N.Y. Vehicle & Traffic Law § 415: Registration of manufacturers, dealers, repairmen and others

§ 415. Registration of manufacturers, dealers, repairmen and others.

1. Definitions. The following terms when used in this article, shall be

deemed to mean and include:

a. "Dealer" means a person engaged in the business of buying, selling

or dealing in motor vehicles, motorcycles or trailers, other than mobile

homes or manufactured homes, at retail or wholesale; except, however,

trailers with an unladen weight of less than one thousand pounds. For

the purposes of this section, a "mobile home" or "manufactured home"

means a mobile home or manufactured home as defined in section one

hundred twenty-two-c of this chapter. Any person who sells, or offers

for sale more than five motor vehicles, motorcycles or trailers in any

calendar year or who displays or permits the display of three or more

motor vehicles, motorcycles or trailers for sale at any one time or

within any one calendar month upon premises owned or controlled by him

or her, if such vehicles were purchased, acquired or otherwise obtained

by such person for the purpose of resale, will be regarded as a dealer.

Except as otherwise provided in subdivisions three, five, six-b, and

seven of this section, the term "dealer" shall include a "new motor

vehicle dealer" as defined by paragraph f of this subdivision and a

"qualified dealer" as defined in paragraph g of this subdivision.

b. "Person" means any natural person, firm, corporation, partnership,

limited liability company, entity, joint venture, association or

organization.

c. "Place of business" means a designated location at which the

business of the dealer is conducted, and, in relation to a retail

dealer, facilities for displaying new or used motor vehicles.

d. "Retail dealer" means a dealer whose business consists in whole or

in part of buying, selling or dealing in motor vehicles, motorcycles or

trailers at retail.

e. "Wholesale dealer" means a dealer whose business consists

exclusively of buying, selling or dealing in motor vehicles, motorcycles

or trailers at wholesale.

f. "New motor vehicle dealer" means a dealer who engages in the

activities described in paragraph a of this subdivision if such

activities relate to new motor vehicles and if such dealer is party to a

franchise, as the terms "new motor vehicle" and "franchise" are defined

in section four hundred sixty-two of this title; provided, however, for

purposes of this definition, a new motor vehicle shall include only

those motor vehicles commonly classified as a passenger automobile,

sport utility vehicle, light truck, pickup truck, van, minivan, or

suburban, with a gross vehicle weight rating of ten thousand pounds or

less, and shall not include (i) any such vehicle which has been

converted for use as a tow truck, or (ii) a motor vehicle for which the

current ownership document is a statement of acquisition issued pursuant

to section four hundred twenty-nine of this title, a salvage

certificate, salvage certificate of title, nonrepairable certificate, or

similar document issued by any state or jurisdiction; or (iii) any motor

vehicle commonly classified as a bus, school bus, garbage truck, marine

trailer, tow truck, motorcycle, recreational vehicle, snowmobile,

trailer, mobile home or construction equipment; and provided further

that: (i) a dealer is a new motor vehicle dealer only with respect to

those vehicles which are of the same make as those which that dealer is

authorized to sell at that location pursuant to a valid franchise

agreement; and (ii) a dealer is not acting as a new motor vehicle dealer

when displaying, advertising, storing and/or demonstrating a new

mobility vehicle.

g. "Qualified dealer" means a dealer, other than a new motor vehicle

dealer or a dealer owned in whole or in part, directly or indirectly, by

a manufacturer, who:

(i) acting through a single person, but operating at one or more

locations of such single person, has displayed new motor vehicles for

sale and/or lease, and has sold and/or leased (excluding sales or leases

of any affiliates) a minimum of four thousand new and/or used motor

vehicles annually (of which at least forty percent annually were new

motor vehicles) at retail regardless of make or model from any one or

more locations of such single person within the state, in each year from

nineteen hundred ninety-five through and including nineteen hundred

ninety-eight, exclusively; or

(ii) has displayed new motor vehicles for sale and/or lease, and has

sold and/or leased (excluding sales or leases of any affiliates) a

minimum of two hundred twenty-five new and/or used motor vehicles (of

which at least thirty-three and one-third percent were new motor

vehicles) at retail, regardless of make or model, from any one or more

locations within the state, in the twelve-month period preceding August

thirty-first, nineteen hundred ninety-nine; or

(iii) was issued an original certificate of registration as a dealer

with a validation date of May, nineteen hundred ninety-nine, has

displayed new motor vehicles for sale and/or lease, and has sold and/or

leased (excluding sales or leases of any affiliates) a minimum of one

hundred fifty new and/or used motor vehicles (of which at least fifty

were new motor vehicles), regardless of make or model, from any one or

more locations within the state, in the period between July first,

nineteen hundred ninety-nine and the effective date of chapter seven of

the laws of two thousand. Notwithstanding the provisions of subdivision

eighteen of this section, the total number of locations from which a

qualified dealer eligible pursuant to this subparagraph may operate

shall not exceed that number of locations operated by such qualified

dealer on August thirty-first, nineteen hundred ninety-nine; or

(iv) was issued a certificate of registration as a dealer new and used

with a validation date of February, nineteen hundred ninety-eight and

has continuously held a certificate of registration as a dealer for the

ten years preceding the effective date of chapter seven of the laws of

two thousand, and has sold and/or leased (excluding sales or leases of

any affiliates) a minimum of two hundred new and/or used motor vehicles

(of which at least twenty percent were new motor vehicles) regardless of

make or model, from one or more locations within the state in the period

between September first, nineteen hundred ninety-eight through and

including August thirty-first, nineteen hundred ninety-nine.

h. For the purposes of this section, "new motor vehicle" means a motor

vehicle commonly classified as a passenger automobile, sport utility

vehicle, light truck, pick up truck, van, minivan or suburban which

meets any one or more of the following criteria:

(i) a motor vehicle which has not been placed in consumer use; or

(ii) a motor vehicle which has not been transferred to someone other

than a distributor, new motor vehicle dealer, or qualified dealer; or

(iii) a motor vehicle which has less than one thousand miles on the

odometer.

