Bill Text: NY S04608 | 2017-2018 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Requires a notarized document indicating the mutual consent of all parties for any transaction involving a motor vehicle where there are multiple purchasers, sellers, or lessees.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-06-15 - PRINT NUMBER 4608B [S04608 Detail]
Download: New_York-2017-S04608-Introduced.html
Bill Title: Requires a notarized document indicating the mutual consent of all parties for any transaction involving a motor vehicle where there are multiple purchasers, sellers, or lessees.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-06-15 - PRINT NUMBER 4608B [S04608 Detail]
Download: New_York-2017-S04608-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4608 2017-2018 Regular Sessions IN SENATE February 21, 2017 ___________ Introduced by Sen. HAMILTON -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection AN ACT to amend the general business law and the vehicle and traffic law, in relation to requiring the consent of all parties for any tran- saction involving a motor vehicle where there are multiple purchasers, sellers, or lessees The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "Safe Vehicle Transfer Act". 3 § 2. Section 396-qq of the general business law, as added by chapter 4 553 of the laws of 1996, is amended to read as follows: 5 § 396-qq. New and used motor vehicles; sales and leases. 1. Defi- 6 nitions. The following terms when used in this section, shall be deemed 7 to mean and include: 8 a. "Dealer" as defined in section four hundred fifteen of the vehicle 9 and traffic law. 10 b. "Motor vehicle" as defined in section one hundred twenty-five of 11 the vehicle and traffic law and excluding class A, B and C limited use 12 motorcycles as defined in section one hundred twenty-one-b of the vehi- 13 cle and traffic law. 14 2. Whenever a dealer provides to a purchaser or lessee of a motor 15 vehicle the service of securing a registration and/or certificate of 16 title for such vehicle from the commissioner of motor vehicles or his 17 issuing agent, the dealer shall either calculate the actual registration 18 and/or certificate of title charges due, or make a good faith estimate 19 in each transaction of the amount of such charges on the sales contract 20 or lease agreement. If such charges are estimated, the dealer shall set 21 forth on such sales contract or lease agreement or on a separate docu- 22 ment to be [initialled] initialed by the purchaser or lessee in conspic- 23 uous boldface type, the following disclosure: "THE AMOUNT INDICATED ON EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09873-01-7S. 4608 2 1 THIS SALES CONTRACT OR LEASE AGREEMENT FOR REGISTRATION AND TITLE FEES 2 IS AN ESTIMATE. IN SOME INSTANCES, IT MAY EXCEED THE ACTUAL FEES DUE THE 3 COMMISSIONER OF MOTOR VEHICLES. THE DEALER WILL AUTOMATICALLY, AND WITH- 4 IN SIXTY DAYS OF SECURING SUCH REGISTRATION AND TITLE, REFUND ANY AMOUNT 5 OVERPAID FOR SUCH FEES." If such charges are estimated, the dealer 6 shall, within sixty days of securing such registration and title, refund 7 to the purchaser or lessee the difference between the estimated amount 8 collected from such purchaser or lessee by the dealer and the actual 9 fees paid to the commissioner of motor vehicles by the dealer. 10 3. A dealer shall not complete a purchase, lease, or sale of a new or 11 used motor vehicle in which there is more than one purchaser, seller, or 12 lessee without a notarized document indicating the mutual consent of 13 every party to the transaction. Such document shall not be notarized by 14 a dealer or employee otherwise directly involved with the transaction. 15 4. Where a violation of this section is alleged to have occurred, the 16 attorney general may apply in the name of the people of the state of New 17 York to the supreme court of the state of New York within the judicial 18 district in which such violation is alleged to have occurred, on notice 19 of five days, for an order enjoining or restraining the continuance of 20 such violation. In any such proceeding the court may impose a civil 21 penalty in an amount not to exceed five hundred dollars and order resti- 22 tution to aggrieved consumers. 23 § 3. Sections 418 and 419 of the vehicle and traffic law are renum- 24 bered sections 419 and 420 and a new section 418 is added to read as 25 follows: 26 § 418. Proof of consent of all parties prior to purchase, sale, or 27 lease of a motor vehicle. 1. A dealer shall not complete a purchase, 28 lease, or sale of a new or used motor vehicle in which there is more 29 than one purchaser, seller, or lessee without a notarized document indi- 30 cating the mutual consent of every party to the transaction. Such docu- 31 ment shall not be notarized by a dealer or employee otherwise directly 32 involved with the transaction. 