New York State Law
Vehicle and Traffic Law
Consolidated Laws of New York's VTL code
Article 12A - NY Vehicle and Traffic Law
MOTOR VEHICLE REPAIR SHOP REGISTRATION ACT
S 398. Title. This act shall be known as the "Motor Vehicle Repair Shop Registration Act." S 398-a. Statement of purpose. The purposes of this article are to further highway safety by promoting the proper and efficient repair of malfunctioning or disabled motor vehicles and to protect the consumers of this state from dishonest, deceptive and fraudulent practices in the repair of such motor vehicles. These purposes will be accomplished by the enactment of legislation which require the registration of those engaged in the business of repairing malfunctioning or disabled motor vehicles and to exclude from that business those persons who engage in dishonest or fraudulent practice or who otherwise demonstrate unfitness for that business. That further, the purpose of this article is to protect the motoring public from improper repairs made to its vehicles to set standards for quality repairs to be made to motor vehicles for fair and reasonable fees and to eliminate unqualified automotive repair shops from engaging in the business of automotive repair to malfunctioning or disabled vehicles. S 398-b. Definitions. 1. For the purposes of this article, the term "motor vehicle" shall mean motor vehicles as defined by section one hundred twenty-five and trailers as defined by section one hundred fifty-six of this chapter. 2. As used in this article the term "motor vehicle repair shop" means any person who, for compensation, is wholly or partially engaged in the business of repairing or diagnosing motor vehicle malfunctions or repairing motor vehicle bodies, fenders or other components damaged by accident or otherwise, except that such term does not include: (a) an employee of a motor vehicle repair shop who engages in the business of repairing motor vehicles solely by reason of his employment; (b) any person who is solely engaged in the business of repairing the motor vehicles of a single commercial or industrial establishment, or of the federal, state or a local government or any agency thereof; or (c) any person whose activities consist solely of fueling, changing oil, water, batteries or tires, replacing fan belts, air filters or oil filters, installing windshield wiper blades or light bulbs, or such other minor repair and servicing functions as the commissioner shall by rule prescribe; or (d) any person solely engaged in the business of repairing farm or road building machines, or such other utility vehicles as the commissioner may by regulation designate. The term "motor vehicle repair shop" shall also include any shop, drive-in station, or garage operated by any person, firm, corporation or association at which motor vehicles are inspected for the purposes of appraising, evaluating or estimating the extent or value of motor vehicle damage or the necessity or cost of motor vehicle repairs. S 398-c. Registration required; application; fees and issuance of certificate of registration. 1. Registration required. On and after the first day of November, nineteen hundred seventy-five, no person shall operate, or cause to have operated, a motor vehicle repair shop, unless such motor vehicle repair shop is registered in accordance with the provisions of this article and unless such registration is currently valid. The commissioner may request the attorney general to commence an action to enjoin the operation of any motor vehicle repair shop in violation of this subdivision. A violation of this subdivision shall be heard and determined and shall be subject to penalties as provided in section three hundred ninety-eight-i of this chapter. 2. Application. An application for a certificate of registration under this section shall be filed with the commissioner, in such form and detail as the commissioner shall prescribe, setting forth: (a) the name and the residence address of the applicant; if an individual, the name under which he intends to conduct business; if a co-partnership, the name and residence address of each member thereof, and the name under which the business is to be conducted; if a corporation where stock is not sold to the public on a stock exchange or over-the-counter market, the name of the corporation, the name and residence address of each of the officers, directors and stockholders of the corporation holding more than ten percent of the outstanding stock and the name under which the business is to be conducted if different from the name of the corporation; if a corporation whose stock is sold to the public on a stock exchange or over-the-counter market, the name and business address of the corporation, the name under which the business is to be conducted if different from the corporate name and a separate statement that the corporation is either registered in New York or is authorized to do business in this state. (a-1) appropriate certification or documentation from the municipality where the repair shop is located that the facility is in compliance with applicable zoning and planning regulations, fire regulations and building codes. It shall be the responsibility of the applicant to provide such documentation for the commissioner. The commissioner may waive this requirement for applicants from municipalities without such codes or regulations. (b) the place or places, including the complete address or addresses, where the business is to be conducted. (c) on and after January