Relates to the temporary suspension of a repair shop registration or license and the jurisdiction of repair shop appeals; repealer

Section 2 of this bill would amend VTL § 398-f(1)(b) to provide for the temporary suspension of the registration of a repair shop pending an administrative hearing, investigation or prosecution.

Section 3 of this bill would repeal VTL § 398-f(2), which establishes the Repair Shop Review Board.

Section 4 of this bill would amend VTL § 398-f(3) to provide that appeals of decisions related to repair shop registrations would be heard by the Administrative Appeals Board pursuant to Article 3-A of the Vehicle and Traffic Law; conforming amendments would be made to paragraphs (b) and (c) of such subdivision.

Section 5 of this bill would repeal VTL § 398-f(4), as it duplicates a similar provision in Article 3-A.

Section 6 of this bill makes conforming amendments to VTL § 398-i(4) in relation to the Repair Shop Review Board.

Section 7 of this bill provides for an immediate effective date, except that sections 1, 3, 4, 5 and 6 would take effect 30 days after enactment and would apply to appeals pending before the Repair Shop Review Board.

EXISTING LAW

Currently, DMV does not have the authority to suspend a repair shop registration pending a hearing, investigation or prosecution. The Repair Shop Review Board, established in VTL § 398-f(2), reviews all repair shop related appeals, while all other appeals are handled by the Administrative Appeals Board.

Prior legislative history

Bill sections 1, 3, 4, 5 and 6 are new proposals. Bill section 2 was introduced in 2008 as S.7383-A but did not pass.

STATEMENT IN SUPPORT

This bill would implement two measures to enhance consumer protection. First, this bill would address an anomaly in the law whereby all businesses regulated by DMV's Vehicle Safety Unit, except for repair shops, may have their registration or license suspended pending a hearing, investigation or prosecution. As a result of this loophole, DMV lacks the authority to temporarily suspend a repair shop's license, even when the shop is engaged in activity that may defraud or endanger the public. This bill would fix this loophole and allow DMV to temporarily suspend repair shop licenses.

Second, this bill would streamline the appeals process. Under current law, the Administrative Appeals Board determines all appeals except for repair shop cases. Those cases are heard by a separate body: the Repair Shop Review Board. This bifurcation makes little sense because compared to the number of appeals handled by the Administrative Appeals Board (628 in 2008); the number of repair shop appeals is minimal (13 in 2008 and 25 in 2007). This small number of cases could be easily absorbed by the Administrative Appeals Board. In addition, whereas the Administrative Appeals Board meets monthly, the Repair Shop Review Board has only one meeting a year and it has become increasingly difficult to find qualified people who are willing to serve on the Board.

Not only would eliminating the Repair Shop Review Board make the appeals process more efficient, but it would also reduce the time it takes for appeals to be decided and provide better response to consumers. Currently, consumers who file complaints against a repair shop may have to wait months for a decision, which unnecessarily delays possible restitution. This proposal should ensure that cases are decided more quickly, which would benefit both repair shop owners and consumers.

Budget implications

This bill would not have any impact upon the State budget.

Effective date

The bill would take effect immediately, except that sections 1, 3,4, 5 and 6 would take effect 30 days after enactment and would apply to appeals pending before the Repair Shop Review Board.