Florida Senate - 2020                        COMMITTEE AMENDMENT
       Bill No. SB 1606
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/04/2020           .                                

       The Committee on Banking and Insurance (Perry) recommended the
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Present subsection (5) of section 316.646,
    6  Florida Statutes, is redesignated as subsection (6), and a new
    7  subsection (5) is added to that section, to read:
    8         316.646 Security required; proof of security and display
    9  thereof.—
   10         (5)Eighteen months after implementation of the motor
   11  vehicle insurance online verification system established in s.
   12  324.252, a law enforcement officer, during a traffic stop or
   13  crash investigation, shall access information from the online
   14  verification system to establish compliance with this chapter
   15  and chapter 324.
   16         Section 2. Paragraph (f) is added to subsection (5) of
   17  section 320.02, Florida Statutes, to read:
   18         320.02 Registration required; application for registration;
   19  forms.—
   20         (5)
   21         (f)Upon implementation of the motor vehicle insurance
   22  online verification system established in s. 324.252, the online
   23  verification may be used in lieu of the verification procedures
   24  in this subsection.
   25         Section 3. Section 324.252, Florida Statutes, is created to
   26  read:
   27         324.252Insurance online verification system.—The
   28  department shall establish an online verification system for
   29  motor vehicle insurance. The goal of the system is to identify
   30  uninsured motorists and aid the department in the enforcement of
   31  the financial responsibility law.
   32         (1)The online verification system must:
   33         (a)Be accessible through electronic means for use by any
   34  government agency, including any court or law enforcement
   35  agency, in carrying out its functions; by any private person or
   36  entity acting on behalf of a federal, state, or local agency in
   37  carrying out its functions; by any other entity authorized by
   38  the department; and by any insurer authorized by the Office of
   39  Insurance Regulation to provide motor vehicle insurance. The
   40  department may also establish a web portal or other mechanism
   41  that provides the general public with the ability to confirm
   42  whether a particular motor vehicle is currently insured.
   43         (b)In real time, send requests to insurers for
   44  verification of evidence of insurance for motor vehicles
   45  registered in this state, and receive confirmation in real time
   46  from insurers via electronic means consistent with the
   47  specifications and standards of the Insurance Industry Committee
   48  on Motor Vehicle Administration (IICMVA), with enhancements,
   49  additions, and modifications as required by the department.
   50  However, the enhancements, additions, and modifications may not
   51  conflict with, nullify, or add requirements that are materially
   52  inconsistent with the specifications or standards of the IICMVA.
   53         (c)Be operational by July 1, 2023. The Motor Vehicle
   54  Insurance Online Verification Task Force established in s.
   55  324.255 must conduct a pilot program for at least 9 months to
   56  test the system before statewide use. The system may not be used
   57  in any enforcement action until successful completion of the
   58  pilot program.
   59         (d)Be available 24 hours a day, except as provided in
   60  paragraph (2)(a), to verify the insurance status of any vehicle
   61  registered in this state through the insurer’s National
   62  Association of Insurance Commissioners (NAIC) company code or
   63  Florida company code, in combination with other identifiers,
   64  including vehicle identification number, car make, car model,
   65  year, registered owner’s name, policy number, levels or types of
   66  coverage, or other characteristics or markers as specified by
   67  the Motor Vehicle Insurance Online Verification Task Force.
   68         (e)Include appropriate safeguards and controls to prevent
   69  misuse or unauthorized access.
   70         (f)Include a disaster recovery plan to ensure service
   71  continuity in the event of a disaster.
   72         (g)Include information that enables the department to make
   73  inquiries of evidence of insurance by using multiple data
   74  elements for greater matching accuracy, specifically the
   75  insurer’s NAIC company code, in combination with other
   76  identifiers, such as vehicle identification number, policy
   77  number, or other characteristics or markers as specified by the
   78  Motor Vehicle Insurance Online Verification Task Force or the
   79  department.