first, nineteen hundred ninety-one, an indication as to whether the applicant services motor vehicle air-conditioning systems and, if so, whether the applicant has purchased approved motor vehicle refrigerant recycling equipment or approved motor vehicle refrigerant recapturing equipment in accordance with section 38-0107 of the environmental conservation law. Applicants who indicate that they have purchased approved motor vehicle refrigerant recycling equipment must submit along with their application either a manufacturer's certificate issued upon purchase or an invoice with proof of payment. All such documents shall contain the name and address of the repair shop and manufacturer, the date purchased, and the serial numbers of the units acquired. (d) such further information as the commissioner may by rule prescribe. The commissioner may require the applicant to appear at such time and place as may be designated by the commissioner for examination to enable him to determine the accuracy of the facts set forth in the written application, either for initial registration or renewal thereof. Where the business is conducted under franchise, lease or other similar arrangement, the commissioner, in his discretion, may require the application to be submitted by the franchise holder, lessee or other person actually responsible for conducting the business. Every application under this section shall be affirmed as true by the applicant. 3. Fees and issuance of certificate of registration. (a) Every original application shall be accompanied by an application fee of ten dollars, which shall in no event be refunded. If an application is approved by the commissioner, upon payment by the applicant of an additional fee of one hundred fifty dollars for each place of business, the applicant shall be granted a certificate of registration for each place of business, which certificate or certificates shall be valid for a period of two years. The commissioner may, however, in his discretion, issue such certificates of registration on a staggered expiration basis, in which event the fees set forth herein shall be prorated on a monthly basis. In the event a certificate of registration is issued on a staggered expiration basis, it shall expire on the date fixed by the commissioner. The biennial fee for renewal of any certificate of registration issued pursuant to this section shall be one hundred fifty dollars. The commissioner shall issue a certificate of registration to each applicant pursuant to the provisions of this article, which certificate shall be conspicuously displayed in the place of business of the registrant for which such registration is issued. In the case of loss, mutilation or destruction of a certificate of registration, the commissioner shall upon application issue a duplicate certificate thereof upon proof of the facts. (b) If a certificate of registration under this section shall be issued in the names of two or more persons as partners and a change occurs in the membership of such partnership, the certificate of registration shall not expire thereupon so long as any one of the persons named in such certificate is a member of the partnership or carries on the business of the partnership as surviving member of the partnership; provided, however, that when any such change occurs and the certificate of registration does not expire, the partners or surviving member after such change shall forthwith file with the commissioner (i) a statement regarding the change in such form and giving such information as the commissioner shall require or, where the change involves the addition of one or more new partners, (ii) a new application as provided in subdivision two of this section. Such new certificate of registration shall expire on the expiration date of the one replaced. (c) If a certificate of registration under this section shall be issued and, subsequent thereto, the business name of any such shop is changed, or in the event that the owners of a business incorporate said business with no change in the actual ownership and operation thereof, such owner or owners thereof shall forthwith file with the commissioner a statement regarding the change of name in such form and with such information as the commissioner shall require. (d) Fees assessed under this section shall be paid to the commissioner for deposit to the general fund. 4. If an individual owner of a registered repair shop dies or is adjudged mentally incompetent, his executor or administrator or his committee may carry on the business by filing an amendment to the application for registration. Every corporation whose stock is not sold to the public on a stock exchange or over-the-counter market shall file an amendment to its application for registration if there is any change in its officers, stockholders who hold more than ten percent of the outstanding shares, or directors. Every repair shop shall file an amendment to its application for registration if it changes its location. Every such amendment shall be filed within thirty days of the event. S 398-d. Motor vehicle repair shop requirements. 