Florida Senate - 2020 COMMITTEE AMENDMENT Bill No. SB 1606 Ì778872QÎ778872 LEGISLATIVE ACTION Senate . House Comm: RCS . 02/04/2020 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Perry) recommended the following: 1 Senate Amendment (with title amendment) 2 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: 27 324.252 Insurance 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: 136 324.255 Motor 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. 210 211 ================= 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.