STATE OF NEW YORK
________________________________________________________________________
7972
IN SENATE
January 4, 2024
___________
Introduced by Sen. THOMAS -- read twice and ordered printed, and when
printed to be committed to the Committee on Transportation
AN ACT to amend the vehicle and traffic law and the state finance law,
in relation to used motor vehicle dealer education
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. The vehicle and traffic law is amended by adding a new
2 section 419-b to read as follows:
3 § 419-b. Used motor vehicle dealer education program. 1. For purposes
4 of this section, the following terms shall be defined as follows:
5 (a) "Designated individual" means any of the following individuals, if
6 they are selected by an eligible used motor vehicle dealer to complete a
7 training program described in this section:
8 (i) an individual who is a licensed eligible used motor vehicle dealer
9 or a partner or officer of a licensed eligible used motor vehicle deal-
10 er; or
11 (ii) an individual who is an employee of a licensed eligible used
12 motor vehicle dealer, such as a general manager, a sales manager, or an
13 employee who is responsible for preparing title documents for the deal-
14 er.
15 (b) "Eligible used motor vehicle dealer" means a person who is
16 licensed as a used motor vehicle dealer, or is applying for licensure as
17 a used motor vehicle dealer, and is not an owner, partner, corporate
18 officer, or director of a licensed new motor vehicle dealer or seeking
19 licensure as an owner, partner, corporate officer, or director of a new
20 motor vehicle dealer.
21 (c) "Fund" means the used motor vehicle dealer training program fund
22 created under section ninety-nine-rr of the state finance law.
23 (d) "Qualified trade organization" means a bona fide nonprofit member-
24 ship organization that is based in this state, that has been in exist-
25 ence for at least five years, and whose members are primarily eligible
26 used motor vehicle dealers.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11872-02-3
S. 7972 2
1 2. The commissioner shall establish each of the following used motor
2 vehicle dealer training programs for eligible used motor vehicle deal-
3 ers:
4 (a) A pre-licensing dealer training program that meets all of the
5 following requirements:
6 (i) is available to any individual who is an eligible used motor vehi-
7 cle dealer applying for an original dealer license or is a partner or
8 officer of an eligible used motor vehicle dealer applying for an
9 original dealer license; and
10 (ii) includes training related to this section and any other subject
11 matter approved by the commissioner, such as consumer protection and
12 sales and use tax collection. The commissioner may consult with other
13 departments to evaluate and develop course content which he or she
14 considers appropriate.
15 (b) A training program for designated individuals that meets all of
16 the following:
17 (i) is offered at least two times each calendar year;
18 (ii) is available to any designated individual; and
19 (iii) includes at least eight hours of pre-licensing training in
20 transferring motor vehicle titles, documentation of title transfers,
21 record keeping, and any other subject matter considered appropriate by
22 the commissioner, such as consumer protection and sales and use tax
23 collection. The commissioner may consult with other departments to eval-
24 uate and develop course content it considers appropriate.
25 (c) A continuing education training program that meets all of the
26 following:
27 (i) is conducted at least two times in each calendar quarter;
28 (ii) includes at least four hours of training; and
29 (iii) includes subject matter considered appropriate by the commis-
30 sioner, such as transferring motor vehicle titles, documentation of
31 title transfers, record keeping, consumer protection, and sales and use
32 tax collection. The commissioner may consult with other departments it
33 considers appropriate to evaluate and develop course content.
34 3. In the six month period preceding the date of the application for
35 an original eligible used motor vehicle dealer license, each individual
36 who is the applicant, each partner of the applicant, or each office of
37 the applicant, as applicable, for the original eligible used motor vehi-
38 cle dealer license shall complete the pre-licensing dealer training
39 program described in paragraph (a) of subdivision two of this section.
40 This subdivision does not apply to any of the following:
41 (a) an applicant, or application, for the renewal of an eligible used
42 motor vehicle dealer license;
43 (b) the holder of an original eligible used motor vehicle dealer
44 license that was granted before, and is valid, on the effective date of
45 this section; or
46 (c) the owner, partner, corporate officer, or director of a new vehi-
47 cle dealer license.
48 4. An eligible used motor vehicle dealer shall select a designated
49 individual for each of its retail sales locations. An eligible used
50 motor vehicle dealer shall not select the same individual as the desig-
51 nated individual for more than three retail sales locations.
52 5. The holder of an original or renewed eligible used motor vehicle
53 dealer license that was granted before, and is valid on the effective
54 date of this section shall comply with the provisions of subdivision
55 three of this section prior to the date of the next required renewal.
