senate Bill S6318

2013-2014 Legislative Session

Enacts provisions to reduce the incidence of motor vehicle insurance fraud

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Jan 14, 2014 referred to insurance

S6318 - Bill Details

Current Committee:
Law Section:
Insurance Law
Laws Affected:
Amd §§401 & 2133, add §405-a, Ins L; add §231, amd §846-m, Exec L; amd §97-mm, St Fin L; amd §§170.10, 170.15, & 176.15, add §175.50, Pen L; amd §§1310, 1311 & 1349, CPLR; add §201-a, amd §401, V & T L
Versions Introduced in Previous Legislative Sessions:
2011-2012: A9037A, S988, S988A
2009-2010: S7091A

S6318 - Bill Texts

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Grants the superintendent of financial services authority to investigate fraudulent activities, such as motor vehicle operators who drive with no insurance coverage, and those who misrepresent their principal place of residence or where their motor vehicle is principally garaged and operated; authorizes the insurance frauds bureau to accept reports of suspected fraudulent insurance actions; requires insurance companies and self-insurers to report incidents of insurance fraud to the department of financial services; provides for compensation to law enforcement agencies for the prosecution of insurance fraud; directs the superintendent of state police to establish an insurance fraud reward program to those who report insurance fraud; directs the division of criminal justice services to collect and analyze information on insurance fraud; includes within the class D felony of forgery in the second degree, the forgery of a certificate of insurance or an insurance identification card; includes within the class C felony of forgery in the first degree, the forgery of 10 or more written instruments; includes within the class E felony of insurance fraud in the fourth degree, the operation of a motor vehicle in this state when the vehicle is insured in another state, but it is actually garaged in this state or the owner principally resides in this state; provides for the civil forfeiture of the proceeds of a fraudulent insurance act; requires applicants for motor vehicle registrations and driver's licenses to provide the department of motor vehicles with the address of their principal place of residence; establishes a temporary task force on motor vehicle insurance fraud.

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BILL NUMBER:S6318

TITLE OF BILL: An act to amend the insurance law, the executive law,
the state finance law, the penal law, the civil practice law and rules
and the vehicle and traffic law, in relation to insurance fraud; to
establish the temporary task force on motor vehicle insurance fraud;
and providing for the repeal of certain provisions upon the expiration
thereof

PURPOSE:

The purpose of this bill is reduce the incidence of auto insurance
fraud, including fraud committed by those who misrepresent where they
live, operate their automobile, and garage such vehicle for insurance
coverage purposes. By misrepresenting where such automobile operators
truly live and operate their motor vehicle, these persons obtain
inappropriate reductions in their auto insurance premium rates and
such costs are shifted to other law abiding automobile owners.

SUMMARY OF PROVISIONS:

Section 1: Adds a new Insurance Law section 401(d) to explicitly
expand the authority of the Superintendent of Insurance, under the
Insurance Fraud Prevention Article, to investigate fraudulent
activities with regard to motor vehicle operators who have not secured
automobile insurance coverage or who misrepresent the principle place
where such automobiles are garaged and operated.

Section 2: Amends Insurance Law section 405(a) to authorize the
Insurance Frauds Bureau to accept reports of suspected fraudulent
insurance transactions from any self insurer with regard to health
insurance coverage, motor vehicle liability coverage, or workers
compensation coverage.

Section 3: Amends Insurance Law section 2133 to expand the scope of
prohibition for any insurance company, insurance agent, broker, or
other Person who knowingly possesses, transfers or uses a., forged
insurance identification card to also include other false insurance
documents which purports to evince insurance coverage when it is not
in effect or is at limits less than those stated on the document.

Section 4: Adds a new Executive Law 231 to establish the Insurance
Fraud Reward Program under the supervision of the State Police. This
section establishes a state-wide Insurance Fraud Reward Program to pay
awards to persons who provide information that leads to the arrest and
conviction of persons guilty of fraudulent insurance acts. The
Superintendent of Police shall establish a toll-free hotline and
website to collect tips and information from the general public to
assist the State Police in the investigation and prosecution of
insurance fraud crimes. Awards from $ 1,000 up to $ 5,000 can be paid
for information leading to the arrest and conviction of insurance
fraud crimes. The State Police shall obtain money to finance this
award program from the State Police Motor Vehicle Law Enforcement
Account. Money from this account is received in part from surcharges
levied on all motor vehicle insurance policies issued in New York
pursuant to Insurance Law section 9110.


Section 5: Amends Executive Law section 846-m(2) (a) to provide that
at least 1/4 of the money received by the State Police Motor Vehicle
Law Enforcement Account (collected from a surcharge placed on all auto
insurance policies sold in New York to combat auto insurance fraud)
after January 1, 2011 shall be used to support activities undertaken
by local District Attorney's to combat auto insurance fraud.

Section 6: Amends State Finance Law section 97-mm(3), the State Police
Motor Vehicle Law Enforcement Account, to authorize funds to be used
for the Insurance Fraud Reward Program established pursuant to
Executive Law section 231.

