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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1989 

                        CHAPTER 321-H.F.No. 1194 
           An act relating to insurance; requiring obligors to 
          issue an insurance identification card; requiring a 
          driver or owner to produce proof of insurance; 
          providing for administrative review; exempting certain 
          vehicles; providing for the impoundment of 
          registration plates; providing for a limited license 
          in certain circumstances; defining terms; providing 
          penalties; amending Minnesota Statutes 1988, sections 
          65B.67, subdivisions 2, 3, 3a, and 4; 168.041, 
          subdivisions 4, 4a, and by adding a subdivision; 
          169.09, subdivision 14; and 171.30, subdivision 1; 
          proposing coding for new law in Minnesota Statutes, 
          chapters 65B and 169; repealing Minnesota Statutes 
          1988, section 65B.481. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  [65B.482] [INSURANCE IDENTIFICATION CARDS.] 
    Subdivision 1.  [ISSUANCE OF CARD.] Every obligor 
transacting business in this state shall provide an insurance 
identification card for each vehicle covered at the time of 
initiating each policy of automobile insurance, as defined in 
section 65B.14, subdivision 2, and at the time of policy 
renewal.  When an insured has five or more vehicles registered 
in this state, the obligor may use the designation "all owned 
vehicles" on each identification card in lieu of a specified 
description.  The card must state:  
    (1) the insured's name; 
    (2) the policy number; 
    (3) the policy dates of coverage; 
    (4) the make, model, and year of the vehicle being covered; 
    (5) the vehicle identification number or at least the last 
three digits of that number; and 
    (6) the name of the obligor providing coverage.  
    Subd. 2.  [NOTICE OF CRIMINAL PENALTIES.] Every obligor 
transacting business in this state shall provide to the insured 
at the time of issuing an insurance identification card under 
subdivision 1 a plain-language summary of the criminal penalties 
imposed by section 65B.67, section 10, and section 12. 
    Sec. 2.  Minnesota Statutes 1988, section 65B.67, 
subdivision 2, is amended to read: 
    Subd. 2.  [VIOLATION BY OWNER.] Any owner of a motor 
vehicle or motorcycle with respect to which security is required 
under sections 65B.41 to 65B.71 who operates the motor vehicle 
or motorcycle or permits it to be operated upon a public 
highway, street or road in this state and who knows or has 
reason to know that the motor vehicle or motorcycle does not 
have security complying with the terms of section 65B.48, is 
guilty of a misdemeanor crime and shall be sentenced as provided 
in subdivision 4.  
     Sec. 3.  Minnesota Statutes 1988, section 65B.67, 
subdivision 3, is amended to read: 
    Subd. 3.  [VIOLATION BY DRIVER.] Any other person who 
operates a motor vehicle or motorcycle upon a public highway, 
street or road in this state who knows or has reason to know 
that the owner does not have security complying with the terms 
of section 65B.48 in full force and effect is guilty of a 
misdemeanor crime and shall be sentenced as provided in 
subdivision 4. 
    Sec. 4.  Minnesota Statutes 1988, section 65B.67, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [FALSE STATEMENTS.] Any owner of a motor vehicle 
or motorcycle who falsely claims to have a plan of reparation 
security in effect at the time of registration of a motor 
vehicle or motorcycle pursuant to section 65B.48 is guilty of 
a misdemeanor crime and shall be sentenced as provided in 
subdivision 4. 
    Sec. 5.  Minnesota Statutes 1988, section 65B.67, 
subdivision 4, is amended to read:  
    Subd. 4.  [PENALTY.] Any operator of a motor vehicle or 
motorcycle (a) A person who is convicted under the terms of 
violates this section, is guilty of a misdemeanor, and shall be 
sentenced as provided in section 609.03, clause (3).  Also A 
person who violates this section within ten years of the first 
of two prior convictions under this section, or a statute or 
ordinance from another state in conformity with this section, is 
guilty of a gross misdemeanor.  The operator of a motor vehicle 
or motorcycle who violates subdivision 3 and who causes or 
contributes to causing a motor vehicle or motorcycle accident 
that results in the death of any person or in substantial bodily 
harm to any person, as defined in section 609.02, subdivision 
7a, is guilty of a gross misdemeanor.  The same prosecuting 
authority who is responsible for prosecuting misdemeanor 
violations of this section is responsible for prosecuting gross 
misdemeanor violations of this section.  
