DMV Quarterly Meeting: Agency Says it Can Fine Unregistered Brokers

On Wednesday, during our Quarterly Meeting with the Commissioner of Motor Vehicles and his top staff, DMV officials addressed GNYADA’s top legislative issue: brokers. DMV informed GNYADA representatives, and New York’s metro dealer associations and the state association who participated in the meeting that DMV can penalize brokers that violate the Vehicle and Traffic Law and General Business Law. The agency told us they have the authority to pursue both registered and unregistered brokers who violate state law by holding a hearing and enforcing monetary penalties.

    DMV also informed us it is thoroughly reviewing a list of brokers GNYADA has compiled over many months of examining Internet advertisements. DMV has begun working through the list, which now exceeds 700 brokers, and that it has started contacting brokers individually if they have not yet registered with DMV and who don’t hold the $100,000 surety bond required by law. Agency officials also said that the majority of Brokers have failed to register.

     The Association is also working with legislators to limit the operations of brokers in the State.
 

Other Quarterly Meeting News

Electronics signatures

More and more, consumers are looking to sign documents for their vehicle purchase electronically. For years, consumers have had the option of signing documents electronically for buying homes and refinancing, and this practice has only grown in light of COVID-19. This method speeds up transactions without sacrificing document security. That’s why, over recent months, GNYADA has worked to have DMV adopt an e-signature technology for all of its forms, including the MV-50 and MV-82 and title certificates.

DMV reiterated Wednesday that they are very open to the change. Here’s what’s left to do: First, DMV has asked us to work with them to identify the best type of e-signature format that will work for dealers. Second, The agency must conduct a risk analysis on switching to an e-signature system, including how it will comply with federal regulations regarding odometer statement disclosures. It is not clear how long this will take, but GNYADA will start identifying these solutions.

Five-Day Rule

After granting a recent GNYADA request to give partnering dealers more time to submit registration and titling paperwork – from five days to ten days – DMV said it remains committed to doing the same for participants in their Dealer Plate Issuance Program. DMV noted that such a change would require an agency rule change, which involves a full public notice and comment period. GNYADA will work with the Department on language to effect this change.