BILL NUMBER: S5688A
SPONSOR: COONEY
 
TITLE OF BILL:
An act to amend the vehicle and traffic law, in relation to establishing
a fixed fee for the purchase of registration lists and title information
 
PURPOSE:
The purpose of this bill is to amend New York State's Vehicle and Traf-
fic Law to establish a set fee for, the release of vehicle records;
ensures conformance with federal permissible uses; and increases safe-
guards.
 
SUMMARY OF PROVISIONS:
Section 1: Amends paragraph 4(a) of section 202 of the Vehicle and Traf-
fic Law to allow the Commissioner to contract with any successful
bidders rather than just one highest bidder; adds a fixed fee for the
bulk purchase of registration lists and title information; amends para-
graph 4(b) to align with the federally permissible use of these records
for motor vehicle claims investigation activities, antifraud activities,
rating or underwriting; amends paragraph 4(c) to allow the Commissioner
to contract with any successful bidder rather than just one highest
bidder; adds a new paragraph to give the Commissioner the option to
require a number of protections including requiring the successful
bidder or bidders to post a performance bond in an amount of not more
than $1 million; a prohibition on the sale or redisclosure of the
personal information for the purpose of marketing extended vehicle
warranties; a requirement that the bidder or bidders provide proof of
general liability and cyber-threat insurance coverage in an amount spec-
ified by the contracting agency; a requirement that the bidder or
bidders include in each contract with a third party that receives the
personal information from the bidder or bidders that the third party
must comply with federal and state laws regarding the records; a
requirement that the bidder or bidders and any third party receiving the
personal information from the requestor protect the personal information
with appropriate and accepted industry standard security measures for
the type of information and the known risks from unauthorized access and
use of the information; and a requirement that the bidder or bidders
annually provide to the agency a report of all third parties to which
the personal information was disclosed under this section and the
purpose of the disclosure.
Section 2: Establishes the effective date.
 
JUSTIFICATION:
The federal Driver's Privacy Protection Act (DPPA) requires the state
Department of Motor Vehicles to release motor vehicle records for the
purpose of safety recall. The DPPA permits states to charge an adminis-
trative fee. The New York Vehicle and Traffic Law contains a state-ena-
bling section that provides protection for data being released by the
New York Department of Motor Vehicles however, there are no cost parame-
ters on how much permitted entities must pay to purchase registration
lists and title information that adequately reflect the public safety
benefit reasonable access to this data provides. This bill sets a
reasonable flat fee, providing a consistent revenue stream to the State
while adding clarity to the bidding process and safety recall process.
In addition, with the continued increase in fraud related to vehicle
purchases and automobile insurance, this legislation would also add the
federally permissible use of these records for motor vehicle claims
investigation activities, antifraud activities, rating or underwriting
as well as adding several safeguards to prevent misuse.
Millions of New Yorkers look to buy pre-owned vehicles each year, and
drivers looking to purchase a used vehicle deserve to know the full
vehicle history when making such a large purchase. The Department of
Motor Vehicles currently has the authority to sell non-personal vehicle
accident data and has been doing so for many years with the understand-
ing that having the entire history of the car, and whether it had previ-
ously been in an accident is critical.
The statute currently allows for distribution on a per-vehicle basis and
does not address the sale of data in bulk. This bill would authorize the
DMV to offer the sale of vehicle accident data to companies in bulk, in
the same manner as currently provided for registration and title infor-
mation, so that customers are not left in the dark about the history of
their potential new vehicle.
This information has significant utility in protecting used vehicle
consumers as it both identifies vehicles involved in crashes and further
illuminates the nature and severity of those crash events. Without
access to the more than 1.4 million annual VIN-level crash records that
have been permissibly provided for more than 2 decades, New York consum-
ers are now left blind to the safety and value implications of a used
vehicle previously involved in a crash. This information is essential
for public safety and strengthening consumer protection across New York
State.
 
LEGISLATIVE HISTORY:
New Bill.
 
FISCAL IMPLICATIONS:
The adoption of this bill ensures that existing DMV fees are set in
statute, providing a consistent revenue stream to the State while adding
clarity to the bidding process.
 
EFFECTIVE DATE:
This act shall take effect immediately.