2012 -- H 7629

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LC01704

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR VEHICLE REPARATIONS

ACT

     Introduced By: Representatives Tarro, Dickinson, and Serpa

     Date Introduced: February 16, 2012

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 31-47-3.1 of the General Laws in Chapter 31-47 entitled "Motor

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Vehicle Reparations Act" is hereby amended to read as follows:

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     31-47-3.1. Registration application. -- (a) No motor vehicle shall be registered and no

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registration renewed in this state unless the application for the registration of a motor vehicle

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shall contain a statement to be signed by the applicant who does all of the following:

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      (1) States that the applicant will not operate, or allow to be operated, the registered motor

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vehicle or any other motor vehicle unless all those motor vehicles shall be continuously covered

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by financial security;

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      (2) Contains a brief summary of the purposes and operation of this chapter, the rights

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and duties of the applicant and the penalties for violation of this chapter;

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      (3) Warns the applicant that this chapter does not prevent the possibility that the

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applicant may be involved in an accident with an owner or operator of a motor vehicle who is

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without financial responsibility.

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      (b) (1) In the case of a person who purchases any motor vehicle from a licensed motor

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vehicle dealer, who agrees to make application for registration of the motor vehicle on behalf of

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the purchaser, the person shall sign a statement that complies with subsection (a) of this section.

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      (2) In the case of a person who leases any motor vehicle from a dealer engaged in the

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business of leasing motor vehicles who agrees to make application for registration of the motor

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vehicle on behalf of the lessee, the person shall sign a statement that complies with subsection (a)

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of this section, and the dealer shall do either of the following:

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      (i) Submit the statement signed by the person to the division of motor vehicles; or

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      (ii) Sign and submit a statement that certifies that the statement has been signed and filed

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with the dealer or incorporated into the lease.

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      (iii)(c) The administrator of the division of motor vehicles shall prescribe the form for all

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statements required under this section and the manner in which these statements shall be

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presented to the applicant. Statements shall be designed to enable the applicant to retain a copy.

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      (iv)(d) An application for an operator's, chauffeur's, restricted or probationary license, or

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renewal of those licenses shall contain a statement to be signed by the applicant that does all of

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the following:

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      (A)(1) States that the applicant will not operate a motor vehicle in this state, unless he or

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she continuously maintains, or has maintained on his or her behalf, financial security;

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      (B)(2) Contains a brief summary of the purposes and operation of this chapter, the rights

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and duties of the applicant and the penalties for violation of this chapter;

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      (C)(3) Warns the applicant that the financial responsibility law does not prevent the

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possibility that the applicant may be involved in an accident with an owner or operator of a motor

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vehicle who is without financial security.

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     SECTION 2. Section 31-47-8.1 of the General Laws in Chapter 31-47 entitled "Motor

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Vehicle Reparations Act" is hereby amended to read as follows:

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     31-47-8.1. Verification of proof of financial security. -- (a) The administrator of the

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division of motor vehicles shall select random samples of registrations of motor vehicles subject

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to this chapter, or owners of them, for the purpose of verifying whether or not the motor vehicles

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have proof of financial security as defined in this chapter. The administrator of the division of

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motor vehicles shall verify proof of financial security by sending requests for verification to the

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owner and/or insurer of the randomly selected motor vehicles.

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      (b) In addition to general random samples of motor vehicle registrations, the

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administrator of the division of motor vehicles shall select for verification other random samples,

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including, but not limited to, registrations of motor vehicles owned by persons:

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      (1) Whose motor vehicle registrations during the preceding four (4) years have been

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suspended pursuant to the provisions of this chapter;

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      (2) Who during the preceding four (4) years have been convicted of violating the

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provisions of this chapter while operating vehicles owned by other persons;

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      (3) Whose driving privileges have been suspended during the preceding four (4) years;

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or

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      (4) Who during the preceding four (4) years acquired ownership of motor vehicles while

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the registrations of those vehicles under the previous owners were suspended pursuant to the

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provisions of this chapter.

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      (c) Upon receiving certification from the department of revenue under section 31-26-6 of

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the name of an owner or operator of any motor vehicle involved in an accident, the administrator

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of the division of motor vehicles shall verify whether or not at the time of the accident the motor

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vehicle was covered by proof of financial security as defined in this chapter.