33 2. Any purchaser, seller, or lessee injured by a violation of this 34 section may bring an action to recover damages. Judgment may be entered 35 for three times the actual damages suffered by the purchaser, seller, or 36 lessee, or one hundred dollars, whichever is greater. A court also may 37 award reasonable attorneys' fees to a prevailing plaintiff. 38 3. a. Upon any violation of this section, an application may be made 39 by the attorney general in the name of the people of the state of New 40 York to a court or justice having jurisdiction to issue an injunction, 41 and upon notice to the defendant of not less than five days, to enjoin 42 and restrain the continuance of the violation. If it shall appear to the 43 satisfaction of the court or justice that the defendant has violated 44 this section, an injunction may be issued by the court or justice, 45 enjoining and restraining any further violation, without requiring proof 46 that any person has, in fact, been injured or damaged thereby. In any 47 such proceeding, the court may make allowances to the attorney general 48 as provided in paragraph six of subdivision (a) of section eighty-three 49 hundred three of the civil practice law and rules, and direct restitu- 50 tion. 51 b. Whenever the court shall determine that a violation of this section 52 has occurred, it may impose a civil penalty of not more than one thou- 53 sand dollars for each violation. In connection with an application made 54 under this subdivision, the attorney general is authorized to take proof 55 and to make a determination of the relevant facts and to issue subpoenas 56 in accordance with the civil practice law and rules.S. 4608 3 1 § 4. Subdivision (a) of section 2114 of the vehicle and traffic law, 2 as amended by chapter 521 of the laws of 1972, is amended to read as 3 follows: 4 (a) If a dealer buys a vehicle and holds it for resale and procures 5 the certificate of title from the owner within ten days after delivery 6 to him of the vehicle, he need not send the certificate to the commis- 7 sioner but, upon transferring the vehicle to another person other than 8 by the creation of a security interest, shall promptly execute the 9 assignment and warranty of title by a dealer, showing the names and 10 addresses of the transferee and of any lienholder holding a security 11 interest created or reserved at the time of the resale, in the spaces 12 provided therefor on the certificate or as the commissioner prescribes, 13 and mail or deliver the certificate to the commissioner with the 14 transferee's application for a new certificate. The dealer shall also 15 submit evidence of the unanimous consent to transfer the vehicle, 16 including submission of a notarized document with the signature of all 17 transferors possessing any interest in the vehicle with such applica- 18 tion. The assignment and warranty of title by a dealer required by this 19 section shall include a statement, signed by the dealer stating either 20 (i) any facts or information known to him that could reasonably affect 21 the validity of the title of the vehicle, or (ii) that no such facts or 22 information are known to him. 23 § 5. Paragraph 2 of subdivision (b) of section 198-a of the general 24 business law, as amended by chapter 279 of the laws of 1989, is amended 25 to read as follows: 26 (2) If a manufacturer's agent or authorized dealer refuses to under- 27 take repairs within seven days of receipt of the notice by a consumer of 28 a nonconformity, defect or condition pursuant to paragraph one of this 29 subdivision, the consumer may immediately forward written notice of such 30 refusal to the manufacturer by certified mail, return receipt requested. 31 The manufacturer or its authorized agent shall have twenty days from 32 receipt of such notice of refusal to commence such repairs. If within 33 such twenty day period, the manufacturer or its authorized agent fails 34 to commence such repairs, the manufacturer, at the option of the consum- 35 er, shall replace the motor vehicle with a comparable motor vehicle, or 36 accept return of the vehicle from the consumer and refund to the consum- 37 er the full purchase price or, if applicable, the lease price and any 38 trade-in allowance plus fees and charges; provided, however, that a 39 refund shall not be issued for a vehicle with multiple owners before 40 notarized proof of consent is provided as described in subdivision three 41 of section three hundred ninety-six-qq of this chapter. Such fees and 42 charges shall include but not be limited to all license fees, registra- 43 tion fees and any similar governmental charges, less an allowance for 44 the consumer's use of the vehicle in excess of the first twelve thousand 45 miles of operation pursuant to the mileage deduction formula defined in 46 paragraph four of subdivision (a) of this section, and a reasonable 47 allowance for any damage not attributable to normal wear or improve- 48 ments. 