Requires actual consent to participate in franchise programs for motor vehicle dealers.
Ayes (61): Adams, Addabbo, Alesi, Aubertine, Bonacic, Breslin, DeFrancisco, Diaz, Dilan, Duane, Espada, Farley, Flanagan, Foley, Fuschillo, Golden, Griffo, Hannon, Hassell-Thomps, Huntley, Johnson C, Johnson O, Klein, Krueger, Kruger, Lanza, Larkin, LaValle, Leibell, Libous, Little, Marcellino, Maziarz, McDonald, Montgomery, Nozzolio, Onorato, Oppenheimer, Padavan, Parker, Peralta, Perkins, Ranzenhofer, Robach, Saland, Sampson, Savino, Schneiderman, Serrano, Seward, Skelos, Smith, Squadron, Stachowski, Stavisky, Stewart-Cousins, Thompson, Valesky, Volker, Winner, Young
Excused (1): Morahan
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.
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.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD17392-02-0