MISSISSIPPI LEGISLATURE
2014 Regular Session
To: Insurance
By: Senator(s) Clarke, Jackson (11th)
AN ACT TO REENACT SECTIONS 63-16-1 THROUGH 63-16-13, MISSISSIPPI CODE OF 1972, WHICH CREATE THE PUBLIC SAFETY VERIFICATION AND ENFORCEMENT ACT; TO AMEND REENACTED SECTION 63-16-3, MISSISSIPPI CODE OF 1972, TO REVISE THE DATE REQUIRED FOR THE PUBLIC SAFETY VERIFICATION SYSTEM TO BE INSTALLED AND OPERATIONAL; TO AMEND REENACTED SECTION 63-16-7, MISSISSIPPI CODE OF 1972, TO AMEND REENACTED SECTION 63-16-9, MISSISSIPPI CODE OF 1972, TO ADD THE MISSISSIPPI INSURANCE DEPARTMENT TO THE LIST OF STATE AGENCIES WITH REGULATORY AND ENFORCEMENT POWERS REGARDING THE PUBLIC SAFETY VERIFICATION ACT; TO AMEND REENACTED SECTION 63-16-13, MISSISSIPPI CODE OF 1972, TO CLARIFY THAT AN APPEAL UNDER THE ACT SHALL BE MADE TO THE COUNTY OR CIRCUIT COURT WHERE THE VIOLATION OCCURRED; TO AMEND SECTION 63-16-15, MISSISSIPPI CODE OF 1972, TO EXTEND THE REPEALER ON THE PUBLIC SAFETY VERIFICATION ACT; TO AMEND SECTION 63-15-4, MISSISSIPPI CODE OF 1972, TO MAKE A TECHNICAL CORRECTION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 63-16-1, Mississippi Code of 1972, is reenacted as follows:
63-16-1. This chapter shall be known as the "Public Safety Verification and Enforcement Act."
SECTION 2. Section 63-16-3, Mississippi Code of 1972, is reenacted and amended as follows:
63-16-3. (1) The
Department of Public Safety, hereinafter referred to in this * * * chapter as
"department," in cooperation with the Commissioner of Insurance and
the Department of Revenue, shall establish an accessible common communication
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 in
cooperation with the Department of Revenue * * * shall contract on a monthly
fixed fee basis 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 Department of Revenue, the courts, law enforcement personnel, county tax collectors, and other entities authorized by the department or the Department of Revenue under the provisions of Section 63-16-7;
(d) Be able to interface with existing department and Department of Revenue systems;
(e) Be able to provide real-time responses to verification requests from the department's system as described in paragraph (a) of this section;
(f) Be able to provide a file that is updated on at least a daily basis to be used for verification by the Department of Revenue and the tax collector until the Department of Revenue's system is capable of handling real-time responses as described in paragraph (a) of this section;
( * * *g) Be able to be accessed by
authorized users via a secure web browser, including a method for vehicle
owners to check insurance;
( * * *h) 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 on at least a monthly basis using the data file format set
forth in the Insurance Data Transfer Guide of the Insurance Industry Committee
on Motor Vehicle Administration to be used for data matching between the
insurance data and the registration data and to capture policy numbers to
optimize the accuracy of the system, and not to be used as a database for
verification except for low-volume insurers;
(i) Make available to the insurers and the state agencies the data matching and error files;
( * * *j) Provide a means by which a
low-volume * * *
insurer, meaning an insurer with less than five hundred (500) policies in
force in the state, that * * * is unable to deploy an online
interface with the system can report insurance policy data to the department,
the Department of Revenue or their designee for inclusion in the system;
( * * *k) 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;
( * * *l) Distinguish motor vehicles that are
exempt from the provisions of this chapter;
( * * *m) 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 or the Department of
Revenue; and
( * * *n) Be installed and operational not
later than July 1, * * * 2015,
following an appropriate testing period and notice to the insurers of
not less than six (6) months.
(4) Every insurer shall
cooperate with the department * * *, the Department of Revenue, and
the Department of Insurance in establishing and maintaining the system and
shall report data and provide access to motor vehicle liability policy
status information via electronic services to verify liability coverage as
described in Section 63-16-3(3)(a) 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 system shall not be used to determine and take any action against any owner or operator of a motor vehicle except upon the course of a traffic stop, roadblock or accident investigation as described in Section 63-16-5 or upon renewing or renewing a registration as described in Section 63-16-9.
(6) The Commissioner of Insurance shall be empowered to impose sanctions upon any insurance company that does not comply with this chapter.
(7) Information contained in the verification system shall not be considered a public record.
(8) Insurers and authorized users of the verification system shall be immune from civil and administrative liability for good-faith efforts to comply with the terms of this chapter.
SECTION 3. Section 63-16-5, Mississippi Code of 1972, is reenacted as follows:
63-16-5. (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 63-16-3 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 chapter.
SECTION 4. Section 63-16-7, Mississippi Code of 1972, is reenacted and amended as follows:
63-16-7. (1) * * * For each of their
respective areas of responsibility, the department, * * * the Department of Revenue, and the
Department of Insurance shall administer and enforce the provisions of this
chapter, as applicable, and shall make rules * * * necessary for the
administration of the motor vehicle insurance verification system created under
Section 63-16-3. The initial rules shall be established prior to execution
of a contract with the selected vendor(s).
