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

New York § 415

• Jurisdiction: New York
• Law VAT: Vehicle & Traffic
• Title 4: Registration of Vehicles
• Art. 16: Registration of Dealers and Transporters

Text

§ 415. Registration of manufacturers, dealers, repairmen and others.\n1. Definitions. The following terms when used in this article, shall be\ndeemed to mean and include:\n a. "Dealer" means a person engaged in the business of buying, selling\nor dealing in motor vehicles, motorcycles or trailers, other than mobile\nhomes or manufactured homes, at retail or wholesale; except, however,\ntrailers with an unladen weight of less than one thousand pounds. For\nthe purposes of this section, a "mobile home" or "manufactured home"\nmeans a mobile home or manufactured home as defined in section one\nhundred twenty-two-c of this chapter. Any person who sells, or offers\nfor sale more than five motor vehicles, motorcycles or trailers in any\ncalendar year or who displays or permits the display of three or more\nmotor vehicles, motorcycles or trailers for sale at any one time or\nwithin any one calendar month upon premises owned or controlled by him\nor her, if such vehicles were purchased, acquired or otherwise obtained\nby such person for the purpose of resale, will be regarded as a dealer.\nExcept as otherwise provided in subdivisions three, five, six-b, and\nseven of this section, the term "dealer" shall include a "new motor\nvehicle dealer" as defined by paragraph f of this subdivision and a\n"qualified dealer" as defined in paragraph g of this subdivision.\n b. "Person" means any natural person, firm, corporation, partnership,\nlimited liability company, entity, joint venture, association or\norganization.\n c. "Place of business" means a designated location at which the\nbusiness of the dealer is conducted, and, in relation to a retail\ndealer, facilities for displaying new or used motor vehicles.\n d. "Retail dealer" means a dealer whose business consists in whole or\nin part of buying, selling or dealing in motor vehicles, motorcycles or\ntrailers at retail.\n e. "Wholesale dealer" means a dealer whose business consists\nexclusively of buying, selling or dealing in motor vehicles, motorcycles\nor trailers at wholesale.\n f. "New motor vehicle dealer" means a dealer who engages in the\nactivities described in paragraph a of this subdivision if such\nactivities relate to new motor vehicles and if such dealer is party to a\nfranchise, as the terms "new motor vehicle" and "franchise" are defined\nin section four hundred sixty-two of this title; provided, however, for\npurposes of this definition, a new motor vehicle shall include only\nthose motor vehicles commonly classified as a passenger automobile,\nsport utility vehicle, light truck, pickup truck, van, minivan, or\nsuburban, with a gross vehicle weight rating of ten thousand pounds or\nless, and shall not include (i) any such vehicle which has been\nconverted for use as a tow truck, or (ii) a motor vehicle for which the\ncurrent ownership document is a statement of acquisition issued pursuant\nto section four hundred twenty-nine of this title, a salvage\ncertificate, salvage certificate of title, nonrepairable certificate, or\nsimilar document issued by any state or jurisdiction; or (iii) any motor\nvehicle commonly classified as a bus, school bus, garbage truck, marine\ntrailer, tow truck, motorcycle, recreational vehicle, snowmobile,\ntrailer, mobile home or construction equipment; and provided further\nthat: (i) a dealer is a new motor vehicle dealer only with respect to\nthose vehicles which are of the same make as those which that dealer is\nauthorized to sell at that location pursuant to a valid franchise\nagreement; and (ii) a dealer is not acting as a new motor vehicle dealer\nwhen displaying, advertising, storing and/or demonstrating a new\nmobility vehicle.\n g. "Qualified dealer" means a dealer, other than a new motor vehicle\ndealer or a dealer owned in whole or in part, directly or indirectly, by\na manufacturer, who:\n (i) acting through a single person, but operating at one or more\nlocations of such single person, has displayed new motor vehicles for\nsale and/or lease, and has sold and/or leased (excluding sales or leases\nof any affiliates) a minimum of four thousand new and/or used motor\nvehicles annually (of which at least forty percent annually were new\nmotor vehicles) at retail regardless of make or model from any one or\nmore locations of such single person within the state, in each year from\nnineteen hundred ninety-five through and including nineteen hundred\nninety-eight, exclusively; or\n (ii) has displayed new motor vehicles for sale and/or lease, and has\nsold and/or leased (excluding sales or leases of any affiliates) a\nminimum of two hundred twenty-five new and/or used motor vehicles (of\nwhich at least thirty-three and one-third percent were new motor\nvehicles) at retail, regardless of make or model, from any one or more\nlocations within the state, in the twelve-month period preceding August\nthirty-first, nineteen hundred ninety-nine; or\n (iii) was issued an original certificate of registration as a dealer\nwith a validation date of May, nineteen hundred ninety-nine, has\ndisplayed new motor vehicles for sale and/or lease, and has sold and/or\nleased (excluding sales or leases of any affiliates) a minimum of one\nhundred fifty new and/or used motor vehicles (of which at least fifty\nwere new motor vehicles), regardless of make or model, from any one or\nmore locations within the state, in the period between July first,\nnineteen hundred ninety-nine and the effective date of chapter seven of\nthe laws of two thousand. Notwithstanding the provisions of subdivision\neighteen of this section, the total number of locations from which a\nqualified dealer eligible pursuant to this subparagraph may operate\nshall not exceed that number of locations operated by such qualified\ndealer on August thirty-first, nineteen hundred ninety-nine; or\n (iv) was issued a certificate of registration as a dealer new and used\nwith a validation date of February, nineteen hundred ninety-eight and\nhas continuously held a certificate of registration as a dealer for the\nten years preceding the effective date of chapter seven of the laws of\ntwo thousand, and has sold and/or leased (excluding sales or leases of\nany affiliates) a minimum of two hundred new and/or used motor vehicles\n(of which at least twenty percent were new motor vehicles) regardless of\nmake or model, from one or more locations within the state in the period\nbetween September first, nineteen hundred ninety-eight through and\nincluding August thirty-first, nineteen hundred ninety-nine.\n h. For the purposes of this section, "new motor vehicle" means a motor\nvehicle commonly classified as a passenger automobile, sport utility\nvehicle, light truck, pick up truck, van, minivan or suburban which\nmeets any one or more of the following criteria:\n (i) a motor vehicle which has not been placed in consumer use; or\n (ii) a motor vehicle which has not been transferred to someone other\nthan a distributor, new motor vehicle dealer, or qualified dealer; or\n (iii) a motor vehicle which has less than one thousand miles on the\nodometer.\n Provided, however, that such term shall not include any such vehicle\nwhich has been converted for use as a tow truck or any motor vehicle\ncommonly classified as a bus, school bus, garbage truck, marine trailer,\ntow truck, motorcycle, recreational vehicle, snowmobile, trailer, mobile\nhome or construction equipment.\n i. "Used motor vehicle" means any vehicle not included in the\ndefinition of a new motor vehicle. Provided, however, that such term as\nused in paragraph g of this subdivision shall include only those motor\nvehicles commonly classified as a passenger automobile, sport utility\nvehicle, light truck, pick up truck, van, minivan or suburban, with a\ngross vehicle weight rating of ten thousand pounds or less, which (i) is\nnot deemed to be a "new motor vehicle" pursuant to paragraph h of this\nsubdivision, or (ii) has not been converted for use as a tow truck, or\n(iii) is not commonly classified as a bus, school bus, garbage truck,\nmarine trailer, tow truck, motorcycle, recreational vehicle, snowmobile,\ntrailer, mobile home, or construction equipment.\n j. "Lease" means to arrange for a person to enter into an agreement\nsubject to the provisions of article nine-A of the personal property\nlaw, or to act as a lessor as defined in such article.