MISSISSIPPI LEGISLATURE
2017 Regular Session
To: Insurance; Appropriations
By: Senator(s) Burton
AN ACT TO REENACT SECTIONS 63-16-1 THROUGH 63-16-15, 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 REQUIRE THE VERIFICATION SYSTEM TO HAVE THE CAPABILITY TO SCAN TRAFFIC CITATIONS TO VERIFY LIABILITY INSURANCE COVERAGE ON THE DATE OF CITATION; TO AMEND REENACTED SECTION 63-16-5, MISSISSIPPI CODE OF 1972, TO REQUIRE THE DEPARTMENT OF PUBLIC SAFETY TO SCAN ANY TRAFFIC CITATION AND ACCIDENT REPORT TO VERIFY LIABILITY INSURANCE COVERAGE ON THE DATE THE TRAFFIC ACCIDENT OCCURRED; TO AMEND REENACTED SECTION 63-16-15, MISSISSIPPI CODE OF 1972, TO EXTEND THE DATE OF REPEAL ON THE ACT; TO CREATE NEW SECTION 63-15-9, MISSISSIPPI CODE OF 1972, TO REQUIRE MOTOR VEHICLE LIABILITY INSURANCE COVERAGE IN AT LEAST THE MINIMUM AMOUNTS REQUIRED BY LAW BEFORE A MOTOR VEHICLE OWNER MAY RENEW A REGISTRATION; TO BRING FORWARD SECTION 63-15-4, MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF POSSIBLE AMENDMENT; 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 section as "department," in cooperation with the Commissioner of Insurance and the Department of Revenue, shall establish an accessible common carrier-based motor vehicle insurance verification system to verify the compliance of a motor vehicle with motor vehicle liability policy requirements under the Mississippi Motor Vehicle Safety-Responsibility Law.
(2) The department, in cooperation with the Department of Revenue if applicable, 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, and other entities authorized by the department under the provisions of Section 63-16-7;
(d) Be able to interface with existing department systems;
(e) Be able to be accessed by authorized users via a secure web browser;
(f) Not more often than every thirty (30) days, receive insurance information from insurers under specifications and standards set forth in paragraph (a) of this subsection or other data file formats as approved by the department to identify motor vehicle insurance policy information; however, no insurer shall be required to provide information in a format other than those set forth by the Insurance Industry Committee on Motor Vehicle Administration "Insurance Data Transfer Guide," as amended;
(g) 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 their designee for inclusion in the system;
(h) 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;
(i) Distinguish motor vehicles that are exempt from the provisions of this chapter;
(j) 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; * * *
(k) Be capable of scanning traffic citations and accident reports by the Department of Public Safety to verify liability insurance coverage in at least the minimum amounts required under Section 63-15-3(j) on the date the traffic citation was issued; and
( * * *l) Be installed and operational not
later than March 1, 2016, followed by an appropriate testing period of not less
than six (6) months.
(4) Every insurer shall cooperate with the department and the Insurance Department in establishing and maintaining the system and shall provide motor vehicle liability policy status and information to verify liability coverage for a motor vehicle insured by that company that is registered in this state.
SECTION 3. Section 63-16-5, Mississippi Code of 1972, is reenacted and amended 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 operator, and notwithstanding the display of an insurance card by the operator, the law enforcement officer may issue a complaint and notice to appear to the operator for a violation of the Mississippi Motor Vehicle Safety-Responsibility Law. A law enforcement officer may exercise discretion in issuing a citation during the first sixty (60) days after proof of temporary insurance is issued by an insurance company, if the verification system shows that the insured's policy is expired and the operator provides proof of insurance with a new insurance company or a new insurance card.
(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.
(4) The department may scan any traffic citation and accident report to verify whether a motor vehicle was covered by a valid motor vehicle liability policy in at least the minimum amounts required under Section 63-15-3(j) on the date the traffic accident occurred. If such insurance is not verified, the department may issue a complaint and notice to appear for a violation of the Mississippi Motor Vehicle Safety-Responsibility Law.
SECTION 4. Section 63-16-7, Mississippi Code of 1972, is reenacted as follows:
63-16-7. (1) The Department of Public Safety, hereinafter referred to in this section as "department," 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.
(2) The rules must:
(a) Establish standards and procedures for accessing the system by authorized personnel of the department, the courts, law enforcement personnel 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 required by this chapter;
(c) Prohibit the reinstatement of a driver's license unless the applicable fines have been paid; and
(d) Provide for insurance information from insurers, not more often than every thirty (30) days, to identify motor vehicle insurance policy information; however, no insurer shall be required to provide such information in a format other than those set forth by the Insurance Industry Committee on Motor Vehicle Administration "Insurance Data Transfer Guide," as amended.
(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. 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 6. Section 63-16-13, Mississippi Code of 1972, is reenacted as follows:
63-16-13. (1) If the operator 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 has been found failing to have motor vehicle liability insurance in at least the minimum amounts required under Section 63-15-3(j), a court of proper jurisdiction shall suspend the operator's driving privilege and shall impose 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 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 operator 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 and driver's license reinstatement fees imposed by the Department of Public Safety. Any person shall have the right to appeal any suspension or civil penalty under this section in a court of proper jurisdiction. 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 appeal of such civil penalty would be under the proper jurisdiction of a municipal court, One Hundred Dollars ($100.00) of the funds from such civil penalty shall be deposited in the general fund of that municipality. If the appeal of such civil penalty would be under the proper jurisdiction of any of the courts of a county, One Hundred Dollars ($100.00) of the funds from such civil penalty shall be deposited in the general fund of that county. A person convicted of a civil 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." 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 needed to defray 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 needed to defray 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) 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 63-16-3. In addition, at any time during a fiscal year, if the Department of Public Safety determines that funds in the Law Enforcement Officers and Fire Fighters Death Benefits Trust Fund created under Section 45-2-1 are insufficient, the department may request the State Fiscal Officer to transfer funds from the Uninsured Motorist Identification Fund. The State Fiscal Officer may make an appropriate transfer if he determines that the funds in the Law Enforcement Officers and Fire Fighters Death Benefits Trust Fund are insufficient and the funds in the Uninsured Motorist Identification Fund will be sufficient for defraying the 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 7. Section 63-16-15, Mississippi Code of 1972, is reenacted and amended as follows:
63-16-15. Sections 63-16-1
through 63-16-13 shall stand repealed from and after July 1, * * * 2022.
SECTION 8. The following shall be codified as Section 63-16-9, Mississippi Code of 1972:
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 for a motor vehicle. 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 Department of Revenue shall promulgate rules and regulations necessary to enforce this section.
SECTION 9. Section 63-15-4, Mississippi Code of 1972, is brought forward 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 a motor vehicle liability insurance policy that covers the vehicle and is in compliance with the liability limits required by Section 63-15-3(j). The insured parties shall be responsible for maintaining the insurance on 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 or is displayed by electronic image on a cellular phone or other type of electronic device. However, no driver shall be stopped or detained solely for the purpose of verifying that the motor vehicle is covered by liability insurance in the amounts required under Section 63-15-3(j) 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, or to display the insurance card by electronic image on a cellular phone or other type of electronic device, 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 convicted 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.
(6) No law enforcement officer may access any function, feature or other electronic image on a person's cellular phone or other type of electronic device when enforcing the provisions of this section except for the electronic image of an insurance card shown to the officer.
SECTION 10. This act shall take effect and be in force from and after July 1, 2017; provided, however, that Section 8 of this act shall take effect and be in force from and after July 1, 2018.