Provided, however, that such term shall not include any such vehicle

which has been converted for use as a tow truck or any motor vehicle

commonly classified as a bus, school bus, garbage truck, marine trailer,

tow truck, motorcycle, recreational vehicle, snowmobile, trailer, mobile

home or construction equipment.

i. "Used motor vehicle" means any vehicle not included in the

definition of a new motor vehicle. Provided, however, that such term as

used in paragraph g of this subdivision shall include only those motor

vehicles commonly classified as a passenger automobile, sport utility

vehicle, light truck, pick up truck, van, minivan or suburban, with a

gross vehicle weight rating of ten thousand pounds or less, which (i) is

not deemed to be a "new motor vehicle" pursuant to paragraph h of this

subdivision, or (ii) has not been converted for use as a tow truck, or

(iii) is not commonly classified as a bus, school bus, garbage truck,

marine trailer, tow truck, motorcycle, recreational vehicle, snowmobile,

trailer, mobile home, or construction equipment.

j. "Lease" means to arrange for a person to enter into an agreement

subject to the provisions of article nine-A of the personal property

law, or to act as a lessor as defined in such article.

k. "Mobility vehicle" means a motor vehicle that is specially

converted and equipped to transport a person with a disability and is

altered or modified for such use by an alterer or final stage

manufacturer pursuant to parts 567 and 568 of title 49 of the code of

federal regulations or a modifier pursuant to part 595 of title 49 of

the code of federal regulations and that:

(i) has a chassis that contains: (A) a permanently lowered floor or

permanently lowered frame; or (B) a permanently raised roof and raised

door; and

(ii) contains at least one of the following: (A) an electronic or

mechanical wheelchair, scooter, or platform lift that enables a person

to enter or exit the vehicle while occupying a wheelchair or scooter;

(B) an electronic or mechanical wheelchair ramp that is installed as an

integral part or permanent attachment to the motor vehicle.

For the purposes of this section, the terms "alterer" and "final-stage

manufacturer" shall have the same meanings as such terms are defined in

part 567.3 of title 49 of the code of federal regulations, and the term

"modifier" shall mean any motor vehicle repair business that modifies a

motor vehicle to enable a person with a disability to operate, or ride

as a passenger in, the motor vehicle.

l. "New mobility vehicle" means a mobility vehicle that has not

previously been titled or registered for operation by a consumer, either

as a mobility vehicle or as a motor vehicle.

m. "Automobile broker business" shall have the meaning set forth in

subdivision one of section seven hundred thirty-six of the general

business law.

2. Registration of manufacturers, repairmen and certain others. A

person engaged in a business requiring the limited operation of motor

vehicles, motorcycles or trailers in order to facilitate the delivery,

repair or improvement thereof, or the foreclosure or repossession

thereof or the installation of something thereon or for the purpose of

dismantling such motor vehicle, motorcycle or trailer, may, instead of

obtaining vehicle registration, as provided by sections four hundred one

and four hundred ten of this chapter, apply to the commissioner for

registration under this section.

3. Registration of new motor vehicle dealers, qualified dealers, and

other motor vehicle dealers. a. No person shall engage in business as a

new motor vehicle dealer, or represent, advertise, or otherwise hold

himself or herself out as engaged or intending to engage in the business

of selling new motor vehicles in this state, unless there shall have

been issued to him or her, for a particular make, a certificate of

registration as a new motor vehicle dealer as provided in subdivision

seven of this section, or unless there shall have been issued to him or

her a certificate of registration as a qualified dealer as defined in

paragraph g of subdivision one of this section; provided, however, for

purposes of this subdivision, a new motor vehicle shall have the same

meaning as set forth in paragraph h of subdivision one of this section,

but shall not include a motor vehicle for which the current ownership

document is a statement of acquisition issued pursuant to section four

hundred twenty-nine of this title, a salvage certificate, salvage

certificate of title, nonrepairable certificate, or similar document

issued by any state or jurisdiction. Only a person who has been issued a

certificate as a new motor vehicle dealer or a qualified dealer shall be

entitled to engage in all dealer activities authorized under this

article and shall not be required to obtain an additional certificate of

registration under paragraph c of subdivision seven of this section. A

qualified dealer shall be entitled to sell new motor vehicles of any

make.

b. No person shall engage in the business of selling new motor

vehicles, or represent or advertise that he or she is engaged or intends

to engage in the business of selling new motor vehicles in this state,

unless there shall have been issued to him or her a certificate of

registration as a new motor vehicle dealer or as a qualified dealer as

provided in subdivision seven of this section. No person shall engage in

business as a dealer, or represent or advertise that he or she is

engaged or intends to engage in such business in this state, unless

there shall have been issued to him or her a certificate of registration

as provided in subdivision seven of this section. No provision of this

section shall be deemed to prohibit any dealer located outside of the

state from selling a new motor vehicle to a new motor vehicle dealer or

a qualified dealer. No provision of this section shall be deemed to

prohibit any person engaged in the leasing of new motor vehicles from

selling a new motor vehicle to a third-party bank, finance company or

other commercial lending institution, provided that such sale is made

incidental to and concurrently with the lease of such new motor vehicle

by such third party bank, finance company, or other commercial lending

institution as the lessor, to a retail customer.

c. The issuance of such certificate of registration to a new motor

vehicle dealer, a qualified dealer, or other motor vehicle dealer shall

be deemed to include the right to operate motor vehicles, motorcycles

and trailers to the extent permitted by subdivision eight of this

section, instead of obtaining vehicle registration as provided by

sections four hundred one and four hundred ten of this title. The

provisions of this section shall not apply to persons engaged in the

business of buying, selling or dealing in snowmobiles and/or snow

travellers.

3-a. Automobile broker business registration. No person shall engage

in the automobile broker business or represent or advertise that he or

she is engaged or intends to engage in the automobile broker business in

this state, unless there shall have been issued to him or her a

certificate of registration as an automobile broker business by the

commissioner under this section pursuant to an application for

registration submitted pursuant to subdivision five of this section.

4. Number plates. A dealer, manufacturer, or other person, qualifying

for limited use of motor vehicles, motorcycles or trailers under

subdivisions two and three of this section, shall be entitled to receive

one or more sets of number plates for display thereon as the

commissioner may determine, upon payment of the required fee for each

set. Number plates issued to dealers under this section shall bear

distinctive marks to distinguish them from manufacturer and transporter

plates to be issued to other persons qualifying under this section.

Number plates issued to manufacturers under this section shall bear

distinctive marks to distinguish them from dealer and transporter plates

to be issued to other persons qualifying under this section. A set of

number plates shall consist of two plates in the case of a motor vehicle

and one plate in the case of a motorcycle or trailer; provided, however,

that the commissioner, in his or her discretion, may issue, for any

registration year, only one number as a set for a motor vehicle, in

which event a set of number plates for a motor vehicle shall consist of

one plate.

5. Application for registration. The application for registration

under this section shall be filed with the commissioner in such form and

detail as the commissioner shall prescribe, setting forth:

a. Name and residence address of applicant; if an individual, the name

under which he intends to conduct business; if a co-partnership, the

name and residence address of each member thereof, and the name under

which the business is to be conducted; if a corporation, the name of the

corporation and the name and residence address of each of the officers.

b. The place or places, including the complete address or addresses

where the business is to be conducted and, in the case of an application

to do business as a new motor vehicle dealer, the names of each line or

make of new motor vehicle which a manufacturer or distributor has

authorized the applicant to sell from each location and the date of

inception of the franchise, as defined in section four hundred sixty-two

of this title, which authorizes the applicant to sell such line or make

from each location. A copy of each such franchise, or other

documentation in lieu thereof satisfactory to the commissioner, shall be

submitted to the commissioner at the time of application and upon each

renewal of each certificate to do business as a new motor vehicle

dealer.

b-1. The name and address of the surety company which will issue the

bond required by subdivision six-b of this section. If the bond is to be

issued by an authorized agent of the surety company licensed by the

state, then the name and address of that agent may be provided in lieu

of the information concerning the surety company.

b-2. A statement indicating any interest in the applicant's franchise

entity by a person or entity described in paragraph f of subdivision

seven of this section.

b-3. In the case of an application for registration as an automobile

broker business, the name and address of the surety company which will

issue the bond required by subdivision one of section seven hundred

forty-a of the general business law. If the bond is to be issued by an

authorized agent of the surety company licensed by the state, then the

name and address of that agent may be provided in lieu of the

information concerning the surety company.

c. Such further information as the commissioner may reasonably

prescribe.

d. Before an application for an original certificate of registration

is approved, the applicant must have on the premises to be licensed

adequate space and proper facilities to retain and safeguard all records

and documents he must maintain upon the licensed premises as required by

the vehicle and traffic law and the regulations of the commissioner.

