION:
   (A)  A TITLE, ACROSS THE TOP OF THE DOCUMENT IN AT LEAST SIXTEEN-POINT
 BOLD TYPE, OF "CONTRACT FOR AUTOMOBILE  BROKERING  SERVICES  FOR  A  NEW
 MOTOR VEHICLE".
   (B) A STATEMENT OF WHETHER A SOLICITED NEW MOTOR VEHICLE IS OR WILL BE
 MANUFACTURED  IN  ACCORDANCE WITH UNITED STATES SAFETY AND ENVIRONMENTAL
 SPECIFICATIONS AND IS OR WILL BE CERTIFIED BY THE MANUFACTURER AS  SUCH;
 PROVIDED, IF THE NEW MOTOR VEHICLE IS NOT OR WILL NOT BE MANUFACTURED IN
 ACCORDANCE  WITH  UNITED STATES SAFETY AND ENVIRONMENTAL SPECIFICATIONS,
 AND THE CONSUMER HAS RETAINED THE AUTOMOBILE BROKER BUSINESS TO  ARRANGE
 FOR  THE  MODIFICATION  OF THE NEW MOTOR VEHICLE TO MEET SUCH SPECIFICA-
 TIONS, THE NAME AND STREET ADDRESS OF THE MODIFICATION  FACILITY  AND  A
 STATEMENT IN IMMEDIATE PROXIMITY TO SUCH INFORMATION THAT THE AUTOMOBILE
 BROKER BUSINESS ASSUMES FULL FINANCIAL RESPONSIBILITY THAT THE NEW MOTOR
 VEHICLE  WILL  BE PROPERLY MODIFIED TO MEET ALL UNITED STATES SAFETY AND
 ENVIRONMENTAL SPECIFICATIONS.
   (C) A STATEMENT THAT THE CONSUMER MAY CANCEL THE CONTRACT FOR  AUTOMO-
 BILE  BROKERING  SERVICES  FOR A NEW MOTOR VEHICLE FOR ANY REASON WITHIN
 THREE DAYS OF THE EXECUTION OF SUCH CONTRACT AND THAT THE  CONSUMER  HAS
 THE RIGHT TO A FULL REFUND WITHIN TEN BUSINESS DAYS FOLLOWING RECEIPT OF
 THE NOTICE OF CANCELLATION.
   (D)  A  STATEMENT  THAT,  IF THE REQUESTED NEW MOTOR VEHICLE CANNOT BE
 PROCURED BY THE AUTOMOBILE BROKER BUSINESS WITHIN THIRTY DAYS  FOLLOWING
 THE  DATE OF EXECUTION OF THE CONTRACT FOR AUTOMOBILE BROKERING SERVICES
 FOR A NEW MOTOR VEHICLE, THE  CONSUMER  HAS  THE  RIGHT  TO  CANCEL  THE
 CONTRACT AND TO RECEIVE A FULL REFUND WITHIN TEN BUSINESS DAYS FOLLOWING
 RECEIPT  OF  THE  REQUEST  FOR A REFUND, UNLESS THE DELAY IN DELIVERY IS
 ATTRIBUTABLE TO THE CONSUMER.
   (E) A STATEMENT THAT THE CONSUMER SHALL BE PROVIDED WITH THE  CONTENTS
 OF  EACH  BID  RECEIVED BY THE AUTOMOBILE BROKER BUSINESS IN RESPONSE TO
 ITS SOLICITATION ON BEHALF OF SUCH CONSUMER.
   (F) THE AMOUNT OF THE FEE TO BE PAID BY THE CONSUMER TO THE AUTOMOBILE
 BROKER BUSINESS FOR THE SERVICE OF ARRANGING, ASSISTING, FACILITATING OR
 EFFECTING THE PURCHASE OR LEASE OF A NEW MOTOR VEHICLE.
   (G) A STATEMENT THAT THE SINGLE FEE AUTHORIZED BY  SUCH  CONTRACT  FOR
 AUTOMOBILE  BROKERING  SERVICES  FOR A NEW MOTOR VEHICLE IS INCLUSIVE OF
 ALL CHARGES INCIDENT TO THE PURCHASING, ARRANGING, ASSISTING, FACILITAT-
 ING OR EFFECTING THE PURCHASE OR LEASE OF SUCH NEW MOTOR VEHICLE BY  THE
 AUTOMOBILE BROKER BUSINESS AS AGENT, BROKER, OR INTERMEDIARY AND THAT NO
 OTHER CHARGE OR EXPENSE WHATSOEVER SHALL BE TAKEN, RECEIVED, RESERVED OR
 CONTRACTED FOR BY THE AUTOMOBILE BROKER BUSINESS FOR SUCH SERVICES.
   4.  THE  CONTRACT  FOR  AUTOMOBILE  BROKERING SERVICES FOR A NEW MOTOR
 VEHICLE SHALL BE ACCOMPANIED BY A COMPLETED FORM IN DUPLICATE, CAPTIONED
 "NOTICE OF CANCELLATION" WHICH SHALL BE ATTACHED  TO  THE  CONTRACT  AND
 EASILY DETACHABLE, AND WHICH SHALL CONTAIN IN AT LEAST TWELVE-POINT TYPE
 THE FOLLOWING:
   "NOTICE  OF  CANCELLATION  YOU MAY CANCEL THIS CONTRACT FOR AUTOMOBILE
 BROKERING SERVICES FOR A NEW MOTOR VEHICLE, WITHOUT ANY PENALTY OR OBLI-

 A. 1932                             5
 
 GATION, WITHIN THREE DAYS FROM THE DATE  THAT  A  COPY  OF  AN  EXECUTED
 CONTRACT  IS RECEIVED BY YOU. YOU MAY ALSO CANCEL THIS CONTRACT, WITHOUT
 PENALTY OR OBLIGATION,  IF  THE  AUTOMOBILE  BROKER  BUSINESS  DOES  NOT
 PRODUCE A BID MEETING YOUR SPECIFICATIONS WITHIN THIRTY DAYS OF THE DATE
 OF EXECUTION OF THIS CONTRACT.
   TO  CANCEL  THIS  CONTRACT, MAIL OR DELIVER A SIGNED AND DATED COPY OF
 THIS CANCELLATION NOTICE, OR ANY OTHER WRITTEN NOTICE, TO (NAME OF AUTO-
 MOBILE BROKER BUSINESS) AT (ADDRESS OF AUTOMOBILE BROKER  BUSINESS)  NOT
 LATER  THAN  MIDNIGHT OF THE THIRD DAY, OR, IN THE CASE OF AN AUTOMOBILE
 BROKER BUSINESS NOT PRODUCING A BID MEETING YOUR  SPECIFICATIONS  WITHIN
 THIRTY  DAYS,  NOT  LATER  THAN MIDNIGHT OF THE THIRTIETH DAY, FOLLOWING
 YOUR RECEIPT OF A SIGNED CONTRACT.
   I HEREBY CANCEL THIS TRANSACTION.
   ________________________________  (SIGNATURE OF CONSUMER)
   _____________________  (DATE)"
   5. An automobile broker business shall deliver to the consumer or mail
 to him or her at the address shown on [the]  ANY  contract  REQUIRED  BY
 THIS SECTION , an executed copy thereof.
   [4. An] 6. IN ADDITION TO THE BROKERING SERVICES AGREEMENT REQUIRED BY
 SUBDIVISION  ONE  OF  THIS SECTION, 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 business 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. NOTHING IN THIS SECTION SHALL BE  CONSTRUED
 TO  PERMIT  THE  DELIVERY OF AN EXECUTED RETAIL LEASE AGREEMENT TO A NEW
 MOTOR VEHICLE BY A PERSON OTHER THAN THE PROSPECTIVE LESSEE.
   § 5. Subdivision 1 of section 740-a of the general  business  law,  as
 amended  by  chapter  477  of  the  laws  of 2017, is amended to read as
 follows:
   1. Automobile broker businesses shall obtain and continue in effect  a
 surety  bond  in  an  amount of [one] TWO hundred FIFTY thousand dollars
 executed by a surety company authorized  to  transact  business  in  the
 state  by  the  department  of  financial  services  of the state or its
 successor. The bonds shall be approved as to form by  the  secretary  of
 state  and  shall  be  conditioned  on  the  automobile broker business'
 payment of all valid  bank  drafts,  including  checks,  drawn  for  the
 purchase  of  motor  vehicles  and  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.
   § 6. Section 741 of the general business law, as added by chapter  616
 of the laws of 1988, is amended to read as follows:
   § 741. Deceptive  acts AND FRAUDS prohibited. 1. It is hereby declared
 to be a deceptive trade practice and unlawful for an  automobile  broker
 business  to  misrepresent  directly  or  indirectly in its advertising,
 promotional materials, sales presentation, or in any manner:
   [1.] (A) The nature of the services to be performed and that  a  third
 party will be paying for any such services;
   [2.] (B) The time within which the services will be performed;
   [3.] (C) The cost of the services to be performed; [and

 A. 1932                             6

   4.]  (D)  The ability of the automobile broker business to perform the
 services; AND
   (E)  THAT  THE  AUTOMOBILE  BROKER BUSINESS IS AFFILIATED WITH ANY NEW
 MOTOR  VEHICLE  MANUFACTURER,  DISTRIBUTOR,  DISTRIBUTOR  BRANCH  AND/OR
 FACTORY  BRANCH INCLUDING THE USE OF ANY TRADEMARKS OR COPYRIGHTED MATE-
 RIAL WITHOUT THE EXPRESS, WRITTEN CONSENT OF THE OWNER OF SUCH MATERIAL.
   2. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS TO REFUSE TO DISCLOSE ITS REGISTRATION NUMBER, ISSUED EITHER BY
 THE DEPARTMENT OF  MOTOR  VEHICLES  PURSUANT  TO  SECTION  FOUR  HUNDRED
 FIFTEEN  OF  THE  VEHICLE  AND TRAFFIC LAW OR A MUNICIPALITY, TO A MOTOR
 VEHICLE DEALER. FURTHERMORE, IT SHALL BE A FRAUDULENT BUSINESS  PRACTICE
 FOR  AN  AUTOMOBILE  BROKER  BUSINESS TO MAKE ANY MISREPRESENTATION TO A
 MOTOR VEHICLE DEALER OR NEW MOTOR VEHICLE DEALER REGARDING THE ELIGIBIL-
 ITY OF ANY  CONSUMER  FOR  ANY  DISCOUNTS,  REDUCTIONS  OR  ANY  BENEFIT
 PROGRAMS REGARDING THE SALE OR LEASE OF A MOTOR VEHICLE.
   3. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS  TO ADVERTISE NEW MOTOR VEHICLES, THROUGH ANY PRINT, ELECTRONIC
 OR DIGITAL SIGNAL OR  MEDIUM,  WRITTEN  OR  VERBAL  STATEMENT  OR  WORD,
 DESIGN,  DEVICE,  SOUND OR ANY COMBINATION OF ANY SUCH METHOD OR MEDIUM,
 WITHOUT DISCLOSING THAT IT IS NOT A LICENSED MOTOR VEHICLE DEALER AND IS
 NOT AN AUTHORIZED SATELLITE LOCATION FOR ANY PARTICULAR  LICENSED  MOTOR
 VEHICLE DEALER.
   4. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS TO ADVERTISE THROUGH ANY PRINT, ELECTRONIC OR DIGITAL SIGNAL OR
 MEDIUM,  WRITTEN  OR  VERBAL STATEMENT OR WORD, DESIGN, DEVICE, SOUND OR
 ANY COMBINATION OF ANY SUCH METHOD OR MEDIUM, THAT WOULD LEAD A  REASON-
 ABLE  CONSUMER  TO  CONCLUDE  THAT  THE  AUTOMOBILE BROKER BUSINESS IS A
 LICENSED NEW MOTOR VEHICLE DEALER.
   5. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS TO MAINTAIN ANY WEBSITE WITHOUT INCLUDING A TEXT BOX  WITH  THE
 FOLLOWING  STATEMENT IN NO LESS THAN EIGHTEEN-POINT BOLDFACE TYPE ON THE
 SPLASH PAGE:  "(BROKER NAME) IS NOT A LICENSED NEW MOTOR VEHICLE  DEALER
 IN  THE  STATE  OF  NEW  YORK,  NOR IS IT AN AUTHORIZED AFFILIATE OF ANY
 LICENSED NEW MOTOR VEHICLE DEALER IN THE STATE OF NEW YORK".
   6. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS TO INCLUDE ANY PRICING OR FINANCING OFFERS OR PROMOTIONS IN ANY
 ADVERTISEMENT, INCLUDING ANY PRINT,  ELECTRONIC  OR  DIGITAL  SIGNAL  OR
 MEDIUM,  WRITTEN  OR  VERBAL STATEMENT OR WORD, DESIGN, DEVICE, SOUND OR
 ANY COMBINATION OF ANY SUCH METHOD OR MEDIUM.
   7. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS TO GAIN ACCESS TO OR USE, OR REPRESENT OR ADVERTISE THAT IT MAY
 ACCESS OR USE, A PORTAL, COMPUTER,  OR  INTERNET  ACCOUNT  OWNED  BY  OR
 RESERVED  FOR  A  NEW  MOTOR VEHICLE DEALER TO ACCESS OR USE ONE OR MORE
 FINANCE SOURCES THAT  PROVIDE  AUTOMOTIVE-RELATED  LOANS,  OR  PURCHASES
 RETAIL INSTALLMENT CONTRACTS OR LEASE CONTRACTS FOR MOTOR VEHICLES.
   § 7. Section 741-b of the general business law, as added by chapter 28
 of the laws of 2018, is amended to read as follows:
   § 741-b. [Disclosure]  DISCLOSURES  REQUIRED BY BROKERS. 1. An automo-
 bile broker business shall GENERATE AND provide a disclosure at the time
 such automobile broker business takes an order to search for a leased OR
 PURCHASED vehicle meeting the prospective BUYER OR  lessee's  specifica-
 tions. Such disclosure shall provide the amount of any fees, commissions
 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 PURCHASE OR lease transaction. If the amount of  any  such

 A. 1932                             7

 fees,  commissions 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 PURCHASE OR lease  trans-
 action[;  and  (b) whether the automobile broker business may be compen-
 sated by the dealer, lessor or  any  other  person  or  entity  for  any
 assistance  in effecting such lease transaction]. NOTHING IN THIS SUBDI-
 VISION SHALL BE CONSTRUED TO PERMIT THE PAYMENT OF ANY FEES, COMMISSIONS
 OR OTHER VALUABLE CONSIDERATION TO AN AUTOMOBILE BROKER BUSINESS BY  ANY
 MOTOR VEHICLE DEALER.
   2.  AN  AUTOMOBILE BROKER BUSINESS SHALL GENERATE AND PROVIDE AN ADDI-
 TIONAL DISCLOSURE TO THE CONSUMER AT THE  TIME  SUCH  AUTOMOBILE  BROKER
 BUSINESS  TAKES  AN  ORDER  TO  SEARCH  FOR  A MOTOR VEHICLE MEETING THE
 PROSPECTIVE BUYER OR LESSEE'S SPECIFICATIONS. SUCH ADDITIONAL DISCLOSURE
 SHALL STATE THE FOLLOWING:
   (A) THAT THE AUTOMOBILE BROKER BUSINESS SHALL MAKE A BONA FIDE ATTEMPT
 TO OBTAIN A BID, QUOTE OR OFFER FROM AT LEAST THREE UNAFFILIATED DEALERS
 ON BEHALF OF THE PROSPECTIVE BUYER OR LESSEE FOR A MOTOR VEHICLE MEETING
 THE PROSPECTIVE BUYER OR LESSEE'S SPECIFICATIONS, INCLUDING FROM THE NEW
 MOTOR VEHICLE DEALER OF SUCH LINE-MAKE LOCATED CLOSEST TO  THE  HOME  OR
 PLACE  OF BUSINESS OF SUCH PROSPECTIVE BUYER FOR A CONSUMER THAT SEEKS A
 NEW MOTOR VEHICLE;
   (B) THAT THE AUTOMOBILE BROKER BUSINESS SHALL PROVIDE TO THE  CONSUMER
 ALL  CONTENTS  OF EACH BID MADE BY A MOTOR VEHICLE DEALER IN RESPONSE TO
 THE SOLICITATION OF THE AUTOMOBILE BROKER BUSINESS; AND
   (C) THAT THE AUTOMOBILE BROKER BUSINESS HAS A  DUTY  TO  ACT  FOR  THE
 BENEFIT OF THE PROSPECTIVE BUYER OR LESSEE.
   3.  EACH  DISCLOSURE REQUIRED BY THIS SECTION TO BE MADE TO A CONSUMER
 SHALL BE ACKNOWLEDGED IN WRITING BY EACH CONSUMER.
   4. PRIOR TO THE EXECUTION OF ANY PURCHASE CONTRACT  OR  LEASE  FOR  AN
 AUTOMOBILE,  AN  AUTOMOBILE  BROKER BUSINESS SHALL PROVIDE EACH CONSUMER
 WITH ALL DISCLOSURES REQUIRED TO BE MADE BY A DEALER.
   § 8. The general business law is amended by adding a new section 741-c
 to read as follows:
   § 741-C. PRIVATE INFORMATION SECURITY. 1. AN AUTOMOBILE  BROKER  BUSI-
 NESS  SHALL  REPORT  ANNUALLY  TO  THE  DEPARTMENT OF MOTOR VEHICLES ITS
 COMPLIANCE WITH SECTIONS THREE  HUNDRED  NINETY-NINE-CC,  THREE  HUNDRED
 NINETY-NINE-DD,  THREE  HUNDRED  NINETY-NINE-DDD,  THREE HUNDRED NINETY-
 NINE-H, THREE HUNDRED NINETY-NINE-OO, THREE HUNDRED NINETY-NINE-P, THREE
 HUNDRED NINETY-NINE-PP, AND EIGHT HUNDRED NINETY-NINE-BB OF  THIS  CHAP-
 TER.  FOR THE PURPOSES OF SUBDIVISION TWO OF SECTION EIGHT HUNDRED NINE-
 TY-NINE-BB OF THIS CHAPTER, AN AUTOMOBILE BROKER BUSINESS SHALL  NOT  BE
 CONSIDERED A SMALL BUSINESS AS THAT TERM IS DEFINED IN THAT SECTION.
   2. IN ADDITION TO THE REQUIREMENTS OF SUBDIVISION ONE OF THIS SECTION,
 AN AUTOMOBILE BROKER BUSINESS SHALL:
   (A) KEEP AND MAINTAIN ALL CONSUMER RECORDS CONTAINING PRIVATE INFORMA-
 TION  IN  A SAFE PLACE THAT IS NOT ACCESSIBLE TO PERSONS NOT EMPLOYED BY
 THE AUTOMOBILE BROKER BUSINESS, INCLUDING BY KEEPING AND  MAINTAINING  A
 CLEAR AND PERMANENT PHYSICAL BARRIER FROM OTHER BUSINESSES THAT SHARE OR
 NEIGHBOR ITS PLACE OF BUSINESS;
   (B)  HAVE  A  MAILBOX  AT SUCH PLACE OF BUSINESS DEDICATED ONLY TO THE
 AUTOMOBILE BROKER BUSINESS; AND
   (C) HAVE A METHOD OF LOCKING SECURITY ITEMS, INCLUDING A LOCKING CABI-
 NET OR SAFE.

