Report Title:

Motor Vehicle Insurance; Uninsured Motor Vehicle Database

 

Description:

Establishes the Hawaii Uninsured Motor Vehicle Database; requires seizure of certificate of registration and impoundment of motor vehicle when citation is issued for uninsured motor vehicle; clarifies that proof of motor vehicle insurance is necessary for renewal of registration; makes appropriations to attorney general and the counties.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

1117

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

Relating to motor vehicles.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the number of uninsured motor vehicles in Hawaii is estimated to be at twenty-five per cent, according to the "Progress Report of the Motor Vehicle Insurance Benefits Task Force to the Twentieth Legislature" (Report), of the Insurance Division, January 1999. An accurate assessment of the number of uninsured vehicles in the State is difficult because of the lack of reliable data.

The extent of the uninsured motor vehicle problem is evident from the number of court cases processed in 1997 by the judiciary for citations for unregistered vehicles. According to the Report, the total was 21,943, with Honolulu having 16,562, Hawaii having 4,605, Maui having 349, and Kauai having 427. The total number of uninsured motor vehicles likely exceeds the total number of unregistered vehicles.

The legislature further finds that the high number of uninsured motor vehicles contributes substantially to the cost of motor vehicle insurance. Standard insurance underwriting principles factor in the costs of uninsured motorists to the premium amounts charged to policyholders.

The Report discussed the need for a centralized comprehensive electronic data system. It said, "The use of a data base system to determine whether a vehicle was insured would eliminate the need for insurance cards, especially where law enforcement has on-line capability, and also eliminate the forged insurance card problem."

The purpose of this Act is to establish the Hawaii motor vehicle database to enforce the mandatory motor vehicle insurance laws.

SECTION 2. Chapter 28, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§28-   Hawaii motor vehicle database. (a) There is established the Hawaii motor vehicle database to serve as a statewide system of data compilation and retrieval of information regarding uninsured and unregistered motor vehicles. The database shall be administered by the department of the attorney general.

(b) Every insurer under chapter 431, article 10C, shall electronically transmit data to the Hawaii motor vehicle database, as follows:

(1) Within five days upon issuance or renewal of a motor vehicle insurance policy: the name of the insurer and insured, the policy number, and the policy period; and

(2) Within five days after the date of notice of cancellation of a motor vehicle insurance policy, if the cancellation is by the insurer, or within five days of notice given by the insured of a nonrenewal of a motor vehicle insurance policy: the name of the insurer and insured, the policy number, the policy period of the canceled or nonrenewed policy, and the effective date of the cancellation or nonrenewal.

(c) The appropriate motor vehicle registration authority in each county shall electronically transmit to the Hawaii motor vehicle database data on every motor vehicle registration, renewal, and lapse of renewal within five days of the registration, renewal, or lapse. The data shall include the make and model of the vehicle, license number, vehicle identification number, registered owner's name and address, and the date of expiration of the registration, if applicable.

(d) The Hawaii motor vehicle database shall make the data available electronically to county police departments at all times.

(e) The attorney general shall issue an annual report, the first report to be issued not later than January 31, 2003, containing statistical data for the prior calendar year, including the numbers of uninsured and unregistered motor vehicles, by county, and such other information as may be deemed helpful to the county police departments and the insurance industry."

SECTION 3. Chapter 291, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§291-   Driving an uninsured motor vehicle; revocation of registration; impoundment. (a) Upon checking the Hawaii motor vehicle database and finding that a motor vehicle has not been insured under chapter 431, article 10C, for more than thirty days, the appropriate county police department shall issue a citation for violation of section 431:10C-104. The officer issuing the citation shall immediately take possession of the certificate of registration of the motor vehicle.

(b) Upon issuance of a citation under subsection (a), the officer shall summarily take possession of and impound the motor vehicle. The registered owner of the impounded motor vehicle shall be liable for all towing and storage fees. The motor vehicle shall be returned to the registered owner in accordance with section 805-13."

SECTION 4. Section 286-41, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) Notwithstanding any other law to the contrary, the director of finance of the county in which the application for registration is sought shall [not] require proof of insurance as a condition to satisfy the requirements of this part[.] for renewal of a registration. This subsection shall not apply [only] to the initial registration of any motor vehicle."

