2018 -- S 2426 SUBSTITUTE A

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LC004777/SUB A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO MOTOR AND OTHER VEHICLES - UNINSURED MOTORIST

IDENTIFICATION DATABASE PROCEDURE

     

     Introduced By: Senators Lombardi, Lynch Prata, Archambault, Ciccone, and
Nesselbush

     Date Introduced: February 15, 2018

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 31-47.4-2, 31-47.4-3 and 31-47.4-4 of the General Laws in

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Chapter 31-47.4 entitled "Uninsured Motorist Identification Database Procedure" are hereby

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amended to read as follows:

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     31-47.4-2. Program creation -- Administration -- Selection of designated agent --

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Duties -- Rulemaking -- Audits.

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     (a) There is hereby created the Uninsured Motorist 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 § 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, on a weekly basis, 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 § 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.

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     (a) Each 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 shall, before the seventh (7th) day of each calendar month, provide weekly to the

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division of motor vehicles designated agent selected in accordance with the uninsured motorist

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identification database program, a record of each motor vehicle insurance policy in effect for

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vehicles registered or garaged in Rhode Island as of the date of the previous submission that was

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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.

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     (a) If the comparison under § 31-47.4-2 shows that a motor vehicle is not insured for

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three (3) four (4) consecutive reporting periods as set forth in § 31-47.4-3(a), months, the division

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

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vehicle that the owner has fifteen (15) 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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     SECTION 3. This act shall take effect on January 1, 2019.

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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 mandate each insurer that issues a policy that includes motor vehicle

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liability coverage, uninsured motorist coverage, underinsured motorist coverage, or personal

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injury coverage to provide weekly records of each policy to an agent of the division of motor

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vehicles. The agent shall also give notice to an owner of a vehicle who, for four (4) consecutive

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reporting periods, is shown not to be insured and shall be required to provide insurance

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information to the division within fifteen (15) days.

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     This act would take effect on January 1, 2019.

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