Section 7: Amends State Finance Law section 97-mm(4) to require that
the State Police Annual Auto Theft Prevention Report also include its
efforts to curb automobile insurance fraud.

Section 8: Amends Penal Law section 170.10 to add a new (6) to the
list of documents that the forgery of is considered to be forgery in
the Second Degree. The new document that, if forged, would be forgery
in the Second Degree are certificates of insurance or an insurance
identification card.

Section 9: Amends Penal Law section 170.15 (Forgery in the First
Degree) to include as forgery in the first degree, the fraudulent
making, completion, or alteration of 10 or more written instruments
such as certificates of insurance or insurance identification cards.

Section 10: Adds a new Penal Law section 175.50 to make it a class E
felony to offer a false application for motor vehicle insurance or
registration under this provision, anyone who submits, to the
Department of Motor Vehicles or to an auto insurer (to obtain an auto
insurance Policy or insurance identification card) any document that
contains a false statement or information with regard to where such
applicant resides or where such applicant's motor vehicle is garaged
or operated and such document is used directly or indirectly to
register an automobile shall be a class E felony.

Section 11: Amends Penal Law section 176.15 which defines the term
"insurance fraud". Under this bill, the term "insurance fraud" is
expanded to include any false document used to secure either insurance
coverage, file an insurance policy claim, or obtain payment for
personal lines insurance coverages (i.e. auto and homeowners
insurance). Under current law, only false documents that are used to
secure commercial lines policies or money for claims against a
commercial lines policy (i.e general liability or business property
policies) are considered to be insurance fraud. This bill expands the
types of insurance policies that persons cannot lie about to obtain
coverage or claims payment to include personal lines coverages such as
motor vehicle liability or homeowners insurance.

Section 12: mends CPLR section 1310(4-b) to include within the
definition of "specified felony offense" the conviction of a person of
crimes of Insurance Fraud pursuant to Article 176 of the Penal Law.
CPLR Article 13-A (of which section 1310 is the definitions section of
this Article) lays out the procedure to seize ill-gotten profits from
criminal activity. Hence, illegally secured profits obtained by


persons from fraudulent insurance acts can be seized and used for
other law enforcement purposes.

Section 13: Amends CPLR section 1311(3-a) to add the commission of
crimes of insurance fraud to the list of crimes in which forfeiture
actions may be taken to seize illegally secured assets or fruits of
the crime.

Section 14: Amends CPLR section 1311(11) to give the Insurance Frauds
Bureau notice of a forfeiture of assets proceeding and stipulation or
settlement agreement of_such action-which is based on a felony of
insurance fraud.

Section 15: Amends CPLR section 1349(4) which deals with the disposal
of property obtained from a criminal activity forfeiture action so
that the Insurance Frauds Bureau of the Insurance Department can
obtain those assets. Funds secured from this source can be used to
finance the operations of the Insurance Fraud Bureau or the Insurance
Fraud Prevention program established by Insurance Law section 405-a.

Section 16: A new Vehicle & Traffic Law section 201-a is added to give
law enforcement personnel access to any individual's street address
provided to the Department of Motor Vehicles to register a motor
vehicle in this state or to obtain a driver's license in this State.
This information can be used to ensure that those who submit
information to the Department submit accurate information of their
residence and where they operate and garage their motor vehicle for
1auto insurance premium retina purposes.

Section 17: Amends Vehicle & Traffic Law section 401(1) to require
that all those who file an application to register an automobile in
New York must provide their street address where they reside if such
person uses a Post Office box for their location of residence. The
purpose of this provision is to curtail those that submit fraudulent
information on where such applicants truly reside.

Section 18: Creates a Temporary Task Force on Motor Vehicle Insurance
Fraud. The Superintendent of Insurance and Commissioner of Motor
Vehicles shall establish a working group to examine the feasibility
and cost effectiveness of developing methodologies to identify owners
and operators of motor vehicles who misrepresent the principle place
of their residence and where they operate and garage their
automobiles.

The Task Force shall have 13 members, with the Superintendent of
Insurance and Commissioner of Motor Vehicles to act as Co-Chairs. The
remaining members are to be appointed as follows: four by the
Governor, 2 by the Temporary President of the Senate, 2 by the Speaker
of the Assembly, one each respectively by each chambers minority
leaders. Task Force members should include representatives of insurers
actively writing motor vehicle insurance, insurance agents and brokers
that actively sell automobile insurance, 2 representatives of
companies that collect, disperse and synthesize data, and 2
representatives of the motor vehicle insurance buying public. The Task
Force should have its recommendations and report completed within 15
months of the effective date of this act.


