Legislature(2013 - 2014)BARNES 124

03/19/2013 01:00 PM House TRANSPORTATION


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 146 PROOF OF MOTOR VEHICLE INSURANCE TELECONFERENCED
Moved CSHB 146(TRA) Out of Committee
+= HB 123 DEDICATED TRANSPORT FUND/PUB TRANSPORT TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
            HB 146-PROOF OF MOTOR VEHICLE INSURANCE                                                                         
                                                                                                                                
1:03:46 PM                                                                                                                    
                                                                                                                                
CHAIR P. WILSON  announced that the first order  of business would                                                              
be  HOUSE  BILL NO.  146,  "An  Act  relating  to proof  of  motor                                                              
vehicle  liability  insurance;  and  providing  for  an  effective                                                              
date."                                                                                                                          
                                                                                                                                
1:04:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ISAACSON  moved to  adopt  the proposed  committee                                                              
substitute  (CS) for  HB  146, labeled  [28-LS0436\N,  Strasbaugh,                                                              
3/11/13],  as the  working document.   There  being no  objection,                                                              
Version N was before the committee.                                                                                             
                                                                                                                                
1:05:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PETE  HIGGINS,   Alaska  State  Legislature,  said                                                              
Alaska is often  behind the power curve and HB 146  relates to the                                                              
proof  of insurance.    Sometimes a  vehicle's  insurance card  is                                                              
expired,  but   with  modern  technology  including   applications                                                              
(APPS), it is easy  for drivers to show proof of  insurance.  This                                                              
bill, HB 146,  will allow motorists to provide  proof of insurance                                                              
on a mobile electronic  device, such as on a  phone application or                                                              
electronic device such  as an IPad.  This bill  would bring Alaska                                                              
into the 21st Century and has no fiscal note impact.                                                                            
                                                                                                                                
1:06:55 PM                                                                                                                    
                                                                                                                                
THOMAS STUDLER,  Staff, Representative Pete Higgins,  Alaska State                                                              
Legislature, on  behalf of Representative  Higgins, sponsor  of HB
146, stated  that six  states have  already enacted  this  law and                                                              
another 20 other  states are considering similar  legislation.  He                                                              
said  the research  done  showed  that  two types  of  electronics                                                              
proof  of  insurance  exist,  including   the  American  Liability                                                              
Insurance Registry  (ALIR), which  is performed via  the insurance                                                              
companies and  the department of motor  vehicles at a cost  to the                                                              
state of  $4.7 million.   Second, the  driver could  provide proof                                                              
of  insurance by  using  an application  (APP)  process, which  is                                                              
free to the state, he said.                                                                                                     
                                                                                                                                
1:08:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON   related  his  own  experience   with  an                                                              
outdated  insurance  card, but  indicated  the officer  would  not                                                              
take his  phone into  the police  vehicle.   He wanted  to clarify                                                              
and  ensure that  officers  would  be able  to  take the  driver's                                                              
phone to  verify the  insurance.   In his  own experience,  he had                                                              
shown the  officer his  paper insurance  card, which was  expired,                                                              
as well  as the online  version of his  proof of insurance,  which                                                              
had an  updated expiration  date.  He  indicated the  officer took                                                              
the expired card  to the vehicle, after verifying  the information                                                              
displayed on the phone [to ensure that it was the same policy.]                                                                 
                                                                                                                                
1:09:52 PM                                                                                                                    
                                                                                                                                
RODNEY  DIAL, Lieutenant,  Alaska  State Troopers,  Department  of                                                              
Public Safety (DPS), introduced himself.                                                                                        
                                                                                                                                
1:10:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  related a  scenario  about  his proof  of                                                              
insurance and use of the phone to verify the vehicle insurance.                                                                 
                                                                                                                                
LT.  DIAL  understood  that  the   question  related  to  using  a                                                              
telephone during a  routine office stop.  He said  that the Alaska                                                              
State Troopers  (AST) do  not have any  restrictions.   He advised                                                              
that  the  AST   officers  typically  are  fairly   creative  when                                                              
verifying  the information,  but as  a last resort  would  issue a                                                              
correctable  citation.    He  explained  that  the  officers  will                                                              
sometimes   call  local   insurance  companies   in  the   smaller                                                              
communities,  such  as Ketchikan,  and  the insurance  agent  will                                                              
advise if  the driver has insurance.   He pointed out  that anyone                                                              
can get an insurance  card that shows they have  insurance for six                                                              
months or longer;  however, the person could stop  making payments                                                              
and simply  retain the card, but  the insurance coverage  would be                                                              
terminated.    He  reiterated  that  the AST  does  not  have  any                                                              
restrictions  and  tries  to verify  insurance  before  writing  a                                                              
citation.                                                                                                                       
                                                                                                                                
