1.1 	A bill for an act
1.2 	relating to drivers' licenses; repealing authority for
1.3 	the commissioner to suspend driver's licenses as a
1.4 	result of mailed demands for proof of motor vehicle
1.5 	insurance; providing for remedial measures for
1.6 	victims; appropriating money; repealing Minnesota
1.7 	Statutes 2004, section 169.796, subdivision 3.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. REMEDIATION OF HARM CAUSED BY SUSPENSIONS OF
1.10 	DRIVERS' LICENSES.
 1.11 		Subdivision 1.Remediation by commissioner. (a) For
1.12 	purposes of this section, "the repealed law" means Minnesota
1.13 	Statutes 2004, section 169.796, subdivision 3.
1.14 	(b) This section does not apply to drivers who admitted
1.15 	that they did not have motor vehicle insurance on the relevant
1.16 	day in a written response to the commissioner's demand under the
1.17 	repealed law or to drivers who have been convicted of not having
1.18 	motor vehicle insurance, or of failure to provide proof of
1.19 	insurance, as of that date.
1.20 	(c) The commissioner of public safety shall immediately
1.21 	reinstate all drivers' licenses suspended under the repealed
1.22 	law, retroactive to the date of the suspension, and at no cost
1.23 	to the licensees, and shall immediately notify the licensees of
1.24 	the reinstatement at the most recent address known to the
1.25 	commissioner, regardless of whether that address is one of which
1.26 	the licensee has officially notified the commissioner.
2.1 	(d) The commissioner shall immediately refund to licensees
2.2 	any fees paid by them to reinstate licenses suspended under the
2.3 	repealed law.  The refund must be made without requiring a
2.4 	request for the refund by the licensee.
2.5 	(e) The commissioner shall expunge all suspensions referred
2.6 	to in paragraph (c) from the licensee's driving record.
2.7 	(f) The commissioner shall expunge from the licensee's
2.8 	driving record any offenses for driving without insurance or
2.9 	with a suspended license, resulting from suspensions or other
2.10 	actions taken under the repealed law.
2.11 	(g) The commissioner shall compile a list of all
2.12 	convictions reported to the commissioner or otherwise known to
2.13 	the commissioner resulting from the repealed law.
2.14 	(h) The commissioner shall promptly notify the court
2.15 	administrator of any court in which a conviction under paragraph
2.16 	(g) occurred that the repealed law has been repealed retroactive
2.17 	to its effective date.  The notice must further inform the court
2.18 	administrator of the requirements of subdivision 2.
2.19 		Subd. 2.Remediation for convictions. (a) A court in
2.20 	which a conviction referred to in subdivision 1, paragraph (h),
2.21 	occurred, must vacate the conviction, on its own motion, without
2.22 	cost to the person convicted, and must immediately notify the
2.23 	person that the conviction has been vacated.
2.24 	(b) The commissioner of finance, in consultation with the
2.25 	Supreme Court administrator, shall develop and implement a
2.26 	procedure to refund to the licensee any fine paid by the
2.27 	licensee for a conviction vacated under paragraph (a), without
2.28 	requiring that the licensee request the refund.  The procedure
2.29 	may require recovery of portions of the fines that have been
2.30 	allocated by law to local government units.
2.31 		Subd. 3.Remediation by insurers. (a) Insurers that
2.32 	issue or renew motor vehicle insurance in this state shall,
2.33 	within 30 days after the effective date of this section, inform
2.34 	the commissioner of commerce as to whether it has canceled,
2.35 	nonrenewed, denied an application for coverage, or surcharged
2.36 	any motor vehicle insurance due to a suspension or conviction as
3.1 	a result of the repealed law, provide a list of any such
3.2 	persons, and indicate for each person the remediation the
3.3 	insurer intends to provide.
3.4 	(b) Remediation under paragraph (a) must compensate the
3.5 	victim to the greatest extent feasible, including refunds,
3.6 	reinstatements of coverage, and other appropriate measures.
3.7 	(c) Insurers shall provide the remediation without
3.8 	requiring that the person make a request for remediation.
3.9 	(d) The commissioner of commerce shall enforce this
3.10 	subdivision under its general enforcement powers under Minnesota
3.11 	Statutes, chapter 45.
3.12 		Subd. 4.Public safety funding. The commissioner of
3.13 	public safety shall use funds appropriated for purposes of the
3.14 	repealed law and not yet spent for that purpose to accomplish
3.15 	the remediation required under subdivision 1.  Such funds that
3.16 	are unspent at the end of the 2005 fiscal year may be carried
3.17 	forward into the next biennium if necessary to complete the
3.18 	remediation.

3.19 	Sec. 2. COMMISSIONER RECOMMENDATION.
 3.20 	The commissioner of public safety shall recommend to the
3.21 	legislature by January 15, 2006, a method of enforcing the
3.22 	mandatory motor vehicle insurance requirement that is effective,
3.23 	efficient, and fair to drivers and vehicle owners.

3.24 	Sec. 3. APPROPRIATION.
 3.25 	$....... is appropriated from the general fund to the
3.26 	commissioner of finance for fiscal year 2005 for the purpose of
3.27 	making the refunds of fines required under section 1,
3.28 	subdivision 2.  Any amounts not expended for that purpose in
3.29 	fiscal year 2005 may be carried forward to the following
3.30 	biennium for that purpose if necessary.

3.31 	Sec. 4. REPEALER.
 3.32 	Minnesota Statutes 2004, section 169.796, subdivision 3, is
3.33 	repealed retroactively from June 9, 2003.

3.34 	Sec. 5. EFFECTIVE DATE.
 3.35 	Sections 1 to 4 are effective the day following final
3.36 	enactment.