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A00058 Summary:

BILL NOA00058
 
SAME ASNo Same As
 
SPONSORMagnarelli
 
COSPNSR
 
MLTSPNSR
 
Amd §202, V & T L
 
Provides that the commissioner of motor vehicles may contract with private companies or public entities to provide lists of driver's license and partial operating records maintained and collected by the department of motor vehicles.
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A00058 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A58
 
SPONSOR: Magnarelli
  TITLE OF BILL: An act to amend the vehicle and traffic law, in relation to driver's license lists and operating record information   PURPOSE: To allow the Department of Motor Vehicles (DMV) to contract with private companies or public entities to provide driver's license numbers, driv- er's license state of insurance, violation date, summons number, violation description, disposition date, disposition description and scofflaw information.   SUMMARY OF PROVISIONS: Section 1 adds new subdivision 6 to 5202 of the Vehicle and Traffic Law authorizing DMV to contract with private companies or public entities to provide driver's license numbers, driver's license state of insurance, violation date, summons number, violation description, disposition date, disposition description and scofflaw information. Section 2 establishes the effective date.   JUSTIFICATION: Currently, operating record information, like traffic and criminal traf- fic conviction information, is available under New York Freedom of Information laws (FOIL). The information has been produced in response to recent FOIL requests. This specific driver's license information is subject to the federal Driver's Privacy Protection Act of 1994 (18 U.S.C. S 2721 et seq.) (DPPA) which establishes protections for the information and consumers. The DPPA restricts the Commissioner's disclo- sure of driver's license information to authorized recipients with spec- ified permissible uses established in the law, including for use by insurers or insurance support organizations in connection with claims investigation activities and insurance underwriting and rating or when a consumer has provided express consent. Authorized recipients of driver's license information may only disclose or resell the information for the permissible uses set forth in the federal law. The DPPA also establishes enforcement methods. The Commis- sioner may review an authorized recipient's compliance with the law. Persons who violate the DPPA may be subject to criminal fines and a consumer whose information was obtained, disclosed, or used for an impermissible use may bring a civil action. Driver's license and operat- ing record information allows insurers to align rates to actual driver behavior, consistent with New York automobile insurance underwriting and rating laws which prohibit the use of certain factors unrelated to an individual's driving ability. The information may also be used to iden- tify recalled vehicles and verify information related to a commercial driver's license. Allowing the Commissioner to contract for the provision of driver's license and operating record information in bulk establishes an alterna- tive, consistent stream of revenue for the State and would allow for development of a method to deliver information in a manner that is less burdensome and less time consuming than responding to a FOIL request. Motor vehicle records (MVR), like driver's license and operating records, represent insurers' single largest expense associated with underwriting new automobile insurance underwriting. Many insurers no longer order MVRs on all drivers and instead use other methods to deter- mine when an MVR should be ordered or whether a driving record is not required for certain individuals, resulting in decreased in MVR trans- actions in a State. However, an analysis of a state that began providing bulk data in late 2015 showed that the-bulk product contributed to a total revenue increase of 24% over a three year period. Consumer's also benefit from the use of the information by obtaining a more accurate quote earlier in the underwriting process. Proper consideration of driver records in all instances also allows insurers to more accurately determine each consumer's premium and reduce the possibility of better drivers having to subsidize those with a poor driving record, resulting in a fairer marketplace. At least 21 other states provide driver's license and operating record information whereby driver's license information is provided for one or more DPPA permissi- ble uses. This legislation would help New York state drivers have more accurate premium ratings and protect an important DMV revenue stream by clarifying the Commissioner of DMV has the current authority to enter into contractual arrangement to receive MVR bulk data as authorized by the federal Driver's Privacy Protection Act of 1994 (18 U.S.C. § 2721 et seq.).   LEGISLATIVE HISTORY: 2021-2022: A.1279; 2019-2020: A.8331   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: Immediately.
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A00058 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           58
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 4, 2023
                                       ___________
 
        Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
          Committee on Transportation
 
        AN ACT to amend the vehicle and traffic law,  in  relation  to  driver's
          license lists and operating record information

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 202 of the vehicle and traffic law  is  amended  by
     2  adding a new subdivision 6 to read as follows:
     3    6.  Driver's  license  lists  and  operating  record  information. The
     4  commissioner may contract with private companies or public  entities  to
     5  provide  lists  of  driver's license and partial operating records main-
     6  tained and collected by the department pursuant to this  chapter.    The
     7  fees  provided  by  this  section  shall  not apply to copies of records
     8  furnished under any such contract. Any such contract shall be limited to
     9  only that part of the driver's license and operating  record  describing
    10  the:  driver's  license  number,  driver's  license  state  of issuance,
    11  violation date, summons number, violation description, disposition date,
    12  disposition description and scofflaw information.  The department  shall
    13  not furnish such information except upon execution by the recipient of a
    14  written agreement to comply with the federal Driver's Privacy Protection
    15  Act of 1994, as amended, (18 U.S.C. § 2721 et seq.).
    16    § 2. This act shall take effect immediately.
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00259-01-3
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