1.2relating to insurance; providing for the establishment of an online motor vehicle
1.3insurance verification system; appropriating money;amending Minnesota
1.4Statutes 2010, section 169.09, subdivision 13; proposing coding for new law in
1.5Minnesota Statutes, chapter 169.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7    Section 1. Minnesota Statutes 2010, section 169.09, subdivision 13, is amended to read:
1.8    Subd. 13. Reports confidential; evidence, fee, penalty, appropriation. (a) All
1.9reports and supplemental information required under this section must be for the use of the
1.10commissioner of public safety and other appropriate state, federal, county, and municipal
1.11governmental agencies for accident analysis purposes, except:
1.12(1) the commissioner of public safety or any law enforcement agency shall, upon
1.13written request of any individual involved in an accident or upon written request of the
1.14representative of the individual's estate, surviving spouse, or one or more surviving next
1.15of kin, or a trustee appointed under section 573.02, or other person injured in person,
1.16property, or means of support, or who incurs other pecuniary loss by virtue of the accident,
1.17disclose to the requester, the requester's legal counsel, or a representative of the requester's
1.18insurer the report required under subdivision 8;
1.19(2) the commissioner of public safety shall, upon written request, provide the driver
1.20filing a report under subdivision 7 with a copy of the report filed by the driver;
1.21(3) the commissioner of public safety may verify with insurance companies vehicle
1.22insurance information to enforce sections 65B.48, 169.792, 169.793, 169.796, and
1.23169.797 ;
2.1(4) the commissioner of public safety shall provide the commissioner of
2.2transportation the information obtained for each traffic accident involving a commercial
2.3motor vehicle, for purposes of administering commercial vehicle safety regulations; and
2.4(5) the commissioner of public safety may give to the United States Department of
2.5Transportation commercial vehicle accident information in connection with federal grant
2.6programs relating to safety.
2.7(b) Accident reports and data contained in the reports are not discoverable under any
2.8provision of law or rule of court. No report shall be used as evidence in any trial, civil or
2.9criminal, or any action for damages or criminal proceedings arising out of an accident.
2.10However, the commissioner of public safety shall furnish, upon the demand of any person
2.11who has or claims to have made a report or upon demand of any court, a certificate
2.12showing that a specified accident report has or has not been made to the commissioner
2.13solely to prove compliance or failure to comply with the requirements that the report be
2.14made to the commissioner.
2.15(c) Nothing in this subdivision prevents any individual who has made a report under
2.16this section from providing information to any individuals involved in an accident or their
2.17representatives or from testifying in any trial, civil or criminal, arising out of an accident,
2.18as to facts within the individual's knowledge. It is intended by this subdivision to render
2.19privileged the reports required, but it is not intended to prohibit proof of the facts to
2.20which the reports relate.
2.21(d) Disclosing any information contained in any accident report, except as provided
2.22in this subdivision, section 13.82, subdivision 3 or 6, or other statutes, is a misdemeanor.
2.23(e) The commissioner of public safety shall charge authorized persons as described
2.24in paragraph (a) a $5 fee for a copy of an accident report. Ninety percent of the $5 fee
2.25collected under this paragraph must be deposited in the special revenue fund and credited
2.26to the driver services operating account established in section 299A.705 and ten percent
2.27must be deposited in the general fund. The commissioner may also furnish an electronic
2.28copy of the database of accident records, which must not contain personal or private data
2.29on an individual, to private agencies as provided in paragraph (g), for not less than the cost
2.30of preparing the copies on a bulk basis as provided in section 13.03, subdivision 3.
2.31(f) The fees specified in paragraph (e) notwithstanding, the commissioner and law
2.32enforcement agencies shall charge commercial users who request access to response or
2.33incident data relating to accidents a fee not to exceed 50 cents per record. "Commercial
2.34user" is a user who in one location requests access to data in more than five accident
2.35reports per month, unless the user establishes that access is not for a commercial purpose.
