N.Y. Vehicle & Traffic Law § 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.