JUSTIFICATION:

The purpose of this bill is to address the ever-increasing incidence
of auto insurance fraud in this state. More particularly, this bill
seeks to address insurance fraud that is perpetrated against those law
abiding operators of motor vehicles that accurately and truthfully
disclose where they reside and operate and garage their vehicles,
regardless of where they live. Some who live in high auto insurance
rate areas, such as the New York City metropolitan area, misrepresent
where they live, garage and operate their automobiles and fraudulently
maintain that they live in low insurance premium rate areas that are
either Upstate or out of state.

There is a prevalence of in-state residents misrepresenting their true
place of residence so that they can obtain much lower auto insurance
rates. Instead of disclosing their true address in high insurance
premium places such as, for example, Bronx or Kings Counties, they
state that they live in lower insurance premium rated territories such
as North Carolina, Pennsylvania, or Up-state counties that have much
lower incidents of motor vehicle theft, car accidents and judgments
relegated to motor vehicle accidents. This report is currently being
updated.

This situation while artificially lowering the insurance rates of
those who fraudulently do not disclose their true residential address,
substantially increases the insurance premiums paid by those who
truthfully disclose their actual place of residence and where they
operated and garaged their cars. This bill should bring more equity to
those who purchase auto insurance coverages in this state and ensure
that everyone pays their fair share for auto insurance coverages that
matches their actuarial risk of potential physical damage or theft of
their automobiles, risk of personal injury or liability exposure due
to judgments obtain in local courts.

LEGISLATIVE HISTORY:

A.4100 of 2011-2012 Referred to Insurance
A.10877 of 2009-2010 Referred to Insurance

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

The 60th day after becoming law with provisions.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6318

                            I N  S E N A T E

                            January 14, 2014
                               ___________

Introduced  by  Sen. O'BRIEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law, the executive law, the state  finance
  law,  the  penal law, the civil practice law and rules and the vehicle
  and traffic law, in relation to  insurance  fraud;  to  establish  the
  temporary  task  force on motor vehicle insurance fraud; and providing
  for the repeal of certain provisions upon the expiration thereof

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 401 of the insurance law is amended by adding a new
subsection (d) to read as follows:
  (D)  THE  SUPERINTENDENT  SHALL  HAVE BROAD AUTHORITY PURSUANT TO THIS
CHAPTER TO INVESTIGATE FRAUDULENT ACTIVITIES WITH REGARD TO MOTOR  VEHI-
CLE  DRIVERS  THAT  OPERATE  AUTOMOBILES WITH NO INSURANCE COVERAGE, AND
MOTOR VEHICLE  INSUREDS  WHO  MISREPRESENT  THE  PRINCIPAL  PLACE  WHERE
INSURED  MOTOR  VEHICLES ARE GARAGED AND OPERATED. OPERATING MOTOR VEHI-
CLES WITHOUT PROPER INSURANCE IN VIOLATION OF ARTICLE SIX OF THE VEHICLE
AND TRAFFIC LAW IS A SIGNIFICANT DANGER TO THE  PUBLIC  BECAUSE  DRIVERS
ARE  UNABLE  TO  COMPENSATE INDIVIDUALS FOR PERSONAL INJURIES, DEATH AND
PROPERTY DAMAGE THEY INFLICT UPON OTHERS.   FURTHERMORE,  MOTOR  VEHICLE
INSUREDS  WHO  MISREPRESENT  THE PRINCIPAL PLACE WHERE SUCH VEHICLES ARE
GARAGED AND OPERATED IMPROPERLY  SHIFT  THEIR  HIGH  LIABILITY  EXPOSURE
COSTS TO OTHER MOTOR VEHICLE INSUREDS THAT DO NOT FACE SUCH HIGH LIABIL-
ITY RISK AND INSURANCE PREMIUM COSTS.
  S  2.    The insurance law is amended by adding a new section 405-a to
read as follows:
  S 405-A.  COMPENSATION FOR REPORT OF INSURANCE FRAUD TO  LAW  ENFORCE-
MENT  AUTHORITIES.  (A)  ANY  PERSON,  OTHER  THAN  PERSONS DESCRIBED IN
SUBSECTION (A) OF SECTION FOUR HUNDRED FIVE OF THIS  ARTICLE  AND  OTHER
THAN  A PERSON WHO HAS RECEIVED AN AWARD PURSUANT TO SECTION TWO HUNDRED
THIRTY-ONE OF THE EXECUTIVE LAW, WHO HAS REASON TO BELIEVE THAT A  FRAU-
DULENT  INSURANCE  ACT PROHIBITED PURSUANT TO ARTICLE ONE HUNDRED SEVEN-
TY-SIX OF THE PENAL LAW HAS BEEN COMMITTED OR THAT AN  INSURANCE  TRANS-
ACTION  MAY  BE FRAUDULENT, OR HAS KNOWLEDGE THAT A FRAUDULENT INSURANCE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13415-01-4

