HB 380: "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 HOUSE BILL NO. 380 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; 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 used by a person who has $1,000 or more in 16 delinquent traffic fines for moving violations committed within the municipality; or 17 (6) motor vehicle for failure to be covered by motor vehicle 18 insurance required by AS 28.22.011. 19 * Sec. 3. AS 28.10.021(a) is amended to read: 20 (a) The owner of a vehicle subject to registration shall apply for registration 21 under this chapter by properly completing the form prescribed by the commissioner 22 under AS 28.05.041. Before the issuance of a certificate of registration by the 23 department, the owner shall 24 (1) pay all registration fees and taxes required under this chapter and 25 federal heavy vehicle use taxes required under 26 U.S.C. 4481 (Internal Revenue Code 26 of 1954); 27 (2) unless the owner qualifies as a self-insurer under AS 28.20.400 or 28 is exempted from obtaining liability insurance under AS 28.22.011, certify to the 29 department the existence of a motor vehicle liability policy that complies with 30 AS 28.22.011 for the vehicle being registered; in this paragraph, "certify" means to 31 provide sufficient evidence, in a [INDICATE BY CHECK-OFF ON THE VEHICLE
01 REGISTRATION] form prescribed by the department, of the existence of a policy of 02 insurance that complies with AS 28.22.011 [, IF A POLICY IS REQUIRED AT 03 THAT TIME], and the intention to continue the policy [OR OBTAIN A POLICY AS 04 REQUIRED BY THIS SUBSECTION]; and 05 (3) comply with other applicable statutes and regulations. 06 * Sec. 4. AS 28.10.111(a) is amended to read: 07 (a) Application for the renewal of vehicle registration shall be made by 08 completing the proper form, providing sufficient evidence, in a form prescribed by 09 the department, of the existence of a policy of insurance that complies with 10 AS 28.22.011 and the intention to continue the policy, and paying any required fee 11 and tax. 12 * Sec. 5. AS 28.22 is amended by adding new sections to read: 13 Sec. 28.22.035. Mandatory motor vehicle insurance verification. (a) The 14 department shall adopt regulations establishing an Internet-based system that allows a 15 peace officer, an authorized employee of the Alaska Court System, and other persons 16 authorized by the department to verify whether mandatory motor vehicle insurance 17 that complies with AS 28.22.011 has been issued. 18 (b) The regulations adopted under (a) of this section 19 (1) may use standards established by the Insurance Industry 20 Committee on Motor Vehicle Administration; 21 (2) must provide for direct inquiry of a motor vehicle insurer's records 22 by authorized personnel, including peace officers, authorized employees of the Alaska 23 Court System, or other persons authorized by the department; 24 (3) must include provisions consistent with industry standards to 25 secure data against unauthorized access; 26 (4) must allow for an appropriate testing period; and 27 (5) must use indexing methods that allow insurance verification by 28 vehicle identification number, policy number, registered owner's name, or other 29 indexes as determined by the department. 30 (c) The department may not develop or apply the system established by this 31 section to verify whether mandatory motor vehicle insurance has been issued for a
01 commercial motor vehicle, and a person authorized by (a) of this section to use the 02 system may not verify whether mandatory motor vehicle insurance has been issued for 03 a commercial motor vehicle. In this subsection, "commercial motor vehicle" means, 04 notwithstanding AS 28.90.990, a self-propelled or towed vehicle that is used on a 05 highway or vehicular way for commercial purposes; for purposes of this subsection, 06 "commercial purposes" means activities for which a person receives direct monetary 07 compensation or activities for which a person does not receive direct monetary 08 compensation but that are incidental to and done in furtherance of the person's 09 business. However, for purposes of this subsection, the following vehicles are not 10 commercial motor vehicles: 11 (1) emergency or fire equipment that is necessary to the preservation 12 of life or property; 13 (2) farm vehicles that are 14 (A) controlled and operated by a farmer; 15 (B) used to transport agricultural products, farm machinery, or 16 farm supplies to or from that farmer's farm; 17 (C) not used in the operations of a common or contract motor 18 carrier; and 19 (D) used within 150 miles of the farmer's farm; 20 (3) school buses; 21 (4) vehicles owned and operated by the federal government unless the 22 vehicle is used to transport property of the general public for compensation in 23 competition with other persons who own or operate a commercial motor vehicle 24 subject to AS 19.10.310 - 19.10.399, and except to the extent that regulation of 25 vehicles operated by the federal government is permitted by federal law; and 26 (5) vehicles used exclusively for purposes other than commercial 27 purposes. 28 (d) The department may contract with a private vendor to provide assistance in 29 establishing and maintaining the verification system. 30 (e) Information available to the department under this section is not a public 31 record for purposes of AS 40.25.110 - 40.25.140 and shall be available only to the
01 department, peace officers, court personnel, and other persons with a need for the 02 information, as determined by the commissioner. 03 (f) Nothing in this section creates a private right or cause of action for errors 04 associated with the verification system. 05 Sec. 28.22.037. Uninsured vehicle impoundment. In addition to the penalty 06 set out in AS 09.65.320, AS 28.22.041, AS 28.90.010, or other penalty, a motor 07 vehicle that is not covered by the insurance required by AS 28.22.011 that is driven, 08 moved, or parked on a highway or vehicular way or area may be impounded by a 09 peace officer or an employee of the Department of Public Safety officially designated 10 for that purpose. The impounded motor vehicle shall be considered abandoned and 11 disposed of under AS 28.11. The motor vehicle may be redeemed from impoundment 12 if 13 (1) the insurance required by AS 28.22.011 has been obtained; 14 (2) proof of insurance by a method set out in AS 28.22.031 is provided 15 to the department; and 16 (3) the costs of impounding and storing the vehicle have been paid.