SF 1794

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to motor vehicles; requiring insurance 
  1.3             companies to report information; creating vehicle 
  1.4             insurance verification program and special revenue 
  1.5             account; requiring preparation of database to identify 
  1.6             uninsured motorists; requiring commissioner of public 
  1.7             safety to discontinue insurance verification sampling 
  1.8             program; declaring charges for violations of sampling 
  1.9             program laws to be void; reinstating certain drivers' 
  1.10            licenses; authorizing rulemaking; requiring report; 
  1.11            imposing criminal penalty; appropriating money; 
  1.12            amending Minnesota Statutes 2004, sections 168.013, by 
  1.13            adding a subdivision; 169.09, subdivision 13; 169.795; 
  1.14            169.796, subdivision 1; proposing coding for new law 
  1.15            in Minnesota Statutes, chapters 65B; 169; repealing 
  1.16            Minnesota Statutes 2004, section 169.796, subdivision 
  1.17            3. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19     Section 1.  [65B.90] [MANDATORY DISCLOSURE.] 
  1.20     Subdivision 1.  [INFORMATION REPORTING REQUIREMENT.] On at 
  1.21  least a monthly basis, each insurance company that issues 
  1.22  policies of reparation security in this state and each 
  1.23  administrator of a self-insurance plan registered with the 
  1.24  commissioner of public safety must provide to the agent 
  1.25  designated by the commissioner of public safety under section 
  1.26  169.7991 a record of each reparation security policy in force.  
  1.27  The record must include the name, date of birth, and driver's 
  1.28  license number of each named insured individual; make, year, and 
  1.29  identification number of each insured vehicle; and policy 
  1.30  number, effective date, and expiration date of each policy. 
  1.31     Subd. 2.  [NONLIABILITY.] Neither an insurance company nor 
  2.1   an administrator of a self-insurance plan is liable to any 
  2.2   person for complying with this section. 
  2.3      Sec. 2.  Minnesota Statutes 2004, section 168.013, is 
  2.4   amended by adding a subdivision to read: 
  2.5      Subd. 8a.  [VEHICLE INSURANCE VERIFICATION ACCOUNT; 
  2.6   SURCHARGE.] The commissioner shall impose a surcharge of 50 
  2.7   cents on registration taxes authorized under this section for 
  2.8   registration taxes collected January 1, 2006, or later.  For 
  2.9   registration taxes collected on and after January 1, 2007, the 
  2.10  surcharge is reduced to 25 cents.  The commissioner shall 
  2.11  forward the proceeds of the surcharge to the commissioner of 
  2.12  finance on a monthly basis.  Upon receipt, the commissioner of 
  2.13  finance shall credit the surcharge proceeds to a special revenue 
  2.14  account, to be known as the vehicle insurance verification 
  2.15  account.  Money in the account is appropriated to the 
  2.16  commissioner of public safety to be used to administer the 
  2.17  vehicle insurance verification program, including to contract 
  2.18  with an agent to carry out this program. 
  2.19     Sec. 3.  Minnesota Statutes 2004, section 169.09, 
  2.20  subdivision 13, is amended to read: 
  2.21     Subd. 13.  [REPORTS CONFIDENTIAL; EVIDENCE, FEE, PENALTY, 
  2.22  APPROPRIATION.] (a) All written reports and supplemental reports 
  2.23  required under this section shall be for the use of the 
  2.24  commissioner of public safety and other appropriate state, 
  2.25  federal, county, and municipal governmental agencies for 
  2.26  accident analysis purposes, except: 
  2.27     (1) the commissioner of public safety or any law 
  2.28  enforcement agency shall, upon written request of any person 
  2.29  involved in an accident or upon written request of the 
  2.30  representative of the person's estate, surviving spouse, or one 
  2.31  or more surviving next of kin, or a trustee appointed pursuant 
  2.32  to section 573.02, disclose to the requester, the requester's 
  2.33  legal counsel, or a representative of the requester's insurer 
  2.34  the report required under subdivision 8; 
  2.35     (2) the commissioner of public safety shall, upon written 
  2.36  request, provide the driver filing a report under subdivision 7 
  3.1   with a copy of the report filed by the driver; 
  3.2      (3) the commissioner of public safety may verify with 
  3.3   insurance companies vehicle insurance information to enforce 
  3.4   sections 65B.48, 169.792, 169.793, 169.796, and 169.797, and 
  3.5   169.7991; 
  3.6      (4) the commissioner of public safety shall provide the 
  3.7   commissioner of transportation the information obtained for each 
  3.8   traffic accident involving a commercial motor vehicle, for 
  3.9   purposes of administering commercial vehicle safety regulations; 
  3.10  and 
  3.11     (5) the commissioner of public safety may give to the 
  3.12  United States Department of Transportation commercial vehicle 
  3.13  accident information in connection with federal grant programs 
  3.14  relating to safety. 