\n k. "Mobility vehicle" means a motor vehicle that is specially\nconverted and equipped to transport a person with a disability and is\naltered or modified for such use by an alterer or final stage\nmanufacturer pursuant to parts 567 and 568 of title 49 of the code of\nfederal regulations or a modifier pursuant to part 595 of title 49 of\nthe code of federal regulations and that:\n (i) has a chassis that contains: (A) a permanently lowered floor or\npermanently lowered frame; or (B) a permanently raised roof and raised\ndoor; and\n (ii) contains at least one of the following: (A) an electronic or\nmechanical wheelchair, scooter, or platform lift that enables a person\nto enter or exit the vehicle while occupying a wheelchair or scooter;\n(B) an electronic or mechanical wheelchair ramp that is installed as an\nintegral part or permanent attachment to the motor vehicle.\n For the purposes of this section, the terms "alterer" and "final-stage\nmanufacturer" shall have the same meanings as such terms are defined in\npart 567.3 of title 49 of the code of federal regulations, and the term\n"modifier" shall mean any motor vehicle repair business that modifies a\nmotor vehicle to enable a person with a disability to operate, or ride\nas a passenger in, the motor vehicle.\n l. "New mobility vehicle" means a mobility vehicle that has not\npreviously been titled or registered for operation by a consumer, either\nas a mobility vehicle or as a motor vehicle.\n m. "Automobile broker business" shall have the meaning set forth in\nsubdivision one of section seven hundred thirty-six of the general\nbusiness law.\n 2. Registration of manufacturers, repairmen and certain others. A\nperson engaged in a business requiring the limited operation of motor\nvehicles, motorcycles or trailers in order to facilitate the delivery,\nrepair or improvement thereof, or the foreclosure or repossession\nthereof or the installation of something thereon or for the purpose of\ndismantling such motor vehicle, motorcycle or trailer, may, instead of\nobtaining vehicle registration, as provided by sections four hundred one\nand four hundred ten of this chapter, apply to the commissioner for\nregistration under this section.\n 3. Registration of new motor vehicle dealers, qualified dealers, and\nother motor vehicle dealers. a. No person shall engage in business as a\nnew motor vehicle dealer, or represent, advertise, or otherwise hold\nhimself or herself out as engaged or intending to engage in the business\nof selling new motor vehicles in this state, unless there shall have\nbeen issued to him or her, for a particular make, a certificate of\nregistration as a new motor vehicle dealer as provided in subdivision\nseven of this section, or unless there shall have been issued to him or\nher a certificate of registration as a qualified dealer as defined in\nparagraph g of subdivision one of this section; provided, however, for\npurposes of this subdivision, a new motor vehicle shall have the same\nmeaning as set forth in paragraph h of subdivision one of this section,\nbut shall not include a motor vehicle for which the current ownership\ndocument is a statement of acquisition issued pursuant to section four\nhundred twenty-nine of this title, a salvage certificate, salvage\ncertificate of title, nonrepairable certificate, or similar document\nissued by any state or jurisdiction. Only a person who has been issued a\ncertificate as a new motor vehicle dealer or a qualified dealer shall be\nentitled to engage in all dealer activities authorized under this\narticle and shall not be required to obtain an additional certificate of\nregistration under paragraph c of subdivision seven of this section. A\nqualified dealer shall be entitled to sell new motor vehicles of any\nmake.\n b. No person shall engage in the business of selling new motor\nvehicles, or represent or advertise that he or she is engaged or intends\nto engage in the business of selling new motor vehicles in this state,\nunless there shall have been issued to him or her a certificate of\nregistration as a new motor vehicle dealer or as a qualified dealer as\nprovided in subdivision seven of this section. No person shall engage in\nbusiness as a dealer, or represent or advertise that he or she is\nengaged or intends to engage in such business in this state, unless\nthere shall have been issued to him or her a certificate of registration\nas provided in subdivision seven of this section. No provision of this\nsection shall be deemed to prohibit any dealer located outside of the\nstate from selling a new motor vehicle to a new motor vehicle dealer or\na qualified dealer. No provision of this section shall be deemed to\nprohibit any person engaged in the leasing of new motor vehicles from\nselling a new motor vehicle to a third-party bank, finance company or\nother commercial lending institution, provided that such sale is made\nincidental to and concurrently with the lease of such new motor vehicle\nby such third party bank, finance company, or other commercial lending\ninstitution as the lessor, to a retail customer.\n c. The issuance of such certificate of registration to a new motor\nvehicle dealer, a qualified dealer, or other motor vehicle dealer shall\nbe deemed to include the right to operate motor vehicles, motorcycles\nand trailers to the extent permitted by subdivision eight of this\nsection, instead of obtaining vehicle registration as provided by\nsections four hundred one and four hundred ten of this title. The\nprovisions of this section shall not apply to persons engaged in the\nbusiness of buying, selling or dealing in snowmobiles and/or snow\ntravellers.\n 3-a. Automobile broker business registration. No person shall engage\nin the automobile broker business or represent or advertise that he or\nshe is engaged or intends to engage in the automobile broker business in\nthis state, unless there shall have been issued to him or her a\ncertificate of registration as an automobile broker business by the\ncommissioner under this section pursuant to an application for\nregistration submitted pursuant to subdivision five of this section.\n 4. Number plates. A dealer, manufacturer, or other person, qualifying\nfor limited use of motor vehicles, motorcycles or trailers under\nsubdivisions two and three of this section, shall be entitled to receive\none or more sets of number plates for display thereon as the\ncommissioner may determine, upon payment of the required fee for each\nset. Number plates issued to dealers under this section shall bear\ndistinctive marks to distinguish them from manufacturer and transporter\nplates to be issued to other persons qualifying under this section.\nNumber plates issued to manufacturers under this section shall bear\ndistinctive marks to distinguish them from dealer and transporter plates\nto be issued to other persons qualifying under this section. A set of\nnumber plates shall consist of two plates in the case of a motor vehicle\nand one plate in the case of a motorcycle or trailer; provided, however,\nthat the commissioner, in his or her discretion, may issue, for any\nregistration year, only one number as a set for a motor vehicle, in\nwhich event a set of number plates for a motor vehicle shall consist of\none plate.\n 5. Application for registration. The application for registration\nunder this section shall be filed with the commissioner in such form and\ndetail as the commissioner shall prescribe, setting forth:\n a. Name and residence address of applicant; if an individual, the name\nunder which he intends to conduct business; if a co-partnership, the\nname and residence address of each member thereof, and the name under\nwhich the business is to be conducted; if a corporation, the name of the\ncorporation and the name and residence address of each of the officers.\n b. The place or places, including the complete address or addresses\nwhere the business is to be conducted and, in the case of an application\nto do business as a new motor vehicle dealer, the names of each line or\nmake of new motor vehicle which a manufacturer or distributor has\nauthorized the applicant to sell from each location and the date of\ninception of the franchise, as defined in section four hundred sixty-two\nof this title, which authorizes the applicant to sell such line or make\nfrom each location. A copy of each such franchise, or other\ndocumentation in lieu thereof satisfactory to the commissioner, shall be\nsubmitted to the commissioner at the time of application and upon each\nrenewal of each certificate to do business as a new motor vehicle\ndealer.\n b-1. The name and address of the surety company which will issue the\nbond required by subdivision six-b of this section. If the bond is to be\nissued by an authorized agent of the surety company licensed by the\nstate, then the name and address of that agent may be provided in lieu\nof the information concerning the surety company.\n b-2. A statement indicating any interest in the applicant's franchise\nentity by a person or entity described in paragraph f of subdivision\nseven of this section.