S. 6318                             2

TRANSACTION IS ABOUT TO TAKE PLACE, OR HAS TAKEN PLACE MAY  REPORT  SUCH
ACT OR TRANSACTION AND ANY ADDITIONAL INFORMATION RELATIVE TO THE FACTU-
AL  CIRCUMSTANCES  OF  THE  TRANSACTION  AND THE PARTIES INVOLVED TO THE
ATTORNEY GENERAL, DISTRICT ATTORNEY OR INSURANCE FRAUDS BUREAU.
  (B)  IF THE INSURANCE FRAUDS BUREAU RECOMMENDS TO THE ATTORNEY GENERAL
OR DISTRICT ATTORNEY TO COMMENCE AN ACTION, OR IF THE  ATTORNEY  GENERAL
OR  DISTRICT  ATTORNEY COMMENCES AN ACTION BASED ON INFORMATION PROVIDED
BY A PERSON PURSUANT TO SUBSECTION (A) OF THIS SECTION, THEN SUCH PERSON
SHALL BE ENTITLED TO RECEIVE AN AWARD OF NOT MORE THAN  FIFTEEN  PERCENT
OF  THE PROCEEDS OF THE ACTION OR A SETTLEMENT OF THE CLAIM IN AN AMOUNT
NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS.   THE  ATTORNEY  GENERAL  OR
DISTRICT  ATTORNEY  SHALL  RECOMMEND  TO  THE COURT WHEN A SETTLEMENT IS
ENTERED THE AMOUNT OF SUCH AWARD. THE COURT SHALL BASE SUCH AWARD  DECI-
SION  ON THE EXTENT TO WHICH THE PERSON SUBSTANTIALLY CONTRIBUTED TO THE
PROSECUTION OF THE ACTION.
  S 3. Section 2133 of the insurance law, as amended by  chapter  77  of
the laws of 1994, is amended to read as follows:
  S  2133. [Forged] FALSE INSURANCE DOCUMENTS AND FORGED insurance iden-
tification cards. Any  insurance  company,  insurance  agent,  insurance
broker  or  other person who or which, personally or by the action of an
employee or agent, KNOWINGLY possesses, transfers or uses: (A) ANY DOCU-
MENT WHICH PURPORTS TO EVINCE INSURANCE COVERAGE WHEN SUCH  COVERAGE  IS
NOT  IN  EFFECT  OR IS IN EFFECT AT LIMITS LESS THAN THOSE STATED IN THE
DOCUMENT; OR (B) a forged insurance  identification  card  for  a  motor
vehicle, having knowledge, personally or through such employee or agent,
of  the  fact  that such insurance identification card, when issued, did
not actually represent an owner's policy of  liability  insurance  or  a
financial  security  bond  issued by an insurance company licensed to do
business in this state covering the motor  vehicle  identified  on  such
card, shall be liable for payment to the people of this state of a civil
penalty  in  a sum not exceeding one thousand dollars for the first such
violation and a sum not exceeding five thousand dollars for each  subse-
quent  violation.  For  the  purposes  of  this section the term "forged
insurance identification card" means a written insurance  identification
card  which  has  been  falsely made, completed or altered, and the term
"falsely made, completed or altered" shall have the same meaning as  set
forth in section 170.00 of the penal law.
  S  4. The executive law is amended by adding a new section 231 to read
as follows:
  S 231. INSURANCE FRAUD REWARD PROGRAM; ESTABLISHMENT.  1.  THE  SUPER-
INTENDENT  SHALL ESTABLISH A STATEWIDE INSURANCE FRAUD REWARD PROGRAM TO
PAY REWARDS FOR INFORMATION LEADING TO  THE  ARREST  AND  CONVICTION  OF
PERSONS  GUILTY  OF A FRAUDULENT INSURANCE ACT AS DEFINED IN ARTICLE ONE
HUNDRED SEVENTY-SIX OF THE PENAL LAW.
  2. THE SUPERINTENDENT SHALL CAUSE TO BE ESTABLISHED A TOLL-FREE STATE-
WIDE TELEPHONE NUMBER AND INTERNET WEBSITE FOR USE IN COLLECTING  INFOR-
MATION TO ASSIST IN THE INVESTIGATION AND PROSECUTION OF INSURANCE FRAUD
CRIMES.
  3.  THE  SUPERINTENDENT  IS AUTHORIZED TO PROVIDE REWARDS OF UP TO ONE
THOUSAND DOLLARS FOR INFORMATION LEADING TO THE ARREST AND CONVICTION OF
INDIVIDUALS GUILTY OF A FRAUDULENT INSURANCE ACT AS DEFINED  IN  ARTICLE
ONE HUNDRED SEVENTY-SIX OF THE PENAL LAW.
  4.  THE  SUPERINTENDENT IS AUTHORIZED TO PROVIDE REWARDS OF UP TO FIVE
THOUSAND DOLLARS FOR INFORMATION LEADING TO THE ARREST AND CONVICTION OF
INDIVIDUALS GUILTY OF A SPECIFIED OFFENSE IN ARTICLE ONE HUNDRED  SEVEN-
TY-SIX OF THE PENAL LAW.

