§ 398-e. Suspension, revocation or refusal to issue registration;
civil penalty; restitution; surrender of certificate of registration. 1.
Suspension, revocation or refusal to issue registration or license. The
commissioner, or any person deputized by him, may deny the application
of any person for a certificate of registration or estimator's license
and may suspend or revoke the registration of any motor vehicle repair
shop or any estimator's license issued pursuant to this article or
refuse to issue a renewal thereof if he determines that such applicant,
registrant or licensee:

(a) has made a material false statement or concealed a material fact
in connection with his application;

(b) was the former holder of a certificate of registration issued
hereunder which was revoked or suspended by the commissioner;

(c) was, or that any officer, director, partner or stockholder holding
more than ten percent of the outstanding stock was an officer, director,
partner or stockholder holding more than ten percent of the outstanding
stock in a corporation or partnership, as the case may be, which was the
former holder of a certificate of registration issued hereunder which
was revoked or suspended by the commissioner;

(d) has failed to furnish satisfactory evidence of good character,
reputation and fitness;

(e) does not have a place of business as required by this article;

(f) is not the true owner of the repair shop, except in the case of a
franchise;

(g) has been guilty of fraud or fraudulent or deceptive practices;

(h) has been grossly negligent on two or more occasions within a
period of two years in the performance of any repair or adjustment
covered by this article, or has grossly overcharged on two or more
occasions within a period of two years for such repair or adjustment;

(i) has wilfully failed to comply with any of the provisions of this
article or the rules and regulations of the commissioner promulgated
hereunder;

(j) has knowingly issued a false or misleading estimate;

(k) has engaged in a course of conduct which unreasonably impedes or
delays a consumer's right to a fair recovery pursuant to the provisions
of an automobile insurance policy, the insurance law or regulations
issued by the superintendent of financial services governing the
evaluation and adjustments of claims; or

(l) has wilfully violated paragraph (b) of subdivision thirty-one,
subdivision thirty-one-a or subdivision thirty-one-b of section three
hundred seventy-five of this chapter.

For the purposes of paragraphs (g), (h), (i), (j) and (k) of this
subdivision, it shall be presumed that the actions of any employee of a
motor vehicle repair shop shall be attributable to, and deemed to be the
actions of, such motor vehicle repair shop.

2. Civil penalty; suspension for failure to pay. (a) The commissioner,
or any person deputized by him, may, by order, require a registrant or
an unregistered repair shop to pay to the people of this state a penalty
as hereinafter provided. Such penalty may be imposed in addition to or
in lieu of revoking or suspending the certificate of registration of a
registrant in accordance with the provisions of this article, or such a
penalty may be imposed upon a finding that a registrant or an
unregistered repair shop: (i) has been grossly negligent in the
performance of any repair or adjustment covered by this article; or (ii)
has grossly overcharged for such repair or adjustment.

(b) Such penalty for a first violation shall be in a sum not exceeding
seven hundred fifty dollars for each violation found to have been
committed, and for a second or subsequent violation not arising out of
the same incident both of which were committed within a period of thirty
months, be in a sum of not more than one thousand dollars for each
violation found to have been committed; provided, however, the penalty
for each and any violation of paragraph (g) of subdivision one of this
section found to have been committed shall be no less than three hundred
and fifty dollars and no more than one thousand dollars, except that if
a finding of financial loss has been made pursuant to subdivision three
of this section, the amount of such penalty may be increased by the
amount of financial loss so found.

(c) Upon the failure of a registrant or an unregistered repair shop to
pay such penalty, or, where the order so permits, to make restitution as
provided in subdivision three of this section, within thirty days after
the mailing of such order, postage prepaid, registered or certified, and
addressed to the last known place of business of such registrant or
unregistered repair shop, unless such order is stayed as provided in
subdivision three of section three hundred ninety-eight-f of this
chapter, the commissioner may revoke the certificate of registration of
such registrant or may suspend the same for such period as he may
determine or may seek to recover unpaid civil penalties in a civil
action in the name of the commissioner. Civil penalties assessed under
this subdivision shall be paid to the commissioner for deposit into the
state treasury.

(d) In addition, as an alternative to such civil action and provided
that no proceeding for judicial review shall then be pending and the
time for initiation of such proceeding shall have expired, the
commissioner may file with the county clerk of the county in which the
registrant is located a final order of the commissioner containing the
amount of the penalty assessed. The filing of such final order shall
have the full force and effect of a judgment duly docketed in the office
of such clerk and may be enforced in the same manner and with the same
effect as that provided by law in respect to executions issued against
property upon judgments of a court of record.

3. Restitution; assessment. (a) Upon a determination that a registrant
or an unregistered repair shop has done or failed to do any act for
which suspension of the registrant's registration or a civil penalty
against the registrant or unregistered repair shop could be imposed, the
person making such determination may make a finding of financial loss to
any complainant or complainants resulting from the actions of the
registrant or unregistered repair shop. The person making such finding
may provide that if the registrant or unregistered repair shop makes
restitution to the complainant or complainants for the amount or amounts
so found, that payment of such restitution may be substituted in lieu of
any suspension or civil penalty, or a specified portion thereof imposed
upon the registrant or unregistered repair shop. However, a finding of
financial loss shall only be made if the complainant (i) agrees to
accept the amount so found, if offered by the registrant or unregistered
repair shop, and (ii) is not a party to any litigation which is pending
or which has gone to judgment in relation to the same matter in any
civil court.

(b) The amount of financial loss which may be found and proposed as
restitution shall be limited to an amount necessary to repair the
vehicle or vehicles in question and/or any amount of overcharge which
may be found. Neither punitive nor incidental damages may be included in
the finding of financial loss.

(c) If payment of restitution to the complainant is authorized in lieu
of all or a portion of a suspension or civil penalty, in order for the
registrant or unregistered repair shop to exercise the option to make
such payment, such payment must be made by means of a certified check or
money order payable to the complainant or complainants delivered to an
office of the department as directed by the commissioner or his agent
within thirty days of the date of notice of suspension and/or civil
penalty. Upon receipt of such certified check or money order, the
department shall forward the same to the complainant or complainants. In
the event that the registrant or unregistered repair shop should fail to
make payment for restitution within such thirty days, but, at a later
time, pays such civil penalty, the department shall deduct from such
civil penalty payment the amount assessed for restitution, and shall
mail a check for such amount to the complainant or complainants.

(d) If payment of restitution may be substituted in lieu of a civil
penalty or portion of a civil penalty, and the registrant or
unregistered repair shop does not exercise the option to make such
payment, the civil penalty becomes due as provided in subdivision two of
this section and the provisions of that subdivision relating to
suspension of registration and recovery of civil penalties shall apply.

(e) Any payment made in compliance with such a finding of financial
loss shall not preclude any civil action which may be brought by the
complainant, registrant or unregistered repair shop, and any such
finding may be considered but shall not be binding upon any court before
which any such action is brought.

4. Surrender of certificate of registration. Upon the suspension or
revocation of a certificate of registration by the commissioner and the
issuance of notice thereof, the registrant shall immediately deliver the
certificate of registration to the commissioner or to any peace officer,
acting pursuant to his special duties, or police officer directed by the
commissioner to secure possession thereof, or agent of the commissioner,
displaying authorization to act in such capacity along with a certified
copy of the order revoking or suspending such registration, and the
failure to so deliver the certificate within thirty days shall
constitute a traffic infraction and shall be punishable in the manner
provided in section eighteen hundred of this chapter.