\n b-3. In the case of an application for registration as an automobile\nbroker business, the name and address of the surety company which will\nissue the bond required by subdivision one of section seven hundred\nforty-a of the general business law. If the bond is to be issued by an\nauthorized agent of the surety company licensed by the state, then the\nname and address of that agent may be provided in lieu of the\ninformation concerning the surety company.\n c. Such further information as the commissioner may reasonably\nprescribe.\n d. Before an application for an original certificate of registration\nis approved, the applicant must have on the premises to be licensed\nadequate space and proper facilities to retain and safeguard all records\nand documents he must maintain upon the licensed premises as required by\nthe vehicle and traffic law and the regulations of the commissioner.\n The commissioner may require the applicant for registration to appear\nat such time and place as may be designated by the commissioner for\nexamination to enable him to determine the accuracy of the facts set\nforth in the written application, either for initial registration or\nrenewal thereof.\n Every application under this section shall be verified by the\napplicant.\n * 6. Fees. Every original application for registration as a dealer,\nautomobile broker or transporter shall be accompanied by an application\nfee of thirty-seven dollars and fifty cents, which shall in no event be\nrefunded. The annual fee for registration as a dealer, automobile broker\nor transporter or for renewal thereof shall be two hundred twenty-five\ndollars. The annual fee for any other registration under this section\nshall be fifty dollars. However, the commissioner may, in his or her\ndiscretion, issue a renewal of either registration for a period of two\nyears. The fee for a two-year renewal shall be twice the annual fee. The\nannual fee for dealer, manufacturer, or transporter number plates shall\nbe twenty dollars for each set. If the commissioner issues to dealers a\ndocument which is required to be used by a dealer to sell or transfer a\nvehicle, the fee for the issuance of each such document shall be five\ndollars. There shall be no refund of registration fee or fees for number\nplates in the event of suspension, revocation or voluntary cancellation\nof registration. The fee for any such transfer document issued by the\ncommissioner shall be refunded only upon the surrender of such document\nupon voluntary cancellation of registration.\n * NB Effective until April 1, 2026\n * 6. Fees. Every original application for registration as a dealer,\nautomobile broker or transporter shall be accompanied by an application\nfee of twenty-five dollars, which shall in no event be refunded. The\nannual fee for registration as a dealer, automobile broker or\ntransporter or for renewal thereof shall be one hundred fifty dollars.\nThe annual fee for any other registration under this section shall be\nfifty dollars. However, the commissioner may, in his or her discretion,\nissue a renewal of either registration for a period of two years. The\nfee for a two-year renewal shall be twice the annual fee. The annual fee\nfor dealer, manufacturer, or transporter number plates shall be twenty\ndollars for each set. If the commissioner issues to dealers a document\nwhich is required to be used by a dealer to sell or transfer a vehicle,\nthe fee for the issuance of each such document shall be one dollar.\nThere shall be no refund of registration fee or fees for number plates\nin the event of suspension, revocation or voluntary cancellation of\nregistration. The fee for any such transfer document issued by the\ncommissioner shall be refunded only upon the surrender of such document\nupon voluntary cancellation of registration.\n * NB Effective April 1, 2026\n * 6-a. Fees; deposited. Fees assessed under this section shall be paid\nto the commissioner for deposit to the general fund, with the exception\nof the four dollar increase in the fee for issuance of a document to be\nused by a dealer to sell or transfer a vehicle collected pursuant to\nsubdivision six of this section, which shall be deposited to the general\nfund through March thirty-first, two thousand four and from April first,\ntwo thousand four and thereafter to the dedicated highway and bridge\ntrust fund; and with the exception of the twelve dollar and fifty cent\nincrease in the fee for original application for registration as a\ndealer or transporter pursuant to subdivision six of this section and\nthe seventy-five dollar increase in the annual fee for registration as a\ndealer or transporter or for renewal pursuant to subdivision six of this\nsection, which shall be deposited to the dedicated highway and bridge\ntrust fund established pursuant to section eighty-nine-b of the state\nfinance law and the dedicated mass transportation fund established\npursuant to section eighty-nine-c of the state finance law and\ndistributed according to the provisions of subdivision (d) of section\nthree hundred one-j of the tax law.\n * NB Effective until April 1, 2026\n * 6-a. Fees; deposited. Fees assessed under this section shall be paid\nto the commissioner for deposit to the general fund.\n * NB Effective April 1, 2026\n 6-b. Dealer, qualified dealer, and new motor vehicle dealer surety\nbond. a. As a condition to obtaining a registration certificate\npursuant to this section, every new motor vehicle dealer applicant and\nevery qualified dealer applicant shall obtain and continue in effect a\nsurety bond in an amount of fifty thousand dollars executed by a surety\ncompany authorized to transact business in the state by the department\nof financial services of the state. As a condition to obtaining a\nregistration certificate pursuant to this section, every dealer\napplicant who is applying for a registration certificate in the first\ninstance or who sold fifty motor vehicles or fewer in the previous\ncalendar year shall obtain and continue in effect a surety bond in an\namount of twenty thousand dollars executed by a surety company\nauthorized to transact business in the state by the department of\nfinancial services of the state. As a condition of obtaining a\nregistration certificate pursuant to this section, every dealer\napplicant who sold more than fifty motor vehicles in the previous\ncalendar year shall obtain and continue in effect a surety bond in an\namount of one hundred thousand dollars executed by a surety company\nauthorized to transact business in the state by the department of\nfinancial services of the state. The bonds shall be approved as to form\nby the commissioner and shall be conditioned on the new motor vehicle\ndealer's, qualified dealer's, and dealer's: payment of all valid bank\ndrafts, including checks, drawn by such dealer for the purchase of motor\nvehicles; transfer of good title to each motor vehicle such dealer\nsells; safekeeping of all customer deposits related to the sale of a\nmotor vehicle between the time of receipt of such customer deposit and\nthe transfer of good title to the vehicle to the customer; payment for\nall fines imposed upon the new motor vehicle dealer, qualified dealer,\nor dealer by the commissioner pursuant to the provisions of this\nchapter; and such dealer's repayment of any overcharges of a customer by\nsuch dealer for the vehicle registration and titling charges payable to\nthe commissioner for registering and titling the sold vehicle. Any such\ndealer which is bonded pursuant to this section prior to the effective\ndate of the chapter of the laws of two thousand sixteen which amended\nthis paragraph shall be required to comply with the amendments made by\nsuch chapter upon renewal, replacement, alteration, or extension of such\ndealer's current surety bond.\n b. Recovery against a bond may be made by a person, including the\nstate, who obtains a judgment against the new motor vehicle dealer,\nqualified dealer, or dealer for an act or omission on which the bond is\nconditioned if the act or omission occurred during the term of the bond.\nThe total liability imposed on the surety under this section for all\nbreaches of the bond condition is limited to the face amount of the\nbond. Such liability may include, but is not limited to, the amount of\nthe valid bank drafts, including checks, drawn by the new motor vehicle\ndealer, qualified dealer, or dealer for the purchase of motor vehicles\nor the amount of overcharge by such dealer for registration or title\nfees or the amount paid to such dealer or the deposit, as the case may\nbe, for the motor vehicle for which good title was not delivered. In no\nevent shall the surety on a bond be liable for total claims in excess of\nthe bond amount, regardless of the number or nature of claims made\nagainst the bond or the number of years the bond remained in force, nor\nshall any such surety bond provide coverage for transactions involving\nsales of any motor vehicles for which a bond is not required pursuant to\nthe provisions of paragraph d of this subdivision.