2013 -- S 0771

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LC02037

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO MOTOR AND OTHER VEHICLES -- SAFETY RESPONSIBILITY

     Introduced By: Senators DiPalma, Archambault, Lombardi, Cool Rumsey, and Cote

     Date Introduced: March 13, 2013

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 31-32 of the General Laws entitled "Proof of Financial

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Responsibility for the Future" is hereby amended by adding thereto the following section:

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     31-32-2.1. Motor vehicle insurance reporting -- Penalty. -- (a) As used in this section,

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"commercial motor vehicle insurance coverage" means an insurance policy that:

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     (1) Includes motor vehicle liability coverage, uninsured motorist coverage, underinsured

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motorist coverage, or personal injury coverage; and

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     (2) Is defined by the division of motor vehicles.

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     (b) In accordance with chapter 42-35, the "Administrative Procedures Act", the division

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of motor vehicles shall adopt rules defining commercial motor vehicle insurance coverage.

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     (c) Except as provided in subsections (d) and (e), each insurer that issues a policy that

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includes motor vehicle liability coverage, uninsured motorist coverage, underinsured motorist

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coverage, or personal injury coverage under this section shall, before the seventh (7th) and twenty-

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first (21st) day of each calendar month, provide to the division of motor vehicles designated agent

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selected in accordance with the Uninsured Motorist Identification Database Program, a record of

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each motor vehicle insurance policy in effect for vehicles registered or garaged in Rhode Island

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as of the previous submission that was issued by the insurer.

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     (d) Each insurer that issues commercial motor vehicles insurance coverage shall, before

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the seventh (7th) day of each calendar month, provide to the division of motor vehicles designated

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agent selected in accordance with the Uninsured Motorist Identification Database Program, a

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record of each commercial motor vehicle insurance policy in effect for vehicles registered or

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garaged in Rhode Island as of the previous month that was issued by the insurer.

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     (e) An insurer that issues a policy that includes motor vehicle liability coverage,

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uninsured motorist coverage, underinsured motorist coverage, or personal injury coverage under

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this section is not required to provide a record of a motor vehicle insurance policy in effect for a

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vehicle to the division of motor vehicles designated agent if the policy covers a vehicle that is

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registered.

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     (f) This subsection does not preclude more frequent reporting.

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     (g)(1) A record provided by an insurer under subsection (d) shall include:

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     (i) The name, date of birth, and driver's license number, if the insured provides a driver's

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license number to the insurer, of each insured owner or operator, and the address of the named

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insured;

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     (ii) The make, year, and vehicle identification number of each insured vehicle; and

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     (iii) The policy number, effective date, and expiration date of each policy.

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     (2) A record provided by an insurer under subsection (e) shall include:

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     (i) The named insured;

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     (ii) The policy number, effective date, and expiration date of each policy; and

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     (iii) The following information, if available:

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     (A) The name, date of birth, and driver's license number of each insured owner or

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operator, and the address of the named insured; and

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     (B) The make, year, and vehicle identification number of each insured vehicle.

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     (h) Each insurer shall provide this information by an electronic means or by another form

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the division of motor vehicles designated agent agrees to accept.

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     (i) The division of motor vehicles may, following procedures adopted pursuant to chapter

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42-35, "The Administrative Procedures Act", assess a fine against an insurer of up to two hundred

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fifty dollars ($250) for each day the insurer fails to comply with this section.

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     SECTION 2. Title 31 of the General Laws entitled "MOTOR AND OTHER

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VEHICLES" is hereby amended by adding thereto the following chapter:

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     CHAPTER 32.1

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UNINSURED MOTORIST IDENTIFICATION DATABASE PROCEDURE

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     31-32.1-1. Definitions. -- As used in this chapter:

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     (1) "Account" means the Uninsured Motorist Identification Restricted Account created in

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section 31-32.1-5.

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     (2) "Database" means the Uninsured Motorist Identification Database created in section

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31-32.1-2.

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     (3) "Designated agent" means the third party the division of motor vehicles contracts with

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under section 31-32.1-2.

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     (4) "Division" means the division of motor vehicles.

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     (5) "Program" means the Uninsured Motorist Identification Database Program created in

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section 31-32.1-2.

