Division of Criminal Justice Services
Division of State Police
Administration of the Motor Vehicle Law Enforcement Fee Since 1992, a fee of one dollar has been imposed on all motor vehicles insured in New York State. This fee is collected from insurance companies by the Insurance Department. According to State law, the fees from passenger vehicles are to be used to supplement the efforts of the Division of State Police in reducing and prosecuting automobile theft, while the fees from all other types of vehicles are to be used by the Division of Criminal Justice Services to develop demonstration projects for reducing the incidence of automobile insurance fraud.
We examined whether the fee revenue has been used as intended. We found that the revenue has not been used to supplement Division of State Police funding, as intended, but has offset reductions in the funding available to the State Police. Moreover, it appears that much of the revenue made available to the State Police has been used for activities that are not directly related to automobile theft. We also found that none of the fee revenue made available to the Division of Criminal Justice Services has been spent, because the Division has not yet begun to develop the demonstration projects required by law. We also examined whether the fee collection process is adequately controlled by the Insurance Department, and found that improvements are needed to provide assurance that all fees due from the insurance companies are received, recorded and deposited.
For a complete copy of Report 97-S-8 click here.
For a copy of the associated follow-up report click here.
For a copy of the 90-day response click here.