BILL NUMBER: S4230
SPONSOR: COMRIE
 
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:
2024: S3015 Comrie/ A6229 Weprin
S5842 2022
S 8629 COMRIE Same as A /50 Weprin
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the first of November next succeeding the
date of enactment.