Amd §301, BC L; amd §204, Lim Lil L; amd §121-102, Partn L; add §§172-a & 191-a, Transp L
Relates to the use of assumed and corporate names by companies in the business of household goods moving; provides that companies may not use the words "mover", "moving", or "relocation service" or any abbreviation or derivative thereof unless approved by the commissioner of transportation.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8742
SPONSOR: Lunsford TITLE OF BILL:
An act to amend the business corporation law, the limited liability
company law, the partnership law and the transportation law, in relation
to the use of assumed and corporate names pertaining to household goods
moving
PURPOSE:
To strengthen the protection of the public against the deceptive prac-
tice of businesses holding themselves out as a licensed mover of house-
hold goods.
SUMMARY OF PROVISIONS:
Section 1 amends paragraph (a) of Business Corporation Law § 301 to add
new subdivision 12, prohibiting the use of the words "mover" or "moving"
in a corporate name unless the entity is an authorized household goods
mover.
Section 2 amends Limited Liability Company Law § 204 to add new subdivi-
sion (j), prohibiting the use of the words "mover" or "moving" in a
limited liability company name unless the entity is an authorized house-
hold goods mover.
Section 3 amends Partnership Law § 121-102(3) to add new paragraph (E),
prohibiting the use of the words "mover" or "moving" in a partnership
name unless the entity is an authorized household goods mover.
Section 4 adds Transportation Law § 172-a, prohibiting any person or
corporation from using, advertising, or transacting business under the
names "mover" or "moving" or any similar name carry such connotation
unless they are authorized by the commissioner of the department of
transportation in writing. Violation of this prohibition would be
subject to a $10,000 fine. Any existing entities doing business under
such names would be given one year to come into compliance by obtaining
authorization by the commissioner of the department of transportation to
operate as a household goods moving company.
Section 5 Transportation Law § 191-a, prohibiting any person or corpo-
ration from using, advertising, or transacting business under the names
"mover" or "moving" or any similar name carry such connotation unless
they are authorized by the commissioner of the department of transporta-
tion in writing. Violation of this prohibition would be subject to a
$10,000 fine. Any existing entities doing business under such names
would be given one year to come into compliance by obtaining authori-
zation by the commissioner of the department of transportation to oper-
ate as a household goods moving company.
Section 6 is the effective date.
JUSTIFICATION:
In order to operate as a mover in the State of New York, a person or
entity must be issued a certificate of authority by the New York State
Department of Transportation. The instances of people and businesses
holding themselves out to be movers without having valid authority
continues to be a public concern. With websites like Facebook and Craig-
slist, unauthorized people and businesses are able to hold themselves
out as movers, despite lacking the proper authorization.
Many illegal movers do not respect the consumer and have been known to
damage or steal personal items. Additionally, there have been many
instances where illegal movers hold a consumer's goods until the consum-
er pays additional money to the illegal mover in order to get what is
rightfully theirs. Further, if an item is damaged or destroyed, many
illegal movers lack insurance coverage, so consumers have no recourse
for being compensated for their damaged property.
This bill would help prevent consumer confusion and greatly strengthen
the protection of the public against the deceptive practice of an indi-
vidual or business holding themselves out as licensed household goods
moving companies. Further, it would help individuals and businesses
looking to operate as household goods moving companies in the State to
do so legally. Many household goods moving companies that fail to obtain
the required authorization from the department of transportation do not
know about the requirement. This would be an additional check against
companies operating as unauthorized moving companies.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
This bill should not result in any significant costs to the State
Department of Transportation. There may be minimal additional costs to
the Department of State in implementing the provisions of this bill.
EFFECTIVE DATE:
30 days after it shall become law.