    (b) In addition to the criminal penalty, the operator's 
driver's license of an operator convicted under this section 
shall be revoked for not more than 12 months.  If the operator 
is also an owner of the motor vehicle or motorcycle, the 
registration of the motor vehicle or motorcycle shall also be 
revoked for not more than 12 months.  Before reinstatement of a 
driver's license or registration, the operator shall file with 
the commissioner of public safety the written certificate of an 
insurance carrier authorized to do business in this state 
stating that security has been provided by the operator as 
required by section 65B.48.  
    (c) The commissioner shall include a notice of the 
penalties contained in this section on all forms for 
registration of motor vehicles or motorcycles required to 
maintain a plan of reparation security. 
    Sec. 6.  Minnesota Statutes 1988, section 168.041, is 
amended by adding a subdivision to read: 
    Subd. 1a.  When an owner is convicted under section 
169.791, the court shall require the registration plates of the 
motor vehicle or motorcycle involved in the violation owned by 
the person to be surrendered to the court for the longer of the 
following: 
    (1) the remainder of the period of revocation to be served 
under section 169.792; or 
    (2) until the owner obtains proof of insurance referred to 
in section 169.792, subdivision 10, satisfactory to the 
commissioner of public safety.  
    Sec. 7.  Minnesota Statutes 1988, section 168.041, 
subdivision 4, is amended to read: 
    Subd. 4.  If the court issues an impoundment order, the 
registration plates and certificates must be surrendered to the 
court either three days after the order is issued or on the date 
specified by the court, whichever date is later.  The court 
shall forward surrendered registration certificates to the 
registrar of motor vehicles within seven days after their 
surrender.  The court may destroy the surrendered registration 
plates.  Except as provided in subdivision 1a, 4a, 5, 6, or 7, 
no new registration plates may be issued to the violator or 
owner until the driver's license of the violator has been 
reissued or reinstated.  The court shall notify the commissioner 
of public safety within ten days after issuing an impoundment 
order. 
    Sec. 8.  Minnesota Statutes 1988, section 168.041, 
subdivision 4a, is amended to read: 
    Subd. 4a.  [ADMINISTRATIVE REVIEW.] At any time during the 
effective period of an impoundment order, a person may request 
in writing a review of the impoundment order by the commissioner 
of public safety.  Upon receiving a request, the commissioner or 
the commissioner's designee shall review the order, the evidence 
upon which the order was based, and any other material 
information brought to the attention of the commissioner, and 
determine whether sufficient cause exists to sustain the order.  
The commissioner shall report in writing the results of the 
review within 15 days of receiving the request.  The review 
provided in this subdivision is not subject to the contested 
case provisions of the administrative procedure act in sections 
14.01 to 14.70.  As a result of this review, the commissioner 
may authorize the issuance at no cost of new registration plates 
and a registration certificate to the owner of the vehicle if 
the owner's driver's license or driving privileges were not 
revoked under section 169.121 or 169.123 and the owner was not a 
passenger in the vehicle at the time of the violation. 
    Review under this subdivision shall take place, if 
possible, at the same time as any administrative review of the 
person's license revocation under section 169.123, subdivision 
5b or section 169.792, subdivision 8. 
    Sec. 9.  Minnesota Statutes 1988, section 169.09, 
subdivision 14, is amended to read: 
    Subd. 14.  [PENALTIES.] (a) The driver of any vehicle who 
violates subdivision 1 or 6 and who caused the accident is 
punishable as follows:  
     (1) if the accident results in the death of any person, the 
driver is guilty of a felony and may be sentenced to 
imprisonment for not more than ten years, or to payment of a 
fine of not more than $20,000, or both; 
     (2) if the accident results in great bodily harm to any 
person, as defined in section 609.02, subdivision 8, the driver 
is guilty of a felony and may be sentenced to imprisonment for 
not more than five years, or to payment of a fine of not more 
than $10,000, or both; or 
     (3) if the accident results in substantial bodily harm to 
any person, as defined in section 609.02, subdivision 7a, the 
driver is guilty of a felony and may be sentenced to 
imprisonment for not more than three years, or to payment of a 
fine of not more than $5,000, or both.  
