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A07535 Summary:

BILL NOA07535
 
SAME ASSAME AS S06534
 
SPONSORGunther
 
COSPNSRWeprin, Buttenschon, Zebrowski, Steck, McDonald, Stern, Thiele, Dinowitz, Fahy, Hunter, Woerner, McMahon, Jackson, Rivera, Benedetto, Wallace, Stirpe, Giglio JA, Jones
 
MLTSPNSRSimon
 
Amd 312-a & 313, rpld 313 sub 2, sub 4 (a) - (d) & (f) - (i), 317 sub 3 (d), add 312-b & 312-c, V & T L
 
Establishes an online insurance verification system for motor vehicle insurance; requires insurers to provide necessary information.
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A07535 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7535
 
SPONSOR: Gunther
  TITLE OF BILL: An act to amend the vehicle and traffic law, in relation to establishing an online insurance verification system for motor vehicle insurance; and to repeal certain provisions of such law relating to motor vehicle insurance and funds for a certain pilot database system   PURPOSE: To modernize New York State's motor vehicle liability reporting system.   SUMMARY OF PROVISIONS: Section 1 Amends Subdivision 1 of section 312-a of the vehicle and traf- fic law. Section 2 Subdivision 2 of paragraphs (a), (b), (c), (d), (f), (g), (h), and (i) of subdivision 4 of section 313 of the vehicle and traffic law are REPEALED. Section 3 Amends subdivision 3 of section 313 of the vehicle and traffic law. Section 4 Establishes the online Insurance verification system of motor vehicle insurance. Section 5 Amends the vehicle traffic law by adding a new section 312-c. Section 6 Repeals paragraph (d) of subdivision 3 of section 317 of the vehicle and traffic law. Section 7. Effective Date.   JUSTIFICATION: New York's current system for auto insurance verification relies on old technology and manual processing for both the DMV and insurance carri- ers. This results in an increased likelihood of a driver erroneously being identified as uninsured and can result in being unfairly accused, ticketed and possible arrested for failure to prove insurance cover- age.Motorists who are charged with driving without insurance can face a serious misdemeanor charge, have their car impounded, and lose their license which may result in thousands of dollars in legal fees and court appearances. The "online verification of automobile liability insurance act" would create an Online Verification system (OLV). This system allows for real- time verification of automobile insurance and reduces the likelihood of drivers being falsely accused of driving without insurance coverage. Unlike the current system the OLV system verifies direclty against the insurance companies records within seconds. In addition, this system can be used by law enforcement during roadside stops and accident investi- gations, and the within the court system. 18 states, including Califor- nia and Illinois have adopted a version of an OLV system. The "online verification of automobile liability insurance act" would benefit ALL New York motorists. It would also address an important social equity need - people of color and young drivers who are more likely to have insurance verified by law enforcement at a roadside stop. By using current insurance company data, the OLV system protects insured individuals from being misidentified as uninsured, reducing the personal and economic impacts. Importantly, an OLV system also protects drivers' privacy by limiting access to legally authorized agencies and using the most advanced methods of data encryption.   LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect immediately; provided however, section one, two and three of this act shall take effect when the online insurance verification system is installed and fully operational pursuant to subdivision 5 of section 312-b of the vehicle and traffic law, as added by section four of this act, as certified by the Commission of the Department of Motor Vehicles. Effective immediately, the addition, amendment and / or repeal of any rule or regulation necessary for the implementation of this act are authorized to be made.
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