1.1                          A bill for an act 
  1.2             relating to insurance; automobile; requiring a premium 
  1.3             discount for seatbelt use; eliminating the mandatory 
  1.4             seatbelt law for adults; amending Minnesota Statutes 
  1.5             2000, sections 65B.482, subdivision 1; 169.686, 
  1.6             subdivision 1; proposing coding for new law in 
  1.7             Minnesota Statutes, chapter 65B. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [65B.286] [SEATBELT USE PREMIUM REDUCTION.] 
  1.10     Subdivision 1.  [PREMIUM REDUCTION.] (a) An insurer shall 
  1.11  provide, in exchange for seatbelt use, a premium reduction of at 
  1.12  least ten percent on the premium for basic economic loss 
  1.13  benefits under section 65B.44 and for uninsured and underinsured 
  1.14  motorist coverages under section 65B.49, subdivision 3a.  The 
  1.15  premium reduction must be based upon the premium for the 
  1.16  coverage limits selected by the insured, rather than on the 
  1.17  premium for the minimum coverage limits required by law.  This 
  1.18  section applies only to policies of private passenger vehicle 
  1.19  insurance, as defined under section 65B.001, subdivision 2. 
  1.20     (b) For policies issued or renewed on or after January 1, 
  1.21  2007, the premium reduction required under paragraph (a) need 
  1.22  not be at least ten percent, but must be actuarially appropriate 
  1.23  and is subject to review by the commissioner for compliance with 
  1.24  that standard. 
  1.25     Subd. 2.  [SEATBELT USE DEFINED.] For purposes of this 
  1.26  section, the insured is eligible for the premium reduction 
  2.1   provided under subdivision 1 for seatbelt use if all insureds, 
  2.2   as defined in section 65B.43, who are age 16 or older, sign a 
  2.3   statement promising to wear a seatbelt whenever occupying a 
  2.4   motor vehicle equipped with seatbelts, and, when driving the 
  2.5   insured vehicle, to assure that each occupant of the insured 
  2.6   vehicle wears a seatbelt if the insured vehicle is equipped with 
  2.7   seatbelts. 
  2.8      Subd. 3.  [EFFECT OF FAILURE TO USE SEATBELTS.] (a) If an 
  2.9   insured is determined to have failed to honor the statement 
  2.10  signed by that insured under subdivision 2, the insurer shall, 
  2.11  with respect to that policy, impose a deductible of $1,000 on 
  2.12  each claim that involves the coverages listed in subdivision 1 
  2.13  as being eligible for the premium reduction, for the remainder 
  2.14  of the policy period, including any claim arising out of the 
  2.15  incident that led to the determination that the insured failed 
  2.16  to honor the statement.  That insured is not eligible to sign a 
  2.17  statement described in subdivision 2 for a period of ten years 
  2.18  after the date of the failure to honor the statement.  The 
  2.19  insurer may also immediately increase the premium for the 
  2.20  remaining term of the policy to the amount charged in the 
  2.21  absence of a statement under subdivision 2. 
  2.22     (b) An insured is considered to have failed to honor the 
  2.23  statement signed under subdivision 2 if the insured: 
  2.24     (1) is convicted of a seatbelt violation; 
  2.25     (2) is involved in an accident in which the evidence 
  2.26  indicates that it is more likely than not that the insured was 
  2.27  not honoring the promise made in subdivision 2; or 
  2.28     (3) is the subject of a notification described in section 
  2.29  169.686, paragraph (c), and the insurer determines after 
  2.30  investigating that it is more likely than not that the insured 
  2.31  was not honoring the promise made in subdivision 2. 
  2.32     Subd. 4.  [STATEMENT ON APPLICATION AND ON RENEWAL NOTICE.] 
  2.33  Each application form and each renewal notice for a motor 
  2.34  vehicle, as defined in section 65B.43, subdivision 2, shall 
  2.35  contain the following statement:  "Seatbelt use reduces 
  2.36  insurance costs.  You may be eligible for a premium discount if 
  3.1   you promise to use seatbelts.  Contact your agent or the company 
  3.2   for details." 