The commissioner may require the applicant for registration to appear

at such time and place as may be designated by the commissioner for

examination to enable him to determine the accuracy of the facts set

forth in the written application, either for initial registration or

renewal thereof.

Every application under this section shall be verified by the

applicant.

* 6. Fees. Every original application for registration as a dealer,

automobile broker or transporter shall be accompanied by an application

fee of thirty-seven dollars and fifty cents, which shall in no event be

refunded. The annual fee for registration as a dealer, automobile broker

or transporter or for renewal thereof shall be two hundred twenty-five

dollars. The annual fee for any other registration under this section

shall be fifty dollars. However, the commissioner may, in his or her

discretion, issue a renewal of either registration for a period of two

years. The fee for a two-year renewal shall be twice the annual fee. The

annual fee for dealer, manufacturer, or transporter number plates shall

be twenty dollars for each set. If the commissioner issues to dealers a

document which is required to be used by a dealer to sell or transfer a

vehicle, the fee for the issuance of each such document shall be five

dollars. There shall be no refund of registration fee or fees for number

plates in the event of suspension, revocation or voluntary cancellation

of registration. The fee for any such transfer document issued by the

commissioner shall be refunded only upon the surrender of such document

upon voluntary cancellation of registration.

* NB Effective until April 1, 2028

* 6. Fees. Every original application for registration as a dealer,

automobile broker or transporter shall be accompanied by an application

fee of twenty-five dollars, which shall in no event be refunded. The

annual fee for registration as a dealer, automobile broker or

transporter or for renewal thereof shall be one hundred fifty dollars.

The annual fee for any other registration under this section shall be

fifty dollars. However, the commissioner may, in his or her discretion,

issue a renewal of either registration for a period of two years. The

fee for a two-year renewal shall be twice the annual fee. The annual fee

for dealer, manufacturer, or transporter number plates shall be twenty

dollars for each set. If the commissioner issues to dealers a document

which is required to be used by a dealer to sell or transfer a vehicle,

the fee for the issuance of each such document shall be one dollar.

There shall be no refund of registration fee or fees for number plates

in the event of suspension, revocation or voluntary cancellation of

registration. The fee for any such transfer document issued by the

commissioner shall be refunded only upon the surrender of such document

upon voluntary cancellation of registration.

* NB Effective April 1, 2028

* 6-a. Fees; deposited. Fees assessed under this section shall be paid

to the commissioner for deposit to the general fund, with the exception

of the four dollar increase in the fee for issuance of a document to be

used by a dealer to sell or transfer a vehicle collected pursuant to

subdivision six of this section, which shall be deposited to the general

fund through March thirty-first, two thousand four and from April first,

two thousand four and thereafter to the dedicated highway and bridge

trust fund; and with the exception of the twelve dollar and fifty cent

increase in the fee for original application for registration as a

dealer or transporter pursuant to subdivision six of this section and

the seventy-five dollar increase in the annual fee for registration as a

dealer or transporter or for renewal pursuant to subdivision six of this

section, which shall be deposited to the dedicated highway and bridge

trust fund established pursuant to section eighty-nine-b of the state

finance law and the dedicated mass transportation fund established

pursuant to section eighty-nine-c of the state finance law and

distributed according to the provisions of subdivision (d) of section

three hundred one-j of the tax law.

* NB Effective until April 1, 2028

* 6-a. Fees; deposited. Fees assessed under this section shall be paid

to the commissioner for deposit to the general fund.

* NB Effective April 1, 2028

6-b. Dealer, qualified dealer, and new motor vehicle dealer surety

bond. a. As a condition to obtaining a registration certificate

pursuant to this section, every new motor vehicle dealer applicant and

every qualified dealer applicant shall obtain and continue in effect a

surety bond in an amount of fifty thousand dollars executed by a surety

company authorized to transact business in the state by the department

of financial services of the state. As a condition to obtaining a

registration certificate pursuant to this section, every dealer

applicant who is applying for a registration certificate in the first

instance or who sold fifty motor vehicles or fewer in the previous

calendar year shall obtain and continue in effect a surety bond in an

amount of twenty thousand dollars executed by a surety company

authorized to transact business in the state by the department of

financial services of the state. As a condition of obtaining a

registration certificate pursuant to this section, every dealer

applicant who sold more than fifty motor vehicles in the previous

calendar year shall obtain and continue in effect a surety bond in an

amount of one hundred thousand dollars executed by a surety company

authorized to transact business in the state by the department of

financial services of the state. The bonds shall be approved as to form

by the commissioner and shall be conditioned on the new motor vehicle

dealer's, qualified dealer's, and dealer's: payment of all valid bank

drafts, including checks, drawn by such dealer for the purchase of motor

vehicles; transfer of good title to each motor vehicle such dealer

sells; safekeeping of all customer deposits related to the sale of a

motor vehicle between the time of receipt of such customer deposit and

the transfer of good title to the vehicle to the customer; payment for

all fines imposed upon the new motor vehicle dealer, qualified dealer,

or dealer by the commissioner pursuant to the provisions of this

chapter; and such dealer's repayment of any overcharges of a customer by

such dealer for the vehicle registration and titling charges payable to

the commissioner for registering and titling the sold vehicle. Any such

dealer which is bonded pursuant to this section prior to the effective

date of the chapter of the laws of two thousand sixteen which amended

this paragraph shall be required to comply with the amendments made by

such chapter upon renewal, replacement, alteration, or extension of such

dealer's current surety bond.

b. Recovery against a bond may be made by a person, including the

state, who obtains a judgment against the new motor vehicle dealer,

qualified dealer, or dealer for an act or omission on which the bond is

conditioned if the act or omission occurred during the term of the bond.