     (b) The driver of any vehicle who violates subdivision 1 or 
6 and who did not cause the accident is punishable as follows:  
     (1) if the accident results in the death of any person, the 
driver is guilty of a felony and may be sentenced to 
imprisonment for not more than three years, or to payment of a 
fine of not more than $5,000, or both; 
     (2) if the accident results in great bodily harm to any 
person, as defined in section 609.02, subdivision 8, the driver 
is guilty of a felony and may be sentenced to imprisonment for 
not more than one year and one day, or to payment of a fine of 
not more than $3,000, or both; or 
    (3) if the accident results in substantial bodily harm to 
any person, as defined in section 609.02, subdivision 7a, the 
driver may be sentenced to imprisonment for not more than one 
year, or to payment of a fine of not more than $3,000, or both.  
    (c) The driver of any vehicle involved in an accident not 
resulting in substantial bodily harm or death who violates 
subdivision 1 or 6 may be sentenced to imprisonment for not more 
than one year, or to payment of a fine of not more than $3,000, 
or both.  
    (d) Any person who violates subdivision 3, clause (b) is 
guilty of a petty misdemeanor.  
    (e) Any person who violates subdivision 2, 3, clause (a), 
4, 5, 7, 8, 10, 11, or 12 is guilty of a misdemeanor. 
    The attorney in the jurisdiction in which the violation 
occurred who is responsible for prosecution of misdemeanor 
violations of this section shall also be responsible for 
prosecution of gross misdemeanor violations of this section. 
    Sec. 10.  [169.791] [CRIMINAL PENALTY FOR FAILURE TO 
PRODUCE PROOF OF INSURANCE.] 
     Subdivision 1.  [TERMS.] (a) For purposes of this section 
and sections 11 to 15, the following terms have the meanings 
given. 
    (b) "Commissioner" means the commissioner of public safety. 
    (c) "Insurance identification card" means a card issued by 
an obligor to an insured stating that security as required by 
section 65B.48 has been provided for the insured's vehicle.  
    (d) "Proof of insurance" means an insurance identification 
card, written statement, or insurance policy as defined by 
section 65B.14, subdivision 2. 
    (e) "Written statement" means a written statement by a 
licensed insurance agent in a form acceptable to the 
commissioner stating that security has been provided for the 
insured's vehicle and the dates of the coverage. 
    Subd. 2.  [REQUIREMENT FOR DRIVER WHETHER OR NOT THE 
OWNER.] Every driver shall have in possession at all times when 
operating a motor vehicle and shall produce on demand of a peace 
officer proof of insurance in force at the time of the demand 
covering the vehicle being operated.  If the driver is unable to 
produce the required proof of insurance upon the demand of a 
peace officer, the driver shall, within 14 days after the 
demand, produce proof of insurance stating that security had 
been provided for the vehicle that was being operated at the 
time of the demand, or the name and address of the owner to the 
place stated in the notice provided by the officer.  The 
required proof of insurance may be sent by mail by the driver as 
long as it is received within 14 days.  Except as provided in 
subdivision 3, any driver who fails to produce proof of 
insurance as required by this section within 14 days of the 
demand is guilty of a misdemeanor.  The peace officer may mail 
the citation to the address given by the driver or to the 
address stated on the driver's license, and such service by mail 
is valid notwithstanding section 629.34.  It is not a defense to 
service that a person failed to notify the department of public 
safety of a change of name or address as required under section 
171.11.  The citation may be sent after the 14-day period.  A 
driver who is not the owner of the motor vehicle or motorcycle 
does not violate this section unless the driver knew or had 
reason to know that the owner did not have proof of insurance 
required by this section. 
    Subd. 3.  [REQUIREMENT FOR DRIVER WHO IS NOT THE OWNER.] If 
the driver is not the owner of the vehicle, the driver shall, 
within 14 days of the officer's demand, provide the officer with 
proof of insurance or the name and address of the owner.  Any 
driver under this subdivision who fails to provide proof of 
insurance or to inform the officer of the name and address of 
the owner within 14 days of the officer's demand is guilty of a 
misdemeanor. 
