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A09017 Summary:

BILL NOA09017
 
SAME ASNo Same As
 
SPONSORJenne
 
COSPNSRJaffee, Englebright, Santabarbara, Gottfried, Simon, Taylor, DenDekker, Colton, Pichardo, Braunstein, Steck, Harris
 
MLTSPNSR
 
Amd 395, V & T L
 
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.
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A09017 Actions:

BILL NOA09017
 
01/12/2018referred to transportation
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A09017 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9017
 
SPONSOR: Jenne
  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.on- lineregistration.us appear to be portals to official Department of Motor Vehicles webpages and, despite the mandatory but hard to find disclaim- er, 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: New bill.   FISCAL IMPLICATIONS: Minimal.   EFFECTIVE DATE: Immediately.
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A09017 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9017
 
                   IN ASSEMBLY
 
                                    January 12, 2018
                                       ___________
 
        Introduced  by M. of A. JENNE -- read once and referred 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:
 
     1    Section 1. Section 395 of the vehicle and traffic law, as  amended  by
     2  chapter 124 of the laws of 1974, is amended to read as follows:
     3    § 395. Certain  private  service  bureaus  to be licensed.   Except as
     4  otherwise provided herein, no person, firm, association  or  corporation
     5  shall, engage in the business of assisting for hire in securing licenses
     6  to  drive  motor  vehicles or registrations or titles of motor vehicles,
     7  nor shall any person, firm, association or corporation for  compensation
     8  give  instructions  as  to procuring licenses to drive motor vehicles or
     9  registrations or titles of motor vehicles, without being the holder of a
    10  license for such purpose issued by the commissioner of  motor  vehicles.
    11  An  applicant  for  a  license  shall furnish the commissioner with such
    12  information and such references as to moral character as he may  reason-
    13  ably  require.  Every application shall be accompanied by a fee of twen-
    14  ty-five dollars, which shall be regarded as an application fee and shall
    15  in no event be refunded. If an application be approved  by  the  commis-
    16  sioner,  the  applicant upon the payment of an additional fee of twenty-
    17  five dollars shall be granted a license which shall expire on the  thir-
    18  tieth  day  of June following the date of its issuance. The commissioner
    19  shall issue a license certificate to  each  licensee  which  certificate
    20  shall  be conspicuously displayed in the place of business of the licen-
    21  see, or, if the licensee has no place  of  business,  such  certificates
    22  shall  be  exhibited  at the request of any person. In case of the loss,
    23  mutilation or destruction of a certificate, the commissioner shall issue
    24  a duplicate upon proof of the facts and the payment  of  a  fee  of  one
    25  dollar.  The  refusal to issue a license may be reviewed by a proceeding
    26  under article seventy-eight of the civil practice law  and  rules.  Such
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13878-01-7

        A. 9017                             2
 
     1  license  shall  be renewed annually upon the payment of a fee of twenty-
     2  five dollars, such renewal to take effect on the first day  of  July  in
     3  each year.  Upon renewal, the commissioner may, in his discretion, issue
     4  a  license  which  shall be valid for a two year period. The fee for any
     5  such two year renewal shall be fifty dollars.
     6    No license shall be issued under this section nor shall any renewal of
     7  a license issued under this section be made for conducting business in a
     8  city having a population of fifty thousand or  more,  according  to  the
     9  latest  federal  census  if  the  place  of business of the licensee, or
    10  branch thereof, is within fifteen hundred feet of a building,  owned  or
    11  leased  by  the state, a county or a city, in which motor vehicle regis-
    12  trations or licenses to drive motor vehicles are issued to  the  public.
    13  The  said  distance  of fifteen hundred feet shall be measured along the
    14  public streets by the nearest route from  such  place  of  business,  or
    15  branch thereof, to such building. The provisions of this paragraph shall
    16  not  apply  to a holder of a certificate of registration issued pursuant
    17  to section four hundred fifteen of this chapter.
    18    No license shall be issued under this section nor shall any renewal of
    19  a license issued under this section be made for a person, firm,  associ-
    20  ation  or  corporation who engages in the business of assisting for hire
    21  in securing motor vehicle registrations or who, for  compensation,  give
    22  instructions as to procuring motor vehicle registrations. The provisions
    23  of this paragraph shall not apply to a holder of a license issued pursu-
    24  ant  to  section three hundred ninety-four of this article or the holder
    25  of a certificate of registration issued pursuant to section four hundred
    26  fifteen of this chapter.
    27    A licensee shall be subject to such reasonable regulations  concerning
    28  the  business  conducted  under  his  license  as  the  commissioner may
    29  prescribe and he shall permit the commissioner, or his  representatives,
    30  to  inspect  his place of business on any business day and shall furnish
    31  to the commissioner, or his representative, such information  concerning
    32  the conduct of the business as may be reasonably required.
    33    The  provisions  of subdivisions five and six of section three hundred
    34  ninety-four of this [chapter] article shall be applicable  with  respect
    35  to this section.
    36    The holder of a license issued pursuant to section three hundred nine-
    37  ty-four  of  this  [chapter]  article  or the holder of a certificate of
    38  registration issued pursuant to section four  hundred  fifteen  of  this
    39  chapter  shall not be required to secure a license under this section in
    40  order to conduct a business for which a  license  is  required  by  this
    41  section  but  any  such  licensee, or registrant, who shall conduct such
    42  business, shall be subject to the same visitation and regulation by  the
    43  commissioner with reference to such business as provided in this section
    44  with respect to a licensee under this section.
    45    As  used in this section the phrase "licenses to drive motor vehicles"
    46  includes the term "learners' permits".
    47    A violation of any of the provisions of this section shall  constitute
    48  a misdemeanor.
    49    § 2. This act shall take effect immediately.
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