00 SENATE BILL NO. 68 01 "An Act requiring motor vehicle insurers to provide to the commissioner of 02 administration a database listing vehicle insurance policy information that will allow the 03 commissioner to verify whether mandatory motor vehicle insurance has been obtained, 04 limiting access to the database, establishing methods for proving that mandatory motor 05 vehicle insurance is in place, allowing the additional penalties of suspending registration 06 and vehicle impoundment and forfeiture for failure to have mandatory motor vehicle 07 insurance, and authorizing hearings after suspension of registration for failure to have 08 mandatory motor vehicle insurance." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10  * Section 1. AS 21.89.020 is amended by adding a new subsection to read: 11 (j) An insurer licensed to issue motor vehicle liability insurance shall provide 12 to the commissioner of administration information required under AS 28.22.035 that 01 allows the commissioner to verify that a person has the mandatory insurance required 02 under AS 28.22.011. 03  * Sec. 2. AS 28.01.015(a) is amended to read: 04 (a) Notwithstanding other provisions in this title, a municipality may adopt an 05 ordinance providing for the impoundment or forfeiture of a 06 (1) motor vehicle, watercraft, or aircraft involved in the commission of 07 an offense under AS 28.35.030, 28.35.032, or an ordinance with elements substantially 08 similar to AS 28.35.030 or 28.35.032; 09 (2) motor vehicle involved in the commission of an offense under 10 AS 28.15.291 or an ordinance with elements similar to AS 28.15.291; 11 (3) motor vehicle used by a person whose license is suspended under 12 AS 28.22.041; [OR] 13 (4) motor vehicle used by a person who fails to carry proof of 14 insurance as required under AS 28.22.019; or  15 (5) motor vehicle with suspended registration for failure to have  16 mandatory motor vehicle insurance under AS 28.22.042. 17  * Sec. 3. AS 28.05.131(a) is amended to read: 18 (a) Unless otherwise specifically provided, or unless immediate action in 19 suspending, revoking, canceling, limiting, restricting, denying, or impounding is 20 necessary for the protection of the health, safety, or welfare of the public, the 21 Department of Public Safety or the Department of Administration, as appropriate, 22 shall give notice of the opportunity for an administrative hearing before a license, 23 registration, title, permit, or privilege issued or allowed under this title or regulations 24 adopted under this title is suspended, revoked, cancelled, limited, restricted, or denied 25 or a vehicle is impounded by that department. If action is required under this section 26 and prior opportunity for a hearing cannot be afforded, or if the registration is  27 suspended under AS 28.22.042(a)(2), the appropriate department shall promptly give 28 notice of the opportunity for a hearing as soon after the action as possible to the parties 29 concerned. 30  * Sec. 4. AS 28.22.031 is amended by adding a new subsection to read: 31 (c) A person whose registration has been suspended under AS 28.22.042(a) 01 for failure to have mandatory motor vehicle insurance or whose vehicle has been 02 impounded under AS 28.22.042(b) shall, within 30 days after the date the department 03 mailed the notice of suspension or before release from impoundment, prove that the 04 person is insured under a motor vehicle liability policy that complies with 05 AS 28.22.011 by providing to the department 06 (1) a copy of the insurance policy, certificate, bond, or insurance 07 binder; 08 (2) a written certificate from an insurance company, insurance agent, 09 insurance broker, or surplus lines broker confirming that a valid motor vehicle liability 10 policy issued in conformity with this chapter is in effect; or 11 (3) a certificate of self-insurance. 12  * Sec. 5. AS 28.22 is amended by adding a new section to read: 13 Sec. 28.22.035. Mandatory motor vehicle insurance verification; database.  14 (a) An insurer licensed to issue motor vehicle liability insurance shall provide to the 15 department a database containing motor vehicle insurance policy information that will 16 allow the department to verify that the mandatory insurance required by AS 28.22.011 17 is in place for a vehicle registered in this state or for a policyholder with an Alaska 18 address. A motor vehicle insurer shall report every issued policy or coverage, 19 including a coverage change or, amendment to, cancellation of, or termination of a 20 policy, within 15 days after its effective date. 21 (b) The commissioner shall adopt regulations for reporting insurance 22 information under this section, including regulations establishing times and methods 23 for reporting. 24 (c) The department shall use the motor vehicle insurance information database 25 to compile a list of vehicles that are registered but not insured as required under this 26 chapter. The list must be indexed to registration and license plate information. 27 (d) The department may establish alternate methods for determining whether a 28 person has effective mandatory motor vehicle insurance. 29 (e) Information compiled by the department under this section is not a public 30 record for purposes of AS 40.25.110 - 40.25.140 and shall be available only to peace 31 officers, court personnel, and other persons with a need for the information, as 01 determined by the commissioner. The department shall develop a method by which a 02 peace officer and court personnel may electronically verify that an insurance policy 03 complying with AS 28.22.011 has been issued. 04  * Sec. 6. AS 28.22 is amended by adding a new section to read: 05 Sec. 28.22.042. Administrative suspension of registration, and  06 impoundment. (a) If, from the information complied under AS 28.22.035, the 07 department determines that a person has failed to have the insurance required by 08 AS 28.22.011, the department shall 09 (1) notify the person in writing sent by certified or registered mail that 10 proof of insurance required by AS 28.22.011 must be obtained and proven to the 11 department within 30 days after the date the department mailed the notice, using the 12 methods of proof set out in AS 28.22.031(c); 13 (2) if proof of insurance required by (1) of this subsection has not been 14 received within 30 days after the date the department mailed the notice, suspend the 15 registration for the uninsured vehicle under AS 28.10.051(b) and notify the person in 16 writing sent by certified or registered mail that 17 (A) the registration has been suspended; 18 (B) the person may not drive, move, or park a vehicle with a 19 suspended registration on a highway or other public parking place under 20 AS 28.10.011; and 21 (C) the person has an opportunity for an administrative hearing 22 on the suspension under AS 28.05.131. 23 (b) In addition to the penalty set out in AS 09.65.320, AS 28.22.041, 24 AS 28.90.010, or other penalty, a motor vehicle for which registration is required 25 under AS 28.10.011 the registration of which is suspended under (a) of this section 26 that is driven, moved, or parked on a highway or vehicular way or area may be 27 impounded by a peace officer or an employee of the Department of Public Safety 28 officially designated for that purpose. If the motor vehicle has not been redeemed 29 within 60 days after impoundment, it shall be considered abandoned, and disposed of 30 under AS 28.11. The motor vehicle may be redeemed from impoundment if 31 (1) the insurance required by AS 28.22.011 has been obtained; 01 (2) proof of insurance by a method set out in AS 28.22.031 is provided 02 to the department; and 03 (3) the costs of impounding and storing the vehicle have been paid. 04 (c) The department may adopt regulations to implement this section, including 05 regulations defining which costs are costs of impoundment.