  3.3      Sec. 2.  Minnesota Statutes 2000, section 65B.482, 
  3.4   subdivision 1, is amended to read: 
  3.5      Subdivision 1.  [ISSUANCE OF CARD.] Every obligor 
  3.6   transacting business in this state shall provide an insurance 
  3.7   identification card for each vehicle covered at the time of 
  3.8   initiating each policy of automobile insurance, as defined in 
  3.9   section 65B.14, subdivision 2, and at the time of policy 
  3.10  renewal.  When an insured has five or more vehicles registered 
  3.11  in this state, the obligor may use the designation "all owned 
  3.12  vehicles" on each identification card in lieu of a specified 
  3.13  description.  The card must state:  
  3.14     (1) the insured's name; 
  3.15     (2) the policy number; 
  3.16     (3) the policy dates of coverage; 
  3.17     (4) the make, model, and year of the vehicle being covered; 
  3.18     (5) the vehicle identification number or at least the last 
  3.19  three digits of that number; ~~and~~ 
  3.20     (6) the name and address of the obligor providing coverage; 
  3.21  and 
  3.22     (7) "seatbelt use promise" or "no seatbelt use promise".  
  3.23     Sec. 3.  Minnesota Statutes 2000, section 169.686, 
  3.24  subdivision 1, is amended to read: 
  3.25     Subdivision 1.  [SEAT BELT REQUIREMENT.] (a) A properly 
  3.26  adjusted and fastened seat belt, including both the shoulder and 
  3.27  lap belt when the vehicle is so equipped, shall be worn by: 
  3.28     (1) ~~the driver of a passenger vehicle or commercial motor~~ 
  3.29  ~~vehicle;~~ 
  3.30     ~~(2)~~ a passenger under the age of 15 riding in the front 
  3.31  seat of a passenger vehicle or commercial motor vehicle; and 
  3.32     ~~(3)~~ (2) a passenger riding in any seat of a passenger 
  3.33  vehicle who is older than three but younger than 11 years of age.
  3.34     (b) ~~A person who is 15 years of age or older and who~~ 
  3.35  ~~violates paragraph (a), clause (1) or (2), is subject to a fine~~ 
  3.36  ~~of $25.~~  The driver of the passenger vehicle or commercial motor 
  4.1   vehicle in which the violation occurred is subject to a $25 fine 
  4.2   for a violation of paragraph (a), clause (2) or (3), by a child 
  4.3   of the driver under the age of 15 or any child under the age of 
  4.4   11.  A peace officer may not issue a citation for a violation of 
  4.5   this section or a notification under paragraph (c) unless the 
  4.6   officer lawfully stopped or detained the driver of the motor 
  4.7   vehicle for a moving violation other than a violation involving 
  4.8   motor vehicle equipment.  The department of public safety shall 
  4.9   not record a violation of this subdivision or a notification 
  4.10  under paragraph (c) on a person's driving record. 
  4.11     (c) If a peace officer determines, on the basis of 
  4.12  examination of an insurance identification card required under 
  4.13  section 65B.482, that a driver or other occupant of a motor 
  4.14  vehicle appears to have failed to honor a statement signed under 
  4.15  section 65B.286, subdivision 2, the peace officer may mail or 
  4.16  otherwise transmit a notification of the incident to the 
  4.17  insurance company at the address shown on the insurance 
  4.18  identification card.  The peace officer shall not report the 
  4.19  notification to the commissioner of public safety.  Failure to 
  4.20  honor a statement signed under section 65B.286, subdivision 2, 
  4.21  is not a crime, petty misdemeanor, or other violation of law. 
  4.22     Sec. 4.  [EFFECTIVE DATE.] 
  4.23     Sections 1 to 3 are effective January 1, 2002, and sections 
  4.24  1 and 2 apply to policies issued or renewed on or after that 
  4.25  date.