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Vehicle and Traffic Law

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Article 6 - NY Vehicle and Traffic Law

MOTOR VEHICLE FINANCIAL SECURITY ACT

Section Description
310 Short title and declaration of purpose.
311 Definitions.
312 Registration of motor vehicles.
312-a Issuance and termination of liability insurance and maintenance of records.
313 Notice of termination.
314 Acceptance of financial security deposits.
315 Release of financial security bonds or deposits.
316 Self-insurers.
317 Expenses of administering article.
318 Revocation of registrations, drivers' licenses and non-resident privileges.
319 Penalties.
320 Notice to other jurisdictions.
321 Exceptions.
S 310. Short  title and declaration of purpose. (1) This article shall
  be known and may be cited as the "Motor Vehicle Financial Security Act."
    (2) Declaration of purpose. The  legislature  is  concerned  over  the
  rising  toll  of  motor  vehicle  accidents  and  the suffering and loss
  thereby inflicted. The legislature determines that it  is  a  matter  of
  grave  concern  that  motorists  shall be financially able to respond in
  damages for their negligent acts, so  that  innocent  victims  of  motor
  vehicle  accidents  may be recompensed for the injury and financial loss
  inflicted upon them.  The legislature finds and declares that the public
  interest can best be served in satisfying the insurance requirements  of
  this  article by private enterprise operating in a competitive market to
  provide proof of  financial  security  through  the  methods  prescribed
  herein.
    Nothing in this article shall be construed to affect any change in the
  application  of  article twenty-three of the insurance law to automobile
  liability insurance rate-making or to effect the development of  various
  methods   of  doing  or  operating  an  automobile  liability  insurance
  business.

  S 311. Definitions. As used in this article:
    1.   The  term  "superintendent"  shall  mean  the  superintendent  of
  financial services of this state.
    2. The term "motor vehicle" shall be defined as in section one hundred
  twenty-five of this chapter, except that it shall also include trailers,
  semi-trailers and tractors other  than  tractors  used  exclusively  for
  agricultural  purposes, and shall exclude fire and police vehicles, farm
  equipment,  including  self-propelled  machines  used   exclusively   in
  growing,  harvesting or handling farm produce, tractors used exclusively
  for agricultural purposes, or for snow plowing other than for hire,  and
  self-propelled   caterpillar   or  crawler-type  equipment  while  being
  operated on the contract site.
    3. The term "proof of financial security" shall mean proof of  ability
  to  respond  in  damages  for  liability  arising  out of the ownership,
  maintenance or use of a motor vehicle as evidenced by an owner's  policy
  of  liability insurance, a financial security bond, a financial security
  deposit, or qualifications as a self-insurer under section three hundred
  sixteen of this chapter  or,  in  the  case  of  a  non-resident,  under
  self-insurance  provisions  of  the  laws  of  the  jurisdiction of such
  non-resident.  Notwithstanding  any  other  provision  of  any  law   or
  regulation, any proof of financial security shall for any self-propelled
  motor  vehicle  also  provide  coverage  required by this article to any
  non-commercial trailer hauled by any such motor vehicle,  other  than  a
  mobile  home.  For  the  purposes  of  this  article,  a  mobile home or
  "manufactured home" means a mobile home or manufactured home as  defined
  in section one hundred twenty-two-c of this chapter.
    4.  The  term  "owner's  policy  of  liability insurance" shall mean a
  policy
    (a) Affording coverage as defined in the minimum provisions prescribed
  in a regulation which shall be  promulgated  by  the  superintendent  at
  least   ninety   days   prior   to  effective  date  of  this  act.  The
  superintendent before promulgating such  regulations  or  any  amendment
  thereof,  shall  consult  with all insurers licensed to write automobile
  liability insurance in  this  state  and  shall  not  prescribe  minimum
  provisions  which fail to reflect the provisions of automobile liability
  insurance policies, other  than  motor  vehicle  liability  policies  as
  defined  in  section  three  hundred  forty-five of this chapter, issued
  within this state at the date of such regulation or  amendment  thereof.
  Nothing  contained  in such regulation or in this article shall prohibit
  any insurer from affording coverage under an owner's policy of liability
  insurance more liberal than that required by  said  minimum  provisions.
  Every such owner's policy of liability insurance shall provide insurance
  subject  to  said  regulation against loss from the liability imposed by
  law for damages, including  damages  for  care  and  loss  of  services,
  because  of  bodily  injury  to  or death of any person and injury to or
  destruction of property arising out of the ownership, maintenance,  use,
  or  operation  of  a specific motor vehicle or motor vehicles within the
  state of New York, or elsewhere in the United States in North America or
  the Dominion of Canada, subject to a limit, exclusive  of  interest  and
  costs,  with  respect  to each such motor vehicle except a tow truck, of
  twenty-five thousand dollars because of bodily  injuries  to  and  fifty
  thousand dollars because of death of one person in any one accident and,
  subject  to  said  limit  for  one  person, to a limit of fifty thousand
  dollars because of bodily injury to and  one  hundred  thousand  dollars
  because  of  death  of two or more persons in any one accident, and to a
  limit of ten thousand dollars because of injury  to  or  destruction  of
  property  of  others  in  any  one accident provided, however, that such
  policy need not be for a period coterminous with the registration period
  of the vehicle insured. The limit, exclusive of interest and costs, with
  respect to a tow truck shall be a combined  single  limit  of  at  least
  three  hundred thousand dollars because of bodily injury or death to one
  or  more  persons  or  because  of  injury or destruction of property of
  others in any one accident, and  to  a  limit  of  twenty-five  thousand
  dollars  because of damage to a vehicle in the care, custody and control
  of the insured. Any insurer authorized to issue  an  owner's  policy  of
  liability  insurance  as  provided  for in this article may, pending the
  issue of such a policy, make an agreement, to be known as a  binder,  or
  may,  in  lieu of such a policy, issue a renewal endorsement or evidence
  of renewal of an existing policy; each of which shall  be  construed  to
  provide indemnity or protection in like manner and to the same extent as
  such  a  policy.  The  provisions  of  this  article shall apply to such
  binders, renewal endorsements or evidences of renewal. Every such policy
  issued insuring private passenger vehicles  and  every  renewal  policy,
  renewal  endorsement,  or  other  evidence  of renewal issued shall have
  attached thereto a rating information form which clearly  specifies  and
  defines  the  rating  classification  assigned  thereto,  including  any
  applicable merit rating plan; and
    (b) In the case of a vehicle registered in this state, a policy issued
  by an insurer duly authorized to transact business in this state; or
    (c) In the case of a vehicle lawfully registered in another state,  or
  in  both  this  state  and  another  state, either a policy issued by an
  authorized insurer, or  a  policy  issued  by  an  unauthorized  insurer
  authorized  to  transact  business in another state if such unauthorized
  insurer files with the commissioner in form to  be  approved  by  him  a
  statement  consenting  to  service of process and declaring its policies
  shall be deemed to be varied to comply with  the  requirements  of  this
  article; and
    (d) The form of which has been approved by the superintendent. No such
  policy  shall  be  issued or delivered in this state until a copy of the
  form of policy shall have been on file with the  superintendent  for  at
  least   thirty   days,   unless   sooner  approved  in  writing  by  the
  superintendent,  nor  if  within  said  period  of   thirty   days   the
  superintendent  shall  have  notified the carrier in writing that in his
  opinion, specifying the reasons therefor, the form of  policy  does  not
  comply with the laws of this state.
    5.  The term "certificate of insurance" shall mean any evidence issued
  by or on behalf of an insurance  company  duly  authorized  to  transact
  business  in  this  state,  stating in such form as the commissioner may
  prescribe or approve that such company has issued an owner's  policy  of
  liability insurance on the motor vehicle or vehicles designated therein.
  Such   certificate   shall   contain  information  as  required  by  the
  commissioner including  at  least  the  following  except  as  otherwise
  provided:
    (a) The name and address of the person to whom the policy was issued.
    (b) The number and effective period of the policy. If all of the motor
  vehicles  owned  by one person during a defined period are insured under
  the same owner's  policy  of  liability  insurance  the  certificate  of
  insurance  may  so  state and it shall then not be necessary to identify
  the specific vehicle insured. The requirements of this  article  for  an
  owner's  policy  of liability insurance may be fulfilled by the policies
  of one or more insurance carriers  which  policies  together  meet  such
  requirements.
    (c)  As to new policies, a statement that at least ten per cent of the
  annual premium due on the policy has been paid. For the purposes of this
  paragraph a transfer of insurance from one  company  to  another  by  an
  agent or broker shall not be considered the issuance of a new policy.
    6.  The  term  "financial  security  bond"  shall  mean for each motor
  vehicle a bond executed by the  owner  and  by  a  surety  company  duly
  authorized  to  transact  business  in  this  state.  The  provisions of
  subdivision (e) of section three  hundred  forty-nine  of  this  chapter
  shall apply to such bond.
    7.  The  term  "financial  security deposit" shall mean for each motor
  vehicle the  deposit  with  the  commissioner  of  twenty-five  thousand
  dollars  in  cash,  or  securities,  such as may legally be purchased by
  savings banks or trust funds, of a market value of twenty-five  thousand
  dollars  and  an  additional  deposit  in  an  amount  determined by the
  commissioner to be sufficient to satisfy  the  requirements  of  article
  fifty-one of the insurance law.
    8.  The  term  "self-insurer"  shall mean a person who shall have been
  determined by the commissioner in accordance with section three  hundred
  sixteen to be financially responsible.
    9. The word "state" when used in this article shall unless the context
  clearly  indicates otherwise, mean any state, territory or possession of
  the United States, the District of  Columbia  or  any  province  of  the
  Dominion of Canada.
    10.  "Insurance Identification Card" shall mean a card issued by or on
  behalf of an insurance company or bonding  company  duly  authorized  to
  transact   business   in  this  state,  stating  in  such  form  as  the
  commissioner may prescribe or approve that such company  has  issued  an
  owner's  policy  of  liability insurance or a financial security bond on
  the motor vehicle  or  vehicles  designated  therein.  Such  card  shall
  contain such information and shall be valid during such period as may be
  prescribed by the commissioner. If an owner shall have filed a financial
  security  deposit,  or  shall  have  qualified  as  a self-insurer under
  section three hundred sixteen  of  this  chapter,  the  term  "insurance
  identification  card"  shall  mean a card issued by the department which
  evidences that such deposit has been filed or that  such  owner  has  so
  qualified.

