What's happening
This bill prohibits licensing of businesses that assist for hire or instruct for compensation in securing motor vehicle registrations, with certain exceptions.
Why it matters
Limits the ability of private "service bureaus" to operate as paid middlemen for motor vehicle registrations. , meaning individuals and businesses can no longer get licensed to help others obtain registrations for a fee—potentially reducing opportunities for predatory or exploitative practices, but also removing a convenience option for some consumers.
Carves out exceptions for automotive dealers and certain other entities. (those licensed under sections 394 and 415), so those businesses can continue assisting with registrations, ensuring that car buyers can still get paperwork handled by dealerships and that some established registration services can continue operating.
May shift more of the registration process back to individuals or to the state’s own DMV offices. , increasing personal responsibility for navigating state systems and potentially leading to longer wait times or more confusion for those unfamiliar with the process.
Introduces new enforcement and compliance considerations. , as operating such a registration assistance business without proper license or under the new prohibitions would become a misdemeanor, raising the stakes for businesses and individuals who might otherwise offer unofficial assistance.
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Who cares
Headline styles
Ban Registration Middlemen
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 7
No co-sponsors yet.
History
- Referred to transportation
- Referred to transportation
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Ban Registration Middlemen
In Assembly Committee · Transportation · Sponsor Phil Steck
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2737
2019-2020 Regular Sessions
IN SENATE
January 29, 2019
Introduced by Sen. KAPLAN -- read twice and ordered printed, and when printed to be committed to the Committee on Transportation
AN ACT to amend the vehicle and traffic law, in relation to prohibiting certain entities from engaging in the business of securing motor vehicle registrations or giving instructions as to procuring motor vehicle registrations
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 395 of the vehicle and traffic law, as amended by chapter 124 of the laws of 1974, is amended to read as follows:
§ 395. Certain private service bureaus to be licensed. Except as otherwise provided herein, no person, firm, association or corporation shall, engage in the business of assisting for hire in securing licenses to drive motor vehicles or registrations or titles of motor vehicles, nor shall any person, firm, association or corporation for compensation give instructions as to procuring licenses to drive motor vehicles or registrations or titles of motor vehicles, without being the holder of a license for such purpose issued by the commissioner of motor vehicles. An applicant for a license shall furnish the commissioner with such information and such references as to moral character as he may reasonably require. Every application shall be accompanied by a fee of twenty-five dollars, which shall be regarded as an application fee and shall in no event be refunded. If an application be approved by the commissioner, the applicant upon the payment of an additional fee of twentyfive dollars shall be granted a license which shall expire on the thirtieth day of June following the date of its issuance. The commissioner shall issue a license certificate to each licensee which certificate shall be conspicuously displayed in the place of business of the licensee, or, if the licensee has no place of business, such certificates shall be exhibited at the request of any person. In case of the loss, mutilation or destruction of a certificate, the commissioner shall issue
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02838-02-9
S. 2737 2
a duplicate upon proof of the facts and the payment of a fee of one dollar. The refusal to issue a license may be reviewed by a proceeding under article seventy-eight of the civil practice law and rules. Such license shall be renewed annually upon the payment of a fee of twentyfive dollars, such renewal to take effect on the first day of July in each year. Upon renewal, the commissioner may, in his discretion, issue a license which shall be valid for a two year period. The fee for any such two year renewal shall be fifty dollars.
No license shall be issued under this section nor shall any renewal of a license issued under this section be made for conducting business in a city having a population of fifty thousand or more, according to the latest federal census if the place of business of the licensee, or branch thereof, is within fifteen hundred feet of a building, owned or leased by the state, a county or a city, in which motor vehicle registrations or licenses to drive motor vehicles are issued to the public. The said distance of fifteen hundred feet shall be measured along the public streets by the nearest route from such place of business, or branch thereof, to such building. The provisions of this paragraph shall not apply to a holder of a certificate of registration issued pursuant to section four hundred fifteen of this chapter.
No license shall be issued under this section nor shall any renewal of a license issued under this section be made for a person, firm, association or corporation who engages in the business of assisting for hire in securing motor vehicle registrations or who, for compensation, give instructions as to procuring motor vehicle registrations. The provisions of this paragraph shall not apply to a holder of a license issued pursuant to section three hundred ninety-four of this article or the holder of a certificate of registration issued pursuant to section four hundred fifteen of this chapter.
A licensee shall be subject to such reasonable regulations concerning the business conducted under his license as the commissioner may prescribe and he shall permit the commissioner, or his representatives, to inspect his place of business on any business day and shall furnish to the commissioner, or his representative, such information concerning the conduct of the business as may be reasonably required.
The provisions of subdivisions five and six of section three hundred ninety-four of this [chapter] article shall be applicable with respect to this section.
The holder of a license issued pursuant to section three hundred ninety-four of this [chapter] article or the holder of a certificate of registration issued pursuant to section four hundred fifteen of this chapter shall not be required to secure a license under this section in order to conduct a business for which a license is required by this section but any such licensee, or registrant, who shall conduct such business, shall be subject to the same visitation and regulation by the commissioner with reference to such business as provided in this section with respect to a licensee under this section.
As used in this section the phrase "licenses to drive motor vehicles" includes the term "learners' permits".
A violation of any of the provisions of this section shall constitute a misdemeanor.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the vehicle and traffic law, in relation to prohibiting certain entities from engaging in the business of securing motor vehicle registrations or giving instructions as to procuring motor vehicle registrations
Purpose
This legislation would outlaw the licensing of certain predatory third- party vendors selling access to vehicle registration services already performed by the Department of Motor Vehicles.
Summary of provisions
Section one amends the vehicle and traffic law in order to prevent busi- nesses that are not engaged in vehicle sales from charging residents for directions on how to register your vehicle - a service the Department of Motor Vehicles performs.
Section two is the effective date.
Justification
It's often hard for consumers to determine the legitimacy of online services at a glance. Websites like www.dmv-services.com or www.onlineregistration.us appear to be portals to official Department of Motor Vehicles webpages and, despite the mandatory but hard to find disclaimer, many people are fooled into paying an unnecessary "finder's" fee. One constituent expressed outrage that New York raised the price of registration renewals before realizing he had nearly fallen for the scam.
For example, at "On-Line Registration" the webpage states consumers have landed on the "New York Motor Vehicles Service Bureau" webpage. That site charges a $45 to $75 "Online Service Bureau" fee for registration renewals (based on "processing time"). Using an official looking monik- er, this website and others like it simultaneously rips off New York State residents and tarnishes the image of the Department of Motor Vehi- cles. In the case of "On-Line Registration", the required disclaimer is buried under the site's privacy policy, making it extremely unlikely that the average consumer would find it. For reference, that disclaimer is copied below:
"NOTICE PURSUANT TO 15 NYCRR 77.7 THIS TRANSACTION OR SERVICE IS ALSO AVAILABLE, AT NO CHARGE, DIRECTLY FROM THE OFFICIAL DEPARTMENT OF MOTOR VEHICLES WEBSITE AT WWW.NYSDMV.COM."
It's clear these websites provide no essential service to New York State residents. Using shady tactics and clever search engine. optimization they target consumers who are often unfamiliar with internet etiquette or in a hurry to finalize their paperwork. There is no reason for crooked businesses like these, which exist only to hustle state resi- dents attempting to comply with the law, to be licensed by the Depart- ment of Motor Vehicles.
Legislative history
A. 9017 of 2018; Passed Assembly
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.