The total liability imposed on the surety under this section for all

breaches of the bond condition is limited to the face amount of the

bond. Such liability may include, but is not limited to, the amount of

the valid bank drafts, including checks, drawn by the new motor vehicle

dealer, qualified dealer, or dealer for the purchase of motor vehicles

or the amount of overcharge by such dealer for registration or title

fees or the amount paid to such dealer or the deposit, as the case may

be, for the motor vehicle for which good title was not delivered. In no

event shall the surety on a bond be liable for total claims in excess of

the bond amount, regardless of the number or nature of claims made

against the bond or the number of years the bond remained in force, nor

shall any such surety bond provide coverage for transactions involving

sales of any motor vehicles for which a bond is not required pursuant to

the provisions of paragraph d of this subdivision.

c. Any surety issuing a bond pursuant to this subdivision shall be

required to provide sixty days' notice to the commissioner prior to the

effective date of cancellation or lapse of the bond, and shall provide

additional notice to the commissioner upon the date of the cancellation

or lapse of such bond. Upon the cancellation or lapse of any surety bond

required by this subdivision, the commissioner shall, within five days

of such cancellation or lapse, verify that the dealer holds a surety

bond which meets the requirements of this subdivision.

d. For purposes of this subdivision, the term "motor vehicle" means a

motor vehicle commonly classified as a passenger automobile, sport

utility vehicle, light truck, pick up truck, van, minivan, or suburban,

with a gross vehicle weight rating of ten thousand pounds or less.

Notwithstanding the provisions of paragraphs a and b of this

subdivision, the requirement to post a surety bond as set forth in this

subdivision shall not apply to any dealer who is engaged exclusively in

the business of buying, selling or dealing in motor vehicles other than

those motor vehicles with a gross vehicle weight rating of ten thousand

pounds or less and which are commonly classified as a passenger

automobile, sport utility vehicle, light truck, pick up truck, van,

minivan, or suburban, such as buses, school buses, garbage trucks,

marine trailers, tow trucks, motorcycles, recreational vehicles,

snowmobiles, trailers, mobile homes, or construction equipment.

Provided, further, that such requirement also shall not apply to any

dealer who is engaged exclusively in the business of buying, selling or

dealing in motor vehicles solely for conversion for use as a tow truck.

7. Issuance of certificate. a. If the commissioner is satisfied that

the applicant for a new motor vehicle dealer registration certificate is

party to a franchise or franchises authorizing such applicant to sell or

lease lines or makes of new motor vehicles which the applicant proposes

to sell or lease from the locations described in the application for the

sale or lease of such lines or makes and if the commissioner otherwise

approves the application, upon payment of the prescribed fee, he or she

shall issue a new motor vehicle dealer registration certificate in such

form as he or she may prescribe. Every new motor vehicle dealer

registration certificate shall by its terms permit the sale or lease of

the particular lines or makes of new motor vehicles only from a location

or locations authorized for such sale or lease in the franchise or

franchises between such new motor vehicle dealer and the manufacturers

or distributors of such new motor vehicles. The commissioner may, in his

or her discretion, issue such certificates of registration and number

plates on a staggered expiration basis, in which event the fees set

forth in subdivision six of this section for such certificate shall be

prorated on a monthly basis. A new motor vehicle dealer registered under

this section shall notify the commissioner of any change of address of

the locations of his or her place or places of business and whether or

not such locations are approved as locations for the sale or lease of

new motor vehicles in a franchise and which lines or makes are so

approved for sale or lease at each location pursuant to the franchise or

franchises within thirty days after such change is made, and the

commissioner shall be authorized to cancel the registration upon failure

to give such notice. A copy of each franchise affected by any such

change or other proof satisfactory to the commissioner shall accompany

the notice to the commissioner. If any location shall cease to be

approved by the new motor vehicle manufacturer or distributor for the

sale or lease of the line or make of new motor vehicle, then such new

motor vehicle dealer shall immediately cease selling or leasing such

line or make of new motor vehicle from such location and shall notify

the commissioner within thirty days of such change, after which such new

motor vehicle dealer registration certificate shall be modified to

reflect such change.

b. Registration certificate for qualified dealer. If a dealer makes

application, under penalty of perjury, for a registration certificate as

a qualified dealer, the commissioner shall issue a registration as a

qualified dealer to such dealer upon payment of the prescribed fee.

c. Registration certificate for other than new motor vehicle dealer or

qualified dealer. If the commissioner approves the application of an

applicant for a registration certificate other than a new motor vehicle

dealer certificate or a qualified dealer certificate, upon payment of

the prescribed fee, he or she shall issue a registration certificate in

such form as he or she may prescribe.

c-1. Special provisions relating to mobility vehicles. (i) Any dealer,

other than a new motor vehicle dealer, engaged in displaying,

advertising, storing and/or demonstrating mobility vehicles shall notify

prospective purchasers regarding any warranty on the mobility

modifications and the effect of any such modifications or alterations on

any warranty on the underlying motor vehicle and, upon the sale of any

such mobility vehicle, provide the purchaser with any warranty

information available to any such dealer relating to the underlying

motor vehicle.

(ii) Notwithstanding the provisions of article twelve-A of this

chapter, a dealer engaged in displaying, advertising, storing and/or

demonstrating mobility vehicles may, without obtaining a repair shop

license pursuant to such article twelve-A, perform repairs on those

parts of the mobility vehicle that are unique to the modifications made

thereto and which are not part of the original manufactured motor

vehicle.

d. The commissioner may, in his or her discretion, issue such

certificates of registration and number plates on a staggered expiration

basis, in which event the fees set forth in subdivision six of this

section for such certificate shall be prorated on a monthly basis. A

registrant shall notify the commissioner of any change of address of his

or her principal place of business within thirty days after such change

is made, and the commissioner shall be authorized to cancel the

registration upon failure to give such notice.

e. A registration issued under this section may be renewed upon

application therefor in such form as the commissioner may prescribe,

upon payment of the fee as herein prescribed.

f. Except as provided in paragraph (bb) of subdivision two of section

four hundred sixty-three of this title and subparagraph (iii) of this

paragraph:

(i) The commissioner shall not issue any certificate of registration

authorized by this section to any franchisor, manufacturer, distributor,

distributor branch or factory branch, as such terms are defined in

section four hundred sixty-two of this title, or to any subsidiary,

affiliate or controlled entity thereof, except that the commissioner may

renew such certificate previously issued or otherwise approved to

operate to a franchisor prior to July first, two thousand six. Nothing

in this section shall preclude the establishment of such facilities

necessary to continue the ongoing operation of any holder of a

certificate of registration authorized by this section or otherwise

approved to operate to a franchisor provided such original certificate

or approval was granted prior to July first, two thousand six.

(ii) On or after the effective date of this subparagraph, the

commissioner shall not issue any certificate of registration, or renew

any certificate, unless the original certificate was issued before July

first, two thousand six, to any motor vehicle dealer in which a

franchisor, manufacturer, distributor, distributor branch or factory

branch, as such terms are defined in section four hundred sixty-two of

this title, or any subsidiary, affiliate or controlled entity thereof,

has acquired, or possesses, a controlling interest in the franchise

entity except:

(1) when operating such franchise for a temporary period, not to

exceed one year, during the transition from one owner of the motor

vehicle dealership to another, provided, however, that such temporary

period may be extended once for an additional period not to exceed one

year for good cause. Provided that for franchisors of house coaches, the

period of temporary ownership of a franchised house coach dealership may

be extended in one year increments for good cause shown, except that the

aggregate of such extensions shall not exceed five years; or

(2) when operating such franchise temporarily under a plan with an

independent individual who is obligated to make a significant investment

in the dealership that is subject to loss and has an ownership interest

or expects to acquire full ownership in a reasonable period under

reasonable terms and conditions, provided that a reasonable period shall

be presumed to not exceed eight years.

