H. B. 3004


(By Delegates Warner, Coleman,
Shelton, Hubbard and Border)
[Introduced March 26, 2001; referred to the
Committee on Roads and Transportation then Finance.]



A BILL to repeal section three-a, article three, chapter seventeen-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to repeal sections fifteen and sixteen, article four, chapter seventeen-d of said code; to amend article five, chapter eleven of said code by adding thereto two new sections, designated sections three-a and three-b; to amend and reenact section twenty-one, article two, chapter seventeen-a of said code; to amend and reenact sections three and seventeen, article three of said chapter; to amend and reenact section one, article five of said chapter; to amend and reenact sections three and seven, article two-a, chapter seventeen-d of said code; to further amend said article by adding thereto three new sections, designated sections three-a, three-b and three-c; to amend and reenact section eighteen, article four of said chapter; and to amend and reenact section twelve-a, article seven, chapter twenty of said code, all relating to the division of motor vehicles; modifying the procedure for applications for vehicle registrations and renewals thereof; exempting certain fees from deposit in the state road fund; eliminating the requirement that applications for registration of motor vehicles be signed in ink; eliminating the requirement that proof of payment of personal property taxes accompany application for renewal of vehicle or motorboat registration; authorizing sheriffs to block renewals of vehicle and motorboat registrations for nonpayment of personal property taxes; authorizing sheriffs to collect fees for reinstatement of certain registration renewals and creating special fund comprising such fees; eliminating the option of posting bond or depositing securities with the state treasurer in lieu of maintaining insurance on vehicles; providing for insurance company reporting as an optional method of verification of insurance coverage; prescribing penalties for violations of company reporting requirements; altering the administrative penalty for certain violations of laws requiring security on vehicles.

Be it enacted by the Legislature of West Virginia:
That section three-a, article three, chapter seventeen-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be repealed; that sections fifteen and sixteen, article four, chapter seventeen-d of said code be repealed; that article five, chapter eleven of said code be amended by adding thereto two new sections, designated sections three-a and three-b; that section twenty-one, article two, chapter seventeen-a of said code be amended and reenacted; that sections three and seventeen, article three of said chapter be amended and reenacted; that section one, article five of said chapter be amended and reenacted; that sections three and seven, article two-a, chapter seventeen-d of said code be amended and reenacted; that said article be further amended by adding thereto three new sections, designated sections three-a, three-b and three-c; that section eighteen, article four of said chapter be amended and reenacted; and that section twelve- a, article seven, chapter twenty of said code be amended and reenacted, all to read as follows:
CHAPTER 11. TAXATION.

ARTICLE 5. ASSESSMENT OF PERSONAL PROPERTY.
§11-5-3a. Tax commissioner to furnish schedule of automobile values; duties of sheriffs and assessors.

The state tax commissioner shall annually compile and furnish to each assessor a schedule of automobile values, based on the lower values shown in a nationally accepted used car guide. The schedule shall be used by each assessor as a guide in placing the assessed value on each automobile in his or her county.
Each county assessor shall require any person having a duty to make return of property for taxation to him or her to furnish information identifying each vehicle subject to the registration provisions of chapter seventeen-a. When the property taxes on any vehicle have been paid, the officer to whom the payment was made shall deliver to the person paying the taxes as a written or printed receipt for the payment, and shall retain for his or her records a duplicate of the receipt. It is the duty of the assessor and sheriff, respectively, to see that the assessment records and the receipts contain information adequately identifying the vehicle as registered under the provisions of chapter seventeen-a. The officer receiving payment shall sign each receipt in his or her own handwriting.
§11-5-3b. Tax commissioner to furnish schedule of motorboat values; duties of sheriffs and assessors.

The assessor shall require any person having a duty to make a return of property for taxation to him or her to furnish information identifying each motorboat subject to the provisions of article seven, chapter twenty of this code. When the property taxes on the motorboat have been paid, the officer to whom the payment was made shall deliver to the person paying the taxes a written or printed receipt therefor, and shall retain for his or her records a duplicate of the receipt. The assessor and sheriff, respectively, shall see that the assessment records and the receipts contain information adequately identifying the motorboat as registered under the provisions of article seven, chapter twenty of this code. The officer receiving payment shall sign each receipt in his or her own handwriting.
The state tax commissioner shall annually compile a schedule of motorboat values, based on the lowest values shown in a nationally accepted used motorboat guide, which schedule shall be furnished to each assessor and shall be used by him or her as a guide in placing the assessed values on all motorboats in his or her county.
CHAPTER 17A. MOTOR VEHICLE ADMINISTRATION, REGISTRATION,

CERTIFICATE OF TITLE, AND ANTITHEFT PROVISIONS.
ARTICLE 2. DEPARTMENT OF MOTOR VEHICLES.
§17A-2-21. Payment of revenue collected to state treasurer for credit to state road fund; certain electronic commerce fees exempt.