1. All work done by a motor vehicle repair shop shall be recorded on an invoice and shall describe all service work done and parts supplied. If any used parts are supplied, the invoice shall clearly state that fact. If any component system installed is composed of new and used parts, such invoice shall clearly state that fact. If any body parts are supplied to a vehicle with a gross vehicle weight not in excess of eighteen thousand pounds, the invoice shall clearly state whether such parts were manufactured as original equipment parts for the vehicle, or were manufactured as non-original replacement parts or are used parts. One copy of the invoice shall be given to the customer and one copy shall be retained by the motor vehicle repair shop. For the purposes of insuring that the repairs described on the work invoice have been performed, every customer and his representative or a representative of an insurance company where such company has paid or is liable to pay a claim for damage to such customer's motor vehicle shall have a right to inspect the repaired motor vehicle. Such right of inspection shall also include the right to inspect all replaced parts and components thereof, except warranty or exchange parts. Provided, however, the exception for warranty or exchange parts from the right of inspection shall not apply to replacement inflatable restraint systems. Any such inspection by an insurer shall be made in a manner consistent with the requirements of sections two thousand six hundred one and three thousand four hundred eleven of the insurance law. The motor vehicle repair shop shall make available to the customer, upon timely written demand, or for such work authorized over the telephone, shall keep until the customer's motor vehicle is retrieved, all replaced parts, components or equipment excepting any parts, components or equipment normally sold on an exchange basis or subject to a warranty. 2. Upon the request of any customer, a motor vehicle repair shop shall make an estimate in writing of the parts and labor necessary for a specific job and shall not charge for work done or parts supplied in excess of the estimate without the consent of such customer. The motor vehicle repair shop may charge a reasonable fee for making an estimate. If any body parts are included in the estimate for a vehicle with a gross vehicle weight not in excess of eighteen thousand pounds, the estimate shall clearly state whether such parts were manufactured as original equipment parts for the vehicle, or were manufactured as non-original replacement parts or are used parts. 3. Each motor vehicle repair shop shall maintain such records as are required by the regulations of the commissioner and such records shall be available for inspection by the commissioner or his designee during all business hours. Where a motor vehicle repair shop changes its name or location, notification thereof shall be given to the commissioner not more than ten days therefrom. 4. (a) Every motor vehicle repair shop shall display in a conspicuous place in such shop a sign stating: PURSUANT TO SECTION 2610 OF THE INSURANCE LAW AN INSURANCE COMPANY MAY NOT REQUIRE THAT REPAIRS BE MADE TO A MOTOR VEHICLE IN A PARTICULAR PLACE OR REPAIR SHOP. YOU HAVE A RIGHT TO HAVE YOUR AUTOMOBILE REPAIRED IN THE SHOP OF YOUR CHOICE. (b) Such sign shall be made of a durable material capable of withstanding outdoor climatic conditions, with the letters being at least two inches high and having a stroke of at least one-half inch. The letters and background shall be of contrasting colors. 5. Every person who shall write any auto body repair estimate on behalf of a motor vehicle repair shop, whether registered or not, must hold a valid estimator's license for such purpose issued by the commissioner. The form and manner of applying for such license shall be prescribed by regulation to be promulgated by the commissioner. The commissioner shall in the commissioner's discretion establish criteria for the issuing of such license. Each application for the license required hereunder shall be accompanied by an application fee of twenty-five dollars which shall in no event be refunded. If an application is approved by the commissioner, upon payment by the applicant of the additional fee of one hundred fifty dollars, the applicant shall be granted such license which shall be valid for a period of three years. The renewal fee for any license issued pursuant to this subdivision shall be one hundred fifty dollars. 5-a. All the provisions of section three hundred ninety-eight-f of article twelve-A of this chapter shall apply to the provisions of subdivision five of this section with the same force and effect as if the language of those provisions had been incorporated in full into subdivision five of this section and had expressly referred to the term collision estimator licensee, except that the term "certificate of registration" shall be read as "estimator's license" and the term "registrant" as "licensee". 6. (a) In addition to the requirements of subdivision one of this section, if an inflatable restraint system is replaced, the motor vehicle repair shop shall state on the repair invoice the name and tax identification number from whom such replacement inflatable restraint system was purchased. The vehicle repair shop shall, in the case of any salvaged inflatable restraint system installed, also state on the repair invoice the vehicle dismantler's registration number, the vehicle identification number of the vehicle from which the inflatable restraint system was salvaged and the part number of the salvaged inflatable restraint system. The insurer and the consumer shall receive a copy of the purchase invoice for such replacement inflatable restraint systems. (b) An inflatable system which has been activated in a crash or stolen shall be replaced only with an inflatable restraint system newly