   S 312. Registration  of  motor vehicles. 1. (a) No motor vehicle shall
  be registered in this state unless the application for such registration
  is accompanied by proof of financial security which shall  be  evidenced
  by  proof  of  insurance  or  evidence  of  a financial security bond, a
  financial security deposit or  qualification  as  a  self-insurer  under
  section  three hundred sixteen; provided that, if directed by regulation
  of  the  commissioner,  upon  renewal  of  registration  an  application
  accompanied  by  a  certificate of registration or renewal stub in force
  immediately preceding the date of application for renewal, together with
  a statement in a form prescribed by  the  commissioner  certifying  that
  there  is  in  effect  proof  of  financial  security,  shall  meet  the
  requirements of this section. Upon the issuance or renewal of a  private
  passenger  automobile  insurance  policy  subject  to  the provisions of
  section one hundred sixty-seven-aa of the insurance law,  the  insurance
  company  shall  provide  the  insured  with  an  informational statement
  outlining the legal and  financial  consequences  of  convictions  under
  section  one thousand one hundred ninety-two of this chapter, pertaining
  to operating a motor vehicle while under the  influence  of  alcohol  or
  drugs.  Such  information  shall be supplied to the company by the state
  department of financial services in consultation with the commissioner.
    (b) The owner of such motor vehicle shall maintain proof of  financial
  security continuously throughout the registration period and his failure
  to  produce  proof  of  financial  security when requested to do so upon
  demand of a magistrate, motor vehicle inspector, peace  officer,  acting
  pursuant to his special duties, or police officer, while such vehicle is
  being operated upon the public highway, shall be presumptive evidence of
  operating  a motor vehicle without proof of financial security. Upon the
  production of proof of financial security such presumption  is  removed.
  Production  of  proof  of financial security may be made by mailing such
  proof to the court having jurisdiction in the matter, and any  necessary
  response  by  such  court  or  acknowledgement of the production of such
  proof may also be made by mail. When insurance with respect to any motor
  vehicle,  other  than  a  motorcycle,  is  terminated  the  owner  shall
  surrender  forthwith  his  registration certificate and number plates of
  the vehicle to the  commissioner  unless  proof  of  financial  security
  otherwise is maintained in compliance with this article.
    2.  No  financial  security bond shall be accepted by the commissioner
  unless it is conditioned for payments in amount and under the same terms
  and conditions as are  required  for  an  owner's  policy  of  liability
  insurance.
    3. No financial security deposit shall be accepted by the commissioner
  except  in  accordance  with  the  provisions  of  section three hundred
  fourteen.
    4. The commissioner is  hereby  authorized  to  promulgate  reasonable
  regulations  to  provide effective administration and enforcement of the
  provisions of this article in accordance with the purposes thereof.
    5. Notwithstanding any inconsistent provisions of  this  article,  the
  commissioner may by regulation, in lieu of the provisions of subdivision
  one  requiring  the submission of a certificate of insurance or evidence
  of a financial security bond, require that an  insurance  identification
  card be presented each time a vehicle is registered or a registration is
  renewed in this state.

  S 312-a. Issuance   and   termination   of   liability  insurance  and
  maintenance of records.  1.  Upon  issuance  of  an  owner's  policy  of
  liability  insurance  or  other  financial  security  required  by  this
  chapter, an insurer shall issue proof of insurance  in  accordance  with
  the  regulations  promulgated  by the commissioner pursuant to paragraph
  (b) of subdivision  two  of  section  three  hundred  thirteen  of  this
  article.
    2.  The commissioner shall make a record of all notices of termination
  received by him. After such record has been made, the notices  need  not
  be retained by the commissioner.

