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

                                  2033

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2015
                               ___________

Introduced by M. of A. WEPRIN -- read once and referred to the Committee
  on Insurance

AN  ACT  to  amend the insurance law, the penal law, and the vehicle and
  traffic law, in relation to insurance fraud; and to repeal subdivision
  1 of section 502 of the vehicle and traffic law relating  to  applica-
  tions for licenses

  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 INDIVIDUALS
THAT OPERATE MOTOR VEHICLES WITH NO INSURANCE COVERAGE, AND MOTOR  VEHI-
CLE  INSUREDS  WHO  MISREPRESENT THE PRINCIPAL PLACE WHERE INSURED MOTOR
VEHICLES ARE GARAGED AND  OPERATED.  OPERATING  MOTOR  VEHICLES  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 LIABILITY RISK AND
INSURANCE PREMIUM COSTS.
  S 2. Subsection (a) of section 405 of the insurance law, as amended by
section 7 of part A of chapter 62 of the laws of  2011,  is  amended  to
read as follows:
  (a)  Any  person  licensed or registered pursuant to the provisions of
this chapter, and any person engaged in the  business  of  insurance  or
life  settlement  in this state who is exempted from compliance with the
licensing requirements of this chapter, including  the  state  insurance
fund  of  this state, who has reason to believe that an insurance trans-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03886-01-5
              

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action or life settlement act may be fraudulent, or has knowledge that a
fraudulent insurance transaction or fraudulent life  settlement  act  is
about  to take place, or has taken place shall, within thirty days after
determination  by such person that the transaction appears to be fraudu-
lent, send to the superintendent on a form prescribed by the superinten-
dent, the information requested by the form and such additional informa-
tion relative to the factual circumstances of the  transaction  and  the
parties  involved  as the superintendent may require. The superintendent
shall accept reports of suspected fraudulent insurance  transactions  or
fraudulent life settlement acts from any self insurer, including but not
limited  to  self  insurers providing health insurance coverage or those
defined in section fifty of the workers'  compensation  law,  and  shall
treat  such reports as any other received pursuant to this section.  THE
SUPERINTENDENT SHALL ACCEPT REPORTS OF  SUSPECTED  FRAUDULENT  INSURANCE
TRANSACTIONS  FROM  ANY SELF INSURER INCLUDING, BUT NOT LIMITED TO, SELF
INSURERS PROVIDING HEALTH  INSURANCE  COVERAGE,  THOSE  PROVIDING  MOTOR
VEHICLE  LIABILITY  INSURANCE  OR  THOSE DEFINED IN SECTION FIFTY OF THE
WORKERS' COMPENSATION LAW, AND SHALL TREAT SUCH  REPORTS  AS  ANY  OTHER
RECEIVED PURSUANT TO THIS SECTION.
  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.  Subdivision 5 of section 170.10 of the penal law is amended  and
a new subdivision 6 is added to read as follows:
  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 5. 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

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  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  6.  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  7.  Subdivision 1 of section 176.05 of the penal law, as amended by
chapter 211 of the laws of 2011, is amended to read as follows:
  1. any written statement as part of, or in support of, an  application
for  the issuance of, or the rating of a commercial insurance policy, or
certificate or evidence of self insurance  for  commercial  OR  PERSONAL
insurance  or  commercial  OR  PERSONAL  self  insurance, or a claim for
payment or other benefit pursuant to an insurance policy or self  insur-
ance  program  for commercial or personal insurance that he or she knows
to:
  (a) contain materially false information concerning any fact  material
thereto; or
  (b) conceal, for the purpose of misleading, information concerning any
fact material thereto; or
  S 8. 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 9. 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.

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  S  10.  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
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