(iii) Notwithstanding any other provision of this paragraph or any

provision of paragraph (bb) of subdivision two of section four hundred

sixty-three of this title, the commissioner may renew any certificate of

registration that was issued to a franchisor, manufacturer, distributor,

distributor branch or factory branch, as such terms are defined in

section four hundred sixty-two of this title, or to any subsidiary,

affiliate or controlled entity thereof, prior to March twenty-sixth, two

thousand fourteen; provided, however, that such franchisor,

manufacturer, distributor, distributor branch or factory branch, or any

subsidiary, affiliate or controlled entity thereof, is a manufacturer

that manufactures or assembles exclusively zero emissions vehicles, or

is a subsidiary, affiliate, or controlled entity of such a manufacturer;

and provided further that a controlling interest in such original

franchisor, manufacturer, distributor, distributor branch or factory

branch or any subsidiary, affiliate or controlled entity was not

transferred, sold or conveyed to another person or entity, other than to

a subsidiary, affiliate or controlled entity of such franchisor,

manufacturer, distributor, distributor branch or factory branch. For

purposes of this paragraph, zero emission vehicles shall have the same

meaning as under part two hundred eighteen of title six of the New York

code of rules and regulations.

(iv) Notwithstanding any other provision of this paragraph or any

provision of paragraph (bb) of subdivision two of section four hundred

sixty-three of this title, the commissioner may issue or renew any

certificate of registration to a franchisor, manufacturer, distributor,

distributor branch or factory branch, as such terms are defined in

section four hundred sixty-two of this title, or to any subsidiary,

affiliate or controlled entity thereof, that manufactures or assembles

buses exclusively; provided, however, that such certificate shall be

issued exclusively for the sale of buses to public transportation

providers; and provided further, however, that such franchisor,

manufacturer, distributor, distributor branch or factory branch, or any

subsidiary, affiliate or controlled entity thereof: (1) is a

manufacturer that manufactures or assembles exclusively buses, or is a

subsidiary, affiliate, or controlled entity of such a manufacturer; and

(2) sells such buses under such certificate of registration solely to

public transportation providers. For purposes of this subparagraph, the

term "public transportation provider" shall mean public transportation

systems eligible to receive operating assistance under the provisions of

section eighteen-b of the transportation law, and the term "public

transportation system" shall mean: (A) any public benefit corporation

constituting a transportation authority, or a subsidiary thereof, or any

public transportation corporation constituted as an instrumentality of

the state, or a subsidiary thereof, directly or through a contract with

another entity, that provides mass transportation services to the

general public; or (B) any Indian tribe or any county, city, town or

village that provides mass transportation services to the general public

directly or through a contract with another entity pursuant to section

one hundred nineteen-r of the general municipal law.

8. Use. Transporter number plates issued under this section shall be

used only for the limited operation of vehicles owned or controlled by

the registrant for the purpose of weighing, testing, dismantling,

transporting or delivering the same, or for the purpose of moving such

vehicles in connection with making installations thereon or improvements

thereto, or the repossession or foreclosure thereof, or for the

operation, for demonstration purposes, of any vehicle owned by a

manufacturer, or for transporting or delivering the vehicle upon which

the plates are displayed and additional vehicles carried in whole or in

part upon such vehicle.

Except as provided in section four hundred sixteen of this article,

dealer number plates issued under this section may be used for all

purposes for which transporter plates may be used and, in addition, may

be used for the operation of any vehicle owned or controlled by the

registrant and held for sale or demonstration, except a vehicle rented

to another, a vehicle used to transport passengers for hire, a vehicle

commonly called a "tow truck" or "wrecker" and used by the dealer for

such purposes, a vehicle equipped for the purpose of towing or pushing

disabled or nonoperated vehicles or a commercial or suburban type

vehicle used by the dealer for commercial purposes other than directly

affecting the sale or demonstration of that particular vehicle. In

addition, dealer, manufacturer, or transporter number plates may be used

for any non-self-propelled device used for the transport of modular

homes. Except as provided in section four hundred sixteen of this

article, manufacturer number plates issued under this section may be

used for all purposes for which transporter plates may be used and, in

addition, may be used for the operation of any vehicle owned or

controlled by the registrant and held for demonstration, except a

vehicle rented to another, a vehicle used to transport passengers for

hire, a vehicle commonly called a "tow truck" or "wrecker" and used by

the manufacturer for such purposes, a vehicle equipped for the purpose

of towing or pushing disabled or nonoperated vehicles or a commercial or

suburban type vehicle used by the manufacturer for commercial purposes

other than directly affecting the demonstration of that particular

vehicle.

Dealer, manufacturer, or transporter number plates issued upon renewal

of a dealer, manufacturer, or transporter registration may be used

during the thirty day period immediately preceding the expiration date

of such registration, including such expiration date.

9. Suspension, revocation and refusal to issue or to renew a

registration. The commissioner or any person deputized by him may deny

the application of any person for registration under this section and

suspend or revoke a registration under this section or refuse to issue a

renewal thereof if he or such deputy determines that such applicant or

registrant or any officer, director, stockholder, or partner, or any

other person directly or indirectly interested in the business:

a. Has made a material false statement in his application; or

b. Has used or permitted the use of number plates contrary to law; or

c. Has been guilty of fraud or fraudulent practices, or has practiced

dishonest or misleading advertising; or

d. Has failed to comply with any of the rules and regulations of the

commissioner for the enforcement of this article or with any provision

of this chapter or article thirty-five-B of the general business law

applicable thereto; or

e. Has wilfully violated any provisions of the motor vehicle retail

instalment sales act, the motor vehicle retail leasing act or section

one hundred ninety-eight-c of the general business law; or

f. Does not have a place of business within the meaning of this

section; or

g. Has been convicted of any crime involving dishonesty or deceit; or

h. Was the former holder, or was an officer, director, stockholder, or

partner, in a corporation or partnership which was the former holder of

a dealer's registration, which was suspended or revoked by the

commissioner.

9-a. Hearings; temporary suspension. (a) No registration shall be

suspended or revoked, or renewal refused, except upon notice to the

registrant and after an opportunity to be heard. Provided however, upon

a written notice of temporary suspension delivered by certified mail to

the registrant, a registration may be temporarily suspended pending a

hearing. Any such notice of temporary suspension shall provide that the

suspension is effective seventy-two hours after mailing of such notice

and shall provide that a hearing be scheduled within ten days after the

effective date of the temporary suspension.

