Establishes that if financial loss has been made and a registrant or unregistered repair shop fails to comply with an order to pay restitution, the commissioner shall, by order, increase the amount of the penalty assessed.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1673
SPONSOR: Weprin TITLE OF BILL:
An act to amend the vehicle and traffic law, in relation to the payment
of restitution by registered and unregistered repair shops
PURPOSE OR GENERAL IDEA OF BILL:
To better ensure the payment of restitution by motor vehicle repair
shops to consumers.
SUMMARY OF SPECIFIC PROVISIONS:
The bill requires motor vehicle repair shops found to have committed
certain violations to pay restitution to consumers when ordered to do so
by the Department of Motor Vehicles upon a finding of financial loss to
such consumers. The bill also calls for an increase in any civil penalty
imposed for violations, if a repair shop fails to pay DMV-ordered resti-
tution, and allows the waiver of a civil penalty and/or suspension upon
payment of restitution.
JUSTIFICATION:
Consumers who have been harmed by negligence or fraud perpetrated by a
motor vehicle repair shop should be compensated. Under the Repair Shop
Registration Act, administrative law judges are authorized to order
Violators to pay civil penalties, pay the affected consumer restitution,
and/or suspend or revoke the shop's license to operate. The Act allows
judges to offer a more "attractive" option to violators often involving
lowered civil penalties and reduced license suspension periods - if the
violator agrees to pay the consumer the restitution ordered.
Unfortunately, there Ave been instances in which unscrupulous repair
shops fail to take this option within thirty days, leaving the judge
with no further authority to order the shop to pay restitution to the
consumer. Instead, the original civil penalty becomes due, and the
original suspension period applies. In this instance, the consumer is,no
better off then when he or she first filed a complaint with the Depart-
ment of Motor Vehicles. This bill would amend the Act to provide that
when a violation is found to have occurred consumer restitution, when
ordered by DMV, is required to be paid.
PRIOR LEGISLATIVE HISTORY:
02/09/17 referred to transportation
01/03/18 referred to transportation
05/09/18 reported referred to codes
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect on the first of November next succeeding the
date of enactment.