A. 2033                             5

years of age AND HAS SIGNED SUCH APPLICATION ATTESTING TO THE TRUTH  AND
VERACITY OF THE FACTS STATED THEREIN.
  S  11. Subdivision 1 of section 502 of the vehicle and traffic law, as
separately amended by chapters 465 and 487  of  the  laws  of  2012,  is
REPEALED and a new subdivision 1 is added to read as follows:
  1.  APPLICATION  FOR LICENSE. APPLICATION FOR A DRIVER'S LICENSE SHALL
BE MADE TO THE COMMISSIONER. THE FEE PRESCRIBED BY LAW MAY BE  SUBMITTED
WITH SUCH APPLICATION. THE APPLICANT SHALL FURNISH SUCH PROOF OF IDENTI-
TY,  AGE, ADDRESS OF HIS OR HER RESIDENCE AND FITNESS AS MAY BE REQUIRED
BY THE COMMISSIONER.  WHEN PROVIDING HIS OR HER  ADDRESS  OF  RESIDENCE,
THE  APPLICANT  SHALL  PROVIDE  THE  STREET  ADDRESS  AT WHICH HE OR SHE
RESIDES.  EACH APPLICANT SHALL SIGN HIS OR HER APPLICATION ATTESTING  TO
THE TRUTH AND VERACITY OF THE FACTS STATED THEREIN. THE COMMISSIONER MAY
ALSO  PROVIDE THAT THE APPLICATION PROCEDURE SHALL INCLUDE THE TAKING OF
A PHOTO IMAGE OR IMAGES OF THE APPLICANT IN ACCORDANCE  WITH  RULES  AND
REGULATIONS PRESCRIBED BY THE COMMISSIONER. IN ADDITION, THE COMMISSION-
ER ALSO SHALL REQUIRE THAT THE APPLICANT PROVIDE HIS OR HER SOCIAL SECU-
RITY  NUMBER  AND  SHALL  PROVIDE  SPACE  ON THE APPLICATION SO THAT THE
APPLICANT MAY REGISTER IN THE NEW YORK  STATE  ORGAN  AND  TISSUE  DONOR
REGISTRY  UNDER SECTION FORTY-THREE HUNDRED TEN OF THE PUBLIC HEALTH LAW
WITH THE FOLLOWING STATED ON THE APPLICATION IN  CLEAR  AND  CONSPICUOUS
TYPE:
  "YOU  MUST  FILL OUT THE FOLLOWING SECTION: WOULD YOU LIKE TO BE ADDED
TO THE DONATE LIFE REGISTRY? CHECK BOX FOR 'YES'  OR  'SKIP  THIS  QUES-
TION'."
  THE  COMMISSIONER  OF  THE  DEPARTMENT  OF  HEALTH  SHALL NOT MAINTAIN
RECORDS OF ANY PERSON WHO CHECKS "SKIP THIS QUESTION". FAILURE TO  CHECK
A  BOX  SHALL  NOT IMPAIR THE VALIDITY OF AN APPLICATION, AND FAILURE TO
CHECK "YES" OR CHECKING "SKIP THIS QUESTION" SHALL NOT BE  CONSTRUED  TO
IMPLY  A  WISH NOT TO DONATE. IN THE CASE OF AN APPLICANT UNDER EIGHTEEN
YEARS OF AGE, CHECKING "YES" SHALL NOT CONSTITUTE  CONSENT  TO  MAKE  AN
ANATOMICAL  GIFT  OR  REGISTRATION IN THE DONATE LIFE REGISTRY. WHERE AN
APPLICANT HAS PREVIOUSLY CONSENTED TO MAKE AN ANATOMICAL GIFT OR  REGIS-
TERED  IN  THE  DONATE  LIFE  REGISTRY, CHECKING "SKIP THIS QUESTION" OR
FAILING TO CHECK A BOX SHALL NOT IMPAIR THAT  CONSENT  OR  REGISTRATION.
THE  COMMISSIONER  SHALL  PROVIDE  SPACE  ON THE APPLICATION SO THAT THE
APPLICANT MAY REQUEST NOTATION UPON SUCH LICENSE THAT HE  OR  SHE  IS  A
VETERAN  OF  THE  UNITED STATED ARMED FORCES.  IN ADDITION, AN APPLICANT
FOR A COMMERCIAL DRIVER'S LICENSE WHO WILL OPERATE  A  COMMERCIAL  MOTOR
VEHICLE  IN  INTERSTATE COMMERCE SHALL CERTIFY THAT SUCH APPLICANT MEETS
THE REQUIREMENTS TO OPERATE A COMMERCIAL MOTOR VEHICLE, AS SET FORTH  IN
PUBLIC  LAW 99-570, TITLE XII, AND TITLE 49 OF THE CODE OF FEDERAL REGU-
LATIONS, AND ALL REGULATIONS PROMULGATED BY THE UNITED STATES  SECRETARY
OF  TRANSPORTATION  UNDER THE HAZARDOUS MATERIALS TRANSPORTATION ACT. IN
ADDITION, AN APPLICANT FOR A COMMERCIAL DRIVER'S LICENSE SHALL SUBMIT  A
MEDICAL  CERTIFICATE  AT SUCH INTERVALS AS REQUIRED BY THE FEDERAL MOTOR
CARRIER SAFETY IMPROVEMENT ACT OF 1999 AND PART 383.71(H) OF TITLE 49 OF
THE CODE OF FEDERAL REGULATIONS RELATING TO MEDICAL CERTIFICATION AND IN
A MANNER PRESCRIBED BY THE COMMISSIONER.  FOR PURPOSES OF  THIS  SECTION
AND  SECTIONS  FIVE  HUNDRED THREE, FIVE HUNDRED TEN-A, AND FIVE HUNDRED
TEN-AA OF THIS TITLE,  THE  TERMS  "MEDICAL  CERTIFICATE"  AND  "MEDICAL
CERTIFICATION"  SHALL  MEAN  A FORM SUBSTANTIALLY IN COMPLIANCE WITH THE
FORM SET FORTH IN PART 391.43(H) OF TITLE 49  OF  THE  CODE  OF  FEDERAL
REGULATIONS.  UPON A DETERMINATION THAT THE HOLDER OF A COMMERCIAL DRIV-
ER'S LICENSE HAS MADE ANY FALSE STATEMENT, WITH RESPECT TO THE  APPLICA-
TION FOR SUCH LICENSE, THE COMMISSIONER SHALL REVOKE SUCH LICENSE.

