Bill Text: MS SB2853 | 2011 | Regular Session | Introduced

Mississippi Senate Bill 2853 (Prior Session Legislation)

Introduced

Bill Title: Public Safety Verification and Enforcement Act; create.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2011-02-01 - Died In Committee [SB2853 Detail]

Download: Mississippi-2011-SB2853-Introduced.html

MISSISSIPPI LEGISLATURE

2011 Regular Session

To: Insurance

By: Senator(s) Clarke

Senate Bill 2853

AN ACT TO CREATE THE PUBLIC SAFETY VERIFICATION AND ENFORCEMENT ACT; TO REQUIRE THE DEPARTMENT OF PUBLIC SAFETY, IN COOPERATION WITH THE COMMISSIONER OF INSURANCE, TO CREATE AN ACCESSIBLE COMMON CARRIER-BASED MOTOR VEHICLE INSURANCE VERIFICATION SYSTEM; TO PROVIDE FOR LAW ENFORCEMENT USE OF THE SYSTEM; TO ALLOW INSURERS TO PROVIDE CERTAIN INFORMATION TO BE USED IN THE SYSTEM; TO REQUIRE THE DEPARTMENT OF PUBLIC SAFETY TO ADMINISTER AND ENFORCE THE PROVISIONS OF THIS ACT AND REQUIRE THE DEPARTMENT TO MAKE RULES NECESSARY FOR THE ADMINISTRATION OF THE MOTOR VEHICLE INSURANCE VERIFICATION SYSTEM CREATED UNDER THIS ACT; TO CREATE A NEW CODE SECTION TO BE CODIFIED AS SECTION 63-15-8, MISSISSIPPI CODE OF 1972, TO REQUIRE PROOF OF MOTOR VEHICLE LIABILITY INSURANCE BEFORE RECEIVING A MOTOR VEHICLE LICENSE TAG; TO REQUIRE THE OWNER OF THE MOTOR VEHICLE TO MAINTAIN CONTINUOUS COVERAGE THROUGHOUT THE LICENSE PERIOD; TO AMEND SECTION 63-15-4, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT CERTAIN FUNDS FROM FINES FOR FAILURE TO PROVIDE PROOF OF MOTOR VEHICLE LIABILITY INSURANCE SHALL BE DEPOSITED INTO THE MOTORIST IDENTIFICATION DATABASE FUND; TO AUTHORIZE SUSPENSION OF VEHICLE REGISTRATION IF A MOTOR VEHICLE OWNER FAILS TO HAVE THE REQUIRED MOTOR VEHICLE LIABILITY INSURANCE; TO AUTHORIZE A FEE FOR THE REINSTATEMENT OF A VEHICLE REGISTRATION SUSPENDED BECAUSE OF SUCH FAILURE; TO PROVIDE THAT A PORTION OF THE REINSTATEMENT FEE SHALL BE DEPOSITED INTO A SPECIAL FUND IN THE STATE TREASURY TO BE KNOWN AS THE MOTORIST IDENTIFICATION DATABASE FUND; TO PROVIDE THAT MONIES IN THE SPECIAL FUND MAY BE USED BY THE DEPARTMENT OF PUBLIC SAFETY, UPON APPROPRIATION BY THE LEGISLATURE, FOR THE PURPOSE OF DEFRAYING EXPENSES AND COSTS FOR THE MOTOR VEHICLE INSURANCE VERIFICATION SYSTEM; AND FOR RELATED PURPOSES.

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

SECTION 1. This act shall be known as the Public Safety Verification and Enforcement Act.

SECTION 2. (1) The Department of Public Safety, in cooperation with the Commissioner of Insurance, shall establish an accessible common carrier-based motor vehicle insurance verification system to verify the compliance of a motor vehicle owner or operator with motor vehicle liability policy requirements under Section 63-15-4.

(2) The department may contract with a private vendor or vendors to establish and maintain the system.

(3) The system must:

(a) Send requests to insurers for verification of motor vehicle liability insurance using electronic services established by the insurers through the Internet, World Wide Web, or a similar proprietary or common carrier electronic system in compliance with the specifications and standards of the Insurance Industry Committee on Motor Vehicle Administration and other applicable industry standards;

(b) Include appropriate provisions to secure its data against unauthorized access and to maintain a record of all requests and responses;

(c) Be accessible, without fee, to authorized personnel of the department, the courts, law enforcement personnel, county treasurers, and other entities authorized by the department under the provisions of Section 4 of this act;

(d) Interface, wherever possible, with existing department and law enforcement systems;

(e) Receive insurance data file transfers from insurers under specifications and standards set forth in paragraph (a) of this subsection to identify vehicles that are not covered by an insurance policy;

(f) Provide a means by which low-volume insurers that are unable to deploy an online interface with the system can report insurance policy data to the department or its designee for inclusion in the system;

(g) Provide a means to track separately or distinguish motor vehicles that are subject to a certificate of self-insurance under Section 63-15-53, a bond under Section 63-15-49, or a certificate of deposit of money or securities under Section 63-15-51;

(h) Be available twenty-four (24) hours a day, seven (7) days a week, subject to reasonable allowances for scheduled maintenance or temporary system failures, to verify the insurance status of any vehicle in a manner prescribed by the department; and

(i) Be installed and operational no later than January 1, 2012, following an appropriate testing period of not less than six (6) months.

