Senate Bill No. 394
(By Senators Unger, McCabe, Chafin and Plymale)
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[Introduced January 29, 2010; referred to the Committee on
Transportation and Infrastructure; and then to the Committee on
Banking and Insurance.]
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A BILL to amend and reenact §17A-3-3 of the Code of West Virginia,
1931, as amended; to amend and reenact §17D-2A-1, §17D-2A-2,
§17D-2A-3, §17D-2A-6 and §17D-2A-7 of said code; to amend said
code by adding thereto a new section, designated §17D-2A-6a;
and to amend said code by adding thereto a new section,
designated §33-6-31g, all relating to enforcement of the
required security upon motor vehicles; requiring insurance
companies licensed to do business in this state to provide
policy information to the Division of Motor Vehicles or its
agent; authorizing the commissioner to establish a system for
online real-time insurance verification; and establishing
administrative and criminal penalties.
Be it enacted by the Legislature of West Virginia:
That §17A-3-3 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; that §17D-2A-1, §17D-2A-2, §17D-2A-3, §17D-2A-6 and §17D-2A-7 of said code be amended and reenacted; that
said code be amended by adding thereto a new section, designated
§17D-2A-6a; and that said code be amended by adding thereto a new
section, designated §33-6-31g, all to read as follows:
CHAPTER 17A. MOTOR VEHICLE ADMINISTRATION, REGISTRATION,
CERTIFICATE OF TITLE, AND ANTITHEFT PROVISIONS.
ARTICLE 3. ORIGINAL AND RENEWAL OF REGISTRATION; ISSUANCE OF
CERTIFICATES OF TITLE.
§17A-3-3. Application for registration; statement of insurance or
other proof of security to accompany application;
criminal penalties; fees; special revolving fund.
Every owner of a vehicle subject to registration under this
article shall make application to the division for the registration
of the vehicle upon the appropriate form or forms furnished by the
division and every application shall bear the signature of the
owner or his or her authorized agent, written with pen and ink, and
the application shall contain:
(a) The name, bona fide residence and mailing address of the
owner, the county in which he or she resides or business address of
the owner if a firm, association or corporation.
(b) A description of the vehicle including, insofar as the
data specified in this section may exist with respect to a given
vehicle, the make, model, type of body, the manufacturer's serial
or identification number or other number as determined by the
commissioner.
(c) In the event a motor vehicle is designed, constructed,
converted or rebuilt for the transportation of property, the
application shall include a statement of its declared gross weight
if the motor vehicle is to be used alone, or if the motor vehicle
is to be used in combination with other vehicles, the application
for registration of the motor vehicle shall include a statement of
the combined declared gross weight of the motor vehicle and the
vehicles to be drawn by the motor vehicle; declared gross weight
being the weight declared by the owner to be the actual combined
weight of the vehicle or combination of vehicles and load when
carrying the maximum load which the owner intends to place on the
vehicle; and the application for registration of each vehicle shall
also include a statement of the distance between the first and last
axles of that vehicle or combination of vehicles.
The declared gross weight stated in the application
shall may
not exceed the permissible gross weight for the axle spacing listed
in the application as determined by the table of permissible gross
weights contained in chapter seventeen-c of this code; and any
vehicle registered for a declared gross weight as stated in the
application is subject to the single-axle load limit set forth in
said that chapter.
(d) Each applicant shall state whether the vehicle is or is
not to be used in the public transportation of passengers or
property, or both, for compensation and if used for compensation,
or to be used, the applicants shall certify that the vehicle is used for compensation and shall, as a condition precedent to the
registration of the vehicle, obtain a certificate of convenience or
permit from the Public Service Commission unless otherwise exempt
from this requirement in accordance with chapter twenty-four-a of
this code.
(e) A statement under penalty of false swearing that liability
insurance is in effect and will continue to be in effect through
the entire term of the vehicle registration period within limits
which
shall be no may not be less than the requirement of section
two, article four, chapter seventeen-d of this code, which shall
contain the name of the applicant's insurer, the name of the agent
or agency which issued the policy and the effective date of the
policy and any other information required by the Commissioner of
Motor Vehicles or that the applicant has qualified as a self-
insurer meeting the requirements of section two, article six of
said chapter and that as a self-insurer he or she has complied with
the minimum security requirements as established in section two,
article four of
said that chapter.
