Committee/Subcommittee Amendment — Bill No. PCS for HB 895 (2020), Amendment No. 1

Summary

Amendment No. 1 to Bill No. PCS for HB 895 (2020), offered by Representative Santiago before the Insurance & Banking Subcommittee and published on 1/27/2020. The amendment removes lines 163-358 and inserts new sections on motor vehicle insurance verification. It amends section 316.646 so that law enforcement officers use the online verification system during traffic stops or crash investigations, and adds paragraph (f) to section 320.02 on registration. It creates section 324.252, directing the department to establish an insurance online verification system, and section 324.255, creating the Motor Vehicle Insurance Online Verification Task Force with a pilot program of at least 9 months. Section 6 provides that Sections 2 through 5 take effect upon a specific appropriation.

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                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                            Bill No. PCS for HB 895      (2020)
       Amendment No. 1




            COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                          (Y/N)
       ADOPTED AS AMENDED               (Y/N)
       ADOPTED W/O OBJECTION            (Y/N)
       FAILED TO ADOPT                  (Y/N)
       WITHDRAWN                        (Y/N)
       OTHER


1      Committee/Subcommittee hearing bill:        Insurance & Banking
2      Subcommittee
3      Representative Santiago offered the following:
4
5           Amendment
6           Remove lines 163-358 and insert:
7           Section 2.     Subsection (5) of section 316.646, Florida
8      Statutes, is renumbered as subsection (6), and a new subsection
9      (5) is added to that section, to read:
10          316.646     Security required; proof of security and display
11     thereof.—
12          (5)    Eighteen months after implementation of the motor
13     vehicle insurance online verification system established in s.
14     324.252, a law enforcement officer, during a traffic stop or
15     crash investigation, shall access information from the online
16     verification system to establish compliance with this chapter
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                                           Bill No. PCS for HB 895   (2020)
       Amendment No. 1


