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process, which is free to the state, he said. 1:08:36 PM REPRESENTATIVE JOHNSON related his own experience with an outdated insurance card, but indicated the officer would not take his phone into the police vehicle.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.