If the commissioner determines
that the required security is not in effect, he or she shall
suspend the vehicle owner's driver's license and revoke the vehicle
registration in accordance with the provisions of article two-a,
chapter seventeen-d of this code.
(1) Intentional lapses of insurance coverage. --
(A) In the case of a periodic use or seasonal vehicle, as
defined in section three, article two-a, chapter seventeen-d of this code, the owner may provide, in lieu of other statements
required by this section, a statement, under penalty of false
swearing, that liability insurance is in effect during the portion
of the year the vehicle is in actual use, within limits which shall
be no less than the requirements of section two, article four,
chapter seventeen-d of this code, and other information relating to
the seasonal use on a form designed and provided by the division.
(B) Any registrant who prior to expiration of his or her
vehicle registration drops or cancels insurance coverage for any
reason other than periodic or seasonal use shall either surrender
the registration plate or shall, by certified mail, notify the
division of the cancellation. The notice shall contain a statement
under penalty of false swearing that the vehicle will not be
operated on the roads or highways of this state.
(C) The registration of any vehicle upon which insurance
coverage has been dropped or canceled under subparagraph (B) of
this paragraph shall be reinstated upon submission of current proof
of insurance and payment of the duplicate plate fee prescribed by
this chapter.
(2) Verification process. --
The division may select any certificate of insurance, owner's
statement of insurance, motor vehicle registration or any other
form or document for verification of insurance coverage with an
insurance company.
(A) If the division verifies with an insurance company that a motor vehicle was operated in this state without the required
security in effect based on information received on an accident
report, citation, court report or any other evidence of motor
vehicle operation, the division shall proceed against the owner and
driver in accordance with section seven, article two-a, chapter
seventeen-d of this code.
(B) If the division selects a motor vehicle registration for
verification of insurance and determines that the owner of a
registered motor vehicle did or does not have the required security
in effect at the time of verification, the division shall proceed
as follows:
(i) The division shall send a notice by certified mail to the
registered owner's address and to any lienholder noted on the
certificate of title, advising that unless the owner provides
verifiable proof that the vehicle was insured on the date of
verification or that the vehicle is or was not required to be
registered, the owner's driver's license will be suspended for
thirty days for a first offense and ninety days for a second or
subsequent offense and the motor vehicle registration will be
revoked until current verifiable proof of insurance is provided to
the division: Provided, That the division shall suspend the
driver's license of only one owner if a vehicle is registered in
more than one name.
(ii) If, after the notice required in clause (i) of this
subparagraph is given to the owner and the lienholder, the owner fails to provide proof of insurance, the driver's license
suspension and motor vehicle registration revocation shall go into
effect without further notice thirty days from the date of the
notice.
(iii) The division shall reinstate the driver's license
without regard to the suspension period in this paragraph and
reinstate the motor vehicle registration upon submission of proof
of current insurance coverage and payment of the reinstatement fees
provided in section nine, article three, chapter seventeen-b of
this code and section seven, article nine of this chapter.
(3) If any person making an application required under the
provisions of this section, in the application knowingly provides
false information, false proof of security or a false statement of
insurance, or if any person, including an applicant's insurance
agent, knowingly counsels, advises, aids or abets another in
providing false information, false proof of security, or a false
statement of insurance in the application he or she is guilty of a
misdemeanor and, upon conviction thereof, shall be fined not more
than five hundred dollars, or be imprisoned in jail for a period
not to exceed fifteen days, or both fined and imprisoned and, in
addition to the fine or imprisonment, shall have his or her
driver's license suspended for a period of ninety days and vehicle
registration revoked if applicable.
(f) Any further information
as may that is reasonably
be
required by the division to enable it to determine whether the vehicle is lawfully entitled to registration.
(g) Each application for registration shall be accompanied by
the fees provided in this article and an additional fee of fifty
cents for each motor vehicle for which the applicant seeks
registration.
(h) Revocation of a motor vehicle registration pursuant to
this section
shall does not affect the perfection or priority of a
lien or security interest attaching to the motor vehicle that is
noted on the certificate of title to the motor vehicle.
CHAPTER 17D. MOTOR VEHICLE SAFETY RESPONSIBILITY LAW.
