HB1797 Revises the Motorist Insurance Identification Database Law, revises motor vehicle provisions, and authorizes several new specialized license plates.
Sponsor: Gratz, William (Bill) (113) Effective Date:00/00/0000
CoSponsor: Gaw, Steve (22) LR Number: 3914S.14F
Last Action: 07/12/2000 - Approved by Governor (G)
07/12/2000 - Delivered to Secretary of State
SS HS HCS HB 1797
Next Hearing:Hearing not scheduled
Calendar:BILLS IN CONFERENCE
Position on Calendar:016
ACTIONS HEARINGS CALENDAR
BILL SUMMARIES BILL TEXT
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Available Bill Summaries for HB1797 Copyright(c)
* Truly Agreed * Senate Committee Substitute * Perfected * Committee * Introduced

Available Bill Text for HB1797
* Truly Agreed * Senate Substitute * Perfected * Committee * Introduced *

BILL SUMMARIES

TRULY AGREED

SS HS HCS HB 1797 -- MOTOR VEHICLES

This bill makes several changes to laws relating to motor
vehicles.

ACCESS TO MOTOR VEHICLE AND DRIVER'S LICENSE RECORDS

Personal information in motor vehicle and driver's license
records will be closed rather than open to the public.  Current
law presumes the records are open, unless an individual requests
his or her information be kept private.  The records will be
open for specified purposes, including law enforcement.  The
bill also eliminates the sale for bulk distribution of motor
vehicle and driver's license records by the Department of
Revenue for surveys, marketing, and solicitations and repeals a
redundant section of law relating to driver's license records.

ONLINE LICENSE RENEWAL AND STATE TAX PAYMENT SYSTEMS

The Department of Revenue is required to design and implement by
January 1, 2002, a motor vehicle license renewal system in
counties where personal property tax records are accessible via
computer and when proof of motor vehicle liability insurance,
safety inspections, and emissions inspections (where required)
are verifiable by computer.

Also required, beginning January 1, 2002, is an online system
for filing and paying Missouri state taxes through the
Department of Revenue's web site.

PERSONAL PROPERTY TAXES FOR VEHICLE REGISTRATION

The bill updates the law regarding showing proof of paid
personal property tax; it requires a person to submit proof of
payment of these taxes for the prior 2 years, since registration
renewals will be every 2 years, and repeals a redundant section
of law relating to proof of paid personal property tax.

SPECIAL LICENSE PLATES

Several new special license plates are created, including Bronze
Star; Combat Medic; Gulf War Veteran; Distinguished Flying
Cross; Missouri Remembers (prisoners of war and missing-in--
action); American Legion emblem; The Ancient Arabic Order,
Nobles of the Mystic Shrine of North America (Shriners) emblem;
and The Wilson's Creek National Battlefield Foundation emblem.
When a person applies for a military license plate, the
applicant will have the opportunity to contribute $10 to the
World War II Memorial Trust Fund, which the bill establishes.
The trust fund will be used to pay for a portion of the National
World War II Memorial that will be located on the National Mall
in Washington, D.C., where a site was dedicated on November 11,
1995.

INTERMEDIATE DRIVER'S LICENSE

The Director of the Department of Revenue is required to deny an
application for a full driver's license until the person has had
no traffic convictions with points assessed for 12 months prior
to application or until the person is eligible to apply for a 6--
year driver's license.  The intermediate driver's license will
expire when the licensee is eligible and receives a full
driver's license as prescribed by law.

POINTS ASSESSMENT FOR VIOLATIONS ON FEDERAL PROPERTY

The bill allows moving violations and intoxication-related
traffic offenses occurring on federal property to be assigned
points under the state system.

MOTORIST INSURANCE DATABASE

The bill makes several changes to the Motorist Insurance
Database Law, including creating a fund financed by 6% of the
net general revenue portion of the insurance premiums tax.  The
Department of Revenue is authorized by current law to contract
with a third party to develop and maintain the database, will
monitor the operation and performance of the database, and will
submit a report to the General Assembly by January 15, instead
of December 31, of the year following the third complete year of
implementation.

Current law requires notification of owners who have not
maintained financial responsibility for 2 consecutive months
that their vehicle registrations will be suspended if they do
not show proof of insurance within 30 days of the mailing.  The
bill exempts from such notification owners of fleet or rental
vehicles insured by commercial line policies.  Notice will be
sent by first class instead of by certified mail.  The director
is prohibited from suspending registrations for motor vehicles
which were inoperable or being stored and not operated on the
date in question.