  S 313. Notice  of  termination. 1.  (a)  No  contract of insurance for
  which a certificate of insurance has been filed  with  the  commissioner
  shall be terminated by cancellation by the insurer until at least twenty
  days  after  mailing  to  the  named insured at the address shown on the
  policy a notice of termination by regular mail, with  a  certificate  of
  mailing,  properly endorsed by the postal service to be obtained, except
  where the cancellation is for  non-payment  of  premium  in  which  case
  fifteen  days notice of cancellation by the insurer shall be sufficient,
  provided, however, if another insurance contract has been procured, such
  other insurance contract shall, as  of  its  effective  date  and  hour,
  terminate  the  insurance previously in effect with respect to any motor
  vehicles designated in both contracts.  No  contract  of  insurance  for
  which a certificate of insurance has been filed with the commissioner in
  which  a  natural  person  is the named insured and the motor vehicle is
  used predominantly for non-business purposes shall be non-renewed by  an
  insurer  unless  at  least  forty-five,  but not more than sixty days in
  advance of the renewal date the insurer mails or delivers to  the  named
  insured  at  the  address  shown  on  the policy a written notice of its
  intention not to renew. No such contract of insurance in which the named
  insured  is  not  a  natural  person  or  the  motor  vehicle  is   used
  predominantly  for  business purposes shall be non-renewed by an insurer
  unless at least twenty days in advance of the renewal date  the  insurer
  mails  or  delivers  to  the  named  insured at the address shown on the
  policy a written notice of its intention not to renew.  All  notices  of
  non-renewal shall be sent by regular mail with a certificate of mailing,
  properly  endorsed  by  the  postal  service to be obtained. Time of the
  effective date and hour of termination stated in the notice shall become
  the end of  the  policy  period.  Every  notice  or  acknowledgement  of
  termination  for  any cause whatsoever sent to the insured shall include
  in type of which the face shall not  be  smaller  than  twelve  point  a
  statement  that proof of financial security is required to be maintained
  continuously throughout the registration period and a notice  prescribed
  by  the  commissioner  indicating  the  punitive  effects  of failure to
  maintain continuous proof of financial security and actions which may be
  taken by the insured to avoid such punitive effects.
    (b) Every insurer shall retain a copy of  the  notice  of  termination
  mailed  pursuant  to  this  chapter  and shall retain the certificate of
  mailing obtained from  the  postal  service  upon  the  mailing  of  the
  original  of  said  notice.  A  copy  of a notice of termination and the
  certificate of mailing, when kept in the regular course of the insurer's
  business, shall constitute  conclusive  proof  of  compliance  with  the
  mailing requirements of this chapter.
    2.  (a)  Upon  the  termination  of  an  owner's  policy  of liability
  insurance, other than an owner's policy of  liability  insurance  for  a
  motorcycle,  at  the  request  of  the insured or by cancellation by the
  insurer, the insurer shall file a notice of termination  with  reference
  to such policy, as opposed to any insured vehicle or vehicles under such
  policy,  with  the commissioner not later than thirty days following the
  effective date of such cancellation or other termination, in  accordance
  with  the  regulations required by paragraph (c) of this subdivision. An
  insurer shall not file a notice of  termination  with  the  commissioner
  except as required by this subdivision.
    (b)  Upon the issuance of an owner's policy of liability insurance the
  insurer shall file a notice or confirmation of issuance  with  reference
  to such policy not later than fourteen days following the effective date
  of  such issuance, and not later than seven days following the effective
  date for policies issued after  January  first,  two  thousand  one,  in
  accordance  with  the  regulations  required  by  paragraph  (c) of this
  subdivision.
    (c)   The   commissioner  shall  promulgate  regulations  establishing
  procedures for issuance of proof  of  insurance  and  for  reporting  by
  insurers   of   notices  of  termination  and  policy  issuance,  either
  electronically or by paper copy, at the option of the  department.  Such
  reporting  shall be required for every cancellation or termination which
  is effective on or after July first, nineteen  hundred  eighty-four  and
  for  every policy issuance which is effective on or after January first,
  two thousand; provided, however,  that  should  the  commissioner  find,
  after  testing  of  reporting  procedures,  that it would be feasible to
  require reporting for policy cancellations,  terminations  or  issuances
  effective  on an earlier date, he may by regulation so require reporting
  on such earlier date, but in no event shall reporting  be  required  for
  cancellations   or  terminations  effective  prior  to  February  first,
  nineteen hundred eighty-four nor for policy issuances effective prior to
  September first, nineteen hundred ninety-nine. Insurers shall  cooperate
  fully with the commissioner in any such testing of reporting procedures.
    (d)  Upon  application  by an insurer, the commissioner may extend the
  period for filing of notices of termination by such insurer  for  up  to
  fifteen  days,  and  for  seven  days for policies issued by an insurer.
  Extensions shall not be granted unless the insurer demonstrates  to  the
  satisfaction  of the commissioner that compliance with the notice period
  would result in substantial hardship to the  insurer.  The  commissioner
  shall maintain a list of extensions granted pursuant to this paragraph.
    3.  A  cancellation  or termination for which notice is required to be
  filed with the commissioner pursuant to subdivision two of this  section
  shall  not  be  effective  with  respect to persons other than the named
  insured and members of the insured's household  until  the  insurer  has
  filed  a notice thereof with the commissioner or until another insurance
  policy covering the same risk has been procured, except  that  a  notice
  filed   with   the   commissioner,  in  the  format  prescribed  by  the
  commissioner, within the period prescribed in subdivision  two  of  this
  section  shall be effective as of the date certified therein, regardless
  of whether a suspension  order  is  issued  pursuant  to  section  three
  hundred  eighteen of this article. A receipt from the department stating
  that a notice of termination has been filed shall be  deemed  conclusive
  evidence   of   such   filing.  An  insurer  shall  cooperate  with  the
  commissioner in attempting to identify persons not  in  compliance  with
  this article in cases where the information reported by the insurer does
  not correspond with records maintained by the department.
    4.  Notwithstanding  any  other  provision  of  this  article  to  the
  contrary, the commissioner shall establish a pilot program  to  maintain
  an  up-to-date  insured  vehicle  identification  database  to assist in
  identifying  uninsured  motor  vehicles.   Such   databases   shall   be
  implemented  by  the  department pursuant to standards prescribed by the
  commissioner or an agent designated by the commissioner which shall seek
  technical assistance from affected insurers and the New York  Automobile
  Insurance  Plan.  This  program  shall utilize all information collected
  pursuant to this section and shall also include the following elements:
    (a)  In  addition  to  and  in  conjunction  with  the  provisions  of
  subdivision  two  of this section, insurers that write private passenger
  or commercial motor vehicle insurance in this state shall also submit to
  the department, either electronically or by paper copy, at the option of
  the department, information that identifies  those  policies  that  have
  been  cancelled,  terminated  or  non-renewed and all policies that have
  been issued,  the  date  when  such  insurance  lapses,  and  any  other
  information   that  the  commissioner  deems  necessary  to  efficiently
  identify  and  track  uninsured  vehicles  in  this  state  such  as   a
  policyholder's  address, policy number, vehicle registration number, and
  vehicle identification number. The department may exempt from such pilot
  program  the  transfer  of  information  on  certain  classifications of
  vehicles that are in the opinion of the department generally insured and
  which it  is  difficult  to  identify  uninsured  vehicles  within  such
  classification, such as large commercial vehicle fleets;
    (b)  The  department  shall  forward to each motor vehicle insurer, at
  such times as deemed necessary and appropriate by  the  commissioner,  a
  listing  of  all  the  registrants the department has on file as insured
  with that insurer. Such insurer shall then  review  the  listing  within
  thirty days of receipt of the listing and report to the department which
  of the registrants the insurer does not insure;
    (c)  The commissioner shall, in conjunction with the superintendent of
  state police and local law enforcement officials formulate  a  means  to
  allow  such  database to be easily accessible to on-duty law enforcement
  personnel in the performance of their official duties for the purpose of
  verifying whether an operator maintains proper insurance coverage and to
  increase compliance with the motor vehicle financial security laws under
  this article and article eight of this title;
    (d) In developing the mechanism to electronically transfer information
  to  the  department,   the   commissioner   shall   consult   with   the
  superintendent   of   financial   services   and  insurers  to  adopt  a
  standardized system  of  organizing,  recording  and  transferring  such
  information  so  as  to  minimize  insurer  administrative expenses. The
  commissioner shall to the maximum  extent  possible  utilize  nationally
  recognized  electronic  data information systems such as those developed
  by the American National Standards Institute or the American Association
  of Motor Vehicle Administrators;
    (e)(1) Either simultaneously or after the up-dated database system has
  been established, the commissioner shall develop  a  computer  indicator
  that  can be imprinted on a vehicle registration sticker or on a sticker
  to be affixed to the insured's  license  plate.  Such  indicator  system
  shall enable law enforcement personnel and other authorized persons when
  acting in the course of their official duties to access the department's
  database  so  that  such  persons  can  ascertain  whether  a vehicle is
  properly insured or not insured;
    (2) Such computer indicator system shall enable authorized persons  in
  the  performance  of their official duties to access information such as
  the registrant's name, vehicle identification number, name  of  insurer,
  current  status  of  insurance,  vehicle  registration  number and other
  information that the  commissioner  deems  necessary  to  implement  the
  provisions of this section. The commissioner in developing such computer
  indicator  system  shall enable authorized persons in the performance of
  their official duties to access only such information that is  necessary
  to  detect  uninsured  motor  vehicles or accomplish other goals clearly
  established and authorized by law. Such computer indicator system  shall
  be designed to protect the personal privacy interests of motorists;
    (f) The commissioner shall maintain an insured vehicle database system
  that  is  accurate  to  within  a period of fourteen days and a computer
  indicator system described in paragraph (e) of this  subdivision  within
  twenty-four  months  of  the  effective  date of this subdivision and to
  within seven days by January first, two thousand one.  The  commissioner
  shall submit to the legislature a report within eighteen months from the
  date  this  subdivision  takes  effect which outlines the progress being
  made to implement such database and  computer  indicator  system.  After
  such  database and computer indicator system is established and put into
  operation,  the  commissioner  shall   make   recommendations   to   the
  legislature to alter, minimize or eliminate the need for the issuance of
  insurance identification cards, simplify the requirements to demonstrate
  proof  of  financial  security  and  certificate  of insurance currently
  required  by  this  article, eliminate the requirement for production of
  proof of financial security to accompany applications for  registrations
  or  renewals  thereof  provided  that  such  database indicates that the
  registrant is insured, and the repeal or modification of  section  three
  hundred  twelve-a  of  this  article.  The  commissioner shall also make
  recommendations to the legislature to streamline and shorten the  notice
  termination  requirements  of  subdivisions  one,  two and three of this
  section and section three hundred eighteen of this article. Such  report
  shall be submitted to the legislature within twelve months from the date
  such database and indicator system has been implemented;
    (g)  To  minimize  the  cost  of this program, the commissioner, if he
  deems it necessary and prudent, can initially limit the  scope  of  this
  project to a select number of vehicle classifications or insurers;
    (h)  Notwithstanding  any other provision of law, information obtained
  by the department pursuant to this section shall not be disclosed, used,
  sold, accessed, utilized in any manner or released by the department  to
  any  person,  corporation, or state and local agency, except in response
  to a  specific,  individual  request  for  such  information  authorized
  pursuant  to the federal driver's privacy protection act (18 U.S.C. 2721
  et.seq.). The department shall institute measures to  ensure  that  only
  authorized  persons  are  permitted  to  access such information for the
  purposes specified by this section. Persons  who  knowingly  release  or
  disclose  information  from such database for a purpose other than those
  described as authorized by this section or to a person not  entitled  to
  receive  it  shall  be  guilty of a misdemeanor for each such release or
  disclosure; and
    (i)  The  commissioner  may  postpone  implementation  of  such  pilot
  database  and  computer  indicator  system  for  a period of time not to
  exceed eighteen months if he or she determines that the program  is  not
  ready  for  implementation.  Should the commissioner determine that such
  system cannot be implemented during the eighteen months extension,  then
  the  commissioner  shall  report to the legislature the reasons why such
  program cannot be implemented and request that the  law  be  amended  to
  delay its implementation date.

