S1347-2011 - NY Senate Open Legislation - Requires actual consent to participation in franchise programs

Requires actual consent to participate in franchise programs for motor vehicle dealers.

Sponsor: DILAN / Co-sponsor(s): DIAZ
Law Section: Vehicle and Traffic Law / Law: Amd S463, V & T L

S1347-2011 Actions

Sep 23, 2011: SIGNED CHAP.548
Sep 12, 2011: DELIVERED TO GOVERNOR
Jun 6, 2011: returned to senate
Jun 6, 2011: passed assembly
Jun 6, 2011: ordered to third reading rules cal.37
Jun 6, 2011: substituted for a1191
Apr 12, 2011: referred to codes
Apr 12, 2011: DELIVERED TO ASSEMBLY
Apr 12, 2011: PASSED SENATE
Mar 3, 2011: ADVANCED TO THIRD READING
Mar 2, 2011: 2ND REPORT CAL.
Mar 1, 2011: 1ST REPORT CAL.130
Jan 6, 2011: REFERRED TO TRANSPORTATION

S1347-2011 Meetings

Transportation: Mar 1, 2011

S1347-2011 Calendars

S1347-2011 Votes

VOTE: COMMITTEE VOTE: - Transportation - Mar 1, 2011

Ayes (18): Fuschillo, Larkin, Maziarz, McDonald, Nozzolio, Ranzenhofer, Robach, Young, Zeldin, Dilan, Adams, Diaz, Kennedy, Perkins, Smith, Squadron, Stavisky, Valesky
Excused (1): Johnson

VOTE: FLOOR VOTE: - Apr 12, 2011

Ayes (56): Adams, Addabbo, Alesi, Avella, Ball, Bonacic, Breslin, Carlucci, DeFrancisco, Dilan, Duane, Espaillat, Farley, Flanagan, Fuschillo, Gianaris, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Huntley, Johnson, Kennedy, Klein, Krueger, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, Montgomery, Nozzolio, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Saland, Sampson, Savino, Serrano, Seward, Skelos, Smith, Stavisky, Stewart-Cousin, Valesky, Young, Zeldin
Excused (6): Diaz, Gallivan, Kruger, McDonald, Oppenheimer, Squadron

S1347-2011 Memo

BILL NUMBER:S1347

TITLE OF BILL:
An act
to amend the vehicle and traffic law, in relation to requiring actual
consent to participation in franchise programs

PURPOSE:
To ensure that franchised motor vehicle dealers have given their
actual consent to franchisor programs that include a dealer expense.

SUMMARY OF PROVISIONS:
Section one of the bill would add a new paragraph (hh) to section
463(2) of the Franchised Motor Vehicle Dealer Act, Article 17-A of
the State Vehicle & Traffic Law. New paragraph (hh) would prohibit a
motor vehicle franchisor from requiring that a franchised motor
vehicle dealer contribute monetarily to any program or promotion
unless the franchised dealer has given written consent to
participation in the program or promotion within sixty days prior to
the start of the program. Program or promotion renewals would not
require further written agreement if the dealer consented to renewal
in the original agreement, but a dealer could withdraw from a renewal
upon reasonable written notice. Written consent could be handwritten,
typed, or by electronic signature.

Section two makes the bill effective on the January first following
enactment.

JUSTIFICATION:
Motor vehicle manufacturers and distributors run a number of programs
and promotions, and those programs and promotions change frequently.
Sometimes, programs and promotions include a dealer contribution.
Where a dealer contribution is required, manufacturers and
distributors should not presume that a franchised dealer will
participate. Instead, the dealer's written consent to the specific
program or promotion should be required. This bill achieves that by
requiring that the dealer's written consent be given within the sixty
days prior to the dealer's participation. That consent can include
consent to automatic renewals so that a new signature is not needed
when a program or promotion is continued. If a dealer wishes to end
participation despite the program's or promotion's renewal, the
dealer must give written notice within thirty days of renewal. In
this way, the bill permits the roll out and easy continuation of
programs or promotions, without unduly burdening franchisors or
franchised dealers.

LEGISLATIVE HISTORY:
2010:  S.7885/A.11162 - Passed Senate

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become law.

S1347-2011 Text

 S T A T E   O F   N E W   Y O R K
 
                                          1347
 2011-2012 Regular Sessions
 I N  SENATE
 January 6, 2011
 
 Introduced  by  Sens. DILAN, DIAZ -- 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, in  relation  to  requiring
 actual consent to participation in franchise programs
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. Subdivision 2 of section 463 of the vehicle and traffic law
 is amended by adding a new paragraph (hh) to read as follows:

 (HH) TO REQUIRE THAT A  FRANCHISED  MOTOR  VEHICLE  DEALER  CONTRIBUTE
 MONETARILY TO ANY PROGRAM OR PROMOTION WITHOUT FIRST RECEIVING THE WRIT
 TEN  CONSENT  OF  THE  FRANCHISED MOTOR VEHICLE DEALER TO PARTICIPATE IN
 SUCH PROGRAM OR PROMOTION. FOR PURPOSES OF THIS PARAGRAPH,  THE  WRITTEN
 CONSENT  SPECIFIC  TO  THE  PARTICULAR  PROGRAM  OR  PROMOTION  MUST  BE
 EXECUTED, BY MEANS OF HANDWRITTEN, TYPED OR ELECTRONIC SIGNATURE, WITHIN
 SIXTY DAYS PRIOR TO THE START OF THE PARTICULAR  PROGRAM  OR  PROMOTION,
 PROVIDED,  HOWEVER,  THAT  CONSENT  SHALL  NOT  BE  REQUIRED TO CONTINUE
 PARTICIPATION IN A PROGRAM OR PROMOTION TO WHICH THE  DEALER  HAS  GIVEN
 WRITTEN  CONSENT TO RENEWAL, AND PROVIDED FURTHER, THAT THE DEALER SHALL
 BE ABLE TO TERMINATE SUCH RENEWAL UPON REASONABLE WRITTEN NOTICE  WITHIN
 THIRTY DAYS FOLLOWING THE START OR RENEWAL OF THE PROGRAM OR PROMOTION.
 

S  2. This act shall take effect on the first of January next succeed
 ing the date on which it shall have become a law.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD03020-01-1

S1347-2011: Requires actual consent to participation in franchise programs