 A. 1932                             8
 
   3. NO TRANSACTION FOR THE PURCHASE OR LEASE OF A  PREVIOUSLY  UNREGIS-
 TERED MOTOR VEHICLE THAT WAS ARRANGED, ASSISTED, FACILITATED OR EFFECTED
 BY  AN  AUTOMOBILE  BROKER  BUSINESS  SHALL BE VALID UNLESS THE CONSUMER
 PERSONALLY DELIVERS AN EXECUTED PURCHASE CONTRACT OR LEASE,  AND,  WHERE
 APPLICABLE,  FINANCING AGREEMENT, TO THE PLACE OF BUSINESS OF THE DEALER
 FROM WHICH SUCH VEHICLE WILL BE PURCHASED  OR  LEASED  AND  SUCH  DEALER
 VERIFIES THE IDENTITY OF SUCH CONSUMER.
   §  9.  Section  743 of the general business law, as amended by chapter
 372 of the laws of 2016, is amended to read as follows:
   § 743. Enforcement [by]. 1. BY attorney general. In  addition  to  the
 other  remedies  provided,  whenever  there shall be a violation of this
 article, application may be made by the attorney general in the name  of
 the  people of the state of New York to a court or justice having juris-
 diction by a special proceeding to issue an injunction, and upon  notice
 to  the defendant of not less than five days, to enjoin and restrain the
 continuance of such violations; and if it shall appear to the  satisfac-
 tion  of  the court or justice that the defendant has, in fact, violated
 this article, an injunction may be issued  by  such  court  or  justice,
 enjoining and restraining any further violation, without requiring proof
 that  any  person  has, in fact, been injured or damaged thereby. In any
 such proceeding, the court may make allowances to the  attorney  general
 as  provided in paragraph six of subdivision (a) of section eighty-three
 hundred three of the civil practice law and rules, and  direct  restitu-
 tion.  Whenever the court shall determine that a violation of this arti-
 cle has occurred, the court shall impose a civil  penalty  of  not  less
 than  [one] FOUR thousand dollars and not more than [three] TEN thousand
 dollars for each violation.  In connection with any such proposed appli-
 cation, the attorney general is authorized to  take  proof  and  make  a
 determination of the relevant facts and to issue subpoenas in accordance
 with the civil practice law and rules.
   2.  BY  LOCAL  AUTHORITIES.  (A) MUNICIPALITIES MAY, PURSUANT TO LOCAL
 LAW, ACT UPON THE BUSINESS ACTIVITY THAT IS THE SUBJECT OF THIS ARTICLE,
 PROVIDED THAT NO  LOCAL  GOVERNMENT  MAY  DIMINISH  THE  PROTECTIONS  OR
 REQUIREMENTS OF THIS ARTICLE OR PREVENT ENFORCEMENT OF ITS PROVISIONS BY
 APPROPRIATE STATE OFFICIALS.
   (B)  THE PROVISIONS OF THIS ARTICLE MAY BE ENFORCED IN THE SAME MANNER
 AS SET FORTH IN SUBDIVISION ONE OF THIS SECTION BY  THE  DIRECTOR  OF  A
 MUNICIPAL CONSUMER AFFAIRS OFFICE OR A BUSINESS INTEGRITY COMMISSION, OR
 BY THE TOWN ATTORNEY, CITY CORPORATION COUNSEL, OR OTHER LAWFULLY DESIG-
 NATED ENFORCEMENT OFFICER OF A MUNICIPALITY OR LOCAL GOVERNMENT, AND ALL
 MONIES  COLLECTED  THEREUNDER  SHALL BE RETAINED BY SUCH MUNICIPALITY OR
 LOCAL GOVERNMENT, PROVIDED THAT NO LOCAL GOVERNMENT MAY PREVENT ENFORCE-
 MENT OF ITS PROVISIONS BY APPROPRIATE STATE OFFICIALS.
   3. BY PRIVATE PARTY. ANY PERSONS THAT ARE OR MAY  BE  INJURED  BY  ANY
 VIOLATION  OF  THIS  ARTICLE  MAY BRING AN ACTION IN HIS OR HER OWN NAME
 AGAINST AN AUTOMOBILE BROKER BUSINESS TO ENJOIN  SUCH  UNLAWFUL  ACT  OR
 PRACTICE,  AN ACTION TO RECOVER HIS OR HER DAMAGES AND STATUTORY DAMAGES
 OF NOT LESS THAN FOUR THOUSAND DOLLARS AND NOT MORE  THAN  TEN  THOUSAND
 DOLLARS  FOR EACH VIOLATION, OR BOTH SUCH ACTIONS. INJURY SHALL INCLUDE,
 BUT NOT BE LIMITED TO, LOST SALES ON  ACCOUNT  OF  DECEPTIVE  OR  UNFAIR
 ADVERTISING  AND DEPRIVING A NEW MOTOR VEHICLE DEALER LOCATED CLOSEST TO
 A LESSEE OR PURCHASER THE OPPORTUNITY TO BID ON SUCH LEASE  OR  PURCHASE
 AS  ENTITLED  BY THIS ARTICLE. DAMAGES SHALL INCLUDE, BUT NOT BE LIMITED
 TO, LOST SALES AND THE VALUE OF INCENTIVE PAYMENTS,  BONUSES,  HOLDBACKS
 OR  SIMILAR  PAYMENTS  THAT  WOULD  HAVE  BEEN  REALIZED HAD A LESSEE OR
 PURCHASER PURCHASED OR LEASED SUCH VEHICLE FROM THE  NEW  MOTOR  VEHICLE

 A. 1932                             9
 
 DEALER  IN  CLOSEST  PROXIMITY  TO  SUCH LESSEE OR PURCHASER BUT FOR THE
 ACTIONS OF A PERSON WHO KNOWINGLY AIDED THE VIOLATION OF THE  PROVISIONS
 OF  THIS  ARTICLE.  NOTHING  IN THIS SECTION SHALL REQUIRE A FRANCHISOR,
 MANUFACTURER, OR DISTRIBUTOR TO GRANT A NEW MOTOR VEHICLE DEALER A BENE-
 FIT  UNDER AN INCENTIVE, BONUS, HOLDBACK OR SIMILAR PAYMENT THAT THE NEW
 MOTOR VEHICLE DEALER DID NOT EARN OR FOR WHICH  THE  NEW  MOTOR  VEHICLE
 DEALER  DID NOT COMPLETE OR QUALIFY. SUCH ACTIONS MAY BE BROUGHT REGARD-
 LESS OF WHETHER OR NOT THE UNDERLYING VIOLATION IS CONSUMER-ORIENTED  OR
 HAS  A  PUBLIC  IMPACT.  GIVEN  THE REMEDIAL NATURE OF THIS SUBDIVISION,
 STANDING TO BRING AN ACTION UNDER THIS SUBDIVISION  SHALL  BE  LIBERALLY
 CONSTRUED AND SHALL BE AVAILABLE TO THE FULLEST EXTENT OTHERWISE PERMIT-
 TED  BY  LAW.  THE COURT MAY, IN ITS DISCRETION, AWARD TREBLE DAMAGES IF
 THE COURT FINDS THE DEFENDANT WILLFULLY OR KNOWINGLY VIOLATED THIS ARTI-
 CLE. THE COURT SHALL AWARD REASONABLE ATTORNEY'S FEES  AND  COSTS  TO  A
 PREVAILING PLAINTIFF.
   §  10.  Paragraph a of subdivision 1 of section 415 of the vehicle and
 traffic law, as amended by chapter 554 of the laws of 2015,  is  amended
 to read as follows:
   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 OR LEASE 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.
 FOR  THE  PURPOSES  OF  THIS  SECTION,  "OFFERS FOR SALE OR LEASE" SHALL
 INCLUDE, BUT NOT BE LIMITED TO, THE ACT OF DRAWING THE  PUBLIC'S  ATTEN-
 TION  TO, OR THE PRESENTATION OR DISPLAY OF ANY MOTOR VEHICLE, INCLUDING
 THE POSTING OF IMAGES OF ANY SUCH VEHICLE,  TOGETHER  WITH  A  SUGGESTED
 RETAIL PRICE, LEASE COST OR FINANCING RATE FOR SUCH VEHICLE AND AN OFFER
 TO  PROVIDE,  THE PROVISION OF, OR A REPRESENTATION THAT SUCH PERSON MAY
 PROVIDE A SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE
 PURCHASE OR LEASE OF SUCH NEW MOTOR VEHICLE, EXCEPT THIS  MEANING  SHALL
 NOT  APPLY TO ANY ACTIVITY OF A COOPERATIVE OR OTHER ADVERTISING PROGRAM
 OR FUND AS DESCRIBED IN ANY FRANCHISE, AS SUCH TERM IS DEFINED BY SUBDI-
 VISION SIX OF SECTION FOUR HUNDRED  SIXTY-TWO  OF  THIS  TITLE,  OR  THE
 DISPLAY  OF AGGREGATED INFORMATION AND IMAGES BY A NATIONAL SERVICE THAT
 OTHERWISE DOES NOT HAVE CONTACT  WITH  CONSUMERS.  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.
   § 11. Subdivision 3 of section 415 of the vehicle and traffic  law  is
 amended by adding a new paragraph d to read as follows:
   D. IT IS HEREBY DECLARED TO BE A FRAUDULENT PRACTICE, FOR THE PURPOSES
 OF  PARAGRAPH C OF SUBDIVISION NINE OF THIS SECTION, FOR A DEALER TO USE
 ANY  SUBSIDIARY  CORPORATION,  AFFILIATED  CORPORATION,  OR  ANY   OTHER
 CONTROLLED  CORPORATION, PARTNERSHIP, ASSOCIATION, BUSINESS OR PERSON TO
 ACCOMPLISH WHAT WOULD OTHERWISE BE UNLAWFUL CONDUCT UNDER  THIS  ARTICLE
 OR ARTICLE THIRTY-FIVE-B OF THE GENERAL BUSINESS LAW, INCLUDING REQUEST-

 A. 1932                            10
 
 ING THAT AN AUTOMOBILE BROKER BUSINESS REPRESENT SUCH DEALER IN GENERAT-
 ING A SALE OR LEASE OR MAKING PAYMENT TO, EITHER DIRECTLY OR INDIRECTLY,
 AN AUTOMOBILE BROKER BUSINESS.
   §  12.  Subdivision  3-a and paragraph b-3 of subdivision 5 of section
 415 of the vehicle and traffic law, as added by chapter 477 of the  laws
 of 2017, are amended to read as follows:
   3-a.  Automobile  broker  business  registration.  A.  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 busi-
 ness  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 registra-
 tion submitted pursuant to subdivision five of this section. SUCH REGIS-
 TRATION  SHALL BE EFFECTIVE FOR A PERIOD NOT EXCEEDING TWO YEARS. AT THE
 DISCRETION OF THE COMMISSIONER A REGISTRATION MAY BE RENEWED FOR A PERI-
 OD OF UP TO TWO YEARS UPON APPLICATION THEREFOR, IN  SUCH  FORM  AS  THE
 COMMISSIONER  MAY  PRESCRIBE,  AND A SHOWING OF PROOF OF SATISFACTION OF
 THE REQUIREMENTS OF SECTION SEVEN HUNDRED FORTY-A OF THE  GENERAL  BUSI-
 NESS LAW, AND UPON PAYMENT OF THE FEE AS HEREIN PRESCRIBED.
   B.  THE  COMMISSIONER SHALL NOT ISSUE OR RENEW A CERTIFICATE OF REGIS-
 TRATION AUTHORIZED BY THIS SUBDIVISION TO ANY DEALER, FRANCHISEE,  FRAN-
 CHISOR, 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, EMPLOYEE OR CONTROLLED PERSON OR
 ENTITY THEREOF.
   C. AS A CONDITION OF ANY CERTIFICATE OF REGISTRATION ISSUED OR RENEWED
 PURSUANT TO THIS SUBDIVISION, AN AUTOMOBILE BROKER BUSINESS SHALL  HAVE,
 AND  CONTINUOUSLY  MAINTAIN, A PLACE OF BUSINESS IN THIS STATE FOR WHICH
 IT SHALL KEEP  AND  MAINTAIN  EVIDENCE  THAT  ALL  NECESSARY  APPROVALS,
 LICENSES  AND/OR  PERMITS  HAVE  BEEN  OBTAINED FROM ALL LOCAL GOVERNING
 BODIES TO OPERATE SUCH PLACE OF BUSINESS WITH CUSTOMER OR  CLIENT  TRAF-
 FIC.  NO  MORE  THAN ONE AUTOMOBILE BROKER BUSINESS SHALL OPERATE AT ANY
 SINGLE LOCATION AND NO AUTOMOBILE BROKER BUSINESS SHALL OPERATE  AT  THE
 SAME LOCATION AS A NEW MOTOR VEHICLE DEALER.
   D.  EVERY  REGISTERED AUTOMOBILE BROKER BUSINESS SHALL PROMINENTLY AND
 CONSPICUOUSLY POST, IN SUCH A MANNER THAT IT IS LIKELY TO BE  NOTICEABLE
 TO  ANYONE  ENTERING  ITS PREMISES, ITS OFFICIAL BUSINESS CERTIFICATE OF
 REGISTRATION AND A SIGN, WHICH SIGN SHALL CLEARLY STATE:
   "(NAME OF REGISTERED AUTOMOBILE BROKER) IS NOT A FRANCHISED NEW  MOTOR
 VEHICLE  DEALER.  WE ARE NOT AUTHORIZED OR APPROVED BY A MANUFACTURER OR
 DISTRIBUTOR TO SELL A NEW MOTOR VEHICLE OR PERFORM  RECALL  OR  ORIGINAL
 FACTORY  WARRANTY  WORK.  IF  YOU ORDER A SEARCH FOR A NEW MOTOR VEHICLE
 FROM THIS BROKER, WE MUST MAKE A BONA FIDE EFFORT TO SOLICIT  BIDS  FROM
 AT  LEAST  THREE  UNAFFILIATED NEW MOTOR VEHICLE DEALERS FOR A NEW MOTOR
 VEHICLE ON YOUR BEHALF, INCLUDING FROM YOUR LOCAL DEALER."
   E. AS A CONDITION OF ANY CERTIFICATE OF REGISTRATION ISSUED OR RENEWED
 PURSUANT TO THIS SUBDIVISION, AND BEFORE PERFORMING ANY BROKER  SERVICES
 RELATED  TO  A  NEW  MOTOR  VEHICLE, AN AUTOMOBILE BROKER BUSINESS SHALL
 ATTEST IN WRITING TO EACH CONSUMER, THAT THE BROKER: (I) IS NOT A  FRAN-
 CHISED NEW MOTOR VEHICLE DEALER; (II) IS NOT AUTHORIZED OR APPROVED BY A
 MANUFACTURER  OR  DISTRIBUTOR  TO  SELL  A  NEW MOTOR VEHICLE OR PERFORM
 RECALL OR ORIGINAL FACTORY WARRANTY WORK;  AND  (III)  THAT  THE  BROKER
 SHALL  MAKE A BONA FIDE EFFORT TO SOLICIT BIDS FROM AT LEAST THREE UNAF-
 FILIATED NEW MOTOR VEHICLE DEALERS THAT SELL A NEW MOTOR VEHICLE OR  ANY
 LINE  OR  MAKE  DESIRED  BY SUCH CONSUMER, INCLUDING FROM THE CONSUMER'S
 LOCAL DEALER.

 A. 1932                            11
 
   F. IT IS HEREBY DECLARED TO BE A FRAUDULENT PRACTICE, FOR THE PURPOSES
 OF PARAGRAPH C OF SUBDIVISION NINE OF THIS SECTION,  FOR  AN  AUTOMOBILE
 BROKER BUSINESS TO DRAW THE PUBLIC'S ATTENTION TO, OR PRESENT OR DISPLAY
 ANY  NEW MOTOR VEHICLE, INCLUDING BY POSTING IMAGES OF ANY SUCH VEHICLE,
 TOGETHER WITH A SUGGESTED RETAIL PRICE, LEASE COST OR FINANCING RATE FOR
 SUCH  VEHICLE  AND AN OFFER TO PROVIDE, THE PROVISION OF, OR A REPRESEN-
 TATION THAT SUCH PERSON MAY PROVIDE A SERVICE OF  ARRANGING,  ASSISTING,
 FACILITATING  OR EFFECTING THE PURCHASE OR LEASE OF SUCH NEW MOTOR VEHI-
 CLE.
   G. NOTHING IN THIS SUBDIVISION SHALL BE CONSTRUED TO PROHIBIT A  FRAN-
 CHISOR, MANUFACTURER, OR DISTRIBUTOR FROM SPONSORING ACTIVITIES INTENDED
 TO  GENERATE  LEADS TOWARD THE SALE OR LEASE OF A NEW MOTOR VEHICLE BY A
 FRANCHISEE.
   b-3. In the case of an application for registration as  an  automobile
 broker business, EITHER FOR INITIAL REGISTRATION OR RENEWAL THEREOF, 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, A COPY OF SUCH BOND CERTIFIED BY THE SECRETARY OF
 STATE OR ONE OF HIS OR HER AGENTS, AND A STATEMENT INDICATING ANY INTER-
 EST IN THE APPLICANT'S BUSINESS ENTITY BY A PERSON OR  ENTITY  DESCRIBED
 IN PARAGRAPH F OF SUBDIVISION ONE OR PARAGRAPH F OF SUBDIVISION SEVEN OF
 THIS  SECTION,  OR  ANY EMPLOYEE OR PERSON, CONTROLLING PERSON OR ENTITY
 THEREOF. If the bond is to be issued by an authorized agent of the sure-
 ty 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.
   § 13. Section 415 of the vehicle and traffic law is amended by  adding
 two new subdivisions 21 and 22 to read as follows:
   21. PENALTIES AND RIGHTS OF ACTION FOR FAILURE TO OBTAIN A CERTIFICATE
 OF  REGISTRATION AS AN AUTOMOBILE BROKER PURSUANT TO SUBDIVISION THREE-A
 AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION.  IN  ADDITION  TO
 ANY  OTHER  ACTION  AUTHORIZED  BY  LAW, THE COMMISSIONER, OR ANY PERSON
 DESIGNATED BY HIM OR HER, MAY PROCEED AGAINST A PARTY WHO  HAS  OPERATED
 AS  AN  AUTOMOBILE BROKER WITHOUT CERTIFICATE OF REGISTRATION IN ACCORD-
 ANCE WITH THE PROVISIONS OF THIS ARTICLE, IN ANY ONE OR MORE PROCEEDINGS
 AND BY ORDER TO ENJOIN SUCH UNLAWFUL ACTS OR PRACTICES AND REQUIRING THE
 OFFENDING PARTY TO PAY THE PEOPLE OF THIS STATE A PENALTY IN A  SUM  NOT
 LESS  THAN  FOUR THOUSAND DOLLARS AND NOT MORE THAN TEN THOUSAND DOLLARS
 FOR EACH  VIOLATION  FOUND  TO  HAVE  BEEN  COMMITTED.  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. FOR THE PURPOSES OF THIS SUBDIVISION, A "VIOLATION"  SHALL
 MEAN  EACH VEHICLE SOLD OR LEASED TO A CONSUMER FOR WHICH THE PARTY THAT
 FAILED TO OBTAIN CERTIFICATION AS AN AUTOMOBILE BROKER HAS SERVED AS  AN
 AUTOMOBILE BROKER.
   22. AUTOMOBILE BROKER RECORD REQUIREMENTS. A. AUTOMOBILE BROKERS SHALL
 MAINTAIN  A  PERMANENTLY BOUND BOOK IN WHICH SHALL BE RECORDED THE MAKE,
 MODEL, YEAR, COLOR AND VEHICLE IDENTIFICATION NUMBER OF  ALL  PREVIOUSLY
 UNREGISTERED AUTOMOBILES FOR WHICH SUCH BROKER HAS PROVIDED A SERVICE OF
 PURCHASING, ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE
 OR  LEASE  OF SUCH AUTOMOBILE WITHIN ANY PRECEDING SIX-YEAR PERIOD. SUCH
 BROKER SHALL ALSO RECORD IN SUCH  BOOK  THE  NAME  AND  ADDRESS  OF  THE
 PURCHASER OR LESSOR OF SUCH AUTOMOBILE, THE DATE OF SALE OR COMMENCEMENT
 OF  LEASE OF SUCH AUTOMOBILE AND THE NAME AND ADDRESS OF THE DEALER FROM
 WHICH THE AUTOMOBILE WAS PURCHASED OR LEASED.

