Final
Motorist Insurance Database

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes:
Action Taken:
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10:56 AM -- Sunset of Colorado Motorist Insurance Identification Database Program Act

Robert Holden, Department of Regulatory Agencies, reviewed the recommendations in the sunset report and walked through the provisions of the draft bill. A copy of the sunset review entitled "Colorado Motorist Insurance Identification Database Program Act " is available on-line at: http://www.dora.state.co.us/opr/archive/2005MIIDB.pdf, and a copy of the draft bill that the committee would be reviewing containing the recommendations in the sunset report is appended as Attachment J.


11:09 AM

Representative Paccione walked through the process of how a driver proves he or she has insurance, and asked whether, when registering a vehicle, the driver needs to show proof of insurance. Mr. Holden responded. Representative Borodkin expressed concern about what seems to be a disconnect in the systems between law enforcement and the Department of Revenue.


11:17 AM

Representative Knoedler discussed a bill from the 2005 session that sought to make names consistent on driving records and insurance so that tracking people would be easier. Representative Butcher asked about specific parts of the report. Mr. Holden responded.


11:27 AM

Representative Coleman asked a question about the 50 cent surcharge. More questions from the committee. Questions about compliance with in-state versus out-of-state companies. Mr. Holden stated that data is not compiled in that manner, so not available. He walked through Appendix G and what the column headers mean.


11:44 AM

Bruce Harrelson responded to a question from Representative Coleman, and there was considerable discussion between the committee and DORA.


11:50 AM

Joan Green, lobbyist for Explore Information Services, responded to some of the questions that had come up in DORA's testimony regarding law enforcement's access to insurance data and the required coverage at the time of purchase of a vehicle. Phil Casey, VP and General Manager, Explore Information Services, explained how the uninsured motorist database program works and how Explore notifies insurers about their noncompliance. Mr. Casey discussed the objective of the program since its inception. He stated that Explore agrees with the recommendations proposed in the sunset report, stating that they will help refine the program into a more effective one. He stated that approximately 98 percent of the policies currently submitted are matched to the policy holder.


12:02 PM

Representative Carroll questioned the accountability aspect of whether companies that are failing to timely report are actually being referred to the Division of Insurance for penalty. Mr. Casey responded stating that the reports have been sent to the Division of Motor Vehicles. Representative Carroll asked to obtain copies of the reports. Responding to a question from Representative Butcher, Mr. Casey indicated that Explore has held the contract since the inception of the program in 1999 and that the contract amount is approximately $1.2 million. Representative Borodkin expressed her concern again with the disconnect between the departments and agencies involved.


12:12 PM

Representative Paccione commented further on the lack of enforcement of the law that is on the books today. Mr. Casey stated that he agrees that a clear process is needed in order to ensure compliance.


12:16 PM

The committee continued questioning Mr. Casey. Representative Coleman asked to see the contract the state has with Explore in order to determine what the actual number of uninsured drivers is.


12:25 PM

Diane Reimer, Department of Revenue, came to the table and apologized for not having personnel present to respond to the questions, but they had thought that the hearing was at 1:30 p.m. She indicated that Joan Vecchi would be present either at 1:30 p.m. or at a later date if the committee decides not to finish the review today.


12:30 PM

Representative Cerbo stated that he was going to lay over the sunset review and consideration of the draft bill until session in order to allow all of the parties to be present and to allow the committee to get some of their questions answered.


12:32 PM

The committee adjourned.