HCS HB 840 -- MOTOR VEHICLE FINANCIAL RESPONSIBILITY

SPONSOR:  O'Connor (Gratz)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Motor
Vehicle and Traffic Regulations by a vote of 15 to 0.

This substitute establishes a Motorist Insurance Identification
Database Program for the purpose of establishing a database to
verify compliance with the motor vehicle financial
responsibility requirements.  This program will be administered
by the Department of Revenue.

To implement the program, the department must contract with a
designated agent who will develop and maintain a computer
database, using the department's guidelines, with its own
computer network and with information provided by the department
and insurers.  Information provided to designated agents by
insurers and the department may not be disclosed except to
certain persons for certain purposes spelled out in the
substitute.  Any person or agency who knowingly discloses
unauthorized information from the database is guilty of a class
A misdemeanor.  Designated agents will be liable to any insurer
damaged by a designated agent's negligent failure to protect the
confidentiality of information and data disclosed to the
designated agent.  Agents must provide to the state an errors
and omissions insurance policy covering an agent for an
appropriate amount.

Insurers writing motor vehicle liability policies will be
required to report their policy holder and uninsured motorist
claim statistics for the previous 12 month period preceding
September 1, 1999.  The Department of Insurance must contract
with a company that gathers statistical information concerning
personal lines of property and casualty insurance and report the
frequency of uninsured motorist claims to the department on a
regular basis.  The Department of Insurance then must report the
finding of such information to the General Assembly no later
than January 1, 2001, and by the first of January thereafter.
The Department of Revenue must also review the operation and
performance of the identification database program and report
that finding to the General Assembly no later than October 15,
2001.

Beginning September 1, 1999, all motorists must pay a $1
motorist insurance identification fee in addition to other
registration or renewal fees.  This fee will never exceed $1 and
will be adjusted annually based upon moneys appropriated for the
operation of the identification database program.  A Motorist
Insurance Identification Account will be created where all fees
will be credited.

Any person who presents an altered or counterfeit insurance
identification card, certificate, letter, or bond from an
insurer or agent thereof for the purpose of providing motor
vehicle financial responsibility is guilty of a class B
misdemeanor and subject to a $500 fine.  On a second or
subsequent violation, a person will be guilty of a class A
misdemeanor, be subject to a $1,000 fine, and have his or her
vehicle seized.  Any person who alters or creates a counterfeit
identification card, certificate, letter, or bond for another
person is guilty of a class A misdemeanor and subject to a fine
of $500, with any second or subsequent offense subject to a fine
of $1,000.

The substitute spells out the information required and the
frequency of reporting by insurers to the designated agents.
The Department of Insurance will assess fines up to $1,000 per
day for noncompliance by insurers.

FISCAL NOTE:  Estimated Net Effect on State School Moneys Fund
of $0 in FY 2000, FY 2001, and FY 2002.  Estimated Net Effect on
Motorist Insurance Identification Account is Unknown for FY
2000, FY 2001, and FY 2002.  Estimated Net Increase to State
Highway Fund of $2,875,000 in FY 2000, $3,450,000 in FY 2001,
and $3,450,000 in FY 2002.

PROPONENTS:  Supporters say that compliance with Missouri's
automobile insurance law has been a problem for a long time.
Supporters believe this concept will help solve the compliance
problem.

Testifying for the bill were Representatives Gratz and Backer;
Missouri Highway Patrol; and Explore Information Systems.

OPPONENTS:  Those who oppose the bill say that they do not
oppose the concept, even though they believe the concept has not
been tested.  There are problems in the mechanics of certain
parts of the bill.  The state might be throwing away money on
something that does not work.  The concept might be further
studied or tested in a pilot project.

Testifying against the bill were Farmers Insurance Group; and
Missouri Insurance Coalition.

Robert Triplett, Legislative Analyst

HB 840 -- Motor Vehicle Financial Responsibility

Co-Sponsors:  Gratz, Gaw, Backer, Parker, Leake, Britt,
Luetkenhaus, Selby

This bill establishes a Motorist Insurance Identification
Database Program for the purpose of establishing a database to
verify compliance with the motor vehicle financial
responsibility requirements. This program will be administered
by the Department of Revenue.

To implement such a program the department must contract a
designated agent who will develop and maintain a computer
database, using the department's established guidelines, with
its own computer network and with information provided by the
department and insurers.  Information provided to designated
agents by insurers and the department may not be disclosed
except to certain persons or purposes spelled out in the bill.
Any person or agency who knowingly discloses unauthorized
information from the database is guilty of a class A
misdemeanor.  Designated agents will be liable to any insurer
damaged by a designated agent's negligent failure to protect the
confidentiality of information and data disclosed to the
designated agent.

Insurers writing motor vehicle liability policies will be
required to report their policy holder and uninsured motorist
claim statistics for the previous 12 month period preceding
September 1, 1999.  The Department of Insurance must contract
with a company that gathers statistical information concerning
personal lines of property and casualty insurance and report the
frequency of uninsured motorist claims to the department on a
regular basis.  The Department of Insurance then must report the
finding of such information to the General Assembly no later
than January 1, 2001, and by the first of January thereafter.
The Department of Revenue must also review the operation and
performance of the identification database program and report
that finding to the General Assembly no later than October 15,
2001.

Beginning September 1, 1999, all motorists must pay a $1
motorist insurance identification fee in addition to other
registration or renewal fees.  This fee will never exceed $1 and
will be adjusted annually based upon moneys appropriated for the
operation of the identification database program.  A Motorist
Insurance Identification Account will be created where all fees
will be credited.

Any person who presents an altered or counterfeit insurance
identification card, certificate, letter, or bond from an
insurer or agent thereof for the purpose of providing motor
vehicle financial responsibility is guilty of a class B
misdemeanor and subject to a $500 fine.  On a second or
subsequent violation a person will be guilty of a class A
misdemeanor, be subject to a $1,000 fine, and have his or her
vehicle seized.  Any person who alters or creates a counterfeit
identification card, certificate, letter, or bond for another
person is guilty of a class A misdemeanor and subject to a fine
of $500, with any second or subsequent offense subject to a fine
of $1,000.

The bill spells out the information required and the frequency
of reporting by insurers to the designated agents.  The
Department of Revenue will assess fines up to $250 per day for
noncompliance of insurers.