NY State Senate Bill 2025-S2106

Senate Bill S2106

2025-2026 Legislative Session

Relates to the issuance, records, and delivery of certificates of title; requires the establishment of an electronic lien and title program

download bill text pdf

Current Bill Status - In Senate Committee Transportation Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 15, 2025	referred to transportation

2025-S2106 (ACTIVE) - Details

Current Committee:: Senate Transportation
Law Section:: Vehicle and Traffic Law
Laws Affected:: Amd §§2107, 2109, 2112, 2119, 2120 & 2121, add §2119-a, V & T L
Versions Introduced in 2023-2024 Legislative Session:: S9554

2025-S2106 (ACTIVE) - Summary

Relates to the issuance, records, and delivery of certificates of title; requires the establishment of an electronic lien and title program.

2025-S2106 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2106

SPONSOR: COONEY
 
TITLE OF BILL:

An act to amend the vehicle and traffic law, in relation to electronic
lien records

 
PURPOSE:

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:

S9554/A10085 of 2023-24: Referred to Transportation Committee

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
Immediately.

2025-S2106 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2106
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2025
                                ___________
 
 Introduced  by  Sen.  COONEY -- 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  electronic
   lien records
 
   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,  as  added  by
 chapter  1134 of the laws of 1971, paragraphs 2 and 3 of subdivision (b)
 as amended and subdivision (c) as added by chapter 521 of  the  laws  of
 1972, is amended to read as follows:
   § 2107. Issuance  and  records.  (a)  The commissioner shall file each
 application received and, when satisfied as to its genuineness and regu-
 larity and that the applicant is entitled to the issuance of  a  certif-
 icate  of  title,  shall  issue  a  certificate of title of the vehicle,
 except that the commissioner  may  require  that  any  such  vehicle  be
 inspected in a manner prescribed by [him] THE COMMISSIONER for conformi-
 ty  to  the description given in the application before [he] THE COMMIS-
 SIONER issues a certificate of title.
   (b) The commissioner shall maintain a record of  all  certificates  of
 title issued by [him] THE COMMISSIONER:
   (1) Under a distinctive title number assigned to the vehicle;
   (2) Under the identifying number of the vehicle;
   (3)  Alphabetically,  under  the  name  of  the owner, unless [he] THE
 COMMISSIONER  maintains  alphabetical  records  of  all  owners  holding
 certificates of registration;
   (4) Under the registration number of the vehicle; and
   (5)  In  the  discretion of the commissioner, in any other method [he]
 THE COMMISSIONER determines.
   (c) When the commissioner issues a certificate of title for a  vehicle
 as a result of an original application for a title or as a result of the
 filing  of a security interest, [he] THE COMMISSIONER shall [also] issue
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03573-01-5

