HF 1297

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to insurance; making various changes in 
  1.3             enforcement of mandatory automobile insurance; 
  1.4             amending Minnesota Statutes 2002, sections 169.791, 
  1.5             subdivision 1; 169.792, subdivision 5; 169.796, by 
  1.6             adding a subdivision; 169.797, subdivisions 4, 4a; 
  1.7             169.798, subdivision 1, by adding a subdivision; 
  1.8             171.20, subdivision 4; 171.182, subdivision 2; 
  1.9             repealing Minnesota Statutes 2002, sections 169.792, 
  1.10            subdivision 12; 169.794; 169.799; Minnesota Rules, 
  1.11            part 7413.0400. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 2002, section 169.791, 
  1.14  subdivision 1, is amended to read: 
  1.15     Subdivision 1.  [TERMS DEFINED.] (a) For purposes of this 
  1.16  section and sections 169.792 to 169.799 169.798, the following 
  1.17  terms have the meanings given. 
  1.18     (b) "Commissioner" means the commissioner of public safety. 
  1.19     (c) "District court administrator" or "court administrator" 
  1.20  means the district court administrator or a deputy district 
  1.21  court administrator of the district court that has jurisdiction 
  1.22  of a violation of this section.  
  1.23     (d) "Insurance identification card" means a card issued by 
  1.24  an obligor to an insured stating that security as required by 
  1.25  section 65B.48 has been provided for the insured's vehicle.  
  1.26     (e) "Law enforcement agency" means the law enforcement 
  1.27  agency that employed the peace officer who demanded proof of 
  1.28  insurance under this section or section 169.792.  
  2.1      (f) "Peace officer" or "officer" means an employee of a 
  2.2   political subdivision or state law enforcement agency, including 
  2.3   the Minnesota state patrol, who is licensed by the Minnesota 
  2.4   board of peace officer standards and training and is authorized 
  2.5   to make arrests for violations of traffic laws. 
  2.6      (g) "Proof of insurance" means an insurance identification 
  2.7   card, written statement, or insurance policy as defined by 
  2.8   section 65B.14, subdivision 2. 
  2.9      (h) "Vehicle" means a motor vehicle as defined in section 
  2.10  65B.43, subdivision 2, or a motorcycle as defined in section 
  2.11  65B.43, subdivision 13.  
  2.12     (i) "Written statement" means a written statement by a 
  2.13  licensed insurance agent stating the name and address of the 
  2.14  insured, the vehicle identification number of the insured's 
  2.15  vehicle, that a plan of reparation security as required by 
  2.16  section 65B.48 has been provided for the insured's vehicle, and 
  2.17  the dates of the coverage. 
  2.18     (j) The definitions in section 65B.43 apply to sections 
  2.19  169.792 to 169.799 169.798. 
  2.20     Sec. 2.  Minnesota Statutes 2002, section 169.792, 
  2.21  subdivision 5, is amended to read: 
  2.22     Subd. 5.  [WRITTEN NOTICE.] (a) When proof of insurance is 
  2.23  demanded and none is in possession, the law enforcement agency 
  2.24  may send or give the driver written notice as provided in this 
  2.25  subdivision, unless the officer issues a citation to the driver 
  2.26  under section 169.791 or 169.797.  If the driver is not the 
  2.27  owner and does not produce the required proof of insurance 
  2.28  within ten days of the demand, the law enforcement agency may 
  2.29  send or give written notice to the owner of the vehicle.  
  2.30     (b) Within ten days after receipt of the notice, if given, 
  2.31  the driver or owner shall produce the required proof of 
  2.32  insurance to the place stated in the notice.  Notice to the 
  2.33  driver or owner by mail is presumed to be received within five 
  2.34  days after mailing.  It is not a defense that a person failed to 
  2.35  notify the department of public safety of a change of name or 
  2.36  address as required under section 171.11. 
