A6023

An Act concerning motor vehicle insurance and automated license plate readers, supplementing Title 39 of the Revised Statutes, and amending P.L.1990, c.8.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) a. There is established an Uninsured Vehicle Enforcement and Compliance Program, which may be administered by each county and municipality in the State. To implement this program, county and municipal governing bodies and law enforcement agencies shall have the authority to enter into contractual agreements with automated license plate reader providers to provide the necessary technology, equipment and maintenance thereof.

b. Under the program, each county and municipal prosecutor and participating law enforcement agencies may utilize individual automatic license plate reader systems to access and collect data for the investigation, detection, analysis, or enforcement of the compulsory motor vehicle insurance law, P.L.1972, c.197 (C.39:6B-1 et seq.). A law enforcement agency that utilizes automated license plate readers pursuant to this section shall access the insurance information within the database established pursuant to subsection j. of section 50 of P.L.1990, c.8 (C.17:33B-41).

Access to the database shall be restricted to authorized prosecutors and law enforcement agencies. Any entity with which a contract has been executed to provide or maintain the technology or equipment necessary to utilize automated license plate readers or the database shall be entitled to access the data collected exclusively for the purposes enforcing this act.

c. A law enforcement officer may verify by sworn affidavit that a photograph generated by an automatic license plate reader system unit identifies a particular vehicle operating on the public roads or highways of this State and that the database confirms that the vehicle was uninsured at the time such vehicle was being operated. The affidavit shall constitute probable cause for prosecution under the compulsory motor vehicle insurance law.

d. Any data collected or retained through the use of an automated license plate reader system pursuant to the program shall be retained by the prosecuting authority and law enforcement agency when the data is being used as evidence of a violation of the compulsory motor vehicle insurance law; provided, when the data is no longer needed as evidence of a violation, the data shall be deleted or destroyed.

e. Any data collected or retained through the use of an automated license plate reader system shall not be used by an individual or agency for purposes other than enforcement of compulsory motor vehicle insurance law or as otherwise permitted by law. Images of the driver or motor vehicle occupants shall not be used or maintained as evidence by any prosecuting authority or law enforcement agency.

f. Any recorded image or information produced in connection with the automated license plate reader shall not be deemed a public record under P.L.1963, c.73 (C.47:1A-1 et seq.), P.L.2001, c.404 (C.47:1A-5 et al.), or the common law concerning access to public records.

g. The provisions of this section shall not take effect until the Motor Vehicle Commission verifies that:

(1) at least 90 percent of the personal lines auto insurance market in the State submits insurance information to the database; and

(2) the database is updated in a manner that allows the provisions of this section to be implemented.

h. As used in this act, “automated license plate reader” means a system consisting of one or more cameras and related equipment that automatically and without direct human control locates, focuses on, and photographs license plates and vehicles that come into range of the device; that automatically converts digital photographic images of scanned license plates into electronic text documents; that is capable of comparing scanned license plate text data with data files for vehicles on a list programmed into the device’s electronic memory; and that notifies law enforcement, whether by an audible alert or by other means, when a scanned license plate matches the license plate on the programmed list. The term includes both devices that are placed at a stationary location and mobile devices affixed to a law enforcement vehicle that are capable of operating while the vehicle is in motion.

2. (New section) a. Every prosecuting authority in this State may establish an Uninsured Vehicle Enforcement Diversion Program to allow county and municipal prosecutors to defer prosecution of a person who violates the compulsory motor vehicle insurance law, P.L.1972, c.197 (C.39:6B-1 et seq.).

Under the program, a prosecutor may move before the court to postpone proceedings against a person who violates the compulsory motor vehicle insurance law. If the prosecutor's review of the person’s driving records and other criminal history reveals that the offender does not qualify for the program, the prosecutor may notify the court that the prosecutor is prepared to proceed with the prosecution of the offense and the court shall schedule court proceedings as appropriate. The prosecutor shall have the sole discretion to determine if an offender qualifies for and is admitted to the program after considering:

(1) whether it is in the interest of public safety to postpone proceedings against the offender;

(2) the driving record of the offender;

