N.Y. Vehicle & Traffic Law § 317: Expenses of administering article

§ 317. Expenses of administering article. 1. The total amount of

expenses incurred in connection with the administration of this article

shall be paid by all insurance carriers which issue policies or

contracts of automobile bodily injury insurance risks subject to this

article resident or located in this state in accordance with the

provisions of this section.

2. Estimate of expenses. (a) The commissioner annually, as soon as

practicable, shall estimate the total amount of expenses which shall be

incurred during the succeeding fiscal year in connection with the

administration of this article. Such expenses, in addition to the direct

costs of personal service, shall include the cost of maintenance and

operation, the cost of retirement contributions made and workers'

compensation premiums paid by the state for or on account of personnel,

rentals for space occupied in state-owned or state-leased buildings, the

amounts paid to a city, county, town, village or the division of state

police for the enforcement of orders issued pursuant to this article and

all other direct or indirect costs.

(b) The commissioner shall on or before February first assess the

total amount of such expenses, as so estimated, pro rata upon all

insurance carriers subject to the provisions of this section in

proportion to the premiums reported by such carriers to the department

of financial services for policies or contracts of automobile bodily

injury insurance on risks subject to this article resident or located in

this state for the year prior to the previous calendar year.

(c) For fiscal years beginning on and after April first, nineteen

hundred eighty-three, each such insurance carrier shall make partial

payments of the assessment levied against it as follows, one-quarter of

the total on March tenth of the preceding fiscal year and one-quarter on

June tenth, one-quarter on September tenth, and the balance on December

tenth of the fiscal year, or on such other dates as the budget director

may prescribe. Provided, however, that the payment due March tenth,

nineteen hundred eighty-three for the fiscal year beginning April first,

nineteen hundred eighty-three shall not be required to be paid until

June tenth, nineteen hundred eighty-three. If the total amount due from

any such carrier is less than one hundred dollars, no partial payment

shall be made and the total amount due shall be paid on or before

September thirtieth of the fiscal year.

3. Final assessment. (a) The commissioner and the department of audit

and control annually, as soon as practicable after April first, shall

ascertain the total amount of expenses incurred during the preceding

fiscal year in connection with the administration of this article. An

itemized statement of the expenses so ascertained shall be open to

public inspection in the office of the commissioner for thirty days

after notice to those liable to be assessed for such expenses.

(b) As soon as practicable after January first, each insurance carrier

subject to the provisions of this section shall file with the

commissioner a report of the total amount of gross direct premiums, less

return premiums thereon received during the preceding calendar year for

policies or contracts of automobile bodily injury insurance on risks

subject to this article resident or located in this state.

(c) The commissioner shall then determine the amount of expenses due

from each insurance carrier subject to the provisions of this section

based upon the final determination of total expenses and the final

amount of premiums filed by the insurance carriers and shall notify each

such insurance carrier of such assessment. Within thirty days of receipt

of such notification each such carrier shall pay the total amount of

such assessment less the total amount paid as a result of the estimated

assessments. If the total amount of the final assessment is less than

the amount already paid, such excess payment shall be refunded to such

insurance carrier or at the option of the assessed applied to

assessments for the succeeding fiscal year as requested by such

insurance carriers.

* (d) To fully fund such pilot database system and bar code program

established pursuant to subdivision four of section three hundred

thirteen of this article, the commissioner shall utilize the following

three sources of revenue: (1) twenty-five percent of all civil penalties

imposed upon persons fined pursuant to paragraph (b) of subdivision

one-a of section three hundred eighteen of this article, (2) monies

obtained from grants that may be awarded to the commissioner from the

motor vehicle theft and insurance fraud prevention fund, and (3) pro

rata assessments upon all insurance carriers subject to the provisions

of this section in proportion to the premium estimates filed by such

carriers.

* NB Effective until December 31, 2028

* (d) To fully fund such system for the online verification of motor

vehicle liability insurance and bar code program established pursuant to

subdivision four of section three hundred thirteen of this article, the

commissioner shall utilize the following three sources of revenue: (1)

twenty-five percent of all civil penalties imposed upon persons fined

pursuant to paragraph (b) of subdivision one-a of section three hundred

eighteen of this article, (2) monies obtained from grants that may be

awarded to the commissioner from the motor vehicle theft and insurance

fraud prevention fund, and (3) pro rata assessments upon all insurance

carriers subject to the provisions of this section in proportion to the

premium estimates filed by such carriers.

* NB Effective December 31, 2028

4. The commissioner shall levy and collect such assessments and pay

the same into the state treasury, subject to the provisions of section

one hundred twenty-one of the state finance law.