H. B. 4490


(By Delegates Talbott, Gallagher, Clements,


Trump, Preece, Kelley and Kallai

)

(Originating in the House Committee on Finance)

[February 28, 1996]




A BILL to amend article two-a, chapter seventeen-d of the code of West Virginia, one thousand nine hundred thirty-one, as amended; by adding thereto a new section, designated section five-a; to amend and reenact section six of said article two-a; to amend and reenact section three, article three, chapter seventeen-a; to amend and reenact section seven, article nine of said chapter; and to amend and reenact section nine, article three, chapter seventeen-b, all relating to surrender of registration plate or notification upon canceling insurance coverage; establishing a verification process; suspension of motor vehicle registration; judicial review of suspension; reinstatement fees; allowing law enforcement officers to stop vehicles solely to inquire as to certificate of insurance; requiring a court to look at other documentation security upon motor vehicles; establishing an uninsured motorist identification database program; providing for administration of and duties regarding the database developed thereunder; setting a cap on the amount which may be expended for the data base; and
authorizing rule making by the division of motor vehicles.
Be it enacted by the Legislature of West Virginia:
That article two-a, chapter seventeen-d of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section five-a; to amend and reenact section six of said article two-a; to amend and reenact section three, article three, chapter seventeen-a; to amend and reenact section seven, article nine of said chapter; and to amend and reenact section nine, article three, chapter seventeen-b be amended and reenacted, 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.

(a) Every owner of a vehicle subject to registration hereunder shall make application to the department division for the registration thereof upon the appropriate form or forms furnished by the department division and every such application shall bear the signature of the owner or his or her authorized agent, written with pen and ink, and said application shall contain:
(1) The name, bona fide residence and mailing address of theowner, the county in which he or she resides, or business address of the owner if a firm, association or corporation.
(2) A description of the vehicle including, insofar as the hereinafter specified data 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.
(3) 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 such motor vehicle is to be used alone, or if such motor vehicle is to be used in combination with other vehicles, the application for registration of such motor vehicle shall include a statement of the combined declared gross weight of such motor vehicle and the vehicles to be drawn by such 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 thereon; and the application for registration of each such 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 not exceed the permissible gross weight for the axle spacing listed therein 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 shall be subject to the single-axle load limitset forth in chapter seventeen-c of this code.
(4) Each such applicant shall state whether such vehicle is or is not to be used in the public transportation of passengers or property, or both, for compensation, and if so used, or to be used, the applicants shall so certify, and shall, as a condition precedent to the registration of such vehicle, obtain a certificate of convenience, or permit from the public service commission.
(5) 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 less than the requirement of section two, article four, chapter seventeen-d of this code, which statement 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 such other information as may be 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, chapter seventeen-d of the code 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 chapter seventeen-d, or that such applicant has submitted bond or other security approved by the commissioner of motor vehicles which shall provide the equivalent of the policy of insurance herein specified, or that the applicant has submitted the required cash or other securities with the state treasurer as set forth in the provisions of section sixteen,article four of said chapter seventeen-d of this code.
(A) Intentional lapses of insurance coverage.
(i) In the case of a periodic use or seasonal vehicle, as defined in section three, article two-a, chapter seventeen-d, 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 department division.
(ii) 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. Such 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.
(iii) The registration of any vehicle upon which insurance coverage has been dropped or canceled under subsection (ii) shall be reinstated upon submission of current proof of insurance and payment of the duplicate plate fee prescribed by this chapter.
(B) Verification Process.
The department shall periodically select for verification, on a random sample basis, not fewer than one percent of the statements of liability insurance required by this section. Thedivision shall select no fewer than one percent of the total number of motor vehicles registered annually for a random sample verification of current insurance coverage. The division may also select an owners statement of insurance submitted at the time of registration or registration renewal for verification.
Random sample verification of current insurance coverage shall be conducted on a monthly basis. The basis for each sample shall be the entire registered motor vehicle base. The selection of a registration for random sample verification shall not preclude the registration from being selected again in any subsequent month.
The division shall notify the registrant by regular mail that he or she has twenty days to provide the division with proof of insurance indicating current insurance coverage on the indicated vehicle as of the date of the notice. Such information shall be verified with the indicated insurance company as provided in this section or in the case of a verification of the original owner's statement of insurance, proof of insurance as of the date of submission of the owner's statement.

