STATE OF NEW YORK
________________________________________________________________________
9002
IN ASSEMBLY
January 10, 2018
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Consumer Affairs and Protection
AN ACT to amend the general business law and the vehicle and traffic
law, in relation to requiring automobile brokers to be licensed; and
to amend a chapter of the laws of 2017, amending the general business
law and the vehicle and traffic law relating to requiring automobile
brokers to be licensed, as proposed in legislative bills numbers S.
5380-B and A. 6884-B, in relation to manufacturers and distributors
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 736 of the general business law,
2 as amended by a chapter of the laws of 2017, amending the general busi-
3 ness law and the vehicle and traffic law relating to requiring automo-
4 bile brokers to be licensed, as proposed in legislative bills numbers S.
5 5380-B and A. 6884-B, is amended to read as follows:
6 1. "Automobile broker business" means any person who, for a fee,
7 commission or other valuable consideration, regardless of whether such
8 fee, commission, or consideration is paid directly by a consumer, offers
9 to provide, provides, or represents that he or she will provide a
10 service of purchasing, arranging, assisting, facilitating or effecting
11 the purchase or lease of an automobile as agent, broker, or intermediary
12 for a consumer. "Automobile broker business" does not include any person
13 registered as a dealer pursuant to article sixteen of the vehicle and
14 traffic law nor any bona fide employee of a registered dealer while
15 acting for such dealer, or any person who sells, offers for sale or
16 lease or acts as agent, broker or intermediary in effecting the purchase
17 or lease of three or fewer automobiles in any calendar year[, or any
18 motor vehicle franchisor, manufacturer, or distributor registered under
19 article sixteen of the vehicle and traffic law who sells or leases new
20 motor vehicles to employees, immediate family members of employees,
21 retirees, or immediate family members of retirees as authorized by para-
22 graph (y) of subdivision two of section four hundred sixty-three of the
23 vehicle and traffic law], any national service which aggregates informa-
24 tion for consumers, but does not otherwise have contact with consumers,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10395-08-8
A. 9002 2
1 or any motor vehicle franchisor, manufacturer, or distributor registered
2 under article sixteen of the vehicle and traffic law.
3 § 2. Paragraph e of subdivision 1 of section 738 of the general busi-
4 ness law, as amended by a chapter of the laws of 2017, amending the
5 general business law and the vehicle and traffic law relating to requir-
6 ing automobile brokers to be licensed, as proposed in legislative bills
7 numbers S. 5380-B and A. 6884-B, is amended to read as follows:
8 (e) A description of any other services and an itemization of the
9 charges for each. Such description shall include disclosure of the auto-
10 mobile dealer from which the automobile was purchased [or leased], as
11 well as all fees, commissions or other valuable considerations paid by
12 an automobile dealer to the automobile broker business for selling,
13 arranging, assisting or effecting the sale [or lease] of an automobile
14 as agent, broker, or intermediary between the consumer and the automo-
15 bile dealer.
16 § 3. The opening paragraph of subdivision 1 of section 738 of the
17 general business law, as added by chapter 616 of the laws of 1988, is
18 amended and a new subdivision 4 is added to read as follows:
19 Every contract between a consumer and an automobile broker business
20 for the purchase of an automobile shall be in writing, shall be dated,
21 shall contain the street address of the automobile broker business and
22 the consumer and shall be signed by the consumer and by the automobile
23 broker business. Every contract shall comply with the requirements set
24 forth in this section and contain the following:
25 4. An automobile broker business in any transaction involving the
26 lease of a vehicle shall provide the retail lessee with a retail lease
27 agreement as provided for in section three hundred thirty-seven of the
28 personal property law. The automobile broker shall provide a written
29 disclosure of the amount of any fee, commission or other consideration
30 paid or expected to be paid by the lessor to the automobile broker busi-
31 ness in connection with a transaction involving the lease of a vehicle.
32 Such disclosure shall be signed by the retail lessee. The automobile
33 broker business shall provide the retail lessee with a signed copy of
34 such disclosure together with the retail lease agreement referenced
35 herein.