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     31-32.1-2. Program creation -- Administration -- Selection of designated agent --

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Duties -- Rulemaking -- Audits. -- (a) There is hereby created the Uninsured Motorist

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Identification Database Program to:

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     (1) Establish an Uninsured Motorist Identification Database to verify compliance with

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motor vehicle owner's or operator's security requirements under chapter 31-32 and other

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provisions under this chapter;

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     (2) Assist in reducing the number of uninsured motor vehicles on the highways of the

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state;

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     (3) Assist in increasing compliance with motor vehicle registration and sales and use tax

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laws;

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     (4) Assist in protecting a financial institution's bona fide security interest in a motor

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vehicle; and

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     (5) Assist in the identification and prevention of identity theft and other crimes.

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     (b) The program shall be administered by the division of motor vehicles with the

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assistance of the designated agent.

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     (c)(1) The division of motor vehicles shall contract with a third party to establish and

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maintain an Uninsured Motorist Identification Database for the purposes established under this

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chapter.

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     (2) The contract may not obligate the department to pay the third party more money than

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is available in the account.

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     (d)(1) The third party under contract under this section is the department's designated

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agent, and shall develop and maintain a computer database from the information provided by:

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     (i) Automobile liability insurers under section 31-32-2.1; and

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     (ii) The division of motor vehicles.

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     (2)(i) The database shall be developed and maintained in accordance with guidelines

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established by the division of motor vehicles so that state and local law enforcement agencies can

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efficiently access the records of the database, including reports useful for the implementation of

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the provisions of this chapter.

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     (ii)(A) The reports shall be in a form and contain information approved by the division of

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motor vehicles.

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     (B) The reports may be made available through the Internet or through other electronic

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medium, if the division of motor vehicles determines that sufficient security is provided to ensure

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compliance regarding limitations on disclosure of information in the database.

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     (e) With information provided by the division of motor vehicles, the designated agent

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shall, at least monthly for submissions under subsection 31-32-2.1(d) or at least twice a month for

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submissions under subsection 31-32-2.1(e):

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     (1) Update the database with the motor vehicle insurance information provided by the

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insurers in accordance with section 31-32-2.1; and

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     (2) Compare all current motor vehicle registrations against the database.

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     (f) The division shall provide the designated agent with the name, date of birth, address,

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and driver license number of all persons on the driver license database.

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     (g) In accordance with chapter 42-35, "The Administrative Procedures Act," the division

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of motor vehicles shall make rules and develop procedures in cooperation with the division of

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motor vehicles to use the database for the purpose of administering and enforcing this chapter.

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     (h)(1) The designated agent shall archive computer data files at least semi-annually for

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auditing purposes.

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     (2) The internal audit unit of the department of revenue shall audit the program at least

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every three (3) years.

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     (3) The audit under subdivision (h)(2) shall include verification of:

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     (i) Billings made by the designated agent; and

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     (ii) The accuracy of the designated agent's matching of vehicle registration with insurance

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data.

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     31-32.1-3. Notice -- Proof -- Revocation of registration -- False statement -- Penalties

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-- Exemptions -- Sales tax enforcement. -- (a) If the comparison under section 31-32.1-2 shows

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that a motor vehicle is not insured for three (3) consecutive months, the division of motor

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vehicles shall direct that the designated agent provide notice to the owner of the motor vehicle

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that the owner has fifteen (15) days to provide:

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     (1) Proof of owner's or operator's security; or

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     (2) Proof of exemption from the owner's or operator's security requirements.

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     (b) If an owner of a motor vehicle fails to provide satisfactory proof of owner's or

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operator's security to the designated agent, the designated agent shall:

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     (1) Provide a second (2nd) notice to the owner of the motor vehicle that the owner now

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has fifteen (15) days to provide:

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     (i) Proof of owner's or operator's security; or

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     (ii) Proof of exemption from the owner's or operator's security requirements;

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     (2) For each notice provided, indicate information relating to the owner's failure to

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provide proof of owner's or operator's security in the database; and

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     (3) Provide this information to state and local law enforcement agencies as requested in

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accordance with the provisions under section 31-32.1-4.

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     (c) The division of motor vehicles:

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     (1) Shall revoke the registration upon receiving notification pursuant to this section;

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     (2) Shall provide appropriate notices of the revocation, the legal consequences of

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operating a vehicle with revoked registration and without owner's or operator's security and

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instructions on how to get the registration reinstated. A registration that has been revoked under

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this section shall not be reinstated and a new license or registration shall not be issued to the

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holder of the revoked registration until the person:

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     (i) Pays to the division of motor vehicles an administrative reinstatement fee of one

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hundred fifty dollars ($150); and

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     (ii) Complies with the other requirements of this Act. The fee imposed by this section is

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in addition to any other fees or penalties imposed by law; and

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     (3) May direct the designated agent to provide the notices under subsection (c).