S. 6318                             3

  5.  NO  PERSON  WHO  RECEIVES  COMPENSATION  PURSUANT  TO SECTION FOUR
HUNDRED FIVE-A OF THE INSURANCE LAW  SHALL  BE  ELIGIBLE  FOR  A  REWARD
PURSUANT TO THIS SECTION.
  6.  THE SUPERINTENDENT SHALL DISBURSE THE REWARDS PROVIDED FOR IN THIS
SECTION FROM THE MONEYS APPROPRIATED TO THE  DIVISION  OF  STATE  POLICE
FROM  THE STATE POLICE MOTOR VEHICLE LAW ENFORCEMENT ACCOUNT ESTABLISHED
BY SECTION NINETY-SEVEN-MM OF THE STATE FINANCE LAW, AS ADDED BY SECTION
THREE HUNDRED EIGHTY-SEVEN OF CHAPTER FIFTY-FIVE OF THE LAWS OF NINETEEN
HUNDRED NINETY-TWO.
  S 5. Paragraph (a) of subdivision 2 of section 846-m of the  executive
law,  as  amended  by  section  6 of part T of chapter 57 of the laws of
2000, is amended to read as follows:
  (a) The moneys received by the fund shall be expended in a manner that
is consistent with the plan of  operation,  pursuant  to  appropriation,
only  to reimburse costs incurred by provider agencies for pilot program
activities relating to the detection, prevention or reduction  of  motor
vehicle theft and motor vehicle insurance fraud; PROVIDED, HOWEVER, THAT
ON  AND AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN, AT LEAST ONE-QUARTER
OF THE MONEYS RECEIVED BY THE FUND SHALL  BE  DISBURSED  EXCLUSIVELY  TO
SUPPORT EFFORTS UNDERTAKEN BY DISTRICT ATTORNEYS TO DETECT, IDENTIFY AND
PROSECUTE FRAUD PERTAINING TO ARTICLE FIFTY-ONE OF THE INSURANCE LAW.
  S  6.  Subdivision  3  of  section  97-mm of the state finance law, as
amended by section 5 of part T of chapter 56 of the  laws  of  2009,  is
amended to read as follows:
  3.  Nine  million  one  hundred thousand dollars annually of the state
police motor vehicle law enforcement account, following appropriation by
the legislature and allocation by the director of the budget,  shall  be
made available for the state operation expenses of the division of state
police  including but not limited to the costs of activities relating to
the detection, prosecution or reduction of automobile theft and  related
purposes,  AND  THE  COSTS  OF THE INSURANCE FRAUD REWARD PROGRAM ESTAB-
LISHED PURSUANT TO SECTION TWO HUNDRED THIRTY-ONE OF THE EXECUTIVE  LAW.
All  other  funds  of  the  state  police  motor vehicle law enforcement
account, following appropriation by the legislature  and  allocation  by
the director of the budget, shall be made available for the state opera-
tion  expenses of the division of state police including but not limited
to the costs of activities relating to highway safety and public securi-
ty.
  S 7. Subdivision 4 of section 97-mm of the state finance law, as added
by section 8 of part T of chapter 57 of the laws of 2000, is amended  to
read as follows:
  4.  The  superintendent of state police, no later than March fifteenth
of each year, shall furnish to the governor, the speaker of the assembly
and the temporary president of  the  senate,  a  report  detailing  each
programmatic  component associated with the automobile theft AND AUTOMO-
BILE INSURANCE FRAUD prevention activities of the state police  for  the
previous year. The report shall include, but not be limited to, a break-
down  of the funds allocated to each programmatic component, including a
breakdown by personal and nonpersonal services and number of  employees,
and  the  number  of  arrests,  convictions, and vehicle recoveries. The
report shall also contain an analysis of  the  incidence  of  automobile
theft  AND AUTOMOBILE INSURANCE FRAUD for each of the state police troop
jurisdictions.
  S 8.  Subdivision 5 of section 170.10 of the penal law is amended  and
a new subdivision 6 is added to read as follows:

