§ 398-i. Unregistered operation; procedures and penalties. 1. The
commissioner or any person deputized by him shall hear and determine any
allegation that a person has operated a repair shop without being
registered as required by subdivision one of section three hundred
ninety-eight-c of this chapter. Upon a determination that a person has
so operated, the commissioner or person deputized by him shall assess
civil penalties as provided in subdivisions two and three of this
section.

2. Except as provided in subdivision three, any person who operates a
repair shop without being registered shall be required to pay to the
people of this state a civil penalty in the sum of one thousand dollars.
However, any such person against whom such penalty has been assessed may
avoid all but five hundred dollars of such penalty by obtaining a
registration as required by this article, provided that application for
such registration is made not more than ten days after the imposition of
such penalty.

3. (a) Any person who operates a repair shop while his repair shop
registration is revoked or suspended, shall pay to the people of this
state a civil penalty in the sum of one thousand dollars. Such civil
penalty may not be avoided.

(b) Any person who operates a repair shop without being registered as
required by subdivision one of section three hundred ninety-eight-c of
this chapter who has previously had a civil penalty assessed for
unregistered operation shall pay to the people of this state a civil
penalty in the sum of one thousand dollars. Such civil penalty may not
be avoided.

4. (a) If it is determined that a person has operated a repair shop
without being registered as required by this article, such determination
may be appealed to the review board established pursuant to section
three hundred ninety-eight-f of this chapter. The procedure established
in such section shall apply to such appeals provided that no appeal
shall be accepted or determined by the review board unless the civil
penalty assessed against such person has been paid as prescribed in
subdivision two of this section.

(b) The requirement that the civil penalty be paid before an appeal
can be accepted or determined by the review board shall not apply to an
appeal by a repair shop from a determination made pursuant to
subdivision three of this section.

(c) If the review board finds that the person has not been operating
a repair shop without being registered, any civil penalty which has been
paid shall be refunded, any premises ordered to be sealed pursuant to
subdivision five-a of this section shall be unsealed, and if such board
determines that registration as a repair shop is not required and a
registration has been obtained to avoid the civil penalty assessed, the
registration shall be cancelled and, notwithstanding the provisions of
paragraph (a) of subdivision three of section three hundred
ninety-eight-c of this chapter, all fees paid for such registration
shall be refunded.

5. Civil penalties assessed under this section 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. 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.

5-a. Sealing of the premises. (a) In addition to any other penalties
set forth in this article, the commissioner, after notice to the owner
of the premises and the owner of the motor vehicle repair shop and the
opportunity for a hearing, shall be authorized to

(i) order the sealing of the premises upon which any person has
operated a motor vehicle repair shop without being registered, provided
that such premises is primarily used for such activity and provided,
further, that the commissioner shall not seal any dwelling unit or other
space lawfully used solely for residential purposes;

(ii) order that any devices, items or goods utilized in the operation
of a motor vehicle repair shop and relating to such activity for which a
registration for operation is required but has not been obtained
pursuant to the provisions of this article shall be removed, sealed or
otherwise made inoperable; and

(iii) order the removal of motor vehicles on the premises to a garage,
pound or other place of safety. For purposes of this article, the term
"owner of the premises" shall mean the owner, lessor, lessee or
mortgagee of the building, erection or place wherein any person is
operating an unregistered motor vehicle repair shop. The person in whose
name the real estate affected by the orders of the commissioner is
recorded in the office of the city register or the county clerk, as the
case may be, shall be presumed to be the owner thereof.

(b) The lack of knowledge of, acquiescence or participation in or
responsibility for, the operation of an unregistered motor vehicle
repair shop, on the part of the owner of the premises and/or the owner
of the motor vehicle repair shop, shall not be a defense by such owners.

(c) Orders of the commissioner issued pursuant to paragraph (a) of
this subdivision shall be conspicuously posted at the premises upon
which unlawful operation occurred.

