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a. A second-hand automobile dealer shall maintain a physical or electronic copy of each of the following documents relating to the sale of a second-hand automobile for six years after the date of execution by the consumer of such documents:
1. The buyer's order, bill of sale, any retail installment contract, and any document incorporated by reference into the bill of sale or retail installment contract;
2. Every document signed or initialed by the consumer in connection with the sale transaction;
3. Every written disclosure provided to, and signed or initialed by, the consumer pursuant to this subchapter;
4. Each signed automobile contract cancellation option document, whether accepted or declined by the consumer; and
5. Each signed document cancelling a sales contract or declining to cancel a sales contract pursuant to an automobile contract cancellation option.
b. The department may inspect and audit all records required to be maintained pursuant to this section.
c. A second-hand automobile dealer shall maintain a report on consumer use of automobile contract cancellation options in a format to be prescribed by the commissioner by rule. The report shall be made available upon request of the commissioner but in no instance shall such request be made more than once annually. The report shall include:
1. The total number of consumers that accepted an automobile contract cancellation option in connection with their second-hand automobile purchase; and
2. The total number of consumers that canceled their second-hand automobile sales contracts pursuant to an automobile contract cancellation option.
(L.L. 2017/197, 10/16/2017, eff. 2/13/2018)
The commissioner may submit to the council and the mayor a report of legislative recommendations on the regulation of the second-hand automobile dealer industry. Such report, should the commissioner elect to submit it, may address (i) whether it is advisable to create additional enforcement tools to promote compliance with sections 20-268.1, 20-268.2, 20-268.3, 20-268.4 and 20-268.5 by licensees; (ii) the effect such sections have had on the prevalence of predatory practices in the second-hand automobile dealer industry; (iii) whether new predatory practices have emerged in the second-hand automobile dealer industry; (iv) whether additional disclosure or reporting requirements for second-hand automobile dealers would mitigate consumer harm; and (v) the effectiveness of the department's outreach and education efforts in this area.
(L.L. 2017/197, 10/16/2017, eff. 2/13/2018)
a. Before any dealer in second-hand articles as defined by this subchapter, other than a vehicle dismantler, as defined in section 415-a of the vehicle and traffic law, purchases a second-hand catalytic converter, such dealer must obtain from the seller the following information:
1. The year, make, model and vehicle identification number for the vehicle from which the second-hand catalytic converter was removed;
2. A copy of the certificate of title or other documentation indicating that the seller has an ownership interest in the vehicle described in paragraph 1, or where the seller is the owner of a motor vehicle repair shop, as defined in section 398-b of the vehicle and traffic law, and the second-hand catalytic converter was removed by such owner in connection with a repair of the vehicle, the name and address of the owner of such vehicle and copies of all invoices related to such repair; and
3. The unique identifying number of the second-hand catalytic converter, if any.
b. Such dealer must determine that the second-hand catalytic converter is consistent with the manufacturer's specifications for a catalytic converter from the vehicle identified in the information provided pursuant to subdivision a and must document such determination.
c. Such dealer shall maintain an electronic record of the information provided pursuant to subdivision a for a minimum of six years from the date of the purchase of the second-hand catalytic converter. Such electronic record shall be created by the dealer at the time of each transaction. Such electronic record shall be maintained in a manner to be specified in rules of the police commissioner, which may include the real-time sharing or accessing of such records in an electronic format and/or through use of an internet website designated by the police commissioner. Such records shall be open to the inspection of officers and employees of the department and officers of the fire department or the police department during regular and usual business hours.
(L.L. 2022/123, 12/23/2022, eff. 4/22/2023)
The occurrence, as reported by the fire commissioner pursuant to subdivision c of section 27-4249 of the code, of more than two fires during any twelve-month period at a location operated for the salvage, dumping or wrecking of automobiles or parts thereof by a person licensed pursuant to this subchapter, shall be considered by the commissioner as prima facie evidence of the existence of a continuous danger to public health and safety and shall be grounds for the suspension or revocation of said license.
Every person licensed as a dealer in second-hand articles, who also sells new articles within the licensed premises, shall have a sign of not less than two hundred sixteen square inches with letters thereon not less than two inches in height prominently displayed within the department or area where said articles are sold, informing the public that new articles and second-hand articles are sold within said department or area.
a. Every person licensed as a dealer in second-hand articles, who also sells new articles within the licensed premises, shall label all second-hand articles in such manner that the public will be informed that such articles are not new.
b. Every person required to be licensed as a second-hand automobile dealer pursuant to section 20-265 of this subchapter, who sells second-hand automobiles at retail, shall clearly and conspicuously post:
1. the total selling price, which shall include any administrative, service or other fee charged by the second-hand automobile dealer exclusive of all taxes and fees for securing a registration or certificate of title, of each second-hand automobile offered for sale at his or her place of business, by means of a sign on the dashboard of each such automobile or by means of a sign at the point of display of each such automobile; and
2. the total selling price of any add-on product offered for sale by means of a sign at the point of display of the second-hand automobile for which such product is available for purchase or at each location within the dealer's place of business where any such product is offered for sale. Such sign shall inform consumers that the purchase of any add-on product is optional and that the purchase of an add-on product is not required to obtain financing.
c. Nothing in this section shall prevent a second-hand automobile dealer from selling a second-hand automobile or an add-on product at a lower selling price than the price posted pursuant to subdivision b of this section.
d. 1. Any person who violates subdivision b of this section or any rule or regulation issued thereunder shall be subject to a civil penalty of not more than:
(a) five hundred dollars for the first violation;
(b) seven hundred and fifty dollars for the second violation committed within one year of the first violation; and
(c) one thousand dollars for the third or any subsequent violation committed within one year of the first violation.
2. For purposes of assessing penalties in accordance with this subdivision, all violations committed by the same dealer on the same day shall count as one violation.
(Am. L.L. 2015/044, 5/18/2015, eff. 9/15/2015; Am. L.L. 2017/197, 10/16/2017, eff. 2/13/2018)
a. If any goods or articles shall be advertised in any newspaper printed in the city as having been lost or stolen, and if any goods or articles answering such advertised description or any part thereof, shall be in or come into the possession of any dealer in second-hand articles, upon receiving written or oral notice to do so, such dealer shall give information thereof in writing to the police commissioner.
b. Every dealer in second-hand articles who shall have or receive any goods, or articles lost or stolen, or alleged or supposed to have been lost or stolen, shall exhibit the same, on demand, to the commissioner or departmental inspector, or to any judge of the criminal court, to any police officer, or to any person, duly authorized in writing by the commissioner or by any judge of the criminal court, who shall exhibit such written authority to the dealer.
a. Subject to the provisions of subdivisions b and c of this section, every dealer in second-hand articles shall keep a written record of transactions that shall be legible and written in English. At the time of every purchase and at the time of every sale, every dealer in second-hand articles shall enter in such written record a description of every article so purchased or sold, the number or numbers and any monograms, inscription or other marks of identification that may appear on such article, a description of the articles or pieces comprising old gold, silver, platinum, or other metals, and any monogram, inscription or marks of identification thereon, the name, residence and general description of the person from whom such purchase was made or to whom sold and the day and hour of the purchase or sale.
b. In addition to maintaining written records in accordance with subdivision a of this section, every dealer in second-hand articles that deals in the purchase or sale of any second-hand manufactured article composed wholly or in part of gold, silver, platinum, or other precious metals, or deals in the purchase or sale of any old gold, silver, platinum or other precious metals, or deals in the purchase of articles or things comprised of gold, silver, platinum or other precious metals for the purpose of melting or refining, or deals in the purchase or sale of used electrical appliances excluding kitchen appliances, or deals in the purchase or sale of any used electronic equipment, computers or component parts of electronic equipment or computers, shall with respect to such transactions create an electronic record in English, in a manner to be specified by the police commissioner by rule. Such electronic record may include real-time sharing or accessing of such records in an electronic format and/or through use of an internet website designated by the police commissioner. Such electronic record shall be retained for a minimum period of six years from the date of purchase or sale. Such electronic record shall be created by the dealer at the time of each transaction and shall include the following information: (i) date, time, and location of transaction; and (ii) an accurate description of each article purchased or sold, including the type of article, manufacturer, make, model or serial number, inscriptions or distinguishing marks. Such electronic record may include one or more digital photographs reasonably capturing the likeness of the article, provided in a format or in accordance with specifications as provided by rule of the police commissioner in furtherance of the purposes of this subchapter.
c. In the case of a dealer in second-hand articles who deals in the purchase or sale of pawnbroker tickets or other evidence of pledged articles or the redemption or sale of pledged articles and who is not subject to the provisions of section 20-277 of this chapter:
1. Every dealer shall at the time of such purchase, sale or redemption, include the following information in the written record kept pursuant to subdivision a of this section:
(i) The name and address of the person who issued such ticket or other evidence;
(ii) The pledge number of such pawn ticket or other evidence;
(iii) The name and address of the pledgor as it appears upon such pawn ticket or other evidence;
(iv) The amount loaned or advanced as it appears on such pawn ticket or other evidence;
(v) The day and hour of such purchase, sale or redemption, as the case may be;
(vi) The name, residence and general description of the person from whom or to whom the redeemed article is purchased or sold, as the case may be;
(vii) The sum paid or received for such pawn ticket or other evidence, or the sum paid or received for the redeemed article or pledge; and
(viii) Such description of a pledged article as appears on such pawn ticket or other evidence and an accurate description of every redeemed pledged article.