    Subd. 4.  [REQUIREMENT FOR OWNER WHO IS NOT THE 
DRIVER.] The officer may send or provide a notice to the owner 
of the motor vehicle requiring the owner to produce proof of 
insurance for the vehicle that was being operated at the time of 
the demand.  Notice by mail is presumed to be received five days 
after mailing and shall be sent to the owner's current address 
or the address listed on the owner's driver's license.  Within 
14 days after receipt of the notice, the owner shall produce the 
required proof of insurance to the place stated in the notice 
received by the owner.  The required proof of insurance may be 
sent by mail by the owner as long as it is received within 14 
days.  Any owner who fails to produce proof of insurance within 
14 days of an officer's request is guilty of a misdemeanor.  It 
is an affirmative defense to a charge against the owner that the 
driver used the owner's vehicle without consent or 
misrepresented his or her insurance coverage to the owner.  The 
peace officer may mail the citation to the owner's current 
address or address stated on the owner's driver's license.  It 
is not a defense that a person failed to notify the department 
of public safety of a change of name or address as required 
under section 171.11.  The citation may be sent after the 14-day 
period. 
    Subd. 5.  [EXEMPTIONS.] Buses or other commercial vehicles 
operated by the metropolitan transit commission, commercial 
vehicles required to file proof of insurance pursuant to chapter 
221 and school buses as defined in section 171.01, subdivision 
21, are exempt from this section. 
    Subd. 6.  [PENALTY.] Any violation of this section is a 
misdemeanor. 
    Sec. 11.  [169.792] [REVOCATION OF LICENSE FOR FAILURE TO 
PRODUCE PROOF OF INSURANCE.] 
    Subdivision 1.  [IMPLIED CONSENT.] Any driver or owner of a 
motor vehicle consents, subject to the provisions of this 
section and section 169.791, to the requirement of having 
possession of proof of insurance, and to the revocation of the 
person's license if the driver or owner is unable to produce the 
required proof of insurance within 14 days of an officer's 
demand.  Any driver of a motor vehicle who is not the owner of 
the motor vehicle consents, subject to the provisions of this 
section and section 169.791, to providing to the officer the 
name and address of the owner of the motor vehicle or motorcycle.
    Subd. 2.  [REQUIREMENT FOR DRIVER WHETHER OR NOT THE 
OWNER.] Except as provided in subdivision 3, every driver of a 
motor vehicle shall, within 14 days after the demand of a peace 
officer, produce proof of insurance in force for the vehicle 
that was being operated at the time of the demand, to the place 
stated in the notice provided by the officer.  The required 
proof of insurance may be sent by the driver by mail as long as 
it is received within 14 days.  A driver who is not the owner 
does not violate this section unless the driver knew or had 
reason to know that the owner did not have proof of insurance 
required by this section. 
    Subd. 3.  [REQUIREMENT FOR DRIVER WHO IS NOT THE OWNER.] If 
the driver is not the owner of the vehicle, then the driver 
shall within 14 days of the officer's demand provide the officer 
with proof of insurance or the name and address of the owner. 
    Subd. 4.  [REQUIREMENT FOR OWNER WHO IS NOT THE 
DRIVER.] The officer may send or provide a notice to the owner 
requiring the owner to produce proof of insurance in force at 
the time of the demand covering the motor vehicle being 
operated.  The notice shall be sent to the owner's current 
address or the address listed on the owner's driver's license.  
Within 14 days after receipt of the notice, the owner shall 
produce the required proof of insurance to the place stated in 
the notice received by the owner.  Notice by mail is presumed to 
be received within five days after mailing.  It is not a defense 
that a person failed to notify the department of public safety 
of a change of name or address as required under section 171.11. 
