Section 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,
  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 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.
    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 the chapter of
  the laws of two thousand which added this subparagraph.  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 the chapter of the laws of two
  thousand which added this  subparagraph,  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.
    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.
    4. Number plates. A dealer 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 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 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.
    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  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 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  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 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 March 31, 2015
    * 6.  Fees. Every original application for registration as a dealer 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 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  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 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 March 31, 2015
    * 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 March 31, 2015
    * 6-a. Fees; deposited. Fees assessed under this section shall be paid
  to the commissioner for deposit to the general fund.
    * NB Effective March 31, 2015
    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  insurance
  department  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 two hundred motor vehicles or fewer in the previous  calendar  year
  shall  obtain  and  continue in effect a surety bond in an amount of ten
  thousand dollars executed by a surety  company  authorized  to  transact
  business  in  the  state  by the insurance department of the state. As a
  condition of obtaining  a  registration  certificate  pursuant  to  this
  section,  every  dealer  applicant  who sold more than two hundred motor
  vehicles in the previous calendar year  shall  obtain  and  continue  in
  effect  a  surety  bond  in  an  amount  of twenty-five thousand dollars
  executed by a surety company authorized  to  transact  business  in  the
  state  by  the  insurance  department  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.
    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 of the bond.
    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.
    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. The commissioner shall not issue any  certificate  of  registration
  authorized by this section to any franchisor, as such term is defined in
  section   four   hundred  sixty-two  of  this  title,  except  that  the
  commissioner may renew such certificate previously issued  or  otherwise
  approved  to  operate  to a franchisor prior to May second, two thousand
  two.
    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  or  transporter  number  plates  may  be used for any
  non-self-propelled device used for the transport of modular homes.
    Dealer or transporter number plates issued upon renewal of a dealer 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 applicable thereto; or
    e. Has wilfully violated any provisions of the  motor  vehicle  retail
  instalment sales act or the motor vehicle retail leasing act; 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 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 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 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 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  chapter  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 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 must immediately
  notify the police of  such  fact  and  in  the  event  of  loss,  theft,
  mutilation  or destruction of any such items the dealer 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 chapter 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  discretion,  require  a  registrant  to
  maintain  a  record  in  a  prescribed  form of all vehicles received or
  disposed of by him, which  records  shall  be  open  at  all  times  for
  inspection  by  the  commissioner,  his  representatives  and  any peace
  officer, acting pursuant to his 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.
  Such civil penalty may not be avoided.
    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.