manufactured for first-time use. (c) Notwithstanding the provisions of paragraph (b) of this subdivision, an inflatable restraint system may be replaced by one salvaged and sold by a vehicle dismantler registered pursuant to section four hundred fifteen-a of this chapter, provided, however, that the salvaged inflatable restraint system has been sold in accordance with the provisions of section four hundred fifteen-c of this chapter. (d) Notwithstanding any other provisions of law to the contrary, a consumer has the right to seek installation of a salvaged inflatable restraint system as provided in paragraph (c) of this subdivision, provided however, nothing shall require any facility to install a salvaged inflatable restraint system. A salvage installation shall only be done with the specific authorization of the customer. The invoice must prominently state, "Salvage inflatable restraint system." No other terms such as "used" or "as is" shall be used. The invoice must clearly state the terms of the warranty or guarantee, if given, or state "No warranty or guarantee given." A salvaged inflatable restraint system must be of the exact same type as the unit with which the vehicle was originally equipped. (e) On and after March first, nineteen hundred ninety-nine, in no case shall any inflatable restraint system be replaced with anything other than a newly manufactured inflatable restraint system or a salvaged inflatable restraint system certified according to standards established by a nationally recognized testing, engineering and research body as provided for in subdivision two of section four hundred fifteen-c of this chapter. 7. Each motor vehicle repair shop which either removes or installs inflatable restraint systems shall maintain a log book containing the following information: (a) the date of installation, (b) the vehicle identification number, license plate number, and make and model of the repaired vehicle, (c) the replacement inflatable restraint system's part number, (d) in the case of a salvaged inflatable restraint system, (1) the vehicle identification number of the vehicle from which the replacement inflatable restraint system was salvaged, and (2) the name, tax identification number, and registration number of the automobile dismantler from whom such salvaged inflatable restraint system was purchased, (e) in the case of a new replacement inflatable restraint system, the name and tax identification number of the supplier. Such records shall be maintained in a manner and form prescribed by the commissioner. Upon request of an agent of the commissioner or of any police officer and during its regular and usual business hours, the motor vehicle repair shop shall produce such records and permit said agent or police officer to examine them. S 398-e. Suspension, revocation or refusal to issue registration; civil penalty; restitution; surrender of certificate of registration. 1. Suspension, revocation or refusal to issue registration or license. The commissioner, or any person deputized by him, may deny the application of any person for a certificate of registration or estimator's license and may suspend or revoke the registration of any motor vehicle repair shop or any estimator's license issued pursuant to this article or refuse to issue a renewal thereof if he determines that such applicant, registrant or licensee: (a) has made a material false statement or concealed a material fact in connection with his application; (b) was the former holder of a certificate of registration issued hereunder which was revoked or suspended by the commissioner; (c) was, or that any officer, director, partner or stockholder holding more than ten percent of the outstanding stock was an officer, director, partner or stockholder holding more than ten percent of the outstanding stock in a corporation or partnership, as the case may be, which was the former holder of a certificate of registration issued hereunder which was revoked or suspended by the commissioner; (d) has failed to furnish satisfactory evidence of good character, reputation and fitness; (e) does not have a place of business as required by this article; (f) is not the true owner of the repair shop, except in the case of a franchise; (g) has been guilty of fraud or fraudulent or deceptive practices; (h) has been grossly negligent on two or more occasions within a period of two years in the performance of any repair or adjustment covered by this article, or has grossly overcharged on two or more occasions within a period of two years for such repair or adjustment; (i) has wilfully failed to comply with any of the provisions of this article or the rules and regulations of the commissioner promulgated hereunder; (j) has knowingly issued a false or misleading estimate; or (k) has engaged in a course of conduct which unreasonably impedes or delays a consumer's right to a fair recovery pursuant to the provisions of an automobile insurance policy, the insurance law or regulations issued by the superintendent of financial services governing the evaluation and adjustments of claims. For the purposes of paragraphs (g), (h), (i), (j) and (k) of this subdivision, it shall be presumed that the actions of any employee of a motor vehicle repair shop shall be attributable to, and deemed to be the actions of, such motor vehicle repair shop. 