 A. 1932                            12
 
   B. AUTOMOBILE BROKER BUSINESSES SHALL  MAINTAIN  A  PERMANENTLY  BOUND
 BOOK  IN  WHICH  SHALL  BE RECORDED ALL COMPLETED ORDERS TO SEARCH FOR A
 PREVIOUSLY UNREGISTERED AUTOMOBILE WITHIN ANY PRECEDING SIX-YEAR PERIOD.
 SUCH BROKER SHALL ALSO RECORD IN SUCH BOOK THE DATE OF SUCH  ORDER,  THE
 NAME AND ADDRESS OF THE PERSON OR ENTITY ORDERING SUCH SEARCH, THE AUTO-
 MOBILE  SPECIFICATIONS  PROVIDED BY SUCH PROSPECTIVE BUYER OR LESSEE AND
 THE NAME AND ADDRESS OF THE DEALERS SOLICITED FOR A QUOTE  OR  OFFER  ON
 BEHALF OF SUCH PROSPECTIVE BUYER OR LESSEE.
   C. SUCH BOOKS SHALL BE OPEN FOR INSPECTION BY THE COMMISSIONER, OR HIS
 OR  HER  AGENT,  DURING  REASONABLE BUSINESS HOURS. THE COMMISSIONER MAY
 ESTABLISH BY RULE THE FORM OF ANY SUCH BOOK.
   D. AS AN ALTERNATIVE TO A BOUND BOOK, AN AUTOMOBILE BROKER MAY  USE  A
 COMPUTER AND SOFTWARE APPROVED BY THE DEPARTMENT TO MAINTAIN THE RECORDS
 REQUIRED  TO  BE KEPT BY THIS SECTION, PROVIDED ALL INFORMATION REQUIRED
 BY PARAGRAPHS A AND B OF THIS  SECTION  ARE  RECORDED  AND  THE  RECORDS
 CONFORM TO SUCH ADDITIONAL REQUIREMENTS AS DETERMINED BY THE COMMISSION-
 ER.
   §  14.  Subdivision  5  of section 337 of the personal property law is
 amended by adding a new paragraph (m) and such  section  is  amended  by
 adding a new subdivision 4-a to read as follows:
   4-A.  ANY  CREDIT APPLICATION, OR OTHER REQUEST FOR A DETERMINATION OF
 CREDITWORTHINESS, IN FURTHERANCE OF A RETAIL LEASE AGREEMENT FOR  A  NEW
 MOTOR  VEHICLE,  THAT  IS  SUBMITTED TO A LESSOR OR ANTICIPATED ASSIGNEE
 THAT IS A MANUFACTURER, AS SUCH TERM IS DEFINED IN SUBDIVISION  NINE  OF
 SECTION  FOUR HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW, A PERSON
 UNDER CONTRACT WITH A MANUFACTURER TO SERVE  AS  HOLDER,  OR  A  CAPTIVE
 FINANCE  SOURCE,  AS  SUCH  TERM  IS  DEFINED  BY SUBDIVISION SIXTEEN OF
 SECTION FOUR HUNDRED SIXTY-TWO OF THE VEHICLE  AND  TRAFFIC  LAW,  SHALL
 INCLUDE THE NAME, ADDRESS, AND DEPARTMENT OF MOTOR VEHICLES REGISTRATION
 NUMBER  OF  THE  AUTOMOBILE BROKER BUSINESS THAT PROVIDED THE SERVICE OF
 ARRANGING, ASSISTING, FACILITATING OR EFFECTING SUCH AGREEMENT AS AGENT,
 BROKER, OR INTERMEDIARY FOR SUCH RETAIL LESSEE, AND THE  AMOUNT  OF  THE
 FEE PAID BY THE CONSUMER TO THE AUTOMOBILE BROKER BUSINESS, AS SUCH TERM
 IS  USED  IN  ARTICLE THIRTY-FIVE-B OF THE GENERAL BUSINESS LAW, FOR THE
 SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE LEASE  OF
 SUCH NEW MOTOR VEHICLE.
   (M)  IN  THE CASE OF A RETAIL LEASE AGREEMENT FOR A NEW MOTOR VEHICLE,
 AS SUCH TERM IS DEFINED IN SUBDIVISION ELEVEN OF  SECTION  FOUR  HUNDRED
 SIXTY-TWO  OF  THE  VEHICLE  AND TRAFFIC LAW, WHERE THE LESSOR OR ANTIC-
 IPATED ASSIGNEE IS A MANUFACTURER, AS SUCH TERM IS DEFINED  IN  SUBDIVI-
 SION  NINE  OF SECTION FOUR HUNDRED SIXTY-TWO OF THE VEHICLE AND TRAFFIC
 LAW, A PERSON UNDER CONTRACT WITH THE MANUFACTURER OF  SUCH  LEASED  NEW
 MOTOR  VEHICLE  TO SERVE AS HOLDER, OR A CAPTIVE FINANCE SOURCE, AS SUCH
 TERM IS DEFINED BY SUBDIVISION SIXTEEN OF SECTION FOUR HUNDRED SIXTY-TWO
 OF THE VEHICLE AND TRAFFIC LAW, THE NAME,  ADDRESS,  AND  DEPARTMENT  OF
 MOTOR  VEHICLES  REGISTRATION  NUMBER  OF THE AUTOMOBILE BROKER BUSINESS
 THAT PROVIDED THE  SERVICE  OF  ARRANGING,  ASSISTING,  FACILITATING  OR
 EFFECTING  SUCH  AGREEMENT  AS  AGENT,  BROKER, OR INTERMEDIARY FOR SUCH
 RETAIL LESSEE, AND THE AMOUNT OF THE FEE PAID BY  THE  CONSUMER  TO  THE
 AUTOMOBILE   BROKER   BUSINESS,   AS   SUCH  TERM  IS  USED  IN  ARTICLE
 THIRTY-FIVE-B OF THE GENERAL BUSINESS LAW, FOR THE SERVICE OF ARRANGING,
 ASSISTING, FACILITATING OR EFFECTING THE LEASE OF SUCH NEW  MOTOR  VEHI-
 CLE.
   §  15.  Severability. If any provision of this act, or any application
 of any provision of this act, is held to  be  invalid,  that  shall  not
 affect the validity or effectiveness of any other provision of this act,

 A. 1932                            13
 
 or  of  any other application of any provision of this act, which can be
 given effect without that provision or application; and to that end, the
 provisions and applications of this act are severable.
   §  16. This act shall take effect immediately; provided that all auto-
 mobile brokers registered on the effective date of this act  shall  have
 ninety days to come into compliance with the provisions of this act.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1932--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2021
                                ___________
 
 Introduced  by M. of A. CARROLL, ABBATE, STIRPE, REYES, TAYLOR, CYMBROW-
   ITZ, DICKENS, ENGLEBRIGHT, D. ROSENTHAL, GALEF, GOTTFRIED,  DeSTEFANO,
   RAMOS,  MIKULIN,  SAYEGH,  SMITH,  WILLIAMS,  COOK,  ABINANTI,  QUART,
   SEAWRIGHT, REILLY, B. MILLER, ROZIC, FERNANDEZ, EPSTEIN, CRUZ,  STECK,
   PHEFFER AMATO,  PICHARDO,  RA,  BENEDETTO,  BYRNE,  JACOBSON, HYNDMAN,
   PERRY, THIELE, SOLAGES, LAVINE, STERN,  GRIFFIN,  JONES,  BUTTENSCHON,
   BRAUNSTEIN,  FALL,  FRONTUS,  PAULIN,  L. ROSENTHAL,  WALLACE,  DILAN,
   AUBRY, JEAN-PIERRE, DARLING, WALKER, ANDERSON, JACKSON --  Multi-Spon-
   sored  by  -- M. of A.  DE LA ROSA, FITZPATRICK, HEVESI, SIMON -- read
   once and referred to the Committee on Consumer Affairs and  Protection
   --  committee  discharged,  bill amended, ordered reprinted as amended
   and recommitted to said committee
 
 AN ACT to amend the general business law, the vehicle  and  traffic  law
   and  the personal property law, in relation to designating new automo-
   tive broker businesses
 
   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 chapter 28 of the laws of 2018,  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 NEW MOTOR VEHICLE dealer OR QUALIFIED DEALER pursuant to
 article sixteen of the vehicle and traffic law nor any bona fide employ-
 ee  of  a  registered NEW MOTOR VEHICLE DEALER OR QUALIFIED dealer while
 acting for such NEW MOTOR VEHICLE DEALER OR  QUALIFIED  dealer,  or  any
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05349-03-1

 A. 1932--A                          2
 
 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  auto-
 mobiles  in  any  calendar  year,  any national service which aggregates
 information  for  consumers,  but  does  not otherwise have contact with
 consumers, [or] any motor vehicle franchisor, manufacturer, or distribu-
 tor, DISTRIBUTOR BRANCH  OR  FACTORY  BRANCH  registered  under  article
 sixteen of the vehicle and traffic law.
   §  2.  Section  736-a of the general business law, as added by chapter
 477 of the laws of 2017, is amended to read as follows:
   § 736-a. Registration required. 1. (A) No person shall engage in busi-
 ness as an automobile broker  business,  as  defined  in  section  seven
 hundred  thirty-six  of this article, without first having been issued a
 certificate of registration for an automobile broker  business  pursuant
 to  paragraph  c of subdivision seven of section four hundred fifteen of
 the vehicle and traffic law. A CERTIFICATE OF REGISTRATION FOR AN  AUTO-
 MOBILE BROKER BUSINESS SHALL BE VALID FOR A PERIOD OF TWO YEARS.
   (B)  NO  AUTOMOBILE  BROKER BUSINESS SHALL REPRESENT OR ACCEPT PAYMENT
 FROM, EITHER DIRECTLY OR INDIRECTLY, A FRANCHISEE,  DEALER,  FRANCHISOR,
 MANUFACTURER,  DISTRIBUTOR, DISTRIBUTOR BRANCH AND/OR FACTORY BRANCH, AS
 SUCH TERMS ARE DEFINED IN SECTIONS FOUR HUNDRED FIFTEEN AND FOUR HUNDRED
 SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW.
   (C) NO AUTOMOBILE BROKER BUSINESS SHALL PERFORM ANY SERVICES INVOLVING
 THE PURCHASING, ARRANGING,  ASSISTING,  FACILITATING  OR  EFFECTING  THE
 PURCHASE OR LEASE OF AN AUTOMOBILE AS AGENT, BROKER, OR INTERMEDIARY FOR
 A  CONSUMER,  UNLESS  DONE PURSUANT TO A CONTRACT THAT COMPLIES WITH THE
 PROVISIONS OF SECTION SEVEN HUNDRED THIRTY-EIGHT OF THIS ARTICLE.
   2. A certificate of registration for  an  automobile  broker  business
 shall  not permit the registrant to display for sale or lease any new or
 used motor vehicles without registration as a dealer under section  four
 hundred fifteen of the vehicle and traffic law.
   3. ANY PERSON THAT SELLS OR LEASES FIVE OR MORE VEHICLES IN A CALENDAR
 YEAR  TO  OR  THROUGH  ONE  OR  MORE AUTOMOBILE BROKER BUSINESS SHALL BE
 DEEMED TO BE DEALING IN MOTOR VEHICLES AS THAT TERM IS USED IN PARAGRAPH
 A OF SUBDIVISION ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE  AND
 TRAFFIC LAW.
   4.  THE  COMMISSIONER  OF  MOTOR  VEHICLES SHALL ADOPT RULES AND REGU-
 LATIONS NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS SECTION,  INCLUD-
 ING  REGULATIONS  THAT  REQUIRE THE DISCLOSURE OF THE NAME, ADDRESS, AND
 REGISTRATION NUMBER OF AN AUTOMOBILE BROKER BUSINESS THAT  PROVIDED  THE
 SERVICE  OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE
 OR LEASE OF ANY NEW MOTOR VEHICLE, AND THE FEE COLLECTED BY  THE  BROKER
 FROM THE CONSUMER FOR PROVIDING SUCH SERVICE. SUCH RULES AND REGULATIONS
 SHALL  REQUIRE  THAT  SUCH INFORMATION OF THE AUTOMOBILE BROKER BUSINESS
 AND ITS FEE FOR SERVICE BE PRINTED ON ANY  INVOICE,  BILL  OF  SALE,  OR
 BUYER'S  ORDER, AND ON ANY APPLICATION FOR REGISTRATION OR TITLE SUBMIT-
 TED BY ANY DEALER TO THE DEPARTMENT OF MOTOR VEHICLES ON BEHALF  OF  THE
 CONSUMER RELATED TO SUCH PURCHASED OR LEASED MOTOR VEHICLE.
   § 3. The general business law is amended by adding a new section 737-a
 to read as follows:
   §  737-A.  BONA  FIDE  BID  SOLICITING  REQUIRED. 1. ON BEHALF OF EACH
 CONSUMER EXECUTING A CONTRACT  THAT  CONFORMS  TO  THE  REQUIREMENTS  OF
 SUBDIVISION THREE OF SECTION SEVEN HUNDRED THIRTY-EIGHT OF THIS ARTICLE,
 AN  AUTOMOBILE  BROKER  BUSINESS  SHALL SOLICIT A BID, FROM AT LEAST NEW
 MOTOR VEHICLE DEALERS OF THE SAME LINE-MAKE, THAT MEETS  THE  SPECIFICA-
 TIONS  OF SUCH PROSPECTIVE BUYER OR LESSEE, INCLUDING FROM THE NEW MOTOR
 VEHICLE DEALER LOCATED IN CLOSEST PROXIMITY TO THE  HOME  ADDRESS  OF  A

 A. 1932--A                          3
 
 PROSPECTIVE BUYER OR LESSEE OF A NEW MOTOR VEHICLE OR, IN THE CASE OF AN
 ENTITY,  THE PLACE OF DOING BUSINESS OF SUCH PROSPECTIVE BUYER OR LESSEE
 OF A NEW MOTOR VEHICLE.  WHENEVER  AN  AUTOMOBILE  BROKER  BUSINESS  MAY
 CHOOSE  BID  SPECIFICATIONS  ON  BEHALF  OF  A CONSUMER, SUCH AUTOMOBILE
 BROKER BUSINESS SHALL SOLICIT A BID MATCHING SUCH SPECIFICATIONS FROM AT
 LEAST THREE NEW MOTOR VEHICLE DEALERS OF THE SAME  LINE-MAKE,  INCLUDING
 FROM  THE  NEW  MOTOR VEHICLE DEALER LOCATED IN CLOSEST PROXIMITY TO THE
 HOME ADDRESS OF A PROSPECTIVE BUYER OR LESSEE OF A NEW MOTOR VEHICLE OR,
 IN THE CASE OF AN ENTITY, THE PLACE OF DOING BUSINESS OF  SUCH  PROSPEC-
 TIVE BUYER OR LESSEE OF A NEW MOTOR VEHICLE.
   2.  AT  A  MINIMUM,  AN AUTOMOBILE BROKER BUSINESS THAT SOLICITS A BID
 PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL REQUEST THE  FOLLOWING
 INFORMATION AS PART OF ANY SOLICITATION TO A NEW MOTOR VEHICLE DEALER:
   (A) PRICE OR LEASE COSTS;
   (B) DOWN OR SIMILAR PAYMENT;
   (C) NUMBER OF PAYMENTS;
   (D) AMOUNT OF INSTALLMENT OR MONTHLY PAYMENTS;
   (E)  MAKE, MODEL, YEAR OF PRODUCTION, AND COLOR OF ANY AVAILABLE MOTOR
 VEHICLE;
   (F) WHETHER THE MOTOR VEHICLE HAS ACCESSORIES  SPECIFICALLY  REQUESTED
 BY THE CONSUMER;
   (G) FEES;
   (H) WHERE APPLICABLE, FINANCE CHARGES AND/OR ANNUAL PERCENTAGE RATE;
   (I) ESTIMATED DELIVERY DATE OF THE AUTOMOBILE;
   (J) STATEMENT OF WHETHER OR NOT THE MANUFACTURER'S WARRANTY ACCOMPANY-
 ING THE MOTOR VEHICLE IS THE SAME WARRANTY AS THAT FURNISHED TO PURCHAS-
 ERS OF THE SAME MOTOR VEHICLE BY AN AUTHORIZED DEALER; AND
   (K) THE IDENTITY OF THE NEW MOTOR VEHICLE DEALER OFFERING A BID.
   3.  THE  CONTENTS  OF  EACH  BID  BY A MOTOR VEHICLE DEALER, SOLICITED
 PURSUANT TO SUBDIVISION ONE OF THIS SECTION, SHALL BE PROVIDED  TO  EACH
 CONSUMER  ON WHOSE BEHALF SUCH BID HAS BEEN SOLICITED, REGARDLESS OF THE
 PARTICULARS OR CONTENT OF ANY SUCH BID.
   4. THE COMMISSIONER OF MOTOR VEHICLES  SHALL  ADOPT  RULES  AND  REGU-
 LATIONS NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS SECTION.
   §  4.  The  opening  paragraph  and paragraph (e) of subdivision 1 and
 subdivisions 3 and 4 of section 738 of the  general  business  law,  the
 opening  paragraph  and  paragraph  (e)  of subdivision 1 as amended and
 subdivision 4 as added by chapter 28 of the laws of 2018 and subdivision
 3 as amended by chapter 477 of the laws of 2017, are amended to read  as
 follows:
   Every  contract  between  a consumer and an automobile broker business
 for the purchase of [an automobile] A MOTOR VEHICLE, OTHER  THAN  A  NEW
 MOTOR  VEHICLE,  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:
   (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, as  well  as  all
 fees,  commissions  or other valuable [considerations paid by an automo-
 bile dealer] CONSIDERATION OWED BY THE CONSUMER to the automobile broker
 business for selling, arranging, assisting or effecting the sale  of  an
 automobile  as  agent,  broker, or intermediary between the consumer and
 the automobile dealer.