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      (d) The administrator of the division of motor vehicles shall send to owners of randomly

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selected motor vehicles, or to randomly selected motor vehicle owners, requests for information

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about their motor vehicles and proof of financial security. The request shall require the owner to

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state whether or not the motor vehicle had proof of financial security on the verification date

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stated in the administrator's request and the request may require, but is not limited to, a statement

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by the owner of the names and addresses of insurers, policy numbers, and expiration dates of

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insurance coverage or similar information as to other types of proof of financial security.

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      (1) Within twenty (20) days after the administrator of the division of motor vehicles

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mails a request, the owner to whom it is sent shall furnish the requested information to the

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administrator of the division of motor vehicles above the owner's signed affirmation that the

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information is true and correct. Proof of financial security in effect on the verification date, as

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prescribed by the administrator of the division of motor vehicles, may be considered by the

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administrator of the division of motor vehicles to be a satisfactory response to the request for

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information.

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      (2) If the owner responds to the request for information by asserting that the motor

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vehicle was covered by proof of financial security on the verification date stated in the

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administrator's request, the administrator of the division of motor vehicles may conduct a

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verification of the response by furnishing necessary information to any insurer named in the

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response. The insurer shall within twenty (20) days inform the assistant director if an individual

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did not have in force motor vehicle insurance in accordance with the provisions of this chapter.

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      If the administrator of the division of motor vehicles determines that an owner has

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registered or maintained the registration of a motor vehicle without proof of financial security as

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required by this chapter, the administrator of the division of motor vehicles shall notify the owner

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and the owner shall be deemed to have registered or maintained registration of a motor vehicle in

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violation of this chapter unless the owner within twenty (20) days furnishes proof of financial

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security in effect on the verification date as prescribed by the administrator of the division of

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motor vehicles.

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      (e) The administrator of the division of motor vehicles may send to insurers of randomly

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selected motor vehicles requests for verification as to whether or not the verification date given

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for that vehicle is true and accurate in accordance with the provisions of this chapter.

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      (1) The insurer shall within twenty (20) days inform the administrator of the division of

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motor vehicles if an individual did not have in force motor vehicle insurance in accordance with

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the provisions of this chapter.

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      (2) If the insurer informs the administrator of the division of motor vehicles that the

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motor vehicle was not insured by the insurer on the verification date stated in accordance with the

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provisions of this chapter, the administrator of the division of motor vehicles shall require the

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owner to show proof of financial security within twenty (20) days of the administrator's request.

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Any owner who fails to respond to that request shall be deemed to have registered or maintained

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registration of a motor vehicle in violation of this chapter.

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      (f) The administrator of the division of motor vehicles shall promulgate regulations for

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the procedures for verification of proof of financial security. The administrator of the division of

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motor vehicles shall also promulgate rules and regulations for the method in which the random

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selection shall be conducted.

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      (g) No random sample selected under this section shall be categorized on the basis of

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race, color, religion, sex, national origin, ancestry, age, marital status, disability, economic status

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or geography.

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      (h) No verification procedure established under this section shall include individual

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inspections of motor vehicles on a highway solely for the purpose of verifying the existence of

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evidence of proof of financial security. The verification procedure shall be based solely upon a

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review of documentary information.

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     (i) An insurer who cancels coverage shall notify the administrator of the division of

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motor vehicles of such cancellation forthwith in writing or electronically. Upon receipt of such

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notice of cancellation, the administrator of the division of motor vehicles shall forthwith send to

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the motor vehicle owner whose coverage has been cancelled a request for proof of financial

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security pursuant to subsection 31-47-8.1(d).

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     SECTION 3. This act shall take effect upon passage.

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LC01704

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO MOTOR AND OTHER VEHICLES -- MOTOR VEHICLE REPARATIONS

ACT

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     This act would require applicants for vehicle registration to certify that financial security

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will be maintained continuously, and would direct insurers to notify the department of motor

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vehicles when coverage is cancelled.

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     This act would take effect upon passage.

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LC01704

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