S. 7972 3
1 6. In addition to the training program described in paragraph (b) of
2 subdivision two of this section, an eligible used motor vehicle dealer
3 shall ensure that a designated individual completes the continuing
4 education training program described in paragraph (c) of subdivision two
5 of this section once in each twenty-four month period after the date of
6 issuance of its original license.
7 7. The training requirements described in subdivisions two, three and
8 five of this section may be satisfied by attending a training program
9 that is conducted by the department of a qualified trade organization
10 approved by the commissioner under subdivision nine of this section.
11 8. A qualified trade organization may apply to the commissioner for
12 approval to conduct the training programs described in subdivision two
13 of this section. A qualified trade organization shall not conduct a
14 training program unless it obtains the approval from the commissioner
15 under subdivision nine of this section. The commissioner shall develop
16 and make available an application form within thirty days of the effec-
17 tive date of this section.
18 9. (a) The commissioner shall establish an application procedure for a
19 qualified trade organization to obtain approval to conduct the training
20 programs described in subdivision two of this section that includes all
21 of the following requirements:
22 (i) any documentation required for establishing that the applicant is
23 a qualified trade organization;
24 (ii) a training program plan or curriculum for each training program
25 the qualified trade organization intends to conduct that is consistent
26 with the training programs described in subdivision two of this section;
27 and
28 (iii) any other information or requirements the commissioner considers
29 necessary for purposes of approving an application.
30 (b) Not later than thirty days after receiving an application under
31 this subdivision from a qualified trade organization to conduct training
32 programs under this section, the commissioner shall approve or deny the
33 application. The commissioner shall provide the approval or denial in
34 writing and, if denied, shall state the reasons for the denial. Regard-
35 less of the reason for denial, the applicant may resubmit the applica-
36 tion correcting the deficiencies identified in the denial letter. The
37 commissioner shall have ten business days to review a resubmitted appli-
38 cation and either approve or deny the application. If a resubmitted
39 application is denied, the denial must be in writing to the applicant
40 and the applicant must have an opportunity to correct any deficiencies
41 identified in the denial letter.
42 (c) The training programs established by the department or any train-
43 ing program approved under this subdivision may be conducted in person,
44 online or by other electronic means.
45 10. The department shall periodically monitor all training programs
46 approved under subdivision nine of this section for compliance with the
47 requirements of the training programs described in subdivision two of
48 this section. If a qualified trade organization that has received the
49 approval to conduct a training program or programs fails to comply with
50 the requirements of the training programs, the commissioner may, after
51 notice and hearing, suspend or revoke the approval.
52 11. The department shall not renew the license of an eligible used
53 motor vehicle dealer unless the application for renewal includes a
54 certification from the dealer that it is in compliance with the training
55 requirements applicable under this section.
S. 7972 4
1 12. The department may charge a qualified trade organization an annual
2 fee for applying for approval to conduct training programs under this
3 section. Such annual fee shall be:
4 (a) an initial application fee of up to five hundred dollars to be
5 determined by the commissioner; and
6 (b) an application renewal fee in an amount not to exceed fifty
7 percent of the initial application fee.
8 13. A qualified trade organization that received approval to conduct a
9 training program shall do all of the following:
10 (a) notify the department of the date, time, and location of a train-
11 ing program at least three days prior to conducting the training
12 program. All training programs must be made available to the department;
13 (b) report to the department a list of all participants that completed
14 the training program in an electronic format; and
15 (c) remit to the department a payment of five dollars per training
16 program participant.
17 14. The fees collected by the department under subdivision twelve of
18 this section shall be deposited in the used motor vehicle dealer train-
19 ing program fund created under section ninety-nine-rr of the state
20 finance law.
21 15. The commissioner shall promulgate rules and regulations to effec-
22 tuate the provisions of this section.
23 § 2. The state finance law is amended by adding a new section 99-rr to
24 read as follows:
25 99-rr. Used motor vehicle dealer training program fund. 1. There is
26 hereby established in the joint custody of the state comptroller and the
27 commissioner of motor vehicles a fund to be known as the "used motor
28 vehicle dealer training program fund".
29 2. The fund shall consist of all moneys received by the department of
30 motor vehicles under section four hundred nineteen-b of the vehicle and
31 traffic law and any other moneys appropriated therefor.
32 3. Moneys from the fund shall be available to administer the
33 provisions of section four hundred nineteen-b of the vehicle and traffic
34 law. Monies shall be paid out of the fund on the audit and warrant of
35 the comptroller on vouchers approved by the commissioner of motor vehi-
36 cles. Any interest received by the comptroller on monies on deposit in
37 the used motor vehicle dealer training program fund shall be retained in
38 and become part of such fund.
39 § 3. This act shall take effect on the thirtieth day after it shall
40 have become a law.