 A. 1932--A                          4
 
   3. EVERY CONTRACT BETWEEN A CONSUMER AND AN AUTOMOBILE BROKER BUSINESS
 FOR THE SERVICE OF ARRANGING, ASSISTING, FACILITATING OR  EFFECTING  THE
 PURCHASE  OR  LEASE OF A NEW MOTOR VEHICLE SHALL BE IN WRITING, SHALL BE
 DATED, SHALL CONTAIN THE STREET ADDRESS OF THE AUTOMOBILE  BROKER  BUSI-
 NESS  AND  THE  CONSUMER, AND SHALL BE SIGNED BY THE CONSUMER AND BY THE
 AUTOMOBILE BROKER BUSINESS. EVERY SUCH CONTRACT SHALL  COMPLY  WITH  THE
 REQUIREMENTS  SET  FORTH  IN  THIS  SECTION  AND  CONTAIN  THE FOLLOWING
 PROVISIONS, WHICH SHALL BE PRINTED IN AT LEAST  TWELVE-POINT  BOLD  TYPE
 AND SHALL NOT BE NEGATED OR SUPERSEDED BY ANY ADDITIONAL PROVISION:
   (A)  A TITLE, ACROSS THE TOP OF THE DOCUMENT IN AT LEAST SIXTEEN-POINT
 BOLD TYPE, OF "CONTRACT FOR AUTOMOBILE  BROKERING  SERVICES  FOR  A  NEW
 MOTOR VEHICLE".
   (B) A STATEMENT OF WHETHER A SOLICITED NEW MOTOR VEHICLE IS OR WILL BE
 MANUFACTURED  IN  ACCORDANCE WITH UNITED STATES SPECIFICATIONS AND IS OR
 WILL BE CERTIFIED BY THE MANUFACTURER AS SUCH IF THE NEW  MOTOR  VEHICLE
 IS  NOT  OR  WILL  NOT  BE MANUFACTURED IN ACCORDANCE WITH UNITED STATES
 SAFETY AND ENVIRONMENTAL SPECIFICATIONS, AND THE CONSUMER  HAS  RETAINED
 THE  AUTOMOBILE  BROKER  BUSINESS TO ARRANGE FOR THE MODIFICATION OF THE
 NEW MOTOR VEHICLE TO MEET  SUCH  SPECIFICATIONS,  THE  NAME  AND  STREET
 ADDRESS  OF THE MODIFICATION FACILITY AND A STATEMENT IN IMMEDIATE PROX-
 IMITY TO SUCH INFORMATION THAT THE AUTOMOBILE  BROKER  BUSINESS  ASSUMES
 FULL FINANCIAL RESPONSIBILITY THAT THE NEW MOTOR VEHICLE WILL BE PROPER-
 LY  MODIFIED TO MEET ALL UNITED STATES SAFETY AND ENVIRONMENTAL SPECIFI-
 CATIONS.
   (C) A STATEMENT THAT THE CONSUMER MAY CANCEL THE CONTRACT FOR  AUTOMO-
 BILE  BROKERING  SERVICES  FOR A NEW MOTOR VEHICLE FOR ANY REASON WITHIN
 THREE DAYS OF THE EXECUTION OF SUCH CONTRACT AND THAT THE  CONSUMER  HAS
 THE RIGHT TO A FULL REFUND WITHIN TEN BUSINESS DAYS FOLLOWING RECEIPT OF
 THE NOTICE OF CANCELLATION.
   (D)  A  STATEMENT  THAT,  IF THE REQUESTED NEW MOTOR VEHICLE CANNOT BE
 PROCURED BY THE AUTOMOBILE BROKER BUSINESS WITHIN THIRTY DAYS  FOLLOWING
 THE  DATE OF EXECUTION OF THE CONTRACT FOR AUTOMOBILE BROKERING SERVICES
 FOR A NEW MOTOR VEHICLE, THE  CONSUMER  HAS  THE  RIGHT  TO  CANCEL  THE
 CONTRACT AND TO RECEIVE A FULL REFUND WITHIN TEN BUSINESS DAYS FOLLOWING
 RECEIPT  OF  THE  REQUEST  FOR A REFUND, UNLESS THE DELAY IN DELIVERY IS
 ATTRIBUTABLE TO THE CONSUMER.
   (E) A STATEMENT THAT THE CONSUMER SHALL BE PROVIDED WITH THE  CONTENTS
 OF  EACH  BID  RECEIVED BY THE AUTOMOBILE BROKER BUSINESS IN RESPONSE TO
 ITS SOLICITATION ON BEHALF OF SUCH CONSUMER.
   (F) THE AMOUNT OF THE FEE TO BE PAID BY THE CONSUMER TO THE AUTOMOBILE
 BROKER BUSINESS FOR THE SERVICE OF ARRANGING, ASSISTING, FACILITATING OR
 EFFECTING THE PURCHASE OR LEASE OF A NEW MOTOR VEHICLE.
   (G) A STATEMENT THAT THE SINGLE FEE AUTHORIZED BY  SUCH  CONTRACT  FOR
 AUTOMOBILE  BROKERING  SERVICES  FOR A NEW MOTOR VEHICLE IS INCLUSIVE OF
 ALL CHARGES INCIDENT TO THE PURCHASING, ARRANGING, ASSISTING, FACILITAT-
 ING OR EFFECTING THE PURCHASE OR LEASE OF SUCH NEW MOTOR VEHICLE BY  THE
 AUTOMOBILE BROKER BUSINESS AS AGENT, BROKER, OR INTERMEDIARY AND THAT NO
 OTHER CHARGE OR EXPENSE WHATSOEVER SHALL BE TAKEN, RECEIVED, RESERVED OR
 CONTRACTED FOR BY THE AUTOMOBILE BROKER BUSINESS FOR SUCH SERVICES.
   4.  THE  CONTRACT  FOR  AUTOMOBILE  BROKERING SERVICES FOR A NEW MOTOR
 VEHICLE SHALL BE ACCOMPANIED BY A COMPLETED FORM IN DUPLICATE, CAPTIONED
 "NOTICE OF CANCELLATION" WHICH SHALL BE ATTACHED  TO  THE  CONTRACT  AND
 EASILY DETACHABLE, AND WHICH SHALL CONTAIN IN AT LEAST TWELVE-POINT TYPE
 THE FOLLOWING:
   "NOTICE OF CANCELLATION

 A. 1932--A                          5
 
   YOU  MAY  CANCEL THIS CONTRACT FOR AUTOMOBILE BROKERING SERVICES FOR A
 NEW MOTOR VEHICLE, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN THREE  DAYS
 FROM  THE  DATE  THAT A COPY OF AN EXECUTED CONTRACT IS RECEIVED BY YOU.
 YOU MAY ALSO CANCEL THIS CONTRACT, WITHOUT PENALTY OR OBLIGATION, IF THE
 AUTOMOBILE  BROKER BUSINESS DOES NOT PRODUCE A BID MEETING YOUR SPECIFI-
 CATIONS WITHIN THIRTY DAYS OF THE DATE OF EXECUTION OF THIS CONTRACT.
   TO CANCEL THIS CONTRACT, MAIL OR DELIVER A SIGNED AND  DATED  COPY  OF
 THIS CANCELLATION NOTICE, OR ANY OTHER WRITTEN NOTICE, TO (NAME OF AUTO-
 MOBILE  BROKER  BUSINESS) AT (ADDRESS OF AUTOMOBILE BROKER BUSINESS) NOT
 LATER THAN MIDNIGHT OF THE THIRD DAY FOLLOWING YOUR RECEIPT OF A  SIGNED
 CONTRACT.
   I HEREBY CANCEL THIS TRANSACTION.
   ________________________________  (SIGNATURE OF CONSUMER)
   _____________________  (DATE)"
   5. An automobile broker business shall deliver to the consumer or mail
 to  him  or  her  at the address shown on [the] ANY contract REQUIRED BY
 THIS SECTION , an executed copy thereof.
   [4. An] 6. IN ADDITION TO THE BROKERING SERVICES AGREEMENT REQUIRED BY
 SUBDIVISION ONE OF THIS SECTION, 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 business in  connection  with  a  trans-
 action 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.] NOTHING IN THIS SECTION SHALL
 BE  CONSTRUED  TO PERMIT THE DELIVERY OF AN EXECUTED RETAIL LEASE AGREE-
 MENT TO A NEW MOTOR VEHICLE BY  A  PERSON  OTHER  THAN  THE  PROSPECTIVE
 LESSEE.
   §  5.  Subdivision  1 of section 740-a of the general business law, as
 amended by chapter 477 of the laws  of  2017,  is  amended  to  read  as
 follows:
   1.  Automobile broker businesses shall obtain and continue in effect a
 surety bond in an amount of [one] TWO  hundred  FIFTY  thousand  dollars
 executed  by  a  surety  company  authorized to transact business in the
 state by the department of  financial  services  of  the  state  or  its
 successor.  The  bonds  shall be approved as to form by the secretary of
 state and shall  be  conditioned  on  the  automobile  broker  business'
 payment  of  all  valid  bank  drafts,  including  checks, drawn for the
 purchase of motor vehicles and  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.
   §  6. Section 741 of the general business law, as added by chapter 616
 of the laws of 1988, is amended to read as follows:
   § 741. Deceptive acts AND FRAUDS prohibited. 1. It is hereby  declared
 to  be  a deceptive trade practice and unlawful for an automobile broker
 business to misrepresent directly  or  indirectly  in  its  advertising,
 promotional materials, sales presentation, or in any manner:
   [1.]  (A)  The nature of the services to be performed AND THAT A THIRD
 PARTY WILL BE PAYING FOR ANY SUCH SERVICES;
   [2.] (B) The time within which the services will be performed;
   [3.] (C) The cost of the services to be performed; [and

 A. 1932--A                          6

   4.] (D) The ability of the automobile broker business to  perform  the
 services; AND
   (E)  THAT  THE  AUTOMOBILE  BROKER BUSINESS IS AFFILIATED WITH ANY NEW
 MOTOR  VEHICLE  MANUFACTURER,  DISTRIBUTOR,  DISTRIBUTOR  BRANCH  AND/OR
 FACTORY  BRANCH INCLUDING THE USE OF ANY TRADEMARKS OR COPYRIGHTED MATE-
 RIAL WITHOUT THE EXPRESS, WRITTEN CONSENT OF THE OWNER OF SUCH MATERIAL.
   2. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS TO REFUSE TO DISCLOSE ITS REGISTRATION NUMBER, ISSUED EITHER BY
 THE STATE OR A MUNICIPALITY, TO A MOTOR VEHICLE DEALER. FURTHERMORE,  IT
 SHALL  BE  A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER BUSI-
 NESS TO MAKE ANY MISREPRESENTATION TO A  MOTOR  VEHICLE  DEALER  OR  NEW
 MOTOR  VEHICLE  DEALER REGARDING THE ELIGIBILITY OF ANY CONSUMER FOR ANY
 DISCOUNTS, REDUCTIONS OR ANY BENEFIT  PROGRAMS  REGARDING  THE  SALE  OR
 LEASE OF A MOTOR VEHICLE.
   3. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS  TO ADVERTISE NEW MOTOR VEHICLES, THROUGH ANY PRINT, ELECTRONIC
 OR DIGITAL SIGNAL OR  MEDIUM,  WRITTEN  OR  VERBAL  STATEMENT  OR  WORD,
 DESIGN,  DEVICE,  SOUND OR ANY COMBINATION OF ANY SUCH METHOD OR MEDIUM,
 WITHOUT DISCLOSING THAT IT IS NOT A LICENSED MOTOR VEHICLE DEALER AND IS
 NOT AN AUTHORIZED SATELLITE LOCATION FOR ANY PARTICULAR  LICENSED  MOTOR
 VEHICLE DEALER.
   4. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS TO ADVERTISE THROUGH ANY PRINT, ELECTRONIC OR DIGITAL SIGNAL OR
 MEDIUM,  WRITTEN  OR  VERBAL STATEMENT OR WORD, DESIGN, DEVICE, SOUND OR
 ANY COMBINATION OF ANY SUCH METHOD OR MEDIUM, THAT WOULD LEAD A  REASON-
 ABLE  CONSUMER  TO  CONCLUDE  THAT  THE  AUTOMOBILE BROKER BUSINESS IS A
 LICENSED NEW MOTOR VEHICLE DEALER.
   5. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS TO MAINTAIN ANY WEBSITE WITHOUT INCLUDING A TEXT BOX  WITH  THE
 FOLLOWING  STATEMENT IN NO LESS THAN EIGHTEEN-POINT BOLDFACE TYPE ON THE
 SPLASH PAGE:  "(BROKER NAME) IS NOT A LICENSED NEW MOTOR VEHICLE  DEALER
 IN  THE  STATE  OF  NEW  YORK,  NOR IS IT AN AUTHORIZED AFFILIATE OF ANY
 LICENSED NEW MOTOR VEHICLE DEALER IN THE STATE OF NEW YORK".
   6. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS TO INCLUDE ANY PRICING OR FINANCING OFFERS OR PROMOTIONS IN ANY
 ADVERTISEMENT, INCLUDING ANY PRINT,  ELECTRONIC  OR  DIGITAL  SIGNAL  OR
 MEDIUM,  WRITTEN  OR  VERBAL STATEMENT OR WORD, DESIGN, DEVICE, SOUND OR
 ANY COMBINATION OF ANY SUCH METHOD OR MEDIUM.
   7. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS TO GAIN ACCESS TO OR USE, OR REPRESENT OR ADVERTISE THAT IT MAY
 ACCESS OR USE, A PORTAL, COMPUTER,  OR  INTERNET  ACCOUNT  OWNED  BY  OR
 RESERVED  FOR  A  NEW  MOTOR VEHICLE DEALER TO ACCESS OR USE ONE OR MORE
 FINANCE SOURCES THAT  PROVIDE  AUTOMOTIVE-RELATED  LOANS,  OR  PURCHASES
 RETAIL INSTALLMENT CONTRACTS OR LEASE CONTRACTS FOR MOTOR VEHICLES.
   § 7. Section 741-b of the general business law, as added by chapter 28
 of the laws of 2018, is amended to read as follows:
   § 741-b. [Disclosure]  DISCLOSURES  REQUIRED BY BROKERS. 1. An automo-
 bile broker business shall GENERATE AND provide a disclosure at the time
 such automobile broker business takes an order to search for a leased OR
 PURCHASED vehicle meeting the prospective BUYER OR  lessee's  specifica-
 tions. Such disclosure shall provide the amount of any fees, commissions
 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 PURCHASE OR lease transaction. If the amount of  any  such
 fees,  commissions or other valuable consideration the automobile broker

 A. 1932--A                          7
 
 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 PURCHASE OR lease trans-
 action[; and (b) whether the automobile broker business may  be  compen-
 sated  by  the  dealer,  lessor  or  any  other person or entity for any
 assistance in effecting such lease transaction]. NOTHING IN THIS  SUBDI-
 VISION SHALL BE CONSTRUED TO PERMIT THE PAYMENT OF ANY FEES, COMMISSIONS
 OR  OTHER VALUABLE CONSIDERATION TO AN AUTOMOBILE BROKER BUSINESS BY ANY
 MOTOR VEHICLE DEALER.
   2. AN AUTOMOBILE BROKER BUSINESS SHALL GENERATE AND PROVIDE  AN  ADDI-
 TIONAL  DISCLOSURE  TO  THE  CONSUMER AT THE TIME SUCH AUTOMOBILE BROKER
 BUSINESS TAKES AN ORDER TO  SEARCH  FOR  A  MOTOR  VEHICLE  MEETING  THE
 PROSPECTIVE BUYER OR LESSEE'S SPECIFICATIONS. SUCH ADDITIONAL DISCLOSURE
 SHALL STATE THE FOLLOWING:
   (A) THAT THE AUTOMOBILE BROKER BUSINESS SHALL MAKE A BONA FIDE ATTEMPT
 TO OBTAIN A BID, QUOTE OR OFFER FROM AT LEAST THREE UNAFFILIATED DEALERS
 ON BEHALF OF THE PROSPECTIVE BUYER OR LESSEE FOR A MOTOR VEHICLE MEETING
 THE PROSPECTIVE BUYER OR LESSEE'S SPECIFICATIONS, INCLUDING FROM THE NEW
 MOTOR  VEHICLE  DEALER  OF SUCH LINE-MAKE LOCATED CLOSEST TO THE HOME OR
 PLACE OF BUSINESS OF SUCH PROSPECTIVE BUYER FOR A CONSUMER THAT SEEKS  A
 NEW MOTOR VEHICLE;
   (B)  THAT THE AUTOMOBILE BROKER BUSINESS SHALL PROVIDE TO THE CONSUMER
 ALL CONTENTS OF EACH BID MADE BY A MOTOR VEHICLE DEALER IN  RESPONSE  TO
 THE SOLICITATION OF THE AUTOMOBILE BROKER BUSINESS; AND
   (C)  THAT  THE  AUTOMOBILE  BROKER  BUSINESS HAS A DUTY TO ACT FOR THE
 BENEFIT OF THE PROSPECTIVE BUYER OR LESSEE.
   3. EACH DISCLOSURE REQUIRED BY THIS SECTION TO BE MADE TO  A  CONSUMER
 SHALL BE ACKNOWLEDGED IN WRITING BY EACH CONSUMER.
   4. AT THE TIME AN AUTOMOBILE BROKER BUSINESS SOLICITS A BID FROM A NEW
 MOTOR  VEHICLE  DEALER  IN THE MANNER DESCRIBED IN SECTION SEVEN HUNDRED
 THIRTY-SEVEN-A OF THIS ARTICLE, SUCH BROKER SHALL PROVIDE  A  DISCLOSURE
 TO  EACH  SOLICITED DEALER AS TO THE PROVISIONS OF SECTION SEVEN HUNDRED
 THIRTY-NINE OF THIS ARTICLE.
   5. PRIOR TO THE EXECUTION OF ANY PURCHASE CONTRACT  OR  LEASE  FOR  AN
 AUTOMOBILE,  AN  AUTOMOBILE  BROKER BUSINESS SHALL PROVIDE EACH CONSUMER
 WITH ALL DISCLOSURES REQUIRED TO BE MADE BY A DEALER.
   § 8. The general business law is amended by adding a new section 741-c
 to read as follows:
   § 741-C. PRIVATE INFORMATION SECURITY. 1. AN AUTOMOBILE  BROKER  BUSI-
 NESS  SHALL  REPORT  ANNUALLY  TO  THE  DEPARTMENT OF MOTOR VEHICLES ITS
 COMPLIANCE WITH SECTIONS THREE  HUNDRED  NINETY-NINE-CC,  THREE  HUNDRED
 NINETY-NINE-DD,  THREE  HUNDRED  NINETY-NINE-DDD,  THREE HUNDRED NINETY-
 NINE-H, THREE HUNDRED NINETY-NINE-OO, THREE HUNDRED NINETY-NINE-P, THREE
 HUNDRED NINETY-NINE-PP, AND EIGHT HUNDRED NINETY-NINE-BB OF  THIS  CHAP-
 TER.  FOR THE PURPOSES OF SUBDIVISION TWO OF SECTION EIGHT HUNDRED NINE-
 TY-NINE-BB OF THIS CHAPTER, AN AUTOMOBILE BROKER BUSINESS SHALL  NOT  BE
 CONSIDERED  A SMALL BUSINESS AS THAT TERM IS DEFINED IN THAT SECTION AND
 SHALL INSTEAD BE SUBJECT TO REASONABLE SECURITY  REQUIREMENTS  THAT  ARE
 EQUIVALENT TO THOSE APPLICABLE TO NEW MOTOR VEHICLE DEALERS.
   2. IN ADDITION TO THE REQUIREMENTS OF SUBDIVISION ONE OF THIS SECTION,
 AN AUTOMOBILE BROKER BUSINESS SHALL:
   (A) KEEP AND MAINTAIN ALL CONSUMER RECORDS CONTAINING PRIVATE INFORMA-
 TION  IN  A SAFE PLACE THAT IS NOT ACCESSIBLE TO PERSONS NOT EMPLOYED BY
 THE AUTOMOBILE BROKER BUSINESS, INCLUDING BY KEEPING AND  MAINTAINING  A

 A. 1932--A                          8
 
 CLEAR AND PERMANENT PHYSICAL BARRIER FROM OTHER BUSINESSES THAT SHARE OR
 NEIGHBOR ITS PLACE OF BUSINESS;
   (B)  HAVE  A  MAILBOX  AT SUCH PLACE OF BUSINESS DEDICATED ONLY TO THE
 AUTOMOBILE BROKER BUSINESS; AND
   (C) HAVE A METHOD OF LOCKING SECURITY ITEMS, INCLUDING A LOCKING CABI-
 NET OR SAFE.
   3. NO TRANSACTION FOR THE PURCHASE OR LEASE OF  A  NEW  MOTOR  VEHICLE
 THAT  WAS  ARRANGED,  ASSISTED, FACILITATED OR EFFECTED BY AN AUTOMOBILE
 BROKER BUSINESS SHALL BE VALID UNLESS THE CONSUMER  PERSONALLY  DELIVERS
 AN EXECUTED PURCHASE CONTRACT OR LEASE, AND, WHERE APPLICABLE, FINANCING
 AGREEMENT,  TO THE PLACE OF BUSINESS OF THE DEALER FROM WHICH SUCH VEHI-
 CLE WILL BE PURCHASED OR LEASED AND SUCH DEALER VERIFIES THE IDENTITY OF
 SUCH CONSUMER.
   § 9. Section 743 of the general business law, as  amended  by  chapter
 372 of the laws of 2016, is amended to read as follows:
   § 743. Enforcement  [by].  1.  BY attorney general. In addition to the
 other remedies provided, whenever there shall be  a  violation  of  this
 article,  application may be made by the attorney general in the name of
 the people of the state of New York to a court or justice having  juris-
 diction  by a special proceeding to issue an injunction, and upon notice
 to the defendant of not less than five days, to enjoin and restrain  the
 continuance  of such violations; and if it shall appear to the satisfac-
 tion of the court or justice that the defendant has, in  fact,  violated
 this  article,  an  injunction  may  be issued by such court or justice,
 enjoining and restraining any further violation, without requiring proof
 that any person has, in fact, been injured or damaged  thereby.  In  any
 such  proceeding,  the court may make allowances to the attorney general
 as provided in paragraph six of subdivision (a) of section  eighty-three
 hundred  three  of the civil practice law and rules, and direct restitu-
 tion. Whenever the court shall determine that a violation of this  arti-
 cle  has  occurred,  the  court shall impose a civil penalty of not less
 than [one] FOUR thousand dollars and not more than [three] TEN  thousand
 dollars for each violation.  In connection with any such proposed appli-
 cation,  the  attorney  general  is  authorized to take proof and make a
 determination of the relevant facts and to issue subpoenas in accordance
 with the civil practice law and rules.
   2. BY LOCAL AUTHORITIES. (A) MUNICIPALITIES  MAY,  PURSUANT  TO  LOCAL
 LAW, ACT UPON THE BUSINESS ACTIVITY THAT IS THE SUBJECT OF THIS ARTICLE,
 PROVIDED  THAT  NO  LOCAL  GOVERNMENT  MAY  DIMINISH  THE PROTECTIONS OR
 REQUIREMENTS OF THIS ARTICLE OR PREVENT ENFORCEMENT OF ITS PROVISIONS BY
 APPROPRIATE STATE OFFICIALS.
   (B) THE PROVISIONS OF THIS ARTICLE MAY BE ENFORCED IN THE SAME  MANNER
 AS  SET  FORTH  IN  SUBDIVISION ONE OF THIS SECTION BY THE DIRECTOR OF A
 MUNICIPAL CONSUMER AFFAIRS OFFICE OR A BUSINESS INTEGRITY COMMISSION, OR
 BY THE TOWN ATTORNEY, CITY CORPORATION COUNSEL, OR OTHER LAWFULLY DESIG-
 NATED ENFORCEMENT OFFICER OF A MUNICIPALITY OR LOCAL GOVERNMENT, AND ALL
 MONIES COLLECTED THEREUNDER SHALL BE RETAINED BY  SUCH  MUNICIPALITY  OR
 LOCAL GOVERNMENT, PROVIDED THAT NO LOCAL GOVERNMENT MAY PREVENT ENFORCE-
 MENT OF ITS PROVISIONS BY APPROPRIATE STATE OFFICIALS.
   3.  BY  PRIVATE  PARTY.  ANY PERSONS THAT ARE OR MAY BE INJURED BY ANY
 VIOLATION OF THIS ARTICLE MAY BRING AN ACTION IN HIS  OR  HER  OWN  NAME
 AGAINST  AN  AUTOMOBILE  BROKER  BUSINESS TO ENJOIN SUCH UNLAWFUL ACT OR
 PRACTICE, AN ACTION TO RECOVER HIS OR HER DAMAGES AND STATUTORY  DAMAGES
 OF  NOT  LESS  THAN FOUR THOUSAND DOLLARS AND NOT MORE THAN TEN THOUSAND
 DOLLARS FOR EACH VIOLATION, OR BOTH SUCH ACTIONS. INJURY SHALL  INCLUDE,
 BUT  NOT  BE  LIMITED  TO,  LOST SALES ON ACCOUNT OF DECEPTIVE OR UNFAIR

