MISSISSIPPI LEGISLATURE
2011 Regular Session
To: Transportation
By: Representatives Chism, Akins, Campbell, Currie, Denny, Ellington, Formby, Frierson, Gunn, Howell, Ishee, Mayo, McGee, Mims, Nicholson, Puckett, Rogers (14th), Snowden, Weathersby, Aldridge, Arinder, Baker (74th), Baker (8th), Beckett, Bell, Bennett, Bondurant, Bounds, Carpenter, DeLano, Fillingane, Gipson, Guice, Hamilton (109th), Hamilton (6th), Huddleston (15th), Jennings, Mayhall, Moore, Morgan, Nowell, Parker, Pigott, Read, Reed, Rogers (61st), Smith (39th), Staples, Sullivan, Turner, Upshaw, Walley, Ward, Woods, Zuber, Byrd, Eure, Monsour
AN ACT TO CREATE THE PUBLIC SAFETY VERIFICATION AND ENFORCEMENT ACT; TO REQUIRE THE DEPARTMENT OF PUBLIC SAFETY, IN COOPERATION WITH THE COMMISSIONER OF INSURANCE AND DEPARTMENT OF REVENUE, TO CREATE AN ACCESSIBLE COMMON CARRIER-BASED MOTOR VEHICLE INSURANCE VERIFICATION SYSTEM; TO PROVIDE FOR LAW ENFORCEMENT USE OF THE SYSTEM; TO ALLOW INSURERS TO PROVIDE CERTAIN INFORMATION TO BE USED IN THE SYSTEM; TO REQUIRE THE DEPARTMENT OF PUBLIC SAFETY TO ADMINISTER AND ENFORCE THE PROVISIONS OF THIS ACT AND REQUIRE THE DEPARTMENT TO MAKE RULES NECESSARY FOR THE ADMINISTRATION OF THE MOTOR VEHICLE INSURANCE VERIFICATION SYSTEM CREATED UNDER THIS ACT; TO REQUIRE COMPLIANCE WITH THE MOTOR VEHICLE SAFETY-RESPONSIBILITY ACT BEFORE RECEIVING A MOTOR VEHICLE LICENSE TAG; TO REQUIRE THE OWNER OF THE MOTOR VEHICLE TO MAINTAIN CONTINUOUS COVERAGE THROUGHOUT THE LICENSE PERIOD; TO AUTHORIZE SUSPENSION OF DRIVING PRIVILEGES IF A MOTOR VEHICLE OWNER FAILS TO HAVE THE REQUIRED MOTOR VEHICLE LIABILITY INSURANCE; TO AUTHORIZE THE COMMISSIONER OF PUBLIC SAFETY TO IMPOSE CIVIL PENALTIES BECAUSE OF SUCH FAILURE; TO PROVIDE THE REQUIREMENTS FOR REINSTATEMENT OF A SUSPENDED LICENSE; TO PROVIDE THAT MONIES FROM THE COMMISSIONER'S CIVIL PENALTIES SHALL BE DEPOSITED INTO A SPECIAL FUND IN THE STATE TREASURY TO BE KNOWN AS THE MOTORIST IDENTIFICATION DATABASE FUND; TO PROVIDE THAT MONIES IN THE SPECIAL FUND MAY BE USED BY THE DEPARTMENT OF PUBLIC SAFETY, UPON APPROPRIATION BY THE LEGISLATURE, FOR THE PURPOSE OF DEFRAYING EXPENSES AND COSTS FOR THE MOTOR VEHICLE INSURANCE VERIFICATION SYSTEM; TO PROVIDE THAT MONIES IN THE SPECIAL FUND IN EXCESS OF THE AMOUNT NEEDED TO DEFRAY THE EXPENSES AND COSTS OF THE VERIFICATION SYSTEM REMAINING IN THE FUND AT THE END OF A FISCAL YEAR SHALL BE TRANSFERRED TO THE MOTOR VEHICLE AD VALOREM TAX REDUCTION FUND; TO AMEND SECTION 63-15-4, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Sections 1 through 7 of this act shall be known as the "Public Safety Verification and Enforcement Act."