When a statement or registration is selected for verification, the department division shall forward the information provided on the statement by the registrant to the listed insurer. The insurer shall notify the department division, by such form as the commissioner may require, within thirty twenty calendar days if the liability insurance is or is not in effect, as required by this section.
The department division may select for verification anystatement of liability insurance submitted by a person who has previously been convicted or whose registration or driver's license has been suspended of for violating the provisions of section three, article two-a, chapter seventeen-d of this code, or whose statements of liability insurance have previously been found to be incorrect. The department division may also determine the correctness of information relating to proof of other security satisfying the requirements of this section.
If the department determines through the verification process that there is no liability insurance in effect, then within fifteen days of receipt of notice from the insurer, the commissioner of motor vehicles shall inform the registrant that the department of motor vehicles has received the notice from the insurer. This information shall be sent by regular mail and shall request verification of insurance or a statement from the registrant, under penalty of false swearing, that cancellation will not result in the operation of an uninsured vehicle upon the highways of this state, and this verification shall be returned to the commissioner within twenty days of the date of mailing. Following the twenty-day period, if the registrant has not responded, or the division determines through the verification process with the insurance company that there is or was no liability insurance in effect, and the registrant has not complied with the provisions of intentional lapse of insurance then the commissioner shall send a notice of pending suspension of the motor vehicle registration and the suspension of the owner or owner's driver's license to the registrant by certified mail. The notice of pending suspension shall grant the registrant an additional twenty days from the date of the mailing to provide verification of current proof of insurance as of the original notice date insurance or other requested information to the commissioner. Following this twenty-day period, if the registrant fails to provide proof of current insurance coverage as of the date of the original notice, an order of suspension shall be directed to the superintendent by the commissioner as provided in section seven, article nine, chapter seventeen-a of this code. The commissioner shall suspend the motor vehicle registration until current proof of insurance is received and shall suspend the driver's license of the owner or owners of the motor vehicle for a period of ninety days: Provided, That whenever the commissioner determines that the vehicle was actually insured despite the receipt of a notice from the insurer, or the license plate was surrendered to the division upon cancellation of coverage or that the registrant complied with the intentional lapse of coverage notice provisions the and the registrant, under penalty of false swearing produces a statement that cancellation will not result in the operation of an uninsured vehicle upon the highways of this state, or produces verification of insurance, suspension shall be withdrawn and any fees collected by the state shall be returned. The registrant shall be given notice and afforded an opportunity for hearing and judicial review thereof in accordance with the provisions of subsection (c), section seven, article two, chapter seventeen-d of this code. Upon the timely written request of a person whosevehicle registration or driver's license is suspended under the provisions of this section, the commissioner shall stay the suspension, and afford the person an opportunity to be heard. The written request must be filed with the commissioner in person, by registered or certified mail, return receipt requested, within ten days after receipt of a copy of the order of suspension.
If the commissioner finds to the contrary with respect to the above issues, the commissioner shall rescind his or her earlier order of suspension.
A copy of the commissioner's order made and entered following the hearing shall be served on the person by registered or certified mail, return receipt requested. During the pendency of any such hearing, the revocation of the person's license to operate a motor vehicle in this state shall be stayed. If the commissioner shall, after hearing, make and enter an order affirming the commissioner's earlier order of revocation, the person shall be entitled to judicial review as set forth in chapter twenty-nine-a of this code, except that the commissioner shall not stay enforcement of the order; and, pending the appeal, the court may grant a stay or supersedeas of the order only upon motion and hearing, and a finding by the court upon the evidence presented, that there is a substantial probability that the appellant shall prevail upon the merits, and the appellant will suffer irreparable harm if the order is not stayed:
