2012 -- S 2251

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LC00844

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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 MOTOR AND OTHER VEHICLES -- LIABILITY INSURANCE

     Introduced By: Senators Ruggerio, Bates, DaPonte, McCaffrey, and Goodwin

     Date Introduced: January 26, 2012

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

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     SECTION 1. 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 47.4

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ELECTRONIC VERIFICATION OF MOTOR VEHICLE INSURANCE STATUS

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     31-47.4-1. Short title. – This act shall be known and may be cited as the “Motor Vehicle

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Insurance Verification Act of 2012.”

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     31-47.4-2. Legislative findings. -- Whereas, a significant number of motor vehicles are

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operating on the public highways of Rhode Island without financial responsibility as defined by

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Chapter 31-47 of the General Laws; and

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     Whereas, the operation of motor vehicles without financial responsibility substantially

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increases the risk of harm to the motoring public; and

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     Whereas, there is currently technology which would enable law enforcement quickly and

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accurately to identify motor vehicles operating on the public highways of Rhode Island without

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financial responsibility, thereby significantly reducing the risk of harm to the motoring public;

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and

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     Whereas, the general assembly finds that as a matter of public policy that the

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implementation of such technology is in the best interests of public safety on the public highways

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of Rhode Island.

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     31-47.4-3. Use of results of electronic verification and compliance systems. – (a)

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Admissibility. – The results of the use of an electronic verification and compliance system

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satisfying the requirements of this section and shall be admissible as prima facie evidence for the

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purpose of establishing that the owner of the vehicle failed to maintain in full force and effect a

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policy of financial responsibility as required.

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     31-47.4-4. Action by the division when notified of a lapse in financial responsibility.

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– Action. – When the division or the vendor acting as agent for the division, receives evidence

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that the owner of a motor vehicle registered or required to be registered in this state is operating

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or allowing the motor vehicle to be operated on a public street, highway, or public vehicular area

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and does not have financial responsibility for the operation of the vehicle, the division or vendor

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acting as agent for the division shall send the owner a letter. The letter shall notify the owner of

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the evidence and inform the owner that the owner shall respond to the letter within thirty (30)

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days of the date on the letter and explain how the owner has met the duty to have continuous

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financial responsibility for the vehicle. Based on the owner's response, the division shall take the

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appropriate action listed:

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     (1) Division correction. – If the owner responds within the required time and the response

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establishes that the owner’s vehicle has not had a lapse in financial responsibility, the division

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shall correct its records.

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     (2) Penalty only. – If the owner responds within the required time and the response

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establishes all of the following, the division shall assess the owner a penalty in the amount set

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forth in Rhode Island general laws 31-47-9.

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     31-47.4-5. Use of electronic verification and compliance systems to verify and help

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ensure financial responsibility. – (a) Authorization. – Electronic verification and compliance

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systems may be used by law enforcement agencies and officers to electronically identify

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motor vehicles operating on the public streets, highways and public vehicular areas without

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financial responsibility as required pursuant to chapter 31-47.

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     (b) Definition. – As used in this section, an electronic verification and compliance

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system is a mobile device: (1) Consisting of an electronically automated scanner and sensor;

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and (2) Capable of producing one or more digital images of the registration plate of a motor

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vehicle violating the financial responsibility laws established pursuant to chapter 31-47.

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     (c) Minimum Standards. – An electronic verification and compliance system

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authorized for use by this section shall produce at least one digital image that clearly shows a

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recorded image of the vehicle registration number and state of issuance and the date, time,

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and location of the violation.

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     (d) Use. – An electronic verification and compliance system authorized for use by

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this section shall support equal protection and enforcement under the law regarding both

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interstate and intrastate traffic and shall be approved by the department of attorney general.

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     (e) Penalties shall be assessed in accordance with section 31-47-9.

