AN ACT STRENGTHENING ENFORCEMENT OF MANDATORY SECURITY REQUIREMENTS FOR MOTOR VEHICLES WITH A COMMERCIAL REGISTRATION.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 14-12g of the general statutes, as amended by section 2 of public act 05-282, is repealed and the following is substituted in lieu thereof (Effective January 1, 2006):

(a) (1) When a private passenger motor vehicle liability insurance policy has been cancelled and the Commissioner of Motor Vehicles determines that the owner of a registered motor vehicle is in violation of the mandatory security requirements of sections 14-12c and 38a-371, as amended by this act, the commissioner shall issue to such owner a notice of suspension of the registration involved.

(2) When an insurance policy that provides the security requirements imposed by law for a motor vehicle with a commercial registration has been cancelled and the Commissioner of Motor Vehicles determines that the security requirements for such vehicle have not been satisfied, the commissioner shall issue to the owner of such vehicle a notice of suspension of the registration involved.

(b) If a registered owner to whom notice of suspension was issued pursuant to subsection (a) of this section does not contest the determination that he or she has failed to maintain mandatory security, the commissioner may enter into a consent agreement with the owner, provided the owner presents satisfactory evidence of mandatory security and pays a civil penalty of two hundred dollars. The consent agreement shall provide that the registration of the motor vehicle shall not be suspended, or that any suspension imposed previously, pursuant to subsection (a) of this section, shall be rescinded, unless (1) the commissioner determines that on or after the effective date of the consent agreement the owner failed to continuously maintain the required security, and (2) the owner cannot establish to the satisfaction of the commissioner that the owner continuously maintained the required security after said effective date. Such consent agreement shall not operate to prevent the commissioner from cancelling, suspending or revoking a registration pursuant to any other provision of the general statutes.

(c) The commissioner may suspend the motor vehicle operator's license of any person whose registration has been suspended in accordance with the provisions of subdivision (1) of subsection (a) of this section, or section 14-12c and who, not later than thirty days after the date of such suspension, has not entered into a consent agreement, in accordance with the provisions of subsection (b) of this section, cancelled the registration or transferred ownership of the motor vehicle. Any person aggrieved by the decision of the commissioner to suspend [his] the person's license under this subsection shall, prior to the effective date of such suspension, be afforded an opportunity for a hearing in accordance with the provisions of chapter 54.

Sec. 2. Section 14-213b of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2006):

(a) No owner of any private passenger motor vehicle or a vehicle with a combination or commercial registration, as defined in section 14-1, registered or required to be registered in this state may operate or permit the operation of such vehicle without the security required by section 38a-371, as amended by this act, or with security insufficient to meet the minimum requirements of said section, or without any other security requirements imposed by law, as the case may be. Failure of the operator to produce an insurance identification card as required by section 14-217 shall constitute prima facie evidence that the owner has not maintained the security required by section 38a-371, as amended by this act, and this section.

(b) Any person convicted of violating any provision of subsection (a) of this section shall be fined not less than one hundred dollars nor more than one thousand dollars, except that any owner of a motor vehicle with a commercial registration who knowingly violates the provisions of subsection (a) of this section with respect to such vehicle shall be guilty of a class D felony.

(c) The Commissioner of Motor Vehicles shall suspend the registration, and the operator's license, if any, of an owner, for a first conviction of violating the provisions of subsection (a) of this section for a period of one month and for a second or subsequent conviction for a period of six months. No operator's license which has been suspended pursuant to this subsection shall be restored until the owner has provided evidence to the commissioner that he maintains the security required by section 38a-371, as amended by this act, or any other security requirements imposed by law for each motor vehicle registered in his name.

Sec. 3. Subsection (a) of section 38a-343a of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2006):

(a) Each insurance company which issues private passenger motor vehicle liability insurance policies in this state shall, each month, on a date specified by the commissioner, notify the Commissioner of Motor Vehicles of the cancellation by the insurance company of all such policies which occurred during the preceding month. [, provided, no such notification shall be made for any cancellation of any policy of commercial insurance.] The notice required shall include the name of the named insured in the policy, the policy number, the vehicle identification number of each automobile covered by the policy and the effective date of the policy's cancellation. The commissioner shall specify an acceptable method of notification. The method of notification specified may include computer tapes or electronic transmission. The failure of an insurance company to comply with the requirements of this section shall not affect the cancellation of any private passenger motor vehicle liability insurance policy.

Sec. 4. Subsection (d) of section 38a-371 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2006):

(d) [The] Except as provided in subsection (b) of section 14-213b, as amended by this act, the owner of any private passenger motor vehicle required to be registered in this state who operates it or permits it to be operated in this state is guilty of a class C misdemeanor if he fails to provide the security required by this section.

Sec. 5. (NEW) (Effective January 1, 2006) (a) At least once every six months, each owner of a motor vehicle described in subsection (a) of section 14-163c of the general statutes shall file with the Commissioner of Motor Vehicles evidence that the owner has in effect the security requirements imposed by law for each such motor vehicle. The evidence shall be filed in such form as the commissioner prescribes in accordance with a schedule established by said commissioner. At least once a year, the evidence of security shall be accompanied by a motor carrier identification report that meets the requirements of 49 CFR 390.19, as amended from time to time. The report shall be in such form as the commissioner prescribes.

(b) In addition to other penalties provided by law, the Commissioner of Motor Vehicles, after notice and opportunity for hearing in accordance with chapter 54 of the general statutes, may suspend the registration of each motor vehicle registered in the name of any owner who fails to file a motor carrier identification report or to provide satisfactory evidence of the security requirements imposed by law.

Sec. 6. (Effective January 1, 2006) Not later than January 1, 2007, the Commissioner of Motor Vehicles shall submit a report to the joint standing committees of the General Assembly having cognizance of matters relating to insurance and transportation with respect to the progress of the Department of Motor Vehicles in implementing the provisions of section 5 of this act. Such report shall be submitted in accordance with section 11-4a of the general statutes.

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