49 § 6. Paragraphs 1 and 2 of subdivision (c) of section 198-a of the 50 general business law, paragraph 1 as amended by chapter 234 of the laws 51 of 1990, and paragraph 2 as amended by chapter 29 of the laws of 1989, 52 are amended to read as follows: 53 (1) If, within the period specified in subdivision (b) of this 54 section, the manufacturer or its agents or authorized dealers are unable 55 to repair or correct any defect or condition which substantially impairs 56 the value of the motor vehicle to the consumer after a reasonable numberS. 4608 4 1 of attempts, the manufacturer, at the option of the consumer, shall 2 replace the motor vehicle with a comparable motor vehicle, or accept 3 return of the vehicle from the consumer and refund to the consumer the 4 full purchase price or, if applicable, the lease price and any trade-in 5 allowance plus fees and charges; provided, however, that a refund shall 6 not be issued for a vehicle with multiple owners before notarized proof 7 of consent is provided as described in subdivision three of section 8 three hundred ninety-six-qq of this chapter. Any return of a motor vehi- 9 cle may, at the option of the consumer, be made to the dealer or other 10 authorized agent of the manufacturer who sold such vehicle to the 11 consumer or to the dealer or other authorized agent who attempted to 12 repair or correct the defect or condition which necessitated the return 13 and shall not be subject to any further shipping charges. Such fees and 14 charges shall include but not be limited to all license fees, registra- 15 tion fees and any similar governmental charges, less an allowance for 16 the consumer's use of the vehicle in excess of the first twelve thousand 17 miles of operation pursuant to the mileage deduction formula defined in 18 paragraph four of subdivision (a) of this section, and a reasonable 19 allowance for any damage not attributable to normal wear or improve- 20 ments. 21 (2) A manufacturer which accepts return of the motor vehicle because 22 the motor vehicle does not conform to its warranty shall notify the 23 commissioner of the department of motor vehicles that the motor vehicle 24 was returned to the manufacturer for nonconformity to its warranty and 25 shall disclose, in accordance with the provisions of section four 26 hundred seventeen-a of the vehicle and traffic law prior to resale 27 either at wholesale or retail, that it was previously returned to the 28 manufacturer for nonconformity to its warranty. Refunds shall be made to 29 the consumer and lienholder, if any, as their interests may appear on 30 the records of ownership kept by the department of motor vehicles; 31 provided, however, that a refund shall not be issued for a vehicle with 32 multiple owners or lessees before notarized proof of consent is provided 33 as described in subdivision three of section three hundred ninety-six-qq 34 of this chapter. Refunds shall be accompanied by the proper application 35 for credit or refund of state and local sales taxes as published by the 36 department of taxation and finance and by a notice that the sales tax 37 paid on the purchase price, lease price or portion thereof being 38 refunded is refundable by the commissioner of taxation and finance in 39 accordance with the provisions of subdivision (f) of section eleven 40 hundred thirty-nine of the tax law. If applicable, refunds shall be made 41 to the lessor and lessee as their interests may appear on the records of 42 ownership kept by the department of motor vehicles, as follows: the 43 lessee shall receive the capitalized cost and the lessor shall receive 44 the lease price less the aggregate deposit and rental payments previous- 45 ly paid to the lessor for the leased vehicle. The terms of the lease 46 shall be deemed terminated contemporaneously with the date of the 47 arbitrator's decision and award and no penalty for early termination 48 shall be assessed as a result thereof. Refunds shall be accompanied by 49 the proper application form for credit or refund of state and local 50 sales tax as published by the department of taxation and finance and a 51 notice that the sales tax paid on the lease price or portion thereof 52 being refunded is refundable by the commissioner of taxation and finance 53 in accordance with the provisions of subdivision (f) of section eleven 54 hundred thirty-nine of the tax law.S. 4608 5 1 § 7. Subdivision (k) of section 198-a of the general business law, as 2 amended by chapter 611 of the laws of 2005, is amended to read as 3 follows: 4 (k) Each consumer shall have the option of submitting any dispute 5 arising under this section upon the payment of a prescribed filing fee 6 to an alternate arbitration mechanism established pursuant to regu- 7 lations promulgated hereunder by the New York state attorney general. 