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) 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 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. (c) Upon the failure of a registrant or an unregistered repair shop to pay such penalty, or, where the order so permits, 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, 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. 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. However, a finding of financial loss shall only be made if the complainant (i) agrees to accept the amount so 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, in order for the registrant or unregistered repair shop to exercise the option to make such payment, 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 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, and the registrant or unregistered repair shop does not exercise the option to make such payment, the civil penalty becomes 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. 4. Surrender of certificate of registration. Upon the suspension or revocation of a certificate of registration by the commissioner and the issuance of notice thereof, the registrant shall immediately deliver the certificate of registration to the commissioner or to any peace officer, acting pursuant to his special duties, or police officer directed by the commissioner to secure possession thereof, or agent of the commissioner, displaying authorization to act in such capacity along with a certified copy of the order revoking or suspending such registration, and the failure to so deliver the certificate within thirty days shall constitute a traffic infraction and shall be punishable in the manner provided in section eighteen hundred of this chapter. S 398-f. Hearings; review board; appeals; judicial review. 1. Hearings. (a) Upon the denial of an application for a certificate of registration, the applicant shall, upon written request made within thirty days after the applicant is notified of such denial, be entitled to a hearing before an officer or employee of the department designated for such purpose by the commissioner. (b) No certificate of registration shall be suspended or revoked, penalty imposed or determination of gross negligence or gross overcharging made as provided for pursuant to paragraph (h) of subdivision one of section three hundred ninety-eight-e of this article, until such registrant shall have been given the opportunity to be heard, upon written notice to the registrant, before an officer or employee of the department designated for such purpose by the commissioner, provided, however, that where a notice of hearing is mailed to a registrant at the address shown in the records of the department and such registrant fails to attend such hearing, the commissioner may suspend such registration pending the registrants attendance at such hearing. Requests for adjournment of such hearings shall be granted in accordance with regulations promulgated by the commissioner. A suspension pending attendance at a hearing shall not be appealable. (c) The commissioner acting by such officer or employee in the department as he may designate, shall have the power to subpoena and bring before such officer or employee so designated any person in this state, or document, record or other relevant evidence, and administer an oath to and take the testimony of any such person or cause his deposition to be taken. A subpoena issued pursuant to this action shall be regulated by the civil practice law and rules. (d) In the event a certificate of registration is revoked or an application is denied, no such certificate shall be issued to such former registrant or applicant for at least six months, nor thereafter, except in the discretion of the commissioner. 2. Review board. The commissioner shall establish a review board. Such board shall consist of persons who have been engaged in the automotive repair shop business for at least five years representing the automobile repair shop industry, persons who shall be laymen having no association with the automotive repair shop industry representing consumers, and persons who are attorneys admitted to practice in this state and who have no interest in or represent as an attorney an automotive repair shop. Members of the review board shall be appointed insofar as is practicable to provide for representation of different geographic areas of the state, and shall serve in no other capacity in the department of motor vehicles. The number of persons appointed to such review board shall be determined by the commissioner and shall be appointed to serve at his pleasure. Three persons, one of whom shall be automotive repair shop industry representatives, one of whom shall be consumer representatives, and one of whom shall be an attorney appointed pursuant to the provisions of this subdivision, shall as a panel review each appeal from a determination of the hearing officer. Such attorney shall serve as the chairman of such panel with respect to any such review. Members of the review board shall be entitled to their actual and necessary expenses incurred in the performance of their duties thereunder, and shall be entitled to a per diem allowance as determined by the commissioner and approved by the director of the division of the budget not to exceed one hundred dollars except that those members who serve as the chairman of a panel at appeal proceedings may be entitled to a per diem allowance in an amount so determined and approved but not exceeding one hundred fifty dollars. 