  3.1      (c) The department of public safety shall prescribe a form 
  3.2   setting forth the written notice to be provided to the driver or 
  3.3   owner.  The department shall, upon request, provide a sample of 
  3.4   the form to any law enforcement agency.  The notice shall 
  3.5   provide that the driver or owner must produce the proof of 
  3.6   insurance to the law enforcement agency, at the place specified 
  3.7   in the notice.  The notice shall also state: 
  3.8      (1) that Minnesota law requires every driver and owner to 
  3.9   produce an insurance identification card, insurance policy, or 
  3.10  written statement indicating that the vehicle had insurance at 
  3.11  the time of an officer's demand, no later than the date and time 
  3.12  specified in the citation for the driver's first court 
  3.13  appearance, if a citation is issued, or within ten days of 
  3.14  receipt of the written notice if a written notice is sent or 
  3.15  given, provided, however, that a driver who does not own the 
  3.16  vehicle shall provide the name and address of the owner; 
  3.17     (2) that if the driver fails to produce the information 
  3.18  within the required time or if the owner fails to produce the 
  3.19  information within ten days of receipt of the notice from the 
  3.20  peace officer, the commissioner of public safety shall revoke 
  3.21  the person's driver's license or permit to drive for a minimum 
  3.22  of 30 days, and shall revoke the registration of the vehicle; 
  3.23     (3) that any person who displays or causes another to 
  3.24  display an insurance identification card, insurance policy, or 
  3.25  written statement, knowing that the insurance is not in force, 
  3.26  is guilty of a misdemeanor; and 
  3.27     (4) that any person who alters or makes a fictitious 
  3.28  identification card, insurance policy, or written statement, or 
  3.29  knowingly displays an altered or fictitious identification card, 
  3.30  insurance policy, or written statement, is guilty of a 
  3.31  misdemeanor. 
  3.32     Sec. 3.  Minnesota Statutes 2002, section 169.796, is 
  3.33  amended by adding a subdivision to read: 
  3.34     Subd. 3.  [SAMPLING TO VERIFY INSURANCE COVERAGE.] (a) The 
  3.35  commissioner of public safety must implement a monthly sampling 
  3.36  program to verify insurance coverage.  The sample must annually 
  4.1   include at least two percent of all drivers who own vehicles 
  4.2   licensed in the state, half of whom during the previous year 
  4.3   have been convicted of at least one vehicle insurance law 
  4.4   violation, have had a driver's license revoked or suspended due 
  4.5   to habitual violation of traffic laws, have had no insurance in 
  4.6   effect at the time of a reportable crash, or have been convicted 
  4.7   of an alcohol-related motor vehicle offense.  No sample may be 
  4.8   selected based on race, religion, physical or mental disability, 
  4.9   economic status, or geographic location.  
  4.10     (b) The commissioner must request each vehicle owner 
  4.11  included in the sample to furnish insurance coverage information 
  4.12  to the commissioner within 30 days.  The request must require 
  4.13  the owner to state whether or not the motor vehicle was insured 
  4.14  on the verification date stated in the commissioner's request.  
  4.15  The request may require, but is not limited to, a signed 
  4.16  statement by the owner that the information is true and correct, 
  4.17  the names and addresses of insurers, policy numbers, and 
  4.18  expiration dates of insurance coverage. 
  4.19     (c) The commissioner must conduct a verification of the 
  4.20  response by transmitting necessary information to the insurance 
  4.21  companies named in the owner's response.  
  4.22     (d) The insurance companies must electronically notify the 
  4.23  commissioner, within 30 days of the commissioner's request, of 
  4.24  any false statements regarding coverage.  
  4.25     (e) The commissioner must suspend, without preliminary 
  4.26  hearing, the driver's license, if any, of a vehicle owner who 
  4.27  falsely claims coverage, who indicates that coverage was not in 
  4.28  effect at the time specified in the request, or who fails to 
  4.29  respond to the commissioner's request to furnish proof of 
  4.30  insurance.  The commissioner must comply with the notice 
  4.31  requirement of section 171.18, subdivision 2.  