8 Upon application of the consumer and payment of the filing fee, all 9 manufacturers shall submit to such alternate arbitration; provided, 10 however, the consent of all consumers is needed prior to submission of 11 an application for a vehicle involving multiple consumers. 12 Such alternate arbitration shall be conducted by a professional arbi- 13 trator or arbitration firm appointed by and under regulations estab- 14 lished by the New York state attorney general. Such mechanism shall 15 insure the personal objectivity of its arbitrators and the right of each 16 party to present its case, to be in attendance during any presentation 17 made by the other party and to rebut or refute such presentation. In all 18 other respects, such alternate arbitration mechanism shall be governed 19 by article seventy-five of the civil practice law and rules; provided, 20 however, that notwithstanding paragraph (i) of subdivision (a) of 21 section seventy-five hundred two of the civil practice law and rules, 22 special proceedings brought before a court pursuant to such article 23 seventy-five in relation to an arbitration hereunder shall be brought 24 only in the county where the consumer resides or where the arbitration 25 was held or is pending. 26 § 8. Subparagraphs (iii) and (iv) of paragraph 3 of subdivision (m) of 27 section 198-a of the general business law, as added by chapter 799 of 28 the laws of 1986, is amended and a new subparagraph (v) is added to read 29 as follows: 30 (iii) the number and total dollar amount of awards where some form of 31 reimbursement for expenses or compensation for losses was the most prom- 32 inent remedy, the amount or value of each award and the number of such 33 awards that were complied with in a timely manner; [and] 34 (iv) the average number of days from the date of a consumer's initial 35 request to arbitrate until the date of the final arbitrator's decision 36 and the average number of days from the date of the final arbitrator's 37 decision to the date on which performance was satisfactorily carried 38 out; and 39 (v) the notarized proof of consent form as described in subdivision 40 three of section three hundred ninety-six-qq of this chapter if the 41 motor vehicle has multiple consumers. 42 § 9. Paragraph 1 of subdivision c of section 198-b of the general 43 business law, as amended by chapter 444 of the laws of 1989, is amended 44 to read as follows: 45 1. If the dealer or his agent fails to correct a malfunction or defect 46 as required by the warranty specified in this section which substantial- 47 ly impairs the value of the used motor vehicle to the consumer after a 48 reasonable period of time, the dealer shall accept return of the used 49 motor vehicle from the consumer and refund to the consumer the full 50 purchase price, or in the case of a lease contract all payments made 51 under the contract, including sales or compensating use tax, less a 52 reasonable allowance for any damage not attributable to normal wear or 53 usage, and adjustment for any modifications which either increase or 54 decrease the market value of the vehicle or of the lease contract, and 55 in the case of a lease contract, shall cancel all further payments due 56 from the consumer under the lease contract. A dealer shall not refundS. 4608 6 1 the purchase price or cancel the lease for a motor vehicle involving 2 multiple consumers before the dealer is in possession of a notarized 3 proof of consent form as described in subdivision three of section three 4 hundred ninety-six-qq of this chapter. In determining the purchase price 5 to be refunded or in determining all payments made under a lease 6 contract to be refunded, the purchase price, or all payments made under 7 a lease contract, shall be deemed equal to the sum of the actual cash 8 difference paid for the used motor vehicle, or for the lease contract, 9 plus, if the dealer elects to not return any vehicles traded-in by the 10 consumer, the wholesale value of any such traded-in vehicles as listed 11 in the National Auto Dealers Association Used Car Guide, or such other 12 guide as may be specified in regulations promulgated by the commissioner 13 of motor vehicles, as adjusted for mileage, improvements, and any major 14 physical or mechanical defects in the traded-in vehicle at the