The bill requires, before the seventh working date of each
month, that policies in effect on the last day of the preceding
month be reported to the database manager.  Current law requires
all licensed insurance companies to provide a record of all
policies in effect on that date and to provide a record of each
policy issued, canceled, terminated, suspended, or revoked as of
that date during the previous month.  This reporting requirement
has not yet gone into effect, and the bill delays the reporting
start date from March 1, 2001, to March 1, 2003.

Current law relating to the implementation of the Motorist
Insurance Database and notification of noncompliance is due to
go into effect on January 1, 2001.  The bill delays to July 1,
2002, the effective date of current law as well as the new
provisions, including database funding and exemptions from
notification and suspension.  The expiration date of the
provisions is extended from January 1, 2004, to June 30, 2007.

ELECTRONIC FILING OF INSURANCE CERTIFICATES

The bill also requires the Division of Motor Carrier and
Railroad Safety in the Department of Economic Development to
make rules permitting electronic filing of insurance
certificates by insurance companies.  The division is authorized
to permit confirmation of coverage through national
clearinghouses or private databases and to make rules pertaining
to the acceptance of proof of insurance from out-of-state
insurance companies.

SAMPLING INFORMATION COLLECTION

The Director of the Department of Revenue is authorized, as of
January 1, 2001, to require insurers to submit specified
information for sampling purposes to ensure compliance with
financial responsibility requirements.  Insurance companies will
report policy issuance, non-renewal, and cancellation
information as prescribed by rule.  The information is not
considered a public record but will be disclosed upon request of
certain persons or agencies for specific purposes.  The bill
provides an administrative fine of up to $500 per day for
knowing noncompliance with the reporting requirement.

DRIVING PRIVILEGE SUSPENSION

When an individual's driving privilege has been suspended for
failing to maintain financial responsibility, the director is
authorized to require the individual to file some form of high--
risk insurance to terminate the suspension only in cases
involving a motor vehicle accident where one or more parties
were uninsured.  This provision will become effective on March
1, 2001.


PERFECTED

HS HCS HB 1797 -- MOTORIST INSURANCE IDENTIFICATION DATABASE
(Gratz)

This substitute makes several changes to the Motorist Insurance
Identification Database Law.  Owners of inoperable or stored
vehicles are exempt from the provisions requiring maintenance of
financial responsibility.  The substitute also creates the
Motorist Insurance Identification Database Fund.  Six percent of
revenues derived from the insurance premiums tax will be
credited to this fund for the purpose of funding the motorist
insurance identification database.

The Department of Revenue is authorized by August 1, 2000,
instead of January 1, 2001, to contract with a designated agent
to monitor compliance with the requirements of the chapter.  The
department will review the operation and performance of the
database and submit a report to the General Assembly by January
15, instead of December 31, of the year following the third
complete year of implementation.

Current law requires the designated agent to notify owners who
have not maintained financial responsibility for 2 consecutive
months that their vehicle registrations will be suspended if
they do not show proof of insurance within 30 days of the
mailing.  The substitute exempts from such notification owners
of fleet or rental vehicles and authorizes the Director of the
Department of Revenue to make rules governing the notification
provisions.  Notice of suspension of motor vehicle registration
due to noncompliance with insurance requirements will be sent by
first class instead of by certified mail.

The substitute also prohibits the director from suspending
registrations of owners who satisfactorily establish that the
motor vehicle was inoperable or being stored and not operated on
the date proof of financial responsibility is required.

Current law requires that by March 1, 2001, all licensed
insurance companies provide a record of all policies in effect
on that date and provide before the seventh working day of each
month a record of each policy issued, canceled, terminated,
suspended, or revoked during the previous month.  The substitute
only requires reporting the policies in effect beginning March
1, 2001, before the seventh working day of each month.

The substitute corrects conflicting effective dates in current
law; moves up the effective date from January 1, 2001, to August
1, 2000; and extends the expiration date to June 30, 2005.

The substitute also requires the Division of Motor Carrier and
Railroad Safety in the Department of Economic Development to
make rules permitting electronic filing of insurance
certificates by insurance companies.  The division is authorized
to permit confirmation of coverage through national
clearinghouses or private databases and to make rules pertaining
to the acceptance of proof of insurance from out-of-state
insurance companies.