(3) whether there are criminal complaints pending against the offender; and

(4) whether the offender has provided the prosecutor with satisfactory proof of motor vehicle liability insurance prior to the hearing.

b. Upon referral to the program established pursuant to subsection a. of this section, the prosecutor shall forward to the person a notice, which shall provide:

(1) the date on which the violation occurred;

(2) a statement of the penalties established pursuant to section 2 of P.L.1972, c.197 (C.39:6B-2);

(3) the date on which the person is required to submit to the prosecutor satisfactory proof of motor vehicle liability insurance

c. If the prosecutor determines that the person has failed to comply with paragraph (3) of subsection b. of this section the prosecutor may notify the court that the prosecutor is prepared to proceed with the prosecution of the offense and the court shall schedule the appropriate court proceedings.

d. A prosecutor who moves before the court to postpone proceedings against a person who violates the compulsory motor vehicle insurance law shall enter into a deferral agreement with that person.

e. If, after a minimum of six months from the date of the deferral agreement, the prosecutor is satisfied that the person maintained motor vehicle liability insurance, the prosecutor may move before the court to dismiss the charges for violating the compulsory motor vehicle insurance law.

If, at any time, the prosecutor finds that the person has failed to comply with the deferral agreement, the prosecutor may notify the court that the prosecutor is prepared to proceed with the prosecution of the offense and the court shall schedule court proceedings as appropriate.

f. The court shall assess a person who enters into a deferral agreement a surcharge of $245, of which amount:

(1) $120 shall be payable to the governing body of the county or municipality in which the person entered the agreement with a prosecutor pursuant to this section to pay for the cost of the Uninsured Vehicle Enforcement Diversion Program pursuant to this section; and

(2) $120 shall be payable for the cost of equipping, operating, and monitoring the Uninsured Vehicle Enforcement and Compliance Program established pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) including but not limited to, contractual payments to third party entities providing essential services and equipment for the detection of violations of the compulsory motor vehicle insurance law. The $120 assessment shall be payable as follows:

(a) in a matter where the summons was issued by a municipality's law enforcement agency, to that municipality;

(b) in a matter where the summons was issued by a county's law enforcement agency, to that county; and

(3) five dollars to the Public Employees' Retirement System, established pursuant to P.L.1954, c.84 (C.43:15A-7 et seq.).

3. Section 50 of P.L.1990, c.8 (C.17:33B-41) is amended to read as follows:

50. a. Upon the termination of a policy of motor vehicle liability insurance by cancellation for nonpayment of premium pursuant to section 2 of P.L.1968, c.158 (C.17:29C-7), notice of that cancellation shall be filed by the insurer with the [Division of] Motor [Vehicles] Vehicle Commission not later than 30 days following the effective date of that cancellation.

b. The [division] commission shall notify the person whose policy was canceled that, unless proof of motor vehicle liability insurance is filed with the [division] commission within 30 days of the notification or some other allowable circumstance exists and the [division] commission is notified of that circumstance within 30 days of the notification, the sanctions and penalties of this section shall apply.

c. If the [Director] Chief Administrator of the [Division of] Motor [Vehicles] Vehicle Commission has not received proof of motor vehicle liability insurance or other allowable circumstances within 30 days pursuant to subsection b. of this section, [he] the chief administrator shall suspend the registration of [such] the vehicle, except that:

(1) Suspension shall not be made under this subsection upon the basis of a cancellation of motor vehicle liability insurance if the registration certificate and registration plates of the motor vehicle are surrendered prior to the time at which the cancellation of insurance becomes effective. [Such surrender] Surrender shall be made to [such officers of] the [division] commission as the [director] chief administrator shall direct. For the purposes of this paragraph, the expiration of a registration without renewal of that registration shall be deemed to be a surrender of registration as of the date of expiration;

(2) Suspension shall not be made under this subsection upon a cancellation of motor vehicle liability insurance if the vehicle has been, or will be, prior to the date of that cancellation, removed from the United States in North America and the Dominion of Canada for the purpose of international traffic, provided that the owner of the vehicle, prior to the date of that cancellation, has filed with the [director] chief administrator a statement, in a form prescribed by him, indicating that the vehicle has been, or will be, so removed, and agreeing to notify the [director] chief administrator immediately upon return of the vehicle to the United States in North America or the Dominion of Canada. Upon receipt of the statement the [director] chief administrator shall restrict the use of the registration to such international traffic until new proof that motor vehicle liability insurance has been secured for the vehicle;