(4) Every insurer shall cooperate with the department in establishing and maintaining the system and shall provide access to motor vehicle liability policy status information to verify liability coverage for:

(a) A vehicle insured by that company that is registered in this state; and

(b) If available, for a vehicle that is insured by that company or that is operated in this state and that is the subject of an accident investigation regardless of where the vehicle is registered.

SECTION 3. (1) Notwithstanding any other provision of law to the contrary, a peace officer or authorized employee of a law enforcement agency may, during the course of a traffic stop or accident investigation, access the verification system provided under Section 2 of this act to verify whether a motor vehicle is covered by a valid motor vehicle liability policy that meets the requirements of Section 63-15-4.

(2) (a) Except as provided in paragraph (b) of this subsection, the response received from the system supersedes an insurance card produced by a vehicle owner or operator, and notwithstanding the display of an insurance card by the owner or operator, the peace officer may issue a complaint and notice to appear to the owner or operator for a violation of Section 63-15-4.

(b) Paragraph (a) of this subsection does not apply if the vehicle is:

(i) Covered under a commercial automobile insurance coverage policy;

(ii) Part of a self-insured corporate or individual fleet registered under Section 27-19-66; or

(iii) Included in an insurance binder that has not been entered into the system at the time the system is accessed under subsection (1) of this section.

(3) Except upon reasonable cause to believe that a driver has violated another traffic regulation or that the driver's vehicle is unsafe or not equipped as required by law, a peace officer may not use the verification system to stop a driver for operating a motor vehicle in violation of this act.

SECTION 4. (1) The Department of Public Safety shall administer and enforce the provisions of this act and shall make rules necessary for the administration of the motor vehicle insurance verification system created under Section 2 of this act.

(2) The rules must:

(a) Establish standards and procedures for accessing the system by authorized personnel of the department, the courts, law enforcement personnel, and any other entities authorized by the department that are consistent with specifications and standards of the insurance industry committee on motor vehicle administration and other applicable industry standards;

(b) Provide for the suspension of a vehicle's registration when:

(i) A person fails to respond to a written inquiry from the department or its designee concerning the insurance status of a vehicle;

(ii) A person misrepresents or provides false information to the department or its designee regarding the operational status or use of a vehicle for which liability insurance is mandatory;

(iii) The department has reason to believe that a vehicle owner is not complying with the mandatory liability insurance requirements of the Mississippi Motor Vehicle Safety-Responsibility Law; or

(iv) The department receives a report from a court that a person has been convicted of a violation of this act and the surrender of the vehicle registration receipt and license plates under this act has been ordered;

(c) Prohibit the reinstatement of a vehicle's registration and the new registration of a vehicle unless the applicable reinstatement fees have been paid;

(d) Provide for periodic insurance data file transfers from insurers to identify vehicles that are not covered by an insurance policy and to monitor ongoing compliance with mandatory vehicle liability insurance requirements;

(e) Provide for random checks to identify vehicles that are not covered by an insurance policy; and

(f) Provide for hearings for a person aggrieved by a suspension order issued by the department under the provisions of this act.

(3) The department may adopt additional rules to:

(a) Assist authorized users in interpreting responses received from the system and determining the appropriate action to be taken as a result of a response; and

(b) Otherwise clarify system operations and business rules.

SECTION 5. The following shall be codified as Section 63-15-8, Mississippi Code of 1972:

63-15-8. (1) Every owner of a motor vehicle in this state shall furnish proof of motor vehicle liability insurance coverage in at least the minimum amounts required under paragraph (j) of Section 63-15-3 before that owner may receive a license tag for a motor vehicle or renew a license tag. The owner must also maintain continuous coverage in at least the minimum amounts required under paragraph (j) of Section 63-15-3 throughout the license period. However, any owner of a motor vehicle exempted from the proof of insurance requirement pursuant to Section 63-15-4(1) shall be exempted from the provisions of this section. Proof of motor vehicle liability insurance as required by this chapter shall be made by presenting to the tax collector in person or by mail the insurance card, or a copy thereof, issued by the insurer for the motor vehicle. However, the verification system created under Section 2 of this act may be used to verify the compliance of a motor vehicle owner or operator with motor vehicle liability policy requirements under Section 63-15-4. The response received from the system supersedes an insurance card produced by a vehicle owner or operator, and notwithstanding the display of an insurance card by the owner or operator, the owner or operator may be denied a license tag for a motor vehicle or renewal of a license tag based on the verification system's response of noncompliance. This subsection does not apply if the vehicle is:

(a) Covered under a commercial automobile insurance coverage policy;

(b) Part of a self-insured corporate or individual fleet registered under Section 27-19-66; or

(c) Included in an insurance binder that has not been entered into the system at the time the verification system is accessed.