 A. 1932--A                          9

 ADVERTISING AND DEPRIVING A NEW MOTOR VEHICLE DEALER LOCATED CLOSEST  TO
 A  LESSEE  OR PURCHASER THE OPPORTUNITY TO BID ON SUCH LEASE OR PURCHASE
 AS ENTITLED BY THIS ARTICLE. DAMAGES SHALL INCLUDE, BUT NOT  BE  LIMITED
 TO,  LOST  SALES AND THE VALUE OF INCENTIVE PAYMENTS, BONUSES, HOLDBACKS
 OR SIMILAR PAYMENTS THAT WOULD  HAVE  BEEN  REALIZED  HAD  A  LESSEE  OR
 PURCHASER  PURCHASED  OR  LEASED SUCH VEHICLE FROM THE NEW MOTOR VEHICLE
 DEALER IN CLOSEST PROXIMITY TO SUCH LESSEE  OR  PURCHASER  BUT  FOR  THE
 ACTIONS  OF A PERSON WHO KNOWINGLY AIDED THE VIOLATION OF THE PROVISIONS
 OF THIS ARTICLE. NOTHING IN THIS SECTION  SHALL  REQUIRE  A  FRANCHISOR,
 MANUFACTURER, OR DISTRIBUTOR TO GRANT A NEW MOTOR VEHICLE DEALER A BENE-
 FIT  UNDER AN INCENTIVE, BONUS, HOLDBACK OR SIMILAR PAYMENT THAT THE NEW
 MOTOR VEHICLE DEALER DID NOT EARN OR FOR WHICH  THE  NEW  MOTOR  VEHICLE
 DEALER DID NOT QUALIFY. SUCH ACTIONS MAY BE BROUGHT REGARDLESS OF WHETH-
 ER  OR NOT THE UNDERLYING VIOLATION IS CONSUMER-ORIENTED OR HAS A PUBLIC
 IMPACT. GIVEN THE REMEDIAL NATURE OF THIS SUBDIVISION, STANDING TO BRING
 AN ACTION UNDER THIS SUBDIVISION SHALL BE LIBERALLY CONSTRUED AND  SHALL
 BE AVAILABLE TO THE FULLEST EXTENT OTHERWISE PERMITTED BY LAW. THE COURT
 MAY,  IN  ITS  DISCRETION,  AWARD  TREBLE DAMAGES IF THE COURT FINDS THE
 DEFENDANT WILLFULLY OR KNOWINGLY VIOLATED THIS ARTICLE. THE COURT  SHALL
 AWARD REASONABLE ATTORNEY'S FEES AND COSTS TO A PREVAILING PLAINTIFF.
   §  10.  Paragraph a of subdivision 1 of section 415 of the vehicle and
 traffic law, as amended by chapter 554 of the laws of 2015,  is  amended
 to read as follows:
   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 OR LEASE 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.
 FOR  THE  PURPOSES  OF  THIS  SECTION,  "OFFERS FOR SALE OR LEASE" SHALL
 INCLUDE, BUT NOT BE LIMITED TO, THE ACT OF DRAWING THE  PUBLIC'S  ATTEN-
 TION  TO, OR THE PRESENTATION OR DISPLAY OF ANY MOTOR VEHICLE, INCLUDING
 THE POSTING OF IMAGES OF ANY SUCH VEHICLE,  TOGETHER  WITH  A  SUGGESTED
 RETAIL PRICE, LEASE COST OR FINANCING RATE FOR SUCH VEHICLE AND AN OFFER
 TO  PROVIDE,  THE PROVISION OF, OR A REPRESENTATION THAT SUCH PERSON MAY
 PROVIDE A SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE
 LEASE OF SUCH NEW MOTOR VEHICLE, EXCEPT THIS MEANING SHALL NOT APPLY  TO
 ANY  ACTIVITY  OF  A COOPERATIVE OR OTHER ADVERTISING PROGRAM OR FUND AS
 DESCRIBED IN ANY FRANCHISE, AS SUCH TERM IS DEFINED BY  SUBDIVISION  SIX
 OF  SECTION  FOUR  HUNDRED  SIXTY-TWO  OF  THIS TITLE, OR THE DISPLAY OF
 AGGREGATED INFORMATION AND IMAGES BY A NATIONAL SERVICE  THAT  OTHERWISE
 DOES  NOT  HAVE  CONTACT WITH CONSUMERS. 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 para-
 graph f of this subdivision and a "qualified dealer" as defined in para-
 graph g of this subdivision.
   § 11. Subdivision 3 of section 415 of the vehicle and traffic  law  is
 amended by adding a new paragraph d to read as follows:

 A. 1932--A                         10
 
   D. IT IS HEREBY DECLARED TO BE A FRAUDULENT PRACTICE, FOR THE PURPOSES
 OF  PARAGRAPH C OF SUBDIVISION NINE OF THIS SECTION, FOR A DEALER TO USE
 ANY  SUBSIDIARY  CORPORATION,  AFFILIATED  CORPORATION,  OR  ANY   OTHER
 CONTROLLED  CORPORATION, PARTNERSHIP, ASSOCIATION, BUSINESS OR PERSON TO
 ACCOMPLISH  WHAT  WOULD OTHERWISE BE UNLAWFUL CONDUCT UNDER THIS ARTICLE
 OR ARTICLE THIRTY-FIVE-B OF THE GENERAL BUSINESS LAW, INCLUDING REQUEST-
 ING THAT AN AUTOMOBILE BROKER BUSINESS REPRESENT SUCH DEALER IN GENERAT-
 ING A SALE OR LEASE OR MAKING PAYMENT TO, EITHER DIRECTLY OR INDIRECTLY,
 AN AUTOMOBILE BROKER BUSINESS.
   § 12. Subdivision 3-a and paragraph b-3 of subdivision  5  of  section
 415  of the vehicle and traffic law, as added by chapter 477 of the laws
 of 2017, are amended to read as follows:
   3-a. Automobile broker  business  registration.  A.  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 busi-
 ness 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 registra-
 tion submitted pursuant to subdivision five of this section. SUCH REGIS-
 TRATION SHALL BE EFFECTIVE FOR A PERIOD NOT EXCEEDING TWO YEARS. AT  THE
 DISCRETION OF THE COMMISSIONER A REGISTRATION MAY BE RENEWED FOR A PERI-
 OD  OF  UP  TO  TWO YEARS UPON APPLICATION THEREFOR, IN SUCH FORM AS THE
 COMMISSIONER MAY PRESCRIBE, AND A SHOWING OF PROOF  OF  SATISFACTION  OF
 THE  REQUIREMENTS  OF SECTION SEVEN HUNDRED FORTY-A OF THE GENERAL BUSI-
 NESS LAW, AND UPON PAYMENT OF THE FEE AS HEREIN PRESCRIBED.
   B. THE COMMISSIONER SHALL NOT ISSUE OR RENEW A CERTIFICATE  OF  REGIS-
 TRATION  AUTHORIZED BY THIS SUBDIVISION TO ANY DEALER, FRANCHISEE, FRAN-
 CHISOR, 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, EMPLOYEE OR CONTROLLED PERSON OR
 ENTITY THEREOF.
   C. AS A CONDITION OF ANY CERTIFICATE OF REGISTRATION ISSUED OR RENEWED
 PURSUANT  TO THIS SUBDIVISION, AN AUTOMOBILE BROKER BUSINESS SHALL HAVE,
 AND CONTINUOUSLY MAINTAIN, A PLACE OF BUSINESS IN THIS STATE  FOR  WHICH
 IT  SHALL  KEEP  AND  MAINTAIN  EVIDENCE  THAT  ALL NECESSARY APPROVALS,
 LICENSES AND/OR PERMITS HAVE BEEN  OBTAINED  FROM  ALL  LOCAL  GOVERNING
 BODIES  TO  OPERATE SUCH PLACE OF BUSINESS WITH CUSTOMER OR CLIENT TRAF-
 FIC. NO MORE THAN ONE AUTOMOBILE BROKER BUSINESS SHALL  OPERATE  AT  ANY
 SINGLE  LOCATION  AND NO AUTOMOBILE BROKER BUSINESS SHALL OPERATE AT THE
 SAME LOCATION AS A NEW MOTOR VEHICLE DEALER.
   D. EVERY REGISTERED AUTOMOBILE BROKER BUSINESS SHALL  PROMINENTLY  AND
 CONSPICUOUSLY  POST, IN SUCH A MANNER THAT IT IS LIKELY TO BE NOTICEABLE
 TO ANYONE ENTERING ITS PREMISES, ITS OFFICIAL  BUSINESS  CERTIFICATE  OF
 REGISTRATION AND A SIGN, WHICH SIGN SHALL CLEARLY STATE:
   "(NAME  OF REGISTERED AUTOMOBILE BROKER) IS NOT A FRANCHISED NEW MOTOR
 VEHICLE DEALER. WE ARE NOT AUTHORIZED OR APPROVED BY A  MANUFACTURER  OR
 DISTRIBUTOR  TO  SELL  A NEW MOTOR VEHICLE OR PERFORM RECALL OR ORIGINAL
 FACTORY WARRANTY WORK. IF YOU ORDER A SEARCH FOR  A  NEW  MOTOR  VEHICLE
 FROM  THIS  BROKER, WE MUST MAKE A BONA FIDE EFFORT TO SOLICIT BIDS FROM
 AT LEAST THREE UNAFFILIATED NEW MOTOR VEHICLE DEALERS FOR  A  NEW  MOTOR
 VEHICLE ON YOUR BEHALF, INCLUDING FROM YOUR LOCAL DEALER."
   E. AS A CONDITION OF ANY CERTIFICATE OF REGISTRATION ISSUED OR RENEWED
 PURSUANT  TO THIS SUBDIVISION, AND BEFORE PERFORMING ANY BROKER SERVICES
 RELATED TO A NEW MOTOR VEHICLE,  AN  AUTOMOBILE  BROKER  BUSINESS  SHALL
 ATTEST  IN WRITING TO EACH CONSUMER, THAT THE BROKER: (I) IS NOT A FRAN-
 CHISED NEW MOTOR VEHICLE DEALER; (II) IS NOT AUTHORIZED OR APPROVED BY A

 A. 1932--A                         11
 
 MANUFACTURER OR DISTRIBUTOR TO SELL  A  NEW  MOTOR  VEHICLE  OR  PERFORM
 RECALL  OR  ORIGINAL  FACTORY  WARRANTY  WORK; AND (III) THAT THE BROKER
 SHALL MAKE A BONA FIDE EFFORT TO SOLICIT BIDS FROM AT LEAST THREE  UNAF-
 FILIATED  NEW MOTOR VEHICLE DEALERS THAT SELL A NEW MOTOR VEHICLE OR ANY
 LINE OR MAKE DESIRED BY SUCH CONSUMER,  INCLUDING  FROM  THE  CONSUMER'S
 LOCAL DEALER.
   F. IT IS HEREBY DECLARED TO BE A FRAUDULENT PRACTICE, FOR THE PURPOSES
 OF  PARAGRAPH  C  OF SUBDIVISION NINE OF THIS SECTION, FOR AN AUTOMOBILE
 BROKER BUSINESS TO DRAW THE PUBLIC'S ATTENTION TO, OR PRESENT OR DISPLAY
 ANY NEW MOTOR VEHICLE, INCLUDING BY POSTING IMAGES OF ANY SUCH  VEHICLE,
 TOGETHER WITH A SUGGESTED RETAIL PRICE, LEASE COST OR FINANCING RATE FOR
 SUCH  VEHICLE  AND AN OFFER TO PROVIDE, THE PROVISION OF, OR A REPRESEN-
 TATION THAT SUCH PERSON MAY PROVIDE A SERVICE OF  ARRANGING,  ASSISTING,
 FACILITATING  OR EFFECTING THE PURCHASE OR LEASE OF SUCH NEW MOTOR VEHI-
 CLE.
   G. NOTHING IN THIS SUBDIVISION SHALL BE CONSTRUED TO PROHIBIT A  FRAN-
 CHISOR, MANUFACTURER, OR DISTRIBUTOR FROM SPONSORING ACTIVITIES INTENDED
 TO  GENERATE  LEADS TOWARD THE SALE OR LEASE OF A NEW MOTOR VEHICLE BY A
 FRANCHISEE.
   b-3. In the case of an application for registration as  an  automobile
 broker business, EITHER FOR INITIAL REGISTRATION OR RENEWAL THEREOF, 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, A COPY OF SUCH BOND CERTIFIED BY THE SECRETARY OF
 STATE OR ONE OF HIS OR HER AGENTS, AND A STATEMENT INDICATING ANY INTER-
 EST IN THE APPLICANT'S BUSINESS ENTITY BY A PERSON OR  ENTITY  DESCRIBED
 IN PARAGRAPH F OF SUBDIVISION ONE OR PARAGRAPH F OF SUBDIVISION SEVEN OF
 THIS  SECTION,  OR  ANY EMPLOYEE OR PERSON, CONTROLLING PERSON OR ENTITY
 THEREOF. If the bond is to be issued by an authorized agent of the sure-
 ty 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.
   § 13. Section 415 of the vehicle and traffic law is amended by  adding
 two new subdivisions 21 and 22 to read as follows:
   21. PENALTIES AND RIGHTS OF ACTION FOR FAILURE TO OBTAIN A CERTIFICATE
 OF  REGISTRATION AS AN AUTOMOBILE BROKER PURSUANT TO SUBDIVISION THREE-A
 AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION.  IN  ADDITION  TO
 ANY  OTHER  ACTION  AUTHORIZED  BY  LAW, THE COMMISSIONER, OR ANY PERSON
 DESIGNATED BY HIM OR HER, MAY PROCEED AGAINST A PARTY WHO  HAS  OPERATED
 AS  AN  AUTOMOBILE BROKER WITHOUT CERTIFICATE OF REGISTRATION IN ACCORD-
 ANCE WITH THE PROVISIONS OF THIS ARTICLE, IN ANY ONE OR MORE PROCEEDINGS
 AND BY ORDER TO ENJOIN SUCH UNLAWFUL ACTS OR PRACTICES AND REQUIRING THE
 OFFENDING PARTY TO PAY THE PEOPLE OF THIS STATE A PENALTY IN A  SUM  NOT
 LESS  THAN  FOUR THOUSAND DOLLARS AND NOT MORE THAN TEN THOUSAND DOLLARS
 FOR EACH  VIOLATION  FOUND  TO  HAVE  BEEN  COMMITTED.  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. FOR THE PURPOSES OF THIS SUBDIVISION, A "VIOLATION"  SHALL
 MEAN  EACH VEHICLE SOLD OR LEASED TO A CONSUMER FOR WHICH THE PARTY THAT
 FAILED TO OBTAIN CERTIFICATION AS AN AUTOMOBILE BROKER HAS SERVED AS  AN
 AUTOMOBILE BROKER.
   22. AUTOMOBILE BROKER RECORD REQUIREMENTS. A. AUTOMOBILE BROKERS SHALL
 MAINTAIN  A  PERMANENTLY BOUND BOOK IN WHICH SHALL BE RECORDED THE MAKE,
 MODEL, YEAR, COLOR AND VEHICLE IDENTIFICATION NUMBER OF  ALL  NEW  MOTOR
 VEHICLES  FOR  WHICH  SUCH  BROKER HAS PROVIDED A SERVICE OF PURCHASING,

