Senate Bill S3895

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

                                  3895

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 20, 2015
                               ___________

Introduced by Sen. MARCHIONE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Transportation

AN  ACT  to amend the vehicle and traffic law, in relation to electronic
  proof of financial security

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

  Section  1. Paragraph (b) of subdivision 1 of section 312 of the vehi-
cle and traffic law, as amended by chapter 557 of the laws of  1994,  is
amended to read as follows:
  (b)  The owner of such motor vehicle shall maintain proof of financial
security continuously throughout the registration period and his OR  HER
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 OR HER 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.  SUBJECT TO THE RULES OF THE COMMISSIONER,  PURSUANT
TO PARAGRAPH (C) OF SUBDIVISION TWO OF SECTION THREE HUNDRED THIRTEEN OF
THIS  ARTICLE,  SUCH  PROOF  OF  FINANCIAL SECURITY SHALL BE PRODUCED IN
WRITTEN FORM OR IN ELECTRONIC FORM ON THE  OWNER'S  PORTABLE  ELECTRONIC
DEVICE, AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION TWELVE
HUNDRED  TWENTY-FIVE-D  OF THIS CHAPTER. INSURERS SHALL RETAIN THE RIGHT
TO DETERMINE WHETHER TO OFFER TO  THEIR  POLICYHOLDERS  THE  ABILITY  TO
PRODUCE  PROOF  OF  FINANCIAL  SECURITY  IN  ELECTRONIC  FORM.  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  surren-
der  forthwith  his OR HER registration certificate and number plates of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08860-01-5
              

S. 3895                             2

the vehicle to the  commissioner  unless  proof  of  financial  security
otherwise is maintained in compliance with this article.
  S  2. Paragraph (c) of subdivision 2 of section 313 of the vehicle and
traffic law, as amended by chapter 678 of the laws of 1997,  is  amended
to read as follows:
  (c)  The commissioner shall promulgate regulations establishing proce-
dures 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 OR SHE 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  eight-
y-four  nor  for  policy  issuances  effective prior to September first,
nineteen hundred ninety-nine. THE COMMISSIONER  SHALL  PROVIDE  FOR  THE
ACCEPTANCE  OF  PROOF OF INSURANCE IN ELECTRONIC FORM ON A MOTOR VEHICLE
OWNER'S PORTABLE ELECTRONIC DEVICE,  AS  DEFINED  IN  PARAGRAPH  (A)  OF
SUBDIVISION TWO OF SECTION TWELVE HUNDRED TWENTY-FIVE-D OF THIS CHAPTER.
Insurers shall cooperate fully with the commissioner in any such testing
of reporting procedures.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law. Provided, however, that effective immediate-
ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
necessary for the implementation of this act on its effective  date  are
authorized  and  directed  to  be  made  and completed on or before such
effective date.