  3.15     (b) Accident reports and data contained in the reports 
  3.16  shall not be discoverable under any provision of law or rule of 
  3.17  court.  No report shall be used as evidence in any trial, civil 
  3.18  or criminal, arising out of an accident, except that the 
  3.19  commissioner of public safety shall furnish upon the demand of 
  3.20  any person who has, or claims to have, made a report, or, upon 
  3.21  demand of any court, a certificate showing that a specified 
  3.22  accident report has or has not been made to the commissioner 
  3.23  solely to prove compliance or failure to comply with the 
  3.24  requirements that the report be made to the commissioner. 
  3.25     (c) Nothing in this subdivision prevents any person who has 
  3.26  made a report pursuant to this section from providing 
  3.27  information to any persons involved in an accident or their 
  3.28  representatives or from testifying in any trial, civil or 
  3.29  criminal, arising out of an accident, as to facts within the 
  3.30  person's knowledge.  It is intended by this subdivision to 
  3.31  render privileged the reports required, but it is not intended 
  3.32  to prohibit proof of the facts to which the reports relate. 
  3.33     (d) Disclosing any information contained in any accident 
  3.34  report, except as provided in this subdivision, section 13.82, 
  3.35  subdivision 3 or 6, or other statutes, is a misdemeanor. 
  3.36     (e) The commissioner of public safety may charge authorized 
  4.1   persons a $5 fee for a copy of an accident report.  The 
  4.2   commissioner may also furnish copies of the modified accident 
  4.3   records database to private agencies as provided in paragraph 
  4.4   (g), for not less than the cost of preparing the copies on a 
  4.5   bulk basis.  
  4.6      (f) The commissioner and law enforcement agencies may 
  4.7   charge commercial users who request access to response or 
  4.8   incident data relating to accidents a fee not to exceed 50 cents 
  4.9   per report.  "Commercial user" is a user who in one location 
  4.10  requests access to data in more than five accident reports per 
  4.11  month, unless the user establishes that access is not for a 
  4.12  commercial purpose.  Money collected by the commissioner under 
  4.13  this paragraph is appropriated to the commissioner. 
  4.14     (g) The commissioner may provide a modified copy of the 
  4.15  accident records database that does not contain names, driver's 
  4.16  license numbers, vehicle license plate numbers, addresses, or 
  4.17  other identifying data to the public upon request.  However, 
  4.18  unless the accident records data base includes the motor vehicle 
  4.19  identification number, the commissioner shall include the 
  4.20  vehicle license plate number if a private agency certifies and 
  4.21  agrees that the agency: 
  4.22     (1) is in the business of collecting accident and damage 
  4.23  information on vehicles; 
  4.24     (2) will use the vehicle license plate number only for the 
  4.25  purpose of identifying vehicles that have been involved in 
  4.26  accidents or damaged in order to provide this information to 
  4.27  persons seeking access to a vehicle's history and not for the 
  4.28  purpose of identifying individuals or for any other purpose; and 
  4.29     (3) will be subject to the penalties and remedies under 
  4.30  sections 13.08 and 13.09. 
  4.31     Sec. 4.  Minnesota Statutes 2004, section 169.795, is 
  4.32  amended to read: 
  4.33     169.795 [VEHICLE INSURANCE RULES.] 
  4.34     The commissioner of public safety shall adopt rules 
  4.35  necessary to implement sections 168.041, subdivision 4; 169.09, 
  4.36  subdivision 14; and 169.791 to 169.796 169.7992. 
  5.1      Sec. 5.  Minnesota Statutes 2004, section 169.796, 
  5.2   subdivision 1, is amended to read: 
  5.3      Subdivision 1.  [RELEASE OF INFORMATION.] An insurance 
  5.4   company shall release information to the Department of Public 
  5.5   Safety, its agent designated under section 169.7991, or the law 
  5.6   enforcement authorities necessary to the verification of 
  5.7   insurance coverage.  An insurance company or its agent acting on 
  5.8   its behalf, or an authorized person who releases the above 
  5.9   information, whether oral or written, acting in good faith, is 
  5.10  immune from any liability, civil or criminal, arising in 
  5.11  connection with the release of the information. 
  5.12     Sec. 6.  [169.7967] [INFORMATION MAY BE REQUIRED.] 
  5.13     A vehicle owner shall provide any information the 
  5.14  commissioner reasonably requires to determine that a motor 
  5.15  vehicle or motorcycle is covered by a plan of reparation 
  5.16  security.  This information includes the name and address of the 
  5.17  owner, the name of the reparation obligor, the insurance policy 
  5.18  number, and any other data the commissioner requires. 