17     and chapter 324.
18          Section 3.    Paragraph (f) is added to subsection (5) of
19     section 320.02, Florida Statutes, to read:
20          320.02    Registration required; application for
21     registration; forms.—
22          (5)
23          (f)   Upon implementation of the motor vehicle insurance
24     online verification system established in s. 324.252, the online
25     verification may be used in lieu of the verification procedures
26     in this subsection.
27          Section 4.    Section 324.252, Florida Statutes, is created
28     to read:
29          324.252    Insurance online verification system.—The
30     department shall establish an online verification system for
31     motor vehicle insurance. The goal of the system is to identify
32     uninsured motorists and aid the department in the enforcement of
33     the financial responsibility law.
34          (1)   The online verification system must:
35          (a)   Be accessible through electronic means for use by any
36     government agency, including any court or law enforcement
37     agency, in carrying out its functions, or any private person or
38     entity acting on behalf of a Federal, State, or local agency in
39     carrying out its functions, any other entities authorized by the
40     department, and insurers authorized by the Office of Insurance
41     Regulation to provide motor vehicle insurance. The department
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42     may also establish a web portal or other mechanism that provides
43     the general public with the ability to confirm whether a
44     particular vehicle is currently insured.
45          (b)   In real time send requests to insurers for
46     verification of evidence of insurance for motor vehicles
47     registered in this state, and receive confirmation in real time
48     from insurers via electronic means consistent with the
49     specifications and standards of the Insurance Industry Committee
50     on Motor Vehicle Administration (IICMVA), with enhancements,
51     additions, and modifications as required by the department.
52     However, the enhancements, additions, and modifications may not
53     conflict with, nullify, or add requirements that are materially
54     inconsistent with the specifications or standards of the IICMVA.
55          (c)   Be operational within 3 years after this act becoming
56     effective. The Motor Vehicle Insurance Online Verification Task
57     Force established in s. 324.255 must conduct a pilot program for
58     at least 9 months to test the system before statewide use. The
59     system may not be used in any enforcement action until
60     successful completion of the pilot program.
61          (d)   Be available 24 hours a day, except as provided in
62     paragraph (2)(a), to verify the insurance status of any vehicle
63     registered in this state through the insurer's National
64     Association of Insurance Commissioners (NAIC) company code,
65     Florida Code in combination with other identifiers including
66     vehicle identification number, car make, car model, year,
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67     registered owner's name, policy number, levels/types of
68     coverage, or other characteristics or markers as specified by
69     the Motor Vehicle Insurance Online Verification Task Force.
70          (e)   Include appropriate safeguards and controls to prevent
71     misuse or unauthorized access.
72          (f)   Include a disaster recovery plan to ensure service
73     continuity in the event of a disaster.
74          (g)   Include information that enables the department to
75     make inquiries of evidence of insurance by using multiple data
76     elements for greater matching accuracy, specifically the
77     insurer's NAIC company code, in combination with other
78     identifiers such as vehicle identification number, policy
79     number, or other characteristics or markers as specified by the
80     Motor Vehicle Insurance Online Verification Task Force or the
81     department.
82          (h)   Include a self-reporting mechanism for insurers with
83     fewer than 2,000 vehicles insured within this state or for
84     individual entities that are self-insured.
85          (2)   The department has the following powers and duties:
86          (a)   Upon an insurer's advance notice to the department,
87     the department shall allow online services established by the
88     insurer to have reasonable downtime for system maintenance and
89     other work, as needed. An insurer is not subject to
90     administrative penalties or disciplinary actions when its online
91     services are not available under such circumstances or when an
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92      outage is unplanned by the insurer and is reasonably outside its
93      control.
94           (b)   Upon recommendation of the Motor Vehicle Insurance
95      Online Verification Task Force, the department may develop and
96      operate its own system or competitively procure a private vendor
97      that has personnel with extensive operational and management
98      experience in the development, deployment, and operation of
99      insurance online verification systems.
100          (c)   The department and its private vendor, if any, shall
101     each maintain a contact person for the insurers during the
102     establishment, implementation, and operation of the system.
103          (d)The department is authorized to enter into agreements
104     governing the use of the system with any public or private
105     entity accessing the system to verify insurance coverage.
106          (e)   The department shall maintain a historical record of
107     the system data for 3 years after the date of any verification
108     request and response.
109          (3)   An insurance company authorized to issue insurance
110     policies for motor vehicles registered in this state:
111          (a)   Shall comply with the verification requirements of
112     motor vehicle insurance for every motor vehicle insured by that
113     company in this state.
114          (b)   Shall maintain policyholder records in order to
115     confirm insurance coverage for 3 years after the date of any
116     verification request and response.
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117          (c)   Shall cooperate with the department in establishing,
118     implementing, and maintaining the system.
119          (d)   Is immune from civil liability for good faith efforts
120     to comply with this section. An online verification request or
121     response may not be used as the basis of a civil action against
122     an insurer.
123          (4)   A law enforcement officer, during a traffic stop or
124     crash investigation, shall query information from the online
125     verification system to establish compliance with this chapter.
126          (5)   This section does not apply to vehicles insured under
127     commercial motor vehicle coverage. As used in this subsection,
128     the term "commercial motor vehicle coverage" means any coverage
129     provided to an insured under a commercial coverage form and
130     rated from a commercial manual approved by the Office of
131     Insurance Regulation. However, insurers of such vehicles may
132     participate in the online verification system on a voluntary
133     basis.
134          (6)   The department may adopt rules to administer this
135     section.
136          Section 5.   Section 324.255, Florida Statutes, is created
137     to read:
138          324.255   Motor Vehicle Insurance Online Verification Task
139     Force.—There is created the Motor Vehicle Insurance Online
140     Verification Task Force within the department.
141          (1)   The task force shall:
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142            (a)    Facilitate the implementation of the motor vehicle
143     insurance online verification system established in s. 324.252.
144            (b)    Assist in the development of a detailed guide for
145     insurers by providing data fields and other information
146     necessary for compliance with the online verification system.
147            (c)    Coordinate a pilot program and conduct the program for
148     at least 9 months to test the online verification system and
149     identify necessary changes to be implemented before statewide
150     use.
151            (d)    Issue recommendations based on periodic reviews of the
152     online verification system.
153            (2)    The task force shall consist of ten voting members and
154     one nonvoting member.
155            (a)    The nine voting members shall be appointed by July 31
156     of the year this section becomes effective, in the following
157     manner:
158            1.    Three representatives of the department, representing
159     the Florida Highway Patrol, the Division of Motorist Services,
160     and the Information Systems Administration, appointed by the
161     executive director of the department.
162            2.    One representative of the Office of Insurance
163     Regulation, appointed by the Commissioner of Insurance.
164            3.    Three representatives of the motor vehicle insurance
165     industry, appointed by the Chief Financial Officer as follows:
166            a.    One member must represent the motor vehicle insurer
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167     with the largest national market share as of December 31 of the
168     year prior to the appointment.
169          b.    One member must represent the motor vehicle insurer
170     with the largest Florida market share as of December 31 of the
171     year prior to the appointment.
172          c.    One member must be selected from a list of
173     representatives recommended by the Insurance Industry Committee
174     on Motor Vehicle Administration.
175          4.    One representative of the Department of Financial
176     Services, appointed by the Chief Financial Officer.
177          5.    One representative of the Division of State Technology,
178     appointed by the secretary of the Department of Management
179     Services.
180          6. One member who must be a member of local law
181     enforcement, appointed by the executive director of the
182     department.
183          (b)    The executive director of the department, who shall be
184     a nonvoting member, shall serve as chair of the task force.
185          (3)    By September 30 of the year to this section becomes
186     effective, the task force shall meet to establish procedures for
187     the conduct of its business, and the voting members shall elect
188     a vice chair at that meeting. The task force shall meet at the
189     call of the chair, who shall prepare the agenda for each meeting
190     with the consent of the task force. A majority of the voting
191     members of the task force constitutes a quorum, and a quorum is
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192     necessary for the purpose of voting on any action or
193     recommendation of the task force. All meetings shall be held in
194     Tallahassee.
195          (4)   The department shall provide the task force members
196     with administrative and technical support. Task force members
197     shall serve without compensation and are not entitled to
198     reimbursement for per diem or travel expenses.
199          (5)   By July 1 of the third year following this section
200     becoming effective, the task force shall complete its work and
201     submit its final report evaluating the online verification
202     system's effectiveness and making recommendations for system
203     enhancements to the department, the President of the Senate, and
204     the Speaker of the House of Representatives. Upon submission of
205     the report, the task force shall expire.
206          Section 6. Sections 2 through 5 of this act shall take
207     effect upon a specific appropriation.
208
209




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