BILL ANALYSIS AND FISCAL IMPACT REPORT	Page 1 of  1

DATE:  February 22, 2001	Submitted by: TAXATION AND REVENUE DEPT.
	T. GLENN ELLINGTON, SECRETARY
BILL NUMBER: SB -741

SPONSOR: Senator Rawson

BILL SHORT TITLE: Amending Mandatory Financial Responsibility Act Provisions

DESCRIPTION: This bill has three major provisions: (1) the minimum term for which a motor vehicle insurance policy may be purchased in six months; (2) if and when MVD is funded to implement the data processing effort that lets insurance companies notify the Department when insurance has been cancelled, the bill requires the Department to pass that information to local police agencies. These agencies are directed to confiscate or permanently deface the registration plate attached to any car owned by the uninsured motorist. (3) As part of the insurance process, insurance companies are required to send a sticker with the proof of insurance card. This sticker must be placed in the rear window of any insured vehicle.

EFFECTIVE DATE: not stated – 90 days after adjournment (June 17)

FISCAL IMPACT: no direct impact.
The six-month minimum term is likely to further decrease somewhat the insured population. This will cause a decrease in insurance premiums tax.

ADMINISTRATIVE IMPACT: the Department has not been funded for the key element in this proposal – the processing of information from insurance companies when an insured person’s coverage lapses. Without this funding, the Department will be unable to develop the capacity to process information to be passed to the law enforcement agencies.

OTHER IMPACTS AND ISSUES:
1.	The design of the sticker will retain some form of dating and color coding. Then, law enforcement can easily identify uninsured vehicles.