What's happening
This bill increases penalties and clarifies enforcement for repair shops that fail to pay restitution for consumer financial losses.
Why it matters
Stronger penalties for nonpayment. The bill authorizes the state to impose additional penalties (up to $500 more) on auto repair shops that do not pay court-ordered restitution to consumers, on top of existing fines and the amount owed for the consumer’s financial loss. This raises the financial stakes for noncompliance.
Clearer payment and enforcement process. The bill clarifies that restitution payments must be made within 30 days, and if not paid, the state can pursue the unpaid amount as if it were a civil judgment—making it easier for the government to collect what is owed and for consumers to actually get restitution.
Restitution prioritized over penalties. The amended law allows for some or all penalties to be waived if the repair shop promptly pays restitution to the consumer, incentivizing businesses to directly compensate harmed consumers rather than just paying state fines.
Limits on damages and additional civil rights. The bill maintains that restitution is limited to actual financial loss (repair costs or overcharges), not punitive or incidental damages, but clarifies that accepting restitution doesn’t prevent anyone from pursuing further civil action if they choose, preserving consumers’ legal options.
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Who cares
Repair shop customers seeking restitution
The bill would strengthen enforcement of restitution orders for repair costs and overcharges by requiring increased penalties when shops fail to pay on time.
Registered motor vehicle repair shops
Shops that fail to comply with restitution orders would face an additional penalty of up to $500, plus the financial loss if it was not already included in the penalty.
Unregistered motor vehicle repair shops
The bill would apply the same mandatory penalty increases for unpaid restitution to shops operating without registration.
Department of Motor Vehicles
The commissioner would be required to increase penalties for noncompliance with restitution orders, while the department would continue handling restitution payments to complainants.
Headline styles
Require Repair Shops Restitution
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
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.
Require Repair Shops Restitution
In Assembly Committee · Codes · Sponsor David Weprin
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2751
2019-2020 Regular Sessions
IN SENATE
January 29, 2019
Introduced by Sen. COMRIE -- 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 the payment of restitution by registered and unregistered repair shops
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivisions 2 and 3 of section 398-e of the vehicle and traffic law, as amended by chapter 634 of the laws of 1980, paragraphs (a) and (c) of subdivision 2 and paragraphs (a), (d) and (e) of subdivision 3 as amended by chapter 732 of the laws of 1987, paragraph (b) of subdivision 2 as amended by section 2 of part OO of chapter 59 of the laws of 2009 and paragraph (c) of subdivision 3 as amended by chapter 356 of the laws of 2001, are amended to read as follows:
2. Civil penalty; suspension for failure to pay. (a) The commissioner, or any person deputized by him, may, by order, require a registrant or an unregistered repair shop to pay to the people of this state a penalty as hereinafter provided. Such penalty may be imposed in addition to or in lieu of revoking or suspending the certificate of registration of a registrant in accordance with the provisions of this article, or such a penalty may be imposed upon a finding that a registrant or an unregistered repair shop: (i) has been grossly negligent in the performance of any repair or adjustment covered by this article; or (ii) has grossly overcharged for such repair or adjustment.
(b) (i) Such penalty for a first violation shall be in a sum not exceeding seven hundred fifty dollars for each violation found to have been committed, and for a second or subsequent violation not arising out of the same incident both of which were committed within a period of thirty months, be in a sum of not more than one thousand dollars for each violation found to have been committed; provided, however, the penalty for each and any violation of paragraph (g) of subdivision one of this section found to have been committed shall be no less than three
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08420-01-9
S. 2751 2
hundred and fifty dollars and no more than one thousand dollars, except that if a finding of financial loss has been made pursuant to subdivision three of this section, the amount of such penalty may be increased by the amount of financial loss so found.
(ii) Notwithstanding the provisions of subparagraph (i) of this paragraph, if a finding of financial loss has been made pursuant to subdivision three of this section and a registrant or unregistered repair shop fails to comply with an order to pay restitution in the time and manner provided by such subdivision, the commissioner shall, by order, increase the amount of the penalty assessed pursuant to subparagraph (i) of this paragraph by:
(A) the sum of an additional amount not to exceed five hundred dollars and the amount of financial loss so found, if the amount of the penalty imposed pursuant to subparagraph (i) of this paragraph did not include such financial loss; or
(B) an additional amount not to exceed five hundred dollars, if the amount of the penalty imposed pursuant to subparagraph (i) of this paragraph included such financial loss.
(c) Upon the failure of a registrant or an unregistered repair shop to pay such penalty, or, where the order so [permits] requires, to make restitution as provided in subdivision three of this section, within thirty days after the mailing of such order, postage prepaid, registered or certified, and addressed to the last known place of business of such registrant or unregistered repair shop, unless such order is stayed as provided in subdivision three of section three hundred ninety-eight-f of this [chapter] article, the commissioner may revoke the certificate of registration of such registrant or may suspend the same for such period as he may determine or may seek to recover unpaid civil penalties in a civil action in the name of the commissioner. Civil penalties assessed under this subdivision shall be paid to the commissioner for deposit into the state treasury.
