2013 -- S 0771 SUBSTITUTE A

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LC02037/SUB A/2

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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 -- UNINSURED MOTORIST

IDENTIFICATION DATABASE PROCEDURE

     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. 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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UNINSURED MOTORIST IDENTIFICATION DATABASE PROCEDURE

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     31-47.4-1. 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 31-47.4-2.

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

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31-47.4-2.

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

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under section 31-47.4-2.

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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 31-47.4-2.

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     31-47.4-2. 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 31-47 and other

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provisions under this chapter, and;

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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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     (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) The program will be funded by a percentage of the reinstatement fees collected

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pursuant to this chapter. The percentage of the reinstatement fee that will be provided to the

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designated agent will be determined by the division of motor vehicles. These fees will be

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maintained in the uninsured motorist identification restricted account.

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     (d)(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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     (e)(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 31-47.4-3; and

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     (ii) The division of motor vehicles.

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     (2) The database shall be developed and maintained by the designated agent in

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accordance with guidelines established by the division of motor vehicles so that state and local

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law enforcement agencies can efficiently access the records of the database, including reports

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useful for the implementation of the provisions of this chapter.

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     (i) The reports provided by the designated agent shall be in a form and contain

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information approved by the division of motor vehicles.

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

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shall, at least monthly, for submissions under subsection 31-47.4-3:

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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 31-47.4-3; and

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

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

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and driver license number, if available, of all persons having active registrations. The division

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shall also provide the make, year and vehicle identification number for all active registrations.

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     (h) 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 to use the database for the purpose of

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administering and enforcing this chapter.

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     (i) 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 administration shall audit the program at

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least 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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     31-47.4-3. Motor vehicle insurance reporting -- Penalty. -- (a) Each insurer that issues

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a policy that includes motor vehicle liability coverage, uninsured motorist coverage, underinsured

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

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day of each calendar month, provide to the division of motor vehicles designated agent selected in

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accordance with the uninsured motorist identification database program, a record of each motor

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vehicle insurance policy in effect for vehicles registered or garaged in Rhode Island as of the date

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of the previous submission that was issued by the insurer.

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     (b) This subsection does not preclude more frequent reporting by an insurer on a

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voluntary basis.

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     (c)(1) A record provided by an insurer under subsection (a) shall include:

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

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

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     (iii) The name, date of birth, and if available, driver's license number of each insured

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owner or operator, and the address of the named insured; and

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     (d) 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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     (e)(1) The division of motor vehicles may, following procedures adopted pursuant to

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

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

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     (2) The division of motor vehicles shall excuse the fine if an insurer shows that the failure

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to comply with this section was:

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     (i) Inadvertent;

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     (ii) Accidental; or

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     (iii) The result of excusable neglect.

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     31-47.4-4. Notice -- Proof -- Revocation of registration -- False statement --

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Penalties. -- (a) If the comparison under section 31-47.4-2 shows that a motor vehicle is not

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insured for three (3) consecutive months, the division of motor vehicles shall direct that the

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designated agent provide notice to the owner of the motor vehicle that the owner has fifteen (15)

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days to provide to the designated agent:

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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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     (c) For each notice provided, the designated agent shall:

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     (i) Indicate information relating to the owner's failure to provide proof of owner's or

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operator's security in the database;

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     (ii) Provide this information to the division of motor vehicles; and

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     (d) If the designated agent notifies the department of motor vehicles that an owner of a

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motor vehicle failed to provide satisfactory proof of owner's or operator's security to the

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designated agent, the division of motor vehicles:

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     (1) Shall revoke the registration;

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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.

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     (e) A registration that has been revoked under this section shall not be reinstated and a

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new license or registration shall not be issued to the holder of the revoked registration until the

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person:

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     (1) Pays to the division of motor vehicles an administrative reinstatement fee of two

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hundred fifty dollars ($250), the fee imposed by the section is in addition to any other fines or

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penalties imposed by law;

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     (2) Complies with the other requirements of this act. The fee imposed by this section is in

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addition to any other fees or penalties imposed by law.

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     (f) The department of motor vehicles may direct the designated agent to provide the

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notices under subsection (d)(2).

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     (g) 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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     (h)(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 (h)(1) is guilty of a

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misdemeanor.

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     (i) 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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     31-47.4-5. 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 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; and

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

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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 31-47.4-3 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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31-47.4-2 and this chapter.

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     31-47.4-6. Compliance. -- Every property and casualty insurance company that is

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licensed to issue motor vehicle insurance policies or is authorized to do business in Rhode Island

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shall comply with this chapter for verification of evidence of vehicle insurance for every vehicle

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insured by that company in Rhode Island as required by the rules and regulations of the

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department.

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     31-47.4-7. Civil and administrative immunity. -- Insurers shall be immune from civil

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and administrative liability for good faith efforts to comply with the terms of this chapter.

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     31-47.4-8. Commercial exemption. -- For the purposes of this chapter, commercial auto

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coverage is defined as any coverage provided to an insured, regardless of number of vehicles or

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entities covered, under a commercial coverage form and rated from a commercial manual

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approved by the commissioner of insurance. This chapter shall not apply to vehicles insured

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under commercial auto coverage; however, insurers of such vehicles may participate on a

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voluntary basis.

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     31-47.4-9. Rental vehicle exemption. -- This chapter shall not apply to vehicles

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registered and used as rental vehicles pursuant to section 31-5-33.

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     31-47.4-10. Use of information. -- Information provided to the designated agent by the

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division or any insurance company shall not be further disclosed or disseminated by the

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designated agent without the express written consent of the division and the insurance company.

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The designated agent shall enter contractual relationships with insurers to further protect the

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confidentiality and security of information under this section.

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     SECTION 2. This act shall take effect on July 1, 2013.

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LC02037/SUB A/2

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO MOTOR AND OTHER VEHICLES -- UNINSURED MOTORIST

IDENTIFICATION DATABASE PROCEDURE

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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 July 1, 2014.

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LC02037/SUB A/2

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