Taxes and fees imposed and collected under the provisions of this chapter shall be are paid to the state treasurer in the manner provided by law, and credited to the state road fund: Provided, That any additional fee charged by a vendor selected by the treasurer for the operation of an e-commerce system that is utilized by the division for the acceptance of payments of any fee or tax required by the provisions of this chapter are exempt from the provisions of this section.
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 such application shall bear the signature of the owner or his or her authorized agent, written with pen and ink, and in a manner as the commissioner may require. At a minimum, the application shall contain include:
(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
(1) A statement of its declared gross weight if the motor vehicle is to be used alone; or
(2) 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: (i) 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 that the owner intends to place on the vehicle; and (ii) 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: Provided, That the The declared gross weight stated in the application shall 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 chapter seventeen-c of this code.
(d) Each applicant shall state submit a statement with regard to 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 such vehicle, obtain if so, whether the owner has obtained a certificate of convenience, or permit from the public service commission.
(e) Each applicant shall submit 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 and that such insurance is within limits which shall be no 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 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, chapter seventeen-d: Provided, That in or that the applicant has submitted bond or other security approved by the commissioner of motor vehicles which shall provide the equivalent of the policy of insurance specified in this section, 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, 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 paragraph (B) 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 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. The 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 division shall forward the information provided by the registrant to the listed insurer. The insurer shall notify the division, on a form required by the commissioner, within twenty calendar days if the liability insurance is or is not in effect, as required by this section.
The division may select for verification any statement of liability insurance submitted by a person who has previously been convicted or whose registration or driver's license has been suspended 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 division may also determine the correctness of information relating to proof of other security satisfying the requirements of this section.
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 current proof of insurance as of the original notice date or other requested information to the commissioner. Following this additional 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 of this chapter.
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 suspension shall be withdrawn and any fees collected by the state shall be returned.
Upon the timely written request of a person whose vehicle 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 or 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 that the person whose vehicle registration or driver's license was suspended was not in violation of the provisions of this section, 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 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. The commissioner shall not stay enforcement of the order during the appeal. 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.
(3) (f) 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 the county or regional 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 operator's or chauffeur's driver's license and vehicle registration suspended for a period of six months: Provided, That if a motor vehicle is registered in more than one name, the driver's license of only one of the owners may be suspended by the commissioner.
(f) (g) Any further information as may reasonably be required by the division to enable it to determine whether the vehicle is lawfully entitled to registration.
(g) (h) Each such 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, the fee to be deposited in a special revolving fund for the operation by the division of its functions established by the provisions of article two-a, chapter seventeen-d of this
code.
§17A-3-17. Application for renewal of registration; sheriffs authorized to issue renewals of registration for certain vehicles and to block renewals for nonpayment of personal property taxes; special fund created.