(3) Suspension need not be made under this subsection upon the basis of a cancellation of motor vehicle liability insurance if the period of time during which the motor vehicle remained both registered and uninsured was not greater than 15 days. The [director] chief administrator shall promulgate regulations governing the conditions under which suspension action may be withheld pursuant to this paragraph.

d. Notwithstanding the provisions of subsection c. of this section, an order of suspension may be rescinded if the registrant pays to the commissioner a civil penalty in the amount of $4 for each day up to 90 days for which motor vehicle liability insurance was not in effect. The provisions of this subsection shall apply only once during any 36-month period and only if the registrant surrenders the certificate of registration and registration plates to the [director] chief administrator not more than 90 days from the date of cancellation of motor vehicle liability insurance coverage or submits to the [director] chief administrator proof of motor vehicle liability insurance which took effect not more than 90 days from the cancellation of [his] the registrant’s previous motor vehicle liability insurance.

e. Any motor vehicle, the registration for which has been suspended pursuant to this section, shall not be registered or reregistered in the name of the same registrant, or in any other name where the [director] chief administrator has reasonable grounds to believe that such registration or reregistration will have the effect of defeating the purposes of this section, and no other motor vehicle shall be registered in the name of such person during the period of suspension.

f. [No registration] Registration plates shall not be returned to the registrant until proof of motor vehicle liability insurance is submitted to the [director] chief administrator.

g. If a registrant has not surrendered his certificate of registration and registration plates or obtained motor vehicle liability insurance within 90 days from the date of cancellation of motor vehicle liability insurance, the [director] chief administrator shall suspend the driver's license of any such registrant. The suspension shall take effect on the date specified in the order and shall remain in effect until termination of the suspension of the registrant's registration.

h. The [Director] Chief Administrator of the [Division of] Motor [Vehicles] Vehicle Commission shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to implement the provisions of this section. The [director] chief administrator may, by regulation, require that the provisions of this section shall be applicable to the termination of policies of motor vehicle liability insurance for reasons other than cancellation for nonpayment of premium, including nonrenewals.

i. Within 180 days of the effective date of this act the [Division of] Motor [Vehicles] Vehicle Commission shall develop a format for electronic reporting by insurers writing private passenger automobile insurance, to the [division] commission, on a real-time basis, information regarding the cancellation of policies of motor vehicle insurance, the issuance of new policies of motor vehicle insurance, and changes of vehicle on policies of motor vehicle insurance in force in order to verify compliance with the motor vehicle liability insurance requirements of section 1 of P.L.1972, c.197 (C.39:6B-1), and the mandatory automobile insurance requirements of section 4 of P.L.1998, c.21 (C.39:6A-3.1). Information shall be maintained by driver's license number of the named insured. Other information to be provided by insurers shall be established by the [director] chief administrator by regulation.

j. The [director] chief administrator shall establish an electronic [data base] database containing the information provided for in subsection i. of this section, which shall be made available to all law enforcement officers for the purpose of enforcing the mandatory motor vehicle insurance requirements of section 1 of P.L.1972, c.197 (C.39:6B-1). The information contained in the database shall be accessible to law enforcement officers via their computers, including computers located in law enforcement vehicles.

The [data base] database shall not be made available until every insurer writing private passenger insurance has complied with regulations of the [director] chief administrator and the information required by subsection i. of this section is reported on a real-time basis. The [Division of] Motor [Vehicles] Vehicle Commission shall establish security procedures to protect the confidentiality of the information [on] in the [data base] database, which shall preclude access to the information to any person not otherwise entitled to it under this or any other law.

k. The [data base] database shall be funded from the Uninsured Motorist Prevention Fund established pursuant to section 2 of P.L.1983, c.141 (C.39:6B-3).

(cf: P.L.1998, c.22, s.7)

4. This act shall take effect on the first day of the seventh month next following enactment.

STATEMENT

This bill establishes an “Uninsured Vehicle Enforcement and Compliance Program” and an “Uninsured Vehicle Enforcement Diversion Program.”

