SENATE, No. 2047

STATE OF NEW JERSEY

INTRODUCED MAY 8, 1997

By Senators CARDINALE, LITTELL, Kyrillos, Ciesla, Kosco, Palaia, Cafiero, Ewing, Bubba, Bryant, Casey, Lesniak, Girgenti, Lipman, LaRossa, Inverso, Connors, Bark, Gormley, Singer, Zane, O'Connor, Sacco, Lynch and McGreevey

An Act concerning uninsured motorists, amending P.L.1983, c.141, supplementing Title 39 of the Revised Statutes, and repealing section 50 of P.L.1990, c.8.

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

    1. (New section) Sections 1 through 6 of this act shall be known and may be cited as the "Uninsured Motorist Identification Database Program Act."

    2. (New section) As used in sections 2 through 6 of this act:

    "Fund" means the Uninsured Motorist Prevention Fund established in section 2 of P.L.1983, c.141 (C.39:6B-3).

    "Database" means the Uninsured Motorist Identification Database established pursuant to section 3 of this act.

    "Division of Motor Vehicles" or "Division" means the Division of Motor Vehicles in the Department of Transportation.

    3. (New section) a. There is created in the division the Uninsured Motorist Database Program to establish an Uninsured Motorist Identification Database to verify compliance of owners and registrants of motor vehicles with the motor vehicle liability insurance requirements of section 1 of P.L.1972, c.197 (C.39:6B-1).

    b. The division shall develop and maintain a computer database containing the following:

    (1) information supplied by insurers pursuant to section 4 of this act;

    (2) the name, date of birth, address and driver's license number of all persons with current driver's licenses in this State; and

    (3) all current motor vehicle registrations.

    c. The division shall, at least monthly:

    (1) update the database with the motor vehicle insurance information provided by the insurers in accordance with section 4 of this act; and

    (2) compare all current motor vehicle registrations against the database.

    d. The database shall be developed and maintained so that State and local law enforcement agencies can efficiently access the database.

    4. (New section) a. (1) Each insurer that issues a policy that includes motor vehicle liability coverage shall, before the seventh day of each calendar month, provide to the division a record of each motor vehicle insurance policy in effect as of the previous month that was issued by the insurer.

    (2) This subsection does not preclude more frequent reporting.

    b. The record shall include:

    (1) the name, year, and driver's license number of each insured owner or operator, and the address of the named insured;

    (2) the make, year and vehicle identification number of each insured vehicle; and

    (3) the policy number, effective date and expiration date of each policy.

    c. Each insurer shall provide this information on magnetic tape or in another form the division agrees to accept.

    d. The division shall fine an insurer $250 for each day during the first 10 days that the insurer fails to comply with the provisions of this section and $2,500 for each day thereafter that such failure continues. If an insurer shows that the failure to comply with the provisions of this section was inadvertent, accidental or the result of excusable neglect, the division shall excuse the fine.

    5. (New section) a. If the comparison under section 3 of this act shows that a motor vehicle is registered but not insured, the division shall notify the owner of the motor vehicle that the owner has 30 days to provide:

    (1) proof of meeting the requirements of section 1 of P.L.1972, c.197 (C.39:6B-1) with a policy that is fully paid for at least six months; or

    (2) proof of exemption from the requirements of section 1 of P.L.1972, c.197 (C.39:6B-1).

    b. If the owner of a motor vehicle fails to provide satisfactory proof of compliance pursuant to subsection a. of this section within the time allowed, the division shall impound the uninsured motor vehicle.

    c. (1) If, within 45 days of the impoundment of the motor vehicle, proof of compliance with, or exemption from, the provisions of section 1 of P.L.1972, c.197 (C.39:6B-1) is not presented, and all outstanding warrants against the vehicle, the reasonable costs of removal and storage of the motor vehicle, and a $500 administrative fee for the division are not paid, the motor vehicle shall be sold by the division at public auction. The division shall give notice of the sale by certified mail to the owner and to the holder of any security interest filed with the division, and by publication in a form to be prescribed by the director by one insertion, at least five days before the date of the sale, in one or more newspapers published in this State and circulating in the municipality and county from which the motor vehicle was impounded.