ARTICLE 2A. SECURITY UPON MOTOR VEHICLES.
§17D-2A-1. Purpose of article.
The purpose of this article is to promote the public welfare
by requiring every owner or registrant of a motor vehicle licensed
in this state to maintain certain security during the registration
period for
such the vehicle
and to provide the means for law
enforcement and the judicial branch to electronically verify current
insurance coverage at any time while a vehicle is operated on the
roads and highways of this state.
§17D-2A-2. Scope of article.
This article applies to the operation of all motor vehicles
required to be registered to have
proof of the security
pursuant to
article three, chapter seventeen-a of this code in effect, as
provided in section two, article two of this chapter, with the
exception of motor vehicles owned by the state, any of its political subdivisions or by the federal government.
This article authorizes the commissioner to develop a program
that provides real time online verification of insurance coverage
for the purposes of motor vehicle registration and renewal of
registration, including the determination of whether a policy is in
effect, has lapsed or has otherwise been cancelled during the term
of a motor vehicle registration through scheduled and unscheduled
comparisons between active vehicle registrations and current
insurance policies and to allow law enforcement to verify insurance
in real time during traffic stops, at crash scenes or at any other
time.
§17D-2A-3. Required security; exceptions.
(a) Every owner or registrant of a motor vehicle required to
be registered and licensed in this state shall maintain security as
hereinafter provided in effect continuously throughout the
registration or licensing period except in case of a periodic use
or seasonal vehicle, in which case the owner or registrant is
required to maintain security upon the vehicle only for the portion
of the year the vehicle is in actual use. As used in this section,
a periodic use or seasonal vehicle means a recreational vehicle,
antique motor vehicle, motorcycle or other motor vehicle which is
stored part of the year and used seasonally.
(b) The owner or registrant shall immediately surrender the
registration plate to the Division of Motor Vehicles when he or she
drops the required security during the registration period except in the case of a periodic use or seasonal vehicle.
(b) Every nonresident owner or registrant of a motor vehicle,
which is operated upon any road or highway of this state and which
has been physically present within this state for more than thirty
days during the preceding three hundred sixty-five days shall
thereafter maintain security as hereinafter provided in effect
continuously throughout the period
such the motor vehicle remains
within this state.
(c) No person
shall may knowingly drive or operate upon any
road or highway
in this state any motor vehicle upon which security
is required by the provisions of this article unless
such the
required security is in effect.
(d) Such The security shall be provided by one of the following
methods:
(1) By an insurance policy delivered or issued for the delivery
in this state by an insurance company authorized to issue vehicle
liability and property insurance policies in this state within
limits which
shall be no may not be less than the requirements of
section two, article four of this chapter; or
(2) By qualification as a self-insurer under the provisions of
section two, article six of this chapter.
(e) This article does not apply to any motor vehicle owned by
the state or by a political subdivision of this state, nor to any
motor vehicle owned by the federal government.
§17D-2A-6. Investigation by duly authorized law-enforcement officer to include inquiry regarding required
security; notice by officer or court to Division of
Motor Vehicles.
(a) At the time of investigation of a motor vehicle offense or
accident crash in this state by the State Police or other law-
enforcement agency or when a vehicle is stopped by a law-enforcement
officer for reasonable cause, the officer of the agency making the
investigation shall inquire of the operator of any motor vehicle
involved
and by any other available means as to the existence upon
the vehicle or vehicles of the proof of insurance or other security
required by the provisions of this code and upon a finding by the
law-enforcement agency, officer or agent thereof that the security
required by the provisions of this article is not in effect, as to
any vehicle, he or she shall notify the Division of Motor Vehicles
of the finding within five days.
if no citation requiring a court
appearance is issued: Provided, That the law-enforcement officer
or agent may not stop vehicles solely to inquire as to the
certificate of insurance.
(b) A defendant who is charged with a traffic offense that
requires an appearance in court shall present the court at the time
of his or her appearance or subsequent appearance with proof that
the defendant had security at the time of the traffic offenses as
required by this article
subject to verification by the court by any
means available.
(c) If, as a result of the defendant's failure to show proof, the court determines that the defendant has violated this article,
the court shall notify the Division of Motor Vehicles within five
days.
For purposes of this section, presentation of a certificate
of insurance reflecting insurance to be in effect on the date in
question shall constitute proof of surety.
