Establishes a computer database for insured motor vehicles. Authorizes license revocation and license plate confiscation for uninsured vehicles.

A BILL FOR AN ACT

SECTION 1. Chapter 431, article 10C, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§431:10C-    Database for motor vehicle insurance; establishment; use. (a) The insurance commissioner shall establish an on-line computer network and database between its office and all insurers.

(b) Within thirty days of any registration, renewal of registration, or transfer of registration of any motor vehicle, the director of finance of each county shall be required to input the names of the registered and legal owners of the vehicle and the vehicle identification number into the database.

(c) Within thirty days of commencement of insurance coverage, all insurers shall be required to input the vehicle identification number, the motor vehicle insurance policy number, the name of the insurer, and the name of the policyholder into the database.

(d) Immediately upon the cancellation or nonrenewal of any motor vehicle insurance policy, the insurer shall delete that information from the insurance identification database. Any motor vehicle insurance policy is considered in effect until the information is deleted from the insurance identification database.

(e) The insurance commissioner shall send written notice to the legal or registered owner of any vehicle for which no motor vehicle insurance policy is in effect for a period of no more than ten days, requesting the legal or registered owner to produce a valid motor vehicle insurance identification card or a valid certificate of self-insurance within two weeks of the notice. If the legal or registered owner is unable to provide the proof of insurance, the insurance commissioner shall notify the appropriate director of finance of the lack of insurance coverage on the motor vehicle.

(f) Upon receiving notice from the director of finance, the director of finance shall take custody of the vehicle's certificate of registration and license plates, and immediately flag the motor vehicle computer files to prevent the owner from obtaining a duplicate certificate of registration, replacement license plates and emblem or renewing the vehicle's registration. The director of finance shall destroy the surrendered certificate of registration and license plates.

(g) Upon receiving convincing proof of insurance for the motor vehicle, the insurance commissioner shall unflag the motor vehicle computer system and allow the vehicle owner to purchase a duplicate certificate of registration and plates and emblem replacement for the vehicle."

SECTION 2. 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 insurance commissioner to implement an on-line computer network and database that will verify motor vehicle insurance coverage. The sum appropriated shall be expended by the department of commerce and consumer affairs for the purposes of this Act.

SECTION 3. 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 each of the counties to submit the required information to the computer database implemented by the department of transportation. The specific county appropriations are as follows:

1. City and county of Honolulu $

2. Hawaii county $

3. Maui county $

4. Kauai county $

The sums appropriated shall constitute the State's share of the cost of mandated programs under article VIII, section 5 of the state constitution.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2001.