SECTION 2. (1) The Department of Public Safety, hereinafter referred to in this section as "department," in cooperation with the Commissioner of Insurance and Department of Revenue, shall establish an accessible common carrier-based motor vehicle insurance verification system to verify the compliance of a motor vehicle owner or operator with motor vehicle liability policy requirements under the Mississippi Motor Vehicle Safety-Responsibility Law.
(2) The department may contract with a private vendor or vendors to establish and maintain the system.
(3) The system must:
(a) Send requests to insurers for verification of motor vehicle liability insurance using electronic services established by the insurers through the Internet, World Wide Web, or a similar proprietary or common carrier electronic system in compliance with the specifications and standards of the Insurance Industry Committee on Motor Vehicle Administration and other applicable industry standards;
(b) Include appropriate provisions to secure its data against unauthorized access and to maintain a record of all requests and responses;
(c) Be accessible, without fee, to authorized personnel of the department, the courts, law enforcement personnel, county tax collectors, and other entities authorized by the department under the provisions of Section 4 of this act;
(d) Be able to interface with existing department and law enforcement systems;
(e) Receive insurance data file transfers from insurers under specifications and standards set forth in paragraph (a) of this subsection to identify motor vehicles that are not covered by an insurance policy;
(f) Provide a means by which low-volume insurers that are unable to deploy an online interface with the system can report insurance policy data to the department or its designee for inclusion in the system;
(g) Provide a means to track separately or distinguish motor vehicles that are subject to a certificate of insurance under Section 63-15-39 or 63-15-41, a certificate of self-insurance under Section 63-15-53, a bond under Section 63-15-49, or a certificate of deposit of money or securities under Section 63-15-51;
(h) Distinguish motor vehicles that are exempt from the provisions of Sections 1 through 7 of this act;
(i) Be available twenty-four (24) hours a day, seven (7) days a week, subject to reasonable allowances for scheduled maintenance or temporary system failures, to verify the insurance status of any motor vehicle in a manner prescribed by the department; and
(j) Be installed and operational not later than July 1, 2012, following an appropriate testing period of not less than six (6) months.
(4) Every insurer shall cooperate with the department in establishing and maintaining the system and shall provide access to motor vehicle liability policy status information to verify liability coverage for:
(a) A motor vehicle insured by that company that is registered in this state; and
(b) If available, a motor vehicle that is insured by that company or that is operated in this state regardless of where the motor vehicle is registered.
(5) The verification system created under Section 2 of this act shall be interfaced with the Mississippi Department of Revenue's title/registration network system to verify the compliance of a motor vehicle owner or operator with motor vehicle liability policy requirements under the Mississippi Motor Vehicle Safety-Responsibility Law.
SECTION 3. (1) A law enforcement officer or authorized employee of a law enforcement agency may, during the course of a traffic stop or accident investigation, access the verification system established under Section 2 of this act to verify whether a motor vehicle is covered by a valid motor vehicle liability policy in at least the minimum amounts required under Section 63-15-3(j).
(2) The response received from the system supersedes an insurance card produced by a motor vehicle owner or operator, and notwithstanding the display of an insurance card by the owner or operator, the law enforcement officer may issue a complaint and notice to appear to the owner or operator for a violation of the Mississippi Motor Vehicle Safety-Responsibility Law.
(3) Except upon reasonable cause to believe that a driver has violated another traffic regulation or that the driver's motor vehicle is unsafe or not equipped as required by law, a law enforcement officer may not use the verification system to stop a driver for operating a motor vehicle in violation of this act.
SECTION 4. (1) The Department of Public Safety, hereinafter referred to in this section as "department," shall administer and enforce the provisions of Sections 1 through 7 of this act and shall make rules necessary for the administration of the motor vehicle insurance verification system created under Section 2 of this act.
