NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A497
SPONSOR: Magnarelli TITLE OF BILL:
An act to amend the vehicle and traffic law, in relation to providing
for the electronic transmission of certain documents
PURPOSE OR GENERAL IDEA OF BILL:
To allow for the electronic transmission of vehicle titles from the
Department of Motor Vehicles to the vehicle owner.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends Vehicle and Traffic Law Article 46 Section 2101 to
include electronic transmission.
Section 2 amends Vehicle and Traffic Law Article 46 Section 2107 to
allow for the delivery of vehicle titles to lienholders.
Section 3 amends Vehicle and Traffic Law Article 46 Section 2109 to
allow for the delivery of titles to vehicle owners.
Section 4 amends Vehicle and Traffic Law Article 46 Section 2112 to
allow for the delivery of titles when title is lost or stolen.
Section 5 amends Vehicle and Traffic Law Article 46 Section 2117 to
allow for the delivery of titles to transferees of ownership.
Section 6 amends Vehicle and Traffic Law Article 46 Section 2119 to
allow for the delivery of titles to transferees of liens.
Section 7 establishes the effective date.
JUSTIFICATION:
As more industries utilize digital methods of operation, it is critical
that New York State keep up with public and commercial demand and
streamline services that only it can provide. Currently, when DMV deliv-
ers original documents to New Yorkers, such as vehicle titles, it must
provide a physical document. This legislation streamlines the process
and acknowledges that secure items can be safely transferred solely
through digital means.
By allowing for the digital delivery of a vehicle title, certain aspects
of business in New York State can be completed nearly instantaneously,
such as replacing a lost title, transferring a lien, or transferring the
title to a new vehicle owner. This will save the state money by increas-
ing efficiencies, and provide for a more convenient process for resi-
dents and businesses.
PRIOR LEGISLATIVE HISTORY:
2023-2024: A.6413
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Increased revenues to the State in an amount to be determined due to
increased efficiencies in processing.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
497
2025-2026 Regular Sessions
IN ASSEMBLY(Prefiled)
January 8, 2025
___________
Introduced by M. of A. MAGNARELLI, SIMON, LEVENBERG -- read once and
referred to the Committee on Transportation
AN ACT to amend the vehicle and traffic law, in relation to providing
for the electronic transmission of certain documents
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (f) of section 2101 of the vehicle and traffic
2 law, as added by chapter 1134 of the laws of 1971, is amended to read as
3 follows:
4 (f) To "mail" means to deposit in the United States mail properly
5 addressed and with postage prepaid, or electronically transmitted.
6 § 2. Subdivision (c) of section 2107 of the vehicle and traffic law,
7 as added by chapter 521 of the laws of 1972, is amended to read as
8 follows:
9 (c) When the commissioner issues a certificate of title for a vehicle
10 as a result of an original application for a title or as a result of the
11 filing of a security interest, [he] such commissioner shall also issue
12 and mail or have electronically transmitted to the lienholder or lien-
13 holders named in the original application, or to the lienholder who
14 filed the subsequent security interest a notice of recorded lien.
15 § 3. Section 2109 of the vehicle and traffic law, as added by section
16 1134 of the laws of 1971, is amended to read as follows:
17 § 2109. Delivery. The certificate of title shall be mailed or elec-
18 tronically transmitted to the owner.
19 § 4. Subdivision (a) of section 2112 of the vehicle and traffic law,
20 as amended by chapter 175 of the laws of 1982, is amended to read as
21 follows:
22 (a) If a certificate of title is lost, stolen, mutilated or destroyed
23 or becomes illegible, the owner or legal representative of the owner
24 named in the certificate, as shown by the records of the commissioner,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01126-01-5
A. 497 2
1 shall promptly make application for and may obtain a duplicate upon
2 furnishing information satisfactory to the commissioner. Unless the
3 original certificate of title is surrendered to the commissioner, the
4 duplicate certificate of title shall contain the legend "This is a
5 duplicate certificate and may be subject to the rights of a person under
6 the original certificate." It shall be mailed or electronically trans-
7 mitted to the owner.
8 § 5. Subdivisions (a) and (b) of section 2117 of the vehicle and traf-
9 fic law, as added by chapter 1134 of the laws of 1971, are amended to
10 read as follows:
11 (a) The commissioner, upon receipt of a properly assigned certificate
12 of title, with an application for a new certificate of title, the
13 required fee and any other documents required by law, shall check the
14 identifying number of the vehicle against the appropriate records of
15 vehicles required to be maintained, issue a new certificate of title in
16 the name of the transferee as owner and mail it or have it electron-
17 ically transmitted to the owner.
18 (b) The commissioner, upon receipt of an application for a new certif-
19 icate of title by a transferee other than by voluntary transfer, with
20 proof of the transfer, the required fee and any other documents required
21 by law, shall check the identifying number of the vehicle against the
22 appropriate records of vehicles required to be maintained, issue a new
23 certificate of title in the name of the transferee as owner and mail it
24 or have it electronically transmitted to the owner. If the outstanding
25 certificate of title is not delivered to the commissioner, [he] such
26 commissioner shall demand it from the holder thereof.
27 § 6. Subdivisions (b) and (c) of section 2119 of the vehicle and traf-
28 fic law, as added by chapter 1134 of the laws of 1971, are amended to
29 read as follows:
30 (b) The lienholder shall, immediately after the owner complies with
31 subdivision (a), cause the certificate, application and the required fee
32 to be mailed, electronically transmitted or delivered to the commission-
33 er.
34 (c) Upon receipt of the certificate of title, application and the
35 required fee, the commissioner shall either endorse on the certificate,
36 or issue a new certificate containing, the name and address of the new
37 lienholder, and mail or electronically transmit the certificate to the
38 owner.
39 § 7. This act shall take effect immediately.
