Bill Text: NY A08166 | 2015-2016 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Requires used motor vehicle dealers to have a $20,000 surety bond if they sell 50 or less cars a year, and a $100,000 surety bond if they sell more than 50 cars a year.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-09-29 - signed chap.342 [A08166 Detail]

Download: New_York-2015-A08166-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         8166
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                     June 10, 2015
                                      ___________
       Introduced by M. of A. CRESPO -- read once and referred to the Committee
         on Transportation
       AN  ACT to amend the vehicle and traffic law, in relation to surety bond
         requirements for car dealers
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Paragraphs a and c of subdivision 6-b of section 415 of the
    2  vehicle  and  traffic  law, as amended by chapter 7 of the laws of 2000,
    3  paragraph a as further amended by section 104 of part A of chapter 62 of
    4  the laws of 2011, are amended to read as follows:
    5    a. As a condition to obtaining a registration certificate pursuant  to
    6  this  section, every new motor vehicle dealer applicant and every quali-
    7  fied dealer applicant shall obtain and continue in effect a surety  bond
    8  in  an  amount  of  fifty  thousand dollars executed by a surety company
    9  authorized to transact business in the state by the department of finan-
   10  cial services of the state. As a condition to obtaining  a  registration
   11  certificate  pursuant  to  this  section, every dealer applicant, who is
   12  [applying for a registration certificate in the first instance or] NOT A
   13  NEW MOTOR VEHICLE DEALER OR A QUALIFIED MOTOR  VEHICLE  DEALER  AND  who
   14  sold  [two hundred] FIFTY motor vehicles or fewer in the previous calen-
   15  dar year, shall obtain and continue in effect a surety bond in an amount
   16  of [ten] TWENTY thousand dollars executed by a surety company authorized
   17  to transact business  in  the  state  by  the  department  of  financial
   18  services  of  the  state.  As  a  condition  of obtaining a registration
   19  certificate pursuant to this section, every dealer applicant, who IS NOT
   20  A NEW MOTOR VEHICLE DEALER OR A QUALIFIED MOTOR VEHICLE DEALER  AND  WHO
   21  sold more than [two hundred] FIFTY motor vehicles in the previous calen-
   22  dar  year shall obtain and continue in effect a surety bond in an amount
   23  of [twenty-five] ONE HUNDRED  thousand  dollars  executed  by  a  surety
   24  company  authorized  to transact business in the state by the department
   25  of financial services of the state. The bonds shall be  approved  as  to
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD10954-08-5
       A. 8166                             2
    1  form by the commissioner and shall be conditioned on the new motor vehi-
    2  cle  dealer's,  qualified  dealer's,  and dealer's: payment of all valid
    3  bank drafts, including checks, drawn by such dealer for the purchase  of
    4  motor vehicles; transfer of good title to each motor vehicle such dealer
    5  sells;  safekeeping  of  all  customer deposits related to the sale of a
    6  motor vehicle between the time of receipt of such customer  deposit  and
    7  the  transfer  of good title to the vehicle to the customer; payment for
    8  all fines imposed upon the new motor vehicle dealer,  qualified  dealer,
    9  or  dealer  by the commissioner pursuant to the provisions of this chap-
   10  ter; and such dealer's repayment of any overcharges  of  a  customer  by
   11  such  dealer for the vehicle registration and titling charges payable to
   12  the commissioner for registering and titling the sold vehicle.
   13    c. Any surety issuing a bond pursuant to  this  subdivision  shall  be
   14  required  to provide sixty days' notice to the commissioner prior to the
   15  effective date of cancellation OR LAPSE of the bond, AND  SHALL  PROVIDE
   16  NOTICE TO THE COMMISSIONER UPON THE DATE OF THE CANCELLATION OR LAPSE OF
   17  SUCH BOND. UPON THE CANCELLATION OR LAPSE OF ANY SURETY BOND REQUIRED BY
   18  THIS  SUBDIVISION,  THE  COMMISSIONER  SHALL  WITHIN  FIVE  DAYS OF SUCH
   19  CANCELLATION OR LAPSE, VERIFY THAT THE DEALER HOLDS A SURETY BOND  WHICH
   20  MEETS THE REQUIREMENTS OF THIS SUBDIVISION.
   21    S 2. This act shall take effect on the one hundred eightieth day after
   22  it shall have become a law.