    Subd. 5.  [NOTICE OF REVOCATION.] When proof of insurance 
is demanded and none is in possession, the officer shall give 
the driver written notice as provided herein.  If the driver is 
not the owner and does not produce the required proof of 
insurance within 14 days of the demand, the officer may send 
written notice to the owner of the vehicle.  The department of 
public safety shall prescribe a form setting forth the written 
notice to be provided to the driver or owner.  The notice shall 
specify the place to which the driver or owner must produce the 
proof of insurance.  The notice shall also state: 
    (1) that Minnesota law requires every driver and owner to 
produce an insurance identification card, insurance policy, or 
written statement indicating that the vehicle had insurance at 
the time of an officer's demand within 14 days of the demand, 
provided, however, that a driver who does not own the vehicle 
shall provide the name and address of the owner; 
    (2) that if the driver fails to produce the information 
within 14 days from the date of demand or if the owner fails to 
produce the information within 14 days of receipt of the notice 
from the peace officer, the commissioner of public safety shall 
revoke the person's driver's license or permit to drive, or 
nonresident operating privileges for a minimum of 30 days; 
    (3) that any person who displays or causes another to 
display an insurance identification card, insurance policy, or 
written statement, knowing that the insurance is not in force, 
is guilty of a misdemeanor; and 
    (4) that any person who alters or makes a fictitious 
identification card, insurance policy, or written statement, or 
knowingly displays an altered or fictitious identification card, 
insurance policy, or written statement, is guilty of a 
misdemeanor. 
    Subd. 6.  [REPORT TO THE COMMISSIONER OF PUBLIC SAFETY.] If 
a driver fails to produce the required proof of insurance or 
name and address of the owner within 14 days of the demand, the 
officer shall report the failure to the commissioner and may 
send a written notice to the owner.  If the owner fails to 
produce the required proof of insurance within 14 days of 
receipt of the notice, the officer shall report the failure to 
the commissioner. 
    Subd. 7.  [LICENSE REVOCATION.] Upon receiving the 
notification under subdivision 6, the commissioner shall revoke 
the person's driver's license or permit to drive, or nonresident 
operating privileges.  The revocation shall be effective 
beginning 14 days after the date of notification by the officer 
to the department of public safety.  In order to be revoked, 
notice must have been given or mailed to the person, as provided 
in this section.  The person's driver's license or permit to 
drive, or nonresident operating privileges, shall be revoked for 
the longer of:  (i) 30 days, or (ii) until the driver or owner 
files proof of insurance with the department of public safety 
satisfactory to the commissioner of public safety.  
    Subd. 8.  [ADMINISTRATIVE AND JUDICIAL REVIEW.] At any time 
during a period of revocation imposed under this section, a 
driver or owner may request in writing a review of the order of 
revocation by the commissioner.  Upon receiving a request, the 
commissioner or the commissioner's designee shall review the 
order, the evidence upon which the order was based, and any 
other material information brought to the attention of the 
commissioner, and determine whether sufficient cause exists to 
sustain the order.  Within 15 days of receiving the request, the 
commissioner shall send the results of the review in writing to 
the person requesting the review.  The review provided in this 
subdivision is not subject to the contested case provisions of 
the administrative procedure act in sections 14.01 to 14.69. 
    The availability of administrative review for an order of 
revocation shall have no effect upon the availability of 
judicial review under section 171.19. 
    Subd. 9.  [NOTICE OF ACTION TO OTHER STATES.] When it has 
been finally determined that a nonresident's operating privilege 
in this state has been revoked or denied, the commissioner of 
public safety shall give information in writing of the action 
taken to the official in charge of traffic control or public 
safety of the state of the person's residence and of any state 
in which the person has a license. 
    Subd. 10.  [TERMINATION OF REVOCATION PERIOD.] Before 
reinstatement of a driver's license or permit to drive, or 
nonresident operating privileges, the driver or owner shall 
produce proof of insurance indicating that the driver or owner 
has insurance coverage satisfactory to the commissioner.  The 
commissioner may require the insurance identification card 
provided to satisfy this subdivision be certified by the 
insurance carrier to be noncancelable for a period not to exceed 
12 months.  The commissioner of public safety may also require 
an insurance identification card to be filed with respect to any 
and all vehicles required to be insured under section 65B.48 and 
owned by any person whose driving privileges have been revoked 
as provided in this section before reinstating the person's 
driver's license. 
    Subd. 11.  [EXEMPTIONS.] Buses or other commercial vehicles 
operated by the metropolitan transit commission, commercial 
vehicles required to file proof of insurance pursuant to chapter 
221, and school buses as defined in section 171.01, subdivision 
21, are exempt from this section. 