3. Appeals. (a) The review board will review and determine all appeals filed pursuant to this article. Such determination may be to affirm, reverse or modify the initial determination of the hearing officer, or to remand the case for a further hearing to determine additional facts. Any review by such board shall be based solely on the record upon which the initial determination is made and upon any written brief which may be submitted by or on behalf of the applicant or registrant. (b) (1) Whenever a certificate of registration is suspended or revoked, an application for such registration denied, determination of gross negligence or gross overcharging made, the sealing of a premises ordered or penalty imposed by the commissioner pursuant to this article, except where such action is required by statute based upon a conviction, the registrant, applicant, or owner of the premises as such term is defined in paragraph (a) of subdivision five-a of section three hundred ninety-eight-i of this article may appeal such determination pursuant to the provisions of this article and such regulations as may be promulgated by the commissioner. (2) No appeal shall be reviewed unless it is submitted within sixty days after written notice of the determination appealed from is mailed to the registrant or applicant. (3) Any person desiring to appeal pursuant to this article shall do so in a form and manner as provided by regulations promulgated by the commissioner. The transcript of any hearing will only be reviewed if it is submitted by the appellant who shall bear the expense of furnishing such transcript. (4) The fee for filing an appeal shall be ten dollars. No appeal shall be deemed filed or submitted unless any required fee has been paid. (5) The submission of a written request to file such an appeal shall stay the operation of the initial determination until after a review is had and a determination has been made; provided, however, that failure to timely submit such appeal and comply with the provisions of this subdivision shall remove the stay imposed by this paragraph. Such review shall be made and decided as expeditiously as possible; provided that an appeal of an order directing the sealing of the premises pursuant to subdivision five-a of section three hundred ninety-eight-i of this article shall, to the extent possible, be given priority over all other appeals filed pursuant to this article. (c) Whenever the same facts give rise to a hearing involving any other license or registration issued by the commissioner, a combined hearing may be held. If the registrant appeals only from a determination made with respect to his repair shop registration, he shall be entitled to a review as provided in subdivision one of this section; however, if he appeals from any determination or determinations made with respect to any other license or registration, as well as a determination with respect to his repair shop registration, the appeals procedure established in article three-A of this chapter shall be followed in lieu of the procedure established in subdivision three of this section. 4. Judicial review. The determination of the review board shall be subject to review by the supreme court in the manner provided in article seventy-eight of the civil practice law and rules. S 398-g. Powers of the commissioner. 1. In addition to the powers and duties specified elsewhere in this article, the commissioner, upon any complaint or upon his own initiative, shall have the power to make and conduct such investigations as he deems proper to effectuate the purposes of this article. The commissioner may establish, by rule or regulation, criteria upon which the necessity for investigation of complaints shall be determined. Such criteria may include but not be limited to the alleged financial loss to the complainant, the indication of a recurring incidence of fraud or deceptive practices, or the essential nature of the service provided to the safe operation of the vehicle. The commissioner shall also have the power to assist in the settlement of disputes between complainants and registrants. In any such case in which a settlement is reached, a report of the facts, shall be included in the registrant's record. The provisions of section three hundred ninety-eight-f relating to the required attendance of registrants and the power to subpoena shall apply to any investigation conducted pursuant to this section. 2. The commissioner shall prescribe such rules and regulations as he shall deem necessary to effectuate the purposes of this article including but not limited to, standards for personnel, equipment and facilities. S 398-h. Separability clause. If any part or provision of this article or the application thereof to any person or circumstances be adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision or application directly involved in the controversy in which such judgment shall have been rendered and shall not affect or impair the validity of the remainder of this article or the application thereof to other persons or circumstances. S 398-i. Unregistered operation; procedures and penalties. 1. The commissioner or any person deputized by him shall hear and determine any allegation that a person has operated a repair shop without being registered as required by subdivision one of section three hundred ninety-eight-c of this chapter. Upon a determination that a person has so operated, the commissioner or person deputized by him shall assess civil penalties as provided in subdivisions two and three of this section. 