BILL NUMBER: S3542A
SPONSOR: BRESLIN
 
TITLE OF BILL:
An act to amend the general obligations law and the state technology
law, in relation to electronic signatures and salvage title
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill amends the general obligations law and the state technology
law to allow the use of an electronic signature in connection with a
power of attorney used specifically for salvage vehicle title transfer
documents.
 
SUMMARY OF PROVISIONS:
Section 1: amends section 5-1501-B of the general obligations law by
adding a new subdivision 6 to allow the execution of a valid power of
attorney for the purposes of transferring a salvage certificate of title
and damage disclosure statement by electronic means.
Section 2: amends subdivision 1 of section 307 of the state technology
law to allow the electronic execution of a power of attorney specif-
ically for the transfer of a salvage certificate of title and execution.
of an odometer and disclosure statement in a vehicle total loss or
constructive loss.
Section 3: provides an immediate effective date.
 
JUSTIFICATION:
Vehicles covered by insurance are sometimes damaged to the point of
being declared a total loss as occurs when an insured is involved in a
devastating accident or in situations where weather-related storms
strike New York. In those instances, the customer and insurer agree on a
settlement value for the damaged vehicle and the insurer, pending
receipt of title, delivers payment to the customer for the value of
their vehicle. Unfortunately, given the current statutory constraints in
New York under the General Obligations law, it takes on average 9-11
days for the customer to receive their settlement payment. The delay in
payments and hardship on the insureds and their family was glaring when
Hurricanes Sandy and Irene hit New York. If this bill were enacted into
law, the use of an electronic signature for a power of attorney and
odometer damage and disclosure statement would be permitted, and the
average time for a customer to receive payment would be greatly reduced;
in most cases between 24 to 48 hours. There are 17 other states that use
this or some other form of electronic signatures to expedite payments to
customers when a vehicle is declared a total loss.
 
PRIOR LEGISLATIVE HISTORY:
2021-22: A.5384 - Judiciary / S.4697 - Passed Senate
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S3542: 5-1501B general obligations law, 307 state technology law, 307(1) state technology law
S3542A: 5-1501B general obligations law, 307 state technology law, 307(1) state technology law