Bill Text: HI SB2649 | 2012 | Regular Session | Introduced

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Bill Title: Highway Safety; Uninsured Motorist Identification Database Program; Appropriation

Spectrum: Strong Partisan Bill (Democrat 16-1)

Status: (Introduced - Dead) 2012-01-25 - (S) Referred to TIA/JDL/CPN, WAM. [SB2649 Detail]

Download: Hawaii-2012-SB2649-Introduced.html

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THE SENATE	S.B. NO.	2649
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to motor vehicleS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that the rate of uninsured motorists in Hawaii was approximately eleven per cent in 2009, a factor that contributes to the cost of motor vehicle insurance for all Hawaii motorists.  One means of reducing the number of uninsured motorists is the maintenance of accurate information on those who do not have motor vehicle insurance coverage, enabling law enforcement officers to enforce insurance and registration laws.

     Utah initiated an uninsured motorist identification database program in 1995, when the state's uninsured motorist rate was over twenty-three per cent – one of the highest in the nation.  In the first two years of the program, the uninsured rate dropped to just over nine per cent, and current uninsured motorists represent less than four per cent of Utah motorists.

     The purpose of this Act is to establish an uninsured motorist identification database program in Hawaii to:

     (1)  Verify and increase compliance with motor vehicle insurance and registration laws;

     (2)  Reduce the number of uninsured motor vehicles on the roads of the State; and

     (3)  Assist in the identification and prevention of identity theft and other crimes.

     SECTION 2.  Chapter 287, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part    .  Uninsured Motorist Identification Database Program

     §287-A  Definitions.  As used in this part:

     "Database" means the uninsured motorist identification database.

     "Department" means the department of transportation.

     "Designated agent" means the third party with whom the department contracts to implement the program.

     "Program" means the uninsured motorist identification database program.

     §287-B  Program establishment; administration.  There is established the uninsured motorist identification database program to serve as a statewide system of data compilation and retrieval of information regarding uninsured motor vehicles.  The program shall be administered by the department with the assistance of the designated agent.

     §287-C  Designated agent; database development and maintenance responsibilities.  (a)  The department shall contract with a third party to serve as the designated agent; provided that no contract shall obligate the department to pay the designated agent any moneys in excess of those collected as fees, fines, or other means pursuant to this chapter.

     (b)  The designated agent shall develop and maintain the uninsured motorist identification database, which shall be an electronic database of information provided by:

     (1)  Insurers under section 431:10C-  ;

     (2)  The counties, upon request; and

     (3)  The motor vehicle safety office.

     (c)  The database shall include the following information for each motor vehicle owner:

     (1)  Name, make, and model of the insured motor vehicle;

     (2)  Vehicle identification number as defined under section 286-2;

     (3)  Vehicle license plate number;

     (4)  Name of the primary insured;

     (5)  Name of the insurer;

     (6)  Effective dates of coverages; and

     (7)  Insurance policy number.

     (d)  The database shall be developed and maintained in accordance with guidelines established by the department to ensure that the department, state and other law enforcement agencies, and county motor vehicle licensing and registration agencies shall have timely access to the records of the database, including reports necessary for the implementation of this part.

     (e)  Database reports shall be in a form and contain information approved by the department.  The reports may be made available through the Internet or other electronic medium, if the department determines that sufficient security is provided to ensure compliance with requirements regarding limitations on disclosure of information in the database.

     The designated agent shall, at least monthly:

     (1)  Update the database with the motor vehicle insurance information provided by insurers under section 431:10C-  , and motor vehicle licensing and registration information provided by the counties, upon request;

     (2)  Compare all current motor vehicle insurance, licensing, and registration information against the database; and

     (3)  Prepare and disseminate the updated reports.

     §287-D  Notice; proof.  (a)  If the comparison under section 287-C(e)(2) shows that a motor vehicle is not insured for       consecutive months, the department shall direct the designated agent to provide notice to the owner of the motor vehicle and to the county where the motor vehicle is registered that the owner has fifteen days to obtain motor vehicle insurance or turn in to the county the license plates of the vehicle within thirty days.

     (b)  If the owner of the motor vehicle fails to provide satisfactory proof of motor vehicle insurance to the designated agent within fifteen days, the designated agent shall provide a second notice to the owner of the motor vehicle and to the county where the motor vehicle is registered that the owner has fifteen days to provide satisfactory proof of motor vehicle insurance or turn in to the county the license plates of the vehicle.

     (c)  The designated agent shall include in the database:

     (1)  A record of each notice provided to the owner of a motor vehicle and the owner's response; and

     (2)  Any action taken by the county where the motor vehicle is registered.

     §287-E  False information; penalty.  (a)  Any person who gives information required under this part, knowing or having reason to believe that the information is false, shall be fined not more than $1,000 under section 287-44(a).

     (b)  The imposition of any civil penalty under this part shall be in addition to, and shall not in any way limit or affect the application of, any other civil or criminal penalty, or public safety condition or requirement, provided by law.