(b) The applicant may be heard in person or by counsel. The hearing

shall be at such time and place as the commissioner shall prescribe. The

commissioner or the commissioner's designee may inspect the pertinent

books, records, letters and contracts of a registrant relating to any

written complaint or charge against such registrant. The commissioner or

the commissioner's designee shall have the power to subpoena and bring

before a hearing officer any person in this state, and administer an

oath to and take testimony of any person or cause the person's

deposition to be taken. A subpoena issued under this section shall be

regulated by the civil practice law and rules.

10. Suspension and revocation of number plates. The commissioner may

suspend or revoke number plates issued pursuant to subdivision four of

this section, if he determines that the registrant to whom these plates

have been issued has used or permitted the use of such number plates

contrary to law or to the regulations of the commissioner with respect

to the use thereof. The registrant to whom such number plates have been

issued shall have an opportunity to be heard, and the provisions of

subdivision nine of this section shall apply to hearings held under this

subdivision, and to review of determinations made by the commissioner

hereunder.

11. Following the suspension or revocation of the certificate of

registration of a dealer, manufacturer, or transporter or number plates,

pursuant to this section, the failure of the holder or any other person

possessing the certificate of registration, number plates or

certificates of sale issued to a dealer pursuant to the regulations of

the commissioner, to deliver the same to the suspending or revoking

officer, peace officer acting pursuant to his or her special duties,

police officer directed by the commissioner to secure possession

thereof, or agent of the commissioner, displaying authorization to act

in such capacity along with a certified copy of the order revoking or

suspending such registration or number plates, shall be a misdemeanor.

If any person shall fail to deliver a certificate of registration,

number plates or certificates of sale as provided herein, the

commissioner shall forthwith direct any peace officer acting pursuant to

his or her special duties or police officer to secure possession thereof

and to return the same to the commissioner.

12. The commissioner, or any person deputized by him, in addition to

or in lieu of revoking or suspending the certificate of registration of

a registrant in accordance with the provisions of this article, may in

any one proceeding by order require the registrant to pay to the people

of this state a penalty for a first violation a sum not exceeding one

thousand dollars for each violation found to have been committed; and

for a second or subsequent violation not arising out of the same

incident both of which were committed within a period of thirty months,

a sum of not more than one thousand five hundred dollars for each

violation found to have been committed; provided, however, the penalty

for each and any violation of paragraph c of subdivision nine of this

section found to have been committed shall be no less than three hundred

and fifty dollars and no more than one thousand five hundred dollars,

except that if a finding of financial loss has been made pursuant to

subdivision fourteen of this section, the amount of such penalty may be

increased by the amount of financial loss so found, and upon the failure

of such registrant to pay such penalty within twenty days after the

mailing of such order, postage prepaid, registered or certified, and

addressed to the last known place of business of such registrant, unless

such order is stayed by an order of a court of competent jurisdiction,

the commissioner may revoke the certificate of registration of such

registrant or may suspend the same for such period as he may determine.

Civil penalties assessed under this subdivision shall be paid to the

commissioner for deposit into the state treasury, and unpaid civil

penalties may be recovered by the commissioner in a civil action in the

name of the commissioner.

13. In addition, as an alternative to such civil action and provided

that no proceeding for judicial review shall then be pending and the

time for initiation of such proceeding shall have expired, the

commissioner may file with the county clerk of the county in which the

registrant is located a final order of the commissioner containing the

amount of the penalty assessed. The filing of such final order shall

have the full force and effect of a judgment duly docketed in the office

of such clerk and may be enforced in the same manner and with the same

effect as that provided by law in respect to executions issued against

property upon judgments of a court of record.

14. Restitution; assessment. a. Upon a determination that a registrant

has done or failed to do any act for which suspension of the

registrant's registration or a civil penalty against the registrant

could be imposed, the person making such determination may make a

finding of financial loss to any complainant or complainants resulting

from the actions of the registrant. The person making such finding may

provide that if the registrant makes restitution to the complainant or

complainants for the amount or amounts so found, that payment of such

restitution may be substituted in lieu of any suspension or civil

penalty, or a specified portion thereof imposed upon the registrant.

However, a finding of financial loss shall only be made if the

complainant (i) agrees to accept the amount so found, if offered by the

registrant, and (ii) is not a party to any litigation which is pending

or which has gone to judgment in relation to the same matter in any

civil court.

b. The amount of financial loss which may be found and proposed as

restitution shall be limited to an amount necessary to compensate the

complainant or complainants for actual losses caused by the registrant's

improper activity. Neither punitive nor incidental damages may be

included in the finding of financial loss.

c. If payment of restitution to the complainant is authorized in lieu

of all or a portion of a suspension or civil penalty, in order for the

registrant to exercise the option to make such payment, such payment

must be made by means of a certified check or money order payable to the

complainant or complainants delivered to an office of the department as

directed by the commissioner or his agent within thirty days of the date

of notice of suspension and/or civil penalty. Upon receipt of such

certified check or money order, the department shall forward the same to

the complainant or complainants. In the event that the registrant should

fail to make payment for restitution within such thirty days, but, at a

later time, pays such civil penalty, the department shall deduct from

such civil penalty the amount assessed for restitution, and shall mail a

check for such amount to the complainant or complainants.

d. If payment of restitution may be substituted in lieu of a civil

penalty or portion of a civil penalty, and the registrant does not

exercise the option to make such payment, the civil penalty becomes due

as provided in subdivision twelve of this section and the provisions of

that subdivision and subdivision thirteen of this section relating to

suspension of registration and recovery of civil penalties shall apply.

e. Any payment made in compliance with such a finding of financial

loss shall not preclude any civil action which may be brought by either

the complainant or registrant, and any such finding may be considered

but shall not be binding upon any court before which any such action is

brought.

15. Miscellaneous provisions. The commissioner may, in his or her

discretion, limit the number of sets of number plates which shall be

issued to any registrant. The provisions of subdivision three of section

four hundred one of this title with respect to the fee for lost,

mutilated or destroyed certificates and number plates shall apply to

certificates and number plates issued under this section.

In the event of the loss or theft of any dealer, manufacturer, or

transporter number plate or set of such number plates whether with or

without a date tag or tags, or any date tag or set of date tags, the

dealer or manufacturer must immediately notify the police of such fact

and in the event of loss, theft, mutilation or destruction of any such

items the dealer or manufacturer must immediately file a statement and

proof of the facts as the commissioner shall require. The provisions of

section four hundred two and four hundred eleven of this title with

respect to the care and display of number plates shall apply to number

plates issued under this section. Registration under this section shall

be upon the condition that the registrant shall conform to such

reasonable requirements as shall be prescribed by the commissioner.

The commissioner may, in his or her discretion, require a registrant

to maintain a record in a prescribed form of all vehicles received or

disposed of by him or her, which records shall be open at all times for

inspection by the commissioner, his or her representatives and any peace

officer, acting pursuant to his or her special duties, or police

officer.