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     (f) Notification of Violation. – The division of motor vehicles shall issue to the registered

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owner of a motor vehicle cited for a financial responsibility violation detected by an electronic

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verification and compliance system a notice of the violation containing all of the information

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listed in this subsection. The notice shall be delivered by first-class United States mail at the

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address on the current registration of the vehicle's owner. The notice of the violation shall contain

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all of the following:

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     (1) The vehicle registration number and state of issuance.

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     (2) The date, time, and location of the violation.

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     (3) The process for paying the civil penalty or contesting the owner's responsibility for

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the violation.

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     (4) Image of the vehicle license plate.

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     (h) Liability. – The registered owner of a vehicle cited for a financial responsibility

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violation detected by an electronic verification and compliance system shall be responsible for

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any penalty imposed under this section unless, within thirty (30) days of the date on the letter of

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notification of violation, the owner provides to the division of motor vehicles or the system

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vendor acting as agent to the division of motor vehicles, a sworn affidavit containing the

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information listed in one of the subdivisions of this subsection. If the registered owner fails to pay

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the civil penalty or fails to respond to the notice within thirty (30) days of the date on the letter of

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notice of violation, the owner waives the right to contest responsibility for the violation, is subject

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to the civil penalty of three hundred dollars ($300), and shall have the registered owner's driving

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license and registration revoked indefinitely until the civil penalty is paid and proof of financial

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responsibility is provided to the division.

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     The sworn affidavit shall contain one of the following:

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     (1) The name and address of the person or persons who had or may have had actual

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physical control of the vehicle at the time of the violation, accompanied with a certificate from an

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insurance company certifying that the vehicle was insured at the date and time of the violation.

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The division of motor vehicles or the system vendor acting as agent to the division of motor

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vehicles shall also provide the record of current insurance status as recorded electronically from

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transmission of insurer data.

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     (2) A statement that at the time of the violation the vehicle was under the control of a

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person unknown to the owner, without the owner's permission. A statement provided under this

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subdivision shall be accompanied by documentation verifying that the owner reported to

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appropriate law enforcement officials the theft or other loss of the vehicle before the date of the

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violation.

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     (i) Appeal. – A person dissatisfied with the decision of the division may appeal the

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decision to the traffic tribunal by filing a notice of the appeal with the clerk of traffic tribunal

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within thirty (30) days of notification of a final decision by the division. An appeal under this

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section is for a trial de novo before the district court.

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     (j) Revocation Period. – The revocation period for a revocation based on a response that

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establishes that a vehicle owner does not have financial responsibility is indefinite and ends when

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the owner pays all assessed fines, penalties, and restoration fees and obtains financial

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responsibility or transfers the vehicle to an owner who has financial responsibility. The minimum

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revocation period for a revocation based on a response that establishes the occurrence of an

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accident during a lapse in financial responsibility or the knowing operation of a vehicle without

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financial responsibility is thirty (30) days. The revocation period for a revocation based on failure

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of a vehicle owner to respond is indefinite and ends when the owner responds and pays all

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assessed fines, penalties, and restoration fees and obtains financial responsibility or transfers the

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vehicle to an owner who has financial responsibility.

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     (k) Revocation notice. – When the division revokes the registration of an owner's vehicle,

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it shall notify the owner of the revocation. The notice shall inform the owner of the following:

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     (1) That the owner shall return the vehicle's registration plate and registration card to the

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division.

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     (2) That the vehicle's registration plate and registration card are subject to seizure by a

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law enforcement officer.

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     (3) That the registration of the vehicle cannot be renewed while the registration is

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revoked.

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     (4) That the owner shall pay any penalties assessed, a restoration fee, and the fee for a

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registration plate when the owner applies to the division to register a vehicle whose registration

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was revoked.

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     (5) That the owner's driving license is revoked until the owner pays all assessed fines,

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penalties, and restoration fees and obtains financial responsibility or transfers the vehicle to an

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owner who has financial responsibility.

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     (1) Notwithstanding the penalty and restoration fee provisions of this section, any

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monetary penalty or restoration fee shall be waived for any person who, at the time of notification

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of a lapse in coverage, was deployed as a member of the United States armed forces outside of

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the continental United States for a total of forty-five (45) or more days.

