2023 New York Laws › VAT - Vehicle and Traffic › Title 4 - Registration of Vehicles › Article 16 - Registration of Dealers and Transporters › 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, 2026
* 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, 2026
* 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, 2026
* 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, 2026
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.