(2) The rules must:
(a) Establish standards and procedures for accessing the system by authorized personnel of the department, the Department of Revenue, the courts, law enforcement personnel, tax collectors of each county and any other entities authorized by the department or the Department of Revenue 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 * * * denial of a vehicle
registration renewal and/or the suspension of a driver's license
when required by this chapter;
(c) Prohibit the
reinstatement of a * * * driver's license unless the applicable * * * penalties have been paid; and
(d) For certain companies that are unable to produce responses in real time pursuant to Section 63-16-3(3)(a), provide for periodic insurance data file transfers from insurers on at least a monthly basis to identify motor vehicles that are not covered by an insurance policy and to monitor ongoing compliance with mandatory motor vehicle liability insurance requirements.
(e) Require insurers to report all available data elements under Section 63-16-3(3)(e).
(3) The department * * *, the Department of Revenue,_and
the Department of Insurance may each 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. Section 63-16-9, Mississippi Code of 1972, is reenacted and amended as follows:
63-16-9. 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 * * * renew a registration.
The owner must also maintain continuous coverage in at least the minimum
amounts required under Section 63-15-3(j) throughout the registration period.
The verification system shall be used at registration renewal to
determine compliance with this section and 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 shall be denied * * * renewal
of a registration based on the verification system's response of noncompliance. * * * Responses
from the verification system * * * shall be made to the tax
collector * * *
as part of the Department of Revenue's title/registration network
system. If the owner is applying for the initial registration of a motor
vehicle, then the owner may be granted a registration notwithstanding the
response received from the verification system.
SECTION 6. Section 63-16-11, Mississippi Code of 1972, is reenacted as follows:
63-16-11. (1) This chapter 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 this chapter, "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. This chapter shall not apply to vehicles insured under commercial auto coverage; however, insurers of such vehicles may participate on a voluntary basis.
SECTION 7. Section 63-16-13, Mississippi Code of 1972, is reenacted and amended as follows:
63-16-13. (1) If
the owner of a motor vehicle being operated on the public roads, streets or
highways of the State of Mississippi or registered in the State of Mississippi
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 * * * or a court of
proper jurisdiction shall suspend the * * * owner's or the
operator's driving privilege and a court of proper jurisdiction shall
impose and collect a civil penalty in an amount of Three Hundred Dollars
($300.00) upon a first * * * violation, in an amount of Four Hundred Dollars
($400.00) upon a second * * * conviction violation and in an amount of Five Hundred
Dollars ($500.00) upon a third or subsequent * * * violation. If suspended,
the * * *
driving privilege shall not be reinstated 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. Any person shall have the right to
appeal any suspension or civil penalty under this section in * * * the county or circuit court * * * where the violation
occurred. If the matter is appealed and a violation is found, then the
court shall not reduce, suspend or suspend the execution of any penalty imposed
under the provisions of this subsection, in whole or in part. It shall be the
duty of the county prosecuting attorney, an attorney employed under the
provisions of Section 19-3-49, or in the event there is no such prosecuting
attorney for the county, the duty of the district attorney to represent the
state in any appeal held under this subsection. Civil penalties collected
under this subsection shall be deposited into the special fund created under
subsection (2) of this section. However, if the * * * violation resulting in the
civil penalty occurred within the corporate limits of a municipality, One
Hundred Dollars ($100.00) of the funds from such civil penalty shall be
deposited in the general fund of that municipality where the violation
occurred. If the * * * violation resulting in the civil penalty
did not occur within the corporate limits of a municipality, One Hundred
Dollars ($100.00) of the funds from such civil penalty shall be deposited in
the general fund of that county where the violation occurred. A person * * * found in violation
under this subsection (1) shall not be convicted of a criminal offense under
Section 63-15-4(4) arising from the same incident.
(2) (a) There is created
in the State Treasury a special fund to be designated as the "Uninsured
Motorist Identification Fund * * *," which shall be administered by the
department. The fund shall consist of monies deposited therein as provided
under subsection (1) of this section 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, one-half (1/2) of any monies in
excess of the amount * * * of the expenses and costs of the
verification system created under Section 63-16-3 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, and one-half (1/2) of any
monies in excess of the amount * * * of the expenses and
costs of the verification system created under Section 63-16-3 remaining in the
fund at the end of a fiscal year shall be transferred to the Mississippi Trauma
Care Systems Fund created under Section 41-59-75.
(b) * * * The Legislature
may, if necessary, appropriate funds to the department and the Department of
Revenue to pay the costs for the verification system, including, but not
limited to, the monthly fixed fee payable to the vendor(s) and the costs for interfacing
and modifying existing department and Department of Revenue systems and for
associated equipment and software. Monies in the special fund shall be used to
reimburse the State General Fund for expenses and costs for the motor
vehicle insurance verification system created under Section 63-16-3. 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 63-16-15, Mississippi Code of 1972, is amended as follows:
63-16-15. Sections 63-16-1
through 63-16-13 shall stand repealed from and after July 1, * * * 2020.
SECTION 9. 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. The insurance card may be furnished in either paper or electronic format as chosen by the insured. Acceptable electronic formats include display of electronic images on a cellular phone or any other type of electronic device. Beginning on July 1, 2013, 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 63-16-3 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. A person convicted
of a criminal offense under this subsection (4) shall not be * * * found in violation of a civil
violation under Section 63-16-13(1) arising from the same incident.
(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 10. This act shall take effect and be in force from and after July 1, 2014, and shall stand repealed from and after June 30, 2014.