\n c. Any surety issuing a bond pursuant to this subdivision shall be\nrequired to provide sixty days' notice to the commissioner prior to the\neffective date of cancellation or lapse of the bond, and shall provide\nadditional notice to the commissioner upon the date of the cancellation\nor lapse of such bond. Upon the cancellation or lapse of any surety bond\nrequired by this subdivision, the commissioner shall, within five days\nof such cancellation or lapse, verify that the dealer holds a surety\nbond which meets the requirements of this subdivision.\n d. For purposes of this subdivision, the term "motor vehicle" means a\nmotor vehicle commonly classified as a passenger automobile, sport\nutility vehicle, light truck, pick up truck, van, minivan, or suburban,\nwith a gross vehicle weight rating of ten thousand pounds or less.\nNotwithstanding the provisions of paragraphs a and b of this\nsubdivision, the requirement to post a surety bond as set forth in this\nsubdivision shall not apply to any dealer who is engaged exclusively in\nthe business of buying, selling or dealing in motor vehicles other than\nthose motor vehicles with a gross vehicle weight rating of ten thousand\npounds or less and which are commonly classified as a passenger\nautomobile, sport utility vehicle, light truck, pick up truck, van,\nminivan, or suburban, such as buses, school buses, garbage trucks,\nmarine trailers, tow trucks, motorcycles, recreational vehicles,\nsnowmobiles, trailers, mobile homes, or construction equipment.\nProvided, further, that such requirement also shall not apply to any\ndealer who is engaged exclusively in the business of buying, selling or\ndealing in motor vehicles solely for conversion for use as a tow truck.\n 7. Issuance of certificate. a. If the commissioner is satisfied that\nthe applicant for a new motor vehicle dealer registration certificate is\nparty to a franchise or franchises authorizing such applicant to sell or\nlease lines or makes of new motor vehicles which the applicant proposes\nto sell or lease from the locations described in the application for the\nsale or lease of such lines or makes and if the commissioner otherwise\napproves the application, upon payment of the prescribed fee, he or she\nshall issue a new motor vehicle dealer registration certificate in such\nform as he or she may prescribe. Every new motor vehicle dealer\nregistration certificate shall by its terms permit the sale or lease of\nthe particular lines or makes of new motor vehicles only from a location\nor locations authorized for such sale or lease in the franchise or\nfranchises between such new motor vehicle dealer and the manufacturers\nor distributors of such new motor vehicles. The commissioner may, in his\nor her discretion, issue such certificates of registration and number\nplates on a staggered expiration basis, in which event the fees set\nforth in subdivision six of this section for such certificate shall be\nprorated on a monthly basis. A new motor vehicle dealer registered under\nthis section shall notify the commissioner of any change of address of\nthe locations of his or her place or places of business and whether or\nnot such locations are approved as locations for the sale or lease of\nnew motor vehicles in a franchise and which lines or makes are so\napproved for sale or lease at each location pursuant to the franchise or\nfranchises within thirty days after such change is made, and the\ncommissioner shall be authorized to cancel the registration upon failure\nto give such notice. A copy of each franchise affected by any such\nchange or other proof satisfactory to the commissioner shall accompany\nthe notice to the commissioner. If any location shall cease to be\napproved by the new motor vehicle manufacturer or distributor for the\nsale or lease of the line or make of new motor vehicle, then such new\nmotor vehicle dealer shall immediately cease selling or leasing such\nline or make of new motor vehicle from such location and shall notify\nthe commissioner within thirty days of such change, after which such new\nmotor vehicle dealer registration certificate shall be modified to\nreflect such change.\n b. Registration certificate for qualified dealer. If a dealer makes\napplication, under penalty of perjury, for a registration certificate as\na qualified dealer, the commissioner shall issue a registration as a\nqualified dealer to such dealer upon payment of the prescribed fee.\n c. Registration certificate for other than new motor vehicle dealer or\nqualified dealer. If the commissioner approves the application of an\napplicant for a registration certificate other than a new motor vehicle\ndealer certificate or a qualified dealer certificate, upon payment of\nthe prescribed fee, he or she shall issue a registration certificate in\nsuch form as he or she may prescribe.\n c-1. Special provisions relating to mobility vehicles. (i) Any dealer,\nother than a new motor vehicle dealer, engaged in displaying,\nadvertising, storing and/or demonstrating mobility vehicles shall notify\nprospective purchasers regarding any warranty on the mobility\nmodifications and the effect of any such modifications or alterations on\nany warranty on the underlying motor vehicle and, upon the sale of any\nsuch mobility vehicle, provide the purchaser with any warranty\ninformation available to any such dealer relating to the underlying\nmotor vehicle.\n (ii) Notwithstanding the provisions of article twelve-A of this\nchapter, a dealer engaged in displaying, advertising, storing and/or\ndemonstrating mobility vehicles may, without obtaining a repair shop\nlicense pursuant to such article twelve-A, perform repairs on those\nparts of the mobility vehicle that are unique to the modifications made\nthereto and which are not part of the original manufactured motor\nvehicle.\n d. The commissioner may, in his or her discretion, issue such\ncertificates of registration and number plates on a staggered expiration\nbasis, in which event the fees set forth in subdivision six of this\nsection for such certificate shall be prorated on a monthly basis. A\nregistrant shall notify the commissioner of any change of address of his\nor her principal place of business within thirty days after such change\nis made, and the commissioner shall be authorized to cancel the\nregistration upon failure to give such notice.\n e. A registration issued under this section may be renewed upon\napplication therefor in such form as the commissioner may prescribe,\nupon payment of the fee as herein prescribed.\n f. Except as provided in paragraph (bb) of subdivision two of section\nfour hundred sixty-three of this title and subparagraph (iii) of this\nparagraph:\n (i) The commissioner shall not issue any certificate of registration\nauthorized by this section to any franchisor, manufacturer, distributor,\ndistributor branch or factory branch, as such terms are defined in\nsection four hundred sixty-two of this title, or to any subsidiary,\naffiliate or controlled entity thereof, except that the commissioner may\nrenew such certificate previously issued or otherwise approved to\noperate to a franchisor prior to July first, two thousand six. Nothing\nin this section shall preclude the establishment of such facilities\nnecessary to continue the ongoing operation of any holder of a\ncertificate of registration authorized by this section or otherwise\napproved to operate to a franchisor provided such original certificate\nor approval was granted prior to July first, two thousand six.\n (ii) On or after the effective date of this subparagraph, the\ncommissioner shall not issue any certificate of registration, or renew\nany certificate, unless the original certificate was issued before July\nfirst, two thousand six, to any motor vehicle dealer in which a\nfranchisor, manufacturer, distributor, distributor branch or factory\nbranch, as such terms are defined in section four hundred sixty-two of\nthis title, or any subsidiary, affiliate or controlled entity thereof,\nhas acquired, or possesses, a controlling interest in the franchise\nentity except:\n (1) when operating such franchise for a temporary period, not to\nexceed one year, during the transition from one owner of the motor\nvehicle dealership to another, provided, however, that such temporary\nperiod may be extended once for an additional period not to exceed one\nyear for good cause. Provided that for franchisors of house coaches, the\nperiod of temporary ownership of a franchised house coach dealership may\nbe extended in one year increments for good cause shown, except that the\naggregate of such extensions shall not exceed five years; or\n (2) when operating such franchise temporarily under a plan with an\nindependent individual who is obligated to make a significant investment\nin the dealership that is subject to loss and has an ownership interest\nor expects to acquire full ownership in a reasonable period under\nreasonable terms and conditions, provided that a reasonable period shall\nbe presumed to not exceed eight years.