(a) Application for renewal of a vehicle registration shall be made by the vehicle owner by proper application and payment of taxes and registration fees provided by law.
(b) The division may receive applications for renewal of any vehicle registration and each sheriff shall receive applications from residents in his or her county for renewal of any Class A or G vehicle registration. The division and each sheriff shall issue the renewals of registration each receives, respectively, in accordance with all of the provisions in this article pertaining to renewal of vehicle registration. including, but not limited to, the payment of the taxes and fees required thereunder.
(c) Any sheriff may prohibit the renewal of the vehicle registration of any registrant whom the sheriff determines is delinquent, in accordance with the provisions of section three, article one, chapter eleven-a, in the payment of any personal property taxes on all vehicles registered in the applicant's name:
(1) The sheriff shall, in a manner prescribed by the commissioner, enter on to the divisions's vehicle registration system database a block against each registration record of the delinquent taxpayer;
(2) Upon the entry of the block by a sheriff against a registration record, the division shall be prohibited from issuing the renewal that is the subject of the block until the block is removed by the sheriff, and the applicant may not have a right to an administrative hearing before the commissioner to contest the commissioner's action or to contest any action of the sheriff in entering a block: Provided, That any person aggrieved by an action of the sheriff taken in accordance with the provisions of this subsection is entitled to seek relief in the circuit court against the sheriff;
(3) The sheriff shall, within one business day, remove the block against the vehicle registration upon the payment of the delinquent personal property tax;
(4) If an applicant for renewal of registration contends that any registered vehicle that is the subject of a block was not subject to personal property taxation, he or she shall furnish the information and evidence to the sheriff to substantiate his or her contention;
(5) In addition to any other fees or penalties prescribed by law, each sheriff may charge a reinstatement fee of not more than fifty dollars to cover the administrative expense of entering and removing any block entered in accordance with this section. The sheriff shall establish a special fund, designated the vehicle registration services fund, in which the sheriff shall deposit all reinstatement fee and the county commission shall appropriate money from the fund to cover the sheriff's expenses in entering and removing blocks on the registration records of delinquent taxpayers.
(c) (d) Each sheriff shall charge a service fee of one dollar for each renewal of a Class A or G vehicle registration he or she issues. Effective the first day of July, one thousand nine hundred ninety-eight, the The sheriff shall pay one half of this fee into the county general fund The sheriff shall pay and the remaining one half of this fee into the deputy sheriff retirement fund created in section six, article fourteen-d, chapter seven of this code.
(d) (e) On the first day of each month, each sheriff shall pay over to the commissioner all fees he or she collected during the preceding month for renewal of Class A and G vehicle registrations, except his or her service and reinstatement fees. The payment shall be accompanied by a report showing the name of the county, the name and address of the person who obtained the registration and paid the registration fee therefor, the vehicle registered, the registration number, the date the registration was issued, the signature of the sheriff and any other information the commissioner may reasonably require in order to maintain the functions and records of the department division. The commissioner shall deposit all fees he or she receives from the sheriffs for renewal of Class A and G vehicle registrations in the state treasury to the credit of the state road fund as provided in section twenty-one, article two of this chapter.
(e) (f) The commissioner shall provide each sheriff with the necessary forms, supplies, registration plates, registration decals and instructions necessary to enable him or her to perform the duties and functions specified in this section.
(f) (g) No person may display upon a vehicle a new registration plate or registration decal prior to the first day of the month preceding the new registration period.
 ARTICLE 5. PERMITS TO NONRESIDENT OWNERS.
§17A-5-1. Exemptions from registration of nonresident owners; special permit and certificate in lieu of registration for nonresidents maintaining temporary and recurrent or seasonal residence in state.