 S. 2106                             2
 
 and mail THE CERTIFICATE OF TITLE to the FIRST lienholder [or  lienhold-
 ers]  named  in the original application, or to the lienholder who filed
 the subsequent security interest [a notice of recorded lien]  EXCEPT  AS
 PROVIDED BY SECTION TWENTY-ONE HUNDRED NINETEEN-A OF THIS ARTICLE.
   §  2. Section 2109 of the vehicle and traffic law, as added by chapter
 1134 of the laws of 1971, is amended to read as follows:
   § 2109. Delivery. The certificate of title  shall  be  mailed  to  the
 owner  EXCEPT  AS  PROVIDED  IN  SUBDIVISION  (C)  OF SECTION TWENTY-ONE
 HUNDRED SEVEN OF THIS ARTICLE.
   § 3. Section 2112 of the vehicle and traffic law, as amended by  chap-
 ter 175 of the laws of 1982, is amended to read as follows:
   § 2112. Lost,  stolen  or mutilated certificates. (a) If a certificate
 of title is lost, stolen, mutilated or destroyed or  becomes  illegible,
 the owner or legal representative of the owner named in the certificate,
 as  shown by the records of the commissioner, shall promptly make appli-
 cation for and may obtain a duplicate upon furnishing information satis-
 factory to the commissioner. Unless the original certificate of title is
 surrendered to the commissioner,  the  duplicate  certificate  of  title
 shall  contain  the  legend  "This is a duplicate certificate and may be
 subject to the rights of a person under the original certificate."    IF
 THE  RECORDS OF THE COMMISSIONER SHOW ONE OR MORE LIENHOLDERS, THE OWNER
 SHALL PROVIDE A RELEASE OF SECURITY INTEREST WITH THE  APPLICATION  FROM
 EACH LIENHOLDER. It shall be mailed to the owner.
   (b)  A  FIRST LIENHOLDER NAMED IN THE CERTIFICATE MAY MAKE APPLICATION
 FOR AND MAY OBTAIN A DUPLICATE UPON FURNISHING INFORMATION  SATISFACTORY
 TO THE COMMISSIONER. A LIENHOLDER WHO IS NOT THE FIRST MAY MAKE APPLICA-
 TION AND MAY OBTAIN A DUPLICATE UPON FURNISHING INFORMATION SATISFACTORY
 TO  THE  COMMISSIONER  AND  SHALL INCLUDE A RELEASE OF SECURITY INTEREST
 WITH THE APPLICATION FOR EACH LIENHOLDER WITH PRECEDING PRIORITY.
   (C) A person recovering an original certificate of title for  which  a
 duplicate has been issued shall promptly notify the commissioner of such
 recovery and shall comply with the directions of the commissioner relat-
 ing to the disposition of such documents.
   (D)  THE  COMMISSIONER  SHALL  NOT  ISSUE  A DUPLICATE IF THE ORIGINAL
 CERTIFICATE WAS ISSUED AS PROVIDED BY SECTION TWENTY-ONE  HUNDRED  NINE-
 TEEN-A  OF  THIS  ARTICLE UNLESS THE LIENHOLDER IS OUT OF BUSINESS OR IS
 UNABLE TO COMPLY WITH SUBDIVISION  (C)  OF  SECTION  TWENTY-ONE  HUNDRED
 NINETEEN-A OF THIS ARTICLE AS DETERMINED BY THE COMMISSIONER.
   §  4.  Subdivision (c) of section 2119 of the vehicle and traffic law,
 as added by chapter 1134 of the laws of 1971,  is  amended  to  read  as
 follows:
   (c)  Upon  receipt  of  the  certificate of title, application and the
 required fee, the commissioner shall [either endorse on the certificate,
 or] issue a new certificate containing, the name and address of the  new
 lienholder, and [mail] PROVIDE the certificate to the [owner] LIENHOLDER
 AS  PROVIDED  IN  SUBDIVISION (C) OF SECTION TWENTY-ONE HUNDRED SEVEN OF
 THIS ARTICLE.
   § 5. The vehicle and traffic law is amended by adding  a  new  section
 2119-a to read as follows:
   §  2119-A.  ELECTRONIC  LIEN  AND  TITLE PROGRAM. (A) THE COMMISSIONER
 SHALL DEVELOP, ESTABLISH, AND MAINTAIN AN ELECTRONIC DATA  AND  COMMUNI-
 CATION  SYSTEM  WITH  BANKS,  CREDIT  UNIONS, AND OTHER FINANCIAL INSTI-
 TUTIONS FOR THE PURPOSES OF ELECTRONICALLY RECORDING  THE  EXISTENCE  OF
 SECURITY  INTERESTS  UNDER  THE  PROVISIONS OF THIS ARTICLE. LIENHOLDERS
 SHALL ELECTRONICALLY  TRANSMIT  LIENS  AND  LIEN  SATISFACTIONS  TO  THE
 DEPARTMENT  IN  A FORMAT DETERMINED BY THE COMMISSIONER. INDIVIDUALS AND
 S. 2106                             3
 