\n (iii) Notwithstanding any other provision of this paragraph or any\nprovision of paragraph (bb) of subdivision two of section four hundred\nsixty-three of this title, the commissioner may renew any certificate of\nregistration that was issued to a franchisor, manufacturer, distributor,\ndistributor branch or factory branch, as such terms are defined in\nsection four hundred sixty-two of this title, or to any subsidiary,\naffiliate or controlled entity thereof, prior to March twenty-sixth, two\nthousand fourteen; provided, however, that such franchisor,\nmanufacturer, distributor, distributor branch or factory branch, or any\nsubsidiary, affiliate or controlled entity thereof, is a manufacturer\nthat manufactures or assembles exclusively zero emissions vehicles, or\nis a subsidiary, affiliate, or controlled entity of such a manufacturer;\nand provided further that a controlling interest in such original\nfranchisor, manufacturer, distributor, distributor branch or factory\nbranch or any subsidiary, affiliate or controlled entity was not\ntransferred, sold or conveyed to another person or entity, other than to\na subsidiary, affiliate or controlled entity of such franchisor,\nmanufacturer, distributor, distributor branch or factory branch. For\npurposes of this paragraph, zero emission vehicles shall have the same\nmeaning as under part two hundred eighteen of title six of the New York\ncode of rules and regulations.\n (iv) Notwithstanding any other provision of this paragraph or any\nprovision of paragraph (bb) of subdivision two of section four hundred\nsixty-three of this title, the commissioner may issue or renew any\ncertificate of registration to a franchisor, manufacturer, distributor,\ndistributor branch or factory branch, as such terms are defined in\nsection four hundred sixty-two of this title, or to any subsidiary,\naffiliate or controlled entity thereof, that manufactures or assembles\nbuses exclusively; provided, however, that such certificate shall be\nissued exclusively for the sale of buses to public transportation\nproviders; and provided further, however, that such franchisor,\nmanufacturer, distributor, distributor branch or factory branch, or any\nsubsidiary, affiliate or controlled entity thereof: (1) is a\nmanufacturer that manufactures or assembles exclusively buses, or is a\nsubsidiary, affiliate, or controlled entity of such a manufacturer; and\n(2) sells such buses under such certificate of registration solely to\npublic transportation providers. For purposes of this subparagraph, the\nterm "public transportation provider" shall mean public transportation\nsystems eligible to receive operating assistance under the provisions of\nsection eighteen-b of the transportation law, and the term "public\ntransportation system" shall mean: (A) any public benefit corporation\nconstituting a transportation authority, or a subsidiary thereof, or any\npublic transportation corporation constituted as an instrumentality of\nthe state, or a subsidiary thereof, directly or through a contract with\nanother entity, that provides mass transportation services to the\ngeneral public; or (B) any Indian tribe or any county, city, town or\nvillage that provides mass transportation services to the general public\ndirectly or through a contract with another entity pursuant to section\none hundred nineteen-r of the general municipal law.\n 8. Use. Transporter number plates issued under this section shall be\nused only for the limited operation of vehicles owned or controlled by\nthe registrant for the purpose of weighing, testing, dismantling,\ntransporting or delivering the same, or for the purpose of moving such\nvehicles in connection with making installations thereon or improvements\nthereto, or the repossession or foreclosure thereof, or for the\noperation, for demonstration purposes, of any vehicle owned by a\nmanufacturer, or for transporting or delivering the vehicle upon which\nthe plates are displayed and additional vehicles carried in whole or in\npart upon such vehicle.\n Except as provided in section four hundred sixteen of this article,\ndealer number plates issued under this section may be used for all\npurposes for which transporter plates may be used and, in addition, may\nbe used for the operation of any vehicle owned or controlled by the\nregistrant and held for sale or demonstration, except a vehicle rented\nto another, a vehicle used to transport passengers for hire, a vehicle\ncommonly called a "tow truck" or "wrecker" and used by the dealer for\nsuch purposes, a vehicle equipped for the purpose of towing or pushing\ndisabled or nonoperated vehicles or a commercial or suburban type\nvehicle used by the dealer for commercial purposes other than directly\naffecting the sale or demonstration of that particular vehicle. In\naddition, dealer, manufacturer, or transporter number plates may be used\nfor any non-self-propelled device used for the transport of modular\nhomes. Except as provided in section four hundred sixteen of this\narticle, manufacturer number plates issued under this section may be\nused for all purposes for which transporter plates may be used and, in\naddition, may be used for the operation of any vehicle owned or\ncontrolled by the registrant and held for demonstration, except a\nvehicle rented to another, a vehicle used to transport passengers for\nhire, a vehicle commonly called a "tow truck" or "wrecker" and used by\nthe manufacturer for such purposes, a vehicle equipped for the purpose\nof towing or pushing disabled or nonoperated vehicles or a commercial or\nsuburban type vehicle used by the manufacturer for commercial purposes\nother than directly affecting the demonstration of that particular\nvehicle.\n Dealer, manufacturer, or transporter number plates issued upon renewal\nof a dealer, manufacturer, or transporter registration may be used\nduring the thirty day period immediately preceding the expiration date\nof such registration, including such expiration date.\n 9. Suspension, revocation and refusal to issue or to renew a\nregistration. The commissioner or any person deputized by him may deny\nthe application of any person for registration under this section and\nsuspend or revoke a registration under this section or refuse to issue a\nrenewal thereof if he or such deputy determines that such applicant or\nregistrant or any officer, director, stockholder, or partner, or any\nother person directly or indirectly interested in the business:\n a. Has made a material false statement in his application; or\n b. Has used or permitted the use of number plates contrary to law; or\n c. Has been guilty of fraud or fraudulent practices, or has practiced\ndishonest or misleading advertising; or\n d. Has failed to comply with any of the rules and regulations of the\ncommissioner for the enforcement of this article or with any provision\nof this chapter or article thirty-five-B of the general business law\napplicable thereto; or\n e. Has wilfully violated any provisions of the motor vehicle retail\ninstalment sales act, the motor vehicle retail leasing act or section\none hundred ninety-eight-c of the general business law; or\n f. Does not have a place of business within the meaning of this\nsection; or\n g. Has been convicted of any crime involving dishonesty or deceit; or\n h. Was the former holder, or was an officer, director, stockholder, or\npartner, in a corporation or partnership which was the former holder of\na dealer's registration, which was suspended or revoked by the\ncommissioner.\n 9-a. Hearings; temporary suspension. (a) No registration shall be\nsuspended or revoked, or renewal refused, except upon notice to the\nregistrant and after an opportunity to be heard. Provided however, upon\na written notice of temporary suspension delivered by certified mail to\nthe registrant, a registration may be temporarily suspended pending a\nhearing. Any such notice of temporary suspension shall provide that the\nsuspension is effective seventy-two hours after mailing of such notice\nand shall provide that a hearing be scheduled within ten days after the\neffective date of the temporary suspension.\n (b) The applicant may be heard in person or by counsel. The hearing\nshall be at such time and place as the commissioner shall prescribe. The\ncommissioner or the commissioner's designee may inspect the pertinent\nbooks, records, letters and contracts of a registrant relating to any\nwritten complaint or charge against such registrant. The commissioner or\nthe commissioner's designee shall have the power to subpoena and bring\nbefore a hearing officer any person in this state, and administer an\noath to and take testimony of any person or cause the person's\ndeposition to be taken. A subpoena issued under this section shall be\nregulated by the civil practice law and rules.