(a) A nonresident owner, except as otherwise provided in this section, owning any vehicle registered in a foreign state or country of a Class A type otherwise subject to registration hereunder may operate or permit the operation of such the vehicle within this state for a period of thirty days without registering such the vehicle in, or paying any fees to, this state subject to the condition that such the vehicle at all times when operated in this state is duly registered in and displays upon it a valid registration card and registration plate or plates issued for such the vehicle in the place of residence of such the owner and that such the vehicle is not operated for commercial purposes.
(b) Every nonresident, including any foreign corporation, carrying on business within this state and owning and regularly operating in such a business any motor vehicle, trailer or semitrailer or mobile equipment as defined in section one, article one, chapter seventeen-a of this code, within this state, shall be required to register each such vehicle and pay the same fee therefor as is required with reference to like vehicles owned by residents of this state, except as otherwise provided by reciprocal agreements with other states accomplished pursuant to sections ten and ten-a, article two of this chapter.
(c) Any nonresident who accepts or engages in temporary and recurrent or seasonal employment, business, profession or occupation in this state and maintains temporary and recurrent or seasonal residence in this state in connection with such employment, business, profession or occupation, and any nonresident, including any corporation carrying on business of a temporary and recurrent or seasonal nature in this state and owning and temporarily and recurrently or seasonally operating in such a business any motor vehicle, trailer or semitrailer or mobile equipment as defined in section one, article one, chapter seventeen-a of this code, within this state, may operate or permit the operation of such the vehicle within this state without causing said the vehicle to be registered as otherwise required by article three of this chapter: Provided, That such a nonresident, in lieu of registration of such the vehicle, shall make application to the division and receive a special permit for such the vehicle which shall be evidenced by a metal identification plate and certificate in writing, which special permit plate and certificate shall together identify the vehicle for which such the special permit and plate shall issue and such the certificate shall bear the name and address of the owner of such the vehicle. Such The special permit shall be issued without previous certification of title to such the vehicle as otherwise required by article three of this chapter or the provisions of subsection (b) of this section:
(1) Every owner of a vehicle for which such a special permit is desired shall make a verified application to the division for such a special permit upon the appropriate form or forms furnished by the division and shall bear the signature of the owner written with pen and ink and in a manner as the commissioner may require and the application shall contain the character of information called for by section three, article three of this chapter, a description of the employment, residence, business and location of such the business set forth in such a manner as to show the temporary and recurrent or seasonal nature of such the residence, employment, business, profession or occupation, and that such the vehicle is duly registered in the state of residence of such the owner. There shall be an application for each vehicle for which a special permit is desired;
(2) Any special permit or plate issued by the division under this section shall be effective and valid for a period of sixty consecutive days from and including the date of issuance and, upon similar application by the owner, the commissioner may renew any such special permit for immediately ensuing similar period or periods of sixty days in any fiscal year. The division shall charge a fee of fifty dollars for each special permit issued under this section:
(A) A special permit shall be is issued for one vehicle only and no combination of two or more vehicles shall be are operated under fewer special permits than the number of vehicles in such the combination. A special permit shall may not be issued for any vehicle which is not duly registered in the state of residence of the owner thereof.
(B) The registration plate issued for such the vehicle by the state of residence of the owner shall may not be displayed on such the vehicle while being operated over any highway during any period for which a special permit shall have has been issued for such the vehicle under this section, but there shall be carried in such the vehicle the certificate of registration issued for such the vehicle by the state of residence of such the owner.
(C) Any owner of any vehicle making application to operate such the vehicle upon the highways of this state pursuant to the provisions of this article shall also be required to comply with the provisions of chapter seventeen-d of this code prior to commencing such operation.
(3) The commissioner shall prescribe the substance, form, color and context of the certificate or special permit and the special permit plate, each of which shall be are visually distinguishable from the certificates of registration and registration plates issued under article three of this chapter.
(4) It is a misdemeanor for any person to drive or move or knowingly to permit to be moved or driven upon any highway any vehicle for which a special permit shall have has been issued under this section unless such the vehicle shall bear the special plate called for by the certificate evidencing such a special permit.
(5) When the employment, business, profession, occupation or residence of the owner of a vehicle for which such a special permit shall have has been issued shall cease to be temporary and recurrent or seasonal, any special permit issued for such the vehicle pursuant to this section shall immediately terminate and become void and such the vehicle shall thereupon become subject to registration under article three of this chapter or the provisions of subsection (b) of this section.
(6) Any special permit issued pursuant to this section shall be is valid and effective on and after the first day of a month; that is, such the special permit issued between the first and fifteenth days of a month shall be effective during sixty consecutive days from and including the first day of the month in which the permit shall issue; and a special permit issued after the fifteenth day of any month shall be effective during sixty consecutive days commencing with and including the first day of the month next following the month in which such a special permit shall be issued.
(d) Any other provision of this section notwithstanding, any nonresident referred to in subsection (c) of this section who is engaged by a public utility, as the latter is defined in chapter twenty-four of this code, for the exclusive purpose of restoring the service of said the utility as a result of an emergency in which such the service is affected shall be permitted to operate such a motor vehicle, trailer or semitrailer or mobile equipment as defined in section one, article one, chapter seventeen-a of this code, within this state, without causing said the motor vehicle, trailer or semitrailer or mobile equipment as defined in section one, article one, chapter seventeen-a of this code to be registered as otherwise provided by this section and article three of this chapter for the period actually necessary for such the restoration but not to exceed a period of ten consecutive days: Provided, That said the motor vehicle, trailer or semitrailer or mobile equipment shall be is registered in another state upon entry into this state. The provisions of this subsection shall may not affect the requirements of reciprocal agreements with other states accomplished pursuant to sections ten and ten-a, article two of this chapter.
CHAPTER 17D. MOTOR VEHICLE SAFETY RESPONSIBILITY LAW.

 ARTICLE 2A. SECURITY UPON MOTOR VEHICLES.
§17D-2A-3. Required security; exceptions.
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.
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. No person shall 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 security is in effect.
 Such The security shall be provided by one of the following methods:
(a) 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 less than the requirements of section two, article four, chapter seventeen-d of this code; or
(b) By any other method approved by the commissioner of the department of motor vehicles of this state as affording security equivalent to that offered by a policy of insurance, including qualification as a self-insurer under the provisions of section two, article six, chapter seventeen-d. or
(c) By depositing with the state treasurer such cash or other securities in the manner set forth in section sixteen, article four, chapter seventeen-d of this code.
The requirements of this section apply to every registered and licensed vehicle upon the next application for renewal of license following the effective date of this section: Provided, That this article shall may 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-3a. Voluntary cancellation of insurance; reinstatement of registration.

