§ 317 — Expenses of administering article

New York § 317

• Jurisdiction: New York
• Law VAT: Vehicle & Traffic
• Title 3: Safety Responsibility; Financial Security; Equipment; Inspection; Size and Weight; and Other Provisions
• Art. 6: Motor Vehicle Financial Security Act

Text

§ 317. Expenses of administering article. 1. The total amount of\nexpenses incurred in connection with the administration of this article\nshall be paid by all insurance carriers which issue policies or\ncontracts of automobile bodily injury insurance risks subject to this\narticle resident or located in this state in accordance with the\nprovisions of this section.\n 2. Estimate of expenses. (a) The commissioner annually, as soon as\npracticable, shall estimate the total amount of expenses which shall be\nincurred during the succeeding fiscal year in connection with the\nadministration of this article. Such expenses, in addition to the direct\ncosts of personal service, shall include the cost of maintenance and\noperation, the cost of retirement contributions made and workers'\ncompensation premiums paid by the state for or on account of personnel,\nrentals for space occupied in state-owned or state-leased buildings, the\namounts paid to a city, county, town, village or the division of state\npolice for the enforcement of orders issued pursuant to this article and\nall other direct or indirect costs.\n (b) The commissioner shall on or before February first assess the\ntotal amount of such expenses, as so estimated, pro rata upon all\ninsurance carriers subject to the provisions of this section in\nproportion to the premiums reported by such carriers to the department\nof financial services for policies or contracts of automobile bodily\ninjury insurance on risks subject to this article resident or located in\nthis state for the year prior to the previous calendar year.\n (c) For fiscal years beginning on and after April first, nineteen\nhundred eighty-three, each such insurance carrier shall make partial\npayments of the assessment levied against it as follows, one-quarter of\nthe total on March tenth of the preceding fiscal year and one-quarter on\nJune tenth, one-quarter on September tenth, and the balance on December\ntenth of the fiscal year, or on such other dates as the budget director\nmay prescribe. Provided, however, that the payment due March tenth,\nnineteen hundred eighty-three for the fiscal year beginning April first,\nnineteen hundred eighty-three shall not be required to be paid until\nJune tenth, nineteen hundred eighty-three. If the total amount due from\nany such carrier is less than one hundred dollars, no partial payment\nshall be made and the total amount due shall be paid on or before\nSeptember thirtieth of the fiscal year.\n 3. Final assessment. (a) The commissioner and the department of audit\nand control annually, as soon as practicable after April first, shall\nascertain the total amount of expenses incurred during the preceding\nfiscal year in connection with the administration of this article. An\nitemized statement of the expenses so ascertained shall be open to\npublic inspection in the office of the commissioner for thirty days\nafter notice to those liable to be assessed for such expenses.\n (b) As soon as practicable after January first, each insurance carrier\nsubject to the provisions of this section shall file with the\ncommissioner a report of the total amount of gross direct premiums, less\nreturn premiums thereon received during the preceding calendar year for\npolicies or contracts of automobile bodily injury insurance on risks\nsubject to this article resident or located in this state.\n (c) The commissioner shall then determine the amount of expenses due\nfrom each insurance carrier subject to the provisions of this section\nbased upon the final determination of total expenses and the final\namount of premiums filed by the insurance carriers and shall notify each\nsuch insurance carrier of such assessment. Within thirty days of receipt\nof such notification each such carrier shall pay the total amount of\nsuch assessment less the total amount paid as a result of the estimated\nassessments. If the total amount of the final assessment is less than\nthe amount already paid, such excess payment shall be refunded to such\ninsurance carrier or at the option of the assessed applied to\nassessments for the succeeding fiscal year as requested by such\ninsurance carriers.\n * (d) To fully fund such pilot database system and bar code program\nestablished pursuant to subdivision four of section three hundred\nthirteen of this article, the commissioner shall utilize the following\nthree sources of revenue: (1) twenty-five percent of all civil penalties\nimposed upon persons fined pursuant to paragraph (b) of subdivision\none-a of section three hundred eighteen of this article, (2) monies\nobtained from grants that may be awarded to the commissioner from the\nmotor vehicle theft and insurance fraud prevention fund, and (3) pro\nrata assessments upon all insurance carriers subject to the provisions\nof this section in proportion to the premium estimates filed by such\ncarriers.\n * NB Effective until December 31, 2028\n * (d) To fully fund such system for the online verification of motor\nvehicle liability insurance and bar code program established pursuant to\nsubdivision four of section three hundred thirteen of this article, the\ncommissioner shall utilize the following three sources of revenue: (1)\ntwenty-five percent of all civil penalties imposed upon persons fined\npursuant to paragraph (b) of subdivision one-a of section three hundred\neighteen of this article, (2) monies obtained from grants that may be\nawarded to the commissioner from the motor vehicle theft and insurance\nfraud prevention fund, and (3) pro rata assessments upon all insurance\ncarriers subject to the provisions of this section in proportion to the\npremium estimates filed by such carriers.\n * NB Effective December 31, 2028\n 4. The commissioner shall levy and collect such assessments and pay\nthe same into the state treasury, subject to the provisions of section\none hundred twenty-one of the state finance law.\n