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     Any person qualifying under this subsection shall:

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     (1) Have an affirmative defense to any criminal charge based upon the failure to return

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any registration card or registration plate to the division;

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     (2) Upon re-registration, receive without cost from the division all necessary registration

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cards or plates; and

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     (3) Upon notice of revocation, be permitted to transfer the vehicle's registration

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immediately to his or her spouse, child, or spouse's child, notwithstanding the provisions of

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subsection (d) of this section.

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     31-47.4-6. Penalties. – Violations of this chapter shall be in accordance with the

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provisions of section 34-47-9.

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     31-47.4-7. Implementation. – The division of motor vehicles shall implement the use of

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such technology. The division shall first issue a request for information to evaluate private service

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providers’ capabilities regarding electronic verification and compliance and compliance system

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services from private service providers offering such technology. If only one source is available it

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will initiate negotiations. If there are multiple companies capable of meeting the department’s

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requirements, it shall next develop and issue a request for proposals for contracts to provide

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electronic verification and compliance system services from private service providers offering

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such technology.

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     The division shall set as minimum standards the following:

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     (1) Provide a sufficient number of electronic control devices with the capacity to identify

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at least eighty percent (80%) of the motor vehicles being operated on public streets and highways

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and public vehicular areas without financial responsibility during a twelve (12) month cycle.

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     (2) All such devices must be mobile, not fixed and law enforcement vehicle-mounted.

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There can be no connection with or support for any form of electronic red light or speeding

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system.

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     Citations can be issued only by sworn officers.

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     (3) Provide to law enforcement agencies and officers technological equipment that has

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the capacity to identify motor vehicles being operated without financial responsibility within five

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(5) seconds from the time such motor vehicles are identified.

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     (4) Provide technological capability, which would enable the division of motor vehicles

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to take the appropriate action in real time, after a motor vehicle is identified as operating on the

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public streets and highways and public vehicular areas without financial responsibility.

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     (5) Have technological capability that would enable the division of motor vehicles and/or

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the agent acting for the division of motor vehicles, to notify the owner within five (5) days that

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such motor vehicle was operating on the public highways of Rhode Island without financial

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responsibility.

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     (6) Provide such technological capability to the division of motor vehicles for a duration

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of not less than five (5) years.

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     (7) Not receive any public funding until such technology is implemented and operational.

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     (8) System success must be measurable both in revenue generated and over time, a

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significant decline in the number of uninsured vehicles on the state’s streets and roads. One basis

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for evaluating potential vendors shall be the level of revenue anticipated and the willingness of

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the vendor to guarantee revenue.

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     (9) Provide a twenty-four (24) hour public help desk in multiple languages and ensure

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that all involvement with those receiving citations are entirely respectful.

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     (10) Ensure that no vendor acting as an agent for the government has access to any name

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or address prior to being provided to it by the government and identified as owner of a non-

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compliant vehicle.

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     (11) Require that vehicles from other states and from Canadian provinces can be

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identified for the purpose of vehicle insurance and valid citations are processed using a

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comprehensive compliance system.

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     (12) Require of the vendor that no charges or fees be required of any insurer complying

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with requirements as directed by the division of motor vehicles and/or the department of business

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regulation.

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     31-47.4-8. Severability. – If any provision of this chapter or the application thereof to

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any person or circumstances is held invalid, such invalidity shall not affect other provisions or

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applications of the chapter, which can be given effect without the invalid provision or application,

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and to this end the provisions of this chapter are declared to be severable.

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     SECTION 2. This act shall take effect upon passage.

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LC00844

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING MOTOR AND OTHER VEHICLES -- LIABILITY INSURANCE

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     This act would establish and electronic verification system for scanning license plates and

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matching them with motor vehicle liability insurance records for enforcement of the mandatory

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motor vehicle insurance law.

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     This act would take effect upon passage.

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LC00844

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