  4.32     (f) Before reinstatement of the driver's license, the owner 
  4.33  must produce proof of required insurance in a form satisfactory 
  4.34  to the commissioner.  The owner of the policy must maintain the 
  4.35  proof of required insurance for a period of at least 12 months.  
  4.36  The commissioner must suspend, without preliminary hearing, the 
  5.1   driver's license of any person determined by the commissioner 
  5.2   not to have maintained adequate proof of the required insurance. 
  5.3      Sec. 4.  Minnesota Statutes 2002, section 169.797, 
  5.4   subdivision 4, is amended to read: 
  5.5      Subd. 4.  [PENALTY.] (a) A person who violates this section 
  5.6   is guilty of a misdemeanor.  A person is guilty of a gross 
  5.7   misdemeanor who violates this section within ten years of the 
  5.8   first of two prior convictions under this section, section 
  5.9   169.791, or a statute or ordinance in conformity with one of 
  5.10  those sections.  The operator of a vehicle who violates 
  5.11  subdivision 3 and who causes or contributes to causing a vehicle 
  5.12  accident that results in the death of any person or in 
  5.13  substantial bodily harm to any person, as defined in section 
  5.14  609.02, subdivision 7a, is guilty of a gross misdemeanor.  The 
  5.15  same prosecuting authority who is responsible for prosecuting 
  5.16  misdemeanor violations of this section is responsible for 
  5.17  prosecuting gross misdemeanor violations of this section.  In 
  5.18  addition to any sentence of imprisonment that the court may 
  5.19  impose on a person convicted of violating this section, the 
  5.20  court shall impose a fine of not less than $200 nor more than 
  5.21  the maximum amount authorized by law.  The court may allow 
  5.22  community service in lieu of any fine imposed if the defendant 
  5.23  is indigent. 
  5.24     (b) The court may impose consecutive sentences for offenses 
  5.25  arising out of a single course of conduct as permitted in 
  5.26  section 609.035, subdivision 2. 
  5.27     (c) In addition to the criminal penalty, the driver's 
  5.28  license of an operator convicted under this section shall be 
  5.29  revoked for not more than 12 months.  If the operator is also an 
  5.30  owner of the vehicle, the registration of the vehicle shall also 
  5.31  be revoked for not more than 12 months.  Before reinstatement of 
  5.32  a driver's license or registration, the operator shall file with 
  5.33  the commissioner of public safety the written certificate of an 
  5.34  insurance carrier authorized to do business in this state 
  5.35  stating that security has been provided by the operator as 
  5.36  required by section 65B.48. 
  6.1      (d) The commissioner shall include a notice of the 
  6.2   penalties contained in this section on all forms for 
  6.3   registration of vehicles required to maintain a plan of 
  6.4   reparation security. 
  6.5      Sec. 5.  Minnesota Statutes 2002, section 169.797, 
  6.6   subdivision 4a, is amended to read: 
  6.7      Subd. 4a.  [REGISTRATION REVOCATION AND LICENSE 
  6.8   SUSPENSION.] The commissioner of public safety shall revoke the 
  6.9   registration of any vehicle and may must suspend the driver's 
  6.10  license of any operator, without preliminary hearing upon a 
  6.11  showing by department records, including accident reports 
  6.12  required to be submitted by section 169.09, or other sufficient 
  6.13  evidence that security required by section 65B.48 has not been 
  6.14  provided and maintained.  Before reinstatement of the 
  6.15  registration, there shall be filed with the commissioner of 
  6.16  public safety the written certificate of an insurance carrier 
  6.17  authorized to do business in the state stating that security has 
  6.18  been provided as required by section 65B.48.  The commissioner 
  6.19  of public safety may require the certificate of insurance 
  6.20  provided to satisfy this subdivision to be certified by the 
  6.21  insurance carrier to be noncancelable for a period not to exceed 
  6.22  one year.  The commissioner of public safety may also require a 
  6.23  certificate of insurance to be filed with respect to all 
  6.24  vehicles required to be insured under section 65B.48 and owned 
  6.25  by any person whose driving privileges have been suspended or 
  6.26  revoked as provided in this section before reinstating the 
  6.27  person's driver's license. 