   80         (h)Include a self-reporting mechanism for insurers with
   81  fewer than 2,000 vehicles insured within this state or for
   82  individual entities that are self-insured.
   83         (2)The department has the following powers and duties:
   84         (a)Upon an insurer’s advance notice to the department, the
   85  department shall allow online services established by the
   86  insurer to have reasonable downtime for system maintenance and
   87  other work, as needed. An insurer is not subject to
   88  administrative penalties or disciplinary actions when its online
   89  services are not available under such circumstances or when an
   90  outage is unplanned by the insurer and is reasonably outside its
   91  control.
   92         (b)Upon recommendation of the Motor Vehicle Insurance
   93  Online Verification Task Force, the department may develop and
   94  operate its own system or competitively procure a private vendor
   95  that has personnel with extensive operational and management
   96  experience in the development, deployment, and operation of
   97  insurance online verification systems.
   98         (c)The department and its private vendor, if any, shall
   99  each maintain a contact person for the insurers during the
  100  establishment, implementation, and operation of the system.
  101         (d)The department may enter into agreements governing the
  102  use of the system with any public or private entity accessing
  103  the system to verify insurance coverage.
  104         (e)The department shall maintain a historical record of
  105  the system data for 6 months after the date of any verification
  106  request and response.
  107         (3)An insurance company authorized to issue insurance
  108  policies for motor vehicles registered in this state:
  109         (a)Shall comply with the verification requirements of
  110  motor vehicle insurance for every motor vehicle insured by that
  111  company in this state.
  112         (b)Shall maintain policyholder records in order to confirm
  113  insurance coverage for 3 years after the date of any
  114  verification request and response.
  115         (c)Shall cooperate with the department in establishing,
  116  implementing, and maintaining the system.
  117         (d)Is immune from civil liability for good faith efforts
  118  to comply with this section. An online verification request or
  119  response may not be used as the basis of a civil action against
  120  an insurer.
  121         (4)A law enforcement officer, during a traffic stop or
  122  crash investigation, shall query information from the online
  123  verification system to establish compliance with this chapter.
  124         (5)This section does not apply to vehicles insured under
  125  commercial motor vehicle coverage. As used in this subsection,
  126  the term “commercial motor vehicle coverage” means any coverage
  127  provided to an insured under a commercial coverage form and
  128  rated from a commercial manual approved by the Office of
  129  Insurance Regulation. However, insurers of such vehicles may
  130  participate in the online verification system on a voluntary
  131  basis.
  132         (6)The department may adopt rules to administer this
  133  section.
  134         Section 4. Section 324.255, Florida Statutes, is created to
  135  read:
  136         324.255Motor Vehicle Insurance Online Verification Task
  137  Force.—There is created the Motor Vehicle Insurance Online
  138  Verification Task Force within the department.
  139         (1)The task force shall:
  140         (a)Facilitate the implementation of the motor vehicle
  141  insurance online verification system established in s. 324.252.
  142         (b)Assist in the development of a detailed guide for
  143  insurers by providing data fields and other information
  144  necessary for compliance with the online verification system.
  145         (c)Coordinate a pilot program and conduct the program for
  146  at least 9 months to test the online verification system and
  147  identify necessary changes to be implemented before statewide
  148  use.
  149         (d)Issue recommendations based on periodic reviews of the
  150  online verification system.
  151         (2)The task force shall consist of 10 voting members and 1
  152  nonvoting member.
  153         (a)By July 31 of the year this section becomes effective,
  154  the 10 voting members shall be appointed in the following
  155  manner:
  156         1.Three representatives of the department, representing
  157  the Florida Highway Patrol, the Division of Motorist Services,
  158  and the Information Systems Administration, appointed by the
  159  executive director of the department.
