Date: 01/16/2006

Final
Motorist Insurance Database Sunset

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View--> Action Taken:
Amendment L.002 (Attachment D). The committee dis
moved to recommend that the bill concerning the su		PASS
PASS


02:18 PM -- Sunset Review of the Colorado Motorist Insurance Identification Database Program

Bruce Harrelson, Director of the Office of Policy, Research and Regulatory Reform, Colorado Department of Regulatory Agencies (DORA), came to the table to answer any questions about the Uninsured Motorist Database sunset report (Attachment A). The House Business Affairs and Labor Committee conducted an ititial sunset hearing on this topic on November 17, 2005. Representative Marshall asked Mr. Harrelson to briefly explain the report to the committee again because there were two new members on the committee since the initial hearing in November. In response, Mr. Harrelson called Robert Holden, the author of the report, to the table to go through the DORA recommendations.
02:18 PM -- Robert Holden briefly explained each of the recommendations from DORA's sunset report. Mr. Holden responded to questions from the committee regarding the cost of the program. He explained that the program is paid for by a 50-cent surcharge per motorist. Mr. Holden responded to additional questions from the committee.
02:37 PM -- Joan Vecchi, Director of Motor Vehicles, Colorado Department of Revenue, came to the table to respond to questions. She talked about how the Uninsured Motorist Database was developed to work in sync with a new type of administrative driver's license revocation or suspension. Ms. Vecchi explained how the database allows law enforcement officers to query if a driver does or does not have insurance. If they do not, the officer can, at that time, do an administrative suspension. Ms. Vecchi responded to questions from the committee regarding the effectiveness of the program. In response to a question from the committee, Ms. Vecchi stated it would make more sense and save approximately $1 million dollars a year if the program were brought under the Department of Revenue rather than contracting it out to a private vendor. In response to Ms. Vecchi's comments, Representative Butcher discussed an amendment (Attachment B) to the draft bill (Attachment C) that would bring the database in-house. Mr. Holden and Ms. Vecchi responded additional questions.
03:07 PM -- Philip Casey, General Manager, Explore Information Services, the vendor for the database program, came to the table to testify. He gave a brief history of the database program and explained Expore's role in the program. He added that with the database, Colorado's uninsured driver rate has decreased. He responded to Ms. Vecchi's comments on bringing the program in-house and explained why he disagreed with her comments that it would save the state money to do so. Mr. Casey responded to questions from the committee regarding the accuracy of the insurance company compliance reports Explore creates. Mr. Casey stated that he feels the database needs to expand beyond just stating if a person is insured or uninsured. He suggested that the database should also include whether the person has ignored their first notice that they have no insurance from the state. Representative Liston asked if Explore has been asked to add this extra information and if they are prepared to add it if asked. Mr. Casey stated Explore has not been asked to add the additional information, but they are prepared to do so if asked. Mr. Casey concluded his testimony.
03:31 PM -- Bill Imig, representing the Property and Casualty Insurer's Association, and Allstate Insurance, explained what the database can and cannot do and how the program works with regards to the compliance reports that are prepared by Explore about the insurance companies. He also explained that 89 percent of vehicles are being matched as insured by Explore. He explained that the other 11 percent come up as unmatched by the database. He explained that a car can come up as unmatched in the database when it is insured in another state but driven here in Colorado, or if a vehicle is unregistered but has insurance. Mr. Imig responded to committee questions and concluded his testimony.
03:43 PM -- Rich Gebhardt, representing State Farm clarified the statistical evidence in the sunset report that seems to indicate that State Farm is not compliant. He explained that Explore's compliance reports are inaccurate. Mr. Gebhardt offered some suggestions on how to fix these inaccuracies in the system. He responded to committee questions and concluded his testimony.
BILL:Motorist Insurance Database Sunset
TIME: 04:00:04 PM
MOVED:Butcher
MOTION:moved to recommend that the bill concerning the sunset review of the Colorado Motorist Insurance Identification Database Program be drafted and introduced in the 2006 session. The motion passed 13-0. Chairman Marshall indicated that Representative Butcher would be the prime House sponsor of the bill. Co-sponsors are: Representatives Borodkin, Carroll, Marshall, and Paccione.
SECONDED:Coleman
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
Yes
Liston
Yes
McCluskey
Yes
Paccione
Yes
Penry
Yes
Welker
Yes
Cerbo
Yes
Marshall
Yes
Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

BILL:Motorist Insurance Database Sunset
TIME: 04:04:18 PM
MOVED:Butcher
MOTION:Amendment L.002 (Attachment D). The committee discussed the amendment. Representative Carroll stated that the committee would like the actual cost-saving data when it becomes available. The amendment was adopted on an 8-5 roll call vote.
SECONDED:Paccione
VOTE
Balmer
No
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
Yes
Liston
No
McCluskey
No
Paccione
Yes
Penry
No
Welker
No
Cerbo
Yes
Marshall
Yes
Not Final YES: 8 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS