S T A T E   O F   N E W   Y O R K
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                                  2317

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 18, 2009
                               ___________

Introduced  by  Sen. PADAVAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Transportation

AN ACT to amend the vehicle and traffic law, in relation to notification
  to the commissioner of motor vehicles of transfers of title  to  vehi-
  cles,  and  in relation to allowing bona fide transferors to rebut the
  presumption of vehicle abandonment

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section 2107 of the vehicle and traffic law is amended by
adding a new subdivision (d) to read as follows:
  (D) THE COMMISSIONER SHALL FILE AND MAINTAIN A RECORD OF ALL COPIES OF
DOCUMENTS AND STATEMENTS AFFIRMING TRANSFER OF AN INTEREST IN A  VEHICLE
MAILED OR DELIVERED TO HIM OR HER PURSUANT TO SUBDIVISION (A) OF SECTION
TWO  THOUSAND  ONE  HUNDRED  THIRTEEN  OR SUBDIVISION (B) OF SECTION TWO
THOUSAND ONE HUNDRED FIFTEEN OF THIS  ARTICLE,  AND  OF  ALL  STATEMENTS
AFFIRMING  EXTINGUISHMENT OR TRANSFER OF AN INTEREST IN A VEHICLE MAILED
OR DELIVERED TO HIM OR HER PURSUANT TO SUBDIVISION (C)  OF  SECTION  TWO
THOUSAND ONE HUNDRED FIFTEEN OF THIS ARTICLE. SUCH RECORD SHALL BE MAIN-
TAINED  IN  THE  MANNER PROVIDED IN SUBDIVISION (B) OF THIS SECTION, AND
SUCH COPIES AND STATEMENTS SHALL BE RETAINED IN THE COMMISSIONER'S FILES
UNTIL THE COMMISSIONER ISSUES A NEW CERTIFICATE OF TITLE  OR  UNTIL  THE
COMMISSIONER DETERMINES THAT THE VEHICLE ASSOCIATED WITH SUCH COPIES AND
STATEMENTS IS NO LONGER SUBJECT TO THE PROVISIONS OF THIS TITLE.
  S 2. Subdivisions (a) and (c) of section 2113 of the vehicle and traf-
fic  law,  subdivision  (a) as added by chapter 1134 of the laws of 1971
and subdivision (c) as amended by chapter 703 of the laws of  1989,  are
amended to read as follows:
  (a) If an owner transfers his OR HER interest in a vehicle, other than
by  the creation of a security interest, he OR SHE shall, at the time of
the delivery of the vehicle[,]: (I) execute an assignment  and  warranty
of title to the transferee in the space provided therefor on the certif-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06935-01-9
              

S. 2317                             2

icate  or  as the commissioner prescribes[, and]; (II) CAUSE THE CERTIF-
ICATE AND ASSIGNMENT TO BE EXECUTED BY THE TRANSFEREE INDICATING, IN THE
SPACES PROVIDED THEREFOR ON  THE  CERTIFICATE  OR  AS  THE  COMMISSIONER
PRESCRIBES,  THE TRANSFEREE'S CURRENT ADDRESS AND WHETHER THE TRANSFEREE
INTENDS TO USE THE VEHICLE FOR TRANSPORTATION OR FOR PARTS; (III)  cause
the  certificate  and assignment to be mailed or delivered to the trans-
feree; AND (IV) MAIL OR DELIVER TO  THE  COMMISSIONER  A  COPY  OF  SUCH
ASSIGNMENT AND WARRANTY OF TITLE, OR A STATEMENT IN A FORM PRESCRIBED BY
THE  COMMISSIONER  AFFIRMING SUCH TRANSFER, WITHIN THIRTY DAYS AFTER THE
TRANSFER OF THE VEHICLE TO THE TRANSFEREE.  The assignment and  warranty
of  title  required  by this section shall include a statement signed by
the transferor stating either[, (i)] any facts or information  known  to
him OR HER that could reasonably affect the validity of the title of the
vehicle[;] or[, (ii)] that no such facts or information are known to him
OR HER.
  (c) Except as provided in section two thousand one hundred fourteen, a
transfer  by  an  owner is not perfected so as to be valid against third
parties generally until the  provisions  of  this  section,  OTHER  THAN
PROVISIONS  OF  PARAGRAPHS  (II)  AND  (IV)  OF  SUBDIVISION (A) OF THIS
SECTION, and section two thousand one hundred sixteen have been complied
with; however, an owner who has delivered possession of the vehicle to a
bona fide transferee and  has  complied  with  the  provisions  of  this
section  and  section  two thousand one hundred sixteen is not deemed an
owner within the provisions of section  three  hundred  eighty-eight  of
this chapter, and, notwithstanding any other provision of law, shall not
be  presumed to have caused such vehicle to be abandoned for purposes of
subdivision seven of section twelve hundred twenty-four of this  chapter
[if  the  owner  has  retained  a copy of the assignment and warranty of
title].  Failure to [retain such copy] COMPLY WITH  SUBDIVISION  (A)  OF
THIS  SECTION  shall not preclude such owner from rebutting any presump-
tion contained in  [such  subdivisions]  SUBDIVISION  SEVEN  OF  SECTION
TWELVE HUNDRED TWENTY-FOUR OF THIS CHAPTER.
  S  3.  Subdivision (a) of section 2114 of the vehicle and traffic law,
as amended by chapter 521 of the laws of 1972, is  amended  to  read  as
follows:
  (a)  If  a  dealer buys a vehicle and holds it for resale and procures
the certificate of title from the owner within ten days  after  delivery
to him OR HER of the vehicle, he OR SHE need not send the certificate to
the  commissioner  but,  upon transferring the vehicle to another person
other than by the  creation  of  a  security  interest,  shall  promptly
execute  the  assignment  and warranty of title by a dealer, showing the
names and addresses of the transferee and of any  lienholder  holding  a
security  interest created or reserved at the time of the resale, in the
spaces provided therefor on  the  certificate  or  as  the  commissioner
prescribes, and mail or deliver the certificate to the commissioner with
the  transferee's  application for a new certificate. The assignment and
warranty of title by a dealer required by this section shall  include  a
statement, signed by the dealer stating either (i) any facts or informa-
tion  known  to  him OR HER that could reasonably affect the validity of
the title of the vehicle, or (ii) that no such facts or information  are
known to him OR HER.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, IF THE
DEALER  HAS MAILED SUCH CERTIFICATE, ASSIGNMENT AND WARRANTY OF TITLE TO
THE COMMISSIONER IN COMPLIANCE WITH THIS SUBDIVISION, THE  DEALER  SHALL
NOT  BE  PRESUMED  TO  HAVE  CAUSED SUCH VEHICLE TO BE ABANDONED FOR THE
PURPOSES OF SUBDIVISION SEVEN OF SECTION TWELVE HUNDRED  TWENTY-FOUR  OF
THIS CHAPTER. FAILURE TO COMPLY WITH THIS SUBDIVISION SHALL NOT PRECLUDE

S. 2317                             3

SUCH  DEALER  FROM  REBUTTING  ANY  PRESUMPTION CONTAINED IN SUBDIVISION
SEVEN OF SECTION TWELVE HUNDRED TWENTY-FOUR OF THIS CHAPTER.
  S 4. Subdivisions (b) and (c) of section 2115 of the vehicle and traf-
fic  law,  subdivision (b) as amended by chapter 196 of the laws of 1974
and subdivision (c) as added by chapter 1134 of the laws  of  1971,  are
amended to read as follows:
  (b)  If the interest of the owner is terminated or the vehicle is sold
under a security agreement by a lienholder, the transferee shall prompt-
ly mail or deliver to the commissioner the last certificate of title  if
available to him OR HER, his OR HER application for a new certificate in
the  form  the  commissioner  prescribes, and an affidavit made by or on
behalf of the lienholder that the vehicle was repossessed and  that  the
interest  of  the  owner was lawfully terminated or sold pursuant to the
terms of the security agreement.  If  the  lienholder  succeeds  to  the
interest  of  the owner and holds the vehicle for resale, he OR SHE need
not secure a new certificate of title  but,  upon  transfer  to  another
person,  shall  promptly  mail  or deliver to the transferee the certif-
icate, if available, affidavit and other documents required to  be  sent
to  the  commissioner  by  the  transferee.   SUCH LIENHOLDER SHALL ALSO
PROMPTLY MAIL OR DELIVER TO  THE  COMMISSIONER  EITHER  COPIES  OF  SUCH
CERTIFICATE,  AFFIDAVIT  AND  OTHER DOCUMENTS, OR A STATEMENT, IN A FORM
PRESCRIBED BY THE COMMISSIONER, AFFIRMING SUCH A TRANSFER. NOTWITHSTAND-
ING ANY OTHER PROVISION OF LAW, WHEN THE COMMISSIONER HAS RECEIVED  SUCH
COPIES  OR  SUCH STATEMENT PRIOR TO THE DATE OF DISCOVERY OF THE ALLEGED
ABANDONMENT OF SUCH VEHICLE, SUCH LIENHOLDER AND  SUCH  OWNER  TO  WHOSE
INTEREST  SUCH  LIENHOLDER  HAS  SUCCEEDED SHALL NOT BE PRESUMED TO HAVE
CAUSED SUCH VEHICLE TO BE ABANDONED FOR PURPOSES OF SUBDIVISION SEVEN OF
SECTION TWELVE HUNDRED TWENTY-FOUR OF THIS CHAPTER. FAILURE TO  MAIL  OR
DELIVER SUCH COPIES OR SUCH STATEMENT SHALL NOT PRECLUDE SUCH LIENHOLDER
OR OWNER FROM REBUTTING ANY PRESUMPTION CONTAINED IN SUCH SUBDIVISION.
  (c)  A  person  holding  a  certificate of title whose interest in the
vehicle has been extinguished or transferred  other  than  by  voluntary
transfer  shall mail or deliver the certificate to the commissioner upon
request of the commissioner.  The delivery of the  certificate  pursuant
to  the  request  of  the commissioner does not affect the rights of the
person surrendering the certificate, and the action of the  commissioner
in  issuing a new certificate of title as provided herein is not conclu-
sive upon the rights of an owner or lienholder named in the old  certif-
icate.    A  PERSON HOLDING A CERTIFICATE OF TITLE WHOSE INTEREST IN THE
VEHICLE HAS BEEN EXTINGUISHED OR TRANSFERRED  OTHER  THAN  BY  VOLUNTARY
TRANSFER  MAY MAIL OR DELIVER TO THE COMMISSIONER A STATEMENT, IN A FORM
PRESCRIBED BY THE COMMISSIONER, AFFIRMING SUCH EXTINGUISHMENT OR  TRANS-
FER. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, IF THE COMMISSIONER HAS
RECEIVED  SUCH A STATEMENT PRIOR TO THE DATE OF DISCOVERY OF THE ALLEGED
ABANDONMENT OF SUCH VEHICLE, SUCH PERSON SHALL NOT BE PRESUMED  TO  HAVE
CAUSED SUCH VEHICLE TO BE ABANDONED FOR PURPOSES OF SUBDIVISION SEVEN OF
SECTION  TWELVE  HUNDRED TWENTY-FOUR OF THIS CHAPTER. FAILURE TO MAIL OR
DELIVER SUCH A STATEMENT TO THE COMMISSIONER  SHALL  NOT  PRECLUDE  SUCH
PERSON FROM REBUTTING ANY PRESUMPTION CONTAINED IN SUCH SUBDIVISION.
  S 5. Paragraph 3 of subdivision (a) of section 2125 of the vehicle and
traffic  law,  as  amended by section 1-b of part A of chapter 63 of the
laws of 2005, is amended to read as follows:
  (3) for a duplicate certificate of title, twenty dollars[.];
  S 6. Subdivision (a) of section 2125 of the vehicle and traffic law is
amended by adding a new paragraph 4 to read as follows:

