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CSSB 68(TRA): "An Act directing the Department of Administration to develop and maintain an Internet-based system to verify mandatory motor vehicle insurance coverage; requiring motor vehicle insurers to provide to the commissioner of administration vehicle insurance policy information to allow the commissioner to verify whether mandatory motor vehicle insurance has been obtained and limiting access to the information; requiring evidence of mandatory insurance coverage when a person applies for or renews motor vehicle registration; and allowing the additional penalties of vehicle impoundment and forfeiture for failure to have mandatory motor vehicle insurance."

00                       CS FOR SENATE BILL NO. 68(TRA)                                                                    
01 "An Act directing the Department of Administration to develop and maintain an                                           
02 Internet-based system to verify mandatory motor vehicle insurance coverage; requiring                                   
03 motor vehicle insurers to provide to the commissioner of administration vehicle                                         
04 insurance policy information to allow the commissioner to verify whether mandatory                                      
05 motor vehicle insurance has been obtained and limiting access to the information;                                       
06 requiring evidence of mandatory insurance coverage when a person applies for or                                         
07 renews motor vehicle registration; and allowing the additional penalties of vehicle                                     
08 impoundment and forfeiture for failure to have 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 or to a person designated by the commissioner                               
01       information that allows the commissioner to verify that a vehicle is covered by the                               
02       insurance required 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 for failure to be covered by motor vehicle                                       
16       insurance required by AS 28.22.011.                                                                           
17    * Sec. 3. AS 28.10.021(a) is amended to read:                                                                      
18            (a)  The owner of a vehicle subject to registration shall apply for registration                             
19       under this chapter by properly completing the form prescribed by the commissioner                                 
20       under AS 28.05.041. Before the issuance of a certificate of registration by the                                   
21       department, the owner shall                                                                                       
22                 (1)  pay all registration fees and taxes required under this chapter and                                
23       federal heavy vehicle use taxes required under 26 U.S.C. 4481 (Internal Revenue Code                              
24       of 1954);                                                                                                         
25                 (2)  unless the owner qualifies as a self-insurer under AS 28.20.400 or                                 
26       is exempted from obtaining liability insurance under AS 28.22.011, certify to the                                 
27       department the existence of a motor vehicle liability policy that complies with                                   
28       AS 28.22.011 for the vehicle being registered; in this paragraph, "certify" means to                              
29       provide sufficient evidence, in a [INDICATE BY CHECK-OFF ON THE VEHICLE                                       
30       REGISTRATION] form prescribed by the department, of the existence of a policy of                              
31       insurance that complies with AS 28.22.011 [, IF A POLICY IS REQUIRED AT                                       
01       THAT TIME], and the intention to continue the policy [OR OBTAIN A POLICY AS                                       
02       REQUIRED BY THIS SUBSECTION]; and                                                                                 
03                 (3)  comply with other applicable statutes and regulations.                                             
04    * Sec. 4. AS 28.10.111(a) is amended to read:                                                                      
05            (a)  Application for the renewal of vehicle registration shall be made by                                    
06       completing the proper form, providing sufficient evidence, in a form prescribed by                            
07       the department, of the existence of a policy of insurance that complies with                                  
08       AS 28.22.011 and the intention to continue the policy, and paying any required fee                            
09       and tax.                                                                                                          
10    * Sec. 5. AS 28.22 is amended by adding a new section to read:                                                     
11            Sec. 28.22.035. Mandatory motor vehicle insurance verification. (a) The                                    
12       department shall adopt regulations establishing an Internet-based system that allows a                            
13       peace officer, an authorized employee of the Alaska Court System, and other persons                               
14       authorized by the department to verify whether mandatory motor vehicle insurance                                  
15       that complies with AS 28.22.011 has been issued.                                                                  
16            (b)  The regulations adopted under (a) of this section                                                       
17                 (1)  may use standards established by the Insurance Industry                                            
18       Committee on Motor Vehicle Administration;                                                                        
19                 (2)  must provide for direct inquiry of a motor vehicle insurer's records                               
20       by authorized personnel, including peace officers, authorized employees of the Alaska                             
21       Court System, or other persons authorized by the department;                                                      
22                 (3)  must include provisions consistent with industry standards to                                      
