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NY A07844

Bill

Status

Passed

6/16/2014

Primary Sponsor

David Gantt

Click for details

Origin

Assembly

2013-2014 General Assembly

AI Summary

  • Prohibits manufacturers, distributors, and their subsidiaries from obtaining new motor vehicle dealer registrations, with limited exceptions for temporary ownership during transitions (up to one year, extendable to two years for good cause, or up to five years for house coaches).

  • Restricts franchisors from requiring dealers to sell exclusive extended service contracts, maintenance plans, or similar products through statements, franchise agreement provisions, performance measurements, or exclusive promotion requirements.

  • Expands dealer protections regarding facility improvements by prohibiting requirements to construct or substantially renovate facilities within ten years of initial completion and restricting requirements to purchase goods or materials from franchisor-selected vendors if comparable alternatives exist.

  • Strengthens dealer repurchase rights upon franchise termination, including signage repurchase within five years with depreciation schedules, and requires franchisor compensation for facility upgrades and management system lease costs when franchises are terminated due to line-make discontinuation.

  • Enhances warranty and incentive claim protections by extending chargeback limitations, requiring written notice before adverse actions, limiting audit periods to one year (five years for fraud), restricting reimbursement rate changes to once per calendar year, and prohibiting denials based solely on clerical errors or administrative technicalities.

Legislative Description

Relates to automobile manufacturers and unfair practices by franchisors.

Last Action

signed chap.26

6/16/2014

Committee Referrals

Transportation5/12/2014
Codes2/11/2014
Transportation1/8/2014
Rules6/20/2013
Codes6/18/2013
Transportation6/6/2013

Full Bill Text

No bill text available