Permits the retention of electronic dealer records provided that such records can be accessed and provided to a requestor during reasonable business hours.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4088
SPONSOR: Cunningham TITLE OF BILL:
An act to amend the vehicle and traffic law, in relation to permitting
the retention of electronic dealer records
PURPOSE OR GENERAL IDEA OF BILL:
To allow car dealers to retain electronic records
SUMMARY OF PROVISIONS:
Section 1 amends section 2114 of the vehicle and traffic law to allow
for dealers to retain electronic records of all forms submitted to them
in lieu of needing the physical copies
Section 2 sets the effective date
JUSTIFICATION:
Allowing car dealers to maintain electronic records instead of requiring
original physical copies is critical for streamlining operations,
enhancing efficiency, and adapting to the digital age. Firstly, elec-
tronic records offer significant advantages in terms of accessibility
and convenience. By digitizing documents such as sales contracts,
warranties, and service records, car dealers can easily retrieve and
manage information with just a few clicks. This eliminates the need for
cumbersome paper-based filing systems, reduces the risk of misplacement,
damage, or loss of documents, and enables faster processing of trans-
actions. Additionally, electronic records can be securely stored and
backed up, providing greater data security and resilience against
unforeseen events such as natural disasters or theft.
Secondly, transitioning to electronic records aligns with broader trends
towards digitization and automation in the automotive industry. As tech-
nology continues to evolve, consumers expect seamless digital experi-
ences throughout their car-buying journey. By embracing electronic
records, car dealers can offer customers a more streamlined and modern
purchasing experience, from browsing inventory online to completing
paperwork electronically. This not only enhances customer satisfaction
but also positions dealerships as innovative and customer-focused busi-
nesses in an increasingly competitive market. Furthermore, electronic
records enable dealerships to leverage data analytics and customer
relationship management (CRM) tools to gain insights into consumer pref-
erences, improve marketing strategies, and personalize the sales proc-
ess, ultimately driving business growth and profitability.
Finally, permitting electronic records can lead to cost savings and
environmental benefits for car dealerships. Maintaining physical copies
of documents requires significant resources in terms of paper, storage
space, and administrative labor. By transitioning to electronic records,
dealerships can reduce paper usage, minimize storage costs, and stream-
line administrative tasks, resulting in operational efficiencies and
cost savings. Additionally, reducing paper consumption contributes to
environmental sustainability by conserving natural resources and reduc-
ing carbon emissions associated with paper production and transporta-
tion. Overall, allowing car dealers to maintain electronic records
offers a win-win solution that improves operational efficiency, enhances
customer experience, and promotes sustainability in the automotive
industry.
PRIOR LEGISLATIVE HISTORY:
2023-24: A10077/S9558 - Referred to Transportation
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
4088
2025-2026 Regular Sessions
IN ASSEMBLY
January 31, 2025
___________
Introduced by M. of A. CUNNINGHAM -- read once and referred to the
Committee on Transportation
AN ACT to amend the vehicle and traffic law, in relation to permitting
the retention of electronic dealer records
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 2114 of the vehicle and traffic law, as added by
2 chapter 1134 of the laws of 1971, subdivision (a) as amended by chapter
3 521 of the laws of 1972 and subdivision (b) as amended by chapter 843 of
4 the laws of 1980, is amended to read as follows:
5 § 2114. Transfer to or from dealer; records. (a) If a dealer buys a
6 vehicle and holds it for resale and procures the certificate of title
7 from the owner within ten days after delivery to [him] such dealer of
8 the vehicle, [he] such dealer need not send the certificate to the
9 commissioner but, upon transferring the vehicle to another person other
10 than by the creation of a security interest, shall promptly execute the
11 assignment and warranty of title by a dealer, showing the names and
12 addresses of the transferee and of any lienholder holding a security
13 interest created or reserved at the time of the resale, in the spaces
14 provided therefor on the certificate or as the commissioner prescribes,
15 and mail or deliver the certificate to the commissioner with the
16 transferee's application for a new certificate. The assignment and
17 warranty of title by a dealer required by this section shall include a
18 statement, signed by the dealer stating either (i) any facts or informa-
19 tion known to [him] such dealer that could reasonably affect the validi-
20 ty of the title of the vehicle, or (ii) that no such facts or informa-
21 tion are known to [him] such dealer.
22 (b) Every dealer shall maintain a record in the form and for a period
23 of time the commissioner prescribes of every vehicle bought, sold or
24 exchanged by [him] such dealer, or received by [him] such dealer for
25 sale or exchange, which shall be open to inspection by a representative
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03586-01-5
A. 4088 2
1 of the commissioner, a peace officer, when acting pursuant to [his] such
2 peace officer's special duties, or a police officer during reasonable
3 business hours. All records subject to this section without exclusion
4 may be retained electronically provided the records can be accessed and
5 provided to the requestor during reasonable business hours. Records
6 retained electronically shall not be required to be retained in physical
7 form.
8 § 2. This act shall take effect immediately.