\n 10. Suspension and revocation of number plates. The commissioner may\nsuspend or revoke number plates issued pursuant to subdivision four of\nthis section, if he determines that the registrant to whom these plates\nhave been issued has used or permitted the use of such number plates\ncontrary to law or to the regulations of the commissioner with respect\nto the use thereof. The registrant to whom such number plates have been\nissued shall have an opportunity to be heard, and the provisions of\nsubdivision nine of this section shall apply to hearings held under this\nsubdivision, and to review of determinations made by the commissioner\nhereunder.\n 11. Following the suspension or revocation of the certificate of\nregistration of a dealer, manufacturer, or transporter or number plates,\npursuant to this section, the failure of the holder or any other person\npossessing the certificate of registration, number plates or\ncertificates of sale issued to a dealer pursuant to the regulations of\nthe commissioner, to deliver the same to the suspending or revoking\nofficer, peace officer acting pursuant to his or her special duties,\npolice officer directed by the commissioner to secure possession\nthereof, or agent of the commissioner, displaying authorization to act\nin such capacity along with a certified copy of the order revoking or\nsuspending such registration or number plates, shall be a misdemeanor.\n If any person shall fail to deliver a certificate of registration,\nnumber plates or certificates of sale as provided herein, the\ncommissioner shall forthwith direct any peace officer acting pursuant to\nhis or her special duties or police officer to secure possession thereof\nand to return the same to the commissioner.\n 12. The commissioner, or any person deputized by him, in addition to\nor in lieu of revoking or suspending the certificate of registration of\na registrant in accordance with the provisions of this article, may in\nany one proceeding by order require the registrant to pay to the people\nof this state a penalty for a first violation a sum not exceeding one\nthousand dollars for each violation found to have been committed; and\nfor a second or subsequent violation not arising out of the same\nincident both of which were committed within a period of thirty months,\na sum of not more than one thousand five hundred dollars for each\nviolation found to have been committed; provided, however, the penalty\nfor each and any violation of paragraph c of subdivision nine of this\nsection found to have been committed shall be no less than three hundred\nand fifty dollars and no more than one thousand five hundred dollars,\nexcept that if a finding of financial loss has been made pursuant to\nsubdivision fourteen of this section, the amount of such penalty may be\nincreased by the amount of financial loss so found, and upon the failure\nof such registrant to pay such penalty within twenty days after the\nmailing of such order, postage prepaid, registered or certified, and\naddressed to the last known place of business of such registrant, unless\nsuch order is stayed by an order of a court of competent jurisdiction,\nthe commissioner may revoke the certificate of registration of such\nregistrant or may suspend the same for such period as he may determine.\nCivil penalties assessed under this subdivision shall be paid to the\ncommissioner for deposit into the state treasury, and unpaid civil\npenalties may be recovered by the commissioner in a civil action in the\nname of the commissioner.\n 13. In addition, as an alternative to such civil action and provided\nthat no proceeding for judicial review shall then be pending and the\ntime for initiation of such proceeding shall have expired, the\ncommissioner may file with the county clerk of the county in which the\nregistrant is located a final order of the commissioner containing the\namount of the penalty assessed. The filing of such final order shall\nhave the full force and effect of a judgment duly docketed in the office\nof such clerk and may be enforced in the same manner and with the same\neffect as that provided by law in respect to executions issued against\nproperty upon judgments of a court of record.\n 14. Restitution; assessment. a. Upon a determination that a registrant\nhas done or failed to do any act for which suspension of the\nregistrant's registration or a civil penalty against the registrant\ncould be imposed, the person making such determination may make a\nfinding of financial loss to any complainant or complainants resulting\nfrom the actions of the registrant. The person making such finding may\nprovide that if the registrant makes restitution to the complainant or\ncomplainants for the amount or amounts so found, that payment of such\nrestitution may be substituted in lieu of any suspension or civil\npenalty, or a specified portion thereof imposed upon the registrant.\nHowever, a finding of financial loss shall only be made if the\ncomplainant (i) agrees to accept the amount so found, if offered by the\nregistrant, and (ii) is not a party to any litigation which is pending\nor which has gone to judgment in relation to the same matter in any\ncivil court.\n b. The amount of financial loss which may be found and proposed as\nrestitution shall be limited to an amount necessary to compensate the\ncomplainant or complainants for actual losses caused by the registrant's\nimproper activity. Neither punitive nor incidental damages may be\nincluded in the finding of financial loss.\n c. If payment of restitution to the complainant is authorized in lieu\nof all or a portion of a suspension or civil penalty, in order for the\nregistrant to exercise the option to make such payment, such payment\nmust be made by means of a certified check or money order payable to the\ncomplainant or complainants delivered to an office of the department as\ndirected by the commissioner or his agent within thirty days of the date\nof notice of suspension and/or civil penalty. Upon receipt of such\ncertified check or money order, the department shall forward the same to\nthe complainant or complainants. In the event that the registrant should\nfail to make payment for restitution within such thirty days, but, at a\nlater time, pays such civil penalty, the department shall deduct from\nsuch civil penalty the amount assessed for restitution, and shall mail a\ncheck for such amount to the complainant or complainants.\n d. If payment of restitution may be substituted in lieu of a civil\npenalty or portion of a civil penalty, and the registrant does not\nexercise the option to make such payment, the civil penalty becomes due\nas provided in subdivision twelve of this section and the provisions of\nthat subdivision and subdivision thirteen of this section relating to\nsuspension of registration and recovery of civil penalties shall apply.\n e. Any payment made in compliance with such a finding of financial\nloss shall not preclude any civil action which may be brought by either\nthe complainant or registrant, and any such finding may be considered\nbut shall not be binding upon any court before which any such action is\nbrought.\n 15. Miscellaneous provisions. The commissioner may, in his or her\ndiscretion, limit the number of sets of number plates which shall be\nissued to any registrant. The provisions of subdivision three of section\nfour hundred one of this title with respect to the fee for lost,\nmutilated or destroyed certificates and number plates shall apply to\ncertificates and number plates issued under this section.\n In the event of the loss or theft of any dealer, manufacturer, or\ntransporter number plate or set of such number plates whether with or\nwithout a date tag or tags, or any date tag or set of date tags, the\ndealer or manufacturer must immediately notify the police of such fact\nand in the event of loss, theft, mutilation or destruction of any such\nitems the dealer or manufacturer must immediately file a statement and\nproof of the facts as the commissioner shall require. The provisions of\nsection four hundred two and four hundred eleven of this title with\nrespect to the care and display of number plates shall apply to number\nplates issued under this section. Registration under this section shall\nbe upon the condition that the registrant shall conform to such\nreasonable requirements as shall be prescribed by the commissioner.\n The commissioner may, in his or her discretion, require a registrant\nto maintain a record in a prescribed form of all vehicles received or\ndisposed of by him or her, which records shall be open at all times for\ninspection by the commissioner, his or her representatives and any peace\nofficer, acting pursuant to his or her special duties, or police\nofficer.