2. Every dealer shall with respect to such transactions also create an electronic record in English, in a manner to be specified by the police commissioner by rule. Such electronic record may include real-time sharing or accessing of such records in an electronic format and/or through use of an internet website designated by the police commissioner. Such electronic record shall be retained for a minimum period of six years from the date of purchase or sale. Such electronic record shall be created by the dealer at the time of purchase, sale or redemption and shall include the information specified in subparagraphs (i), (ii), (iv), (v), (vii) and (viii) of paragraph one of this subdivision and one or more digital photographs reasonably capturing the likeness of the article, provided in a format or in accordance with specifications as provided by rule of the police commissioner in furtherance of the purposes of this subchapter.
d. In the case of a sale or other disposal of a motor vehicle, motor cycle or motor thereof, the dealer in second-hand articles shall, in addition to any other entry required by subdivision a of this section, enter in such permanent record the vehicle identification number of said motor vehicle, motor cycle or motor, the manner in which said motor vehicle, motor cycle or motor was removed from the premises, giving the name, address and date of birth of the person who removes it, the driver's license number of such person and state of issuance if such person possessed a driver's license, the motor vehicle registration number of any vehicle used to tow, remove or transport such motor vehicle, motor cycle or motor, and the destination to which the motor vehicle, motor cycle or motor is being removed.
e. The records required by this section, including any electronic records pursuant to subdivisions b and c, shall be open to the inspection of any police officer, the commissioner or any departmental inspector, judge of the criminal court, or person duly authorized in writing for such purposes by the commissioner or by any judge of the criminal court, who shall exhibit such written authority to the dealer. Such records shall also be open to the inspection of any official or other person identified in, or duly authorized in writing pursuant to, any other applicable state or local law.
f. A dealer in second-hand articles subject to the provisions of subdivisions b or c of this section shall acquire and maintain in good working order the electronic equipment necessary to create and maintain the electronic records required by this section, including but not limited to a computer with internet connection and a digital camera utilizing a file format designated by the police commissioner.
g. Nothing in this section shall be construed to affect or supersede any recordkeeping requirement imposed by or pursuant to any other applicable federal, state or local law.
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 2006/039.
a. Any person who violates any of the provisions of this subchapter or any rule or regulation issued thereunder shall be guilty of a class A misdemeanor and upon the first conviction be subject to a fine of at least $500 and upon any subsequent conviction be subject to a fine of $1,000, imprisonment of at least 15 days, or both; except that any person who violates subdivision h of section 20-268 shall be subject to a fine of: (i) one thousand dollars for the first offense; (ii) one thousand dollars and/or imprisonment of at least fifteen days for any subsequent offense committed within three years of the first offense; and (iii) shall be subject to suspension or revocation of his or her secondhand automobile license at the discretion of the commissioner for any subsequent violations within such three year period. For purposes of this subdivision, each automobile sold in violation of subdivision h of section 20-268 shall count as a separate offense.
b. Except as otherwise provided in this subchapter, any person who violates any of the provisions of this subchapter or any rule or regulation issued thereunder shall be subject to a civil penalty of $175 for the first violation, $300 for the second violation and $500 for the third and any subsequent violation; except that a person shall not be subject to such civil penalty for a first-time violation of section 20-270 or 20-271 of this subchapter or any rule or regulation issued thereunder, if such person proves to the satisfaction of the department, within 30 days of the issuance of the notice of violation and prior to the commencement of an adjudication of the violation, that the violation has been cured. The submission of proof of a cure, if accepted by the department as proof that the violation has been cured, shall be deemed an admission of liability for all purposes. The option of presenting proof that the violation has been cured shall be offered as part of any settlement offer made by the department to a person who has received, for the first time, a notice of violation of section 20-270 or section 20-271 of this subchapter or any rule or regulation issued thereunder. The department shall permit such proof to be submitted electronically or in person. A person may seek review, in the department's administrative tribunal, of the determination that the person has not submitted proof of a cure within 15 days of receiving written notification of such determination.
d. The commissioner may suspend or revoke a second-hand automobile dealer license if the licensee violates section 20-268.1, 20-268.2, 20-268.3, 20-268.4, 20-268.5, 20-268.7, or 20-271 or any rule or regulation issued thereunder, provided, however, that the commissioner shall suspend or revoke a second-hand automobile dealer license upon the third violation by the licensee within three years of the first violation.
e. The commissioner may order a second-hand automobile dealer to pay to a consumer up to 10% of the full refund amount owed the consumer per day for each day that the dealer fails to cancel the sales contract and provide such refund to the consumer in violation of subdivision e of section 20-268.2. In determining whether to order such payment and the amount of such payment, the commissioner shall consider, but is not limited to, the following factors:
1. Any prior violation of subdivision e of section 20-268.2 by such dealer;
2. Any justification offered by the dealer for the delay in canceling the sales contract and providing such refund;
3. The extent of the delay; and
4. Any particular harm suffered by the consumer as a result of the delay.
(Am. L.L. 2015/044, 5/18/2015, eff. 9/15/2015; Am. L.L. 2017/085, 5/30/2017, eff. 9/27/2017; Am. L.L. 2017/197, 10/16/2017, eff. 2/13/2018; Am. L.L. 2021/080, 7/18/2021, eff. 11/15/2021; Am. L.L. 2022/123, 12/23/2022, eff. 4/22/2023)
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 2013/153 and L.L. 2021/080.
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