SECTION 5. Section 431:10C-104, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Except as provided in section 431:10C-105, no person shall operate or use a motor vehicle upon any public street, road, or highway of this State at any time unless [such] the motor vehicle is insured at all times under a motor vehicle insurance policy. Proof of a valid and current insurance policy shall be a condition precedent to renewal of a motor vehicle registration under section 286-41(d)."

SECTION 6. Section 805-13, Hawaii Revised Statutes, is amended to read as follows:

"§805-13 Motor vehicle insurance violation. (a) In all cases of citation for alleged violations of chapter 431:10C or section 286-116, the court shall hear and dispose of such actions expeditiously. Such actions may be severed from any other proceedings to facilitate immediate disposition. Continuance of proceedings on motor vehicle insurance violations may be allowed in the discretion of the court, only after the court has received evidence that the required insurance on the motor vehicle involved was in fact in force on the date of the citation, or that the motor vehicle has been, or is ordered by the court to be, impounded.

(b) In all cases of citation for alleged violations of chapter 431:10C or section 286-116 the court shall require the appearance of the driver cited and the registered owner of the motor vehicle. If the registered owner is not the driver, the registered owner shall be cited by service of the citation on the driver who shall be deemed to be the owner's agent for purposes of service and by naming the owner jointly with the driver in the citation. Where the registered owner is a corporation or association, an officer or designated agent thereof shall be required to appear. Where the registered owner is a partnership, a general partner thereof shall be required to appear.

(c) In the case of multiple violations the court shall, in addition to any other penalty, impose the following penalties:

(1) Imprisonment of not more than thirty days;

(2) Suspension or revocation of driver's license of the driver and of the registered owner;

(3) Suspension or revocation of the motor vehicle registration plates of the vehicle involved;

(4) Impoundment, or impoundment and sale, of the motor vehicle for the costs of storage and other charges incident to seizure of the vehicle; or any other cost involved pursuant to section 431:10C-117; or

(5) Any combination of such penalties.

The court shall impose any other sanction it finds necessary to remove the vehicle or driver involved from the highways, and to preclude the driver or registered owner from the continued operation of any uninsured motor vehicle.

(d) Upon subsequent hearing ordered by the court or upon the driver's or registered owner's motion, the court may, in its discretion, terminate any judgment previously entered under subsection (c) upon finding that the registered owner and the driver, as applicable, have complied with chapter 287 with respect to any prior accident as evidenced by a form properly validated by a police department and:

(1) Complied with all requirements under chapter 431:10C as evidenced by a motor vehicle insurance identification card and the insurance policy issued by a licensed insurer; or

(2) Complied with all requirements under chapter 431:10C as evidenced by a certificate of self-insurance issued by the insurance commissioner pursuant to section [[]431:10C-107(d)[]].

(e) The court may, in its discretion, maintain continuing jurisdiction following any termination or judgment as provided in subsection (d), to assure the continued compliance of the registered owner or driver with chapter 286, 287, or 431:10C.

(f) Unless the motor vehicle is stolen, the court shall return the motor vehicle impounded under section 291-    to the registered owner upon the registered owner showing proof of a current motor vehicle registration in this State and a current motor vehicle insurance policy under chapter 431:10C, and the payment of any applicable fine.

Release of a stolen motor vehicle to the registered owner shall be in accordance with law enforcement procedures."

SECTION 7. There is appropriated out of the general revenues of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2001-2002, for the department of the attorney general to establish the Hawaii motor vehicle database.

The sum appropriated shall be expended by the department of the attorney general for the purposes of this Act.

SECTION 8. There is appropriated out of the general revenues of the State of Hawaii the following sums:

City and County of Honolulu $          

County of Maui $          

County of Kauai $          

County of Hawaii $          

or so much thereof as may be necessary for fiscal year 2001-2002, to comply with this Act.

The sums appropriated to each county shall be expended by that county for the purposes of this Act.

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect upon its approval; provided that sections 6 and 7 shall take effect on July 1, 2001.

INTRODUCED BY:

_____________________________