(2) Any person who presents or causes to be presented to the tax collector or to any court of this state false evidence of motor vehicle liability insurance as required by this chapter, upon conviction, shall be guilty of perjury and shall be fined Five Hundred Dollars ($500.00) and shall be subject to imprisonment for a period not exceeding one (1) year, or both such fine and imprisonment. This fine and imprisonment shall be waived if the offender chooses to purchase, and provides proof of such purchase by the court date, motor vehicle liability insurance for a minimum of six (6) months' coverage in at least the minimum amounts required under paragraph (j) of Section 63-15-3. Any person convicted of filing false proof of motor vehicle liability insurance as required by this chapter shall surrender to the department his driver's license, license plates and registration of the motor vehicle for which false proof was presented and the procedure for the suspension of licenses provided in Section 63-15-11 relating to accidents shall be followed. Such driver's license, license plates and registration shall be reinstated upon payment of any fines and reinstatement fees, serving of a sentence if applicable, and upon presentation of proof of purchase of minimum motor vehicle liability insurance in accordance with the provisions of this subsection. The district attorney of the jurisdiction where any false evidence is presented shall prosecute any violation of this section. Any person convicted under this section shall be assessed with all costs of prosecution and all court costs.

SECTION 6. Section 63-15-4, Mississippi Code of 1972, is amended as follows:

63-15-4. (1) The following vehicles are exempted from the requirements of this section:

(a) Vehicles exempted by Section 63-15-5;

(b) Vehicles for which a bond or a certificate of deposit of money or securities in at least the minimum amounts required for proof of financial responsibility is on file with the department;

(d) Implements of husbandry.

(2) (a) Every motor vehicle operated in this state shall have an insurance card maintained in the vehicle as proof of liability insurance that is in compliance with the liability limits required by Section 63-15-3(j). The insured parties shall be responsible for maintaining the insurance card in each vehicle.

(b) An insurance company issuing a policy of motor vehicle liability insurance as required by this section shall furnish to the insured an insurance card for each vehicle at the time the insurance policy becomes effective.

(3) Upon stopping a motor vehicle at a roadblock where all passing motorists are checked as a method to enforce traffic laws or upon stopping a motor vehicle for any other statutory violation, a law enforcement officer, who is authorized to issue traffic citations, shall verify that the insurance card required by this section is in the motor vehicle. However, no driver shall be stopped or detained solely for the purpose of verifying that an insurance card is in the motor vehicle unless the stop is part of such roadblock.

(4) Failure of the owner or the operator of a motor vehicle to have the insurance card in the motor vehicle is a misdemeanor and, upon conviction, is punishable by a fine of Five Hundred Dollars ($500.00) and suspension of driving privilege for a period of one (1) year or until the owner of the motor vehicle shows proof of liability insurance that is in compliance with the liability limits required by Section 63-15-3(j). Fraudulent use of an insurance card shall be punishable in accordance with Section 97-7-10. The funds from such fines shall be deposited in the Motorist Identification Database Fund in the State Treasury. However, if such fines are levied in a municipal court, fifty percent (50%) of the funds from such fines shall be deposited in the general fund of the municipality. If such fines are levied in any of the courts of the county, fifty percent (50%) of the funds from such fines shall be deposited in the general fund of the county.

(5) If, at the hearing date or the date of payment of the fine, the motor vehicle owner shows proof of motor vehicle liability insurance in the amounts required by Section 63-15-3(j), the fine shall be reduced to One Hundred Dollars ($100.00). If the owner shows proof that such insurance was in effect at the time of citation, the case shall be dismissed as to the defendant with prejudice and all court costs shall be waived against the defendant.

(6) If the owner or operator of a registered motor vehicle fails to have motor vehicle liability insurance as required by Section 63-15-8, his vehicle registration shall be suspended and a fee in the amount of Five Hundred Dollars ($500.00) shall be charged to reinstate the registration; however, if the registrant shows proof of liability insurance within thirty (30) days after the date the vehicle registration is suspended, the charge to reinstate the registration shall be reduced to Fifty Dollars ($50.00). The person whose registration has been suspended may make a written request, within ten (10) days after receipt of notice of the suspension, to the Department of Public Safety for a hearing and such request shall operate as a stay of any suspension pending the outcome of the hearing. The hearing officer shall review the merits of the suspension and make a determination on its status. Any person whose suspension has been sustained shall have the right to appeal in a court of proper jurisdiction. However, the suspension shall not be stayed by the Department of Public Safety or any court while the appeal is pending. No vehicle registration may be renewed or transferred while it is in a suspended condition. Reinstatement fees collected under this subsection shall be deposited into the special fund created under subsection (7) of this section.

(7) (a) There is created in the State Treasury a special fund to be designated as the "Motorist Identification Database Fund." The fund shall consist of monies deposited therein as provided under Section 63-15-4(6) and monies from any other source designated for deposit into such fund. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited to the credit of the fund.

(b) Monies in the special fund may be used by the Department of Public Safety, upon appropriation by the Legislature, only for the purpose of defraying expenses and costs for the motor vehicle insurance verification system created under Section 1 of this act. Monies in the fund used for the purposes described in this paragraph (b) shall be in addition to other funds available from any other source for such purposes.

SECTION 7. This act shall take effect and be in force from and after July 1, 2011.