What's happening
This bill requires car dealerships to notify the DMV when they receive a vehicle as a trade-in, documenting the ownership change.
Why it matters
Improves vehicle ownership tracking. By requiring dealerships to notify the DMV when they accept a trade-in, the bill helps ensure state records reflect the true, current owner of each vehicle, reducing confusion or disputes over legal responsibility.
Reduces risk for previous owners. This notification process can protect individuals who trade in vehicles from being held liable for tolls, tickets, or criminal incidents involving the vehicle after it leaves their possession.
Supports law enforcement and consumer protections. Accurate and timely ownership records assist in recovering stolen vehicles, investigating crimes, and resolving consumer complaints about vehicle histories.
Streamlines administrative processes. The requirement may speed up title transfers and registrations for both dealerships and new buyers by ensuring the DMV has up-to-date information, potentially reducing paperwork delays and errors.
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Who cares
Headline styles
Dealers Must Report Registration Changes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to transportation
- Referred to transportation
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5523
2017-2018 Regular Sessions
IN SENATE
April 6, 2017
Introduced by Sen. AVELLA -- 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 requiring dealerships to notify the department of motor vehicles of the change in registration corresponding to the change of ownership when a vehicle is traded in to a dealership
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 420 of the vehicle and traffic law is amended by adding a new subdivision 9 to read as follows:
9. Provided, further, that when a dealer receives a motor vehicle, motorcycle or trailer as a trade-in from an owner, the dealer shall provide notice to the department of such transfer including the legal name of the dealer that accepted such trade.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09612-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the vehicle and traffic law, in relation to requiring dealerships to notify the department of motor vehicles of the change in registration corresponding to the change of ownership when a vehicle is traded in to a dealership
Summary of provisions
Section 1 of the bill amends section 420 of the vehicle and traffic law, adding subdivision 9, which states then when a dealer receivers a vehicle as a trade-in, the dealer must provide notice of the Department of Motor Vehicles of the details of the transfer.
Section 2 establishes an immediate effective date.
Justification
Currently, owners of vehicles who trade-in their vehicles to a dealer maintain registration on that traded vehicle while it sits on the lot, sometimes for substantial periods of time. This bill would require any vehicle dealer, upon receiving an automobile, motor cycle, or trailer, to provide notice of the transfer to the Department of Motor Vehicles.
Prior legislative history
None.
Fiscal implications for state and local governments
To be determined
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.