S. 6318                             4

  5. A prescription of a duly licensed physician or other person author-
ized  to issue the same for any drug or any instrument or device used in
the taking or  administering  of  drugs  for  which  a  prescription  is
required by law[.]; OR
  6.  A CERTIFICATE OF INSURANCE OR AN INSURANCE IDENTIFICATION CARD, AS
DEFINED IN SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC LAW.
  S 9. Section 170.15 of the penal law is amended to read as follows:
S 170.15 Forgery in the first degree.
  A person is guilty of forgery in the first degree when, with intent to
defraud, deceive or injure another, he OR SHE falsely  makes,  completes
or alters [a]:
  1. TEN OR MORE WRITTEN INSTRUMENTS; OR
  2. A written instrument which is or purports to be, or which is calcu-
lated to become or to represent if completed:
  [1.]  (A) Part of an issue of money, stamps, securities or other valu-
able instruments issued by a government or governmental instrumentality;
or
  [2.] (B) Part of an issue of stock, bonds or other instruments repres-
enting interests in or claims against a corporate or other  organization
or its property.
  Forgery in the first degree is a class C felony.
  S  10. The penal law is amended by adding a new section 175.50 to read
as follows:
S 175.50 OFFERING A FALSE APPLICATION FOR  MOTOR  VEHICLE  INSURANCE  OR
           REGISTRATION.
  A  PERSON  IS GUILTY OF OFFERING A FALSE APPLICATION FOR MOTOR VEHICLE
INSURANCE OR REGISTRATION WHEN KNOWING THAT ANY DOCUMENT HE OR SHE FILES
WITH THE DEPARTMENT OF MOTOR VEHICLES OR AN INSURER PROVIDING  LIABILITY
INSURANCE FOR A MOTOR VEHICLE CONTAINS A FALSE STATEMENT OR FALSE INFOR-
MATION  WITH REGARD TO WHERE HE OR SHE RESIDES OR WHERE HIS OR HER MOTOR
VEHICLE IS GARAGED AND OPERATED.
  OFFERING A FALSE APPLICATION FOR MOTOR VEHICLE INSURANCE OR  REGISTRA-
TION IS A CLASS E FELONY.
  S  11.  Section  176.15 of the penal law, as amended by chapter 515 of
the laws of 1986, is amended to read as follows:
S 176.15 Insurance fraud in the fourth degree.
  A person is guilty of insurance fraud in the  fourth  degree  when  he
[commits] OR SHE:
  1.  COMMITS  a  fraudulent insurance act and thereby wrongfully takes,
obtains or withholds, or attempts to wrongfully take, obtain or withhold
property with a value in excess of one thousand dollars; OR
  2. OPERATES A MOTOR VEHICLE ON A PUBLIC HIGHWAY, WHEN SUCH MOTOR VEHI-
CLE IS INSURED BY A POLICY ISSUED UNDER THE LAWS OF ANOTHER STATE,  WHEN
SUCH  PERSON  MAINTAINS  HIS OR HER PRINCIPAL RESIDENCE IN THIS STATE OR
SUCH MOTOR VEHICLE IS PRINCIPALLY GARAGED IN THIS STATE, AND SUCH INSUR-
ANCE POLICY WAS ISSUED UPON ANY WRITTEN OR ORAL STATEMENT BY SUCH PERSON
THAT HE OR SHE PRINCIPALLY RESIDES IN SUCH  OTHER  STATE  OR  THAT  SUCH
MOTOR VEHICLE IS PRINCIPALLY GARAGED IN SUCH OTHER STATE.
  Insurance fraud in the fourth degree is a class E felony.
  S  12.  Paragraph  (c) of subdivision 4-b of section 1310 of the civil
practice law and rules, as added by chapter 655 of the laws of 1990,  is
amended and a new paragraph (d) is added to read as follows:
  (c)  a  conviction  of  a  person  for  a violation of section 220.09,
220.16, 220.34 or 220.39 of the penal law, or a conviction of a criminal
defendant for a violation of section 221.30 of the penal law,  or  where
the  accusatory  instrument  charges  any such felony, conviction upon a