Under the “Uninsured Vehicle Enforcement and Compliance Program,” counties, municipalities, and law enforcement agencies would have the authority to enter into contractual agreements with automated license plate reader providers to provide the necessary technology and equipment. A law enforcement agency would be permitted to utilize the automated license plate readers for the purpose of enforcing the requirement that drivers maintain motor vehicle liability insurance. Specifically, law enforcement officers would be permitted to utilize automated license plate readers to determine whether a driver is uninsured. The bill also requires law enforcement officers to have access via computers located in law enforcement vehicles to the information contained in the insurance database maintained by the Motor Vehicle Commission (MVC).

The bill provides that access to the database is to be restricted to authorized prosecutors and law enforcement agency users in the program. Any entity with which a contract has been executed to provide or maintain the technology or equipment necessary to utilize automated license plate readers or the database would be entitled to access the data collected exclusively for the purposes of enforcing the provisions of the bill.

The bill requires a law enforcement officer to verify by sworn affidavit that a photograph generated by an automatic license plate reader system unit identifies a particular vehicle operating on the public roads or highways of this State and that the database confirmed that the vehicle was uninsured at the time such vehicle was being operated. The affidavit is to constitute probable cause for prosecution under the compulsory motor vehicle insurance law.

The bill requires the automated license plate data to be retained by the prosecuting authority and law enforcement agency when used as evidence and then purged thereafter. Any data collected or retained through the use of an automated license plate reader system is not to be used for purposes other than enforcing the motor vehicle compulsory motor vehicle insurance law. Images of the driver or motor vehicle occupants would not be used or maintained as evidence by any prosecuting authority or law enforcement agency. Any recorded image or information produced in connection with the automated license plate reader would not be deemed a public record under the “Open Public Records Act,” or the common law

concerning access to public records.

The “Uninsured Vehicle Enforcement and Compliance Program” would not take effect until the MVC verifies that at least 90 percent of the personal lines auto insurance market in the State submits insurance information to the commission’s database.

In addition, this bill establishes an “Uninsured Vehicle Enforcement Diversion Program” to allow county and municipal prosecutors to defer prosecution of a person who violates the compulsory motor vehicle insurance law. Under the program, a prosecutor may move before the court to postpone proceedings against a person who operates a motor vehicle without insurance. The prosecutor would have the sole discretion to determine if an offender qualifies for and is admitted to the program after considering:

(1) whether it is in the interest of public safety to postpone proceedings against the offender;

(2) the driving record of the offender;

(3) whether there are criminal complaints pending against the offender; and

(4) whether the offender has provided the prosecutor with satisfactory proof of motor vehicle liability insurance prior to the hearing.

The bill requires a prosecutor to notify a person who is referred to the diversion program. The notification is to include the date on which the violation occurred, a statement of the penalties for violating the compulsory motor vehicle insurance law, and the date on which the person is required to submit to the prosecutor satisfactory proof of motor vehicle liability insurance.

A prosecutor who determines that the person has failed to obtain motor vehicle liability insurance may notify the court that the prosecutor is prepared to proceed with prosecuting the offense and the court is to schedule court proceedings, as appropriate. A prosecutor who moves before the court to postpone proceedings against a person who violates the compulsory motor vehicle insurance law, is required to enter into a deferral agreement with that person. If, after a minimum of six months from the date of the deferral agreement, the prosecutor is satisfied that the person maintained motor vehicle liability insurance he or she may move before the court to dismiss the charges.

A person who enters into a deferral agreement is required to pay a surcharge of $245. Of the $240 assessment:

(1) $120 is to be paid to the county or municipality in which the person entered the agreement to pay for the cost of the Uninsured Vehicle Enforcement Diversion Program;

(2) $120 is to be paid to the municipal, county, or State authority that issued the summons for the cost of equipping, operating, and monitoring the Uninsured Vehicle Enforcement and Compliance

Program, including but not limited to, contractual payments to third party entities providing essential services and equipment for the detection of violations of the compulsory motor vehicle insurance law; and

(3) five dollars is to be paid to the Public Employees' Retirement System.