(d) An order of the commissioner issued pursuant to paragraph (a) of
this subdivision shall be stayed with respect to any person who, prior
to service of the notice required by such paragraph, has submitted a
complete application, in proper form and accompanied by the requisite
fee, for a certificate of registration to operate a motor vehicle repair
shop or a renewal thereof, while the application is pending.

(e) Ten days after the posting of an order issued pursuant to
paragraph (a) of this subdivision, and upon the written directive of the
commissioner, officers and employees of the department and police
officers of any appropriate law enforcement agency shall be authorized
to act upon and enforce such order. The commissioner may take such steps
as are lawful and necessary to prevent the removal from the premises of
any devices, items, goods or personal property used in the conduct of a
motor vehicle repair shop business during such ten day period.

(f) (i) Any devices, items, goods or motor vehicles removed pursuant
to the provisions of subparagraphs (ii) and (iii) of paragraph (a) of
this subdivision shall be stored in a garage, pound or other place of
safety and the owner or other person lawfully entitled to the possession
of such devices, items, goods or motor vehicles may be charged with
reasonable costs for removal and storage payable prior to the release of
such devices, items, goods or motor vehicles to such owner or such other
person.

(ii) The commissioner shall, by first class mail, notify the
registered owner of any motor vehicle removed pursuant to subparagraph
(iii) of paragraph (a) of this subdivision within five business days of
the removal, of the location of such motor vehicle and the actions
necessary to recover such motor vehicle.

(iii) The owner or other person lawfully entitled to reclaim the
devices, items, goods or motor vehicles removed pursuant to this section
shall reclaim such devices, items, goods or motor vehicles within ninety
days of their removal, or such devices, items, goods or motor vehicles
shall be subject to forfeiture upon notice and judicial determination in
accordance with the provisions of law. Upon forfeiture the commissioner
shall, upon a public notice of at least five days, sell such forfeited
devices, items, goods or motor vehicles at public sale. The net
proceeds of such sale, after deduction of the lawful expenses incurred,
shall be paid into the general fund.

(iv) Lessors of devices, items, goods or personal property removed
pursuant to the provisions of subparagraph (ii) of paragraph (a) of this
subdivision may reclaim leased devices, items, goods or personal
property upon presentment of proof that the lessor is not otherwise
involved, directly or indirectly, in the ownership or operation of such
motor vehicle repair shop and that the lessee is in breach of the lease
or in default of payments, and upon payment of any reasonable costs
imposed for the removal and storage of such devices, items, goods or
personal property pursuant to this subdivision.

(g) The commissioner shall order any premises which are sealed
pursuant to paragraph (a) of this subdivision to be unsealed upon:

(i) payment of any and all fines, penalties and restitution; and

(ii) presentment of proof that the required registration has been
obtained for operation of a motor vehicle repair shop on the premises,
or proof satisfactory to the commissioner, submitted by the owner of the
premises, that such premises will not be used in violation of this
article.

(h) In addition to any fines, penalties or actions taken with respect
to a motor vehicle repair shop and the persons operating, providing
equipment or otherwise involved in the operations of such shop, the
commissioner may also take action with respect to the owner of the
premises where such shop has operated or is operating as provided in
this paragraph. Upon a finding by the commissioner, after notice and the
opportunity for a hearing, that an unregistered motor vehicle repair
shop has been operated at the same premises on two or more separate
occasions within eighteen months resulting in two or more separate
determinations by the commissioner of a violation of this section with
respect to such premises, and that the owner of the premises knowingly
allowed such operation, the commissioner may impose upon such owner of
the premises a civil penalty in an amount not to exceed fifteen thousand
dollars, or may order the sealing of the premises for not more than one
hundred eighty days, or both such actions.

(i) Nothing contained herein shall be construed to authorize the
commissioner to execute an order issued pursuant to this subdivision
without the presence and assistance of a police officer of an
appropriate law enforcement agency.

(j) Removal of the seal on any premises sealed pursuant to the
provisions of this subdivision shall constitute a misdemeanor.

6. No allegation of unregistered operation as a repair shop shall be
heard or determined unless notice of such allegation has been mailed to
such person within two years after the date of the alleged unregistered
operation.