S. 6318                             5

plea of guilty to a felony for which the plea is otherwise authorized by
law, together with evidence which: (i) provides substantial indicia that
the defendant used the real property to engage in a  continual,  ongoing
course  of  conduct involving the unlawful mixing, compounding, manufac-
turing, warehousing, or packaging of controlled substances or where  the
conviction  is for a violation of section 221.30 of the penal law, mari-
juana, as part of an illegal trade or business for gain; and (ii) estab-
lishes, where the conviction is for possession of a controlled substance
or where the conviction is for a violation  of  section  221.30  of  the
penal  law,  marijuana, that such possession was with the intent to sell
it[.]; OR
  (D) A CONVICTION OF A PERSON OF ANY  FELONY  DEFINED  IN  ARTICLE  ONE
HUNDRED  SEVENTY-SIX OF THE PENAL LAW, OR OF AN ATTEMPT OR CONSPIRACY TO
COMMIT ANY SUCH FELONY, PROVIDED THAT SUCH ATTEMPT OR CONSPIRACY CONSTI-
TUTES A FELONY.
  S 13. Subdivision 3-a of section 1311 of the civil  practice  law  and
rules,  as  added by chapter 655 of the laws of 1990, is amended to read
as follows:
  3-a. Conviction of a person in a criminal action  upon  an  accusatory
instrument  which  includes  one  or  more  of the felonies specified in
subdivision four-b of section thirteen hundred ten of this  article,  of
any  felony other than such felonies, shall not preclude a defendant, in
any subsequent proceeding under this article where that conviction is at
issue, from adducing evidence that the conduct underlying the conviction
would not establish the elements of any of  the  felonies  specified  in
such subdivision other than the one to which the criminal defendant pled
guilty.  If the defendant does adduce such evidence, the burden shall be
upon the claiming authority to prove, by clear and convincing  evidence,
that  the conduct underlying the criminal conviction would establish the
elements of the felony specified in such subdivision. Nothing  contained
in  this  subdivision  shall  affect the validity of a settlement of any
forfeiture action negotiated between the claiming authority and a crimi-
nal defendant contemporaneously with the taking of a plea of guilty in a
criminal action to any felony defined in article ONE HUNDRED SEVENTY-SIX
OR two hundred twenty, or section 221.30 or 221.55 of the penal law,  or
to a felony conspiracy to commit the same.
  S  14. Paragraphs (a) and (b) of subdivision 11 of section 1311 of the
civil practice law and rules, as amended by section 47 of  part  A-1  of
chapter 56 of the laws of 2010, are amended to read as follows:
  (a)  Any  stipulation or settlement agreement between the parties to a
forfeiture action shall be filed with the clerk of the  court  in  which
the forfeiture action is pending. No stipulation or settlement agreement
shall  be  accepted  for filing unless it is accompanied by an affidavit
from the claiming authority that written notice of  the  stipulation  or
settlement agreement, including the terms of such, has been given to the
office  of  victim  services,  the  [state] division of criminal justice
services, and in the case of a forfeiture based on a felony  defined  in
article two hundred twenty or section 221.30 or 221.55 of the penal law,
to  the  [state  division]  OFFICE  of  ALCOHOLISM  AND  substance abuse
services. IN THE CASE OF A FORFEITURE BASED ON A FELONY DEFINED IN ARTI-
CLE ONE HUNDRED SEVENTY-SIX OF THE PENAL LAW, SUCH NOTICE SHALL ALSO  BE
GIVEN  TO  THE  INSURANCE  FRAUDS  BUREAU OF THE DEPARTMENT OF FINANCIAL
SERVICES.
  (b) No judgment or order of forfeiture shall be  accepted  for  filing
unless  it  is  accompanied  by an affidavit from the claiming authority
that written notice of judgment or order, including the terms  of  such,

S. 6318                             6

has been given to the office of victim services, the [state] division of
criminal  justice  services,  and in the case of a forfeiture based on a
felony defined in article two hundred twenty or section 221.30 or 221.55
of  the  penal  law,  to  the  [state division] OFFICE of ALCOHOLISM AND
substance abuse services. IN THE CASE OF A FORFEITURE BASED ON A  FELONY
DEFINED IN ARTICLE ONE HUNDRED SEVENTY-SIX OF THE PENAL LAW, SUCH NOTICE
SHALL  ALSO BE GIVEN TO THE INSURANCE FRAUDS BUREAU OF THE DEPARTMENT OF
FINANCIAL SERVICES.
  S 15. Subdivision 4 of section 1349 of  the  civil  practice  law  and
rules, as amended by section 48 of part A-1 of chapter 56 of the laws of
2010, is amended to read as follows:
  4.  The  claiming  authority shall report the disposal of property and
collection of assets pursuant to this section to the  office  of  victim
services,  the  [state] division of criminal justice services [and], the
[state division] OFFICE of ALCOHOLISM AND substance abuse  services  AND
THE INSURANCE FRAUDS BUREAU OF THE DEPARTMENT OF FINANCIAL SERVICES.
  S  16.  The vehicle and traffic law is amended by adding a new section
201-a to read as follows:
  S 201-A.  ACCESS  TO  INFORMATION.  THE  DEPARTMENT  SHALL  ALLOW  LAW
ENFORCEMENT PERSONNEL ACCESS TO ANY INDIVIDUAL'S STREET ADDRESS PROVIDED
PURSUANT  TO  PARAGRAPH B OF SUBDIVISION ONE OF SECTION FOUR HUNDRED ONE
AND SUBDIVISION ONE OF SECTION FIVE HUNDRED TWO OF THIS CHAPTER.
  S 17. Paragraph b of subdivision 1 of section 401 of the  vehicle  and
traffic  law,  as amended by chapter 222 of the laws of 1996, is amended
to read as follows:
  b. Every owner of a motor vehicle which shall be  operated  or  driven
upon  the  public  highways  of  this  state  shall, except as otherwise
expressly provided, cause to be presented, by mail or otherwise, to  the
office  or  a  branch office of the commissioner, or to any agent of the
commissioner, constituted as provided in this  chapter,  an  application
for  registration  addressed  to  the commissioner, and on a blank to be
prepared under the direction of and furnished by  the  commissioner  for
that  purpose,  containing: (a) a brief description of the motor vehicle
to be registered, including the name and factory number of such vehicle,
and such other facts as the commissioner shall require; (b)  the  weight
of  the  vehicle  upon which the registration fee is based if the fee is
based on weight; (c) the name and residence,  including  county  of  the
owner  of such motor vehicle, PROVIDED THAT IF THE APPLICANT USES A POST
OFFICE BOX WHEN PROVIDING A RESIDENCE ADDRESS, SUCH APPLICANT SHALL ALSO
PROVIDE THE STREET ADDRESS AT WHICH HE  OR  SHE  RESIDES;  (d)  provided
that,  if  such  motor  vehicle is used or to be used as an omnibus, the
applicant also shall so certify, and in the  case  of  an  omnibus  also
certify as to the seating capacity, and if the omnibus is to be operated
wholly  within a municipality pursuant to a franchise other than a fran-
chise express or implied  in  articles  of  incorporation  upon  certain
streets  designated  in such franchise, those facts shall also be certi-
fied, and a certified copy of such franchise furnished  to  the  commis-
sioner;  (e) provided, that, if such motor vehicle is an altered livery,
the applicant shall so furnish a certified copy of  the  length  of  the
center  panel  of such vehicle, provided, however, that the commissioner
shall require such proof, as he OR SHE may determine  is  necessary,  in
the  application  for  registration  and provided further, if the center
panel of such vehicle exceeds one hundred inches, the commissioner shall
require proof that such vehicle is in  compliance  with  all  applicable
federal  and  state  motor  vehicle safety standards; and (f) such addi-
tional facts or evidence as the commissioner may require  in  connection