 A. 1932--A                         12
 
 ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF
 SUCH AUTOMOBILE WITHIN ANY PRECEDING SIX-YEAR PERIOD. SUCH BROKER  SHALL
 ALSO RECORD IN SUCH BOOK THE NAME AND ADDRESS OF THE PURCHASER OR LESSOR
 OF  SUCH  AUTOMOBILE,  THE DATE OF SALE OR COMMENCEMENT OF LEASE OF SUCH
 AUTOMOBILE AND THE NAME AND ADDRESS OF THE DEALER FROM WHICH THE AUTOMO-
 BILE WAS PURCHASED OR LEASED.
   B. AUTOMOBILE BROKER BUSINESSES SHALL  MAINTAIN  A  PERMANENTLY  BOUND
 BOOK IN WHICH SHALL BE RECORDED ALL COMPLETED ORDERS TO SEARCH FOR A NEW
 MOTOR  VEHICLE  WITHIN ANY PRECEDING SIX-YEAR PERIOD.  SUCH BROKER SHALL
 ALSO RECORD IN SUCH BOOK THE DATE OF SUCH ORDER, THE NAME AND ADDRESS OF
 THE PERSON OR ENTITY ORDERING SUCH SEARCH, THE AUTOMOBILE SPECIFICATIONS
 PROVIDED BY SUCH PROSPECTIVE BUYER OR LESSEE AND THE NAME AND ADDRESS OF
 THE DEALERS SOLICITED FOR A QUOTE OR OFFER ON BEHALF OF SUCH PROSPECTIVE
 BUYER OR LESSEE.
   C. SUCH BOOKS SHALL BE OPEN FOR INSPECTION BY THE COMMISSIONER, OR HIS
 OR HER AGENT, DURING REASONABLE BUSINESS  HOURS.  THE  COMMISSIONER  MAY
 ESTABLISH BY RULE THE FORM OF ANY SUCH BOOK.
   D.  AS  AN ALTERNATIVE TO A BOUND BOOK, AN AUTOMOBILE BROKER MAY USE A
 COMPUTER AND SOFTWARE APPROVED BY THE DEPARTMENT TO MAINTAIN THE RECORDS
 REQUIRED TO BE KEPT BY THIS SECTION, PROVIDED ALL  INFORMATION  REQUIRED
 BY  PARAGRAPHS  A  AND  B  OF  THIS SECTION ARE RECORDED AND THE RECORDS
 CONFORM TO SUCH ADDITIONAL REQUIREMENTS AS DETERMINED BY THE COMMISSION-
 ER.
   § 14. Subdivision 5 of section 337 of the  personal  property  law  is
 amended  by  adding  a  new paragraph (m) and such section is amended by
 adding a new subdivision 4-a to read as follows:
   4-A. ANY CREDIT APPLICATION, OR OTHER REQUEST FOR A  DETERMINATION  OF
 CREDITWORTHINESS,  IN  FURTHERANCE OF A RETAIL LEASE AGREEMENT FOR A NEW
 MOTOR VEHICLE, THAT IS SUBMITTED TO A  LESSOR  OR  ANTICIPATED  ASSIGNEE
 THAT  IS A MANUFACTURER, AS SUCH TERM IS DEFINED IN SECTION FOUR HUNDRED
 FIFTEEN OF THE VEHICLE AND TRAFFIC LAW, A PERSON UNDER CONTRACT  WITH  A
 MANUFACTURER  TO  SERVE  AS HOLDER, OR A CAPTIVE FINANCE SOURCE, AS SUCH
 TERM IS DEFINED BY SUBDIVISION SIXTEEN OF SECTION FOUR HUNDRED SIXTY-TWO
 OF THE VEHICLE AND TRAFFIC LAW, SHALL INCLUDE  THE  NAME,  ADDRESS,  AND
 DEPARTMENT  OF  MOTOR  VEHICLES  REGISTRATION  NUMBER  OF THE AUTOMOBILE
 BROKER BUSINESS THAT  PROVIDED  THE  SERVICE  OF  ARRANGING,  ASSISTING,
 FACILITATING  OR  EFFECTING SUCH AGREEMENT AS AGENT, BROKER, OR INTERME-
 DIARY FOR SUCH RETAIL LESSEE, AND THE AMOUNT OF  THE  FEE  PAID  BY  THE
 CONSUMER  TO  THE  AUTOMOBILE  BROKER  BUSINESS, AS SUCH TERM IS USED IN
 ARTICLE THIRTY-FIVE-B OF THE GENERAL BUSINESS LAW, FOR  THE  SERVICE  OF
 ARRANGING,  ASSISTING,  FACILITATING  OR EFFECTING THE LEASE OF SUCH NEW
 MOTOR VEHICLE.
   (M) IN THE CASE OF A RETAIL LEASE AGREEMENT FOR A NEW  MOTOR  VEHICLE,
 AS  SUCH  TERM  IS DEFINED IN SUBDIVISION ELEVEN OF SECTION FOUR HUNDRED
 SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW, WHERE  THE  LESSOR  OR  ANTIC-
 IPATED  ASSIGNEE  IS A MANUFACTURER, AS SUCH TERM IS DEFINED IN SUBDIVI-
 SION NINE OF SECTION FOUR HUNDRED SIXTY-TWO OF THE VEHICLE  AND  TRAFFIC
 LAW,  A  PERSON  UNDER CONTRACT WITH THE MANUFACTURER OF SUCH LEASED NEW
 MOTOR VEHICLE TO SERVE AS HOLDER, OR A CAPTIVE FINANCE SOURCE,  AS  SUCH
 TERM IS DEFINED BY SUBDIVISION SIXTEEN OF SECTION FOUR HUNDRED SIXTY-TWO
 OF  THE  VEHICLE  AND  TRAFFIC LAW, THE NAME, ADDRESS, AND DEPARTMENT OF
 MOTOR VEHICLES REGISTRATION NUMBER OF  THE  AUTOMOBILE  BROKER  BUSINESS
 THAT  PROVIDED  THE  SERVICE  OF  ARRANGING,  ASSISTING, FACILITATING OR
 EFFECTING SUCH AGREEMENT AS AGENT,  BROKER,  OR  INTERMEDIARY  FOR  SUCH
 RETAIL  LESSEE,  AND  THE  AMOUNT OF THE FEE PAID BY THE CONSUMER TO THE
 AUTOMOBILE  BROKER  BUSINESS,  AS  SUCH  TERM   IS   USED   IN   ARTICLE

 A. 1932--A                         13
 
 THIRTY-FIVE-B OF THE GENERAL BUSINESS LAW, FOR THE SERVICE OF ARRANGING,
 ASSISTING,  FACILITATING  OR EFFECTING THE LEASE OF SUCH NEW MOTOR VEHI-
 CLE.
   §  15.  Severability. If any provision of this act, or any application
 of any provision of this act, is held to  be  invalid,  that  shall  not
 affect the validity or effectiveness of any other provision of this act,
 or  of  any other application of any provision of this act, which can be
 given effect without that provision or application; and to that end, the
 provisions and applications of this act are severable.
   § 16. This act shall take effect immediately; provided that all  auto-
 mobile  brokers  registered on the effective date of this act shall have
 ninety days to come into compliance with the provisions of this act.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1932--B
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2021
                                ___________
 
 Introduced  by M. of A. CARROLL, ABBATE, STIRPE, REYES, TAYLOR, CYMBROW-
   ITZ, DICKENS, ENGLEBRIGHT, D. ROSENTHAL, GALEF, GOTTFRIED,  DeSTEFANO,
   RAMOS,  MIKULIN,  SAYEGH,  SMITH,  WILLIAMS,  COOK,  ABINANTI,  QUART,
   SEAWRIGHT, REILLY, B. MILLER, ROZIC, FERNANDEZ, EPSTEIN, CRUZ,  STECK,
   PHEFFER AMATO,  PICHARDO,  RA,  BENEDETTO,  BYRNE,  JACOBSON, HYNDMAN,
   PERRY, THIELE, SOLAGES, LAVINE, STERN,  GRIFFIN,  JONES,  BUTTENSCHON,
   BRAUNSTEIN,  FALL,  FRONTUS,  PAULIN,  L. ROSENTHAL,  WALLACE,  DILAN,
   AUBRY, JEAN-PIERRE, DARLING, WALKER, ANDERSON, JACKSON --  Multi-Spon-
   sored  by  -- M. of A.  DE LA ROSA, FITZPATRICK, HEVESI, SIMON -- read
   once and referred to the Committee on Consumer Affairs and  Protection
   --  committee  discharged,  bill amended, ordered reprinted as amended
   and recommitted to said committee -- again reported from said  commit-
   tee  with  amendments, ordered reprinted as amended and recommitted to
   said committee
 
 AN ACT to amend the general business law and  the  vehicle  and  traffic
   law, in relation to designating new automotive broker businesses
 
   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  chapter  28  of the laws of 2018, 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 NEW MOTOR VEHICLE dealer OR QUALIFIED DEALER pursuant to
 article sixteen of the vehicle and traffic law,  ANY  PERSON  REGISTERED
 UNDER  SECTION  FOUR  HUNDRED  FIFTEEN-A OF THE VEHICLE AND TRAFFIC LAW,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05349-05-1

 A. 1932--B                          2
 
 ONLY WHEN OPERATING UNDER ACTIVITY  COVERED  BY  SUCH  REGISTRATION,  AN
 AUTOMOBILE  AUCTIONEER,  ONLY  WHEN OPERATING IN THE MANNER DESCRIBED IN
 SECTION TWENTY-THREE OF THIS CHAPTER, nor any bona fide  employee  of  a
 registered NEW MOTOR VEHICLE DEALER OR QUALIFIED dealer while acting for
 such  NEW  MOTOR  VEHICLE  DEALER OR QUALIFIED 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,  any  national  service which aggregates information for
 consumers, but does not otherwise have contact with consumers, [or]  any
 motor  vehicle  franchisor,  manufacturer,  or  distributor, DISTRIBUTOR
 BRANCH OR FACTORY BRANCH registered under article sixteen of the vehicle
 and traffic law.
   § 2. Section 736-a of the general business law, as  added  by  chapter
 477 of the laws of 2017, is amended to read as follows:
   § 736-a. Registration required. 1. (A) No person shall engage in busi-
 ness  as  an  automobile  broker  business,  as defined in section seven
 hundred thirty-six of this article, without first having been  issued  a
 certificate  of  registration for an automobile broker business pursuant
 to paragraph c of subdivision seven of section four hundred  fifteen  of
 the  vehicle and traffic law. A CERTIFICATE OF REGISTRATION FOR AN AUTO-
 MOBILE BROKER BUSINESS SHALL BE VALID FOR A PERIOD OF TWO YEARS.
   (B) NO AUTOMOBILE BROKER BUSINESS SHALL REPRESENT  OR  ACCEPT  PAYMENT
 FROM,  EITHER  DIRECTLY OR INDIRECTLY, A FRANCHISEE, DEALER, FRANCHISOR,
 MANUFACTURER, DISTRIBUTOR, DISTRIBUTOR BRANCH AND/OR FACTORY BRANCH,  AS
 SUCH TERMS ARE DEFINED IN SECTIONS FOUR HUNDRED FIFTEEN AND FOUR HUNDRED
 SIXTY-TWO OF THE VEHICLE AND TRAFFIC LAW.
   (C) NO AUTOMOBILE BROKER BUSINESS SHALL PERFORM ANY SERVICES INVOLVING
 THE  PURCHASING,  ARRANGING,  ASSISTING,  FACILITATING  OR EFFECTING THE
 PURCHASE OR LEASE OF AN AUTOMOBILE AS AGENT, BROKER, OR INTERMEDIARY FOR
 A CONSUMER, UNLESS DONE PURSUANT TO A CONTRACT THAT  COMPLIES  WITH  THE
 PROVISIONS OF SECTION SEVEN HUNDRED THIRTY-EIGHT OF THIS ARTICLE.
   2.  A  certificate  of  registration for an automobile broker business
 shall not permit the registrant to display for sale or lease any new  or
 used  motor vehicles without registration as a dealer under section four
 hundred fifteen of the vehicle and traffic law.
   3. ANY PERSON THAT SELLS OR LEASES FIVE OR MORE VEHICLES IN A CALENDAR
 YEAR TO OR THROUGH ONE OR  MORE  AUTOMOBILE  BROKER  BUSINESS  SHALL  BE
 DEEMED TO BE DEALING IN MOTOR VEHICLES AS THAT TERM IS USED IN PARAGRAPH
 A  OF SUBDIVISION ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE AND
 TRAFFIC LAW.
   4. THE COMMISSIONER OF MOTOR VEHICLES  SHALL  ADOPT  RULES  AND  REGU-
 LATIONS  NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS SECTION, INCLUD-
 ING REGULATIONS THAT REQUIRE THE DISCLOSURE OF THE  NAME,  ADDRESS,  AND
 REGISTRATION  NUMBER  OF AN AUTOMOBILE BROKER BUSINESS THAT PROVIDED THE
 SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE  PURCHASE
 OR  LEASE  OF ANY NEW MOTOR VEHICLE, AND THE FEE COLLECTED BY THE BROKER
 FROM THE CONSUMER FOR PROVIDING SUCH SERVICE. SUCH RULES AND REGULATIONS
 SHALL REQUIRE THAT SUCH INFORMATION OF THE  AUTOMOBILE  BROKER  BUSINESS
 AND  ITS  FEE  FOR  SERVICE  BE PRINTED ON ANY INVOICE, BILL OF SALE, OR
 BUYER'S ORDER, AND ON ANY APPLICATION FOR REGISTRATION OR TITLE  SUBMIT-
 TED  BY  ANY DEALER TO THE DEPARTMENT OF MOTOR VEHICLES ON BEHALF OF THE
 CONSUMER RELATED TO SUCH PURCHASED OR LEASED MOTOR VEHICLE.
   § 3. The general business law is amended by adding a new section 737-a
 to read as follows:
   § 737-A. BONA FIDE BID SOLICITING  REQUIRED.  1.  ON  BEHALF  OF  EACH
 CONSUMER  EXECUTING  A  CONTRACT  THAT  CONFORMS  TO THE REQUIREMENTS OF

 A. 1932--B                          3
 
 SUBDIVISION THREE OF SECTION SEVEN HUNDRED THIRTY-EIGHT OF THIS ARTICLE,
 AN AUTOMOBILE BROKER BUSINESS SHALL SOLICIT A BID,  FROM  AT  LEAST  NEW
 MOTOR  VEHICLE  DEALERS OF THE SAME LINE-MAKE, THAT MEETS THE SPECIFICA-
 TIONS  OF SUCH PROSPECTIVE BUYER OR LESSEE, INCLUDING FROM THE NEW MOTOR
 VEHICLE DEALER LOCATED IN CLOSEST PROXIMITY TO THE  HOME  ADDRESS  OF  A
 PROSPECTIVE BUYER OR LESSEE OF A NEW MOTOR VEHICLE OR, IN THE CASE OF AN
 ENTITY,  THE PLACE OF DOING BUSINESS OF SUCH PROSPECTIVE BUYER OR LESSEE
 OF A NEW MOTOR VEHICLE.  WHENEVER  AN  AUTOMOBILE  BROKER  BUSINESS  MAY
 CHOOSE  BID  SPECIFICATIONS  ON  BEHALF  OF  A CONSUMER, SUCH AUTOMOBILE
 BROKER BUSINESS SHALL SOLICIT A BID MATCHING SUCH SPECIFICATIONS FROM AT
 LEAST THREE NEW MOTOR VEHICLE DEALERS OF THE SAME  LINE-MAKE,  INCLUDING
 FROM  THE  NEW  MOTOR VEHICLE DEALER LOCATED IN CLOSEST PROXIMITY TO THE
 HOME ADDRESS OF A PROSPECTIVE BUYER OR LESSEE OF A NEW MOTOR VEHICLE OR,
 IN THE CASE OF AN ENTITY, THE PLACE OF DOING BUSINESS OF  SUCH  PROSPEC-
 TIVE BUYER OR LESSEE OF A NEW MOTOR VEHICLE.
   2.  AT  A  MINIMUM,  AN AUTOMOBILE BROKER BUSINESS THAT SOLICITS A BID
 PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL REQUEST THE  FOLLOWING
 INFORMATION AS PART OF ANY SOLICITATION TO A NEW MOTOR VEHICLE DEALER:
   (A) PRICE OR LEASE COSTS;
   (B) DOWN OR SIMILAR PAYMENT;
   (C) NUMBER OF PAYMENTS;
   (D) AMOUNT OF INSTALLMENT OR MONTHLY PAYMENTS;
   (E)  MAKE, MODEL, YEAR OF PRODUCTION, AND COLOR OF ANY AVAILABLE MOTOR
 VEHICLE;
   (F) WHETHER THE MOTOR VEHICLE HAS ACCESSORIES  SPECIFICALLY  REQUESTED
 BY THE CONSUMER;
   (G) FEES;
   (H) WHERE APPLICABLE, FINANCE CHARGES AND/OR ANNUAL PERCENTAGE RATE;
   (I) ESTIMATED DELIVERY DATE OF THE AUTOMOBILE;
   (J) STATEMENT OF WHETHER OR NOT THE MANUFACTURER'S WARRANTY ACCOMPANY-
 ING THE MOTOR VEHICLE IS THE SAME WARRANTY AS THAT FURNISHED TO PURCHAS-
 ERS OF THE SAME MOTOR VEHICLE BY AN AUTHORIZED DEALER; AND
   (K) THE IDENTITY OF THE NEW MOTOR VEHICLE DEALER OFFERING A BID.
   3.  THE  CONTENTS  OF  EACH  BID  BY A MOTOR VEHICLE DEALER, SOLICITED
 PURSUANT TO SUBDIVISION ONE OF THIS SECTION, SHALL BE PROVIDED  TO  EACH
 CONSUMER  ON WHOSE BEHALF SUCH BID HAS BEEN SOLICITED, REGARDLESS OF THE
 PARTICULARS OR CONTENT OF ANY SUCH BID.
   4. THE COMMISSIONER OF MOTOR VEHICLES  SHALL  ADOPT  RULES  AND  REGU-
 LATIONS NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS SECTION.
   §  4.  The  opening  paragraph  and paragraph (e) of subdivision 1 and
 subdivisions 3 and 4 of section 738 of the  general  business  law,  the
 opening  paragraph  and  paragraph  (e)  of subdivision 1 as amended and
 subdivision 4 as added by chapter 28 of the laws of 2018 and subdivision
 3 as amended by chapter 477 of the laws of 2017, are amended to read  as
 follows:
   Every  contract  between  a consumer and an automobile broker business
 for the purchase of [an automobile] A MOTOR VEHICLE, OTHER  THAN  A  NEW
 MOTOR  VEHICLE,  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:
   (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, as  well  as  all
 fees,  commissions  or other valuable [considerations paid by an automo-

 A. 1932--B                          4

 bile dealer] CONSIDERATION OWED BY THE CONSUMER to the automobile broker
 business for selling, arranging, assisting or effecting the sale  of  an
 automobile  as  agent,  broker, or intermediary between the consumer and
 the automobile dealer.
   3. EVERY CONTRACT BETWEEN A CONSUMER AND AN AUTOMOBILE BROKER BUSINESS
 FOR  THE  SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE
 PURCHASE OR LEASE OF A NEW MOTOR VEHICLE SHALL BE IN WRITING,  SHALL  BE
 DATED,  SHALL  CONTAIN THE STREET ADDRESS OF THE AUTOMOBILE BROKER BUSI-
 NESS AND THE CONSUMER, AND SHALL BE SIGNED BY THE CONSUMER  AND  BY  THE
 AUTOMOBILE  BROKER  BUSINESS.  EVERY SUCH CONTRACT SHALL COMPLY WITH THE
 REQUIREMENTS SET  FORTH  IN  THIS  SECTION  AND  CONTAIN  THE  FOLLOWING
 PROVISIONS,  WHICH  SHALL  BE PRINTED IN AT LEAST TWELVE-POINT BOLD TYPE
 AND SHALL NOT BE NEGATED OR SUPERSEDED BY ANY ADDITIONAL PROVISION:
   (A) A TITLE, ACROSS THE TOP OF THE DOCUMENT IN AT LEAST  SIXTEEN-POINT
 BOLD  TYPE,  OF  "CONTRACT  FOR  AUTOMOBILE BROKERING SERVICES FOR A NEW
 MOTOR VEHICLE".
   (B) A STATEMENT OF WHETHER A SOLICITED NEW MOTOR VEHICLE IS OR WILL BE
 MANUFACTURED IN ACCORDANCE WITH UNITED STATES SPECIFICATIONS AND  IS  OR
 WILL  BE  CERTIFIED BY THE MANUFACTURER AS SUCH IF THE NEW MOTOR VEHICLE
 IS NOT OR WILL NOT BE MANUFACTURED  IN  ACCORDANCE  WITH  UNITED  STATES
 SAFETY  AND  ENVIRONMENTAL SPECIFICATIONS, AND THE CONSUMER HAS RETAINED
 THE AUTOMOBILE BROKER BUSINESS TO ARRANGE FOR THE  MODIFICATION  OF  THE
 NEW  MOTOR  VEHICLE  TO  MEET  SUCH  SPECIFICATIONS, THE NAME AND STREET
 ADDRESS OF THE MODIFICATION FACILITY AND A STATEMENT IN IMMEDIATE  PROX-
 IMITY  TO  SUCH  INFORMATION THAT THE AUTOMOBILE BROKER BUSINESS ASSUMES
 FULL FINANCIAL RESPONSIBILITY THAT THE NEW MOTOR VEHICLE WILL BE PROPER-
 LY MODIFIED TO MEET ALL UNITED STATES SAFETY AND ENVIRONMENTAL  SPECIFI-
 CATIONS.
   (C)  A STATEMENT THAT THE CONSUMER MAY CANCEL THE CONTRACT FOR AUTOMO-
 BILE BROKERING SERVICES FOR A NEW MOTOR VEHICLE FOR  ANY  REASON  WITHIN
 THREE  DAYS  OF THE EXECUTION OF SUCH CONTRACT AND THAT THE CONSUMER HAS
 THE RIGHT TO A FULL REFUND WITHIN TEN BUSINESS DAYS FOLLOWING RECEIPT OF
 THE NOTICE OF CANCELLATION.
   (D) A STATEMENT THAT, IF THE REQUESTED NEW  MOTOR  VEHICLE  CANNOT  BE
 PROCURED  BY THE AUTOMOBILE BROKER BUSINESS WITHIN THIRTY DAYS FOLLOWING
 THE DATE OF EXECUTION OF THE CONTRACT FOR AUTOMOBILE BROKERING  SERVICES
 FOR  A  NEW  MOTOR  VEHICLE,  THE  CONSUMER  HAS THE RIGHT TO CANCEL THE
 CONTRACT AND TO RECEIVE A FULL REFUND WITHIN TEN BUSINESS DAYS FOLLOWING
 RECEIPT OF THE REQUEST FOR A REFUND, UNLESS THE  DELAY  IN  DELIVERY  IS
 ATTRIBUTABLE TO THE CONSUMER.
   (E)  A STATEMENT THAT THE CONSUMER SHALL BE PROVIDED WITH THE CONTENTS
 OF EACH BID RECEIVED BY THE AUTOMOBILE BROKER BUSINESS  IN  RESPONSE  TO
 ITS SOLICITATION ON BEHALF OF SUCH CONSUMER.
   (F) THE AMOUNT OF THE FEE TO BE PAID BY THE CONSUMER TO THE AUTOMOBILE
 BROKER BUSINESS FOR THE SERVICE OF ARRANGING, ASSISTING, FACILITATING OR
 EFFECTING THE PURCHASE OR LEASE OF A NEW MOTOR VEHICLE.
   (G)  A  STATEMENT  THAT THE SINGLE FEE AUTHORIZED BY SUCH CONTRACT FOR
 AUTOMOBILE BROKERING SERVICES FOR A NEW MOTOR VEHICLE  IS  INCLUSIVE  OF
 ALL CHARGES INCIDENT TO THE PURCHASING, ARRANGING, ASSISTING, FACILITAT-
 ING  OR EFFECTING THE PURCHASE OR LEASE OF SUCH NEW MOTOR VEHICLE BY THE
 AUTOMOBILE BROKER BUSINESS AS AGENT, BROKER, OR INTERMEDIARY AND THAT NO
 OTHER CHARGE OR EXPENSE WHATSOEVER SHALL BE TAKEN, RECEIVED, RESERVED OR
 CONTRACTED FOR BY THE AUTOMOBILE BROKER BUSINESS FOR SUCH SERVICES.
   4. THE CONTRACT FOR AUTOMOBILE BROKERING  SERVICES  FOR  A  NEW  MOTOR
 VEHICLE SHALL BE ACCOMPANIED BY A COMPLETED FORM IN DUPLICATE, CAPTIONED
 "NOTICE  OF  CANCELLATION"  WHICH  SHALL BE ATTACHED TO THE CONTRACT AND