  5.19     Sec. 7.  [169.7991] [VEHICLE INSURANCE VERIFICATION 
  5.20  PROGRAM.] 
  5.21     Subdivision 1.  [ADMINISTRATION OF PROGRAM; CONTRACT.] The 
  5.22  commissioner of public safety shall contract with an agent to 
  5.23  create and administer a vehicle insurance verification program.  
  5.24  The program will involve the establishment of a vehicle 
  5.25  insurance and registration database to verify compliance with a 
  5.26  motor vehicle owner's or operator's security requirements under 
  5.27  section 65B.48. 
  5.28     Subd. 2.  [AGENT DUTIES.] The agent shall: 
  5.29     (1) create, maintain, and update monthly a database of 
  5.30  vehicle insurance policies in force in this state from 
  5.31  information provided by insurance companies, administrators of 
  5.32  self-insurance plans under section 65B.90, and the commissioner 
  5.33  of public safety with regard to self-insurers; 
  5.34     (2) create, maintain, and update monthly a database of 
  5.35  vehicles registered in this state from information supplied by 
  5.36  the commissioner of public safety; 
  6.1      (3) compare, on a monthly basis, the vehicle registration 
  6.2   database with the vehicle insurance database to identify 
  6.3   vehicles registered in this state with owners who are not in 
  6.4   compliance with security requirements under section 65B.48; 
  6.5      (4) transmit, on a monthly basis, to the commissioner a 
  6.6   record of all vehicles registered in this state, but not insured 
  6.7   in this state; and 
  6.8      (5) issue notices as described in subdivisions 4 and 5. 
  6.9      Subd. 3.  [COMMISSIONER DUTIES.] The commissioner of public 
  6.10  safety shall provide the agent, at least monthly, with the 
  6.11  following information: 
  6.12     (1) on each vehicle registered within the state:  vehicle 
  6.13  make, model, and identification number; owner's name, date of 
  6.14  birth, address, and driver's license number; and date of next 
  6.15  required registration renewal; and 
  6.16     (2) on each individual self-insurer registered with the 
  6.17  department under section 65B.48, subdivision 3:  name and date 
  6.18  of birth; driver's license number; and make, year, and 
  6.19  identification number of each insured vehicle. 
  6.20     Subd. 4.  [NONCOMPLIANCE NOTICE.] When a comparison under 
  6.21  subdivision 2 identifies a vehicle registered within this state 
  6.22  without a plan of reparation security required under section 
  6.23  65B.48 for two consecutive months, the agent shall mail notice 
  6.24  of noncompliance to the vehicle owner stating that the owner 
  6.25  must provide to the agent within 45 days proof of reparation 
  6.26  security required by section 65B.48 or proof of exemption from 
  6.27  the compulsory reparation security requirement.  The notice must 
  6.28  state that operation of a vehicle without required insurance may 
  6.29  subject the owner to criminal penalties, driver's license 
  6.30  revocation, vehicle registration revocation, and reinstatement 
  6.31  fees.  The envelope in which the notice is mailed must clearly 
  6.32  state on the front that the contents of the envelope are 
  6.33  time-sensitive and a response is required.  The envelope must 
  6.34  display information necessary to enable the postal service to 
  6.35  return undeliverable mail to the sender.  The commissioner may 
  6.36  not block forwarding of the mailed notice. 
  7.1      Subd. 5.  [ADDITIONAL NOTICE.] If, at least 45 days after 
  7.2   the date of a notice to a vehicle owner issued under subdivision 
  7.3   4, the agent has not received proof of required reparation 
  7.4   security or exemption from the requirement, the agent shall 
  7.5   issue an additional notice of noncompliance to the vehicle 
  7.6   owner.  The notice must contain a statement of the applicable 
  7.7   penalties, including criminal penalties, driver's license 
  7.8   revocation, vehicle registration revocation, and reinstatement 
  7.9   fees for operating a vehicle without required insurance.  The 
  7.10  agent shall notify the commissioner of the issuance of an 
  7.11  additional notice of noncompliance.  The commissioner shall 
  7.12  record the issuance of the notice and date of issuance on the 
  7.13  vehicle record. 
