1.1                          A bill for an act 
  1.2             relating to motor vehicles; establishing an uninsured 
  1.3             motorist identification database program; prescribing 
  1.4             a criminal penalty; amending Minnesota Statutes 1996, 
  1.5             section 168.013, by adding a subdivision; proposing 
  1.6             coding for new law in Minnesota Statutes, chapter 169. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 168.013, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 14a.  [UNINSURED MOTORIST IDENTIFICATION 
  1.11  SURCHARGE.] In addition to the taxes imposed by this section, an 
  1.12  additional annual surcharge of $1 shall be imposed on each 
  1.13  vehicle, as defined in section 169.791, subdivision 1, paragraph 
  1.14  (h), registered.  
  1.15     All revenue generated by this surcharge shall be deposited 
  1.16  in the account created in section 169.7995.  
  1.17     Sec. 2.  [169.7991] [DEFINITIONS.] 
  1.18     Subdivision 1.  [TERMS.] For purposes of sections 169.7991 
  1.19  to 169.7995, the terms in this section have the meanings given 
  1.20  them. 
  1.21     Subd. 2.  [ACCOUNT.] "Account" means the uninsured motorist 
  1.22  identification restricted account created in section 169.7995. 
  1.23     Subd. 3.  [DATABASE.] "Database" means the uninsured 
  1.24  motorist identification database created in section 169.7992. 
  1.25     Subd. 4.  [DESIGNATED AGENT.] "Designated agent" means the 
  1.26  third party the department of public safety contracts with under 
  2.1   section 169.7992. 
  2.2      Sec. 3.  [169.7992] [UNINSURED MOTORIST IDENTIFICATION 
  2.3   DATABASE PROGRAM.] 
  2.4      Subdivision 1.  [CREATION; DUTIES; RULEMAKING.] An 
  2.5   uninsured motorist identification database program is created to 
  2.6   establish an uninsured motorist identification database to 
  2.7   verify compliance with motor vehicle owner's or operator's 
  2.8   security requirements under section 65B.48. 
  2.9      Subd. 2.  [ADMINISTRATION.] The program shall be 
  2.10  administered by the department of public safety with the 
  2.11  assistance of the designated agent and the division of driver 
  2.12  and vehicle services. 
  2.13     Subd. 3.  [DESIGNATED AGENT.] (a) The department of public 
  2.14  safety shall contract with a third party to track compliance 
  2.15  with the owner's or operator's security requirements under 
  2.16  section 65B.48. 
  2.17     (b) The contract may not obligate the department to pay the 
  2.18  third party more money than is available in the account. 
  2.19     (c) The third party under contract under this section is 
  2.20  the department's designated agent, and shall develop and 
  2.21  maintain a computer database from the information provided by 
  2.22  insurers under section 169.796 and the division of driver and 
  2.23  vehicle services.  
  2.24     (d) The database must be developed and maintained according 
  2.25  to guidelines established by the department so that state and 
  2.26  local law enforcement agencies can efficiently access the 
  2.27  database. 
  2.28     Subd. 4.  [DUTIES OF DESIGNATED AGENT.] With information 
  2.29  provided by the department and the division of driver and 
  2.30  vehicle services, the designated agent shall, at least monthly: 
  2.31     (1) update the database with the motor vehicle insurance 
  2.32  information provided by the insurers according to section 
  2.33  169.796; and 
  2.34     (2) compare all current motor vehicle registrations against 
  2.35  the database. 
  2.36     Subd. 5.  [RULES.] The division of driver and vehicle 
  3.1   services shall provide the designated agent with the name, date 
  3.2   of birth, and address of all persons on the driver license 
  3.3   database. 
  3.4      The department shall make rules and develop procedures in 
  3.5   cooperation with the division of driver and vehicle services to 
  3.6   use the database for the purpose of administering and enforcing 
  3.7   this section.  The rules and procedures must be adopted by 
  3.8   January 1, 1998.  
  3.9      Sec. 4.  [169.7993] [TESTING.] 
  3.10     Subdivision 1.  [REQUIREMENT.] The department and the 
  3.11  division of driver and vehicle services shall direct that tests 
  3.12  be conducted by the designated agent, including taking random 
  3.13  samples, to determine the accuracy of the comparison results 
  3.14  under section 169.7992 indicating uninsured motor vehicles. 
  3.15     Subd. 2.  [NOTICE TO OWNER.] If the comparison under 
  3.16  section 169.7992 shows that a motor vehicle is not insured for 
  3.17  three consecutive months, the division of driver and vehicle 
  3.18  services shall direct that the designated agent provide notice 
  3.19  to the owner of the motor vehicle that the owner has 45 days to 
  3.20  provide: 
  3.21     (i) proof of owner's or operator's security in a form 
  3.22  allowed under section 65B.48; or 
  3.23     (ii) proof of exemption from the owner's or operator's 
  3.24  security requirements. 