(a) 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 notify the division by certified mail of the cancellation, which 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.
(b) The registration of any vehicle upon which insurance coverage has been dropped or canceled under subsection (a) shall be reinstated upon submission of current proof of insurance and payment of the duplicate plate fee prescribed by section eleven, article ten of chapter seventeen-a.
§17D-2A-3b. Verification of insurance coverage by random sampling; procedure; penalties.

(a) Selection of registrations-
(1) The division shall select no fewer than one percent of the total number of those motor vehicles registered annually for a random sample verification of current insurance coverage.
(2) The commissioner may select the registration of any person who within the last five years: (A) Has had his or her vehicle registration or driver's license suspended or revoked; (B) has previously been convicted of or whose registration or driver's license has been suspended for violating the provisions of section three, article two-a, chapter seventeen-d of this code; or (C) whose statements of liability insurance have previously been found to be incorrect. The division may also determine the correctness of information relating to proof of other security. Any registration selected pursuant to this subsection may be included in the total number of motor vehicles selected for purposes of meeting the minimum sample pool.
(3) Random sample verification may be conducted on a monthly basis, and the selection of a registration may not preclude that same registration from being selected again in any subsequent month.
(b) Procedure after selection of registration:
(1) 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. The division shall forward the information provided by the registrant to the listed insurer. The insurer shall notify the division within twenty calendar days, on a form required by the commissioner, if the liability insurance is or is not in effect.
(2) If the registrant has not responded within twenty days, 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 section three-a of this article, 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 proof of insurance as of the original notice date. Following this additional twenty-day period, if the registrant fails to provide the requested proof of insurance coverage, an order of suspension is directed to the superintendent by the commissioner as provided in section seven, article nine of chapter seventeen-a.
(3) 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 thirty 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 suspension is withdrawn and any fees collected by the state is returned.
(4) Upon the timely written request of a person whose vehicle 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 or 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 that the person whose vehicle registration or driver's license was suspended was not in violation of the provisions of this section, the commissioner shall rescind his or her earlier order of suspension.
(5) A copy of the commissioner's order made and entered following the hearing may be served on the person by registered or certified mail, return receipt requested. During the pendency of any hearing, the revocation of the person's license to operate a motor vehicle in this state may be stayed. If the commissioner, after hearing, makes and enters an order affirming the commissioner's earlier order of revocation, the person is entitled to judicial review as set forth in chapter twenty-nine-a of this code. The commissioner may not stay enforcement of the order during the appeal. Pending the appeal, the court may grant a stay or supersedes of the order upon a finding by the court that there is a substantial probability that the appellant will prevail upon the merits and that he or she will suffer irreparable harm if the order is not stayed.
(c) If any person who in responding to any notice received from the commissioner under subdivision one or two of the preceding subsection knowingly provides false information, false proof of security or a false statement of insurance, or if any person, including a registrant's insurance agent, knowingly counsels, advises, aids or abets another in providing false information or false proof of security, he or she is guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than five hundred dollars, or be imprisoned for a period not to exceed fifteen days, or both, and in addition to the fine or imprisonment shall have his or her driver's license and vehicle registration suspended for a period of six months.
§17D-2A-3c. Insurance company reporting; procedure whenever lack of coverage is suspected; penalties.

