2023 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hundred  one  of  this chapter, registered in this state is no longer in
effect shall suspend the registration of such vehicle and  the  driver's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.