Bill Text: NH HB613 | 2019 | Regular Session | Introduced


Bill Title: Relative to mandatory automobile insurance.

Spectrum: Moderate Partisan Bill (Democrat 4-1)

Status: (Introduced) 2019-02-13 - Retained in Committee [HB613 Detail]

Download: New_Hampshire-2019-HB613-Introduced.html

HB 613-FN - AS INTRODUCED

 

 

2019 SESSION

19-0392

01/03

 

HOUSE BILL 613-FN

 

AN ACT relative to mandatory automobile insurance.

 

SPONSORS: Rep. Leishman, Hills. 24; Rep. S. Newman, Hills. 29; Rep. Green, Rock. 13; Rep. Spang, Straf. 6; Sen. Rosenwald, Dist 13

 

COMMITTEE: Commerce and Consumer Affairs

 

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ANALYSIS

 

This bill requires proof of motor vehicle liability insurance in order to register a motor vehicle.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0392

01/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to mandatory automobile insurance.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Application for Registration; Proof of Insurance Required.  Amend RSA 261:52 to read as follows:

261:52  Application for Registration.

I.  Application for the registration of vehicles may be made by the owner thereof by mail or otherwise to the department, upon blanks prepared by the director.  In addition to such other particulars as the director may require, the application shall contain the applicant's birth date, unless the vehicle is registered in the name of a person other than a natural person, in which case the date assigned by the director shall be used as the date of birth.  All applications shall contain the words:  "This application is signed and any additional information is offered under penalty of unsworn falsification pursuant to RSA 641:3."  The proper fee shall be deposited before the application is granted.

II.  The applicant shall submit with the application proof of motor vehicle liability insurance indicating that such insurance is valid for the duration of the registration period or longer.  No registration shall be issued, renewed, or transferred without adequate proof of insurance.

2  Effective Date.  This act shall take effect January 1, 2020.

 

LBAO

19-0392

1/14/19

 

HB 613-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to mandatory automobile insurance.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [ X ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

   Expenditures

Indeterminable Increase

Indeterminable

Indeterminable

Indeterminable

Funding Source:

  [ X ] General            [    ] Education            [ X ] Highway           [ X ] Other - Restricted - Cost of Collections*

*Pursuant to Part II, article 6-a of the New Hampshire constitution, any costs associated with the collection and administration of Highway Funds by the Department of Safety shall be deducted by the Department before such funds are credited to the Highway Fund as unrestricted revenue.

 

 

 

 

 

LOCAL:

 

 

 

 

   Revenue

$0

Indeterminable

Indeterminable

Indeterminable

   Expenditures

Indeterminable

$0

$0

$0

 

METHODOLOGY:

This bill requires applicants for vehicle registration provide proof of liability insurance and that no registration be issued, renewed, or transferred, without it.  In order to implement this change, the Department of Safety estimates it would incur approximately $140,000 in system programming changes and testing in FY 2020.  Additionally, the Department expects it could incur additional costs related to a public awareness campaign to inform the public of the change and added personnel at Division of Motor Vehicle locations to handle increased foot traffic.  Municipal offices may also incur additional expenses in administering this change.

Highway Fund Revenue Impact

To the extent vehicle registrations decrease due to this change, highway fund revenue would decrease.  Also, pursuant to RSA 235:23, not less than 12 percent of the total road toll and motor vehicle fee revenue collected in the previous year is distributed to municipalities as highway block grants, which means any decrease in registration revenue would generate a corresponding reduction in state highway fund expenditures and local revenues.  The Department of Safety cannot estimate this bill’s impact on registration fee revenue.

 

General Fund Revenue Impact

This bill would likely result in additional automobile insurance premiums written.  Based on data published for New Hampshire, and neighboring states with mandatory insurance requirements similar to this bill, the Insurance Department has utilized the following assumptions to calculate a potential insurance premium tax impact:

 

  • % of Automobiles Insured: NH – 90.1% and MA/VT/ME (Average) – 94.2%
    • It is assumed this bill would result in NH becoming insured at the average of MA/VT/ME, which would be a 4.5% growth from current level.  However, since only liability insurance is required, and minimum limits would likely be selected, it is assumed an overall increase in premiums written would be 2.25%.
  • As the bill’s effective date is January 1, 2020, only half year impact is assumed in FY 2020.

 

Estimates (Rounded)

FY 2020

FY 2021

FY 2022

FY 2023

Additional Written Premiums

$9,900,000

$20,400,000

$21,100,000

$21,800,000

Additional Premium Tax

$123,750

$255,000

$263,750

$272,500

 

AGENCIES CONTACTED:

Department of Safety and Insurance Department

 

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