 S 314. Acceptance  of  financial  security  deposits. 1. All moneys or
  securities delivered to the commissioner as a financial security deposit
  shall be placed by the commissioner in the custody of  the  commissioner
  of taxation and finance and shall be subject to execution to satisfy any
  judgment  for  damages  for  bodily  injury  or  death,  or injury to or
  destruction of property, arising out of the ownership, maintenance,  use
  or  operation of the motor vehicle with respect to which the deposit has
  been accepted, and subject to the same limits  on  amounts  required  by
  this  article  for an owner's policy of liability insurance, and if such
  moneys or securities shall be otherwise subjected to attachment  or  any
  execution,  the  depositor  shall  immediately  furnish  such additional
  moneys or securities, not otherwise subject to attachment or  execution,
  to meet the requirements of this article.
    2.  The  commissioner  shall not accept such moneys or securities as a
  financial security deposit unless accompanied by evidence that there are
  no unsatisfied judgments against such person registered in the office of
  the county clerk of the county where such person resides.

  S 315. Release  of  financial  security  bonds  or  deposits.  1.  The
  commissioner, upon the surrender of the registration and  number  plates
  for  a  motor vehicle for which a financial security bond or deposit was
  accepted by the commissioner, shall permit the cancellation of any  such
  bond  or  shall  direct  that  any  such  deposit  be  returned  by  the
  commissioner of taxation and finance. The commissioner shall not release
  such bond or deposit  in  the  event  any  action  for  damages  upon  a
  liability  referred  to  in this article is then pending or any judgment
  upon any such liability then outstanding  and  unsatisfied,  or  in  the
  event  the  commissioner has received notice that such person has within
  the period of three months immediately  preceding  been  involved  as  a
  driver  in  any motor vehicle accident. An affidavit of the applicant of
  non-existence of such facts shall be sufficient evidence thereof in  the
  absence of evidence to the contrary in the records of the bureau.
    2.  The commissioner, subject to such reasonable regulations as he may
  establish  shall  permit  the  form  of  proof  of  financial   security
  acceptable  under  this  article  to  be substituted for another form of
  proof of financial security which may already have been accepted by  the
  commissioner as complying with the provisions of this article.

  S 316. Self-insurers.  The  commissioner,  in his discretion, may upon
  the application of a person having registered in his name in this  state
  more   than   twenty-five   motor   vehicles,  issue  a  certificate  of
  self-insurance when he is  reasonably  satisfied  that  such  person  is
  possessed  and  will  continue  to  be possessed of financial ability to
  respond to judgments obtained against such person, arising  out  of  the
  ownership,  maintenance,  use  or  operation  of any such person's motor
  vehicles. Upon due notice and hearing,  the  commissioner  may,  in  his
  discretion   and  upon  reasonable  grounds,  cancel  a  certificate  of
  self-insurance.
    As a condition to the issuance of a certificate of self-insurance, the
  registrant shall pay annually in addition to any other fee prescribed by
  this chapter, a fee of one dollar and fifty cents for each motor vehicle
  registered in his name and the aggregate amount of such  fees  shall  be
  applied  in reduction of the assessment levied pursuant to section three
  hundred seventeen.
    As  a  further  condition  to  the  issuance  of  a   certificate   of
  self-insurance,  the  registrant  shall  pay annually in addition to any
  other fee prescribed by this  chapter,  an  amount  per  vehicle  to  be
  determined  by  the  Motor  Vehicle Accident Indemnification Corporation
  pursuant to section five thousand two hundred seven of the insurance law
  for each motor vehicle registered in his name and the  aggregate  amount
  of  such  fees  shall  be  transmitted  by the commissioner to the Motor
  Vehicle  Accident  Indemnification  Corporation  continued  pursuant  to
  section  five  thousand  two  hundred  three  of the insurance law to be
  applied in reduction of assessments levied by said corporation  pursuant
  to section five thousand two hundred seven of the insurance law.
    Notwithstanding  the provisions of any other section, for the purposes
  of this section, the term "motor vehicle" shall include "snowmobiles" as
  defined by subdivision six of S 8-0105 of the conservation law.