 A. 1932--B                          5
 
 EASILY DETACHABLE, AND WHICH SHALL CONTAIN IN AT LEAST TWELVE-POINT TYPE
 THE FOLLOWING:
   "NOTICE OF CANCELLATION
   YOU  MAY  CANCEL THIS CONTRACT FOR AUTOMOBILE BROKERING SERVICES FOR A
 NEW MOTOR VEHICLE, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN THREE  DAYS
 FROM  THE  DATE  THAT A COPY OF AN EXECUTED CONTRACT IS RECEIVED BY YOU.
 YOU MAY ALSO CANCEL THIS CONTRACT, WITHOUT PENALTY OR OBLIGATION, IF THE
 AUTOMOBILE BROKER BUSINESS DOES NOT PRODUCE A BID MEETING YOUR  SPECIFI-
 CATIONS WITHIN THIRTY DAYS OF THE DATE OF EXECUTION OF THIS CONTRACT.
   TO  CANCEL  THIS  CONTRACT, MAIL OR DELIVER A SIGNED AND DATED COPY OF
 THIS CANCELLATION NOTICE, OR ANY OTHER WRITTEN NOTICE, TO (NAME OF AUTO-
 MOBILE BROKER BUSINESS) AT (ADDRESS OF AUTOMOBILE BROKER  BUSINESS)  NOT
 LATER  THAN MIDNIGHT OF THE THIRD DAY FOLLOWING YOUR RECEIPT OF A SIGNED
 CONTRACT.
   I HEREBY CANCEL THIS TRANSACTION.
   ________________________________  (SIGNATURE OF CONSUMER)
   _____________________  (DATE)"
   5. An automobile broker business shall deliver to the consumer or mail
 to him or her at the address shown on [the]  ANY  contract  REQUIRED  BY
 THIS SECTION, an executed copy thereof.
   [4. An] 6. IN ADDITION TO THE BROKERING SERVICES AGREEMENT REQUIRED BY
 SUBDIVISION  ONE  OF  THIS SECTION, 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 business in connection with a trans-
 action 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.] NOTHING IN THIS SECTION SHALL
 BE CONSTRUED TO PERMIT THE DELIVERY OF AN EXECUTED RETAIL  LEASE  AGREE-
 MENT  TO  A  NEW  MOTOR  VEHICLE  BY A PERSON OTHER THAN THE PROSPECTIVE
 LESSEE.
   § 5. Subdivision 1 of section 740-a of the general  business  law,  as
 amended  by  chapter  477  of  the  laws  of 2017, is amended to read as
 follows:
   1. Automobile broker businesses shall obtain and continue in effect  a
 surety  bond  in  an  amount of [one] TWO hundred FIFTY thousand dollars
 executed by a surety company authorized  to  transact  business  in  the
 state  by  the  department  of  financial  services  of the state or its
 successor. The bonds shall be approved as to form by  the  secretary  of
 state  and  shall  be  conditioned  on  the  automobile broker business'
 payment of all valid  bank  drafts,  including  checks,  drawn  for  the
 purchase  of  motor  vehicles  and  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.
   § 6. Section 741 of the general business law, as added by chapter  616
 of the laws of 1988, is amended to read as follows:
   § 741. Deceptive  acts AND FRAUDS prohibited. 1. It is hereby declared
 to be a deceptive trade practice and unlawful for an  automobile  broker
 business  to  misrepresent  directly  or  indirectly in its advertising,
 promotional materials, sales presentation, or in any manner:

 A. 1932--B                          6
 
   [1.] (A) The nature of the services to be performed AND THAT  A  THIRD
 PARTY WILL BE PAYING FOR ANY SUCH SERVICES;
   [2.] (B) The time within which the services will be performed;
   [3.] (C) The cost of the services to be performed; [and
   4.]  (D)  The ability of the automobile broker business to perform the
 services; AND
   (E) THAT THE AUTOMOBILE BROKER BUSINESS IS  AFFILIATED  WITH  ANY  NEW
 MOTOR  VEHICLE  MANUFACTURER,  DISTRIBUTOR,  DISTRIBUTOR  BRANCH  AND/OR
 FACTORY BRANCH INCLUDING THE USE OF ANY TRADEMARKS OR COPYRIGHTED  MATE-
 RIAL WITHOUT THE EXPRESS, WRITTEN CONSENT OF THE OWNER OF SUCH MATERIAL.
   2. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS TO REFUSE TO DISCLOSE ITS REGISTRATION NUMBER, ISSUED EITHER BY
 THE  STATE OR A MUNICIPALITY, TO A MOTOR VEHICLE DEALER. FURTHERMORE, IT
 SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE  BROKER  BUSI-
 NESS  TO  MAKE  ANY  MISREPRESENTATION  TO A MOTOR VEHICLE DEALER OR NEW
 MOTOR VEHICLE DEALER REGARDING THE ELIGIBILITY OF ANY CONSUMER  FOR  ANY
 DISCOUNTS,  REDUCTIONS  OR  ANY  BENEFIT  PROGRAMS REGARDING THE SALE OR
 LEASE OF A MOTOR VEHICLE.
   3. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS TO ADVERTISE NEW MOTOR VEHICLES, THROUGH ANY PRINT,  ELECTRONIC
 OR  DIGITAL  SIGNAL  OR  MEDIUM,  WRITTEN  OR  VERBAL STATEMENT OR WORD,
 DESIGN, DEVICE, SOUND OR ANY COMBINATION OF ANY SUCH METHOD  OR  MEDIUM,
 WITHOUT DISCLOSING THAT IT IS NOT A LICENSED MOTOR VEHICLE DEALER AND IS
 NOT  AN  AUTHORIZED SATELLITE LOCATION FOR ANY PARTICULAR LICENSED MOTOR
 VEHICLE DEALER.
   4. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS TO ADVERTISE THROUGH ANY PRINT, ELECTRONIC OR DIGITAL SIGNAL OR
 MEDIUM, WRITTEN OR VERBAL STATEMENT OR WORD, DESIGN,  DEVICE,  SOUND  OR
 ANY  COMBINATION OF ANY SUCH METHOD OR MEDIUM, THAT WOULD LEAD A REASON-
 ABLE CONSUMER TO CONCLUDE THAT  THE  AUTOMOBILE  BROKER  BUSINESS  IS  A
 LICENSED NEW MOTOR VEHICLE DEALER.
   5. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS  TO  MAINTAIN ANY WEBSITE WITHOUT INCLUDING A TEXT BOX WITH THE
 FOLLOWING STATEMENT IN NO LESS THAN EIGHTEEN-POINT BOLDFACE TYPE ON  THE
 SPLASH  PAGE:  "(BROKER NAME) IS NOT A LICENSED NEW MOTOR VEHICLE DEALER
 IN THE STATE OF NEW YORK, NOR IS  IT  AN  AUTHORIZED  AFFILIATE  OF  ANY
 LICENSED NEW MOTOR VEHICLE DEALER IN THE STATE OF NEW YORK".
   6. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS TO INCLUDE ANY PRICING OR FINANCING OFFERS OR PROMOTIONS IN ANY
 ADVERTISEMENT,  INCLUDING  ANY  PRINT,  ELECTRONIC  OR DIGITAL SIGNAL OR
 MEDIUM, WRITTEN OR VERBAL STATEMENT OR WORD, DESIGN,  DEVICE,  SOUND  OR
 ANY COMBINATION OF ANY SUCH METHOD OR MEDIUM.
   7. IT SHALL BE A FRAUDULENT BUSINESS PRACTICE FOR AN AUTOMOBILE BROKER
 BUSINESS TO GAIN ACCESS TO OR USE, OR REPRESENT OR ADVERTISE THAT IT MAY
 ACCESS  OR  USE,  A  PORTAL,  COMPUTER,  OR INTERNET ACCOUNT OWNED BY OR
 RESERVED FOR A NEW MOTOR VEHICLE DEALER TO ACCESS OR  USE  ONE  OR  MORE
 FINANCE  SOURCES  THAT  PROVIDE  AUTOMOTIVE-RELATED  LOANS, OR PURCHASES
 RETAIL INSTALLMENT CONTRACTS OR LEASE CONTRACTS FOR MOTOR VEHICLES.
   § 7. Section 741-b of the general business law, as added by chapter 28
 of the laws of 2018, is amended to read as follows:
   § 741-b. [Disclosure] DISCLOSURES REQUIRED BY BROKERS. 1.  An  automo-
 bile broker business shall GENERATE AND provide a disclosure at the time
 such automobile broker business takes an order to search for a leased OR
 PURCHASED  vehicle  meeting the prospective BUYER OR lessee's specifica-
 tions. Such disclosure shall provide the amount of any fees, commissions
 or other valuable consideration the automobile broker  business  expects

 A. 1932--B                          7
 
 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  PURCHASE OR lease transaction. If the amount of any such
 fees,  commissions 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 PURCHASE OR lease  trans-
 action[;  and  (b) whether the automobile broker business may be compen-
 sated by the dealer, lessor or  any  other  person  or  entity  for  any
 assistance  in effecting such lease transaction]. NOTHING IN THIS SUBDI-
 VISION SHALL BE CONSTRUED TO PERMIT THE PAYMENT OF ANY FEES, COMMISSIONS
 OR OTHER VALUABLE CONSIDERATION TO AN AUTOMOBILE BROKER BUSINESS BY  ANY
 MOTOR VEHICLE DEALER.
   2.  AN  AUTOMOBILE BROKER BUSINESS SHALL GENERATE AND PROVIDE AN ADDI-
 TIONAL DISCLOSURE TO THE CONSUMER AT THE  TIME  SUCH  AUTOMOBILE  BROKER
 BUSINESS  TAKES  AN  ORDER  TO  SEARCH  FOR  A MOTOR VEHICLE MEETING THE
 PROSPECTIVE BUYER OR LESSEE'S SPECIFICATIONS. SUCH ADDITIONAL DISCLOSURE
 SHALL STATE THE FOLLOWING:
   (A) THAT THE AUTOMOBILE BROKER BUSINESS SHALL MAKE A BONA FIDE ATTEMPT
 TO OBTAIN A BID, QUOTE OR OFFER FROM AT LEAST THREE UNAFFILIATED DEALERS
 ON BEHALF OF THE PROSPECTIVE BUYER OR LESSEE FOR A MOTOR VEHICLE MEETING
 THE PROSPECTIVE BUYER OR LESSEE'S SPECIFICATIONS, INCLUDING FROM THE NEW
 MOTOR VEHICLE DEALER OF SUCH LINE-MAKE LOCATED CLOSEST TO  THE  HOME  OR
 PLACE  OF BUSINESS OF SUCH PROSPECTIVE BUYER FOR A CONSUMER THAT SEEKS A
 NEW MOTOR VEHICLE;
   (B) THAT THE AUTOMOBILE BROKER BUSINESS SHALL PROVIDE TO THE  CONSUMER
 ALL  CONTENTS  OF EACH BID MADE BY A MOTOR VEHICLE DEALER IN RESPONSE TO
 THE SOLICITATION OF THE AUTOMOBILE BROKER BUSINESS; AND
   (C) THAT THE AUTOMOBILE BROKER BUSINESS HAS A  DUTY  TO  ACT  FOR  THE
 BENEFIT OF THE PROSPECTIVE BUYER OR LESSEE.
   3.  EACH  DISCLOSURE REQUIRED BY THIS SECTION TO BE MADE TO A CONSUMER
 SHALL BE ACKNOWLEDGED IN WRITING BY EACH CONSUMER.
   4. AT THE TIME AN AUTOMOBILE BROKER BUSINESS SOLICITS A BID FROM A NEW
 MOTOR VEHICLE DEALER IN THE MANNER DESCRIBED IN  SECTION  SEVEN  HUNDRED
 THIRTY-SEVEN-A  OF  THIS ARTICLE, SUCH BROKER SHALL PROVIDE A DISCLOSURE
 TO EACH SOLICITED DEALER AS TO THE PROVISIONS OF SECTION  SEVEN  HUNDRED
 THIRTY-NINE OF THIS ARTICLE.
   5.  PRIOR  TO  THE  EXECUTION OF ANY PURCHASE CONTRACT OR LEASE FOR AN
 AUTOMOBILE, AN AUTOMOBILE BROKER BUSINESS SHALL  PROVIDE  EACH  CONSUMER
 WITH ALL DISCLOSURES REQUIRED TO BE MADE BY A DEALER.
   § 8. The general business law is amended by adding a new section 741-c
 to read as follows:
   § 741-C. PRIVATE  INFORMATION  SECURITY. 1. AN AUTOMOBILE BROKER BUSI-
 NESS SHALL REPORT ANNUALLY TO  THE  DEPARTMENT  OF  MOTOR  VEHICLES  ITS
 COMPLIANCE  WITH  SECTIONS  THREE  HUNDRED NINETY-NINE-CC, THREE HUNDRED
 NINETY-NINE-DD, THREE HUNDRED  NINETY-NINE-DDD,  THREE  HUNDRED  NINETY-
 NINE-H, THREE HUNDRED NINETY-NINE-OO, THREE HUNDRED NINETY-NINE-P, THREE
 HUNDRED  NINETY-NINE-PP,  AND EIGHT HUNDRED NINETY-NINE-BB OF THIS CHAP-
 TER. FOR THE PURPOSES OF SUBDIVISION TWO OF SECTION EIGHT HUNDRED  NINE-
 TY-NINE-BB  OF  THIS CHAPTER, AN AUTOMOBILE BROKER BUSINESS SHALL NOT BE
 CONSIDERED A SMALL BUSINESS AS THAT TERM IS DEFINED IN THAT SECTION  AND
 SHALL  INSTEAD  BE  SUBJECT TO REASONABLE SECURITY REQUIREMENTS THAT ARE
 EQUIVALENT TO THOSE APPLICABLE TO NEW MOTOR VEHICLE DEALERS.
   2. IN ADDITION TO THE REQUIREMENTS OF SUBDIVISION ONE OF THIS SECTION,
 AN AUTOMOBILE BROKER BUSINESS SHALL:

 A. 1932--B                          8
 
   (A) KEEP AND MAINTAIN ALL CONSUMER RECORDS CONTAINING PRIVATE INFORMA-
 TION IN A SAFE PLACE THAT IS NOT ACCESSIBLE TO PERSONS NOT  EMPLOYED  BY
 THE  AUTOMOBILE  BROKER BUSINESS, INCLUDING BY KEEPING AND MAINTAINING A
 CLEAR AND PERMANENT PHYSICAL BARRIER FROM OTHER BUSINESSES THAT SHARE OR
 NEIGHBOR ITS PLACE OF BUSINESS;
   (B)  HAVE  A  MAILBOX  AT SUCH PLACE OF BUSINESS DEDICATED ONLY TO THE
 AUTOMOBILE BROKER BUSINESS; AND
   (C) HAVE A METHOD OF LOCKING SECURITY ITEMS, INCLUDING A LOCKING CABI-
 NET OR SAFE.
   3. NO TRANSACTION FOR THE PURCHASE OR LEASE OF  A  NEW  MOTOR  VEHICLE
 THAT  WAS  ARRANGED,  ASSISTED, FACILITATED OR EFFECTED BY AN AUTOMOBILE
 BROKER BUSINESS SHALL BE VALID UNLESS THE CONSUMER  PERSONALLY  DELIVERS
 AN EXECUTED PURCHASE CONTRACT OR LEASE, AND, WHERE APPLICABLE, FINANCING
 AGREEMENT,  TO THE PLACE OF BUSINESS OF THE DEALER FROM WHICH SUCH VEHI-
 CLE WILL BE PURCHASED OR LEASED AND SUCH DEALER VERIFIES THE IDENTITY OF
 SUCH CONSUMER.
   § 9. Section 743 of the general business law, as  amended  by  chapter
 372 of the laws of 2016, is amended to read as follows:
   § 743. Enforcement  [by].  1.  BY attorney general. In addition to the
 other remedies provided, whenever there shall be  a  violation  of  this
 article,  application may be made by the attorney general in the name of
 the people of the state of New York to a court or justice having  juris-
 diction  by a special proceeding to issue an injunction, and upon notice
 to the defendant of not less than five days, to enjoin and restrain  the
 continuance  of such violations; and if it shall appear to the satisfac-
 tion of the court or justice that the defendant has, in  fact,  violated
 this  article,  an  injunction  may  be issued by such court or justice,
 enjoining and restraining any further violation, without requiring proof
 that any person has, in fact, been injured or damaged  thereby.  In  any
 such  proceeding,  the court may make allowances to the attorney general
 as provided in paragraph six of subdivision (a) of section  eighty-three
 hundred  three  of the civil practice law and rules, and direct restitu-
 tion. Whenever the court shall determine that a violation of this  arti-
 cle  has  occurred,  the  court shall impose a civil penalty of not less
 than [one] FOUR thousand dollars and not more than [three] TEN  thousand
 dollars for each violation.  In connection with any such proposed appli-
 cation,  the  attorney  general  is  authorized to take proof and make a
 determination of the relevant facts and to issue subpoenas in accordance
 with the civil practice law and rules.
   2. BY LOCAL AUTHORITIES. (A) MUNICIPALITIES  MAY,  PURSUANT  TO  LOCAL
 LAW, ACT UPON THE BUSINESS ACTIVITY THAT IS THE SUBJECT OF THIS ARTICLE,
 PROVIDED  THAT  NO  LOCAL  GOVERNMENT  MAY  DIMINISH  THE PROTECTIONS OR
 REQUIREMENTS OF THIS ARTICLE OR PREVENT ENFORCEMENT OF ITS PROVISIONS BY
 APPROPRIATE STATE OFFICIALS.
   (B) THE PROVISIONS OF THIS ARTICLE MAY BE ENFORCED IN THE SAME  MANNER
 AS  SET  FORTH  IN  SUBDIVISION ONE OF THIS SECTION BY THE DIRECTOR OF A
 MUNICIPAL CONSUMER AFFAIRS OFFICE OR A BUSINESS INTEGRITY COMMISSION, OR
 BY THE TOWN ATTORNEY, CITY CORPORATION COUNSEL, OR OTHER LAWFULLY DESIG-
 NATED ENFORCEMENT OFFICER OF A MUNICIPALITY OR LOCAL GOVERNMENT, AND ALL
 MONIES COLLECTED THEREUNDER SHALL BE RETAINED BY  SUCH  MUNICIPALITY  OR
 LOCAL GOVERNMENT, PROVIDED THAT NO LOCAL GOVERNMENT MAY PREVENT ENFORCE-
 MENT OF ITS PROVISIONS BY APPROPRIATE STATE OFFICIALS.
   3.  BY  PRIVATE  PARTY.  ANY PERSONS THAT ARE OR MAY BE INJURED BY ANY
 VIOLATION OF THIS ARTICLE MAY BRING AN ACTION IN HIS  OR  HER  OWN  NAME
 AGAINST  AN  AUTOMOBILE  BROKER  BUSINESS TO ENJOIN SUCH UNLAWFUL ACT OR
 PRACTICE, AN ACTION TO RECOVER HIS OR HER DAMAGES AND STATUTORY  DAMAGES