§17D-2A-6a. Determining if required security is in effect.
(a) The commissioner may make a determination that the required
security on a motor vehicle is not in effect based on crash reports
required under the provisions of article four, chapter seventeen-c
of this code, reports or citations from law-enforcement agencies,
citations or abstracts of conviction from courts, notices from
insurance companies or from information from a web based electronic
insurance verification program.
(b) The commissioner is authorized to develop and implement
an electronic insurance verification program based on a national
model to electronically verify insurance coverage with insurance
companies based on the following:
(1) The verification system is designed to identify non
commercial motor vehicles that are being operated on the roads and
highways or have been registered for operation without the required
security in effect;
(2) The program provides accurate and current access to motor
vehicle insurance coverage information for the identification and
enforcement of criminal and administrative sanctions prescribed in
this code for the operation or registration of a motor vehicle without the required security in effect. The program shall be
available for the use of persons and agencies charged with the
enforcement of motor vehicle insurance requirements;
(3) The program protects the security and integrity of
information provided by insurers;
(4) The program is developed and implemented in cooperation
with insurers by providing prior opportunity for comment by insurers
on detailed guides to assist in compliance by insurers;
(5) The program is developed to provide the authority to the
commissioner by rule to offer alternative methods for small insurers
to comply with the reporting requirements;
(6) The program allows real time on line verification of
current insurance coverage for the purpose of motor vehicle
registration and renewal of registration, including the
determination of whether a policy is in effect, has lapsed or has
otherwise been cancelled during the term of a motor vehicle
registration through scheduled and unscheduled comparisons between
active vehicle registrations and current insurance policies and to
allow law enforcement to verify insurance in real time during
traffic stops and crash scene investigations;
7. The commissioner may contract with a third party vendor to
act as his or her agent to develop the program, conduct the
electronic verification with insurance companies and to operate the
program.
8. As a condition of writing motor vehicle liability insurance in this state, insurance carriers shall cooperate with the division
and the Insurance Commission in establishing and maintaining an
insurance verification system and shall provide access to
noncommercial motor vehicle insurance policy status to the division
or its agent.
9. Any information obtained by the division or its agent under
the provisions of an electronic insurance system is for the sole use
of the Division of Motor Vehicles or its agent, law enforcement and
the judiciary to effectuate the provisions of this article and is
exempt from disclosure under the provisions of article one, chapter
twenty-nine-b and may not be considered a public record as defined
in section two, article one, chapter twenty-nine-b of this code.
10. Any owner of a motor vehicle or driver of a motor vehicle
determined by an electronic insurance verification program to be
uninsured shall be assessed the same criminal and administrative
sanctions prescribed in this chapter: Provided, that any person who
is assessed a penalty prescribed by this chapter has the same
procedural due process provided by this chapter or by rules
promulgated by the division to show that there was not a violation
and provide for the exoneration of any penalties or records.
§17D-2A-7. Suspension or revocation of license, registration;
reinstatement.
(a) Any owner of a motor vehicle, subject to the provisions of
this article, who fails to have the required security in effect at
the time such vehicle is
currently registered or being operated upon the roads or highways
of this state shall have his or her driver's
license suspended by the Commissioner of the Division of Motor
Vehicles
for a period of thirty days and shall have his or her motor
vehicle registration revoked
until such time as he or she shall
present to the Division of Motor Vehicles the proof of security
required by this article: Provided, That if a motor vehicle is
registered in more than one name, the driver's license of only one
of the owners shall be suspended by the commissioner as follows:
(1) For the first offense, the commissioner shall suspend the
driver's license and vehicle registration until such time as he or
she presents current proof of insurance on all currently registered
vehicles: Provided, That if an owner complies with the provisions
of this subdivision, and pays a penalty fee of $200 before the
effective date of the driver's license suspension and vehicle
registration revocation, no driver's license suspension or vehicle
registration revocation shall be imposed nor are any reinstatement
fees required.
(2) For the second offense within five years, the commissioner
shall suspend the owner's driver's license for a period of thirty
days and shall revoke the owner's vehicle registration until he or
she presents to the Division of Motor Vehicles the proof of security
required by this article.
(3) For the third or subsequent offense within five years, the
commissioner shall suspend the owner's driver's license for a
period of ninety days and revoke the vehicle registration until such time as he or she presents current proof of insurance.