  6.28     Sec. 6.  Minnesota Statutes 2002, section 169.798, 
  6.29  subdivision 1, is amended to read: 
  6.30     Subdivision 1.  [AUTHORITY.] The commissioner of public 
  6.31  safety shall have the power and perform the duties imposed by 
  6.32  sections 65B.41 to 65B.71, this section, and sections 169.797 
  6.33  and 169.799 169.798, and may adopt rules to implement and 
  6.34  provide effective administration of the provisions requiring 
  6.35  security and governing termination of security. 
  6.36     Sec. 7.  Minnesota Statutes 2002, section 169.798, is 
  7.1   amended by adding a subdivision to read: 
  7.2      Subd. 4.  [ATTESTATION OF INSURANCE REQUIRED.] Every owner, 
  7.3   when applying for motor vehicle or motorcycle registration, 
  7.4   reregistration, or transfer of ownership, must attest that the 
  7.5   motor vehicle or motorcycle is covered by an insurance policy. 
  7.6      Sec. 8.  Minnesota Statutes 2002, section 171.20, 
  7.7   subdivision 4, is amended to read: 
  7.8      Subd. 4.  [REINSTATEMENT FEE.] (a) Before the license is 
  7.9   reinstated, (1) a person whose driver's license has been 
  7.10  suspended under section 171.16, subdivision 2; 171.18, except 
  7.11  subdivision 1, clause (10); or 171.182, or who has been 
  7.12  disqualified from holding a commercial driver's license under 
  7.13  section 171.165, and (2) a person whose driver's license has 
  7.14  been suspended under section 171.186 and who is not exempt from 
  7.15  such a fee, must pay a fee of $20.  
  7.16     (b) Before the license is reinstated, a person whose 
  7.17  license has been suspended or revoked under sections 169.791 to 
  7.18  169.798 must pay a $30 reinstatement fee. 
  7.19     (c) When fees are collected by a licensing agent appointed 
  7.20  under section 171.061, a handling charge is imposed in the 
  7.21  amount specified under section 171.061, subdivision 4.  The 
  7.22  reinstatement fee and surcharge must be deposited in an approved 
  7.23  state depository as directed under section 171.061, subdivision 
  7.24  4.  
  7.25     (d) A suspension may be rescinded without fee for good 
  7.26  cause. 
  7.27     Sec. 9.  Minnesota Statutes 2002, section 171.182, 
  7.28  subdivision 2, is amended to read: 
  7.29     Subd. 2.  [COPY OF JUDGMENT TO COMMISSIONER.] If a person 
  7.30  fails within 30 days to satisfy a judgment, the court 
  7.31  administrator, upon affidavit of the judgment creditor that the 
  7.32  judgment has not been satisfied, shall immediately forward 
  7.33  transmit electronically to the commissioner, in electronic 
  7.34  format, a certified copy of the judgment and affidavit of 
  7.35  identification.  
  7.36     If the judgment debtor named in a certified copy of a 
  8.1   judgment reported to the commissioner is a nonresident, the 
  8.2   commissioner shall transmit a certified copy of the judgment to 
  8.3   the official in charge of the issuance of drivers' licenses of 
  8.4   the state of which the judgment debtor is a resident.  
  8.5      Sec. 10.  [REPEALER.] 
  8.6      (a) Minnesota Statutes 2002, section 169.792, subdivision 
  8.7   12, is repealed. 
  8.8      (b) Minnesota Statutes 2002, section 169.794, is repealed.  
  8.9      (c) Minnesota Statutes 2002, section 169.799, is repealed. 
  8.10     (d) Minnesota Rules, part 7413.0400, is repealed.  
  8.11     Sec. 11.  [EFFECTIVE DATE.] 
  8.12     Sections 1 to 10 are effective January 1, 2004.