If registration under this section shall be issued in the names of two

or more persons as partners and a change occurs in the membership of

such partnership, the registration shall not expire so long as any one

of the persons named in such registration is a member of the partnership

or carries on the business of the partnership as surviving member of the

partnership. However, when any such change occurs and the registration

does not expire, the partners or surviving member after such change

shall forthwith file with the commissioner a statement regarding such

partnership in such form and giving such information as the commissioner

shall require, and the commissioner shall issue a new certificate of

registration.

16. Unregistered operation; operation while suspended or revoked;

procedures and penalties. a. The commissioner or any person deputized by

him shall hear and determine any allegation that a person has operated

as a dealer without being registered as required by subdivision three of

this section or while registration is suspended or revoked. Upon a

determination that a person has so operated, the commissioner or person

deputized by him shall assess civil penalties as provided in paragraphs

b and c of this subdivision.

b. Except as provided in paragraph c of this subdivision, any person

who operates as a dealer without being registered shall be required to

pay to the people of this state a civil penalty in the sum of one

thousand dollars. However, any such person against whom such penalty has

been assessed may avoid all but five hundred dollars of such penalty by

obtaining a registration as required by this article, provided that

application for such registration is made not more than ten days after

the imposition of such penalty.

c. (i) Any person who operates as a dealer while his registration is

revoked or suspended, shall pay to the people of this state a civil

penalty in the sum of one thousand dollars. Such civil penalty may not

be avoided.

(ii) Any person who operates as a dealer without being registered as

required by subdivision three of this section who has previously had a

civil penalty assessed for unregistered operation shall pay to the

people of this state a civil penalty in the sum of one thousand dollars.

Any person who operates as a dealer without being registered as required

by subdivision three of this section who has had two previous civil

penalties assessed for unregistered operation not arising from the same

incident all of which were committed within a period of thirty months

shall pay to the people of this state a civil penalty in the sum of four

thousand ten dollars. Such civil penalties may not be avoided.

(iii) No person who operates as a dealer without being registered as

required by subdivision three of this section or while his or her

registration is revoked or suspended shall park a motor vehicle, which

he or she owns or controls and holds for sale or demonstration, upon a

public highway of this state without first being registered in

accordance with the provisions of section four hundred one of this

chapter. Any such person shall, in addition to any penalties imposed

pursuant to paragraph b of this subdivision or subparagraph (ii) of this

paragraph, be required to pay to the people of this state an additional

civil penalty of three hundred dollars for each motor vehicle owned or

controlled and held for sale or demonstration by such person which is

parked upon the public highways of this state without first being

registered in accordance with the provisions of section four hundred one

of this chapter.

d. The commissioner, or any person deputized by him, in addition to

imposing a civil penalty for unregistered operation as a dealer, may, in

any one proceeding, make a determination that the unregistered dealer

has caused a financial loss to a complainant or complainants and may

increase the civil penalty by the amount of financial loss. The person

making such finding may provide that if the unregistered dealer makes

restitution to the complainant or complainants for the amount or amounts

so found, that payment of such restitution may be substituted for the

increase in the civil penalty caused by the finding of financial loss.

However, a finding of financial loss shall only be made if the

complainant (i) agrees to accept the amount so found, if offered by the

unregistered dealer, and (ii) is not a party to any litigation which is

pending or in which judgment has been entered in any civil action in any

court of competent jurisdiction.

e. Civil penalties assessed under this section shall be paid to the

commissioner for deposit into the state treasury, and unpaid civil

penalties may be recovered by the commissioner in a civil action in the

name of the commissioner. In addition, as an alternative to such civil

action and provided that no proceeding for judicial review shall then be

pending and the time for initiation of such proceeding shall have

expired, the commissioner may file with the county clerk of the county

in which the registrant is located a final order of the commissioner

containing the amount of the penalty assessed. The filing of such final

order shall have the full force and effect of a judgment duly docketed

in the office of such clerk and may be enforced in the same manner and

with the same effect as that provided by law in respect to executions

issued against property upon judgments of a court of record.

f. No allegation of unregistered operation as a dealer shall be heard

or determined unless notice of such allegation has been mailed to such

person within two years after the date of the alleged unregistered

operation.

17. Improper display of signs. a. The holder of a dealer registration

shall remove or cause to be removed any sign which contains the

registration number of the dealer which is visible to the public and

which is required to be displayed by this article or regulations

promulgated thereunder if the registration is revoked or suspended or

the dealer is out of business. If the registration is only suspended,

the holder may cover up the sign instead of removing it.

b. No person shall permit the display of any sign required to be

displayed by this article or regulations promulgated thereunder

indicating to the public that an official dealer is operating unless a

dealer registration has been issued to that person and is currently

valid.

18. Rights of dealers. The rights of all new motor vehicle dealers

under this article may be exercised from any location or locations which

are from time to time approved by their franchisors and the commissioner

as prescribed in this article. The rights of all qualified dealers under

this article may be exercised from any location or locations from which

they operate from time to time; provided, however, that no qualified

dealer shall operate from more than two locations within the four

counties of Kings, Queens, Nassau, and Suffolk; and provided further

that no qualified dealer shall operate from more than one location in

any one county. The total number of locations from which a qualified

dealer may operate shall not exceed that number of locations operated by

such qualified dealer on December thirty-first, nineteen hundred

ninety-eight. It shall be unlawful for any person to interfere with the

rights of, or discriminate against, any new motor vehicle dealer or any

qualified dealer under this article. The commissioner shall penalize

those persons who violate the provisions of this section as enacted by

chapter four hundred fifty-one of the laws of nineteen hundred

ninety-nine and the chapter of the laws of two thousand which amended

this subdivision as provided by this section. Nothing contained in this

article shall be construed to prohibit a new motor vehicle dealer, a

qualified dealer, or a dealer, respectively, from utilizing the internet

to engage in such activities as each are respectively permitted under

this article and under other applicable laws, or affect where a new

motor vehicle dealer or a qualified dealer may deliver a new motor

vehicle.

19. Disclosures by qualified dealers; penalties. a. Every qualified

dealer who advertises in newspapers, magazines, or by direct mail the

availability of new motor vehicles for sale shall clearly disclose that

such qualified dealer is not a franchised new motor vehicle dealer.

b. Every qualified dealer shall prominently and conspicuously post a

sign, in such a manner that it is likely to be noticeable to anyone

entering the premises, which sign shall clearly state: "(name of

qualified dealer) is not a franchised dealership and does not represent

a manufacturer. We are not authorized to perform recall or original

factory warranty work."

c. Every contract for the sale of a new motor vehicle entered into by

a qualified dealer and the purchaser shall contain the following

statement: "(name of qualified dealer) is not a franchised dealership

and does not represent a manufacturer. We are not authorized to perform

recall or original factory warranty work."

d. A qualified dealer who fails to comply with the requirements of

this subdivision, shall be subject to the penalties provided by this

section. Further, a person who has purchased a new motor vehicle from a

qualified dealer pursuant to a contract which does not contain the

disclosure required under paragraph c of this subdivision, shall be

entitled to rescind the sale and obtain full restitution of any amounts

paid, plus reasonable court costs and attorneys fees, within four months

of the date of purchase.

