Increases the penalties for violations of provisions regulating carriers of household goods by motor vehicle

BILL NUMBER:S5002A

Title of bill

An act to amend the transportation law, in relation to increasing the penalties for violations by carriers of household goods

Purpose or general idea of bill

This bill would increase the penalties associated with violating Article 9 of the transportation law related to the transportation of household goods by motor vehicle.

Summary of specific provisions

Section 1 amends subdivisions 3 and 4 of section 145 of the transportation law. Section 2 is the effective date.

Justification

In order to operate as a mover in the State of New York, the person or company must be issued a permit by the New York State Department of Transportation. Of late, the instances of people and businesses holding themselves out to be movers without having a valid permit have increased significantly. With new technology, such as Craig's List and Facebook, people are able to hold themselves out as movers easily. The Department cannot keep up with the influx of complaints and examples of illegal movers.

This legislation is designed to significantly increase the penalties associated with operating as a mover in New York State without a valid permit. Currently, the penalties are such that a violation results in a minor fine that does not serve as a deterrent to others. In addition, there is no significant way to curtail a bad apple from simply changing a business name and going back out to do more illegal moves. This legislation would increase the fines substantially and would also give the commissioner of transportation the ability to suspend registrations of vehicles owned or operated by these movers. These penalties are severe enough that this should curtail individuals from operating as an illegal mover.

Illegal movers pose a significant risk to consumers in New York. Moving in New York is a regulated industry. This regulation is designed to protect consumers and ensure that their personal items are moved in an effective, efficient and respectful manner. Many illegal movers do not respect the consumer and have been known to damage and/or steal personal items. In addition, there have been many instances where illegal movers have held a customer's goods until such time as the customer pays additional money to the illegal mover in order to get what is rightfully theirs. Further, if something is damaged or destroyed, an illegal mover is likely not insured and therefore the customer has no recourse for being compensated for their damaged property.

Illegal movers are also a problem for the State of New York. Illegal movers are not paying proper sales tax to the State. They are also not complying with important New York State laws such as workers compensation laws or applicable labor laws. If the number of illegal movers can be decreased it will help the State of New York as well as consumers and the legal movers who are reputable small businesses struggling against illegal movers that can undercut them at every turn.

Prior legislative history

New bill.

Fiscal implications

None.

Effective date

This act shall take effect on the sixtieth day after it shall have become a law.