 LIENHOLDERS WHO THE COMMISSIONER DETERMINES ARE NOT NORMALLY ENGAGED  IN
 THE  BUSINESS  OR PRACTICE OF FINANCING VEHICLES ARE EXEMPT FROM PARTIC-
 IPATING IN THE PROGRAM.
   (B)  UNLESS AN INDIVIDUAL OR LIENHOLDER IS EXEMPT FROM THIS SECTION BY
 THE COMMISSIONER AS PROVIDED IN SUBDIVISION (A)  OF  THIS  SECTION,  THE
 LIEN  SHALL  BE  RECORDED ELECTRONICALLY IN THE SYSTEM. A CERTIFICATE OF
 TITLE REFLECTING AN ELECTRONICALLY  RECORDED  LIEN  UNDER  THIS  SECTION
 SHALL NOT BE PRINTED UNLESS SUBSEQUENTLY REQUESTED BY THE LIENHOLDER FOR
 THE PURPOSES OF CONDUCTING BUSINESS OR UPON LIEN SATISFACTION.
   (C)  A  LIEN  RECORDED  ELECTRONICALLY  SHALL BE REPORTED AS SATISFIED
 ELECTRONICALLY TO THE COMMISSIONER. UNLESS THERE ARE ADDITIONAL RECORDED
 LIENS, UPON RECEIVING THE REPORT OF LIEN SATISFACTION, THE  COMMISSIONER
 SHALL RELEASE THE LIENHOLDER'S RIGHTS ON THE CERTIFICATE AND ISSUE A NEW
 CERTIFICATE TO THE OWNER OR ANY PERSON WHO DELIVERS TO THE LIENHOLDER AN
 AUTHORIZATION  FROM  THE  OWNER TO RECEIVE THE CERTIFICATE. IF THERE ARE
 ADDITIONAL RECORDED LIENS, UPON RECEIVING THE REPORT OF  LIEN  SATISFAC-
 TION,  THE  COMMISSIONER  SHALL  RELEASE  THE LIENHOLDER'S RIGHTS ON THE
 CERTIFICATE. THE CERTIFICATE OF TITLE SHALL REMAIN ELECTRONIC UNTIL  ALL
 LIENS HAVE BEEN REPORTED AS SATISFIED.
   §  6.  Subdivision (b) of section 2120 of the vehicle and traffic law,
 as added by chapter 1134 of the laws of 1971,  is  amended  to  read  as
 follows:
   (b) The assignee may, but need not to perfect the assignment, have the
 certificate of title endorsed or issued with the assignee named as lien-
 holder,  upon  delivering to the commissioner an assignment by the lien-
 holder named in the certificate in the form the commissioner prescribes.
 Upon the request of the assignee  the  commissioner  shall  request  the
 owner  OR  ASSIGNOR  to  deliver  to the commissioner the certificate of
 title.
   § 7. Subdivision (a) of section 2121 of the vehicle and  traffic  law,
 as amended by chapter 691 of the laws of 1985 and as designated by chap-
 ter 493 of the laws of 2012, is amended to read as follows:
   (a)  Upon  the  satisfaction  of  a security interest in a vehicle the
 lienholder shall immediately upon clearance of payment execute a release
 of [his] SUCH LIENHOLDER'S security interest: (I) in a manner prescribed
 by the commissioner and mail or deliver the release, AND CERTIFICATE  OF
 TITLE  IF  APPLICABLE,  to  the  owner or any person who delivers to the
 lienholder an authorization from the owner to receive  the  certificate,
 OR  (II)  AS  PROVIDED  BY SUBDIVISION (C) OF SECTION TWENTY-ONE HUNDRED
 NINETEEN-A OF THIS ARTICLE.  Payment sufficient to satisfy the  security
 interest  by an insurer of the owner shall be deemed an authorization by
 the owner for the delivery of the release of the  security  interest  to
 the  insurer. If the payment in satisfaction of the security interest is
 in cash, certified check, intra-bank transfer of funds or an uncertified
 check or draft issued by an insurance company authorized to do  business
 in  this  state,  the  payment shall be deemed to be cleared immediately
 upon receipt. The owner, other than a dealer  holding  the  vehicle  for
 resale,  may cause the certificate and release to be mailed or delivered
 to the commissioner, who shall release the lienholder's  rights  on  the
 certificate [or] AND issue a new certificate.
   § 8. This act shall take effect immediately.

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