S. 2317                             4

  (4) FOR EACH SET OF COPIES OF DOCUMENTS OR STATEMENTS AFFIRMING TRANS-
FER OF A VEHICLE MAILED OR DELIVERED TO  THE  COMMISSIONER  PURSUANT  TO
SUBDIVISION (A) OF SECTION TWO THOUSAND ONE HUNDRED THIRTEEN OR SUBDIVI-
SION  (B)  OF  SECTION TWO THOUSAND ONE HUNDRED FIFTEEN OF THIS ARTICLE,
AND FOR EACH STATEMENT AFFIRMING EXTINGUISHMENT OR TRANSFER OF AN INTER-
EST  IN  A  VEHICLE  MAILED OR DELIVERED TO THE COMMISSIONER PURSUANT TO
SUBDIVISION (C) OF SECTION TWO THOUSAND  ONE  HUNDRED  FIFTEEN  OF  THIS
ARTICLE, TEN DOLLARS.
  S 7. Paragraph 4 of subdivision (a) of section 2130 of the vehicle and
traffic  law,  as amended by chapter 703 of the laws of 1989, is amended
to read as follows:
  (4) Uses a false or fictitious name or address, or  makes  a  material
false  statement,  or fails to disclose a security interest, or conceals
any other material fact, in an application for a certificate  of  title,
or  in  any  copy  of  an  assignment and warranty of title retained and
produced for the purpose of negating any presumption contained in subdi-
vision seven of section twelve hundred twenty-four of this  chapter,  OR
IN ANY OTHER DOCUMENT OR COPY THEREOF MAILED OR DELIVERED TO THE COMMIS-
SIONER  PURSUANT  TO SUBDIVISION (A) OF SECTION TWO THOUSAND ONE HUNDRED
THIRTEEN OR SUBDIVISION (B) OF SECTION TWO THOUSAND ONE HUNDRED  FIFTEEN
OF  THIS ARTICLE, OR IN A STATEMENT AFFIRMING EXTINGUISHMENT OR TRANSFER
OF AN INTEREST IN A VEHICLE MAILED  OR  DELIVERED  TO  THE  COMMISSIONER
PURSUANT  TO SUBDIVISION (C) OF SECTION TWO THOUSAND ONE HUNDRED FIFTEEN
OF THIS ARTICLE, is guilty of a felony; or
  S 8. This act shall take effect on the one hundred eightieth day after
it shall have become a law, except that any rules and regulations neces-
sary for the timely implementation of this act  on  its  effective  date
shall be promulgated on or before such date.