2. Except as provided in subdivision three, any person who operates a repair shop without being registered shall be required to pay to the people of this state a civil penalty in the sum of one thousand dollars. However, any such person against whom such penalty has been assessed may avoid all but five hundred dollars of such penalty by obtaining a registration as required by this article, provided that application for such registration is made not more than ten days after the imposition of such penalty. 3. (a) Any person who operates a repair shop while his repair shop registration is revoked or suspended, shall pay to the people of this state a civil penalty in the sum of one thousand dollars. Such civil penalty may not be avoided. (b) Any person who operates a repair shop without being registered as required by subdivision one of section three hundred ninety-eight-c of this chapter who has previously had a civil penalty assessed for unregistered operation shall pay to the people of this state a civil penalty in the sum of one thousand dollars. Such civil penalty may not be avoided. 4. (a) If it is determined that a person has operated a repair shop without being registered as required by this article, such determination may be appealed to the review board established pursuant to section three hundred ninety-eight-f of this chapter. The procedure established in such section shall apply to such appeals provided that no appeal shall be accepted or determined by the review board unless the civil penalty assessed against such person has been paid as prescribed in subdivision two of this section. (b) The requirement that the civil penalty be paid before an appeal can be accepted or determined by the review board shall not apply to an appeal by a repair shop from a determination made pursuant to subdivision three of this section. (c) If the review board finds that the person has not been operating a repair shop without being registered, any civil penalty which has been paid shall be refunded, any premises ordered to be sealed pursuant to subdivision five-a of this section shall be unsealed, and if such board determines that registration as a repair shop is not required and a registration has been obtained to avoid the civil penalty assessed, the registration shall be cancelled and, notwithstanding the provisions of paragraph (a) of subdivision three of section three hundred ninety-eight-c of this chapter, all fees paid for such registration shall be refunded. 5. Civil penalties assessed under this section shall be paid to the commissioner for deposit into the state treasury, and unpaid civil penalties may be recovered by the commissioner in a civil action in the name of the commissioner. 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. 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. 5-a. Sealing of the premises. (a) In addition to any other penalties set forth in this article, the commissioner, after notice to the owner of the premises and the owner of the motor vehicle repair shop and the opportunity for a hearing, shall be authorized to (i) order the sealing of the premises upon which any person has operated a motor vehicle repair shop without being registered, provided that such premises is primarily used for such activity and provided, further, that the commissioner shall not seal any dwelling unit or other space lawfully used solely for residential purposes; (ii) order that any devices, items or goods utilized in the operation of a motor vehicle repair shop and relating to such activity for which a registration for operation is required but has not been obtained pursuant to the provisions of this article shall be removed, sealed or otherwise made inoperable; and (iii) order the removal of motor vehicles on the premises to a garage, pound or other place of safety. For purposes of this article, the term "owner of the premises" shall mean the owner, lessor, lessee or mortgagee of the building, erection or place wherein any person is operating an unregistered motor vehicle repair shop. The person in whose name the real estate affected by the orders of the commissioner is recorded in the office of the city register or the county clerk, as the case may be, shall be presumed to be the owner thereof. (b) The lack of knowledge of, acquiescence or participation in or responsibility for, the operation of an unregistered motor vehicle repair shop, on the part of the owner of the premises and/or the owner of the motor vehicle repair shop, shall not be a defense by such owners. (c) Orders of the commissioner issued pursuant to paragraph (a) of this subdivision shall be conspicuously posted at the premises upon which unlawful operation occurred. (d) An order of the commissioner issued pursuant to paragraph (a) of this subdivision shall be stayed with respect to any person who, prior to service of the notice required by such paragraph, has submitted a complete application, in proper form and accompanied by the requisite fee, for a certificate of registration to operate a motor vehicle repair shop or a renewal thereof, while the application is pending. (e) Ten days after the posting of an order issued pursuant to paragraph (a) of this subdivision, and upon the written directive of the commissioner, officers and employees of the department and police officers of any appropriate law enforcement agency shall be authorized to act upon and enforce such order. The commissioner may take such steps as are lawful and necessary to prevent the removal from the premises of any devices, items, goods or personal property used in the