  S 317. Expenses  of  administering  article.  1.  The  total amount of
  expenses incurred in connection with the administration of this  article
  shall  be  paid  by  all  insurance  carriers  which  issue  policies or
  contracts of automobile bodily injury insurance risks  subject  to  this
  article  resident  or  located  in  this  state  in  accordance with the
  provisions of this section.
    2. Estimate of expenses. (a) The commissioner  annually,  as  soon  as
  practicable,  shall estimate the total amount of expenses which shall be
  incurred during the  succeeding  fiscal  year  in  connection  with  the
  administration of this article. Such expenses, in addition to the direct
  costs  of  personal  service,  shall include the cost of maintenance and
  operation, the  cost  of  retirement  contributions  made  and  workers'
  compensation  premiums paid by the state for or on account of personnel,
  rentals for space occupied in state-owned or state-leased buildings, the
  amounts paid to a city, county, town, village or the division  of  state
  police for the enforcement of orders issued pursuant to this article and
  all other direct or indirect costs.
    (b)  The  commissioner  shall  on  or before February first assess the
  total amount of such expenses,  as  so  estimated,  pro  rata  upon  all
  insurance  carriers  subject  to  the  provisions  of  this  section  in
  proportion to the premiums reported by such carriers to  the  department
  of  financial  services  for  policies or contracts of automobile bodily
  injury insurance on risks subject to this article resident or located in
  this state for the year prior to the previous calendar year.
    (c) For fiscal years beginning on  and  after  April  first,  nineteen
  hundred  eighty-three,  each  such  insurance carrier shall make partial
  payments of the assessment levied against it as follows, one-quarter  of
  the total on March tenth of the preceding fiscal year and one-quarter on
  June  tenth, one-quarter on September tenth, and the balance on December
  tenth of the fiscal year, or on such other dates as the budget  director
  may  prescribe.  Provided,  however,  that  the payment due March tenth,
  nineteen hundred eighty-three for the fiscal year beginning April first,
  nineteen hundred eighty-three shall not be required  to  be  paid  until
  June  tenth, nineteen hundred eighty-three. If the total amount due from
  any such carrier is less than one hundred dollars,  no  partial  payment
  shall  be  made  and  the  total  amount  due shall be paid on or before
  September thirtieth of the fiscal year.
    3. Final assessment. (a) The commissioner and the department of  audit
  and  control  annually,  as soon as practicable after April first, shall
  ascertain the total amount of expenses  incurred  during  the  preceding
  fiscal  year  in  connection with the administration of this article. An
  itemized statement of the expenses  so  ascertained  shall  be  open  to
  public  inspection  in  the  office  of the commissioner for thirty days
  after notice to those liable to be assessed for such expenses.
    (b) As soon as practicable after January first, each insurance carrier
  subject  to  the  provisions  of  this  section  shall  file  with   the
  commissioner a report of the total amount of gross direct premiums, less
  return  premiums thereon received during the preceding calendar year for
  policies or contracts of automobile bodily  injury  insurance  on  risks
  subject to this article resident or located in this state.
    (c)  The  commissioner shall then determine the amount of expenses due
  from each insurance carrier subject to the provisions  of  this  section
  based  upon  the  final  determination  of  total expenses and the final
  amount of premiums filed by the insurance carriers and shall notify each
  such insurance carrier of such assessment. Within thirty days of receipt
  of such notification each such carrier shall pay  the  total  amount  of
  such  assessment less the total amount paid as a result of the estimated
  assessments. If the total amount of the final assessment  is  less  than
  the  amount  already paid, such excess payment shall be refunded to such
  insurance  carrier  or  at  the  option  of  the  assessed  applied   to
  assessments  for  the  succeeding  fiscal  year  as  requested  by  such
  insurance carriers.
    (d)  To  fully  fund  such  pilot database system and bar code program
  established pursuant  to  subdivision  four  of  section  three  hundred
  thirteen  of  this article, the commissioner shall utilize the following
  three sources of revenue: (1) twenty-five percent of all civil penalties
  imposed upon persons fined pursuant  to  paragraph  (b)  of  subdivision
  one-a  of  section  three  hundred  eighteen of this article, (2) monies
  obtained from grants that may be awarded to the  commissioner  from  the
  motor  vehicle  theft  and  insurance fraud prevention fund, and (3) pro
  rata assessments upon all insurance carriers subject to  the  provisions
  of  this  section  in  proportion to the premium estimates filed by such
  carriers.
    4. The commissioner shall levy and collect such  assessments  and  pay
  the  same  into the state treasury, subject to the provisions of section
  one hundred twenty-one of the state finance law.

