Bill S7885A-2009

Requires actual consent to participation in franchise programs

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

Details

Actions

  • Jul 1, 2010: ordered to third reading rules cal.548
  • Jul 1, 2010: substituted for a11162
  • Jun 17, 2010: referred to codes
  • Jun 17, 2010: DELIVERED TO ASSEMBLY
  • Jun 17, 2010: PASSED SENATE
  • Jun 10, 2010: ADVANCED TO THIRD READING
  • Jun 9, 2010: 2ND REPORT CAL.
  • Jun 8, 2010: 1ST REPORT CAL.876
  • May 27, 2010: PRINT NUMBER 7885A
  • May 27, 2010: AMEND AND RECOMMIT TO TRANSPORTATION
  • May 20, 2010: REFERRED TO TRANSPORTATION

Votes

VOTE: COMMITTEE VOTE: - Transportation - Jun 8, 2010
Ayes (17): Dilan, Stavisky, Savino, Perkins, Addabbo, Squadron, Diaz, Valesky, Aubertine, Foley, Fuschillo, Libous, Nozzolio, Robach, Larkin, Young, Volker
Ayes W/R (1): Lanza
Excused (1): Johnson O

Memo

BILL NUMBER:S7885A

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 rollout and easy continuation of programs or promotions, without unduly burdening franchisors or franchised dealers.

LEGISLATIVE HISTORY: This is a new bill.

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.


Text

STATE OF NEW YORK ________________________________________________________________________ 7885--A IN SENATE May 20, 2010 ___________
Introduced by Sen. DILAN -- read twice and ordered printed, and when printed to be committed to the Committee on Transportation -- commit- tee discharged, bill amended, ordered reprinted as amended and recom- mitted to said committee 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.

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