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  S  12. Subdivision 1 of section 502 of the vehicle and traffic law, as
added by section eleven of this act, is amended to read as follows:
  1.  Application  for license. Application for a driver's license shall
be made to the commissioner. The fee prescribed by law may be  submitted
with such application. The applicant shall furnish such proof of identi-
ty,  age, address of his or her residence and fitness as may be required
by the commissioner.  When providing his or her  address  of  residence,
the  applicant  shall  provide  the  street  address  at which he or she
resides.  Each applicant shall sign his or her application attesting  to
the truth and veracity of the facts stated therein. The commissioner may
also  provide that the application procedure shall include the taking of
a photo image or images of the applicant in accordance  with  rules  and
regulations prescribed by the commissioner. In addition, the commission-
er also shall require that the applicant provide his or her social secu-
rity  number  and  [shall]  provide space on the application so that the
applicant may register in the New York  state  organ  and  tissue  donor
registry  under section forty-three hundred ten of the public health law
[with the following stated on the application in clear  and  conspicuous
type:
  "You  must  fill out the following section: Would you like to be added
to the Donate Life Registry? Check box for 'yes'  or  'skip  this  ques-
tion'."
  The  commissioner  of  the  department  of  health  shall not maintain
records of any person who checks "skip this question". Failure to  check
a  box  shall  not impair the validity of an application, and failure to
check "yes" or checking "skip this question" shall not be  construed  to
imply  a  wish not to donate. In the case of an applicant under eighteen
years of age, checking "yes" shall not constitute  consent  to  make  an
anatomical  gift  or  registration in the donate life registry. Where an
applicant has previously consented to make an anatomical gift or  regis-
tered  in  the  donate  life  registry, checking "skip this question" or
failing to check a box shall not impair that  consent  or  registration.
The  commissioner  shall  provide]; AND space on the application so that
the applicant may request notation upon such license that he or she is a
veteran of the United Stated armed forces.   In addition,  an  applicant
for  a  commercial  driver's license who will operate a commercial motor
vehicle in interstate commerce shall certify that such  applicant  meets
the  requirements to operate a commercial motor vehicle, as set forth in
public law 99-570, title XII, and title 49 of the code of federal  regu-
lations,  and all regulations promulgated by the United States secretary
of transportation under the hazardous materials transportation  act.  In
addition,  an applicant for a commercial driver's license shall submit a
medical certificate at such intervals as required by the  federal  motor
carrier safety improvement act of 1999 and Part 383.71(h) of title 49 of
the code of federal regulations relating to medical certification and in
a  manner  prescribed by the commissioner.  For purposes of this section
and sections five hundred three, five hundred ten-a,  and  five  hundred
ten-aa  of  this  title,  the  terms  "medical certificate" and "medical
certification" shall mean a form substantially in  compliance  with  the
form  set  forth  in  Part  391.43(h) of title 49 of the code of federal
regulations. Upon a determination that the holder of a commercial  driv-
er's  license has made any false statement, with respect to the applica-
tion for such license, the commissioner shall revoke such license.
  S 13. This act shall take effect on  the  one  hundred  eightieth  day
after it shall have become a law, provided however, that:
  (a) section twelve of this act shall take effect October 3, 2016; and

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  (b)  sections  four, five, six, seven and eight of this act shall take
effect on the first of November next succeeding the  date  on  which  it
shall have become a law.