 A. 1932--B                          9
 
 OF  NOT  LESS  THAN FOUR THOUSAND DOLLARS AND NOT MORE THAN TEN THOUSAND
 DOLLARS FOR EACH VIOLATION, OR BOTH SUCH ACTIONS. INJURY SHALL  INCLUDE,
 BUT  NOT  BE  LIMITED  TO,  LOST SALES ON ACCOUNT OF DECEPTIVE OR UNFAIR
 ADVERTISING  AND DEPRIVING A NEW MOTOR VEHICLE DEALER LOCATED CLOSEST TO
 A LESSEE OR PURCHASER THE OPPORTUNITY TO BID ON SUCH LEASE  OR  PURCHASE
 AS  ENTITLED  BY THIS ARTICLE. DAMAGES SHALL INCLUDE, BUT NOT BE LIMITED
 TO, LOST SALES AND THE VALUE OF INCENTIVE PAYMENTS,  BONUSES,  HOLDBACKS
 OR  SIMILAR  PAYMENTS  THAT  WOULD  HAVE  BEEN  REALIZED HAD A LESSEE OR
 PURCHASER PURCHASED OR LEASED SUCH VEHICLE FROM THE  NEW  MOTOR  VEHICLE
 DEALER  IN  CLOSEST  PROXIMITY  TO  SUCH LESSEE OR PURCHASER BUT FOR THE
 ACTIONS OF A PERSON WHO KNOWINGLY AIDED THE VIOLATION OF THE  PROVISIONS
 OF  THIS  ARTICLE.  NOTHING  IN THIS SECTION SHALL REQUIRE A FRANCHISOR,
 MANUFACTURER, OR DISTRIBUTOR TO GRANT A NEW MOTOR VEHICLE DEALER A BENE-
 FIT UNDER AN INCENTIVE, BONUS, HOLDBACK OR SIMILAR PAYMENT THAT THE  NEW
 MOTOR  VEHICLE  DEALER  DID  NOT EARN OR FOR WHICH THE NEW MOTOR VEHICLE
 DEALER DID NOT QUALIFY. SUCH ACTIONS MAY BE BROUGHT REGARDLESS OF WHETH-
 ER OR NOT THE UNDERLYING VIOLATION IS CONSUMER-ORIENTED OR HAS A  PUBLIC
 IMPACT. GIVEN THE REMEDIAL NATURE OF THIS SUBDIVISION, STANDING TO BRING
 AN  ACTION UNDER THIS SUBDIVISION SHALL BE LIBERALLY CONSTRUED AND SHALL
 BE AVAILABLE TO THE FULLEST EXTENT OTHERWISE PERMITTED BY LAW. THE COURT
 MAY, IN ITS DISCRETION, AWARD TREBLE DAMAGES  IF  THE  COURT  FINDS  THE
 DEFENDANT  WILLFULLY OR KNOWINGLY VIOLATED THIS ARTICLE. THE COURT SHALL
 AWARD REASONABLE ATTORNEY'S FEES AND COSTS TO A PREVAILING PLAINTIFF.
   § 10. Paragraph a of subdivision 1 of section 415 of the  vehicle  and
 traffic  law,  as amended by chapter 554 of the laws of 2015, is amended
 to read as follows:
   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 OR LEASE 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.
 FOR THE PURPOSES OF THIS SECTION,  "OFFERS  FOR  SALE  OR  LEASE"  SHALL
 INCLUDE,  BUT  NOT BE LIMITED TO, THE ACT OF DRAWING THE PUBLIC'S ATTEN-
 TION TO, OR THE PRESENTATION OR DISPLAY OF ANY MOTOR VEHICLE,  INCLUDING
 THE  POSTING  OF  IMAGES  OF ANY SUCH VEHICLE, TOGETHER WITH A SUGGESTED
 RETAIL PRICE, LEASE COST OR FINANCING RATE FOR SUCH VEHICLE AND AN OFFER
 TO PROVIDE, THE PROVISION OF, OR A REPRESENTATION THAT SUCH  PERSON  MAY
 PROVIDE A SERVICE OF ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE
 LEASE  OF SUCH NEW MOTOR VEHICLE, EXCEPT THIS MEANING SHALL NOT APPLY TO
 ANY ACTIVITY OF A COOPERATIVE OR OTHER ADVERTISING PROGRAM  OR  FUND  AS
 DESCRIBED  IN  ANY FRANCHISE, AS SUCH TERM IS DEFINED BY SUBDIVISION SIX
 OF SECTION FOUR HUNDRED SIXTY-TWO OF  THIS  TITLE,  OR  THE  DISPLAY  OF
 AGGREGATED  INFORMATION  AND IMAGES BY A NATIONAL SERVICE THAT OTHERWISE
 DOES NOT HAVE CONTACT WITH CONSUMERS. 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  para-
 graph f of this subdivision and a "qualified dealer" as defined in para-
 graph g of this subdivision.

 A. 1932--B                         10
 
   §  11.  Subdivision 3 of section 415 of the vehicle and traffic law is
 amended by adding a new paragraph d to read as follows:
   D. IT IS HEREBY DECLARED TO BE A FRAUDULENT PRACTICE, FOR THE PURPOSES
 OF  PARAGRAPH C OF SUBDIVISION NINE OF THIS SECTION, FOR A DEALER TO USE
 ANY  SUBSIDIARY  CORPORATION,  AFFILIATED  CORPORATION,  OR  ANY   OTHER
 CONTROLLED  CORPORATION, PARTNERSHIP, ASSOCIATION, BUSINESS OR PERSON TO
 ACCOMPLISH WHAT WOULD OTHERWISE BE UNLAWFUL CONDUCT UNDER  THIS  ARTICLE
 OR ARTICLE THIRTY-FIVE-B OF THE GENERAL BUSINESS LAW, INCLUDING REQUEST-
 ING THAT AN AUTOMOBILE BROKER BUSINESS REPRESENT SUCH DEALER IN GENERAT-
 ING A SALE OR LEASE OR MAKING PAYMENT TO, EITHER DIRECTLY OR INDIRECTLY,
 AN AUTOMOBILE BROKER BUSINESS.
   §  12.  Subdivision  3-a and paragraph b-3 of subdivision 5 of section
 415 of the vehicle and traffic law, as added by chapter 477 of the  laws
 of 2017, are amended to read as follows:
   3-a.  Automobile  broker  business  registration.  A.  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 busi-
 ness  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 registra-
 tion submitted pursuant to subdivision five of this section. SUCH REGIS-
 TRATION  SHALL BE EFFECTIVE FOR A PERIOD NOT EXCEEDING TWO YEARS. AT THE
 DISCRETION OF THE COMMISSIONER A REGISTRATION MAY BE RENEWED FOR A PERI-
 OD OF UP TO TWO YEARS UPON APPLICATION THEREFOR, IN  SUCH  FORM  AS  THE
 COMMISSIONER  MAY  PRESCRIBE,  AND A SHOWING OF PROOF OF SATISFACTION OF
 THE REQUIREMENTS OF SECTION SEVEN HUNDRED FORTY-A OF THE  GENERAL  BUSI-
 NESS LAW, AND UPON PAYMENT OF THE FEE AS HEREIN PRESCRIBED.
   B.  THE  COMMISSIONER SHALL NOT ISSUE OR RENEW A CERTIFICATE OF REGIS-
 TRATION AUTHORIZED BY THIS SUBDIVISION TO ANY DEALER, FRANCHISEE,  FRAN-
 CHISOR, 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, EMPLOYEE OR CONTROLLED PERSON OR
 ENTITY THEREOF.
   C. AS A CONDITION OF ANY CERTIFICATE OF REGISTRATION ISSUED OR RENEWED
 PURSUANT TO THIS SUBDIVISION, AN AUTOMOBILE BROKER BUSINESS SHALL  HAVE,
 AND  CONTINUOUSLY  MAINTAIN, A PLACE OF BUSINESS IN THIS STATE FOR WHICH
 IT SHALL KEEP  AND  MAINTAIN  EVIDENCE  THAT  ALL  NECESSARY  APPROVALS,
 LICENSES  AND/OR  PERMITS  HAVE  BEEN  OBTAINED FROM ALL LOCAL GOVERNING
 BODIES TO OPERATE SUCH PLACE OF BUSINESS WITH CUSTOMER OR  CLIENT  TRAF-
 FIC.  NO  MORE  THAN ONE AUTOMOBILE BROKER BUSINESS SHALL OPERATE AT ANY
 SINGLE LOCATION AND NO AUTOMOBILE BROKER BUSINESS SHALL OPERATE  AT  THE
 SAME LOCATION AS A NEW MOTOR VEHICLE DEALER.
   D.  EVERY  REGISTERED AUTOMOBILE BROKER BUSINESS SHALL PROMINENTLY AND
 CONSPICUOUSLY POST, IN SUCH A MANNER THAT IT IS LIKELY TO BE  NOTICEABLE
 TO  ANYONE  ENTERING  ITS PREMISES, ITS OFFICIAL BUSINESS CERTIFICATE OF
 REGISTRATION AND A SIGN, WHICH SIGN SHALL CLEARLY STATE:
   "(NAME OF REGISTERED AUTOMOBILE BROKER) IS NOT A FRANCHISED NEW  MOTOR
 VEHICLE  DEALER.  WE ARE NOT AUTHORIZED OR APPROVED BY A MANUFACTURER OR
 DISTRIBUTOR TO SELL A NEW MOTOR VEHICLE OR PERFORM  RECALL  OR  ORIGINAL
 FACTORY  WARRANTY  WORK.  IF  YOU ORDER A SEARCH FOR A NEW MOTOR VEHICLE
 FROM THIS BROKER, WE MUST MAKE A BONA FIDE EFFORT TO SOLICIT  BIDS  FROM
 AT  LEAST  THREE  UNAFFILIATED NEW MOTOR VEHICLE DEALERS FOR A NEW MOTOR
 VEHICLE ON YOUR BEHALF, INCLUDING FROM YOUR LOCAL DEALER."
   E. AS A CONDITION OF ANY CERTIFICATE OF REGISTRATION ISSUED OR RENEWED
 PURSUANT TO THIS SUBDIVISION, AND BEFORE PERFORMING ANY BROKER  SERVICES
 RELATED  TO  A  NEW  MOTOR  VEHICLE, AN AUTOMOBILE BROKER BUSINESS SHALL

 A. 1932--B                         11
 
 ATTEST IN WRITING TO EACH CONSUMER, THAT THE BROKER: (I) IS NOT A  FRAN-
 CHISED NEW MOTOR VEHICLE DEALER; (II) IS NOT AUTHORIZED OR APPROVED BY A
 MANUFACTURER  OR  DISTRIBUTOR  TO  SELL  A  NEW MOTOR VEHICLE OR PERFORM
 RECALL  OR  ORIGINAL  FACTORY  WARRANTY  WORK; AND (III) THAT THE BROKER
 SHALL MAKE A BONA FIDE EFFORT TO SOLICIT BIDS FROM AT LEAST THREE  UNAF-
 FILIATED  NEW MOTOR VEHICLE DEALERS THAT SELL A NEW MOTOR VEHICLE OR ANY
 LINE OR MAKE DESIRED BY SUCH CONSUMER,  INCLUDING  FROM  THE  CONSUMER'S
 LOCAL DEALER.
   F. IT IS HEREBY DECLARED TO BE A FRAUDULENT PRACTICE, FOR THE PURPOSES
 OF  PARAGRAPH  C  OF SUBDIVISION NINE OF THIS SECTION, FOR AN AUTOMOBILE
 BROKER BUSINESS TO DRAW THE PUBLIC'S ATTENTION TO, OR PRESENT OR DISPLAY
 ANY NEW MOTOR VEHICLE, INCLUDING BY POSTING IMAGES OF ANY SUCH  VEHICLE,
 TOGETHER WITH A SUGGESTED RETAIL PRICE, LEASE COST OR FINANCING RATE FOR
 SUCH  VEHICLE  AND AN OFFER TO PROVIDE, THE PROVISION OF, OR A REPRESEN-
 TATION THAT SUCH PERSON MAY PROVIDE A SERVICE OF  ARRANGING,  ASSISTING,
 FACILITATING  OR EFFECTING THE PURCHASE OR LEASE OF SUCH NEW MOTOR VEHI-
 CLE.
   G. NOTHING IN THIS SUBDIVISION SHALL BE CONSTRUED TO PROHIBIT A  FRAN-
 CHISOR, MANUFACTURER, OR DISTRIBUTOR FROM SPONSORING ACTIVITIES INTENDED
 TO  GENERATE  LEADS TOWARD THE SALE OR LEASE OF A NEW MOTOR VEHICLE BY A
 FRANCHISEE.
   b-3. In the case of an application for registration as  an  automobile
 broker business, EITHER FOR INITIAL REGISTRATION OR RENEWAL THEREOF, 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, A COPY OF SUCH BOND CERTIFIED BY THE SECRETARY OF
 STATE OR ONE OF HIS OR HER AGENTS, AND A STATEMENT INDICATING ANY INTER-
 EST IN THE APPLICANT'S BUSINESS ENTITY BY A PERSON OR  ENTITY  DESCRIBED
 IN PARAGRAPH F OF SUBDIVISION ONE OR PARAGRAPH F OF SUBDIVISION SEVEN OF
 THIS  SECTION,  OR  ANY EMPLOYEE OR PERSON, CONTROLLING PERSON OR ENTITY
 THEREOF. If the bond is to be issued by an authorized agent of the sure-
 ty 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.
   § 13. Section 415 of the vehicle and traffic law is amended by  adding
 two new subdivisions 21 and 22 to read as follows:
   21. PENALTIES AND RIGHTS OF ACTION FOR FAILURE TO OBTAIN A CERTIFICATE
 OF  REGISTRATION AS AN AUTOMOBILE BROKER PURSUANT TO SUBDIVISION THREE-A
 AND PARAGRAPH B-3 OF SUBDIVISION FIVE OF THIS SECTION.  IN  ADDITION  TO
 ANY  OTHER  ACTION  AUTHORIZED  BY  LAW, THE COMMISSIONER, OR ANY PERSON
 DESIGNATED BY HIM OR HER, MAY PROCEED AGAINST A PARTY WHO  HAS  OPERATED
 AS  AN  AUTOMOBILE BROKER WITHOUT CERTIFICATE OF REGISTRATION IN ACCORD-
 ANCE WITH THE PROVISIONS OF THIS ARTICLE, IN ANY ONE OR MORE PROCEEDINGS
 AND BY ORDER TO ENJOIN SUCH UNLAWFUL ACTS OR PRACTICES AND REQUIRING THE
 OFFENDING PARTY TO PAY THE PEOPLE OF THIS STATE A PENALTY IN A  SUM  NOT
 LESS  THAN  FOUR THOUSAND DOLLARS AND NOT MORE THAN TEN THOUSAND DOLLARS
 FOR EACH  VIOLATION  FOUND  TO  HAVE  BEEN  COMMITTED.  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. FOR THE PURPOSES OF THIS SUBDIVISION, A "VIOLATION"  SHALL
 MEAN  EACH VEHICLE SOLD OR LEASED TO A CONSUMER FOR WHICH THE PARTY THAT
 FAILED TO OBTAIN CERTIFICATION AS AN AUTOMOBILE BROKER HAS SERVED AS  AN
 AUTOMOBILE BROKER.
   22. AUTOMOBILE BROKER RECORD REQUIREMENTS. A. AUTOMOBILE BROKERS SHALL
 MAINTAIN  A  PERMANENTLY BOUND BOOK IN WHICH SHALL BE RECORDED THE MAKE,

 A. 1932--B                         12
 
 MODEL, YEAR, COLOR AND VEHICLE IDENTIFICATION NUMBER OF  ALL  NEW  MOTOR
 VEHICLES  FOR  WHICH  SUCH  BROKER HAS PROVIDED A SERVICE OF PURCHASING,
 ARRANGING, ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF
 SUCH  AUTOMOBILE WITHIN ANY PRECEDING SIX-YEAR PERIOD. SUCH BROKER SHALL
 ALSO RECORD IN SUCH BOOK THE NAME AND ADDRESS OF THE PURCHASER OR LESSOR
 OF SUCH AUTOMOBILE, THE DATE OF SALE OR COMMENCEMENT OF  LEASE  OF  SUCH
 AUTOMOBILE AND THE NAME AND ADDRESS OF THE DEALER FROM WHICH THE AUTOMO-
 BILE WAS PURCHASED OR LEASED.
   B.  AUTOMOBILE  BROKER  BUSINESSES  SHALL MAINTAIN A PERMANENTLY BOUND
 BOOK IN WHICH SHALL BE RECORDED ALL COMPLETED ORDERS TO SEARCH FOR A NEW
 MOTOR VEHICLE WITHIN ANY PRECEDING SIX-YEAR PERIOD.   SUCH BROKER  SHALL
 ALSO RECORD IN SUCH BOOK THE DATE OF SUCH ORDER, THE NAME AND ADDRESS OF
 THE PERSON OR ENTITY ORDERING SUCH SEARCH, THE AUTOMOBILE SPECIFICATIONS
 PROVIDED BY SUCH PROSPECTIVE BUYER OR LESSEE AND THE NAME AND ADDRESS OF
 THE DEALERS SOLICITED FOR A QUOTE OR OFFER ON BEHALF OF SUCH PROSPECTIVE
 BUYER OR LESSEE.
   C. SUCH BOOKS SHALL BE OPEN FOR INSPECTION BY THE COMMISSIONER, OR HIS
 OR  HER  AGENT,  DURING  REASONABLE BUSINESS HOURS. THE COMMISSIONER MAY
 ESTABLISH BY RULE THE FORM OF ANY SUCH BOOK.
   D. AS AN ALTERNATIVE TO A BOUND BOOK, AN AUTOMOBILE BROKER MAY  USE  A
 COMPUTER AND SOFTWARE APPROVED BY THE DEPARTMENT TO MAINTAIN THE RECORDS
 REQUIRED  TO  BE KEPT BY THIS SECTION, PROVIDED ALL INFORMATION REQUIRED
 BY PARAGRAPHS A AND B OF THIS  SECTION  ARE  RECORDED  AND  THE  RECORDS
 CONFORM TO SUCH ADDITIONAL REQUIREMENTS AS DETERMINED BY THE COMMISSION-
 ER.
   §  14. Nothing in this act shall be construed to limit, or to enlarge,
 the protections that 47 U.S.C. § 230 confers on an interactive  computer
 service for content provided by another information content provider, as
 such terms are defined in 47 U.S.C. § 230.
   §  15.  Severability. If any provision of this act, or any application
 of any provision of this act, is held to  be  invalid,  that  shall  not
 affect the validity or effectiveness of any other provision of this act,
 or  of  any other application of any provision of this act, which can be
 given effect without that provision or application; and to that end, the
 provisions and applications of this act are severable.
   § 16. This act shall take effect immediately; provided that all  auto-
 mobile  brokers  registered on the effective date of this act shall have
 ninety days to come into compliance with the provisions of this act.