     §287-F  Disclosure of insurance information; penalty.  (a)  Information in the database provided by an entity to the designated agent pursuant to section 287-C shall be considered to be the property of that entity providing the information, and the information shall not be disclosed from the database, except as follows:

     (1)  For the purpose of investigating, litigating, or enforcing any motor vehicle insurance laws under article 10C of chapter 431, the designated agent shall verify insurance information for a state or county government agency or court;

     (2)  For the purpose of investigating, litigating, or enforcing any motor vehicle insurance laws under article 10C of chapter 431, the designated agent shall, upon request, issue to any state or county government agency or court a certificate documenting the insurance information, according to the database, of a specific individual or motor vehicle for the time period designated by the government agency or court;

     (3)  Upon request, the department or its designated agent shall disclose whether or not an individual is insured and, if insured, the insurance company name to:

         (A)  The individual or, if the individual is deceased, any interested person of the individual, as defined in section 560:1-201;

         (B)  The parent or legal guardian of the individual if the individual is an unemancipated minor;

         (C)  The legal guardian of the individual if the individual is legally incapacitated;

         (D)  A person who has power of attorney from the insured individual;

         (E)  A person who submits a notarized release from the insured individual dated no more than ninety days before the date the request is made; or

         (F)  A person suffering loss or injury in a motor vehicle accident in which the insured individual is involved, but only as part of an accident report under section 287-4;

     (4)  For the purpose of investigating, enforcing, or prosecuting laws or issuing citations related to:

         (A)  The registration and renewal of registration of a motor vehicle under chapter 291D;

         (B)  The purchase of a motor vehicle under chapter 231; or

         (C)  Any motor vehicle insurance laws under article 10C of chapter 431, the department or the designated agent shall, upon request of a law enforcement agency or law enforcement officer acting in an official capacity, disclose relevant information;

     (5)  For the purpose of the state auditor conducting audits of the program;

     (6)  Upon request of a financial institution, as defined under section 412:1-109, for the purpose of protecting the financial institution's bona fide security interest in a motor vehicle; and

     (7)  Upon the request of a state or other law enforcement agency for the purpose of investigating and prosecuting identity theft and other crimes.

     (b)  The department may allow the designated agent to prepare and deliver upon request, a report on the insurance information of a person or motor vehicle in accordance with this section.  The report may be in the form of:

     (1)  A certified copy that is considered admissible in any court proceeding in the same manner as the original; or

     (2)  Information accessible through the Internet or other electronic medium if the department determines that sufficient security is provided to ensure compliance with this section.

     (c)  The department may allow the designated agent to charge a fee established by the department for each:

     (1)  Document authenticated, including each certified copy;

     (2)  Record accessed by the Internet or other electronic medium; and

     (3)  Record provided to a financial institution under subsection (a)(6).

     (d)  A person who knowingly releases or discloses information from the database for a purpose other than those authorized in this section or to a person not entitled to the information shall be guilty of a       and shall be fined not more than $           or imprisoned not more than      , or both, for each offense.

     (e)  An insurer shall not be liable to any person for providing information to the designated agent in accordance with this part.

     (f)  Neither the State nor the designated agent shall be liable to any person for gathering, managing, or using the information in the database as provided in this part.

     §287-G  Rules.  The department shall adopt rules in accordance with chapter 91 for the purposes of this part.

     §287-H  Reports; audits.  (a)  The department shall submit to the legislature an annual status report on the program's activities.

     (b)  The financial transactions of the program are subject to audit by the auditor at least every three years.

     §287-I  Disposition of revenues.  Moneys collected as fees established pursuant to section 287-F(c), fines pursuant to sections 287-E and 287-F(d), or by other means pursuant to this chapter shall be paid to the general fund and credited to the department of transportation to implement the program."

     SECTION 3.  Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10C to be appropriately designated and to read as follows:

     "§431:10C‑    Uninsured motorist identification database; information requirements.  (a)  Every motor vehicle insurer shall provide the department of transportation with the information listed under section 287-C(c) and shall notify the department of the cancellation of a motor vehicle insurance policy; provided that the department or the department's designated agent shall provide this information to a county for only those motor vehicles registered by the county.  The information shall be transmitted on a monthly basis according to a schedule set by the department.  Every insurer shall take all necessary precautions to protect the privacy interests of persons whose information is transmitted to the department.

     (b)  No motor vehicle insurer shall be subject to civil liability for errors or omissions in recording, maintaining, or reporting information required under this section, except for damages that result from the motor vehicle insurer's gross negligence or wanton acts or omissions."

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2012-2013 for implementation of the uninsured motorist identification database program.

     The sum appropriated shall be expended by the department of transportation for the purposes of this Act.

     SECTION 5.  In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

     SECTION 6.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2012.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Highway Safety; Uninsured Motorist Identification Database Program; Appropriation

 

Description:

Establishes an uninsured motorist identification database program to serve as a statewide system of data compilation and retrieval of information regarding uninsured motor vehicles; authorizes the department of transportation to contract with a third party designated agent to establish and manage the program database; establishes penalties, reporting, and audit requirements; requires motor vehicle insurers to provide the department of transportation with information; requires moneys collected as fees, fines, or other means to be paid to the general fund and credited to the department of transportation to implement the program; appropriates funds for the program.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.