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S05847 Text:

                STATE OF NEW YORK
                               2023-2024 Regular Sessions
                    IN SENATE
                                     March 20, 2023
        Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Transportation
        AN ACT to amend the vehicle and traffic law, in  relation  to  requiring
          retail  motor vehicle dealers to disclose to purchasers any markups in
          the cost of a motor vehicle as the result of financing the cost there-
          of; and to amend the financial services law, in relation to  authoriz-
          ing  the  financial frauds and consumer protection unit to study motor
          vehicle dealer price markups
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Section  415 of the vehicle and traffic law is amended by
     2  adding a new subdivision 3-b to read as follows:
     3    3-b. Retail dealer financing markup.  a.  Every  retail  dealer  shall
     4  disclose  to each purchaser of a motor vehicle, at the time of sale, any
     5  markups in the cost of such motor vehicle related to the  entry  into  a
     6  retail installment contract, loan agreement or other financing agreement
     7  for  the  vehicle pursuant to article nine of the personal property law.
     8  The failure of any retail dealer to comply with the provisions  of  this
     9  paragraph  shall  be grounds for the department to suspend or revoke the
    10  registration issued to such dealer pursuant to this section.
    11    b. Upon violation of the provisions of paragraph a  of  this  subdivi-
    12  sion,  an  aggrieved purchaser shall be entitled to compensatory damages
    13  equal to the financing markup, and reasonable attorney's fees.
    14    § 2. Section 404 of the financial services law is amended by adding  a
    15  new subsection (d) to read as follows:
    16    (d)(1) The financial frauds and consumer protection unit is authorized
    17  to  conduct a study of the patterns and practices of motor vehicle price
    18  markups by motor  vehicle  dealers  to  identify  problematic  practices
    19  including, but not limited to, race discrimination, and make recommenda-
    20  tions for the elimination of such problematic practices.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 5847                             2
     1    (2) The financial frauds and consumer protection unit shall submit the
     2  findings  and  recommendations of its study, conducted pursuant to para-
     3  graph one of this subsection, to the governor, the  temporary  president
     4  of the senate, the speaker of the assembly, and the chairs of the senate
     5  and assembly banks committees.
     6    §  3. This act shall take effect on the first of January next succeed-
     7  ing the date on which it shall have become a law.
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