BILL NUMBER: S9554
SPONSOR: COONEY
 
TITLE OF BILL:
An act to amend the vehicle and traffic law, in relation to electronic
lien records
 
PURPOSE:OR GENERALOF BILL:
To establish a program that allows for the delivery and certificate of
of title and liens electronically aummARy OF PROVISIONS:
Section 1 amends section 2107 of the vehicle and traffic law by adding
gender neutral and allowing for electronic record of liens by the DMV
commissioner
Section 2 amends section 2109 of the vehicle and traffic law to provide
for electronic communications on liens
Section 3 amends section 2112 of the vehicle and traffic law to set
statues and limitation on the applications for obtaining a duplicate
certificate
Section 4 amends subdivision c of section 2119 of the vehicle and traf-
fic law to change language to fit with procedures in electronic communi-
cations of issuance of new certificates
Section 5 amends section 2119-a of the vehicle and traffic law to create
the Electronic Lien and Title Program
Section 6 amends subdivision b of section 2120 of the vehicle and traf-
fic law to allow an assignor to deliver records to the commissioner
Section 7 amends subdivision a of section 2121 of the vehicle and traf-
fic law to allow for electronic release of record upon the satisfaction
of a security interest
Section 8 sets the effective date
 
JUSTIFICATION:
Introducing electronic lien transfers for car purchases in New York
would bring numerous benefits to both consumers and the Department of
Motor Vehicles (DMV). Firstly, electronic lien transfers streamline the
vehicle purchasing process, reducing paperwork and administrative
burdens for all parties involved. Traditionally, lien transfers require
the exchange of physical documents, which can be time-consuming and
prone to errors or delays. By enabling electronic lien transfers, buyers
and sellers can complete transactions more efficiently, with digital
documents processed and transmitted instantaneously. This not only saves
time but also reduces the risk of errors, ensuring smoother and more
reliable transactions.
Secondly, electronic lien transfers enhance data accuracy and security.
Digital systems allow for real-time validation and verification of lien
information, reducing the likelihood of errors or discrepancies in lien
documentation. By automating the lien transfer process, the DMV can
ensure that accurate and up-to-date lien information is recorded prompt-
ly, minimizing the risk of fraud or misrepresentation. Additionally,
electronic lien systems employ advanced encryption and security measures
to protect sensitive information, safeguarding against unauthorized
access or tampering. This enhances data security and integrity,
instilling greater trust and confidence in the lien transfer process for
both buyers and sellers.
Furthermore, electronic lien transfers promote transparency and accessi-
bility in vehicle transactions. Digital platforms enable stakeholders,
including buyers, sellers, lenders, and the DMV, to access and track
lien information in real time. This transparency fosters accountability
and trust among all parties involved, as the status of liens can be
easily verified and monitored throughout the transaction process. Addi-
tionally, electronic systems can facilitate seamless communication and
collaboration between stakeholders, enabling faster resolution of any
issues or discrepancies that may arise. Overall, electronic lien trans-
fers improve the efficiency, accuracy, and transparency of vehicle tran-
sactions in New York, benefiting consumers, businesses, and regulatory
agencies alike.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
 
EFFECTIVE DATE:
Immediately.

Statutes affected:
S9554: 2109 vehicle and traffic law, 2112 vehicle and traffic law, 2119 vehicle and traffic law, 2120 vehicle and traffic law