\n If registration under this section shall be issued in the names of two\nor more persons as partners and a change occurs in the membership of\nsuch partnership, the registration shall not expire so long as any one\nof the persons named in such registration is a member of the partnership\nor carries on the business of the partnership as surviving member of the\npartnership. However, when any such change occurs and the registration\ndoes not expire, the partners or surviving member after such change\nshall forthwith file with the commissioner a statement regarding such\npartnership in such form and giving such information as the commissioner\nshall require, and the commissioner shall issue a new certificate of\nregistration.\n 16. Unregistered operation; operation while suspended or revoked;\nprocedures and penalties. a. The commissioner or any person deputized by\nhim shall hear and determine any allegation that a person has operated\nas a dealer without being registered as required by subdivision three of\nthis section or while registration is suspended or revoked. Upon a\ndetermination that a person has so operated, the commissioner or person\ndeputized by him shall assess civil penalties as provided in paragraphs\nb and c of this subdivision.\n b. Except as provided in paragraph c of this subdivision, any person\nwho operates as a dealer without being registered shall be required to\npay to the people of this state a civil penalty in the sum of one\nthousand dollars. However, any such person against whom such penalty has\nbeen assessed may avoid all but five hundred dollars of such penalty by\nobtaining a registration as required by this article, provided that\napplication for such registration is made not more than ten days after\nthe imposition of such penalty.\n c. (i) Any person who operates as a dealer while his registration is\nrevoked or suspended, shall pay to the people of this state a civil\npenalty in the sum of one thousand dollars. Such civil penalty may not\nbe avoided.\n (ii) Any person who operates as a dealer without being registered as\nrequired by subdivision three of this section who has previously had a\ncivil penalty assessed for unregistered operation shall pay to the\npeople of this state a civil penalty in the sum of one thousand dollars.\nAny person who operates as a dealer without being registered as required\nby subdivision three of this section who has had two previous civil\npenalties assessed for unregistered operation not arising from the same\nincident all of which were committed within a period of thirty months\nshall pay to the people of this state a civil penalty in the sum of four\nthousand ten dollars. Such civil penalties may not be avoided.\n (iii) No person who operates as a dealer without being registered as\nrequired by subdivision three of this section or while his or her\nregistration is revoked or suspended shall park a motor vehicle, which\nhe or she owns or controls and holds for sale or demonstration, upon a\npublic highway of this state without first being registered in\naccordance with the provisions of section four hundred one of this\nchapter. Any such person shall, in addition to any penalties imposed\npursuant to paragraph b of this subdivision or subparagraph (ii) of this\nparagraph, be required to pay to the people of this state an additional\ncivil penalty of three hundred dollars for each motor vehicle owned or\ncontrolled and held for sale or demonstration by such person which is\nparked upon the public highways of this state without first being\nregistered in accordance with the provisions of section four hundred one\nof this chapter.\n d. The commissioner, or any person deputized by him, in addition to\nimposing a civil penalty for unregistered operation as a dealer, may, in\nany one proceeding, make a determination that the unregistered dealer\nhas caused a financial loss to a complainant or complainants and may\nincrease the civil penalty by the amount of financial loss. The person\nmaking such finding may provide that if the unregistered dealer makes\nrestitution to the complainant or complainants for the amount or amounts\nso found, that payment of such restitution may be substituted for the\nincrease in the civil penalty caused by the finding of financial loss.\nHowever, a finding of financial loss shall only be made if the\ncomplainant (i) agrees to accept the amount so found, if offered by the\nunregistered dealer, and (ii) is not a party to any litigation which is\npending or in which judgment has been entered in any civil action in any\ncourt of competent jurisdiction.\n e. Civil penalties assessed under this section shall be paid to the\ncommissioner for deposit into the state treasury, and unpaid civil\npenalties may be recovered by the commissioner in a civil action in the\nname of the commissioner. In addition, as an alternative to such civil\naction and provided that no proceeding for judicial review shall then be\npending and the time for initiation of such proceeding shall have\nexpired, the commissioner may file with the county clerk of the county\nin which the registrant is located a final order of the commissioner\ncontaining the amount of the penalty assessed. The filing of such final\norder shall have the full force and effect of a judgment duly docketed\nin the office of such clerk and may be enforced in the same manner and\nwith the same effect as that provided by law in respect to executions\nissued against property upon judgments of a court of record.\n f. No allegation of unregistered operation as a dealer shall be heard\nor determined unless notice of such allegation has been mailed to such\nperson within two years after the date of the alleged unregistered\noperation.\n 17. Improper display of signs. a. The holder of a dealer registration\nshall remove or cause to be removed any sign which contains the\nregistration number of the dealer which is visible to the public and\nwhich is required to be displayed by this article or regulations\npromulgated thereunder if the registration is revoked or suspended or\nthe dealer is out of business. If the registration is only suspended,\nthe holder may cover up the sign instead of removing it.\n b. No person shall permit the display of any sign required to be\ndisplayed by this article or regulations promulgated thereunder\nindicating to the public that an official dealer is operating unless a\ndealer registration has been issued to that person and is currently\nvalid.\n 18. Rights of dealers. The rights of all new motor vehicle dealers\nunder this article may be exercised from any location or locations which\nare from time to time approved by their franchisors and the commissioner\nas prescribed in this article. The rights of all qualified dealers under\nthis article may be exercised from any location or locations from which\nthey operate from time to time; provided, however, that no qualified\ndealer shall operate from more than two locations within the four\ncounties of Kings, Queens, Nassau, and Suffolk; and provided further\nthat no qualified dealer shall operate from more than one location in\nany one county. The total number of locations from which a qualified\ndealer may operate shall not exceed that number of locations operated by\nsuch qualified dealer on December thirty-first, nineteen hundred\nninety-eight. It shall be unlawful for any person to interfere with the\nrights of, or discriminate against, any new motor vehicle dealer or any\nqualified dealer under this article. The commissioner shall penalize\nthose persons who violate the provisions of this section as enacted by\nchapter four hundred fifty-one of the laws of nineteen hundred\nninety-nine and the chapter of the laws of two thousand which amended\nthis subdivision as provided by this section. Nothing contained in this\narticle shall be construed to prohibit a new motor vehicle dealer, a\nqualified dealer, or a dealer, respectively, from utilizing the internet\nto engage in such activities as each are respectively permitted under\nthis article and under other applicable laws, or affect where a new\nmotor vehicle dealer or a qualified dealer may deliver a new motor\nvehicle.\n 19. Disclosures by qualified dealers; penalties. a. Every qualified\ndealer who advertises in newspapers, magazines, or by direct mail the\navailability of new motor vehicles for sale shall clearly disclose that\nsuch qualified dealer is not a franchised new motor vehicle dealer.\n b. Every qualified dealer shall prominently and conspicuously post a\nsign, in such a manner that it is likely to be noticeable to anyone\nentering the premises, which sign shall clearly state: "(name of\nqualified dealer) is not a franchised dealership and does not represent\na manufacturer. We are not authorized to perform recall or original\nfactory warranty work."\n c. Every contract for the sale of a new motor vehicle entered into by\na qualified dealer and the purchaser shall contain the following\nstatement: "(name of qualified dealer) is not a franchised dealership\nand does not represent a manufacturer. We are not authorized to perform\nrecall or original factory warranty work."