  7.14     Sec. 8.  [169.7992] [INSURANCE INFORMATION DISCLOSURE; 
  7.15  PENALTY.] 
  7.16     Subdivision 1.  [RESTRICTION ON DISCLOSURE.] The 
  7.17  information in the database established in section 169.7991 may 
  7.18  not be disclosed under chapter 13 or otherwise, except as 
  7.19  follows: 
  7.20     (a) For investigating, litigating, or enforcing the 
  7.21  compulsory reparation security requirement under section 65B.48, 
  7.22  the agent shall verify insurance coverage for a state or local 
  7.23  government agency. 
  7.24     (b) For investigating, litigating, or enforcing the 
  7.25  compulsory reparation security requirement under section 65B.48, 
  7.26  the agent, upon request of a state or local government agency, 
  7.27  shall issue to the requesting agency a certification of 
  7.28  insurance status, as contained in the database, of a specific 
  7.29  individual or vehicle for a time period designated by the 
  7.30  government agency. 
  7.31     (c) Upon request, the department shall disclose whether or 
  7.32  not a person is insured to: 
  7.33     (1) that person; 
  7.34     (2) the parent or legal guardian of that person, if the 
  7.35  person is an unemancipated minor; 
  7.36     (3) the legal guardian of that person, if the person is 
  8.1   legally incapacitated; 
  8.2      (4) a person who has power of attorney from the insured 
  8.3   person; 
  8.4      (5) a person who submits a notarized release from the 
  8.5   insured person dated no more than 90 days before the date the 
  8.6   request is made; or 
  8.7      (6) a person suffering loss or injury in a motor vehicle 
  8.8   accident in which the insured person is involved, but only as 
  8.9   part of an accident report as authorized in section 169.09. 
  8.10     Subd. 2.  [CRIMINAL PENALTY.] A person who knowingly 
  8.11  releases or discloses information from the database for a 
  8.12  purpose other than those authorized in this section, or to a 
  8.13  person who is not entitled to it, is guilty of a gross 
  8.14  misdemeanor. 
  8.15     Subd. 3.  [INSURER NONLIABILITY.] An insurer is not liable 
  8.16  to any person for complying with this section by providing 
  8.17  information to the agent. 
  8.18     Subd. 4.  [STATE AND DEPARTMENT NONLIABILITY.] Neither the 
  8.19  state nor the department's agent is liable to any person for 
  8.20  gathering, managing, or using the information in the database as 
  8.21  provided in this section and section 169.7991, or for the 
  8.22  consequences of any act carried out under the authority of 
  8.23  section 169.796, subdivision 3. 
  8.24     Sec. 9.  [REINSTATEMENT OF SUSPENDED LICENSES.] 
  8.25     The commissioner of public safety, without requiring proof 
  8.26  of insurance or payment of a reinstatement fee, shall reinstate 
  8.27  the driver's license of every vehicle owner whose license is 
  8.28  suspended under Minnesota Statutes, section 169.796, subdivision 
  8.29  3. 
  8.30     Sec. 10.  [DISMISSAL OF CHARGES.] 
  8.31     All charges, complaints, and citations issued for a 
  8.32  violation of Minnesota Statutes, section 169.796, subdivision 3, 
  8.33  or a related violation, including driving after a license 
  8.34  suspension imposed for failure to comply with the provisions of 
  8.35  Minnesota Statutes, section 169.796, subdivision 3, are void and 
  8.36  must be dismissed. 
  9.1      Sec. 11.  [REMOVAL OF PREVIOUS VIOLATIONS.] 
  9.2      The commissioner shall purge from a person's driving record 
  9.3   any notation of a violation of Minnesota Statutes, section 
  9.4   169.796, subdivision 3, and any notation of a related violation, 
  9.5   including driving after a license suspension imposed for failure 
  9.6   to comply with the provisions of Minnesota Statutes, section 
  9.7   169.796, subdivision 3.  An insurer may not increase a premium 
  9.8   for a policy of vehicle insurance on the basis of a violation 
  9.9   described in this section by a named insured if the violation 
  9.10  occurred before the effective date of this section, and any such 
  9.11  increase previously imposed must be rescinded. 
  9.12     Sec. 12.  [REPORT TO LEGISLATURE.] 
  9.13     The commissioner of public safety shall report to the 
  9.14  chairs of the house of representatives and senate committees 
  9.15  with jurisdiction over transportation policy by September 1, 
  9.16  2007, concerning the operation of the vehicle insurance 
  9.17  verification program, and the impact of the program on the 
  9.18  identification and number of uninsured motorists.  
  9.19     Sec. 13.  [REPEALER.] 
  9.20     Minnesota Statutes 2004, section 169.796, subdivision 3, is 
  9.21  repealed. 
  9.22     Sec. 14.  [EFFECTIVE DATE.] 
  9.23     
  9.24     Sections 9, 10, 11, and 13 are effective the day following 
  9.25  final enactment.