Provided, That in no event shall the stay or supersedeas of the order exceed thirty days.
(C) If any person making an application required under the provisions of this section, therein 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 such application, he is guilty of a misdemeanor, and, upon conviction thereof, shall be fined not more than five hundred dollars, or be imprisoned in the county jail for a period not to exceed fifteen days, or both fined and imprisoned, and in addition to such fine or imprisonment shall have his operator's or chauffeur's license and vehicle registration suspended for a period of six months.
(6) Such further information as may reasonably be required by the department division to enable it to determine whether the vehicle is lawfully entitled to registration.
(7) Each such application for registration shall be accompanied by the fees hereafter provided, and an additional fee of one dollar for each motor vehicle for which the applicant seeks registration, such fee to be deposited in a special revolving fund for the operation by the department division of its functions established by the provisions of article two-a, chapter seventeen-d of this code: Provided, That July one, one thousand nine hundred eighty-five, the additional fee will reduce to and remain at fifty cents.
ARTICLE 9. OFFENSES AGAINST REGISTRATION LAWS AND SUSPENSION OR REVOCATION OF REGISTRATION.
§17A-9-7. Surrender of evidences of registration, etc., upon cancellation, suspension or revocation; willful failure or refusal to surrender; fee for reinstatement.
Whenever the registration of a vehicle, a certificate of title, a registration card, registration plate or plates, a temporary registration plate or marker, the right to issue temporary registration plates or markers, any nonresident or other permit, or any license certificate or dealer special plates issued under the provisions of article six of this chapter, is canceled, suspended or revoked as authorized in this chapter, the owner, holder or other person in possession of such evidences shall, except as otherwise provided in said article six, immediately return the evidences of the registration, title, permit or license so canceled, suspended, or revoked, together with any dealer special plates relating to any such license certificate, or any dealer special plate or plates if such alone be suspended, to the department division: Provided, That the owner or holder shall, before such reinstatement, pay a fee of ten dollars in addition to all other fees, which sum shall be collected by the department division and credited to the state road a special revolving fund to be appropriated to the department division for use in enforcement of the provisions of this code. If any person shall willfully fail or refuse to return to the department division the evidences of the registration, title, permit or license so canceled, suspended, or revoked, or any dealer special plates, when obligated so to do asaforesaid, the commissioner shall forthwith notify the superintendent of the department of public safety state police who shall, as soon as possible, secure possession thereof and return same to the department. Said superintendent of the department of public safety state police shall make a report in writing to the commissioner, within two weeks after being so notified by the commissioner, as to the result of his or her efforts to secure the possession and return of such evidences of registration, title, permit or license, or any dealer special plates. For each registration, certificate of title, registration card, registration plate or plates, temporary registration plate or marker, permit, license certificate, or dealer special plate, which the owner, holder or other person in possession thereof shall have willfully failed or refused, as aforesaid, to return to the department division within ten days from the time that such cancellation, suspension or revocation becomes effective, and which shall have been certified to the superintendent of the department of public safety state police as aforesaid, the owner or holder shall, before the same may be reinstated, if reinstatement is permitted, in addition to all other fees and charges, pay a fee of fifteen dollars, which fee shall be collected by the department division of motor vehicles, paid into the state treasury and credited to the general fund to be appropriated to the department of public safety state police for application in the enforcement of the road laws. A total of twenty-five dollars may be collected on each such reinstatement for each vehicle to which any such cancellation, suspension orrevocation relates: Provided, That when any motor vehicle registration is suspended for failure to maintain motor vehicle liability insurance the reinstatement fee shall be one hundred dollars, and if the vehicle owner fails to surrender such vehicle registration and the orders go to the state police, an additional fee of fifty dollars shall be required before such motor vehicle registration may be reinstated. A total of one hundred and fifty dollars may be collected on each such reinstatement of any motor vehicle registration canceled, suspended or revoked for failure to maintain motor vehicle liability insurance.
CHAPTER 17B. MOTOR VEHICLE DRIVER LICENSES.

