NY State Senate Bill 2021-S178

Senate Bill S178

2021-2022 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Transportation Committee

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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to transportation
Jan 06, 2021	referred to transportation

2021-S178 (ACTIVE) - Details

See Assembly Version of this Bill:: A388
Current Committee:: Senate Transportation
Law Section:: Vehicle and Traffic Law
Laws Affected:: Amd §395, V & T L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S2737, A7474
2023-2024: A4353

2021-S178 (ACTIVE) - Summary

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

2021-S178 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S178

SPONSOR: KAPLAN
 
TITLE OF BILL:

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

 
PURPOSE:

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

 
SUMMARY OF PROVISIONS:

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

Motor. Vehicles performs.

Section two is the effective date.

 
JUSTIFICATION:

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

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

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

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

 
LEGISLATIVE HISTORY:

S. 2737/A. 7474 of 2019/20; Referred to Transportation Committee
A. 9017 of 2018; Passed Assembly

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2021-S178 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    178
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Transportation
 
 AN ACT to amend the vehicle and traffic law, in relation to  prohibiting
   certain entities from engaging in the business of securing motor vehi-
   cle registrations or giving instructions as to procuring motor vehicle
   registrations
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 395 of the vehicle and traffic law, as  amended  by
 chapter 124 of the laws of 1974, is amended to read as follows:
   § 395. Certain  private  service  bureaus  to be licensed.   Except as
 otherwise provided herein, no person, firm, association  or  corporation
 shall, engage in the business of assisting for hire in securing licenses
 to  drive  motor  vehicles or registrations or titles of motor vehicles,
 nor shall any person, firm, association or corporation for  compensation
 give  instructions  as  to procuring licenses to drive motor vehicles or
 registrations or titles of motor vehicles, without being the holder of a
 license for such purpose issued by the commissioner of  motor  vehicles.
 An  applicant  for  a  license  shall furnish the commissioner with such
 information and such references as to moral character as he may  reason-
 ably  require.  Every application shall be accompanied by a fee of twen-
 ty-five dollars, which shall be regarded as an application fee and shall
 in no event be refunded. If an application be approved  by  the  commis-
 sioner,  the  applicant upon the payment of an additional fee of twenty-
 five dollars shall be granted a license which shall expire on the  thir-
 tieth  day  of June following the date of its issuance. The commissioner
 shall issue a license certificate to  each  licensee  which  certificate
 shall  be conspicuously displayed in the place of business of the licen-
 see, or, if the licensee has no place  of  business,  such  certificates
 shall  be  exhibited  at the request of any person. In case of the loss,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD00508-01-1

 S. 178                              2
 
 mutilation or destruction of a certificate, the commissioner shall issue
 a duplicate upon proof of the facts and the payment  of  a  fee  of  one
 dollar.  The  refusal to issue a license may be reviewed by a proceeding
 under  article  seventy-eight  of the civil practice law and rules. Such
 license shall be renewed annually upon the payment of a fee  of  twenty-
 five  dollars,  such  renewal to take effect on the first day of July in
 each year.  Upon renewal, the commissioner may, in his discretion, issue
 a license which shall be valid for a two year period. The  fee  for  any
 such two year renewal shall be fifty dollars.
   No license shall be issued under this section nor shall any renewal of
 a license issued under this section be made for conducting business in a
 city  having  a  population  of fifty thousand or more, according to the
 latest federal census if the place  of  business  of  the  licensee,  or
 branch  thereof,  is within fifteen hundred feet of a building, owned or
 leased by the state, a county or a city, in which motor  vehicle  regis-
 trations  or  licenses to drive motor vehicles are issued to the public.
 The said distance of fifteen hundred feet shall be  measured  along  the
 public  streets  by  the  nearest  route from such place of business, or
 branch thereof, to such building. The provisions of this paragraph shall
 not apply to a holder of a certificate of registration  issued  pursuant
 to section four hundred fifteen of this chapter.
   NO LICENSE SHALL BE ISSUED UNDER THIS SECTION NOR SHALL ANY RENEWAL OF
 A  LICENSE ISSUED UNDER THIS SECTION BE MADE FOR A PERSON, FIRM, ASSOCI-
 ATION OR CORPORATION WHO ENGAGES IN THE BUSINESS OF ASSISTING  FOR  HIRE
 IN  SECURING  MOTOR VEHICLE REGISTRATIONS OR WHO, FOR COMPENSATION, GIVE
 INSTRUCTIONS AS TO PROCURING MOTOR VEHICLE REGISTRATIONS. THE PROVISIONS
 OF THIS PARAGRAPH SHALL NOT APPLY TO A HOLDER OF A LICENSE ISSUED PURSU-
 ANT TO SECTION THREE HUNDRED NINETY-FOUR OF THIS ARTICLE OR  THE  HOLDER
 OF A CERTIFICATE OF REGISTRATION ISSUED PURSUANT TO SECTION FOUR HUNDRED
 FIFTEEN OF THIS CHAPTER.
   A  licensee shall be subject to such reasonable regulations concerning
 the business  conducted  under  his  license  as  the  commissioner  may
 prescribe  and he shall permit the commissioner, or his representatives,
 to inspect his place of business on any business day and  shall  furnish
 to  the commissioner, or his representative, such information concerning
 the conduct of the business as may be reasonably required.
   The provisions of subdivisions five and six of section  three  hundred
 ninety-four  of  this [chapter] ARTICLE shall be applicable with respect
 to this section.
   The holder of a license issued pursuant to section three hundred nine-
 ty-four of this [chapter] ARTICLE or the  holder  of  a  certificate  of
 registration  issued  pursuant  to  section four hundred fifteen of this
 chapter shall not be required to secure a license under this section  in
 order  to  conduct  a  business  for which a license is required by this
 section but any such licensee, or registrant,  who  shall  conduct  such
 business,  shall be subject to the same visitation and regulation by the
 commissioner with reference to such business as provided in this section
 with respect to a licensee under this section.
   As used in this section the phrase "licenses to drive motor  vehicles"
 includes the term "learners' permits".
   A  violation of any of the provisions of this section shall constitute
 a misdemeanor.
   § 2. This act shall take effect immediately.

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