  S 318. Revocation of registrations, drivers' licenses and non-resident
  privileges. 1. (a) Except as otherwise provided in this subdivision, the
  commissioner,  upon receipt of evidence that proof of financial security
  for any motor vehicle, other  than  a  motorcycle  or  a  motor  vehicle
  registered  with  registration  plates  of this state issued in the year
  corresponding  to  the  model  year  date  in  which  the  vehicle   was
  manufactured pursuant to schedule G of subdivision seven of section four
  hundred  one  of  this chapter, registered in this state is no longer in
  effect shall suspend the registration of such vehicle and  the  driver's
  license  of  the  registrant,  in  accordance  with  the  provisions  of
  subdivision one-a of this section.
    (b) Such motor vehicle shall not be registered or reregistered in  the
  name  of  such  person,  or in any other name where the commissioner has
  reasonable grounds to believe that such registration  or  reregistration
  will  have  the effect of defeating the purposes of this article, and no
  other motor vehicle shall be registered  in  the  name  of  such  person
  during the period of such suspension.
    (c) Suspension shall not be made under this subdivision upon the basis
  of  a  lapse or termination of insurance if the registration certificate
  and number plates of the motor vehicle are surrendered prior to the time
  at which the termination of insurance becomes effective. Such  surrender
  shall  be  made  to  such officers of the department as the commissioner
  shall direct, but  the  registrant  at  his  option  may  surrender  the
  registration  and  number plates to any county clerk who is acting as an
  agent of the commissioner pursuant to section two hundred five  of  this
  chapter.  Such  county  clerk may accept a surrender of registration and
  number plates and require the payment of a fee  of  one  dollar  whether
  such surrender is made before or after the effective date of termination
  of  insurance. The county clerk shall retain any such fee which may have
  been collected, and shall  return  such  registration  certificates  and
  number  plates,  or  dispose  of  the  same,  only  as prescribed by the
  commissioner. For the purposes of  this  section  the  expiration  of  a
  registration  without renewal of such registration shall be deemed to be
  a surrender of registration as of the date of expiration.
    (d) Suspension shall not be made under this subdivision upon the basis
  of a lapse or termination of insurance if the vehicle has been, or  will
  be,  prior  to  the  date of such lapse or termination, removed from the
  United States in North America  and  the  Dominion  of  Canada  for  the
  purpose  of  international  traffic,  provided  that  the  owner of such
  vehicle, prior to the date of such lapse or termination, has filed  with
  the  commissioner  a  statement, in a form prescribed by him, indicating
  that the vehicle has been, or will  be,  so  removed,  and  agreeing  to
  notify  the  commissioner  immediately upon return of the vehicle to the
  United States in North America or the Dominion of Canada.  Upon  receipt
  of  the  foregoing  statement the commissioner shall restrict the use of
  the registration to  such  international  traffic  until  new  proof  of
  financial security has been secured for the vehicle.
    (e)  Suspension need not be made under this subdivision upon the basis
  of a lapse or termination of insurance if  the  period  of  time  during
  which  the  motor vehicle remained both registered and uninsured was not
  more than seven days.  The  commissioner  shall  promulgate  regulations
  governing  the  conditions under which suspension action may be withheld
  pursuant to this paragraph.
    1-a. (a) The suspension of a registration provided in subdivision  one
  of  this section shall take effect on the date specified in the order of
  suspension and shall remain in effect until the registration certificate
  and number plates of the motor vehicle  have  been  surrendered  to  the
  commissioner  and thereafter for a period of time equal to the time from
  the date of termination of  financial  security  to  the  date  of  such
  surrender  or  to  the date upon which subsequent financial security was
  obtained or to the date  on  which  the  registrant  no  longer  had  an
  insurable interest in the vehicle.
    (b)   Notwithstanding   the   provisions  of  paragraph  (a)  of  this
  subdivision, an order of suspension issued pursuant to paragraph (a)  or
  (e)  of this subdivision may be terminated if the registrant pays to the
  commissioner a civil penalty in the amount of eight dollars for each day
  up to thirty days for which financial security was not in  effect,  plus
  ten  dollars  for each day from the thirty-first to the sixtieth day for
  which financial security was not in effect, plus twelve dollars for each
  day from the sixty-first  to  the  ninetieth  day  for  which  financial
  security  was  not  in effect. Of each eight dollar penalty, six dollars
  will  be  deposited  in  the  general  fund  and  two  dollars  in   the
  miscellaneous  special  revenue  fund - compulsory insurance account. Of
  each ten dollar penalty collected, six dollars will be deposited in  the
  general fund, two dollars will be deposited in the miscellaneous special
  revenue  fund  -  compulsory insurance account, and two dollars shall be
  deposited in the dedicated highway and  bridge  trust  fund  established
  pursuant  to  section  eighty-nine-b  of  the  state finance law and the
  dedicated mass  transportation  fund  established  pursuant  to  section
  eighty-nine-c  of the state finance law and distributed according to the
  provisions of subdivision (d) of section three hundred one-j of the  tax
  law.  Of  each  twelve  dollar  penalty  collected,  six dollars will be
  deposited into the general fund, two dollars will be deposited into  the
  miscellaneous  special  revenue fund - compulsory insurance account, and
  four dollars shall be deposited in  the  dedicated  highway  and  bridge
  trust  fund  established  pursuant to section eighty-nine-b of the state
  finance law and  the  dedicated  mass  transportation  fund  established
  pursuant   to  section  eighty-nine-c  of  the  state  finance  law  and
  distributed according to the provisions of subdivision  (d)  of  section
  three  hundred one-j of the tax law. The foregoing provision shall apply
  only once during any thirty-six month period and only if the  registrant
  surrendered  the  certificate  of  registration and number plates to the
  commissioner not more than ninety days from the date of  termination  of
  financial security or submits to the commissioner new proof of financial
  security   which  took  effect  not  more  than  ninety  days  from  the
  termination of financial security.
    (c) No number plates shall be returned to the registrant  until  proof
  of financial security is submitted to the commissioner.
    (d)  The  provisions  of  this  subdivision relating to termination of
  suspension upon payment of a civil penalty  shall  be  applicable  to  a
  registrant only one time during any three year period.
    (e)   If   a   registrant  has  not  surrendered  his  certificate  of
  registration and number plates or  obtained  financial  security  within
  ninety  days  from  the  date  of termination of financial security, the
  commissioner shall suspend the driver's license of any such  registrant.
  Such  suspension  shall  take effect on the date specified in such order
  and shall remain in effect from the date of surrender  of  such  license
  and  thereafter  for  the  period  of  time  of  the  suspension  of the
  registrant's registration.
    (g)  Any  civil  penalty  paid  pursuant  to  paragraph  (b)  of  this
  subdivision  shall  be  separate  and  distinct  from  any civil penalty
  assessed pursuant to subdivision five of section three hundred  nineteen
  of this chapter.
    2.  (a)  The commissioner upon receipt of evidence that the owner of a
  motor vehicle  registered  in  this  state,  or  an  unregistered  motor
  vehicle,  has  operated,  or permitted such motor vehicle to be operated
  upon the public highways of this or  any  other  state  while  proof  of
  financial security was not in effect with respect to such vehicle, shall
  revoke  the  registration,  if  any,  of  the  vehicle  and the driver's
  license, if any, of such owner.
    (b)  Such  motor  vehicle  shall not be registered in the name of such
  person, or in any other  name  where  the  commissioner  has  reasonable
  grounds  to  believe  that  such  registration  will  have the effect of
  defeating the purpose of this article, and no other motor vehicle  shall
  be  registered  in  the  name  of  such person, nor any driver's license
  issued to such person, for a period of one year from the  date  of  such
  revocation.
    3. (a) The commissioner, upon receipt of evidence that a person, other
  than  the  owner,  has operated upon the public highways of this state a
  motor vehicle  registered  in  this  state,  or  an  unregistered  motor
  vehicle,  with  knowledge  that  proof  of financial security was not in
  effect with respect to such vehicle, shall revoke the  driver's  license
  of  such  person,  or  if he is a non-resident, the non-resident driving
  privileges of such person.
    (b) No new driver's license shall be issued, or  non-resident  driving
  privilege restored to such person for a period of one year from the date
  of such revocation.
    (c)  This subdivision shall not apply to any person who at the time of
  operation of such motor vehicle had in effect an  operator's  policy  of
  liability  insurance,  as  hereinafter  defined,  with  respect  to  his
  operation of such vehicle or to a police officer or member of the  state
  police  who  is compelled to assume the custody and operation of a motor
  vehicle of another because such motor vehicle was  (1)  stolen  from  or
  lost  by  the  owner,  (2)  abandoned,  either by the owner or any other
  person with or without the owner's consent, (3) is being operated  by  a
  person  disabled  so as not to be able to operate it properly, or (4) is
  being operated by an intoxicated person.
    4. (a) The commissioner, upon receipt of evidence that the owner of  a
  motor  vehicle  not  registered  in this state has operated or permitted
  such motor vehicle to be operated upon the public highways of this state
  while proof of financial security was not in effect with respect to such
  vehicle, shall revoke such  person's  privilege  to  operate  any  motor
  vehicle  in  this  state  and the privilege of the operation within this
  state of any motor vehicle owned by him.
    (b) Such non-resident privileges shall not be restored for a period of
  one year from the date of such revocation.
    5. (a) The commissioner, upon receipt of evidence that a person, other
  than the owner of the vehicle, has operated upon the public highways  of
  this  state a motor vehicle not registered in this state, with knowledge
  that proof of financial security was not in effect with respect to  such
  vehicle  shall revoke the driver's license of such person, or if he is a
  non-resident, the non-resident privileges of such person.
    (b) No new driver's license shall be issued, or non-resident privilege
  restored to such person for a period of one year from the date  of  such
  revocation.
    (c)  This subdivision shall not apply to any person who at the time of
  operation of such motor vehicle had in effect an  operator's  policy  of
  liability  insurance,  as  hereinafter  defined,  with  respect  to  his
  operation of such motor vehicle or to a police officer or member of  the
  state  police  who is compelled to assume the custody and operation of a
  motor vehicle of another because such motor vehicle was (1) stolen  from
  or  lost  by  the owner, (2) abandoned, either by the owner or any other
  person with or without the owner's consent, (3) is being operated  by  a
  person  disabled  so as not to be able to operate it properly, or (4) is
  being operated by an intoxicated person.
    6.  Notice  of revocation pursuant to this section may be given to the
  owner of a vehicle registered in this state or to a driver  licensed  in
  this state, by mailing the same to such owner or licensee at the address
  contained  in  the  certificate of registration for the vehicle owned by
  such person or to the address contained on his or her driving license or
  to the current address provided by the United States postal service.
    7. Failure of such owner or  licensee  to  deliver  a  certificate  of
  registration,  number  plates  or  driver's  license to the commissioner
  after revocation thereof or  as  otherwise  provided  in  section  three
  hundred twelve shall constitute a misdemeanor.
    8.  An  operator's  policy  of  liability  insurance,  as used in this
  section, shall mean  a  policy  issued  by  an  insurance  carrier  duly
  authorized  to  transact  business  in  the state which shall insure the
  person named therein as insured, against loss from the liability imposed
  upon him by law for damages, including damages  for  care  and  loss  of
  services,  because of bodily injury to or death of any person and injury
  to or destruction of property arising out of the use by him of any motor
  vehicle not owned by him, subject to the  same  minimum  provisions  and
  approval required by subdivision four of section three hundred eleven of
  this  chapter, with respect to an owner's policy of liability insurance.
  With respect to a non-resident, such policy may  also  be  issued  by  a
  non-admitted insurance carrier provided the requirements of this article
  with  respect to issuance of an owner's policy of liability insurance by
  such carrier have been met.
    9. (a) If a motor vehicle has been involved in an  accident,  and  its
  registration or the driver's license of its operator, or both, have been
  revoked  pursuant  to  this  section,  then neither such vehicle nor any
  other motor vehicle shall be registered or reregistered in the  name  of
  its  owner  or  of any other person legally responsible for its use, nor
  shall any driver's license be issued to such owner, person  or  operator
  until  one year has passed since the date of such revocation and, as the
  case may be, the commissioner has received  the  payments  and  evidence
  required by paragraph (c) below.
    (b)  If a motor vehicle not registered in this state is involved in an
  accident in this state and the privilege of its  operation  within  this
  state  has  been  revoked,  then  neither  its owner, any person legally
  responsible for its use nor its operator shall exercise the privilege of
  the operation of such vehicle within this  state  or  the  privilege  of
  operation  within  this  state  of any motor vehicle, until one year has
  passed since the date of  revocation  and,  as  the  case  may  be,  the
  commissioner  has  received the payments and evidence as required in (c)
  below.
    (c) The payments and evidence referred to in paragraphs  (a)  and  (b)
  above shall be evidence, satisfactory to the commissioner,
    (1)  That  no  cause  of  action based upon such accident against such
  owner, person legally responsible or operator has been commenced  within
  a  period of one year from the date of the accident or a release thereof
  has been given to such owner, person or operator, or
    (2) That no judgment arising out of such cause of action  for  amounts
  within the limits stated in paragraph (a) of subdivision four of section
  three  hundred  eleven  against  such  owner, person or operator remains
  unsatisfied, except that such registration and licensing privileges  may
  be  restored on compliance with the procedures permitting the payment of
  a judgment in installments provided in section three hundred thirty-four
  and
    (3) That all civil penalties required to be  paid  to  the  department
  pursuant  to the provisions of subdivision five of section three hundred
  nineteen of this chapter have been paid.
    10. The provisions of subdivision seven of section five hundred ten of
  this chapter shall apply to a revocation under this article.
    11.  (a)  Where  the  license  or  privileges  of  any  person, or the
  registration of a  motor  vehicle  registered  in  his  name,  has  been
  suspended  or  revoked  under article six of this chapter, and the motor
  vehicle accident indemnification corporation or an insurer has paid  any
  amount  towards  satisfaction  of a judgment against such person, or has
  obtained a judgment against such person as a result of payments made  to
  third   parties  such  license,  privileges  or  registration  shall  be
  suspended, or the suspension or revocation thereof shall  be  continued,
  as provided in this subdivision.
    (b)  If the license, privileges or registration of such person has not
  been restored, the suspension or revocation thereof shall  be  continued
  pending  the  satisfaction  of the requirements of paragraph (d) of this
  subdivision.
    (c) If the license, privileges or registration of such person has been
  restored, the commissioner shall suspend such license or privilege,  and
  may   suspend   such  registration,  pending  the  satisfaction  of  the
  requirements of paragraph (d) of this subdivision.
    (d) Such suspensions and revocations shall  be  continued  until  such
  person  has  repaid  to the corporation or to such insurer any amount so
  paid by it together with interest thereon at six per  centum  per  annum
  from  the  date  of  such  payment,  unless  such  person submits to the
  procedure provided for the payment of judgments  in  installments  under
  section three hundred thirty-four of this chapter.
    (e)  A  discharge  in  bankruptcy  shall  not  relieve a person of the
  penalties and disabilities provided in this article.
    12. (a) If the owner or operator of a  motor  vehicle  in  any  manner
  involved  in  an  accident occurring in this state resulting in death or
  bodily injuries to any person fails to produce satisfactory evidence  as
  proof of financial security within forty-eight hours after the accident,
  the motor vehicle shall be subject to impoundment and any peace officer,
  acting  pursuant  to  his  special  duties,  or  any  police  officer is
  authorized to impound and  store  such  motor  vehicle.  If  said  motor
  vehicle  is subject to impoundment and is not so impounded, the owner or
  his representative shall cause said motor vehicle  to  be  stored  in  a
  public garage or storage place in this state as selected by the owner or
  representative  and  shall  continue such storage for the period of time
  provided in this section. The aforementioned  storage  shall  constitute
  "impoundment" within the meaning of this section. The cost of storage of
  any such impounded motor vehicle shall be borne by the owner. So long as
  the impoundment is in force no person shall remove the impounded vehicle
  or permit it to be removed from its place of impoundment except upon the
  order of the commissioner.
    (b)  Immediately  upon  impoundment,  the  owner or his representative
  shall:
    1. Notify the bailee of the impounded motor vehicle of the  fact  that
  the same is stored as an impounded vehicle,
    2.  Notify  the commissioner in writing of the street address and city
  or municipality where said motor vehicle is stored, and
    3. If the owner is a resident of this state, return  the  registration
  certificate  and  registration plates with respect to such motor vehicle
  to the commissioner.
    If the owner or his representative fails to store said  motor  vehicle
  as  required  by  subdivision  (a) and fails to return such registration
  certificate and registration plates, the commissioner is  authorized  to
  direct  any  peace  officer  acting  pursuant  to his special duties, or
  police officer to impound and store said motor vehicle at the expense of
  the  owner  and  to  take possession of the registration certificate and
  registration plates and return the same to  the  commissioner  of  motor
  vehicles.
    (c)  The  impoundment  shall  continue  until  (1)  there  is  a final
  disposition of the claim for death  or  bodily  injury  of  the  person,
  resulting from the accident in which said motor vehicle was involved, by
  payment of a judgment or settlement by the owner, or by a final judgment
  in his favor, or (2) one year has elapsed since the date of the accident
  and  no  filing  has  been  made  pursuant  to section five thousand two
  hundred eight of the insurance law,  or  (3)  a  release  of  the  motor
  vehicle  upon  order of the commissioner. The commissioner may order the
  release of said motor vehicle upon the depositing with the  commissioner
  of taxation and finance of security or a bond in such form and amount as
  may  be  approved  by  the  commissioner.  If  said motor vehicle is not
  released from impoundment after the lapse of one year, the  commissioner
  may dispose of it by public sale and remit the proceeds from the sale to
  the  commissioner  of  taxation and finance to be held pending the final
  disposition of the claim.
    (d) If repairs to an impounded motor vehicle are desired by the owner,
  he, with the permission of the commissioner,  may  authorize  the  motor
  vehicle  to  be taken to such repair shop or garage as he may select for
  the  purpose  of  having  it  repaired  at  the  owner's  expense.  Upon
  completion  of  such  repairs,  the  motor vehicle shall be impounded as
  provided in subdivision (a).
    Where the commissioner is satisfied  by  such  evidence  as  he  deems
  sufficient,  that  any  motor  vehicle  is  so damaged that it cannot be
  restored to operable condition, he may, in  his  discretion,  upon  such
  conditions  as  he  deems  proper,  consent to the release of said motor
  vehicle from impoundment.
    (e) No owner of a motor vehicle subject to impoundment hereunder shall
  transfer title to said motor vehicle nor his interest therein unless  he
  furnishes   to  the  commissioner  security,  in  an  amount  which  the
  commissioner is satisfied is equivalent to the value of said vehicle  or
  his interest therein.
    (f)  Nothing  herein  contained shall affect the rights or remedies of
  any person holding a prior valid lien on an impounded vehicle, including
  the right to take possession, existing at the  effective  date  of  this
  section  or  the  right  of  the  bailee  to  a  lien for storage of the
  impounded vehicle; provided, that such person shall, after the  sale  of
  such  vehicle  for  the  satisfaction of any liens thereon, remit to the
  commissioner as deposits of security under this article on behalf of the
  former owner or purchaser of such vehicle any sums which such  owner  or
  purchaser would otherwise be entitled to receive.
    (g)  Any  person  who  wilfully violates any of the provisions of this
  subdivision shall, in addition to any other penalty provided by law,  be
  liable  to  the people of this state for a penalty in an amount not less
  than one hundred dollars nor more than one  thousand  dollars  for  each
  violation.
    13.  (a)  Subject to the provisions of paragraph (b), no revocation or
  suspension order shall be issued pursuant to this section,  or  if  such
  revocation  or suspension order has been issued, it shall be terminated,
  if the commissioner shall determine that the  person  involved  was  not
  aware  of  the  fact  that  financial security was not in effect and the
  failure to have such financial security in effect was caused  solely  by
  the negligence or malfeasance of a person other than such person.
    (b)  The  burden  of proving lack of knowledge that financial security
  was not in effect  and  that  such  failure  resulted  solely  from  the
  negligence or malfeasance of another shall be upon the person seeking to
  avoid  revocation  or suspension action. Such facts shall be established
  by clear and convincing evidence, either by the submission of affidavits
  or at a hearing called in the discretion of the commissioner.
    14. No registration and/or license, which has been revoked pursuant to
  this  section  because  the  holder  was  convicted  of  driving without
  insurance in violation of  subdivision  one  of  section  three  hundred
  nineteen  of  this chapter, shall be restored until all civil penalties,
  required to be paid to the department  pursuant  to  the  provisions  of
  subdivision five of section three hundred nineteen of this chapter, have
  been paid.
    15.  Notwithstanding  any provisions of this section, a restricted use
  license or privilege of operating a motor vehicle in this state  may  be
  issued  to a person who has had his license or such privilege revoked or
  suspended pursuant to any provision of this section in  accordance  with
  article twenty-one-A of this chapter.
  