    Sec. 12.  [169.793] [UNLAWFUL ACTS.] 
    Subdivision 1.  [ACTS.] It shall be unlawful for any person:
    (1) to issue, to display, or cause or permit to be 
displayed, or have in possession, an insurance identification 
card, policy, or written statement knowing or having reason to 
know that the insurance is not in force or is not in force as to 
the motor vehicle or motorcycle in question; 
    (2) to alter or make a fictitious insurance identification 
card, policy, or written statement; and 
    (3) to display an altered or fictitious insurance 
identification card, insurance policy, or written statement 
knowing or having reason to know that the proof has been altered 
or is fictitious. 
    Subd. 2.  [PENALTY.] Any person who violates any of the 
provisions of subdivision 1 is guilty of a misdemeanor. 
    Sec. 13.  [169.794] [APPLICATION OF OTHER LAW.] 
    The provisions of section 45.027 do not apply to license 
revocations under section 169.792. 
    Sec. 14.  [169.795] [RULES.] 
    The commissioner of public safety shall adopt rules 
necessary to implement sections 6 to 15. 
     Sec. 15.  [169.796] [VERIFICATION OF INSURANCE COVERAGE.] 
    An insurance company shall release information to the 
department of public safety or the law enforcement authorities 
necessary to the verification of insurance coverage.  An 
insurance company or its agent acting on its behalf, or an 
authorized person who releases the above information, whether 
oral or written, acting in good faith, is immune from any 
liability, civil or criminal, arising in connection with the 
release of the information. 
    Sec. 16.  Minnesota Statutes 1988, section 171.30, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ISSUANCE.] In any case where a person's 
license has been suspended under section 171.18 or revoked under 
section 169.792, 169.121, 169.123, or 171.17, the commissioner 
may issue a limited license to the driver including under the 
following conditions:  
    (1) if the driver's livelihood or attendance at a chemical 
dependency treatment or counseling program depends upon the use 
of the driver's license; 
    (2) if the use of a driver's license by a homemaker is 
necessary to prevent the substantial disruption of the 
education, medical, or nutritional needs of the family of the 
homemaker; or 
    (3) if attendance at a post-secondary institution of 
education by an enrolled student of that institution depends 
upon the use of the driver's license.  
    The commissioner in issuing a limited license may impose 
such conditions and limitations as in the commissioner's 
judgment are necessary to the interests of the public safety and 
welfare including reexamination as to the driver's 
qualifications.  The license may be limited to the operation of 
particular vehicles, to particular classes and times of 
operation and to particular conditions of traffic.  The 
commissioner may require that an applicant for a limited license 
affirmatively demonstrate that use of public transportation or 
carpooling as an alternative to a limited license would be a 
significant hardship.  
     For purposes of this subdivision, "homemaker" refers to the 
person primarily performing the domestic tasks in a household of 
residents consisting of at least the person and the person's 
dependent child or other dependents. 
     The limited license issued by the commissioner shall 
clearly indicate the limitations imposed and the driver 
operating under the limited license shall have the license in 
possession at all times when operating as a driver. 
     In determining whether to issue a limited license, the 
commissioner shall consider the number and the seriousness of 
prior convictions and the entire driving record of the driver 
and shall consider the number of miles driven by the driver 
annually. 
    If the person's driver's license or permit to drive, or 
nonresident operating privileges, have been revoked, the 
commissioner may only issue a limited license to the person 
after the person has presented an insurance identification card, 
policy, or written statement indicating that the driver or owner 
has insurance coverage satisfactory to the commissioner of 
public safety.  The commissioner of public safety may require 
the insurance identification card provided to satisfy this 
subdivision be certified by the insurance company to be 
noncancelable for a period not to exceed 12 months. 
    Sec. 17.  [REPORT.] 
    The department of public safety, in consultation with the 
information policy office, shall study the feasibility of 
computer communication between insurance companies and the 
department, by which the department is informed of a driver 
whose insurance is canceled.  The department shall report on its 
study to the legislature. 
    Sec. 18.  [REPEALER.] 
    Minnesota Statutes 1988, section 65B.481, is repealed. 
    Presented to the governor May 26, 1989 
    Signed by the governor May 26, 1989, 5:56 p.m.