Relates to the transfer of motor vehicles as scrap

Section 2 amends Vehicle and Traffic Law Section 415-a (9) (b) to require scrap processors to comply with federal law mandating entry of transaction information into the National Motor Vehicle Title Information System.

Section 3 amends Vehicle and Traffic Law Section 415-a (14) eliminates the ability to sell a vehicle to a scrap processor without the title to the vehicle, except where the seller proffers a substitute form designated by the Commissioner of Motor Vehicles, exclusively for vehicles at least 12 model years old with a fair market value of $1,250 or less as a vehicle.

Reasons for support

This legislation addresses the persistent problem of auto crime. Although the incidence of auto theft has greatly decreased over the last two decades, as have other major felony crimes, we find that criminals are continuing to exploit weaknesses in the Vehicle and Traffic Law in order to take advantage of the high scrap metal prices they can obtain for older vehicles. They routinely utilize a particular form issued by the Department of Motor Vehicles, the "MV-35," as a substitute ownership document, in order to transfer stolen vehicles to scrap processors.

The MV-35 is currently available to anyone who wishes to transfer a vehicle at least eight model years old and worth $1,250 or less to a scrap processor, by simply representing that he or she is the owner of a vehicle whose title has been lost. The ability of auto thieves to exploit this simple substitute for a vehicle title facilitates the easy conversion of stolen vehicles to cash.

We seek amendment of the law in several ways, in order to address this problem. First, the bill would establish a threshold for use of the MV-35 as a substitute ownership document, only for vehicles at least 12 model years old worth $1,250 or less, making explicit that the value is the fair market value of the vehicle itself, not its scrap value. Any other vehicle could only be transferred to the scrap processor with a title. This proposal acknowledges the continuing usefulness of the form for legitimate transactions, but decreases the number of vehicles on the road susceptible to theft for their scrap value.

Second, the bill would amend the General Business Law to require scrap processors to accept only government issued photo identification from the seller, and to require the businesses to retain documents,

including the MV-35, for 5 years, thereby better ensuring the legitimacy of the transaction and the ability to investigate suspicious activity. The business would also be required to send a copy of the document to the Department of Motor. Vehicles, to ensure that the evidence associated with the transaction continues to exist in the event a criminal investigation is initiated.

Finally, the bill would specifically require scrap processors to comply with the federal law mandating entry of Vehicle Identification Numbers and other information into the National Motor Vehicle Title Information System, so that a failure to do so is not only a federal violation but also a State misdemeanor, strengthening the ability of local law enforcement to monitor and ensure compliance.

By making these changes to the General Business Law and Vehicle and Traffic Law, the bill would narrow the potential population of stolen vehicles and make it much harder for thieves to sell them for their scrap value.

Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.