\n d. A qualified dealer who fails to comply with the requirements of\nthis subdivision, shall be subject to the penalties provided by this\nsection. Further, a person who has purchased a new motor vehicle from a\nqualified dealer pursuant to a contract which does not contain the\ndisclosure required under paragraph c of this subdivision, shall be\nentitled to rescind the sale and obtain full restitution of any amounts\npaid, plus reasonable court costs and attorneys fees, within four months\nof the date of purchase.\n 20. Restrictions on transferability and operation of certain qualified\ndealerships. a. A qualified dealer may sell, devise, assign, convey or\notherwise transfer any or all of its assets, including without\nlimitation all rights to conduct the activities of a qualified dealer\nhereunder and further, the owner of an equity interest in a qualified\ndealership may sell, devise, assign, convey or otherwise transfer any or\nall of its equity interest in such qualified dealership, subject to the\nconditions set forth in this subdivision. To the extent that such\nqualified dealer conducts such activities at more than one location as\npermitted under this article, then such qualified dealer may transfer\nsuch rights on a location by location basis; provided, however, that\nsuch a transferee shall acquire no greater rights to relocate than those\nof his or her transferor, and provided further below, that such\ntransferee shall remain subject to the provisions of this subdivision\nexactly as they applied to his or her transferor.\n b. A transferee who acquires the assets and/or an equity interest in a\nqualified dealer as defined in subparagraph (ii), (iii) or (iv) of\nparagraph g of subdivision one of this section and is the parent,\nspouse, child or sibling of an individual who was an equity holder of\nsuch qualified dealer may conduct activities as specified pursuant to\nthis section without restriction.\n c. A transferee who acquires substantially all of the assets and/or a\ncontrolling equity interest in a qualified dealer as defined in\nsubparagraph (ii), (iii) or (iv) of paragraph g of subdivision one of\nthis section who is not the parent, spouse, child or sibling of an\nindividual who was an equity holder of such qualified dealer may conduct\nactivities as specified pursuant to this section; provided, however,\nthat such transferee, in any calendar year, shall not be permitted to\nsell more than one hundred ten percent of the number of new motor\nvehicles sold by the transferor or qualified dealer during the twelve\nmonth period ending on the last day of the calendar month preceding the\ndate of transfer of such rights.\n d. A transferee who acquires ten per cent or more of an equity\ninterest after August 31, 1999 in a qualified dealer as defined in\nsubparagraph (ii), (iii), or (iv) of paragragh g of subdivision one of\nthis section and is a publicly traded corporation may conduct activities\nas specified pursuant to this section; provided, however, that such\ntransferee, in any calendar year, shall not be permitted to sell more\nthan one hundred ten percent of the number of new motor vehicles sold by\nthe transferor or qualified dealer during the twelve month period ending\non the last day of the calendar month preceding the date of transfer of\nsuch rights.\n e. Each transferee who acquires substantially all of the assets and/or\na controlling equity interest in a qualified dealer from a transferee as\ndefined in paragraph b, c or d of this subdivision shall not be\npermitted to sell a number of new motor vehicles in any calendar year in\nexcess of the number of new motor vehicles sold by such transferor\nqualified dealer during the twelve month period ending on the last day\nof the calendar month preceding the date of transfer of such rights.\n f. The rights of a qualified dealer under subparagraph (ii), (iii) or\n(iv) of paragraph g of subdivision one of this section are also deemed\ntransferred for purposes hereof in the event that, after August\nthirty-first, nineteen hundred ninety-nine, (i) the controlling equity\ninterest of such qualified dealer is transferred (in any one or series\nof transactions) to any person or persons, other than the parent,\nspouse, child or sibling of an individual who is an equity holder of\nsuch qualified dealer, or (ii) there occurs any merger, combination or\nconsolidation of, with or into the business entity which constitutes\nsuch qualified dealer.\n g. Nothing contained herein shall (i) prohibit a qualified dealer or\nthe parent, spouse, child or sibling who is the equity holder of such\nqualified dealer from forming a corporation or limited liability company\nto operate and wholly own the qualified dealer; (ii) restrict the\nability of a qualified dealer to transfer a controlling equity interest\nto a corporation or a limited liability company operated and wholly\nowned by an individual who is an equity holder of such qualified dealer;\nor (iii) restrict the ability of a qualified dealer to transfer an\nequity interest in the stock and/or assets of a qualified dealer to a\nfull-time employee of such qualified dealer.\n 21. New motor vehicle etching kits. Every new motor vehicle dealer and\nevery qualified dealer shall be required to stock etching kits that are\ncapable of etching a traceable serial number onto the catalytic\nconverter of a new motor vehicle that can be clearly seen and quickly\nlinked back to the vehicle. Such etching kits shall be offered by every\nnew motor vehicle dealer and qualified dealer to any person purchasing a\nnew motor vehicle, at no more than the cost of such etching kit to such\ndealer.\n 22. Compliance. All dealers and automobile broker businesses\nregistered under subdivisions three and three-a of this section shall\ncertify and attest to compliance with sections three hundred\nninety-nine-cc, as added by chapter 655 of the laws of 2005, three\nhundred ninety-nine-dd, as added by chapter 487 of the laws of 2006,\nthree hundred ninety-nine-ddd, three hundred ninety-nine-h, three\nhundred ninety-nine-oo, three hundred ninety-nine-p, three hundred\nninety-nine-pp, eight hundred ninety-nine-bb of the general business\nlaw, and part three hundred fourteen of title sixteen of the code of\nfederal regulations as applicable.\n 23. Automobile broker record requirements. (a) For each completed\ntransaction and within three business days of consummation thereof,\nautomobile brokers shall maintain a permanent paper file record that\nclearly evidences and records the make, model, year, color and vehicle\nidentification number of all previously unregistered motor vehicles for\nwhich such broker has provided a service of purchasing, arranging,\nassisting, facilitating or effecting the purchase or lease of such motor\nvehicle. Such records shall be maintained for a six-year period after\nconsummation of the transaction. Such records shall also include the\nname and address of the purchaser or lessee of such motor vehicle, the\ndate of sale or commencement of lease with respect to such motor vehicle\nand the name and address of the dealer from which the motor vehicle was\npurchased or leased.\n (b) The records maintained by the automobile broker businesses shall\ninclude a copy of the dealer rate sheets received by the automobile\nbroker from the dealers that were relied upon by the automobile broker\nin connection with such transaction.\n (c) Such records shall be open for inspection by the commissioner, or\nhis or her agent, during reasonable business hours.\n (d) As an alternative to paper file records, an automobile broker may\nuse a computer and appropriate software to maintain the records required\nto be kept by this section, provided all information required by\nparagraphs (a) and (b) of this subdivision are duly recorded and\nmaintained in accordance with this subdivision.\n 24. Maintenance records. For each sale or lease of a motor vehicle\nthat involves an automobile broker business, the dealer must obtain\nevidence of the automobile broker business' registration and the\nbroker's registration number and maintain such records in the deal\njacket for each transaction which also shall contain the purchase order,\ncopies of the title and registration documents, the bill of sale and the\nretail installment sale contract required under article ten of the\npersonal property law or the retail lease agreement required under\narticle nine-A of the personal property law.\n 25. Broker compensation. No dealer may offer or pay an automobile\nbroker business any fee, or commission, other than compensation\ndisclosed pursuant to section seven hundred thirty-eight or seven\nhundred forty-one-b of the general business law or section three hundred\ntwo or three hundred thirty-seven of the personal property law;\nprovided, however, that the automobile broker business may not accept\nany such fee or commission from the dealer if the broker has or will\naccept payment from the buyer or lessee of the automobile.\n