2.36Of the money collected by the commissioner under this paragraph, 90 percent must be
3.1deposited in the special revenue fund and credited to the driver services operating account
3.2established in section 299A.705 and ten percent must be deposited in the general fund.
3.3(g) The fees in paragraphs (e) and (f) notwithstanding, the commissioner shall
3.4provide an electronic copy of the accident records database to the public on a case-by-case
3.5basis using the cost-recovery charges provided for under section 13.03, subdivision
3.63 . The database provided must not contain personal or private data on an individual.
3.7However, unless the accident records database includes the vehicle identification number,
3.8the commissioner shall include the vehicle registration plate number if a private agency
3.9certifies and agrees that the agency:
3.10(1) is in the business of collecting accident and damage information on vehicles;
3.11(2) will use the vehicle registration plate number only for identifying vehicles that
3.12have been involved in accidents or damaged, to provide this information to persons
3.13seeking access to a vehicle's history and not for identifying individuals or for any other
3.14purpose; and
3.15(3) will be subject to the penalties and remedies under sections 13.08 and 13.09.

3.16    Sec. 2. [169.7962] ONLINE VERIFICATION SYSTEM.
3.17    Subdivision 1. Rulemaking. The department shall adopt by rule online verification
3.18of evidence of insurance as required by this section, subject to subdivisions 2 to 15.
3.19    Subd. 2. Status. Unless otherwise described in this section, the online verification
3.20of evidence of insurance system that is adopted by the department by rule is the sole and
3.21exclusive system for reporting and verifying evidence of insurance.
3.22    Subd. 3. Operation. The verification system must be capable of sending requests
3.23to insurers for verification of evidence of insurance via Web services established by the
3.24insurers, through the Internet, World Wide Web, or a similar proprietary or common carrier
3.25electronic system, in compliance with the specifications and standards of the Insurance
3.26Industry Committee on Motor Vehicle Administration (IICMVA), with enhancements,
3.27additions, and modification as required by the department but which do not conflict,
3.28nullify, or add requirements that are inconsistent with the specifications and standards of
3.29the IICMVA. The system must include appropriate provisions to secure its data against
3.30unauthorized access and must maintain a historical record of all system requests and
3.31responses for a period of at least six months from the date of the requests and responses.
3.32The system must be used for verification of the evidence of mandatory liability
3.33insurance coverage as prescribed by the laws of this state and must be accessible to
3.34authorized personnel of the department, the courts, law enforcement personnel, and any
3.35other entities authorized by the state as permitted by state or federal privacy laws, and it
4.1must be interfaced, wherever appropriate, with existing state systems. The system must
4.2include information that enables the department to make inquiries to insurers of evidence
4.3of insurance that is consistent with insurance industry and IICMVA recommendations,
4.4specifications, and standards by using multiple data elements for greater matching
4.5accuracy, specifically: Insurer National Association of Insurance Commissioners company
4.6code, vehicle identification number, policy number, or as described in the specifications
4.7and standards of the IICMVA.
4.8At the discretion of the department, rules may offer insurers who write fewer
4.9policies an alternative method for reporting insurance policy data instead of establishing
4.10Web services.
4.11    Subd. 4. Response time. Consistent with the time periods prescribed by the
4.12IICMVA's specifications and standards, the vendor is responsible for having its verification
4.13system respond to each requestor within a time period as established by the state agencies.
4.14An insurer's system must respond within the time period prescribed by the IICMVA's
4.15specifications and standards. The system must be available to accommodate the time
4.16period established.
4.17    Subd. 5. Department's powers. When the department has reason to believe a motor
4.18vehicle has been or is currently being operated without insurance, the owner's vehicle
4.19registration may be suspended or revoked. The registration may not be reinstated or a new
4.20registration may not be issued unless evidence of insurance has been provided to the
4.21department and any applicable reinstatement fees as prescribed by the department have
4.22been paid. These fees are in addition to any other applicable fines, penalties, and fees.