(2) The rules must:
(a) Establish standards and procedures for accessing the system by authorized personnel of the department, the courts, law enforcement personnel, tax collectors of each county and any other entities authorized by the department that are consistent with specifications and standards of the Insurance Industry Committee on Motor Vehicle Administration and other applicable industry standards;
(b) Provide for the suspension of a driver's license when:
(i) A person fails to respond to a written inquiry from the department or its designee concerning the insurance status of a motor vehicle;
(ii) A person misrepresents or intentionally provides false information to the department or its designee regarding the operational status or use of a motor vehicle for which liability insurance is mandatory;
(iii) The department has reason to believe that a motor vehicle owner is not complying with the mandatory liability insurance requirements of the Mississippi Motor Vehicle Safety-Responsibility Law; or
(iv) The department receives a report from a court that a person has been convicted of a violation of the Mississippi Motor Vehicle Safety-Responsibility Law and the suspension of his driving privileges has been ordered;
(c) Provide for hearings upon request of persons aggrieved by orders or acts of the department or the Commissioner of Public Safety under the provisions of Sections 1 through 7 of this act;
(d) Prohibit the reinstatement of a driver's license unless the applicable fines have been paid; and
(e) Provide for periodic insurance data file transfers from insurers to identify motor vehicles that are not covered by an insurance policy and to monitor ongoing compliance with mandatory motor vehicle liability insurance requirements.
(3) The department may adopt additional rules to:
(a) Assist authorized users in interpreting responses received from the motor vehicle insurance verification system and determining the appropriate action to be taken as a result of a response; and
(b) Otherwise clarify system operations and business rules.
SECTION 5. Every owner of a motor vehicle in this state shall comply with the motor vehicle liability insurance coverage in at least the minimum amounts required under Section 63-15-3(j) before that owner may apply for and receive a license tag for a motor vehicle or renew a license tag. The owner must also maintain continuous coverage in at least the minimum amounts required under Section 63-15-3(j) throughout the license period. The response received from the system supersedes an insurance card produced by a motor vehicle owner or operator, and notwithstanding the display of an insurance card by the owner or operator, the owner may be denied a license tag for a motor vehicle or renewal of a license tag based on the verification system's response of noncompliance. The verification system's response of noncompliance shall be obtained by the tax collector through the Mississippi Department of Revenue's title/registration network system. If the owner acquired ownership of the motor vehicle within thirty (30) days before applying for the license tag, then the owner may be granted a license tag notwithstanding the response received from the verification system, but only if the owner provides proof or evidence that he acquired ownership of the motor vehicle within that thirty-day period.
SECTION 6. (1) Sections 1 through 7 of this act shall not apply to any motor vehicle that:
(a) Has commercial auto coverage;
(b) Is qualified for a fleet registration;
(c) Is part of a self-insured corporate or individual fleet registered under Section 27-19-66, or self-insured under Section 63-15-53;
(d) Is included in an insurance binder that has not been entered into the system at the time the verification system is accessed;
(e) Is exempted from the proof of insurance requirement under Section 63-15-4(1); or
(f) Has a gross vehicle weight of sixteen thousand (16,000) pounds or greater.
(2) For the purposes of Sections 1 through 7 of this act, "commercial auto coverage" is defined as any coverage provided to an insured, regardless of number of vehicles or entity covered, under a commercial coverage form and rated from a commercial manual approved by the Department of Insurance. Sections 1 through 7 of this act shall not apply to vehicles insured under commercial auto coverage; however, insurers of such vehicles may participate on a voluntary basis.
SECTION 7. (1) If the owner of a registered motor vehicle fails to have motor vehicle liability insurance in at least the minimum amounts required under Section 63-15-3(j), the Commissioner of Public Safety may suspend his driving privilege and may impose a civil penalty in an amount not less than Fifty Dollars ($50.00) nor more than Five Hundred Dollars ($500.00), as set by the commissioner. If suspended, the driving privilege may not be reinstated by the commissioner until the owner has motor vehicle liability insurance in at least the minimum amounts required under Section 63-15-3(j) and has paid the civil penalties imposed by the commissioner. The person whose driving privilege has been suspended or who has been fined a civil penalty may make a written request, within ten (10) days after receipt of notice of the suspension or civil penalty, to the Department of Public Safety for a hearing and such request shall operate as a stay of any suspension and civil penalty pending the outcome of the hearing. The hearing officer shall review the merits of the suspension and civil penalty and make a determination on their status. Any person whose suspension and civil penalty has been sustained shall have the right to appeal in a court of proper jurisdiction. Civil penalties collected under this subsection shall be deposited into the special fund created under subsection (2) of this section.