conduct of a motor vehicle repair shop business during such ten day period. (f) (i) Any devices, items, goods or motor vehicles removed pursuant to the provisions of subparagraphs (ii) and (iii) of paragraph (a) of this subdivision shall be stored in a garage, pound or other place of safety and the owner or other person lawfully entitled to the possession of such devices, items, goods or motor vehicles may be charged with reasonable costs for removal and storage payable prior to the release of such devices, items, goods or motor vehicles to such owner or such other person. (ii) The commissioner shall, by first class mail, notify the registered owner of any motor vehicle removed pursuant to subparagraph (iii) of paragraph (a) of this subdivision within five business days of the removal, of the location of such motor vehicle and the actions necessary to recover such motor vehicle. (iii) The owner or other person lawfully entitled to reclaim the devices, items, goods or motor vehicles removed pursuant to this section shall reclaim such devices, items, goods or motor vehicles within ninety days of their removal, or such devices, items, goods or motor vehicles shall be subject to forfeiture upon notice and judicial determination in accordance with the provisions of law. Upon forfeiture the commissioner shall, upon a public notice of at least five days, sell such forfeited devices, items, goods or motor vehicles at public sale. The net proceeds of such sale, after deduction of the lawful expenses incurred, shall be paid into the general fund. (iv) Lessors of devices, items, goods or personal property removed pursuant to the provisions of subparagraph (ii) of paragraph (a) of this subdivision may reclaim leased devices, items, goods or personal property upon presentment of proof that the lessor is not otherwise involved, directly or indirectly, in the ownership or operation of such motor vehicle repair shop and that the lessee is in breach of the lease or in default of payments, and upon payment of any reasonable costs imposed for the removal and storage of such devices, items, goods or personal property pursuant to this subdivision. (g) The commissioner shall order any premises which are sealed pursuant to paragraph (a) of this subdivision to be unsealed upon: (i) payment of any and all fines, penalties and restitution; and (ii) presentment of proof that the required registration has been obtained for operation of a motor vehicle repair shop on the premises, or proof satisfactory to the commissioner, submitted by the owner of the premises, that such premises will not be used in violation of this article. (h) In addition to any fines, penalties or actions taken with respect to a motor vehicle repair shop and the persons operating, providing equipment or otherwise involved in the operations of such shop, the commissioner may also take action with respect to the owner of the premises where such shop has operated or is operating as provided in this paragraph. Upon a finding by the commissioner, after notice and the opportunity for a hearing, that an unregistered motor vehicle repair shop has been operated at the same premises on two or more separate occasions within eighteen months resulting in two or more separate determinations by the commissioner of a violation of this section with respect to such premises, and that the owner of the premises knowingly allowed such operation, the commissioner may impose upon such owner of the premises a civil penalty in an amount not to exceed fifteen thousand dollars, or may order the sealing of the premises for not more than one hundred eighty days, or both such actions. (i) Nothing contained herein shall be construed to authorize the commissioner to execute an order issued pursuant to this subdivision without the presence and assistance of a police officer of an appropriate law enforcement agency. (j) Removal of the seal on any premises sealed pursuant to the provisions of this subdivision shall constitute a misdemeanor. 6. No allegation of unregistered operation as a repair shop shall be heard or determined unless notice of such allegation has been mailed to such person within two years after the date of the alleged unregistered operation. S 398-k. Improper display of signs. 1. The holder of a repair shop registration shall remove or cause to be removed any sign which contains the registration number of the station which is visible to the public and which is required to be displayed by this article or regulations promulgated thereunder if the registration is revoked or suspended or the repair shop is out of business. If the registration is only suspended, the holder may cover up the sign instead of removing it. 2. No person shall permit the display of any sign required to be displayed by this article or regulations promulgated thereunder indicating to the public that an official repair shop is operating unless a repair shop registration has been issued to that person and is currently valid. Top of Page
The laws of the State of New York are consistently amended, repealed and/or entirely rewritten. This site strives to publish the current laws; however, official reporters should be consulted for the most up-to-date statutory language. No warranties, express or implied, or representations as to the accuracy of content on this website are made. This website and its owners assume no liability or responsibility for any error or omission in the information contained in the website or the operation of the website.