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H.B. 17
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UNINSURED MOTORIST IDENTIFICATION
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DATABASE PROGRAM AMENDMENTS
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2006 GENERAL SESSION
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STATE OF UTAH
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Chief Sponsor: Joseph G. Murray
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Senate Sponsor:
____________
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LONG TITLE
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General Description:
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This bill modifies the Insurance Code and the Motor Vehicles Code by amending
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provisions related to the Uninsured Motorist Identification Database Program.
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Highlighted Provisions:
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This bill:
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. reduces the number of consecutive months that a vehicle must show on the
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uninsured motorist identification database as being uninsured before the first
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warning letter is sent to the vehicle owner;
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. requires certain insurers that issue a policy that includes certain motor vehicle
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coverages to provide a record of coverage before the seventh and twenty-first day of
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each calendar month rather than once a month to the Department of Public Safety's
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designated agent;
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. requires the designated agent to update and compare the database with vehicle
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registrations for certain motor vehicle coverages at least twice a month rather than
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monthly; and
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. makes technical changes.
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Monies Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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31A-22-315, as last amended by Chapter 90, Laws of Utah 2004
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41-12a-803, as last amended by Chapter 32, Laws of Utah 2003
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41-12a-804, as last amended by Chapter 345, Laws of Utah 2000
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
31A-22-315
is amended to read:
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31A-22-315. Motor vehicle insurance reporting -- Penalty.
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(1) As used in this section, "commercial motor vehicle insurance coverage" means an
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insurance policy that:
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(a) includes motor vehicle liability coverage, uninsured motorist coverage,
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underinsured motorist coverage, or personal injury coverage;
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(b) is provided under a commercial motor vehicle, garage, or truck form; and
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(c) is rated from either a commercial manual or rating rule as filed and approved by the
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department.
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[(1)] (2) (a) [Each] Except as provided in Subsection (2)(b), each insurer that issues a
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policy that includes motor vehicle liability coverage, uninsured motorist coverage,
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underinsured motorist coverage, or personal injury coverage under this part shall before the
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seventh and twenty-first day of each calendar month provide to the Department of Public
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Safety's designated agent selected in accordance with Title 41, Chapter 12a, Part 8, Uninsured
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Motorist Identification Database Program, a record of each motor vehicle insurance policy in
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effect for vehicles registered or garaged in Utah as of the previous [month] submission that was
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issued by the insurer.
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(b) Each insurer that issues commercial motor vehicle insurance coverage shall before
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the seventh day of each calendar month provide to the Department of Public Safety's
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designated agent selected in accordance with Title 41, Chapter 12a, Part 8, Uninsured Motorist
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Identification Database Program, a record of each commercial motor vehicle insurance policy
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in effect for vehicles registered or garaged in Utah as of the previous month that was issued by
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the insurer.
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[(b)] (c) This Subsection [(1)] (2) does not preclude more frequent reporting.
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[(2)] (3) The record shall include:
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(a) the name, date of birth, and driver license number of each insured owner or
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operator, and the address of the named insured;
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(b) the make, year, and vehicle identification number of each insured vehicle; and
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(c) the policy number, effective date, and expiration date of each policy.
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[(3)] (4) Each insurer shall provide this information on magnetic tape or in another
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form the Department of Public Safety's designated agent agrees to accept.
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[(4)] (5) (a) The commissioner may, following procedures set forth in Title 63, Chapter
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46b, Administrative Procedures Act, assess a fine against an insurer of up to $250 for each day
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the insurer fails to comply with this section.
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(b) If an insurer shows that the failure to comply with this section was inadvertent,
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accidental, or the result of excusable neglect, the commissioner shall excuse the fine.
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Section 2.
Section
41-12a-803
is amended to read:
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41-12a-803. Program creation -- Administration -- Selection of designated agent
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-- Duties -- Rulemaking _ Audits.
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(1) There is created the Uninsured Motorist Identification Database Program to:
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(a) establish an Uninsured Motorist Identification Database to verify compliance with
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motor vehicle owner's or operator's security requirements under Section
41-12a-301
and other
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provisions under this part;
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(b) assist in reducing the number of uninsured motor vehicles on the highways of the
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state;
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(c) assist in increasing compliance with motor vehicle registration and sales and use tax
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laws; and
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(d) assist in protecting a financial institution's bona fide security interest in a motor
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vehicle.
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(2) The program shall be administered by the department with the assistance of the
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designated agent and the Motor Vehicle Division.
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(3) (a) The department shall contract in accordance with Title 63, Chapter 56, Utah
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Procurement Code, with a third party to establish and maintain an Uninsured Motorist
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Identification Database for the purposes established under this part.
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(b) The contract may not obligate the department to pay the third party more monies
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than are available in the account.