If the commissioner determines that a system requiring insurance companies to electronically submit reports to the division regarding motor vehicle insurance policies in effect can be accomplished in a cost effective manner that will increase the rate of compliance with the requirements of section three of this article, he or she may establish a reporting system to be used in lieu of the verification procedure established in section three-b of this article, and the system shall be subject to the following:
(a) Every insurance company providing motor vehicle liability insurance coverage for vehicles registered in this state must provide on a monthly basis a record of each policy in effect. The commissioner may require that the information be provided through any means of electronic medium approved by the commissioner. The commissioner may also require that the reports require the following:
(1) The name, date of birth, driver's license number of each insured owner or operator, and the address of the named insured;
(2) The make, year, and vehicle identification number of each insured vehicle; and
(3) The policy number, effective date and expiration date of each policy.
(b) The commissioner may assess a penalty of not more than two hundred dollars for each day an insurance company fails to file a report or otherwise fails to comply with any requirement established by any rule promulgated to implement the provisions of this section.
(c) Whenever it appears from the reports submitted in accordance with subsection (a) of this section that a registrant does not have insurance within limits no less than the requirements of section two, article four, chapter seventeen-d of this code, the commissioner shall proceed in the manner set forth in section three-b of this article, and the penalties created in subsection (c) of that section applies in the same manner as if the registrant were selected under the random verification process.
§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 the vehicle is 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 a 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.
(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.
(c) A person's driver's license shall be suspended for a period of thirty days 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 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 the person. The commissioner may request additional information as needed in order to make such a determination.
(e) No person shall have his or her driver's license or motor vehicle registration suspended or revoked under any provisions of this section unless he or she shall first be given written notice of such the suspension or revocation sent by certified mail, at least twenty days prior to the effective date of such the suspension or revocation, and upon such a 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 the hearing. Upon affirmation of the commissioner's order, the period of suspension or revocation shall commence to run.
(f) Such suspended driver's license shall be reinstated following the period of suspension upon compliance with the conditions set forth in this article and such the revoked motor vehicle registration shall be reissued only upon lawful compliance with the provisions of this article.
(g) If a violation of this section or section three-b, three-c or five of this article occurs within five years of a previous suspension of the commissioner has previously suspended the person's driver's license under the provisions of this section or section three-b, section three-c or section five of this article, the period of suspension shall be for a period of ninety days.
ARTICLE 4. PROOF OF FINANCIAL RESPONSIBILITY FOR THE FUTURE.
§17D-4-18. Substitution of proof.

The commissioner shall consent to the cancellation of any bond or certificate of insurance or the commissioner shall direct and the state treasurer shall return any money or securities to the person entitled thereto upon the substitution and acceptance of other adequate proof of financial responsibility pursuant to this chapter.
CHAPTER 20. NATURAL RESOURCES.
ARTICLE 7. LAW ENFORCEMENT, MOTORBOATING, LITTER.
§20-7-12a. Sheriffs authorized to block issuance of certificates of number and renewals for nonpayment of personal property taxes; fees; deposit in special fund.

(a) Any sheriff may prohibit the issuance of a certificate of number and renewals thereof to any registrant who the sheriff determines is delinquent, in accordance with the provisions of section three, article one, chapter eleven-a, in the payment of personal property taxes on any motorboat registered in the applicant's name.
(1) The sheriff shall, in a manner prescribed by the commissioner, enter on the division's motorboat registration system data base a block against each registration record of the delinquent taxpayer.
(2) Upon the entry of the block by a sheriff against a registration record, the division is prohibited from issuing the renewal that is the subject to the block that is removed by the sheriff, and the applicant may not have a right to an administrative hearing before the commissioner to contest the commissioner's action or to contest any action of the sheriff in entering a block: Provided, That any person aggrieved by an action of the sheriff taken in accordance with the provisions of this subsection is entitled to seek relief in the circuit court against the sheriff.
(3) The sheriff shall, within one business day, remove the block against the motorboat registration of any delinquent taxpayer who pays the delinquent personal property tax to the satisfaction of the sheriff.
(4) If any applicant for renewal of registration contends that any motorboat that is the subject of a block was not subject to personal property taxation, he or she shall furnish the information and evidence to the sheriff to substantiate his or her contention.
(b) In addition to any other fees or penalties prescribed by law, each sheriff may charge a reinstatement fee of not more than fifty dollars to cover the administrative expense of entering and removing any block entered in accordance with this section. The sheriff shall deposit all reinstatement fees in the special fund created in subsection (c), section seventeen, article three, chapter seventeen-a of this code, and the county commission shall appropriate money from the fund to administer the reinstatement program.


NOTE: The purpose of this bill is to modify the application procedure for vehicle registrations and renewals. The bill also would do the following: (1) Exempt certain fees from deposit in the state road fund; (2) eliminate the requirement that applications for registration of motor vehicles be signed in ink; (3) eliminate the requirement that proof of payment of personal property taxes accompany applications for renewal of vehicle or motorboat registration; (4) authorizes sheriffs to block renewals of vehicles and motorboat registrations for nonpayment of personal property taxes; (5) authorizes sheriffs to collect fees for reinstatement of certain registration renewals while creating a special fund to deposit the fees; (6) eliminates the option of posting bond or depositing securities with the state treasurer in lieu of maintaining insurance on vehicles; (7) provides for insurance companies to report an optional method of verification of insurance coverage; (8) prescribes penalties for violations of company reporting requirements; and, (9) alters the administrative penalty for certain violations of laws requiring security on vehicles.

§11-5-3a, 3b, §17D-2A-3a, 3b and 3c are new; and §20-7-12a has been completely rewritten; therefore, strike-throughs and underscoring have been omitted.

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