Division of Criminal Justice Services
Division of State Police
Insurance Department

Administration of the Motor Vehicle Law Enforcement Fee (Follow-Up Review)

Since 1992, a fee of one dollar has been imposed on all motor vehicles insured in New York State. The fee revenue, which is collected from insurance companies by the Insurance Department, is to be used by the State Police in reducing and prosecuting automobile theft and by the Division of Criminal Justice Services in the development of demonstration projects for reducing automobile insurance fraud.

In our prior audit report 97-S-8, we found that much of the fee revenue made available to the State Police had been used for activities not directly related to automobile theft, and none of the fee revenue made available to the Division of Criminal Justice Services had been spent. We also found that improvements were needed to provide assurance that all fees due from insurance companies are received, recorded and deposited by the Insurance Department. In our follow-up review, we found that some actions have been taken to improve controls over the fee collection process and to provide assurance that the fee revenue is used as intended. However, additional actions are needed, particularly at the Division of State Police.

For a complete copy of Report 99-F-15 click here.