FISCAL NOTE:  Estimated Net Income to Motorist Insurance
Identification Database Fund of $8,748,066 in FY 2001, FY 2002,
and FY 2003.  Estimated Net Cost Avoidance to Highway Fund of
$2,220,075 in FY 2001, $900,900 in FY 2002, and $643,500 in FY
2003.  Estimated Net Cost to General Revenue Fund of $4,404,171
in FY 2001, $4,406,323 in FY 2002, and $4,407,138 in FY 2003.
Estimated Net Effect on County Foreign Insurance Fund of $0 in
FY 2001, FY 2002, and FY 2003.


COMMITTEE

HCS HB 1797 -- MOTORIST INSURANCE IDENTIFICATION DATABASE

SPONSOR:  O'Toole (Gratz)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Miscellaneous Bills and Resolutions by a vote of 14 to 0.

This substitute makes several changes to the current Motorist
Insurance Identification Database Law.  Owners of inoperable or
stored vehicles are exempt from the provisions requiring
maintenance of financial responsibility.  The substitute also
creates the Motorist Insurance Identification Database Fund.
Six percent of revenues derived from the insurance premiums tax
will be credited to this fund for the purpose of funding the
motorist insurance identification database.

The Department of Revenue is authorized by August 1, 2000,
instead of January 1, 2001, to contract with a designated agent
to monitor compliance with the requirements of the chapter.  The
department will review the operation and performance of the
database and submit a report to the General Assembly by January
15, instead of December 31, of the year following the third
complete year of implementation.

Current law requires the designated agent to notify owners who
have not maintained financial responsibility for 2 consecutive
months that their vehicle registrations will be suspended if
they do not show proof of insurance within 30 days of the
mailing.  The substitute exempts from such notification owners
of fleet or rental vehicles and authorizes the Director of the
Department of Revenue to make rules governing the notification
provisions.  Notice of suspension of motor vehicle registration
due to noncompliance with insurance requirements will be sent by
first class instead of by certified mail.

The substitute also prohibits the director from suspending
registrations of owners who satisfactorily establish that the
motor vehicle was inoperable or being stored and not operated on
the date proof of financial responsibility is required.

Current law requires by March 1, 2001, all licensed insurance
companies to provide a record of all policies in effect on that
date and to provide before the seventh working day of each month
a record of each policy issued, canceled, terminated, suspended,
or revoked during the previous month.  The substitute only
requires reporting the policies in effect beginning March 1,
2001, before the seventh working day of each month.

The substitute corrects conflicting effective dates in current
law, moves up the effective date from January 1, 2001, to August
1, 2000, and extends the expiration date to June 30, 2005.

FISCAL NOTE:  Estimated Net Income to Motorist Insurance
Identification Database Fund of $8,748,066 in FY 2001, FY 2002,
and FY 2003.  Estimated Net Cost Avoidance to Highway Fund of
$2,220,075 in FY 2001, $900,900 in FY 2002, and $643,500 in FY
2003.  Estimated Net Cost to General Revenue Fund of $4,404,171
in FY 2001, $4,406,323 in FY 2002, and $4,407,138 in FY 2003.
Estimated Net Effect on County Foreign Insurance Fund of $0 in
FY 2001, FY 2002, and FY 2003.

PROPONENTS:  Supporters say that this bill will enable law
enforcement officers to determine if people being stopped or who
are in a car wreck are insured.

Testifying for the bill were Representative Gratz; and Colonel
Wilhoit, Highway Patrol.

OPPONENTS:  There was no opposition voiced to the committee.

Donna Schlosser, Legislative Analyst


INTRODUCED

HB 1797 -- Motorist Insurance Identification Database

Co-Sponsors:  Gratz, Gaw, Backer, Riley, Kreider, Vogel,
Luetkenhaus, Griesheimer

This bill creates a Motorist Insurance Identification Database
Fund.  Six percent of revenue derived from the insurance
premiums tax will be credited to this fund for the purpose of
funding the database.  Moneys in the fund will be used for the
motorist insurance identification database.

Notice of suspension of motor vehicle registration due to
noncompliance with insurance requirements will be sent by first
class instead of by certified mail.


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Last Updated October 5, 2000 at 11:34 am