(2) (a) There is created in the State Treasury a special fund to be designated as the "Uninsured Motorist Identification Fund." The fund shall consist of monies deposited therein as provided under subsection (1) and monies from any other source designated for deposit into such fund. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited to the credit of the fund; however, any monies in excess of the amount needed to defray the expenses and costs of the verification system created under Section 2 of this act remaining in the fund at the end of a fiscal year shall be transferred to the Motor Vehicle Ad Valorem Tax Reduction Fund created under Section 27-51-105.
(b) Monies in the special fund may be used by the Department of Public Safety, upon appropriation by the Legislature, only for the purpose of defraying expenses and costs for the motor vehicle insurance verification system created under Section 2 of this act. Monies in the fund used for the purposes described in this paragraph (b) shall be in addition to other funds available from any other source for such purposes.
SECTION 8. Section 63-15-4, Mississippi Code of 1972, is amended as follows:
63-15-4. (1) The following vehicles are exempted from the requirements of this section:
(a) Motor vehicles exempted by Section 63-15-5;
(b) Motor vehicles for which a bond or a certificate of deposit of money or securities in at least the minimum amounts required for proof of financial responsibility is on file with the department;
(c) Motor vehicles that are self-insured under Section 63-15-53; and
(d) Implements of husbandry.
(2) (a) Every motor vehicle operated in this state shall have an insurance card maintained in the motor vehicle as proof of liability insurance that is in compliance with the liability limits required by Section 63-15-3(j). The insured parties shall be responsible for maintaining the insurance card in each motor vehicle.
(b) An insurance company issuing a policy of motor vehicle liability insurance as required by this section shall furnish to the insured an insurance card for each motor vehicle at the time the insurance policy becomes effective. Beginning on July 1, 2012, insurers shall furnish commercial auto coverage customers with an insurance card clearly marked with the identifier, "Commercial Auto Insurance" or "Fleet" or similar language, to reflect that the vehicle is insured under a commercial auto policy.
(3) Upon stopping a motor vehicle at a roadblock where all passing motorists are checked as a method to enforce traffic laws or upon stopping a motor vehicle for any other statutory violation, a law enforcement officer, who is authorized to issue traffic citations, shall verify that the insurance card required by this section is in the motor vehicle. However, no driver shall be stopped or detained solely for the purpose of verifying that an insurance card is in the motor vehicle unless the stop is part of such roadblock. If the law enforcement officer uses the verification system created in Section 2 of this act and receives a response from the system verifying that the owner of the motor vehicle has liability insurance in the amounts required under Section 63-15-3(j), then the officer shall not issue a citation under this section notwithstanding any failure to display an insurance card by the owner or operator.
(4) Failure of the owner or the operator of a motor vehicle to have the insurance card in the motor vehicle is a misdemeanor and, upon conviction, is punishable by a fine of Five Hundred Dollars ($500.00) and suspension of driving privilege for a period of one (1) year or until the owner of the motor vehicle shows proof of liability insurance that is in compliance with the liability limits required by Section 63-15-3(j). Fraudulent use of an insurance card shall be punishable in accordance with Section 97-7-10. The funds from such fines shall be deposited in the State General Fund in the State Treasury. However, if such fines are levied in a municipal court, fifty percent (50%) of the funds from such fines shall be deposited in the general fund of the municipality. If such fines are levied in any of the courts of the county, fifty percent (50%) of the funds from such fines shall be deposited in the general fund of the county.
(5) If, at the hearing date or the date of payment of the fine, the motor vehicle owner shows proof of motor vehicle liability insurance in the amounts required by Section 63-15-3(j), the fine shall be reduced to One Hundred Dollars ($100.00). If the owner shows proof that such insurance was in effect at the time of citation, the case shall be dismissed as to the defendant with prejudice and all court costs shall be waived against the defendant.
SECTION 9. Sections 1 through 7 of this act shall stand repealed from and after July 1, 2015.
SECTION 10. This act shall take effect and be in force from and after July 1, 2011, except for Section 5 of this act which shall take effect and be in force from and after July 1, 2012.