S. 6318                             7

with  the  application  for registration. Every owner of a trailer shall
also make application for the registration thereof in the manner  herein
provided  for  an  application  to  register  a motor vehicle, but shall
contain a statement showing the manufacturer's number or other identifi-
cation satisfactory to the commissioner and no number plate for a trail-
er  issued  under  the  provisions  of subdivision three of section four
hundred two of this [chapter] ARTICLE shall be transferred  to  or  used
upon  any  other  trailer than the one for which number plate is issued.
The commissioner shall require proof, in the application  for  registra-
tion,  or  otherwise, as such commissioner may determine, that the motor
vehicle for which registration is applied for is  equipped  with  lights
conforming  in  all respects to the requirements of this chapter, and no
motor vehicle shall be registered unless it shall appear by such  proofs
that such motor vehicle is equipped with proper lights as aforesaid. The
said application shall contain or be accompanied by such evidence of the
ownership  of  the  motor vehicle described in the application as may be
required by the commissioner or his OR HER agent and which, with respect
to new vehicles, shall include, unless otherwise  specifically  provided
by  the  commissioner,  the manufacturer's statement of origin. Applica-
tions received by an agent of the commissioner shall be forwarded to the
commissioner as he OR SHE shall direct for filing.  No  application  for
registration  shall be accepted unless the applicant is at least sixteen
years of age AND HAS SIGNED SUCH APPLICATION ATTESTING TO THE TRUTH  AND
VERACITY OF THE FACTS STATED THEREIN.
  S  18.  Temporary task force on motor vehicle insurance fraud. (a) The
superintendent of financial services and the commissioner of motor vehi-
cles shall convene a temporary task force  on  motor  vehicle  insurance
fraud  to  examine  the feasibility and cost-effectiveness of developing
methodologies to identify owners and operators  of  motor  vehicles  who
misrepresent the principal place of their residence or where their motor
vehicles  are garaged and operated. Such task force shall develop a plan
on the feasibility of implementing a statewide registry  of  the  street
addresses  of  the owners and operators of motor vehicles in this state.
The report issued by this task force shall:
  (1) investigate the  feasibility  of  developing  and  implementing  a
statewide  registry  of the addresses of motor vehicle owners and opera-
tors;
  (2) detail the costs of establishing such a registry;
  (3) identify the parameters for entering and retrieving data from such
registry; and
  (4) evaluate the value of establishing such  registry  in  identifying
motor vehicle owners and operators who misrepresent their place of resi-
dence or where their vehicle is garaged and operated.
  (b)  The task force shall consist of 13 members. The superintendent of
financial services and the commissioner  of  motor  vehicles,  or  their
designees, shall be members of the task force and shall be the co-chairs
of the task force. A representative of the New York Automobile Insurance
Plan  shall  be a member of the task force. The remaining ten members of
the task force shall be appointed as follows: four shall be appointed by
the governor, two shall be appointed by the temporary president  of  the
senate, two shall be appointed by the speaker of the assembly, one shall
be  appointed  by  the  minority  leader of the senate, and one shall be
appointed by the minority leader of the assembly. Of such  ten  members:
three  shall be representatives of insurers actively writing motor vehi-
cle insurance in this state,  three  shall  be  representatives  of  the
insurance  agent  and  broker  community  actively selling motor vehicle

S. 6318                             8

insurance in this state, two shall be representatives of  companies  the
business of which involves collecting, dispersing and synthesizing data,
and  two  shall be representatives of the motor vehicle insurance buying
public.
  (c)  The  task  force  shall  submit  a report to the governor and the
legislature of its  findings,  conclusions  and  recommendations  within
fifteen months of the effective date of this section.
  S  19.  This  act shall take effect on the sixtieth day after it shall
have become a law, provided that section  eighteen  of  this  act  shall
expire  and  be deemed repealed eighteen months after the effective date
of this act.

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