NY Veh & Traf L § 318 (2021)
2021 New York Laws VAT - Vehicle and Traffic Title 3 - Safety Responsibility; Financial Security; Equipment; Inspection; Size and Weight; and Other Provisions Article 6 - Motor Vehicle Financial Security Act 318 - Revocation of Registrations, Drivers' Licenses and Non-Resident Privileges.

§ 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pursuant to schedule G of subdivision seven of section four hundred  one  of  this chapter, registered in this state is no longer in effect shall suspend the registration of such vehicle and  the  driver's license  of  the  registrant,  in  accordance  with  the  provisions  of subdivision one-a of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 ten dollar penalty collected, eight dollars will be deposited in the general fund 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,  eight  dollars  will  be deposited  into  the general fund 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.