Authorizes the commissioner of motor vehicles to waive certain requirements relating to junk and salvage vehicles

Summary of provisions

Section 1 amends the Vehicle and Traffic Law § 429(b)(1) to permit the Commissioner of Motor Vehicles to waive, by regulation, the delivery of documents related to junk and-salvage vehicles or, in the alternative, to allow such requirements to be satisfied by filing of the necessary information by or on behalf of the person to whom such requirements apply. Section 2 provides the bill will take effect immediately

Existing law

Currently, the Vehicle and Traffic Law does not provide for the electronic filing of certain documents related to junk or salvage vehicles.

Justification

The National Motor Vehicle Title Information System (NMVTIS) was established by federal law in 1992, and is an electronic system that enables users to access automobile titling information, including brand history and certain historical theft data. A "brand" is a descriptive label assigned to a vehicle by a state that identifies the vehicle's current or prior condition, such as "junk," "salvage: or "flood." By capturing into one system specific pieces of information from state motor vehicle titling agencies, automobile recyclers, junk and salvage yards, and insurance carriers, NMVTIS protects states and consumers from title fraud, keeps stolen vehicles from being retitled, and makes it more difficult for criminals to conceal stolen vehicles for criminal purposes.

NMVTIS serves as a repository of information related to vehicles that have been in the possession of auto recyclers, junk yards and salvage yards. This repository is then used by states and consumers to ensure that junk or salvage vehicles are not later re-sold and ensures that the VINs from destroyed vehicles can never be used for a stolen auto. Thieves use the VINs from destroyed vehicles because they know that the true VIN will never appear again on the road and because they know that if the VINs are reported to state motor vehicle titling agencies, there is a strong likelihood that the reporting may not result in a flagged or retired record (also known as a "kill title" report). Because NMVTIS reporting is mandated and because consumers and states can access the information, the system makes it much easier to detect attempts to use VINs from destroyed or salvage vehicles in cloning operations. Under New York State Vehicle and Traffic Law and Department of Motor Vehicle regulations, licensed vehicle dismantlers operating in New York State must submit a statement to the Commissioner regarding the acquisition of a vehicle which has been disposed of as junk or for salvage. The yards are also required to submit the certificate of title or any other ownership documentation related to those motor vehicles. According to federal regulation, the yards are required to report vehicle acquisition data to NMVTIS which is almost identical to the data the yards also report to DMV.

In an effort to streamline reporting and encourage yard reporting to NMVTIS, this legislation seeks to allow DMV to acquire information electronically and in real-time from vehicle dismantlers. In addition, this electronic format will help address the department's limited resources available for processing this paperwork. Furthermore, the proposed change will eliminate a duplicative junk and salvage yard reporting requirement while still ensuring information about junk and salvage vehicles is available to DMV and NMVTIS in the most accurate and efficient manner.

This legislation would ensure a more streamlined and effective process that benefits the consumer, the automotive recycler and the department while combating car theft fraud.

Legislative history

This is a new bill.

Fiscal implications

To be determined

Effective date

This act shall take effect immediately.