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     (d) Any action by the division of motor vehicles to revoke the registration of a motor

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vehicle under this section may be in addition to an action by a law enforcement agency to impose

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the penalties.

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     (e)(1) A person may not provide a false or fraudulent statement to the division of motor

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vehicles or designated agent.

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     (2) In addition to any other penalties, a person who violates paragraph (e)(i) is guilty of a

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misdemeanor.

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     (f) This section does not affect other actions or penalties that may be taken or imposed for

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violation of the owner's and operator's security requirements of this title.

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     (g) If a comparison under section 31-32.1-2 shows that a motor vehicle may not be in

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compliance with motor vehicle registration or sales and use tax laws, the motor vehicle division

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may direct that the designated agent provide notice to the owner of a motor vehicle that

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information exists which indicates the possible violation.

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     31-32.1-4. Disclosure of insurance information -- Penalty. -- (a) Information in the

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database established under section 31-32.1-2 provided by a person to the designated agent is

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considered to be the property of the person providing the information.

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     (b) The information may not be disclosed from the database, except as follows:

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     (1) For the purpose of investigating, litigating, or enforcing the owner's or operator's

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security requirement, the designated agent shall verify insurance information through the state

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computer network for a state or local government agency or court;

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     (2) For the purpose of investigating, litigating, or enforcing the owner's or operator's

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security requirement, the designated agent shall, upon request, issue to any state or local

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government agency or court a certificate documenting the insurance information, according to the

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database, of a specific individual or motor vehicle for the time period designated by the

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government agency;

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     (3) Upon request, the division of motor vehicles or its designated agent shall disclose

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whether or not a person is an insured individual and the insurance company name to:

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     (i) That individual or, if that individual is deceased, any interested person of that

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individual;

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     (ii) The parent or legal guardian of that individual if the individual is an unemancipated

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minor;

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     (iii) The legal guardian of that individual if the individual is legally incapacitated;

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     (iv) A person who has power of attorney from the insured individual;

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     (v) A person who submits a notarized release from the insured individual dated no more

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than ninety (90) days before the date the request is made; or

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     (vi) A person suffering loss or injury in a motor vehicle accident in which the insured

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individual is involved, but only as part of an accident report;

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     (4) For the purpose of investigating, enforcing, or prosecuting laws or issuing citations by

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state or local law enforcement agencies related to the:

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     (i) Registration and renewal of registration of a motor vehicle;

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     (ii) Purchase of a motor vehicle; and

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     (iii) Owner's or operator's security requirements.

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     (5) Upon request of a peace officer acting in an official capacity under the provisions of

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this chapter, the division of motor vehicles or the designated agent shall, upon request, disclose

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relevant information for investigation, enforcement, or prosecution;

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     (6) For the purpose of the state auditor, the legislative auditor general, or other auditor of

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the state conducting audits of the program;

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     (7) Upon request of a financial institution for the purpose of protecting the financial

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institution's bona fide security interest in a motor vehicle; and

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     (8) Upon the request of a state or local law enforcement agency for the purpose of

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investigating and prosecuting identity theft and other crimes.

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     (c)(1) The division of motor vehicles may allow the designated agent to prepare and

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deliver upon request, a report on the insurance information of a person or motor vehicle in

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accordance with this section.

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     (2) The report may be in the form of:

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     (i) A certified copy that is considered admissible in any court proceeding in the same

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manner as the original; or

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     (ii) Information accessible through the Internet or through other electronic medium if the

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department determines that sufficient security is provided to ensure compliance with this section.

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     (3) The department may allow the designated agent to charge a fee established by the

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division of motor vehicles for each:

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     (i) Document authenticated, including each certified copy;

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     (ii) Record accessed by the Internet or by other electronic medium; and

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     (iii) Record provided to a financial institution.

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     (d) A person who knowingly releases or discloses information from the database for a

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purpose other than those authorized in this section or to a person who is not entitled to it is guilty

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of a felony.

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     (e) An insurer is not liable to any person for complying with section 31-32-2.1 by

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providing information to the designated agent.

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     (f) Neither the state nor the division of motor vehicles’ designated agent is liable to any

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person for gathering, managing, or using the information in the database as provided in section

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31-32-2.1 and this chapter.

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     SECTION 3. This act shall take effect on October 1, 2013.

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LC02037

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO MOTOR AND OTHER VEHICLES -- SAFETY RESPONSIBILITY

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     This act would create a comprehensive statutory program to verify compliance with

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motor vehicle owners’ and operators’ mandatory liability insurance requirements.

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     This act would take effect on October 1, 2013.

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LC02037

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