36 § 4. The general business law is amended by adding a new section 741-b
37 to read as follows:
38 § 741-b. Disclosure. An automobile broker business shall provide a
39 disclosure at the time such automobile broker business takes an order to
40 search for a leased vehicle meeting the prospective lessee's specifica-
41 tions. Such disclosure shall provide the amount of any fees, commis-
42 sions or other valuable consideration the automobile broker business
43 expects to receive, if known, from a dealer, lessor or any other person
44 or entity for any assistance the automobile broker business provides in
45 effecting the lease transaction. If the amount of any such fees, commis-
46 sions or other valuable consideration the automobile broker business
47 expects to receive is unknown at the time of the required disclosure,
48 the automobile broker business shall disclose: (a) whether it has a
49 contract with any dealer, lessor or any other person or entity for the
50 provision of assistance in effecting a lease transaction; and (b) wheth-
51 er the automobile broker business may be compensated by the dealer,
52 lessor or any other person or entity for any assistance in effecting
53 such lease transaction.
54 § 5. Subdivision 6 of section 415 of the vehicle and traffic law, as
55 amended by section 1-b of part A of chapter 63 of the laws of 2005, is
56 amended to read as follows:
A. 9002 3
1 6. Fees. Every original application for registration as a dealer,
2 automobile broker or transporter shall be accompanied by an application
3 fee of thirty-seven dollars and fifty cents, which shall in no event be
4 refunded. The annual fee for registration as a dealer, automobile broker
5 or transporter or for renewal thereof shall be two hundred twenty-five
6 dollars. The annual fee for any other registration under this section
7 shall be fifty dollars. However, the commissioner may, in his
8 discretion, issue a renewal of either registration for a period of two
9 years. The fee for a two-year renewal shall be twice the annual fee. The
10 annual fee for dealer or transporter number plates shall be twenty
11 dollars for each set. If the commissioner issues to dealers a document
12 which is required to be used by a dealer to sell or transfer a vehicle,
13 the fee for the issuance of each such document shall be five dollars.
14 There shall be no refund of registration fee or fees for number plates
15 in the event of suspension, revocation or voluntary cancellation of
16 registration. The fee for any such transfer document issued by the
17 commissioner shall be refunded only upon the surrender of such document
18 upon voluntary cancellation of registration.
19 § 6. Subdivision 6 of section 415 of the vehicle and traffic law, as
20 amended by chapter 7 of the laws of 2000, is amended to read as follows:
21 6. Fees. Every original application for registration as a dealer,
22 automobile broker or transporter shall be accompanied by an application
23 fee of twenty-five dollars, which shall in no event be refunded. The
24 annual fee for registration as a dealer, automobile broker or transpor-
25 ter or for renewal thereof shall be one hundred fifty dollars. The annu-
26 al fee for any other registration under this section shall be fifty
27 dollars. However, the commissioner may, in his discretion, issue a
28 renewal of either registration for a period of two years. The fee for a
29 two-year renewal shall be twice the annual fee. The annual fee for deal-
30 er or transporter number plates shall be twenty dollars for each set. If
31 the commissioner issues to dealers a document which is required to be
32 used by a dealer to sell or transfer a vehicle, the fee for the issuance
33 of each such document shall be one dollar. There shall be no refund of
34 registration fee or fees for number plates in the event of suspension,
35 revocation or voluntary cancellation of registration. The fee for any
36 such transfer document issued by the commissioner shall be refunded only
37 upon the surrender of such document upon voluntary cancellation of
38 registration.
39 § 7. A chapter of the laws of 2017, amending the general business law
40 and the vehicle and traffic law relating to requiring automobile brokers
41 to be licensed, as proposed in legislative bills numbers S. 5380-B and
42 A. 6884-B, is amended by adding a new section 9-a to read as follows:
43 § 9-a. Nothing contained within this act shall be deemed to grant a
44 manufacturer or distributor the ability to do anything that would be
45 prohibited under article 16 or article 17-A of the vehicle and traffic
46 law.
47 § 8. This act shall take effect on the same date and in the same
48 manner as a chapter of the laws of 2017, amending the general business
49 law and the vehicle and traffic law relating to requiring automobile
50 brokers to be licensed, as proposed in legislative bills numbers S.
51 5380-B and A. 6884-B, takes effect; provided that the amendments to
52 subdivision 6 of section 415 of the vehicle and traffic law made by
53 section five of this act shall be subject to the expiration and rever-
54 sion of such subdivision pursuant to section 13 of part U1 of chapter 62
55 of the laws of 2003, as amended, when upon such date the provisions of
56 section six of this act shall take effect.
