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terest in the marketing of motor vehicles or services related thereto at
wholesale, retail, by lease or otherwise and/or pursuant to which
franchised motor vehicle dealer purchases and resells or offers (as
agent, principal, or otherwise) products associated with the
mark or related components of the franchise.
8. "Franchisor"

any manufacturer, distributor, distributor
branch or factory, branch, importer or other person, partnership, cor-
poration, association, entity, whether resident or non-resident,
which enters into or is presently party to a franchise with
franchised motor vehicle dealer.

§ 4. Paragraph (k) of subdivision 2 of section 463 of the vehicle and traffic law, as amended by chapter 3 of the laws of 1984, is amended to read as follows:

(k) To unreasonably withhold consent to the sale or transfer of an interest, in whole or in part, to any other person

party by any franchised motor vehicle dealer or any partner or stockholder of any franchised motor vehicle dealer. If such consent to sale

transfer
shall be withheld by the franchisor, the franchisor shall provide spe-
cific reasons for its withholding of consent within sixty days of
receipt of the request for such consent provided such request is accom-
panied by proper documentation as may reasonably be required by the
franchisor. Upon receipt of notice and reasons for the franchisor's
withholding of consent, the franchised motor vehicle dealer may within
(sixty] one hundred 'twenty days have a review of the manufacturer's
decision as provided in section four hundred sixty-nine of this article.

$2,5. Paragraph (0) of subdivision 2 of section 463 of the vehicle and
traffic law, as added by chapter 815 of the laws of 1983, is amended to
read as follows:

(0) (1) Upon a termination, cancellation or nonrenewal of a franchise
by a franchisor or franchised' motor vehicle dealer under this article,
to refuse to accept a return of new and unused current model motor vehic
cle inventory which has been acquired from the franchisor,

and
ụnused noncurrent model motor vehicle inventory which has been acquired
from the franchisor within one hundred twenty days of the effective date
of the termination, cancellation or nonrenewal; supplies, parts, equip-
ment and furnishings purchased from the franchisor 'its approved
sources and special tools.
limited to the repurchase of the above property which is
The obligation of the franchisor shall be

unaltered and
undamaged,

in good and useable condition, and, in the case of supplies, parts and equipment to those items which are currently listed in the franchisor's supplies and parts list. Furthermore, the obligation of the franchisor to repurchase supplies upon a

termination, cancellation nonrenewal by a franchised motor vehicle dealer shall be limited to sup; plies mandated by the franchisor.

Parts eligible for repurchase shall
include parts which have been renumbered in the current parts list but
which are identical in design and material to

the currently numbered
der the provisions of the paragraph shall be in addition
Partih The return rights afforded the franchised motor vehicle dealer un-

to

those, if (3) The franchisor shall pay fair and reasonable compensation for the abové described property upon repurchase. In the case of new motor vehiskrancia no instance be less than the net acquisition price paid by the approved sources. Upon a termination, cancellation or

vehicle dealer to the franchisor or its

nonrenewal of
franchisor,
cancellation or nonrenewal, the franchisor shall send to the

thirty days of such termination,

franchised

by which the franchised motor vehicle dealer must ship the above described

property
preoperty to the franchised motor vehicle dealer within sixty days after

and upon a termination, cancellation or nonrenewal of a franchise by a
chase obligations set forth in this paragraph shall not apply.
efasthe distribution and sale of househ coaches, the franchisor's repur-
feaffic law, as added by chapters 115 28°the laws of 1983, is amended

and
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(p) TO refuse to repurchase for cost, including, transportation charges, a new vehicle which has

substantially damaged by the franchisor or its agent; or to sell or transfer to a franchised motor vehicle dealer a new motor vehicle which has been subjected to repairs with a retail value in

of five percent of the lesser of the manufacturer's distributor's, suggested retail price where such repairs

performed after shipment from the franchisor including damage to the vehicle while in transit without notifying the franchised motor vehicle dealer

to whom such new motor vehicle so repaired is sold or transferred. Such notice shall be in writing, advise of such repairs, and be provided, prior to the receipt of any payment for such motor vehicle. If the franchisor shall fail to provide such notice, any franchised motor vehicle dealer suffering a loss by reason of such failure shall be entitled to reimbursement from the franchisor who failed to provide such notice.

§ 7. Paragraph (9) of subdivision 2 of section 463 of the vehicle and traffic law is relettered paragraph (u) and four

paragraphs (9), (1), (S) and (t) are added to read as follows:

(a) so grant to any person the right to perform warranty service on any new motor vehicle line other than a house coach line but deny to said

person the right to purchase the motor vehicles of that line for resale to consumers in this state as new motor vehicles provided, however, that this paragraph shall not prohibit a franchisor from:

(1) authorizing warranty, service by employees of a fleet operator or governmental entity on owned vehicles; or

(2), authorizing such other persons to perform warranty service as the franchisor deems necessary to protect its interests as they may be affected by section hundred ninety-eight-a of the general business law; or

(3), establishing and maintaining diagnostic centers or other types of service arrangements to improve the quality, convenience or availability of customer service.

A "fleet operator" shall be required to own for its own use or for the use of other's the minimum number of vehicles of the current or preceding model year manufactured or sold by the same franchisor as determined by the standards of such franchisor applied on general and consistent basis to substantially all fleet operators. Notwithstanding the preced; ing, a franchisor which withdraws from the United States market shall continue to allow its former franchised motor vehicle dealers to continue servicing and supplying parts, including service and parts supplied under the franchisor's warranty to vehicle owners, for a period of at least five years after such withdrawal from the United States market.

(r) To establish or attempt to establish the actual resale price for any new motor vehicle, part or accessory charged by a franchised motor vehicle dealer in the state, provided, however, nothing contained herein shall prohibit publication of recommended resale prices historical information by a franchisor.

(s) To grant a commission to any person other than a franchised motor vehicle dealer within the state involved in the sale of

motor vehicle by such franchised motor vehicle dealer without said franchised motor vehicle dealer's written consent. This prohibition shall not apply to sales incentive programs for employees of franchised motor vehicle dealers as long as the payments are made by the franchisor to such ployees and not charged to the dealer.

(t) To require attempt to require by the terms of the franchise that any dispute arising out of or in connection with the interpretation,

performance or nonperformance of the parties to the franchise or in any way related to the franchise be determined through the application of any other state's laws or in a federal court sitting in a state other than New York or in a state court of a state other than the

state of New York; provided, however, that the provisions of this paragraph shall not apply to:

(1) any new franchise agreement entered into between a franchisor and any individual or entity which has not

previously been granted & franchise by, such franchisor and which franchise provides for the operation of the business pursuant to such franchise at a location or dealership point not then being used in the operation of such business; or 172) any

renewal of an existing franchise between a franchised motor vehicle dealer and a franchisor which contains a preexisting

venue clause; or

(3) franchise between a franchised motor vehicle dealer or its assignee and a franchisor which franchise grants to such franchised motor

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vehicle dealer or its assignee rights related solely to a new line and make of automobile manufactured or distributed by such franchisor.

§ 8. Subdivision 1 of section 465 of the vehicle and traffic law, as added by chapter 815 of the laws of 1983, is amended to read as follows:

1. Every franchisor shall properly fulfill any warranty agreement and/or franchisor's service contract and shall compensate each of its franchised motor vehicle dealers for warranty parts and labor in amounts which reflect fair and reasonable compensation for such work. All warranty, claims and/or claims under a franchisor's service contract made by franchised motor vehicle dealers shall be paid within thirty days following their approval provided, however, that the franchisor retains the right to audit such claims for a period of two years following the submission thereof, and to charge back any amounts paid on false, fraudulent, incorrect or unsubstantiated claims. For parts, other than ponents, systems, fixtures, appliances, furnishings, accessories and features of a house coach that are designed, used and maintained primarily for nonvehicular residential purposes, and labor reimbursement, fair and reasonable compensation shall not be less than the price and rate charged by the franchised motor vehicle dealers in the community or marketing area for like services to non-warranty and/or non-service contract customers, , provided such price and rate [is] are reasonable.

§ 9. Section 471 of the vehicle and traffic law is renumbered section 472 and a new section 471 is added to read as follows:

§ 471. Notice requirement. 1. A dealer shall not display for sale, exchange or sell any new motor vehicle, or any used motor vehicle, that was originally sold by manufacturer for distribution outside the United States without prominently displaying

label on the vehicle stating that "This vehicle was not sold by the manufacturer for distribution within the United States. It may not have the

standard features, emissions equipment, safety equipment, optional equipment, specifications and warranty, or otherwise

be identical to the other motor vehicles which are sold by the manufacturer for distribution in the United States",

2. Any person who violates this section and any person who knowingly aids and abets any such violation of this section shall be liable to any person, aggrieved to the extent of any additional margin obtained or obtainable on such purchase and resale.

§ 10. This act shall take effect on the ninetieth day after it shall have become a law, provided, however, that the commissioner of motor vehicles shall take all actions necessary to implement the provisions of this act and promulgate necessary regulations thereunder prior

such effective date.

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CHAPTER 522

(See FISCAL NOTE at end of Chapter.)

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bly, do enact as follows:

AN ACT to allow Joan E. Rasmussen to file a request for retroactive membership in the New York state and local employees'

retirement system Became a law July 24, 1992, with the approval of the Governor. Passed on

Some Rule request pursuant to articienie, a section 2(b) (2) of the Con-
stitution by a majority vote, three-fifths being present.
The People of the State of New York, represented in Senate and Assem-

Section 1. Notwithstanding any inconsistent provision of law, Joan E. dryini

, the New York State and tican employees ickét iwementasystem on January 11973, and who, for reasons not ascribable to her own negligence,

member of retirement system prior to July 1, 1973, may be deemed to have become

the New York state and local employees EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

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member of such system on June 30, 1973 if, on or before December 31, 1993, she shall file with the state comptroller written request to that effect.

§ 2. Upon approval of a request pursuant to section one of this act, the state comptroller shall direct the town of Brunswick to pay to the New York state and

local employees' retirement system those payments which would have been made by the town of Brunswick, together with

interest, had Joan E. Rasmussen made timely application to join the appropriate retirement system.

§ 3. This act shall take effect immediately.

FISCAL NOTE. - This bill would deem Joan E. Rasmussen, an employee of the Town of Brunswick, to have become a Tier 1 member of the New York State and Local Employees' Retirement System on June 30, 1973.

If this bill is enacted, we anticipate that there will be an increase of approximately $1,100 in the annual contributions of the Town of Brunswick for the fiscal year ending March 31, 1993. Further, as a percentage of pay, the annual employer contributions

for this benefit will

payable for eventually approach 5.8% of Joan E. Rasmussen's annual salary.

In addition to the annual contributions discussed above, there will be an immediate past billing cost of approximately $22,000 which would be borne by the Town of Brunswick as a one-time payment.

This estimate, dated December 16, 1991 and intended for use only during the 1992 Legislative Session is Fiscal Note No. 92-5 prepared by the Actuary for the New York State and Local Employees' Retirement System.

CHAPTER 523

AN ACT to amend the education law, in relation to modifying the regents

physician loan forgiveness program
Became a law July 24, 1992, with the approval of the Governor.

Passed by majority vote, three-fifths being present.

People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Subdivision 9 of section 605 of the education law, as added by chapter 31 of the laws of 1985, the opening paragraph as amended by chapter 439 of the laws of 1988, is amended to read as follows:

9. Regents physician loan forgiveness program. Regents physician loan forgiveness awards shall be awarded annually to physicians who agree to practice medicine in an area of New York state designated by the regents as having a shortage of physicians. Such awards shall be cíassified and allocated in accordance with regents rules.

a. Eligibility. (1) The applicant must be a resident of New York state and [a graduate of a medical school approved

registered by the regents) licensed to practice medicine.

82) The applicant must have completed a professional residency program within the five years immediately preceding, the period for which the first award would be granted, [provided however the applicant has not received a regents physician shortage scholarship] or be within two years of completion of an accredited residency program in a primary care specialty designated in short supply by the board of regents: (3) The

applicant must agree to practice medicine in an area in New York' state designated as having a shortage of physicians. The regents, after consultation with the commissioners of health, correctional services, mental health and mental retardation and developmental disabilities, shall designate those regions and facilities of New York state which have a shortage of physicians for the purposes of this section and establish relative rankings thereof.

b. Selection. [Priority shall be accorded to applicants in the following order:

(1) First, to any applicant who is completing the second year of the service requirement and is reapplying for a new award;

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(2) Second, to any applicant whose residence in New York state at the time of entry into postsecondary education is currently within a physician shortage area;

(3) Third, to any applicant according to the severity of the physician shortage in the area selected by the applicant. Preference within each category shall be given to those applicants who have completed a residency in family practice or primary care. In the event, that there

are applicants who have

the

same priority than there are remaining awards, the commissioner shall distribute the remaining awards by means of a lottery or other form of random selection; ] The commissioner, in consultation with the commissioner of health, shall establish criteria for the selection of participants in the program. An applicant must satisfy at least one of the criteria established. A priority shall be accorded to any applicant who is completing the second year of the service requirement and is reapplying for a new award. The criteria shall include but not be limited to the following:

(i) reapplication for a new award by a person who is completing the second year of a service requirement;

(ii) receipt of specific training in a primary care specialty or obstetrics, determined by the regents to be in short supply;

(iii) receipt of specific training or experience in serving a shortage area;

(iv) receipt of specific training or experience matching a specific medical need existing in a shortage area; and

(v) agreement pursuant to subdivision (d) of this section to practice in an area determined by the regents to have a severe shortage

of primary care physician services.

Notification. (1) The commissioner shall then forward approved applications to the president and shall notify unsuccessful applicants;

(2) The president shall verify the approved applicants': i) eligibility; and lii) total undergraduate and medical school student [loan] expense; [and

(iii) non-participation in the regents physician shortage scholarship program; and]

(3) The president shall notify applicants of their award entitlement,

d. Service requirement. Within such time as the commissioner shall by regulation provide, a recipient of an award shall have agreed to practice medicine in [an] a specific area designated as having a shortage of physicians for a period of twelve months for each annual payment to

be received by the recipient. Physicians in training who receive an award shall not receive credit toward their required service for time spent in a training program. In no case shall the total number of months of service required be less than twenty-four. The president shall, sultation with the commissioner, develop and secure from each award recipient, a written agreement to:

(1) practice medicine in [a] the designated shortage area; (ii) to accept Medicare and Medicaid payments; and (iii) to provide thirty-five hours per week of direct patient care in the designated shortage area being served, or to the designated population being served. If a recipient fails to comply fully with such conditions, the president shall be entitled to receive from such recipient an amount to be determined by the formula:

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