4.23    Subd. 6. Consultation. The department shall consult with representatives of the
4.24insurance industry and private service providers in determining the objectives, details, and
4.25deadlines related to the system.
4.26    Subd. 7. Guide. The department shall publish for comment and then issue a detailed
4.27guide of its online verification system.
4.28    Subd. 8. Contacts. The department and its private service provider, if any, must
4.29each maintain a contact person for insurers during the establishment, implementation, and
4.30operation of the system.
4.31    Subd. 9. Verification and related administrative provisions. If the department
4.32has reason to believe a vehicle owner does not have valid vehicle insurance, it may also
4.33request an insurer to verify the existence of an automobile liability policy in a form
4.34approved by the department not later than ten days from the date the request is made. In
4.35addition, insurers shall cooperate with the department in establishing and maintaining the
5.1verification system provided by this section, and shall provide access to motor vehicle
5.2insurance policy status information as provided in the rules established by the department.
5.3    Subd. 10. Compliance. Every property and casualty insurance company that is
5.4licensed to issue motor vehicle insurance policies or is authorized to do business in
5.5Minnesota shall comply with this section for verification of evidence of vehicle insurance
5.6for every vehicle insured by that company in Minnesota as required by the rules of the
5.7department.
5.8    Subd. 11. Record keeping. Insurers shall maintain a historical record of all system
5.9requests and responses for a minimum of six months from the date of the requests and
5.10responses.
5.11    Subd. 12. Immunity. Insurers are immune from civil and administrative liability for
5.12good faith efforts to comply with the terms of this section.
5.13    Subd. 13. Nonapplication. (a) For the purposes of this section, commercial
5.14auto coverage is defined as any coverage provided to an insured, regardless of number
5.15of vehicles or entity covered, under a commercial coverage form and rated from a
5.16commercial manual approved by the Department of Commerce. This section does not
5.17apply to vehicles insured under commercial auto coverage; however, insurers of such
5.18vehicles may participate on a voluntary basis.
5.19(b) Insurers shall provide commercial automobile customers with evidence reflecting
5.20that the vehicle is insured under a commercial auto policy. Sufficient evidence is an
5.21insurance identification card clearly marked in the title with the identifier "Commercial
5.22Auto Insurance Identification Card."
5.23    Subd. 14. Authority to contract. Nothing in this legislation prohibits the
5.24department from contracting with a private service provider or providers who have
5.25successfully implemented similar systems in other states to assist in establishing and
5.26maintaining the verification system.
5.27    Subd. 15. Fees; appropriation. The department may impose a fee of $....... on each
5.28new and renewal vehicle registration. All fees collected must be deposited in a separate
5.29account and are appropriated to the commissioner for the purpose of the development,
5.30implementation, maintenance, and enhancement of the online evidence of insurance
5.31verification system.

5.32    Sec. 3. REPORT ON EFFECTIVENESS.
5.33No more than six months after the online insurance verification system has been in
5.34operation for two years, the department, after consultation with law enforcement, other
5.35state agencies, and the insurers, shall report to the legislature as to the benefits and the
6.1costs of the program for the department, law enforcement, other state agencies, insurers,
6.2and the public, and the effectiveness of the program in reducing the number of uninsured
6.3motor vehicles. The department shall comply with the requirements of Minnesota Statutes,
6.4sections 3.195 and 3.197 in reporting to the legislature.

6.5    Sec. 4. EFFECTIVE DATE; APPLICATION; TESTING AND PILOT PERIOD.
6.6Sections 1 to 3 are effective on August 1, 2011. The verification system must be
6.7installed and fully operational by August 1, 2012, following an appropriate testing and
6.8pilot period of at least nine months. Until successful completion of the testing and pilot
6.9period, no enforcement action may be taken based on the system.