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SB 68: "An Act requiring motor vehicle insurers to provide to the commissioner of administration a database listing vehicle insurance policy information that will allow the commissioner to verify whether mandatory motor vehicle insurance has been obtained, limiting access to the database, establishing methods for proving that mandatory motor vehicle insurance is in place, allowing the additional penalties of suspending registration and vehicle impoundment and forfeiture for failure to have mandatory motor vehicle insurance, and authorizing hearings after suspension of registration for failure to have mandatory motor vehicle insurance."

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.