Date: 05/02/2006

Final
BILL SUMMARY for HB06-1178

SENATE COMMITTEE ON TRANSPORTATION

Votes: View--> Action Taken:
Moved prepared amendment L.007 (Attachment B). Se
Refer House Bill 06-1178 to the Committee of the W		FAIL
PASS



01:45 PM -- House Bill 06-1178

Senator Williams, prime sponsor, explained the provisions of House Bill 06-1178, concerning the motorists insurance identification database (MIDB) program used to identify persons who own motor vehicles that are not insured. The reengrossed bill continues the MIDB program but reduced program responsibilities by eliminating notification letters to uninsured motorists and the requirement that uninsured drivers provide proof of insurance to the Department of Revenue (DOR). The program's remaining functions may either be administered by the DOR or by a contractor chosen by the DOR. The DOR, in consultation with the Division of Insurance, is required to provide a report to the House Business Affairs and Labor Committee by January 1, 2008, analyzing program effectiveness.

The following persons testified:

01:49 PM -- Joan Vecchi and Michael Cooke, representing the Department of Revenue (DOR), testified in support of the bill. Ms Vecchi explained the history of the MIDB and answered questions from committee members. Ms. Cooke stated that there is no coalition between the database and the reduction and uninsured motorists. Ms. Vecchi stated that uninsured motorists is down to 10 percent. Ms. Cooke answered additional questions and stated that .5 million notification letters are sent out annually to uninsured motorists.

02:09 PM

Ms. Cooke responded to Senator Wiens' concerns and stated that citizens should be able to verify with insurance companies and the database should reflect that they are insured. Senator Wiens stated that the Department of Regulatory Agencies (DORA) report indicates that 25 percent of recipients of notification letters obtained insurance after receiving the letter.

02:15 PM

Ms. Cooke explained that Explore Information Services has had the contract for the database since 1999 and the contract expires June 30, 2006. Ms. Cooke stated that there is a cost benefit to using a modified database. In addition, the modified database results in a reduction of 8 FTE to 1 FTE. Ms. Cooke also explained that the a fee reduction is expected in FY 2008.


02:25 PM -- Phillip Casey, representing Explore Information Services, testified in support of the bill. He distributed a handout entitled Colorado Insurance Identification Program(Attachment A). The handout included information regarding:

Mr. Casey answered questions and stated that the state of Colorado is charged 107,000 a month for the program.

02:37 PM -- Geoff Hier, representing the Department of Regulatory Agencies (DORA), testified in support of the bill. Mr. Hier answered questions from committee members.

02:41 PM

Senator Williams made closing comments for HB 06-1178.
BILL:HB06-1178
TIME: 02:44:30 PM
MOVED:Wiens
MOTION:Moved prepared amendment L.007 (Attachment B). Senator Wiens explained the amendment. The motion failed on a 2 to 5 roll call vote.
SECONDED:
VOTE
Hagedorn
No
Isgar
No
May R.
No
Spence
Yes
Wiens
Yes
Williams
No
Takis
No
Not Final YES: 2 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: FAIL

Senator Wiens explained the amendment and the committee discussed the amendment. Senator Williams asked that the committee to reject L.007 (Attachment D).

02:47 PM

Ms. Cooke, DOR, came to the table to answer questions and stated that if the bill does not pass then the program would go into a one-year wind down and the program would be eliminated unless legislation was passed in the 2007 legislative session that would re-create the program.


BILL:HB06-1178
TIME: 02:53:57 PM
MOVED:Williams
MOTION:Refer House Bill 06-1178 to the Committee of the Whole. The motion passed on a 5 to 2 roll call vote.
SECONDED:
VOTE
Hagedorn
Yes
Isgar
Yes
May R.
Yes
Spence
No
Wiens
No
Williams
Yes
Takis
Yes
Final YES: 5 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS