S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3499--A
                                                            R. R. 442
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2023
                                ___________
 
 Introduced by M. of A. CARROLL, STIRPE, REYES, TAYLOR, DICKENS, DeSTEFA-
   NO,  RAMOS, MIKULIN, SAYEGH, SMITH, WILLIAMS, COOK, SEAWRIGHT, REILLY,
   MILLER, ROZIC, EPSTEIN, CRUZ, STECK, RA, BENEDETTO, JACOBSON, HYNDMAN,
   THIELE, LAVINE, STERN, JONES, BUTTENSCHON, BRAUNSTEIN,  FALL,  PAULIN,
   L. ROSENTHAL,  WALLACE,  DILAN,  AUBRY,  JEAN-PIERRE, DARLING, WALKER,
   ANDERSON, JACKSON -- Multi-Sponsored by -- M. of A. FITZPATRICK, HEVE-
   SI, SIMON -- read once and  referred  to  the  Committee  on  Consumer
   Affairs  and  Protection  -- reported and referred to the Committee on
   Codes -- reported and referred to the Committee on Rules -- ordered to
   a third reading -- amended on the  special  order  of  third  reading,
   ordered reprinted as amended, retaining its place on the special order
   of third reading
 
 AN  ACT  to  amend  the general business law and the vehicle and traffic
   law, in relation to automobile 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  dealer pursuant to article sixteen of the vehicle and
 traffic law, ONLY WHEN OPERATING IN A MANNER PURSUANT TO SUCH  REGISTRA-
 TION  UNDER  ARTICLE  SIXTEEN OF THE VEHICLE AND TRAFFIC LAW, ANY PERSON
 REGISTERED UNDER SECTION FOUR HUNDRED FIFTEEN-A OF THE VEHICLE AND TRAF-
 FIC LAW, ONLY WHEN OPERATING IN  A  MANNER  DESCRIBED  IN  SECTION  FOUR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00498-02-3
 A. 3499--A                          2
 
 HUNDRED  FIFTEEN-A OF THE VEHICLE AND TRAFFIC LAW, AN AUTOMOBILE AUCTIO-
 NEER, ONLY WHEN OPERATING IN THE MANNER  DESCRIBED  IN  SECTION  TWENTY-
 THREE OF THIS CHAPTER, nor any bona fide employee of a registered dealer
 while  acting  for such dealer, or any person who sells, offers for sale
 or lease or acts as agent,  broker  or  intermediary  in  effecting  the
 purchase  or  lease  of three or fewer automobiles in any calendar year,
 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 FACTO-
 RY BRANCH registered under article sixteen of the  vehicle  and  traffic
 law.
   §  2.  Section  736 of the general business law is amended by adding a
 new subdivision 4 to read as follows:
   4. "PLACE OF BUSINESS" MEANS A DESIGNATED PERMANENT LOCATION AT  WHICH
 THE BUSINESS OF THE AUTOMOBILE BROKER BUSINESS IS CONDUCTED.
   § 3. The general business law is amended by adding a new section 736-b
 to read as follows:
   §  736-B.  PLACE  OF  BUSINESS  REQUIRED. 1. NO PERSON SHALL ENGAGE IN
 BUSINESS AS AN AUTOMOBILE BROKER BUSINESS, AS DEFINED IN  SECTION  SEVEN
 HUNDRED THIRTY-SIX OF THIS ARTICLE, WITHOUT MAINTAINING A PLACE OF BUSI-
 NESS.
   2.  THE  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 SHALL BE AMENDED WITHIN THIRTY
 DAYS OF A CHANGE OF ADDRESS OF AN AUTOMOBILE BROKER BUSINESS TO  REFLECT
 THE NEW ADDRESS OF ITS PLACE OF BUSINESS.
   §  4.  Subdivision  1  and  the  opening paragraph of subdivision 2 of
 section 738 of the general business law, subdivision 1 and  the  opening
 paragraph  of subdivision 2 as added by chapter 616 of the laws of 1988,
 the opening paragraph and paragraph (e) of subdivision 1 as  amended  by
 chapter  28  of the laws of 2018, and paragraphs (f) and (g) of subdivi-
 sion 1 as amended by chapter 477 of the laws of  2017,  are  amended  to
 read as follows:
   1.  PRIOR  TO THE PURCHASE OR LEASE OF AN AUTOMOBILE, THE CONSUMER AND
 THE AUTOMOBILE BROKER  BUSINESS  SHALL  ENTER  INTO  A  CONTRACT.  Every
 contract  between  a  consumer and an automobile broker business for the
 purchase OR LEASE of an automobile shall be in writing, shall be  dated,
 shall contain the street address of the PLACE OF BUSINESS OF THE automo-
 bile  broker  business, THE REGISTRATION NUMBER ISSUED TO THE AUTOMOBILE
 BROKER BUSINESS PURSUANT TO SECTION FOUR HUNDRED FIFTEEN OF THE  VEHICLE
 AND  TRAFFIC  LAW  and THE NAME AND ADDRESS OF 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:
   (a) A complete description of the automobile and each option, if  any,
 ordered;  a  statement  of whether the automobile is or will be manufac-
 tured in accordance with United States specifications and is or will  be
 certified  by the manufacturer as such; if the automobile is not or will
 not be manufactured in accordance with United States safety and environ-
 mental specifications, and the  consumer  has  retained  the  automobile
 broker  business  to  arrange  for the modification of the automobile to
 meet such specifications, the name and street address of  the  modifica-
 tion facility and a statement in immediate proximity to such information
 that  the automobile broker business assumes full financial responsibil-
 ity that the automobile will be properly modified  to  meet  all  United
 States safety and environmental specifications.
 A. 3499--A                          3
 
   (b)  The price of the automobile including any options ordered. If the
 price set forth is an estimated price, a statement in immediate proximi-
 ty to the price that the price is an estimated price only and  that  the
 consumer  has  the  right  to  cancel the contract and to receive a full
 refund  if the final price exceeds the estimated price by more than five
 percent.
   (c) The estimated delivery date of the automobile  and  the  place  of
 delivery  and a statement in immediate proximity to the estimated deliv-
 ery date that, if the automobile has not been  delivered  in  accordance
 with  the  contract within thirty days following such estimated delivery
 date, the consumer has the right to cancel the contract and to receive a
 full refund, unless the delay in delivery is attributable to the consum-
 er.
   (d) A statement of whether or not the manufacturer's warranty accompa-
 nying the automobile is the same warranty as that furnished to  purchas-
 ers  of  that  make  automobile from an authorized dealer located in the
 United States.
   (e) A STATEMENT THAT THE BROKER WILL  NOT  ACCEPT  PAYMENT  FOR  THEIR
 SERVICES FROM ANYONE OTHER THAN THE MOTOR VEHICLE DEALER.
   (F) A STATEMENT THAT THE CONSUMER HAS THE OPTION TO TAKE DELIVERY OF A
 MOTOR VEHICLE AT THE SELLING OR LEASING DEALERSHIP.
   (G)  A  description  of  any  other services and an itemization of the
 charges for each. Such description shall include disclosure of the auto-
 mobile dealer from which the automobile was purchased OR LEASED, as well
 as all fees, commissions or other valuable  considerations  paid  by  an
 automobile dealer to the automobile broker business for selling, arrang-
 ing, assisting or effecting the sale OR LEASE of an automobile as agent,
 broker, or intermediary between the consumer and the automobile dealer.
   [(f)]  (H)  If  a  consumer  elects to cancel the contract pursuant to
 paragraph (b) or (c) of this subdivision, he  or  she  shall  notify  in
 writing  the  automobile broker business at the address specified in the
 contract. The automobile broker business shall make a full refund to the
 consumer within ten business days following receipt of the request for a
 refund.   The contract shall contain  a  statement,  setting  forth  the
 consumer's  right to cancel the contract under paragraphs (b) and (c) of
 this subdivision and the refund obligations  of  the  automobile  broker
 business.
   [(g)]  (I)  The statements required by paragraphs (a), (b), (c), [and]
 (E), (f), (G) AND (H) of this subdivision shall be printed in  at  least
 [ten] TWELVE point bold type.
   The  contract  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
 [ten] TWELVE point type the following:
   § 5. Section 741-a of the general business law, as amended by  chapter
 477 of the laws of 2017, is amended to read as follows:
   §  741-a.  Advertising.  1. Automobile broker businesses shall clearly
 and conspicuously disclose the following in all  advertisements  in  any
 medium, and in any print advertisement such disclosures shall not appear
 in  any  footnotes  and  shall  be  situated in the top half of any such
 advertisement in an easily readable typeface:
   (a) That the automobile broker business is not a registered new  motor
 vehicle dealer but is a registered automobile broker business as defined
 in section four hundred fifteen of the vehicle and traffic law;
   (b)  The  registration number issued to the automobile broker business
 pursuant to section four hundred fifteen of the vehicle and traffic law;
 A. 3499--A                          4

   (c) Whether any fees may be imposed by the automobile broker  business
 for services rendered. Details of such compensation shall be provided by
 the automobile broker business upon request by the consumer; [and]
   (d)  That  no warranty repair services will be provided by the automo-
 bile broker business; AND
   (E) THAT THE AUTOMOBILE BROKER BUSINESS IS  NOT  AFFILIATED  WITH  ANY
 MANUFACTURER, DEALERSHIP, OR DEALERSHIP GROUP.
   2.  THE OFFICIAL BUSINESS CERTIFICATE OF REGISTRATION SHALL BE CLEARLY
 AND CONSPICUOUSLY DISPLAYED AT THE PLACE OF BUSINESS  OF  AN  AUTOMOBILE
 BROKER BUSINESS.
   § 6. The general business law is amended by adding a new section 741-c
 to read as follows:
   § 741-C. PRIVATE INFORMATION SECURITY. IN ADDITION TO THE REQUIREMENTS
 OF SUBDIVISION TWENTY-ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE
 AND TRAFFIC LAW, AN AUTOMOBILE BROKER BUSINESS SHALL:
   1.  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;
   2. HAVE A SEPARATE MAILBOX AT SUCH PLACE OF BUSINESS FOR  THE  AUTOMO-
 BILE BROKER BUSINESS; AND
   3.  HAVE  A METHOD OF SECURING PERSONAL INFORMATION, INCLUDING BUT NOT
 LIMITED TO IN A LOCKING CABINET OR SAFE.
   § 7. Section 415 of the vehicle and traffic law is amended  by  adding
 four new subdivisions 22, 23, 24 and 25 to read as follows:
   22.  COMPLIANCE.  ALL  DEALERS AND AUTOMOBILE BROKER BUSINESSES REGIS-
 TERED UNDER SUBDIVISIONS THREE AND THREE-A OF THIS SECTION SHALL CERTIFY
 AND ATTEST TO COMPLIANCE WITH SECTIONS THREE HUNDRED NINETY-NINE-CC,  AS
 ADDED  BY CHAPTER 655 OF THE LAWS OF 2005, THREE HUNDRED NINETY-NINE-DD,
 AS ADDED BY CHAPTER 487 OF THE LAWS OF 2006, 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, EIGHT HUNDRED NINE-
 TY-NINE-BB OF THE GENERAL BUSINESS LAW, AND PART THREE HUNDRED  FOURTEEN
 OF TITLE SIXTEEN OF THE CODE OF FEDERAL REGULATIONS AS APPLICABLE.
   23.  AUTOMOBILE  BROKER  RECORD  REQUIREMENTS.  (A) FOR EACH COMPLETED
 TRANSACTION AND WITHIN THREE  BUSINESS  DAYS  OF  CONSUMMATION  THEREOF,
 AUTOMOBILE  BROKERS  SHALL  MAINTAIN  A PERMANENT PAPER FILE RECORD THAT
 CLEARLY EVIDENCES AND RECORDS THE MAKE, MODEL, YEAR, COLOR  AND  VEHICLE
 IDENTIFICATION  NUMBER OF ALL PREVIOUSLY UNREGISTERED MOTOR VEHICLES FOR
 WHICH SUCH BROKER HAS  PROVIDED  A  SERVICE  OF  PURCHASING,  ARRANGING,
 ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF SUCH MOTOR
 VEHICLE.  SUCH  RECORDS  SHALL BE MAINTAINED FOR A SIX-YEAR PERIOD AFTER
 CONSUMMATION OF THE TRANSACTION. SUCH RECORDS  SHALL  ALSO  INCLUDE  THE
 NAME  AND  ADDRESS OF THE PURCHASER OR LESSEE OF SUCH MOTOR VEHICLE, THE
 DATE OF SALE OR COMMENCEMENT OF LEASE WITH RESPECT TO SUCH MOTOR VEHICLE
 AND THE NAME AND ADDRESS OF THE DEALER FROM WHICH THE MOTOR VEHICLE  WAS
 PURCHASED OR LEASED.
   (B)  THE  RECORDS MAINTAINED BY THE AUTOMOBILE BROKER BUSINESSES SHALL
 INCLUDE A COPY OF THE DEALER RATE  SHEETS  RECEIVED  BY  THE  AUTOMOBILE
 BROKER  FROM  THE DEALERS THAT WERE RELIED UPON BY THE AUTOMOBILE BROKER
 IN CONNECTION WITH SUCH TRANSACTION.
   (C) SUCH RECORDS SHALL BE OPEN FOR INSPECTION BY THE COMMISSIONER,  OR
 HIS OR HER AGENT, DURING REASONABLE BUSINESS HOURS.
   (D)  AS AN ALTERNATIVE TO PAPER FILE RECORDS, AN AUTOMOBILE BROKER MAY
 USE A COMPUTER AND APPROPRIATE SOFTWARE TO MAINTAIN THE RECORDS REQUIRED
 A. 3499--A                          5
 
 TO BE KEPT BY THIS SECTION, PROVIDED ALL INFORMATION REQUIRED  BY  PARA-
 GRAPHS  (A) AND (B) OF THIS SUBDIVISION ARE DULY RECORDED AND MAINTAINED
 IN ACCORDANCE WITH THIS SUBDIVISION.
   24.  MAINTENANCE  RECORDS.  FOR  EACH SALE OR LEASE OF A MOTOR VEHICLE
 THAT INVOLVES AN AUTOMOBILE BROKER  BUSINESS,  THE  DEALER  MUST  OBTAIN
 EVIDENCE  OF  THE  AUTOMOBILE  BROKER  BUSINESS'  REGISTRATION  AND  THE
 BROKER'S REGISTRATION NUMBER AND MAINTAIN SUCH RECORDS IN THE DEAL JACK-
 ET FOR EACH TRANSACTION WHICH ALSO SHALL  CONTAIN  THE  PURCHASE  ORDER,
 COPIES OF THE TITLE AND REGISTRATION DOCUMENTS, THE BILL OF SALE AND THE
 RETAIL  INSTALLMENT  SALE  CONTRACT  REQUIRED  UNDER  ARTICLE TEN OF THE
 PERSONAL PROPERTY LAW OR THE RETAIL LEASE AGREEMENT REQUIRED UNDER ARTI-
 CLE NINE-A OF THE PERSONAL PROPERTY LAW.
   25. BROKER COMPENSATION. NO DEALER MAY  OFFER  OR  PAY  AN  AUTOMOBILE
 BROKER   BUSINESS  ANY  FEE,  OR  COMMISSION,  OTHER  THAN  COMPENSATION
 DISCLOSED PURSUANT  TO  SECTION  SEVEN  HUNDRED  THIRTY-EIGHT  OR  SEVEN
 HUNDRED FORTY-ONE-B OF THE GENERAL BUSINESS LAW OR SECTION THREE HUNDRED
 TWO OR THREE HUNDRED THIRTY-SEVEN OF THE PERSONAL PROPERTY LAW.
   §  8.  The general business law is amended by adding a new section 745
 to read as follows:
   § 745. PREEMPTION. THE PROVISIONS OF THIS  ARTICLE  AND  SECTION  FOUR
 HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW SHALL GOVERN THE REQUIRE-
 MENTS  AND  OBLIGATIONS  WITH  RESPECT TO THE AUTOMOBILE BROKER BUSINESS
 NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY. NO LOCAL OR MUNICIPAL LAW
 SHALL BE ENACTED WHICH SHALL IMPOSE ANY DIFFERENT OR  OTHER  OBLIGATIONS
 ON  THE AUTOMOBILE BROKER BUSINESS INCLUDING A REQUIREMENT OF ANY FEE OR
 LICENSE FOR THE AUTOMOBILE BROKER BUSINESS.
   § 9. 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. An automobile broker  business  shall  provide  a
 disclosure at the time such automobile broker business takes an order to
 search  for  a  leased  OR  PURCHASED  vehicle  meeting  the prospective
 lessee's specifications. 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 lease OR PURCHASE transaction. If  the  amount
 of  any such fees, commissions or other valuable consideration the auto-
 mobile broker business expects to receive is unknown at the time of  the
 required  disclosure, the automobile broker business shall disclose: (a)
 whether it has a contract with any dealer, lessor or any other person or
 entity for the provision of assistance in effecting a lease OR  PURCHASE
 transaction;  [and]  (b)  [whether]  THAT the automobile broker business
 [may] SHALL be compensated by the dealer, lessor or any other person  or
 entity  for  any assistance in effecting such lease transaction; AND (C)
 THAT THE AMOUNT OF ANY SUCH FEES, COMMISSIONS OR OTHER VALUABLE  CONSID-
 ERATION  THE  AUTOMOBILE  BROKER BUSINESS RECEIVES SHALL BE DISCLOSED ON
 THE EXECUTED LEASE OR PURCHASE CONTRACT OR FINANCE AGREEMENT PURSUANT TO
 SECTION THREE HUNDRED TWO OR THREE HUNDRED THIRTY-SEVEN OF THE  PERSONAL
 PROPERTY LAW.
   §  10.  The  general  business  law is amended by adding a new section
 741-c to read as follows:
   § 741-C. PROHIBITED ACTS. AN AUTOMOBILE BROKER BUSINESS IS  PROHIBITED
 FROM:
   1.  ADVERTISING THAT SUCH AUTOMOBILE BROKER BUSINESS HAS ANY NEW AUTO-
 MOBILE IN STOCK;
 A. 3499--A                          6

   2. ADVERTISING ANY PRICE FIGURE IN AN ADVERTISEMENT UNLESS SUCH FIGURE
 REPRESENTS THE ACTUAL PRICE OF THE ADVERTISED AUTOMOBILE,  EXCLUSIVE  OF
 REGISTRATION AND TITLES, FEES AND TAXES;
   3.  STARTING  OR COMPLETING ANY FINANCING OR CREDIT APPLICATION OR THE
 LEASE OR PURCHASE AGREEMENT OF AN AUTOMOBILE ON BEHALF OF A CONSUMER  OR
 DEALER; AND
   4. ACCEPTING ANY PAYMENT OTHER THAN THAT DISCLOSED UNDER SECTION SEVEN
 HUNDRED  THIRTY-EIGHT  OR SEVEN HUNDRED FORTY-ONE-B OF THIS ARTICLE FROM
 ANYONE OTHER THAN THE DEALER.
   § 11. 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 attorney general. 1. 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  jurisdic-
 tion  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 thousand dollars and not more than three thousand  dollars  for
 each  violation.  In  connection with any such proposed application, 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.  THE  PROVISIONS  OF THIS ARTICLE MAY BE ENFORCED CONCURRENTLY BY A
 MUNICIPAL CONSUMER AFFAIRS OFFICE.
   § 12. Severability. If any clause, sentence,  paragraph,  subdivision,
 section  or part of this act shall be adjudged by any court of competent
 jurisdiction to be invalid, such judgment shall not affect,  impair,  or
 invalidate the remainder thereof, but shall be confined in its operation
 to the clause, sentence, paragraph, subdivision, section or part thereof
 directly  involved  in the controversy in which such judgment shall have
 been rendered. It is hereby declared to be the intent of the legislature
 that this act would have been enacted even if  such  invalid  provisions
 had not been included herein.
   §  13.  This  act  shall  take effect on the one hundred eightieth day
 after it shall have become a law.  Effective immediately, the  addition,
 amendment  and/or  repeal  of  any  rule or regulation necessary for the
 implementation of this act on its effective date are  authorized  to  be
 made and completed on or before such effective date.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3499--B
                                                          Cal. No. 93
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2023
                                ___________
 
 Introduced by M. of A. CARROLL, STIRPE, REYES, TAYLOR, DICKENS, DeSTEFA-
   NO,  RAMOS, MIKULIN, SAYEGH, SMITH, WILLIAMS, COOK, SEAWRIGHT, REILLY,
   MILLER, ROZIC, EPSTEIN, CRUZ, STECK, RA, BENEDETTO, JACOBSON, HYNDMAN,
   THIELE, LAVINE, STERN, JONES, BUTTENSCHON, BRAUNSTEIN,  FALL,  PAULIN,
   L. ROSENTHAL,  WALLACE,  DILAN,  AUBRY,  JEAN-PIERRE, DARLING, WALKER,
   ANDERSON, JACKSON, RAGA, BURGOS -- Multi-Sponsored  by  --  M.  of  A.
   FITZPATRICK,  HEVESI, SIMON -- read once and referred to the Committee
   on Consumer Affairs and Protection -- reported  and  referred  to  the
   Committee  on Codes -- reported and referred to the Committee on Rules
   -- ordered to a third reading -- amended on the special order of third
   reading, ordered reprinted as amended,  retaining  its  place  on  the
   special  order of third reading -- ordered to a third reading, amended
   and ordered reprinted, retaining its place on the order of third read-
   ing
 
 AN ACT to amend the general business law and  the  vehicle  and  traffic
   law, in relation to automobile 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]  SUCH  AUTOMOBILE
 BROKER BUSINESS will provide a service of purchasing, arranging, assist-
 ing, facilitating or effecting the purchase or lease of an automobile as
 agent,  broker, or intermediary for a consumer. "Automobile broker busi-
 ness" does not include any person registered as  a  dealer  pursuant  to
 article sixteen of the vehicle and traffic law, ONLY WHEN OPERATING IN A
 MANNER  PURSUANT TO SUCH REGISTRATION UNDER ARTICLE SIXTEEN OF THE VEHI-
 CLE AND TRAFFIC LAW, ANY PERSON REGISTERED UNDER  SECTION  FOUR  HUNDRED
 FIFTEEN-A  OF  THE  VEHICLE  AND  TRAFFIC  LAW, ONLY WHEN OPERATING IN A
 MANNER DESCRIBED IN SECTION FOUR HUNDRED FIFTEEN-A OF  THE  VEHICLE  AND
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00498-03-4
 A. 3499--B                          2
 
 TRAFFIC LAW, 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 dealer while acting for  such  dealer,  or  any
 person  who  sells, offers for sale or lease or acts as agent, broker or
 intermediary in effecting the purchase or lease of three or fewer  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 of the general business law is amended  by  adding  a
 new subdivision 4 to read as follows:
   4.  "PLACE OF BUSINESS" MEANS A DESIGNATED PERMANENT LOCATION AT WHICH
 THE BUSINESS OF THE AUTOMOBILE BROKER BUSINESS IS CONDUCTED.
   § 3. The general business law is amended by adding a new section 736-b
 to read as follows:
   § 736-B. PLACE OF BUSINESS REQUIRED. 1.  NO  PERSON  SHALL  ENGAGE  IN
 BUSINESS  AS  AN AUTOMOBILE BROKER BUSINESS, AS DEFINED IN SECTION SEVEN
 HUNDRED THIRTY-SIX OF THIS ARTICLE, WITHOUT MAINTAINING A PLACE OF BUSI-
 NESS.
   2. THE 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 SHALL BE  AMENDED  WITHIN  THIRTY
 DAYS  OF A CHANGE OF ADDRESS OF AN AUTOMOBILE BROKER BUSINESS TO REFLECT
 THE NEW ADDRESS OF ITS PLACE OF BUSINESS.
   § 4. Subdivision 1 and the  opening  paragraph  of  subdivision  2  of
 section  738  of the general business law, subdivision 1 and the opening
 paragraph of subdivision 2 as added by chapter 616 of the laws of  1988,
 the  opening  paragraph and paragraph (e) of subdivision 1 as amended by
 chapter 28 of the laws of 2018, and paragraphs (f) and (g)  of  subdivi-
 sion  1  as  amended  by chapter 477 of the laws of 2017, are amended to
 read as follows:
   1. PRIOR TO THE PURCHASE OR LEASE OF AN AUTOMOBILE, THE  CONSUMER  AND
 THE  AUTOMOBILE  BROKER  BUSINESS  SHALL  ENTER  INTO  A CONTRACT. Every
 contract between a consumer and an automobile broker  business  for  the
 purchase  OR LEASE of an automobile shall be in writing, shall be dated,
 shall contain the street address of the PLACE OF BUSINESS OF THE automo-
 bile broker business, THE REGISTRATION NUMBER ISSUED TO  THE  AUTOMOBILE
 BROKER  BUSINESS PURSUANT TO SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE
 AND TRAFFIC LAW and THE NAME AND ADDRESS OF 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:
   (a)  A complete description of the automobile and each option, if any,
 ordered; a statement of whether the automobile is or  will  be  manufac-
 tured  in accordance with United States specifications and is or will be
 certified by the manufacturer as such; if the automobile is not or  will
 not be manufactured in accordance with United States safety and environ-
 mental  specifications,  and  the  consumer  has retained the automobile
 broker business to arrange for the modification  of  the  automobile  to
 meet  such  specifications, the name and street address of the modifica-
 tion facility and a statement in immediate proximity to such information
 that the automobile broker business assumes full financial  responsibil-
 ity  that  the  automobile  will be properly modified to meet all United
 States safety and environmental specifications.
 A. 3499--B                          3
 
   (b) The price of the automobile including any options ordered. If  the
 price set forth is an estimated price, a statement in immediate proximi-
 ty  to  the price that the price is an estimated price only and that the
 consumer has the right to cancel the contract  and  to  receive  a  full
 refund  if the final price exceeds the estimated price by more than five
 percent.
   (c) The estimated delivery date of the automobile  and  the  place  of
 delivery  and a statement in immediate proximity to the estimated deliv-
 ery date that, if the automobile has not been  delivered  in  accordance
 with  the  contract within thirty days following such estimated delivery
 date, the consumer has the right to cancel the contract and to receive a
 full refund, unless the delay in delivery is attributable to the consum-
 er.
   (d) A statement of whether or not the manufacturer's warranty accompa-
 nying the automobile is the same warranty as that furnished to  purchas-
 ers  of  that  make  automobile from an authorized dealer located in the
 United States.
   (e) A STATEMENT THAT THE BROKER SHALL ONLY ACCEPT  PAYMENT  FOR  THEIR
 SERVICES FROM EITHER THE DEALER SELLING OR LEASING THE AUTOMOBILE OR THE
 BUYER OR LESSEE OF THE AUTOMOBILE, BUT MAY NOT ACCEPT PAYMENT FROM BOTH.
   (F) A STATEMENT THAT THE CONSUMER HAS THE OPTION TO TAKE DELIVERY OF A
 MOTOR VEHICLE AT THE SELLING OR LEASING DEALERSHIP.
   (G)  A  description  of  any  other services and an itemization of the
 charges for each. Such description shall include disclosure of the auto-
 mobile dealer from which the automobile was purchased OR LEASED, as well
 as all fees, commissions or other valuable  considerations  paid  by  an
 automobile dealer to the automobile broker business for selling, arrang-
 ing, assisting or effecting the sale OR LEASE of an automobile as agent,
 broker, or intermediary between the consumer and the automobile dealer.
   [(f)]  (H)  If  a  consumer  elects to cancel the contract pursuant to
 paragraph (b) or (c) of this subdivision, he  or  she  shall  notify  in
 writing  the  automobile broker business at the address specified in the
 contract. The automobile broker business shall make a full refund to the
 consumer within ten business days following receipt of the request for a
 refund.   The contract shall contain  a  statement,  setting  forth  the
 consumer's  right to cancel the contract under paragraphs (b) and (c) of
 this subdivision and the refund obligations  of  the  automobile  broker
 business.
   [(g)]  (I)  The statements required by paragraphs (a), (b), (c), [and]
 (E), (f), (G) AND (H) of this subdivision shall be printed in  at  least
 [ten] TWELVE point bold type.
   The  contract  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
 [ten] TWELVE point type the following:
   § 5. Section 741-a of the general business law, as amended by  chapter
 477 of the laws of 2017, is amended to read as follows:
   §  741-a.  Advertising.  1. Automobile broker businesses shall clearly
 and conspicuously disclose the following in all  advertisements  in  any
 medium, and in any print advertisement such disclosures shall not appear
 in  any  footnotes  and  shall  be  situated in the top half of any such
 advertisement in an easily readable typeface:
   (a) That the automobile broker business is not a registered new  motor
 vehicle dealer but is a registered automobile broker business as defined
 in section four hundred fifteen of the vehicle and traffic law;
 A. 3499--B                          4
 
   (b)  The  registration number issued to the automobile broker business
 pursuant to section four hundred fifteen of the vehicle and traffic law;
   (c)  Whether any fees may be imposed by the automobile broker business
 for services rendered. Details of such compensation shall be provided by
 the automobile broker business upon request by the consumer; [and]
   (d) That no warranty repair services will be provided by  the  automo-
 bile broker business; AND
   (E)  THAT  THE  AUTOMOBILE  BROKER BUSINESS IS NOT AFFILIATED WITH ANY
 MANUFACTURER, DEALERSHIP, OR DEALERSHIP GROUP.
   2. THE OFFICIAL BUSINESS CERTIFICATE OF REGISTRATION SHALL BE  CLEARLY
 AND  CONSPICUOUSLY  DISPLAYED  AT THE PLACE OF BUSINESS OF AN AUTOMOBILE
 BROKER BUSINESS.
   § 6. The general business law is amended by adding a new section 741-c
 to read as follows:
   § 741-C. PRIVATE INFORMATION SECURITY. IN ADDITION TO THE REQUIREMENTS
 OF SUBDIVISION TWENTY-ONE OF SECTION FOUR HUNDRED FIFTEEN OF THE VEHICLE
 AND TRAFFIC LAW, AN AUTOMOBILE BROKER BUSINESS SHALL:
   1. 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;
   2.  HAVE  A SEPARATE MAILBOX AT SUCH PLACE OF BUSINESS FOR THE AUTOMO-
 BILE BROKER BUSINESS; AND
   3. HAVE A METHOD OF SECURING PERSONAL INFORMATION, INCLUDING  BUT  NOT
 LIMITED TO IN A LOCKING CABINET OR SAFE.
   §  7.  Section 415 of the vehicle and traffic law is amended by adding
 four new subdivisions 22, 23, 24 and 25 to read as follows:
   22. COMPLIANCE. ALL DEALERS AND AUTOMOBILE  BROKER  BUSINESSES  REGIS-
 TERED UNDER SUBDIVISIONS THREE AND THREE-A OF THIS SECTION SHALL CERTIFY
 AND  ATTEST TO COMPLIANCE WITH SECTIONS THREE HUNDRED NINETY-NINE-CC, AS
 ADDED BY CHAPTER 655 OF THE LAWS OF 2005, THREE HUNDRED  NINETY-NINE-DD,
 AS  ADDED BY CHAPTER 487 OF THE LAWS OF 2006, 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, EIGHT HUNDRED NINE-
 TY-NINE-BB  OF THE GENERAL BUSINESS LAW, AND PART THREE HUNDRED FOURTEEN
 OF TITLE SIXTEEN OF THE CODE OF FEDERAL REGULATIONS AS APPLICABLE.
   23. AUTOMOBILE BROKER RECORD  REQUIREMENTS.  (A)  FOR  EACH  COMPLETED
 TRANSACTION  AND  WITHIN  THREE  BUSINESS  DAYS OF CONSUMMATION THEREOF,
 AUTOMOBILE BROKERS SHALL MAINTAIN A PERMANENT  PAPER  FILE  RECORD  THAT
 CLEARLY  EVIDENCES  AND RECORDS THE MAKE, MODEL, YEAR, COLOR AND VEHICLE
 IDENTIFICATION NUMBER OF ALL PREVIOUSLY UNREGISTERED MOTOR VEHICLES  FOR
 WHICH  SUCH  BROKER  HAS  PROVIDED  A  SERVICE OF PURCHASING, ARRANGING,
 ASSISTING, FACILITATING OR EFFECTING THE PURCHASE OR LEASE OF SUCH MOTOR
 VEHICLE. SUCH RECORDS SHALL BE MAINTAINED FOR A  SIX-YEAR  PERIOD  AFTER
 CONSUMMATION  OF  THE  TRANSACTION.  SUCH RECORDS SHALL ALSO INCLUDE THE
 NAME AND ADDRESS OF THE PURCHASER OR LESSEE OF SUCH MOTOR  VEHICLE,  THE
 DATE OF SALE OR COMMENCEMENT OF LEASE WITH RESPECT TO SUCH MOTOR VEHICLE
 AND  THE NAME AND ADDRESS OF THE DEALER FROM WHICH THE MOTOR VEHICLE WAS
 PURCHASED OR LEASED.
   (B) THE RECORDS MAINTAINED BY THE AUTOMOBILE BROKER  BUSINESSES  SHALL
 INCLUDE  A  COPY  OF  THE  DEALER RATE SHEETS RECEIVED BY THE AUTOMOBILE
 BROKER FROM THE DEALERS THAT WERE RELIED UPON BY THE  AUTOMOBILE  BROKER
 IN CONNECTION WITH SUCH TRANSACTION.
   (C)  SUCH RECORDS SHALL BE OPEN FOR INSPECTION BY THE COMMISSIONER, OR
 HIS OR HER AGENT, DURING REASONABLE BUSINESS HOURS.
 A. 3499--B                          5
 
   (D) AS AN ALTERNATIVE TO PAPER FILE RECORDS, AN AUTOMOBILE BROKER  MAY
 USE A COMPUTER AND APPROPRIATE SOFTWARE TO MAINTAIN THE RECORDS REQUIRED
 TO  BE  KEPT BY THIS SECTION, PROVIDED ALL INFORMATION REQUIRED BY PARA-
 GRAPHS (A) AND (B) OF THIS SUBDIVISION ARE DULY RECORDED AND  MAINTAINED
 IN ACCORDANCE WITH THIS SUBDIVISION.
   24.  MAINTENANCE  RECORDS.  FOR  EACH SALE OR LEASE OF A MOTOR VEHICLE
 THAT INVOLVES AN AUTOMOBILE BROKER  BUSINESS,  THE  DEALER  MUST  OBTAIN
 EVIDENCE  OF  THE  AUTOMOBILE  BROKER  BUSINESS'  REGISTRATION  AND  THE
 BROKER'S REGISTRATION NUMBER AND MAINTAIN SUCH RECORDS IN THE DEAL JACK-
 ET FOR EACH TRANSACTION WHICH ALSO SHALL  CONTAIN  THE  PURCHASE  ORDER,
 COPIES OF THE TITLE AND REGISTRATION DOCUMENTS, THE BILL OF SALE AND THE
 RETAIL  INSTALLMENT  SALE  CONTRACT  REQUIRED  UNDER  ARTICLE TEN OF THE
 PERSONAL PROPERTY LAW OR THE RETAIL LEASE AGREEMENT REQUIRED UNDER ARTI-
 CLE NINE-A OF THE PERSONAL PROPERTY LAW.
   25. BROKER COMPENSATION. NO DEALER MAY  OFFER  OR  PAY  AN  AUTOMOBILE
 BROKER   BUSINESS  ANY  FEE,  OR  COMMISSION,  OTHER  THAN  COMPENSATION
 DISCLOSED PURSUANT  TO  SECTION  SEVEN  HUNDRED  THIRTY-EIGHT  OR  SEVEN
 HUNDRED FORTY-ONE-B OF THE GENERAL BUSINESS LAW OR SECTION THREE HUNDRED
 TWO  OR  THREE  HUNDRED  THIRTY-SEVEN  OF  THE  PERSONAL  PROPERTY  LAW;
 PROVIDED, HOWEVER, THAT THE AUTOMOBILE BROKER BUSINESS  MAY  NOT  ACCEPT
 ANY  SUCH  FEE  OR  COMMISSION FROM THE DEALER IF THE BROKER HAS OR WILL
 ACCEPT PAYMENT FROM THE BUYER OR LESSEE OF THE AUTOMOBILE.
   § 8. The general business law is amended by adding a new  section  745
 to read as follows:
   §  745.  PREEMPTION.  THE  PROVISIONS OF THIS ARTICLE AND SECTION FOUR
 HUNDRED FIFTEEN OF THE VEHICLE AND TRAFFIC LAW SHALL GOVERN THE REQUIRE-
 MENTS AND OBLIGATIONS WITH RESPECT TO  THE  AUTOMOBILE  BROKER  BUSINESS
 NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY. NO LOCAL OR MUNICIPAL LAW
 SHALL  BE  ENACTED WHICH SHALL IMPOSE ANY DIFFERENT OR OTHER OBLIGATIONS
 ON THE AUTOMOBILE BROKER BUSINESS INCLUDING A REQUIREMENT OF ANY FEE  OR
 LICENSE FOR THE AUTOMOBILE BROKER BUSINESS.
   § 9. 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.  An  automobile broker business shall provide a
 disclosure at the time such automobile broker business takes an order to
 search for  a  leased  OR  PURCHASED  vehicle  meeting  the  prospective
 lessee's specifications. 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 lease OR PURCHASE transaction. If the amount
 of any such fees, commissions or other valuable consideration the  auto-
 mobile  broker business expects to receive is unknown at the time of the
 required disclosure, the automobile broker business shall disclose:  (a)
 whether it has a contract with any dealer, lessor or any other person or
 entity  for the provision of assistance in effecting a lease OR PURCHASE
 transaction; [and] (b) [whether] THAT  the  automobile  broker  business
 [may]  SHALL be compensated by the dealer, lessor or any other person or
 entity for any assistance in effecting such lease transaction;  AND  (C)
 THAT  THE AMOUNT OF ANY SUCH FEES, COMMISSIONS OR OTHER VALUABLE CONSID-
 ERATION THE AUTOMOBILE BROKER BUSINESS RECEIVES, WHETHER FROM THE DEALER
 OR THE BUYER OF THE AUTOMOBILE, SHALL BE DISCLOSED ON THE EXECUTED LEASE
 OR PURCHASE CONTRACT OR FINANCE  AGREEMENT  PURSUANT  TO  SECTION  THREE
 HUNDRED TWO OR THREE HUNDRED THIRTY-SEVEN OF THE PERSONAL PROPERTY LAW.
   §  10.  The  general  business  law is amended by adding a new section
 741-d to read as follows:
 A. 3499--B                          6
 
   § 741-D. PROHIBITED ACTS. AN AUTOMOBILE BROKER BUSINESS IS  PROHIBITED
 FROM:
   1.  ADVERTISING THAT SUCH AUTOMOBILE BROKER BUSINESS HAS ANY NEW AUTO-
 MOBILE IN STOCK;
   2. ADVERTISING ANY PRICE FIGURE IN AN ADVERTISEMENT UNLESS SUCH FIGURE
 REPRESENTS THE ACTUAL PRICE OF THE ADVERTISED AUTOMOBILE,  EXCLUSIVE  OF
 REGISTRATION AND TITLES, FEES AND TAXES;
   3.  STARTING,  COMPLETING,  OR ANSWERING ANY PORTION OF A FINANCING OR
 CREDIT APPLICATION OR THE LEASE OR PURCHASE AGREEMENT OF AN  AUTOMOBILE,
 ON  BEHALF  OF A CONSUMER OR DEALER, WITHOUT INCLUDING ON OR AFFIXING TO
 SUCH APPLICATION OR AGREEMENT, THE NAME AND REGISTRATION NUMBER  OF  THE
 AUTOMOBILE BROKER BUSINESS; AND
   4. ACCEPTING ANY PAYMENT OTHER THAN THAT DISCLOSED UNDER SECTION SEVEN
 HUNDRED  THIRTY-EIGHT  OR  SEVEN  HUNDRED  FORTY-ONE-B  OF THIS ARTICLE,
 WHETHER FROM THE DEALER OR BUYER OF THE AUTOMOBILE.
   § 11. 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 attorney general. 1. 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  jurisdic-
 tion  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 thousand dollars and not more than three thousand  dollars  for
 each  violation.  In  connection with any such proposed application, 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.  THE  PROVISIONS  OF THIS ARTICLE MAY BE ENFORCED CONCURRENTLY BY A
 MUNICIPAL CONSUMER AFFAIRS OFFICE.
   § 12. Severability. If any clause, sentence,  paragraph,  subdivision,
 section  or part of this act shall be adjudged by any court of competent
 jurisdiction to be invalid, such judgment shall not affect,  impair,  or
 invalidate the remainder thereof, but shall be confined in its operation
 to the clause, sentence, paragraph, subdivision, section or part thereof
 directly  involved  in the controversy in which such judgment shall have
 been rendered. It is hereby declared to be the intent of the legislature
 that this act would have been enacted even if  such  invalid  provisions
 had not been included herein.
   §  13.  This  act  shall  take effect on the one hundred eightieth day
 after it shall have become a law.  Effective immediately, the  addition,
 amendment  and/or  repeal  of  any  rule or regulation necessary for the
 implementation of this act on its effective date are  authorized  to  be
 made and completed on or before such effective date.