23       secure data against unauthorized access;                                                                          
24                 (4)  must allow for an appropriate testing period; and                                                  
25                 (5)  must use indexing methods that allow insurance verification by                                     
26       vehicle identification number, policy number, registered owner's name, or other                                   
27       indexes as determined by the department.                                                                          
28            (c)  The department may not develop or apply the system established by this                                  
29       section to verify whether mandatory motor vehicle insurance has been issued for a                                 
30       commercial motor vehicle, and a person authorized by (a) of this section to use the                               
31       system may not verify whether mandatory motor vehicle insurance has been issued for                               
01       a commercial motor vehicle. In this subsection, "commercial motor vehicle" means,                                 
02       notwithstanding AS 28.90.990, a self-propelled or towed vehicle that is used on a                                 
03       highway or vehicular way for commercial purposes; for purposes of this subsection,                                
04       "commercial purposes" means activities for which a person receives direct monetary                                
05       compensation or activities for which a person does not receive direct monetary                                    
06       compensation but that are incidental to and done in furtherance of the person's                                   
07       business. However, for purposes of this subsection, the following vehicles are not                                
08       commercial motor vehicles:                                                                                        
09                 (1)  emergency or fire equipment that is necessary to the preservation                                  
10       of life or property;                                                                                              
11                 (2)  farm vehicles that are                                                                             
12                      (A)  controlled and operated by a farmer;                                                          
13                      (B)  used to transport agricultural products, farm machinery, or                                   
14            farm supplies to or from that farmer's farm;                                                                 
15                      (C)  not used in the operations of a common or contract motor                                      
16            carrier; and                                                                                                 
17                      (D)  used within 150 miles of the farmer's farm;                                                   
18                 (3)  school buses;                                                                                      
19                 (4)  vehicles owned and operated by the federal government unless the                                   
20       vehicle is used to transport property of the general public for compensation in                                   
21       competition with other persons who own or operate a commercial motor vehicle                                      
22       subject to AS 19.10.310 - 19.10.399, and except to the extent that regulation of                                  
23       vehicles operated by the federal government is permitted by federal law; and                                      
24                 (5)  vehicles used exclusively for purposes other than commercial                                       
25       purposes.                                                                                                         
26            (d)  The department may contract with a private vendor to provide assistance in                              
27       establishing and maintaining the verification system.                                                             
28            (e)  Information available to the department under this section is not a public                              
29       record for purposes of AS 40.25.110 - 40.25.140 and shall be available only to the                                
30       department, peace officers, court personnel, and other persons with a need for the                                
31       information, as determined by the commissioner.                                                                   
01            (f)  Nothing in this section creates a private right or cause of action for errors                           
02       associated with the verification system.                                                                          
03    * Sec. 6. AS 28.22 is amended by adding a new section to read:                                                     
04            Sec. 28.22.042. Uninsured vehicle impoundment. In addition to the penalty                                  
05       set out in AS 09.65.320, AS 28.22.041, AS 28.90.010, or other penalty, a motor                                    
06       vehicle that is not covered by the insurance required by AS 28.22.011 that is driven,                             
07       moved, or parked on a highway or vehicular way or area may be impounded by a                                      
08       peace officer or an employee of the Department of Public Safety officially designated                             
09       for that purpose. The impounded motor vehicle shall be considered abandoned and                                   
10       disposed of under AS 28.11. The motor vehicle may be redeemed from impoundment                                    
11       if                                                                                                                
12                 (1)  the insurance required by AS 28.22.011 has been obtained;                                          
13                 (2)  proof of insurance by a method set out in AS 28.22.031 is provided                                 
14       to the department; and                                                                                            
15                 (3)  the costs of impounding and storing the vehicle have been paid.