N.Y. VAT. LAW § 318 : NY Code - Section 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  hundred one of this chapter, registered in this state is  no  longer  in
  effect  shall  suspend the registration of such vehicle and the driver's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.
    * NB Effective until June 30, 2011
    * 1.  (a)  The  commissioner,  upon  receipt of evidence that proof of
  financial security for any motor vehicle registered in this state, other
  than 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, is no longer in effect shall
  revoke the registration of such vehicle.
    (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, for
  a period of thirty days from the date of such revocation.
    (c) Revocation 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, and upon payment of a
  fee of one dollar, may surrender the registration and number  plates  to
  any  county clerk, except in a county wholly within a city or the county
  of Albany. The county clerk shall retain such fee, and shall return such
  registration certificates and number plates, or  dispose  of  the  same,
  only as prescribed by the commissioner.
    (d) Revocation 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.
    * NB Effective June 30, 2011
    * 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 eight dollar  penalty,  six  dollars
  will   be  deposited  in  the  general  fund  and  two  dollars  in  the
  miscellaneous special revenue fund - compulsory  insurance  account.  Of
  each  ten dollar penalty collected, six dollars will be deposited in the
  general fund, two dollars will be deposited in the miscellaneous special
  revenue fund - compulsory insurance account, 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,  six  dollars  will  be
  deposited  into the general fund, two dollars will be deposited into the
  miscellaneous special revenue fund - compulsory insurance  account,  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.
    * NB Expires June 30, 2011
    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 in his driving license.
    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.