  3.25     Subd. 3.  [ADDITIONAL NOTICE.] If an owner of a motor 
  3.26  vehicle fails to provide satisfactory proof of owner's or 
  3.27  operator's security to the designated agent, the division of 
  3.28  driver and vehicle services may direct the designated agent to 
  3.29  provide additional notices. 
  3.30     Subd. 4.  [EFFECT OF SECTION.] This section does not affect 
  3.31  other actions or penalties that may be taken or imposed for 
  3.32  violation of the owner's and operator's security requirements of 
  3.33  this chapter. 
  3.34     Sec. 5.  [169.7994] [DISCLOSURE OF INSURANCE INFORMATION; 
  3.35  PENALTY.] 
  3.36     Subdivision 1.  [RESTRICTION.] Information in the database 
  4.1   established under section 169.7992 provided by a person to the 
  4.2   designated agent is considered to be the property of the person 
  4.3   providing the information.  The information may not be disclosed 
  4.4   from the database under chapter 13, or otherwise, except as 
  4.5   follows: 
  4.6      (1) for the purpose of investigating, litigating, or 
  4.7   enforcing the owner's or operator's security requirement under 
  4.8   section 65B.48, the designated agent shall verify insurance 
  4.9   through the state computer network for a state or local 
  4.10  government agency; 
  4.11     (2) for the purpose of investigating, litigating, or 
  4.12  enforcing the owner's or operator's security requirement under 
  4.13  section 65B.48, the designated agent shall, upon request, issue 
  4.14  to any state or local government agency a certificate 
  4.15  documenting the insurance status, according to the database, of 
  4.16  a specific individual or motor vehicle for the time period 
  4.17  designated by the government agency; and 
  4.18     (3) upon request, the department shall disclose whether or 
  4.19  not a person is an insured individual to: 
  4.20     (i) that individual; 
  4.21     (ii) the parent or legal guardian of that individual if the 
  4.22  individual is an unemancipated minor; 
  4.23     (iii) the legal guardian of that individual if the 
  4.24  individual is legally incapacitated; 
  4.25     (iv) a person who has power of attorney from the insured 
  4.26  individual; 
  4.27     (v) a person who submits a notarized release from the 
  4.28  insured individual dated no more than 90 days before the date 
  4.29  the request is made; or 
  4.30     (vi) a person suffering loss or injury in a motor vehicle 
  4.31  accident in which the insured individual is involved, but only 
  4.32  as part of an accident report as authorized in section 169.09. 
  4.33     Subd. 2.  [CRIMINAL PENALTY.] A person who knowingly 
  4.34  releases or discloses information from the database for a 
  4.35  purpose other than those authorized in this section or to a 
  4.36  person who is not entitled to it is guilty of a gross 
  5.1   misdemeanor. 
  5.2      Subd. 3.  [INSURER NONLIABILITY.] An insurer is not liable 
  5.3   to any person for complying with this section by providing 
  5.4   information to the designated agent. 
  5.5      Subd. 4.  [STATE AND DEPARTMENT NONLIABILITY.] Neither the 
  5.6   state nor the department's designated agent is liable to any 
  5.7   person for gathering, managing, or using the information in the 
  5.8   database as provided in section 169.7992 and this section. 
  5.9      Sec. 6.  [169.7995] [RESTRICTED ACCOUNT.] 
  5.10     Subdivision 1.  [CREATION.] There is created within the 
  5.11  general fund an account known as the "uninsured motorist 
  5.12  identification restricted account." 
  5.13     Subd. 2.  [FUNDING.] The account consists of money 
  5.14  generated from the following revenue sources: 
  5.15     (1) money received by the state under section 168.013, 
  5.16  subdivision 14a, the uninsured motorist identification 
  5.17  surcharge; and 
  5.18     (2) appropriations made to the account by the legislature. 
  5.19     Subd. 3.  [INTEREST.] The account shall earn interest.  All 
  5.20  interest earned on account money must be deposited into the 
  5.21  account. 
  5.22     Subd. 4.  [APPROPRIATIONS FROM ACCOUNT.] Money shall be 
  5.23  appropriated from the account by the legislature to the 
  5.24  department to: 
  5.25     (1) fund the contract with the designated agent; and 
  5.26     (2) offset the costs to the state and local law enforcement 
  5.27  agencies of verifying insurance. 
  5.28     Sec. 7.  [REVISOR INSTRUCTION.] 
  5.29     The revisor of statutes shall recodify Minnesota Statutes, 
  5.30  section 169.7995 as section 169.7998.