HF 765

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to insurance; requiring development of an electronic database of the
insurance status of motor vehicles.

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

Section 1. new text begin MOTOR VEHICLE INSURANCE DATABASE.
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new text begin Subdivision 1. new text end

new text begin Proposal required. new text end

new text begin The commissioner of public safety shall
develop, in consultation with the advisory committee created in subdivision 4 and the
Office of Enterprise Technology, and present to the legislature no later than December
1, 2009, a written proposal to create, implement, and administer an electronic database
system that would provide up-to-date monitoring of the insurance status of each motor
vehicle required under the laws of this state to be covered by a plan of reparation security
as defined in Minnesota Statutes, section 65B.43, subdivision 15.
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new text begin Subd. 2. new text end

new text begin Goals of database system. new text end

new text begin The database system must be designed to
address the following goals:
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new text begin (1) reducing the number of uninsured drivers;
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new text begin (2) reducing law enforcement and court administration costs;
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new text begin (3) coordinating with the database systems of other states to minimize insurance
industry transition costs; and
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new text begin (4) reducing concerns about identity theft.
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new text begin Subd. 3. new text end

new text begin Features to be included in the proposal. new text end

new text begin (a) The database must include
every vehicle known to be required to be covered by a plan of reparation security, the
identity of the owner, and its current insurance status.
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new text begin (b) The proposal must evaluate the benefits and costs of making the database and
related procedures identical to, or compatible with, similar databases operating in other
states.
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new text begin (c) The proposal must include a method by which law enforcement officers may
have immediate electronic access to the database.
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new text begin (d) The proposal must include a requirement that insurance companies issuing and
renewing plans of reparation security promptly provide the necessary information to the
commissioner regarding issuance and termination of plans of reparation security that
cover vehicles required to have such coverage. The proposal shall include development
of a standard format to be used by insurance companies to submit this information
electronically, preferably one that is in use in other states.
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new text begin (e) The proposal must provide for prompt entry of information received by the
commissioner into the database.
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new text begin (f) The proposal must include provisions requiring submission by self-insurers of
the necessary information regarding the creation and termination of plans of reparation
security that are self-insurance.
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new text begin (g) The proposal must describe and analyze alternative methods of funding the
startup and ongoing costs of the database and identify increased efficiencies.
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new text begin (h) The proposal must include consideration of linkage of this database with other
law enforcement and motor vehicle databases maintained or used by the commissioner.
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new text begin Subd. 4. new text end

new text begin Advisory committee. new text end

new text begin The Advisory Committee on Electronic Recording
of Vehicle Insurance is created. The governor shall appoint its members as follows:
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new text begin (1) three members representing the vehicle insurance industry, one of which must be
an insurance agent;
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new text begin (2) one member representing the district courts;
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new text begin (3) two members representing law enforcement; and
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new text begin (4) one member who is a consumer.
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