(d) In addition, as an alternative to such civil action and provided that no proceeding for judicial review shall then be pending and the time for initiation of such proceeding shall have expired, the commissioner may file with the county clerk of the county in which the registrant is located a final order of the commissioner containing the amount of the penalty assessed pursuant to paragraph (b) of this subdivision. The filing of such final order shall have the full force and effect of a judgment duly docketed in the office of such clerk and may be enforced in the same manner and with the same effect as that provided by law in respect to executions issued against property upon judgments of a court of record.
3. Restitution; assessment. (a) Upon a determination that a registrant or an unregistered repair shop has done or failed to do any act for which suspension of the registrant's registration or a civil penalty against the registrant or unregistered repair shop could be imposed, the person making such determination may make a finding of financial loss to any complainant or complainants resulting from the actions of the registrant or unregistered repair shop. The person making such finding may provide that if the registrant or unregistered repair shop makes restitution to the complainant or complainants for the amount or amounts so found, that payment of such restitution may be substituted in lieu of any suspension or civil penalty, or a specified portion thereof imposed upon the registrant or unregistered repair shop may be waived upon payment of such restitution. However, a finding of financial loss shall only be made if the complainant (i) agrees to accept the amount so
S. 2751 3
found, if offered by the registrant or unregistered repair shop, and (ii) is not a party to any litigation which is pending or which has gone to judgment in relation to the same matter in any civil court.
(b) The amount of financial loss which may be found and proposed as restitution shall be limited to an amount necessary to repair the vehicle or vehicles in question and/or any amount of overcharge which may be found. Neither punitive nor incidental damages may be included in the finding of financial loss.
(c) If payment of restitution to the complainant is [authorized in lieu of all or a portion of a suspension or civil penalty] ordered, in order for the registrant or unregistered repair shop to exercise the option to [make such payment] avoid all or a portion of a suspension or civil penalty, such payment must be made by means of a certified check or money order payable to the complainant or complainants delivered to an office of the department as directed by the commissioner or his agent within thirty days of the date of notice of a finding of financial loss, suspension and/or civil penalty. Upon receipt of such certified check or money order, the department shall forward the same to the complainant or complainants. In the event that the registrant or unregistered repair shop should fail to make payment for restitution within such thirty days, but, at a later time, pays such civil penalty, the department shall deduct from such civil penalty payment the amount assessed for restitution, and shall mail a check for such amount to the complainant or complainants.
(d) If payment of restitution [may be substituted in lieu of a civil penalty or portion of a civil penalty] is ordered, and the registrant or unregistered repair shop [does not exercise the option] fails to make such payment, the civil penalty [becomes] shall be due as provided in subdivision two of this section and the provisions of that subdivision relating to suspension of registration and recovery of civil penalties shall apply.
(e) Any payment made in compliance with such a finding of financial loss shall not preclude any civil action which may be brought by the complainant, registrant or unregistered repair shop, and any such finding may be considered but shall not be binding upon any court before which any such action is brought.
§ 2. This act shall take effect on the first of November next succeeding the date on which it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made on or before such effective date.
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 the payment of restitution by registered and unregistered repair shops
Purpose or general idea of bill
To better ensure the payment of restitution by motor vehicle repair shops to consumers.
Summary of specific provisions
The bill requires motor vehicle repair shops found to have committed certain violations to pay restitution to consumers when ordered to do so by the Department of Motor Vehicles upon a finding of financial loss to such consumers. The bill also calls for an increase in any civil penalty imposed for violations, if a repair shop fails to pay DMV-ordered resti- tution, and allows the waiver of a civil penalty and/or suspension upon payment of restitution.
Justification
Consumers who have been harmed by negligence or fraud perpetrated by a motor vehicle repair shop should be compensated. Under the Repair Shop Registration Act, administrative law judges are authorized to order violators to pay civil penalties, pay the affected consumer restitution, and/or suspend or revoke the shop's license to operate. The Act allows judges to offer a more "attractive" option to violators often involving lowered civil penalties and reduced license suspension periods - if the violator agrees to pay the consumer the restitution ordered.
Unfortunately, there have been instances in which unscrupulous repair shops fail to take this option within thirty days, leaving the judge with no further authority to order the shop to pay restitution to the consumer. Instead, the original civil penalty becomes due, and the original suspension period applies. In this instance, the consumer is no better off then when he or she first filed a complaint with the Depart- ment of Motor Vehicles. This bill would amend the Act to provide that when a violation is found to have occurred consumer restitution, when ordered by DMV, is required to be paid.
Prior legislative history
S 8629 COMRIE Same as A 5503 Weprin
Fiscal implications
None.
Effective date
This act shall take effect on the first of November next succeeding the date of enactment.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.