S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5144
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 6, 2017
                                ___________
 
 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.
   § 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.
              

                                                            LBD09081-01-7

 A. 5144                             2
 
 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.
   §  3.  Section  2133 of the insurance law, as amended by chapter 77 of
 the laws of 1994, is amended to read as follows:
   § 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.
   § 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.
   § 5. Section 170.15 of the penal law is amended to read as follows:
 § 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

 A. 5144                             3
 
   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.
   §  6.  The penal law is amended by adding a new section 175.50 to read
 as follows:
 § 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.
   §  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
   § 8. Section 176.15 of the penal law, as amended by chapter 515 of the
 laws of 1986, is amended to read as follows:
 § 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.
   § 9. The vehicle and traffic law is amended by adding  a  new  section
 201-a to read as follows:
   §  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.

 A. 5144                             4
 
   §  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. 5144                             5
 
 years of age AND HAS SIGNED SUCH APPLICATION ATTESTING TO THE TRUTH  AND
 VERACITY OF THE FACTS STATED THEREIN.
   §  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  HEALTH SHALL NOT MAINTAIN RECORDS OF ANY PERSON
 WHO CHECKS "SKIP THIS QUESTION". EXCEPT WHERE THE APPLICATION IS MADE IN
 PERSON OR ELECTRONICALLY, 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 REGISTERED IN THE  DONATE  LIFE  REGISTRY,
 CHECKING "SKIP THIS QUESTION" OR FAILING TO CHECK A BOX SHALL NOT IMPAIR
 THAT CONSENT OR REGISTRATION. IN ADDITION, AN APPLICANT FOR A COMMERCIAL
 DRIVER'S  LICENSE  WHO WILL OPERATE A COMMERCIAL MOTOR VEHICLE IN INTER-
 STATE 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 REGULATIONS,  AND
 ALL  REGULATIONS PROMULGATED BY THE UNITED STATES SECRETARY OF TRANSPOR-
 TATION 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 CERTIF-
 ICATION" 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 DRIVER'S LICENSE
 HAS MADE ANY FALSE STATEMENT, WITH RESPECT TO THE APPLICATION  FOR  SUCH
 LICENSE, THE COMMISSIONER SHALL REVOKE SUCH LICENSE.
   §  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:

 A. 5144                             6

   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 health shall not maintain records  of  any  person
 who checks "skip this question". Except where the application is made in
 person  or  electronically,  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 registered in the donate life registry,
 checking "skip this question" or failing to check a box shall not impair
 that consent or registration]. In addition, an applicant for  a  commer-
 cial  driver's  license  who  will operate a commercial motor vehicle in
 interstate commerce shall certify that such applicant meets the require-
 ments to operate a commercial motor vehicle, as set forth in public  law
 99-570,  title XII, and title 49 of the code of federal regulations, and
 all regulations promulgated by the United States secretary of  transpor-
 tation 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  certif-
 ication" 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  driver's  license
 has  made  any false statement, with respect to the application for such
 license, the commissioner shall revoke such license.
   § 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, 2017; and
   (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.