S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    181
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced by Sens. MARCHIONE, LARKIN -- read twice and ordered printed,
   and when printed to be committed to the Committee on Transportation
 
 AN  ACT  to amend the vehicle and traffic law, in relation to electronic
   proof of financial security

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Paragraph (b) of subdivision 1 of section 312 of the vehi-
 cle and traffic law, as amended by chapter 557 of the laws of  1994,  is
 amended to read as follows:
   (b)  The owner of such motor vehicle shall maintain proof of financial
 security continuously throughout the registration period and his OR  HER
 failure  to  produce proof of financial security when requested to do so
 upon demand of a magistrate, motor  vehicle  inspector,  peace  officer,
 acting  pursuant  to his OR HER special duties, or police officer, while
 such vehicle is  being  operated  upon  the  public  highway,  shall  be
 presumptive  evidence  of  operating  a  motor  vehicle without proof of
 financial security.  SUBJECT TO THE RULES OF THE COMMISSIONER,  PURSUANT
 TO PARAGRAPH (C) OF SUBDIVISION TWO OF SECTION THREE HUNDRED THIRTEEN OF
 THIS  ARTICLE,  SUCH  PROOF  OF  FINANCIAL SECURITY SHALL BE PRODUCED IN
 WRITTEN FORM OR IN ELECTRONIC FORM ON THE  OWNER'S  PORTABLE  ELECTRONIC
 DEVICE, AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION TWELVE
 HUNDRED  TWENTY-FIVE-D  OF THIS CHAPTER. INSURERS SHALL RETAIN THE RIGHT
 TO DETERMINE WHETHER TO OFFER TO  THEIR  POLICYHOLDERS  THE  ABILITY  TO
 PRODUCE  PROOF  OF  FINANCIAL  SECURITY  IN  ELECTRONIC  FORM.  Upon the
 production of proof of financial security such presumption  is  removed.
 Production  of  proof  of financial security may be made by mailing such
 proof to the court having jurisdiction in the matter, and any  necessary
 response  by  such  court  or  acknowledgement of the production of such
 proof may also be made by mail. When insurance with respect to any motor
 vehicle, other than a motorcycle, is terminated the owner shall  surren-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD04043-01-7

 S. 181                              2
 
 der  forthwith  his OR HER registration certificate and number plates of
 the vehicle to the  commissioner  unless  proof  of  financial  security
 otherwise is maintained in compliance with this article.
   §  2. Paragraph (c) of subdivision 2 of section 313 of the vehicle and
 traffic law, as amended by chapter 678 of the laws of 1997,  is  amended
 to read as follows:
   (c)  The commissioner shall promulgate regulations establishing proce-
 dures for issuance of proof of insurance and for reporting  by  insurers
 of  notices of termination and policy issuance, either electronically or
 by paper copy, at the option of the department. Such reporting shall  be
 required  for every cancellation or termination which is effective on or
 after July first, nineteen hundred  eighty-four  and  for  every  policy
 issuance  which  is  effective  on or after January first, two thousand;
 provided, however, that should the commissioner find, after  testing  of
 reporting procedures, that it would be feasible to require reporting for
 policy  cancellations, terminations or issuances effective on an earlier
 date, he OR SHE may by regulation so require reporting on  such  earlier
 date,  but  in no event shall reporting be required for cancellations or
 terminations effective prior to February first, nineteen hundred  eight-
 y-four  nor  for  policy  issuances  effective prior to September first,
 nineteen hundred ninety-nine. THE COMMISSIONER  SHALL  PROVIDE  FOR  THE
 ACCEPTANCE  OF  PROOF OF INSURANCE IN ELECTRONIC FORM ON A MOTOR VEHICLE
 OWNER'S PORTABLE ELECTRONIC DEVICE,  AS  DEFINED  IN  PARAGRAPH  (A)  OF
 SUBDIVISION TWO OF SECTION TWELVE HUNDRED TWENTY-FIVE-D OF THIS CHAPTER.
 Insurers shall cooperate fully with the commissioner in any such testing
 of reporting procedures.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law. Provided, however, that effective immediate-
 ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
 necessary for the implementation of this act on its effective  date  are
 authorized  and  directed  to  be  made  and completed on or before such
 effective date.