    (2) At any time prior to the sale, the owner of the motor vehicle or other person entitled to the motor vehicle may reclaim possession of the motor vehicle by presenting proof of compliance with, or exemption from, the requirements of section 1 of P.L.1972, c.197 (C.39:6B-1) and upon payment of all outstanding warrants against the vehicle, the reasonable costs of removal and storage of the motor vehicle, and a $500 administrative fee for the division. Prior to the sale of the motor vehicle, title to the impounded motor vehicle shall vest in the division.

    (3) Any proceeds obtained from the sale of a vehicle at public auction pursuant to paragraph (2) of this subsection in excess of the amount owed to the lien holder and the division for the payment of all outstanding warrants on the vehicle, the reasonable costs of removal and storage of the motor vehicle, and a $500 administrative fee for the division, shall be deposited in the fund.

    6. (New section) At the time application is made for registration or renewal of registration of a motor vehicle pursuant to Article 2 of chapter 3 of Title 39 of the Revised Statutes, the division shall impose and collect an uninsured motorist identification fee of $1 on each motor vehicle. The revenue generated shall be deposited in the fund.

    7. Section 2 of P.L.1983, c.141 (C.39:6B-3) is amended to read as follows:

    2. The Uninsured Motorist Prevention Fund (hereinafter referred to as the "fund") is established as a nonlapsing, revolving fund into which shall be deposited: all revenues from the fines imposed pursuant to section 2 of P.L.1972, c.197 (C.39:6B-2); administrative fees and excess proceeds from the sale of motor vehicles pursuant to subsection c. of section 5 of P.L. , c. (C. )(now before the Legislature as this bill); and uninsured motorist identification fees imposed and collected pursuant to section 6 of P.L. , c. (C. )(now before the Legislature as this bill). Interest received on moneys in the fund shall be credited to the fund. The fund shall be administered by the Division of Motor Vehicles in the Department of [Law and Public Safety] Transportation. Moneys in the fund shall be allocated and used for the purpose of the administrative expenses of the fund [and]; enforcement of the compulsory motor vehicle insurance law, P.L.1972, c.197 (C.39:6B-1 et seq.) by the Division of Motor Vehicles; and the implementation of the Uninsured Motorist Identification Database Program created pursuant to P.L. , c. (C. )(now before the Legislature as this bill).

(cf: P.L.1983, c.141, s.2)

    8. Section 50 of P.L.1990, c.8 (C.17:33B-41) is repealed.

    9. This act shall take effect on the 360th day following enactment, except that sections 6 and 7 shall take effect immediately.

STATEMENT

    This bill establishes the "Uninsured Motorist Identification Database Program" in the Division of Motor Vehicles to compare, by computer matching, the motor vehicles registered in this State with the motor vehicles insured in this State. Insurers are required to provide the insurance information every month to the division for this comparison.

    If the comparison shows that a motor vehicle is not insured, the division must notify the owner that he has 30 days to provide proof of liability insurance. If the owner fails to provide that proof within that time, the division shall impound the uninsured motor vehicle. If, within 45 days of the impoundment, the proof of liability insurance is not presented and all outstanding warrants against the vehicle, the reasonable costs of removal and storage of the motor vehicle, and a $500 administrative fee for the division are not paid, the vehicle shall be sold at public auction. The owner and the holder of any security interest in the vehicle shall be notified of the pending sale and a notice of the sale must be published in a newspaper circulating in the municipality and county in which the vehicle was impounded. After the amount of any lien and the foregoing expenses, fines and costs are deducted, the proceeds from the sale of the motor vehicle shall be deposited in Uninsured Motorist Prevention Fund.

"Uninsured Motorist Identification Database Program Act."