HF 2255

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to vehicle insurance; requiring the
commissioner of public safety to discontinue insurance
verification sampling program until the commissioner
modifies program; declaring charges for violations of
sampling program laws to be void; providing
remediation; reinstating certain drivers' licenses;
requiring report; authorizing resumption of sampling
program; appropriating money.

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

Section 1. new text begin SUSPENSION OF PROGRAM TO VERIFY INSURANCE
COVERAGE THROUGH SAMPLING.
new text end

new text begin The commissioner of public safety shall take no action
under Minnesota Statutes, section 169.796, subdivision 3, and
shall discontinue all activities related to the program to
verify insurance coverage through sampling, except as provided
in sections 2 to 9.
new text end

Sec. 2. new text begin REINSTATEMENT OF SUSPENDED LICENSES.
new text end

new text begin The commissioner, without requiring proof of insurance or
payment of a reinstatement fee, shall reinstate the driver's
license of every vehicle owner whose license is suspended under
Minnesota Statutes, section 169.796, subdivision 3, retroactive
to the date of the suspension. The commissioner shall promptly
refund any such reinstatement fees previously paid.
new text end

Sec. 3. new text begin DISMISSAL OF CHARGES.
new text end

new text begin All charges, complaints, and citations issued for a
violation of Minnesota Statutes, section 169.796, subdivision 3,
or a related violation, including driving after a license
suspension imposed for failure to comply with the provisions of
Minnesota Statutes, section 169.796, subdivision 3, are void and
must be dismissed.
new text end

Sec. 4. new text begin REMOVAL OF PREVIOUS VIOLATIONS.
new text end

new text begin The commissioner shall purge from a person's driving record
any notation of a violation of Minnesota Statutes, section
169.796, subdivision 3, and any notation of a related suspension
or violation, including driving after a license suspension
imposed for failure to comply with the provisions of Minnesota
Statutes, section 169.796, subdivision 3. An insurer may not
increase a premium for a policy of vehicle insurance on the
basis of a violation described in this section by a named
insured if the violation occurred before the effective date of
this act, and any such increase previously imposed must be
rescinded and any related premium increase promptly refunded.
new text end

Sec. 5. new text begin REMEDIATION FOR CONVICTIONS.
new text end

new text begin (a) A court in which a conviction for an offense referred
to in section 3 occurred, must vacate the conviction, on its own
motion, without cost to the person convicted, and must
immediately notify the person that the conviction has been
vacated.
new text end

new text begin (b) The commissioner of finance, in consultation with the
Supreme Court administrator, shall develop and implement a
procedure to refund to the licensee any fine paid by the
licensee for a conviction vacated under paragraph (a), without
requiring that the licensee request the refund. The procedure
may require recovery of portions of the fines that have been
allocated by law to local government units.
new text end

Sec. 6. new text begin REMEDIATION BY INSURERS.
new text end

new text begin (a) Insurers that issue or renew motor vehicle insurance in
this state shall, within 60 days after the effective date of
this section, inform the commissioner of commerce as to whether
it has canceled, failed to renew, denied an application for
coverage, or imposed a surcharge on any motor vehicle insurance
due to a suspension or conviction as a result of the law
referenced in section 1, provide a list of any such persons, and
indicate for each person the remediation the insurer intends to
provide.
new text end

new text begin (b) Remediation under paragraph (a) must compensate the
victim by providing refunds and reinstatements of coverage.
new text end

new text begin (c) Insurers shall provide the remediation without
requiring that the person make a request for remediation.
new text end

new text begin (d) The commissioner of commerce shall enforce this section
under its general enforcement powers under Minnesota Statutes,
chapter 45.
new text end

Sec. 7. new text begin PUBLIC SAFETY FUNDING.
new text end

new text begin The commissioner of public safety shall use funds
appropriated for purposes of the law referenced in section 1 and
not yet spent for that purpose to accomplish the remediation
required under this act. The funds that are unspent at the end
of the 2005 fiscal year may be carried forward into the next
biennium if necessary to complete the remediation.
new text end

Sec. 8. new text begin REPORT.
new text end

new text begin The commissioner shall report to the chairs of the senate
and house of representatives committees with jurisdiction over
transportation policy no later than March 15, 2006, concerning
the program of sampling to verify insurance coverage. The
report must:
new text end

new text begin (1) identify the measures that the commissioner will
implement to ensure that the commissioner's request to furnish
insurance information is delivered to the addressee;
new text end

new text begin (2) describe proposed modifications to the request form and
the envelope that will call attention to the urgency of the
request and the need for a prompt reply;
new text end

new text begin (3) propose changes to the program to ensure that a vehicle
owner will receive actual notice of the commissioner's intent to
suspend the owner's driver's license, and that actual notice
will be given with adequate time and opportunity for the owner
to respond and avoid the suspension; and
new text end

new text begin (4) identify any changes in statute necessary to allow the
commissioner to implement the recommended changes.
new text end

Sec. 9. new text begin TESTING AND RESUMPTION OF SAMPLING PROGRAM.
new text end

new text begin On or after June 10, 2006, the commissioner shall implement
the sampling program under Minnesota Statutes, section 169.796,
subdivision 3, as modified according to the report in section
8. On or after March 22, 2006, the commissioner may request
verification of insurance coverage from vehicle owners under
Minnesota Statutes, section 169.796, subdivision 3,
incorporating the modifications proposed in the report, but the
commissioner may not suspend driver's licenses under this
subdivision or impose any other penalties before the full
resumption of the sampling program on or after June 10, 2006.
new text end

Sec. 10. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated from the general fund to the
commissioner of finance for fiscal year 2005 for the purpose of
making the refunds of fines required under this act. Any
amounts not expended for that purpose in fiscal year 2005 may be
carried forward to the following biennium for that purpose if
necessary.
new text end

Sec. 11. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 10 are effective the day following final
enactment and expire on June 10, 2006.
new text end