  160         2.One representative of the Office of Insurance
  161  Regulation, appointed by the Commissioner of Insurance
  162  Regulation.
  163         3.Three representatives of the motor vehicle insurance
  164  industry, appointed by the Chief Financial Officer as follows:
  165         a.One member must represent the motor vehicle insurer with
  166  the largest national market share as of December 31 of the year
  167  before the appointment.
  168         b.One member must represent the motor vehicle insurer with
  169  the largest Florida market share as of December 31 of the year
  170  before the appointment.
  171         c.One member must be selected from a list of
  172  representatives recommended by the Insurance Industry Committee
  173  on Motor Vehicle Administration.
  174         4.One representative of the Department of Financial
  175  Services, appointed by the Chief Financial Officer.
  176         5.One representative of the Division of State Technology,
  177  appointed by the Secretary of the Department of Management
  178  Services.
  179         6.One member who must be a member of local law
  180  enforcement, appointed by the executive director of the
  181  department.
  182         (b)The executive director of the department, who shall be
  183  a nonvoting member, shall serve as chair of the task force.
  184         (3)By September 30 of the year this section becomes
  185  effective, the task force shall meet to establish procedures for
  186  the conduct of its business, and the voting members shall elect
  187  a vice chair at that meeting. The task force shall meet at the
  188  call of the chair, who shall prepare the agenda for each meeting
  189  with the consent of the task force. A majority of the voting
  190  members of the task force constitutes a quorum, and a quorum is
  191  necessary for the purpose of voting on any action or
  192  recommendation of the task force. All meetings shall be held in
  193  Tallahassee.
  194         (4)The department shall provide the task force members
  195  with administrative and technical support. Task force members
  196  shall serve without compensation and are not entitled to
  197  reimbursement for per diem or travel expenses.
  198         (5)By July 1 of the third year after this section becomes
  199  effective, the task force shall complete its work and submit its
  200  final report evaluating the online verification system’s
  201  effectiveness and making recommendations for system enhancements
  202  to the department, the President of the Senate, and the Speaker
  203  of the House of Representatives. Upon submission of the report,
  204  the task force shall expire.
  205         Section 5. The amendments made by this act to ss. 316.646
  206  and 320.02, Florida Statutes, and the creation of ss. 324.252
  207  and 324.255, Florida Statutes, by this act shall take effect
  208  upon a specific appropriation.
  209         Section 6. This act shall take effect July 1, 2020.
  211  ================= T I T L E  A M E N D M E N T ================
  212  And the title is amended as follows:
  213         Delete everything before the enacting clause
  214  and insert:
  215                        A bill to be entitled                      
  216         An act relating to insurance; amending s. 316.646,
  217         F.S.; requiring law enforcement officers, after a
  218         certain timeframe and under certain circumstances, to
  219         access information from the motor vehicle insurance
  220         online verification system for certain purposes;
  221         amending s. 320.02, F.S.; authorizing the use of the
  222         online verification of insurance for motor vehicle
  223         registration purposes; creating s. 324.252, F.S.;
  224         requiring the Department of Highway Safety and Motor
  225         Vehicles to establish an online verification system
  226         for motor vehicle insurance; providing system
  227         requirements; providing powers and duties of the
  228         department; providing requirements for insurers and
  229         law enforcement officers; providing immunity from
  230         civil liability to insurers for certain good faith
  231         efforts; providing applicability; defining the term
  232         “commercial motor vehicle coverage”; authorizing the
  233         department to adopt rules; creating s. 324.255, F.S.;
  234         creating the Motor Vehicle Insurance Online
  235         Verification Task Force within the department;
  236         providing duties of the task force; specifying the
  237         composition of the task force; providing meeting
  238         requirements; requiring the department to provide
  239         certain support to the task force; providing that task
  240         force members shall serve without compensation and are
  241         not entitled to certain reimbursement; providing the
  242         date by which the task force must complete its work
  243         and submit its final report to the department and the
  244         Legislature; providing for expiration of the task
  245         force; providing contingent effect; providing an
  246         effective date.