Senate Bill S6556

                                 
BILL NUMBER: S6556

SPONSOR: COONEY
 
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 § 202 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. § 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 specified 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 where-
by driver's license information is provided for one or more DPPA permis-
sible 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:

New Bill

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
Immediately.