  S 319. Penalties.  1.  Any owner of a motor vehicle registered in this
  state, or an unregistered motor vehicle, who shall  operate  such  motor
  vehicle or permit it to be operated in this state without having in full
  force  and  effect  the financial security required by the provisions of
  this chapter and any other person who shall operate in  this  state  any
  motor  vehicle  registered  in  this  state,  or  an  unregistered motor
  vehicle, with the knowledge that the owner thereof does not have in full
  force and effect such proof of financial security, except a person  who,
  at  the  time  of  operation  of  such  motor  vehicle, had in effect an
  operator's policy of liability insurance, as defined  in  section  three
  hundred eighteen, with respect to his operation of such vehicle shall be
  guilty of a traffic infraction and upon conviction may be fined not less
  than  one  hundred  fifty dollars or more than one thousand five hundred
  dollars or may be imprisoned for not more than fifteen days or both.  In
  addition   to   the  penalties  herein  set  forth,  such  person,  upon
  conviction, shall also become liable for payment to  the  department  of
  the civil penalty provided in subdivision five of this section.
    2. When the production of an insurance identification card is required
  by  any  provision of this chapter, no person shall produce an insurance
  identification card which indicates insurance coverage which is  not  in
  effect.  In  any  prosecution or proceeding alleging a violation of this
  subdivision, it shall be an  affirmative  defense  that  the  person  so
  charged did not have knowledge that the insurance indicated on such card
  was  not  in  effect.  A  violation  of  this  subdivision  shall  be  a
  misdemeanor.
    3. Every person who operates a vehicle registered in this state, or  a
  vehicle required to be registered in this state, shall, when required by
  the commissioner's regulations, produce an insurance identification card
  when  requested  by  any  peace  officer, acting pursuant to his special
  duties, police officer or magistrate. The failure to so produce  such  a
  card  shall  be  presumptive evidence that such person was operating the
  vehicle without having in effect  financial  security  required  by  the
  provisions of this chapter.
    4. Where the commissioner finds, other than by means of the receipt of
  a certificate of conviction, that a person has violated any provision of
  subdivision  one  of  this  section, such person shall become liable for
  payment to the department of the civil penalty provided  in  subdivision
  five  of  this  section. However, the enforcement of such civil penalty,
  and of any revocation order based upon such finding, shall be stayed  at
  the request of the person against whom such civil penalty and revocation
  order  has  been  issued until after a hearing, provided such person was
  not both the operator and the owner of the motor vehicle which was being
  operated without the required financial security being in effect.  After
  such  hearing,  the  stay  of  enforcement  of  the  civil  penalty  and
  revocation order shall be vacated unless it is found by a  preponderance
  of the evidence that such person, (a) if he was the operator and not the
  owner of the motor vehicle, had no knowledge that the financial security
  required  for such motor vehicle was not in effect; or (b) if he was the
  owner and not the operator of the motor vehicle, that he did not permit,
  either expressly or impliedly, the operation of such motor vehicle.
    5. The civil penalty for  a  violation  of  subdivision  one  of  this
  section shall be seven hundred fifty dollars.