(4) If the motor vehicle is titled and registered in more than
one name, the commissioner shall suspend the driver's license of
only one of the owners.
(b) Any person who knowingly operates a motor vehicle upon the
roads or highways of this state which does not have the security
required by the provisions of this article shall have his or her
driver's license suspended by the commissioner
for a period of
thirty days subject to the following:
(1) For the first offense, the commissioner shall suspend the
driver's license until such time as he or she presents current proof
of insurance on all currently registered vehicles: Provided, That
if a driver complies with the provisions of this section and pays a
penalty fee of $200 before the effective date of the driver's
license suspension, no driver's license suspension shall be imposed
and no reinstatement fees are required.
(2) For the second offense within five years, the commissioner
shall suspend the driver's license for a period of thirty days.
(3) For the third or subsequent offense within five years, the
commissioner shall suspend the person's driver's license for a
period of ninety days.
(c) A person's driver's license shall be suspended
for a period
of thirty days in accordance with subsections (a) and (b) of this
section if the person is operating a motor vehicle designated for
off-highway use upon the roads and highways of this state without the required security in effect
if the motor vehicle is not properly
registered and licensed or if the required security was canceled.
(d) The commissioner may withdraw a suspension of a driver's
license
or revocation of a motor vehicle registration at any time
provided that the commissioner is satisfied that there was not a
violation of the provisions of required security related to
operation of a motor vehicle upon the roads or highways of this
state by such person. The commissioner may request additional
information as needed in order to make such determination.
(e)
No A person
shall may not have his or her driver's license
suspended or motor vehicle registration revoked under any provisions
of this section unless he or she
and any lienholder noted on the
certificate of title shall is first
be given written notice of such
suspension or revocation sent by certified mail, at least thirty
days prior to the effective date of such suspension or revocation,
and upon
such that person's written request,
sent by certified mail
he or she shall be afforded an opportunity for a hearing thereupon
as well as a stay of the commissioner's order of suspension or
revocation and an opportunity for judicial review of such hearing.
The request for a hearing shall be made within ten days from the
date of receipt of the notice of driver's license suspension or
motor vehicle registration revocation. The scope of the hearing is
limited to questions of identity or whether or not there was
insurance in effect at the time of the event causing the
commissioner's action. Upon affirmation of the commissioner's order, the period of suspension,
or revocation
shall commence or
other penalty commences to run.
(f)
Such A suspended driver's license
shall be is reinstated
following the period of suspension upon compliance with the
conditions set forth in this article and
such a revoked motor
vehicle registration
shall be is reissued only upon lawful
compliance with the provisions of this article.
(g) If the commissioner has previously suspended the person's
driver's license for any reason related to failure to maintain
insurance on a motor vehicle within the previous five years, the
period of suspension shall be for a period of ninety days.
(h) Revocation of a motor vehicle registration pursuant to this
section
shall does not affect the perfection or priority of a lien
or security interest attaching to the motor vehicle that is noted on
the certificate of title to the motor vehicle.
CHAPTER 33. INSURANCE.
ARTICLE 6. THE INSURANCE POLICY.
§33-6-31g. Electronic insurance verification program; insurer's
duty to cooperate.
If the Division of Motor Vehicles establishes an electronic
insurance verification program in accordance with the provisions of
section six-a, article two-a, chapter seventeen of this code, any
insurance company that issues or delivers in this state a policy or
contract of bodily injury liability insurance or of property damage
liability insurance covering liability arising from the ownership, maintenance or use of any motor vehicle, or upon any motor vehicle
for which a certificate of title has been issued by the Division of
Motor Vehicles of this state, shall give access to the company's
records in the manner required by legislative rules proposed by the
Division of Motor Vehicles to implement such program. The failure to
comply with the requirement to provide such access in accordance
with such rules constitutes a violation of a rule of the Insurance
Commissioner and may be penalized in the manner permitted by section
eleven, article three, chapter thirty-three of this code.
NOTE: The purpose of this bill is to authorize the Division of
Motor Vehicles to utilize an electronic insurance verification
program to identify uninsured motor vehicles.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
§17D-2A-6a and §33-6-31g are new; therefore, underscoring and
strike-throughs have been omitted
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