20. Restrictions on transferability and operation of certain qualified

dealerships. a. A qualified dealer may sell, devise, assign, convey or

otherwise transfer any or all of its assets, including without

limitation all rights to conduct the activities of a qualified dealer

hereunder and further, the owner of an equity interest in a qualified

dealership may sell, devise, assign, convey or otherwise transfer any or

all of its equity interest in such qualified dealership, subject to the

conditions set forth in this subdivision. To the extent that such

qualified dealer conducts such activities at more than one location as

permitted under this article, then such qualified dealer may transfer

such rights on a location by location basis; provided, however, that

such a transferee shall acquire no greater rights to relocate than those

of his or her transferor, and provided further below, that such

transferee shall remain subject to the provisions of this subdivision

exactly as they applied to his or her transferor.

b. A transferee who acquires the assets and/or an equity interest in a

qualified dealer as defined in subparagraph (ii), (iii) or (iv) of

paragraph g of subdivision one of this section and is the parent,

spouse, child or sibling of an individual who was an equity holder of

such qualified dealer may conduct activities as specified pursuant to

this section without restriction.

c. A transferee who acquires substantially all of the assets and/or a

controlling equity interest in a qualified dealer as defined in

subparagraph (ii), (iii) or (iv) of paragraph g of subdivision one of

this section who is not the parent, spouse, child or sibling of an

individual who was an equity holder of such qualified dealer may conduct

activities as specified pursuant to this section; provided, however,

that such transferee, in any calendar year, shall not be permitted to

sell more than one hundred ten percent of the number of new motor

vehicles sold by the transferor or qualified dealer during the twelve

month period ending on the last day of the calendar month preceding the

date of transfer of such rights.

d. A transferee who acquires ten per cent or more of an equity

interest after August 31, 1999 in a qualified dealer as defined in

subparagraph (ii), (iii), or (iv) of paragragh g of subdivision one of

this section and is a publicly traded corporation may conduct activities

as specified pursuant to this section; provided, however, that such

transferee, in any calendar year, shall not be permitted to sell more

than one hundred ten percent of the number of new motor vehicles sold by

the transferor or qualified dealer during the twelve month period ending

on the last day of the calendar month preceding the date of transfer of

such rights.

e. Each transferee who acquires substantially all of the assets and/or

a controlling equity interest in a qualified dealer from a transferee as

defined in paragraph b, c or d of this subdivision shall not be

permitted to sell a number of new motor vehicles in any calendar year in

excess of the number of new motor vehicles sold by such transferor

qualified dealer during the twelve month period ending on the last day

of the calendar month preceding the date of transfer of such rights.

f. The rights of a qualified dealer under subparagraph (ii), (iii) or

(iv) of paragraph g of subdivision one of this section are also deemed

transferred for purposes hereof in the event that, after August

thirty-first, nineteen hundred ninety-nine, (i) the controlling equity

interest of such qualified dealer is transferred (in any one or series

of transactions) to any person or persons, other than the parent,

spouse, child or sibling of an individual who is an equity holder of

such qualified dealer, or (ii) there occurs any merger, combination or

consolidation of, with or into the business entity which constitutes

such qualified dealer.

g. Nothing contained herein shall (i) prohibit a qualified dealer or

the parent, spouse, child or sibling who is the equity holder of such

qualified dealer from forming a corporation or limited liability company

to operate and wholly own the qualified dealer; (ii) restrict the

ability of a qualified dealer to transfer a controlling equity interest

to a corporation or a limited liability company operated and wholly

owned by an individual who is an equity holder of such qualified dealer;

or (iii) restrict the ability of a qualified dealer to transfer an

equity interest in the stock and/or assets of a qualified dealer to a

full-time employee of such qualified dealer.

21. New motor vehicle etching kits. Every new motor vehicle dealer and

every qualified dealer shall be required to stock etching kits that are

capable of etching a traceable serial number onto the catalytic

converter of a new motor vehicle that can be clearly seen and quickly

linked back to the vehicle. Such etching kits shall be offered by every

new motor vehicle dealer and qualified dealer to any person purchasing a

new motor vehicle, at no more than the cost of such etching kit to such

dealer.

22. Compliance. All dealers and automobile broker businesses

registered under subdivisions three and three-a of this section shall

certify and attest to compliance with sections three hundred

ninety-nine-cc, as added by chapter 655 of the laws of 2005, three

hundred ninety-nine-dd, as added by chapter 487 of the laws of 2006,

three hundred ninety-nine-ddd, three hundred ninety-nine-h, three

hundred ninety-nine-oo, three hundred ninety-nine-p, three hundred

ninety-nine-pp, eight hundred ninety-nine-bb of the general business

law, and part three hundred fourteen of title sixteen of the code of

federal regulations as applicable.

23. Automobile broker record requirements. (a) For each completed

transaction and within three business days of consummation thereof,

automobile brokers shall maintain a permanent paper file record that

clearly evidences and records the make, model, year, color and vehicle

identification number of all previously unregistered motor vehicles for

which such broker has provided a service of purchasing, arranging,

assisting, facilitating or effecting the purchase or lease of such motor

vehicle. Such records shall be maintained for a six-year period after

consummation of the transaction. Such records shall also include the

name and address of the purchaser or lessee of such motor vehicle, the

date of sale or commencement of lease with respect to such motor vehicle

and the name and address of the dealer from which the motor vehicle was

purchased or leased.

(b) The records maintained by the automobile broker businesses shall

include a copy of the dealer rate sheets received by the automobile

broker from the dealers that were relied upon by the automobile broker

in connection with such transaction.

(c) Such records shall be open for inspection by the commissioner, or

his or her agent, during reasonable business hours.

(d) As an alternative to paper file records, an automobile broker may

use a computer and appropriate software to maintain the records required

to be kept by this section, provided all information required by

paragraphs (a) and (b) of this subdivision are duly recorded and

maintained in accordance with this subdivision.

24. Maintenance records. For each sale or lease of a motor vehicle

that involves an automobile broker business, the dealer must obtain

evidence of the automobile broker business' registration and the

broker's registration number and maintain such records in the deal

jacket for each transaction which also shall contain the purchase order,

copies of the title and registration documents, the bill of sale and the

retail installment sale contract required under article ten of the

personal property law or the retail lease agreement required under

article nine-A of the personal property law.

25. Broker compensation. No dealer may offer or pay an automobile

broker business any fee, or commission, other than compensation

disclosed pursuant to section seven hundred thirty-eight or seven

hundred forty-one-b of the general business law or section three hundred

two or three hundred thirty-seven of the personal property law;

provided, however, that the automobile broker business may not accept

any such fee or commission from the dealer if the broker has or will

accept payment from the buyer or lessee of the automobile.