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(4) (a) The third party under contract under this section is the department's designated
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agent, and shall develop and maintain a computer database from the information provided by:
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(i) insurers under Section
31A-22-315
;
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(ii) the division under Subsection (6); and
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(iii) the Motor Vehicle Division under Section
41-1a-120
.
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(b) (i) The database shall be developed and maintained in accordance with guidelines
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established by the department so that state and local law enforcement agencies and financial
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institutions as defined in Section
7-1-103
can efficiently access the records of the database,
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including reports useful for the implementation of the provisions of this part.
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(ii) (A) The reports shall be in a form and contain information approved by the
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department.
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(B) The reports may be made available through the Internet or through other electronic
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medium, if the department determines that sufficient security is provided to ensure compliance
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with Section
41-12a-805
regarding limitations on disclosure of information in the database.
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(5) With information provided by the department and the Motor Vehicle Division, the
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designated agent shall, at least monthly for submissions under Subsection
31A-22-315
(2)(b) or
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at least twice a month for submissions under Subsection
31A-22-315
(2)(a):
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(a) update the database with the motor vehicle insurance information provided by the
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insurers in accordance with Section
31A-22-315
; and
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(b) compare all current motor vehicle registrations against the database.
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(6) The division shall provide the designated agent with the name, date of birth,
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address, and driver license number of all persons on the driver license database.
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(7) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
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department shall make rules and develop procedures in cooperation with the Motor Vehicle
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Division to use the database for the purpose of administering and enforcing this part.
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(8) (a) The designated agent shall archive computer data files at least semi-annually for
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auditing purposes.
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(b) The internal audit unit of the tax commission provided under Section
59-1-206
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shall audit the program at least annually. The audit shall include verification of:
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(i) billings made by the designated agent; and
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(ii) the accuracy of the designated agent's matching of vehicle registration with
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insurance data.
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Section 3.
Section
41-12a-804
is amended to read:
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41-12a-804. Notice -- Proof -- Revocation of registration -- False statements --
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Penalties -- Exemptions -- Sales tax enforcement.
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(1) If the comparison under Section
41-12a-803
shows that a motor vehicle is not
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insured for [three] two consecutive months, the Motor Vehicle Division shall direct that the
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designated agent provide notice to the owner of the motor vehicle that the owner has 15 days to
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provide:
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(a) proof of owner's or operator's security in a form allowed under Subsection
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41-12a-303.2
(4); or
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(b) proof of exemption from the owner's or operator's security requirements.
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(2) If an owner of a motor vehicle fails to provide satisfactory proof of owner's or
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operator's security to the designated agent, the designated agent shall:
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(a) provide a second notice to the owner of the motor vehicle that the owner now has
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15 days to provide:
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(i) proof of owner's or operator's security in a form allowed under Subsection
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41-12a-303.2
(4); or
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(ii) proof of exemption from the owner's or operator's security requirements;
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(b) for each notice provided, indicate information relating to the owner's failure to
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provide proof of owner's or operator's security in the database; and
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(c) provide this information to state and local law enforcement agencies as requested in
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accordance with the provisions under Section
41-12a-805
.
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(3) The Motor Vehicle Division:
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(a) shall revoke the registration upon receiving notification under Subsection
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41-1a-110
(2); [and]
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(b) shall provide appropriate notices of the revocation, the legal consequences of
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operating a vehicle with revoked registration and without owner's or operator's security and
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instructions on how to get the registration reinstated; and
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(c) may direct the designated agent to provide the notices under this Subsection (3).
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(4) Any action by the Motor Vehicle Division to revoke the registration of a motor
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vehicle under this section may be in addition to an action by a law enforcement agency to
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impose the penalties under Section
41-12a-302
or
41-12a-303.2
.
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(5) (a) A person may not provide a false or fraudulent statement to the Motor Vehicle
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Division or designated agent.
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(b) In addition to any other penalties, a person who violates Subsection (5)(a) is guilty
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of a class B misdemeanor.
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(6) The department and the Motor Vehicle Division shall direct the designated agent to
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exempt from this section a farm truck that:
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(a) meets the definition of a farm truck under Section
41-1a-102
; and
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(b) is registered as a farm truck under Title 41, Chapter 1a, Motor Vehicle Act.
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(7) This part does not affect other actions or penalties that may be taken or imposed for
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violation of the owner's and operator's security requirements of this chapter.
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(8) If a comparison under Section
41-12a-803
shows that a motor vehicle may not be in
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compliance with motor vehicle registration or sales and use tax laws, the Motor Vehicle
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Division may direct that the designated agent provide notice to the owner of a motor vehicle
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that information exists which indicates the possible violation.
Legislative Review Note
as of 10-20-05 9:15 AM
Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.
Office of Legislative Research and General Counsel
Interim Committee Note
as of 12-16-05 7:07 AM
The Transportation Interim Committee recommended this bill.
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