1:12:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  expressed  additional concern  about  the                                                              
Municipality of  Anchorage and whether  their officers  would have                                                              
any issues  with the  online insurance verification.   He  said he                                                              
does not want  to hold the bill  up, but wants to ensure  the bill                                                              
works.                                                                                                                          
                                                                                                                                
REPRESENTATIVE   GATTIS  commented   that  it   is  possible   the                                                              
Matanuska-Susitna valley  might have similar issues.   She pointed                                                              
out that  these devices  are not  just phones  but hold  calendars                                                              
and  other information.   She  acknowledged  that the  communities                                                              
are   all  grappling   with  how   to   handle  these   electronic                                                              
situations.                                                                                                                     
                                                                                                                                
REPRESENTATIVE   ISAACSON  related  he   was  mayor  of   a  small                                                              
community.   He  suggested that  if the  person voluntarily  gives                                                              
the phone as  evidence to the officer,  it would not likely  be an                                                              
issue.  He further  suggested that this bill would  clarify and be                                                              
helpful to  officers since  it would  indicate the mobile  devices                                                              
could be used.                                                                                                                  
                                                                                                                                
REPRESENTATIVE JOHNSON  said he supports  the bill, but  wanted to                                                              
be  sure  it  works  so  the  person   can  show  their  proof  of                                                              
insurance.                                                                                                                      
                                                                                                                                
1:15:53 PM                                                                                                                    
                                                                                                                                
CHAIR P.  WILSON referred  to [page  2, lines  7-8], and  read, "A                                                              
person  may display  the  proof on  a mobile  electronic  device."                                                              
She thought it was straight forward as a statewide permission.                                                                  
                                                                                                                                
REPRESENTATIVE  JOHNSON   said  he  was  unsure   the  ability  to                                                              
displace is  the same as the  police officer being able  to accept                                                              
it.                                                                                                                             
                                                                                                                                
CHAIR P. WILSON  asked whether Representative Johnson  could check                                                              
with the Municipality of Anchorage.                                                                                             
                                                                                                                                
1:17:35 PM                                                                                                                    
                                                                                                                                
MR. STUDLER  said the  Department  of Public  Safety was fully  in                                                              
support of the  bill as a policy  for the state and  that it would                                                              
allow local municipalities  to also use the policy.   He explained                                                              
that  people have  to show  evidence  of proof  of insurance  upon                                                              
demand  of a  peace officer  and  under the  bill  the person  may                                                              
display  it  on  an  electronic   device.    He  further  recalled                                                              
discussions   with  the   Department   of  Administration   (DOA),                                                              
specifically,  with  the  Division  of Motor  Vehicles  (DMV)  who                                                              
suggested  it  would reduce  confusion  on  what a  peace  officer                                                              
could accept as proof of insurance.                                                                                             
                                                                                                                                
The committee took an at-ease from 1:18 p.m. to 1:37 p.m.                                                                       
                                                                                                                                
1:37:47 PM                                                                                                                    
                                                                                                                                
CHAIR  P.   WILSON  offered   that  Representatives   Johnson  and                                                              
Isaacson have briefly researched this matter.                                                                                   
                                                                                                                                
REPRESENTATIVE  ISAACSON  said  he  spoke  to  the  Department  of                                                              
Public  Safety (DPS),  who stated  if the  legislature places  the                                                              
online  proof  of insurance  provision  in  statute that  the  AST                                                              
would comply.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  JOHNSON  said he  was  satisfied.   He  understood                                                              
that  the  police  officers  would  only need  to  take  proof  of                                                              
insurance  to their  vehicles in  instances in  which an  accident                                                              
occurs.  He further  understood that the officers  could write the                                                              
number  down if they  do not  feel comfortable  taking the  phone.                                                              
Thus he is comfortable with the bill.                                                                                           
                                                                                                                                
1:39:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ISAACSON moved  to report  the proposed  committee                                                              
substitute  (CS) for  HB  146, labeled  [28-LS0436\N,  Strasbaugh,                                                              
3/11/13]  out of  committee  with individual  recommendations  and                                                              
the  accompanying fiscal  note.   There  being  no objection,  the                                                              
CSHB  146(TRA)   was  reported   from  the  House   Transportation                                                              
Standing Committee.                                                                                                             
                                                                                                                                

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