ARTICLE 3. CANCELLATION, SUSPENSION OR REVOCATION OF LICENSES.

§17B-3-9. Surrender and return of license not required.

The division, upon suspending or revoking a license, shall not require that such license be surrendered to and be retained by the division. The surrender of a license shall not be a precondition to the commencement and tolling of any applicable period of suspension or revocation: Provided, That before such license may be reinstated, the licensee shall pay a fee of fifteen dollars, in addition to all other fees and charges, which fee shall be collected by the department division and deposited in a special revolving fund to be appropriated to the department division for use in the enforcement of the provisions of this section: Provided, That when any license is suspended for failure to maintain motor vehicle liability insurance, the reinstatement fee shall be fifty dollars.
CHAPTER 17D. MOTOR VEHICLE SAFETY RESPONSIBILITY LAW.

ARTICLE 2A. SECURITY UPON MOTOR VEHICLES.

§17D-2A-5a. Uninsured motorist identification database
program; administration; duties; rule making.
(a) No later than the first day of July, one thousand nine hundred ninety-seven, the division of motor vehicles shall establish an uninsured motorist identification database program to verify compliance with motor vehicle owners' and registrants' security requirements imposed by subsection (a), section three of this article. Those requirements relate to insurance policies delivered or issued for delivery in this state by insurance companies authorized to issue vehicle liability and property insurance policies in this state within limits which are no less than the minimum motor vehicle liability insurance coverage requirements set forth in section two, article four, chapter seventeen-d of this code.
(b) The division of motor vehicles shall administer the uninsured motorist identification database program with the assistance of the West Virginia state police and the insurance commissioner. Provided, That the division of motor vehicles may contract with a third party for the administration of the data base program established in this article.
(c) The division of motor vehicles shall develop and maintain a computer database for the purpose of tracking compliance by motor vehicle owners and registrants with security requirements imposed by subsection (a), section three of this article relating to minimum required motor vehicle liability insurance coverage.
(d) The division of motor vehicles shall develop and maintain the computer database required by this section from the following information:
(1) Notices of cancellation of motor vehicle liability insurance policies filed with the division of motor vehicles by insurance carriers transacting insurance in this state, pursuant to provisions of section five of this article;
(2) Names, dates of birth, addresses and driver license numbers of all persons to whom the division of motor vehicles has issued current driver licenses; and
(3) Data regarding all current motor vehicle registrations.
(e) The division of motor vehicles, acting in conjunction with the West Virginia state police, shall establish guidelines for the development and maintenance of the uninsured motorist identification database to ensure that state and local law- enforcement agencies can efficiently access the database.
(f) At least monthly, the division of motor vehicles shall perform the following duties with regard to the uninsured motorist identification database:
(1) Update the computer database with information provided by insurance companies pursuant to provisions of section five of this article; and
(2) Compare all current motor vehicle registrations against the database.
(g) In accordance with the provisions of article three, chapter twenty-nine-a of this code, the division of motor vehicles may promulgate rules relating to the development,maintenance and use of the uninsured motorist identification database.
§17D-2A-6. Investigation by duly authorized law-enforcement officer to include inquiry regarding required security; notice to division of motor vehicles.
At the time of investigation of a motor vehicle offense or accident in this state by the department of public safety state police or other law-enforcement agency or when a vehicle is stopped by a law-enforcement officer for reasonable cause, the officer of such the agency making such the investigation shall inquire of the operators operator of any motor vehicle involved as to the existence upon such the vehicle or vehicles of the proof of insurance or other security required by the provisions of this code and upon a finding by such the investigating law-enforcement agency, officer or agent thereof that the security required by the provisions of this article is not in effect, as to any such vehicle, he or she shall notify the department division of motor vehicles of such his or her finding within five days if no citation requiring a court appearance is issued. Provided, That such law-enforcement officer or agent shall not stop vehicles solely to inquire as to the certificate of insurance 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 in effect at the time of the traffic offense as required by this article. The court shall not base its decision solely on the presentation of a certificateof insurance as defined in section four, article twenty-four, chapter seventeen-d of this code. The court shall require current documentation from the defendant's insurance company or agent that the defendant in fact was insured at the time of the offense. If, as a result of the defendant's failure to show proof, the court determines that the defendant has violated this article, it shall notify the department division of motor vehicles within five days.




Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

§17D-2A-5a is new; therefore, strike-throughs and underscoring have been omitted.