NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4066
SPONSOR: Cunningham TITLE OF BILL:
An act to amend the vehicle and traffic law, in relation to requiring
the acceptance of electronic signatures on any document
PURPOSE OR GENERAL IDEA OF BILL:
To allow for electronic signatures to be accepted by dealers and the DMV
SUMMARY OF PROVISIONS:
Section '1 ads title 11-a to the vehicle and traffic law which includes
the following provisions
§ 2500 sets the definitions for "document", "electronic signature", and
"electronic", and "physical odometer"
§ 2501 requires the commissioner of the DMV to accept electronic signa-
tures § 2502 set requirements and limitations
§ 2503 exempts the use of electronic signature for anything other than
linking ownership
§ 2504 establishes that this precedent will prevail over other conflict-
ing provisions on electronic signatures
Section 2 sets the effective date
JUSTIFICATION:
Requiring the Commissioner of the New York Department of Motor Vehicles
(DMV) to accept electronic signatures for car dealership records offers
numerous benefits for both businesses and consumers. Firstly, it
simplifies and expedites the transaction process, making it more conven-
ient for all parties involved. With the prevalence of digital technolo-
gies, consumers increasingly expect streamlined and efficient inter-
actions when purchasing vehicles. Allowing electronic signatures
eliminates the need for physical paperwork, reducing the time and effort
required to complete transactions. This not only improves the overall
customer experience but also enhances operational efficiency for car
dealerships, enabling them to process sales more quickly and effec-
tively.
Secondly, accepting electronic signatures enhances data security and
integrity. Digital signature technology employs advanced encryption
techniques to verify the authenticity and integrity of electronic docu-
ments. By adopting electronic signatures, the DMV and car dealerships
can ensure that signed records are tamper-proof and legally binding,
protecting against fraud and unauthorized alterations. This instills
greater trust and confidence in the validity of electronic transactions,
mitigating risks for both businesses and consumers. Additionally, elec-
tronic signatures facilitate the electrOnic storage and retrieval of
records, reducing the reliance on paper-based filing systems and mini-
mizing the risk of document loss or damage.
Furthermore, requiring the Commissioner of the DMV to accept electronic
signatures promotes environmental sustainability and cost savings. The
transition to electronic signatures reduces paper usage, thereby
conserving natural resources and minimizing waste. This aligns with New
York State's broader sustainability goals and commitment to reducing its
environmental footprint. Additionally, the adoption of electronic signa-
tures reduces administrative overhead associated with printing, storing,
and managing paper documents. By embracing digital technologies, the DMV
and car dealerships can achieve greater operational efficiency, reduce
operating costs, and contribute to a more sustainable and environ-
mentally friendly business practices. Overall, mandating the acceptance
of electronic signatures represents a forward-thinking approach to
modernizing and improving the efficiency of vehicle transactions in New
York State.
PRIOR LEGISLATIVE HISTORY:
2023-24: A10076/S9561 - Referred to Transportation
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
Immediately.