time of 15 trade-in. The dealer selling or leasing the used motor vehicle shall 16 deliver to the consumer a written notice including conspicuous language 17 indicating that if the consumer should be entitled to a refund pursuant 18 to this section, the value of any vehicle traded-in by the consumer, if 19 the dealer elects to not return it to the consumer, for purposes of 20 determining the amount of such refund will be determined by reference to 21 the National Auto Dealers Association Used Car Guide wholesale value, or 22 such other guide as may be approved by the commissioner of motor vehi- 23 cles, as adjusted for mileage, improvements, and any major physical or 24 mechanical defects, rather than the value listed in the sales contract. 25 Refunds shall be made to the consumer and lienholder, if any, as their 26 interests may appear on the records of ownership kept by the department 27 of motor vehicles. If the amount to be refunded to the lienholder will 28 be insufficient to discharge the lien, the dealer shall notify the 29 consumer in writing by registered or certified mail that the consumer 30 has thirty days to pay the lienholder the amount which, together with 31 the amount to be refunded by the dealer, will be sufficient to discharge 32 the lien. The notice to the consumer shall contain conspicuous language 33 warning the consumer that failure to pay such funds to the lienholder 34 within thirty days will terminate the dealer's obligation to provide a 35 refund. If the consumer fails to make such payment within thirty days, 36 the dealer shall have no further responsibility to provide a refund 37 under this section. Alternatively, the dealer may elect to offer to 38 replace the used motor vehicle with a comparably priced vehicle, with 39 such adjustment in price as the parties may agree to. The consumer shall 40 not be obligated to accept a replacement vehicle, but may instead elect 41 to receive the refund provided under this section. It shall be an affir- 42 mative defense to any claim under this section that: 43 (a) The malfunction or defect does not substantially impair such 44 value; or 45 (b) The malfunction or defect is the result of abuse, neglect or 46 unreasonable modifications or alterations of the used motor vehicle. 47 § 10. Subparagraph 5 of paragraph 1 of subdivision f of section 198-b 48 of the general business law, as separately amended by chapters 444 and 49 609 of the laws of 1989, is amended to read as follows: 50 5. If the same problem cannot be repaired after three or more 51 attempts, you are entitled to return the car and receive a refund of 52 your purchase price or of all payments made under your lease contract, 53 and of sales tax and fees, minus a reasonable allowance for any damage 54 not attributable to normal usage or wear, and, in the case of a lease 55 contract, a cancellation of all further payments you are otherwise 56 required to make under the lease contract. If there are multiple indi-S. 4608 7 1 viduals who signed for the car, all individuals must indicate their 2 consent before you may receive a refund for the car or have your lease 3 cancelled. 4 § 11. Paragraph 3 of subdivision (b) and subdivision (c) of section 5 198-c of the general business law, as added by chapter 254 of the laws 6 of 2010, are amended to read as follows: 7 (3) The time period specified in paragraph one or two of this subdivi- 8 sion may be shortened if the dealer and consumer agree, in writing, to a 9 shorter time period; provided, however, when there are multiple consum- 10 ers to the transaction the dealer shall be in possession of the nota- 11 rized proof of consent form as described in subdivision three of section 12 three hundred ninety-six-qq of this chapter before such agreement is 13 executed. 14 (c) If the agreement gives either party the right to rescind the 15 entire agreement within a reasonable time period, rescission of the 16 entire agreement shall effectively rescind the obligations pursuant to 17 this section without violating this section; provided, however, when 18 there are multiple consumers to the transaction the dealer shall be in 19 possession of the notarized proof of consent form as described in subdi- 20 vision three of section three hundred ninety-six-qq of this chapter 21 before such agreement is executed in order for such rescission to be 22 valid. 23 § 12. This act shall take effect on the one hundred eightieth day 24 after it shall have become a law; provided, however, that effective 25 immediately, the addition, amendment and/or repeal of any rule or regu- 26 lation necessary for the implementation of this act on its effective 27 date are authorized and directed to be made and completed on or before 28 such effective date.