  S 320. Notice  to other jurisdictions. The commissioner shall transmit
  a certified copy of any record of any conviction under this  article  or
  of  any action taken pursuant to this article resulting in revocation of
  a non-resident's privilege to operate a motor vehicle in this  state  or
  the  privilege  of  the operation within this state of any motor vehicle
  owned by him to the motor vehicle  commissioner  or  officer  performing
  similar functions in the state in which such non-resident resides.

  S 321. Exceptions.  1.  This  article  shall  not  apply  to any motor
  vehicle for the operation of which security is required to be  furnished
  under section three hundred seventy of this chapter, including those for
  which  a  certificate  is  issued  pursuant  to  section  three  hundred
  seventy-one of this chapter or under a  similar  law  in  another  state
  except as may be provided in section three hundred seventy; to any motor
  vehicle  operated  under  a  permit  or a certificate of convenience and
  necessity issued pursuant to the transportation law, or under  a  permit
  or certificate issued by the public utility regulatory agency of another
  state;  nor to any vehicle for which a permit or certificate is in force
  pursuant to the interstate commerce act nor to any motor  vehicle  owned
  by  the  United  States,  any state or any political subdivisions of any
  state.
    2. Provided, however, that any motor vehicle exempted  in  subdivision
  one  of  this section from the provisions of any portion of this article
  shall be subject to the provisions of article fifty-one of the insurance
  law.

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