Kentucky 2022 Regular Session

Kentucky Senate Bill SB185 Latest Draft

Bill / Introduced Version

                            UNOFFICIAL COPY  	22 RS BR 1959 
Page 1 of 7 
XXXX  	Jacketed 
AN ACT relating to motor vehicle insurance. 1 
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 
Section 1.   KRS 186A.040 is amended to read as follows: 3 
(1) The Department of Vehicle Regulation shall provide and receive information on the 4 
insurance status of vehicles registered in the Commonwealth of Kentucky pursuant 5 
to KRS 304.39-087 and 304.39-085. The department shall provide appropriate 6 
insurance information to the Commonwealth Office of Technology for inclusion in 7 
the AVIS database to assist in identifying uninsured motor vehicles. 8 
(2) [(a) ]Upon notification to the Department of Vehicle Regulation from an insurance 9 
company of cancellation or nonrenewal of a policy pursuant to KRS 304.39-085, or 10 
[on and after January 1, 2006, ]if the vehicle identification number (VIN) of a 11 
personal motor vehicle does not appear in the database created by KRS 304.39-087 12 
for two (2) consecutive reporting months, the department shall immediately make a 13 
determination as to the notification of the insured. Notification in writing to the 14 
insured shall state that the insured's policy is no longer valid and that the insured 15 
shall have thirty (30) days to show proof of insurance to the county clerk. The 16 
department shall further inform the insured that if evidence of insurance is not 17 
received within thirty (30) days the department shall revoke the registration of the 18 
motor vehicle until [: 19 
1. ]the person presents proof of insurance to the county clerk and pays the 20 
reinstatement fee [required by KRS 186.180]or presents to the county clerk an 21 
affidavit under subsection (3) of this section.[;] 22 
(3)[2.] To comply with subsection (2) of this section, the person may 23 
present[presents] proof in the form of an affidavit stating, under penalty of perjury 24 
as set forth in KRS 523.030, that: 25 
(a) The failure to maintain motor vehicle insurance on the vehicle specified in the 26 
department's notification is the result of the inoperable condition of the motor 27  UNOFFICIAL COPY  	22 RS BR 1959 
Page 2 of 7 
XXXX  	Jacketed 
vehicle; 1 
(b) [3. The person presents proof in the form of an affidavit stating, under 2 
penalty of perjury as set forth in KRS 523.030, that ]The failure to maintain 3 
motor vehicle insurance on the vehicle specified in the department's 4 
notification is the result of the seasonal nature of the vehicle. The affidavit 5 
shall explain that when the vehicle is out of dormancy and when the seasonal 6 
use of the vehicle is resumed, the proper security will be obtained; [or] 7 
(c) [4. The person presents proof in the form of an affidavit stating, under 8 
penalty of perjury as set forth in KRS 523.030, that ]He or she requires a 9 
registered motor vehicle in order to carry out his or her employment and that 10 
the motor vehicle that he or she drives during the course of his or her 11 
employment meets the security requirement of Subtitle 39 of KRS Chapter 12 
304. The person shall also declare in the affidavit that he or she will operate a 13 
motor vehicle only in the course of his or her employment; 14 
(d) The vehicle is operated exclusively on farms and is only on the highway 15 
while being towed or hauled; 16 
(e) The vehicle is used for his or her employment, is operated exclusively off-17 
road, and is transported to and from job sites by means other than being 18 
operated on the highway; 19 
(f) The vehicle is operated exclusively off-road on the person's property; 20 
(g) The vehicle is not being used due to any reasonable emergency, including 21 
but not limited to the person being unemployed due to injury or being laid-22 
off; or 23 
(h) The vehicle is not being operated on the highway, but the owner's property 24 
does not have off-street parking and is located in a jurisdiction with a local 25 
ordinance prohibiting the parking of unregistered vehicles on local roads. 26 
(4) If a person has his or her motor vehicle registration revoked in accordance with this 27  UNOFFICIAL COPY  	22 RS BR 1959 
Page 3 of 7 
XXXX  	Jacketed 
subsection two (2)[three (3)] times within any twelve (12) month period, the 1 
revocations shall constitute a violation of KRS 304.39-080. The department shall 2 
notify the county attorney to begin prosecution for violation of subtitle 39 of KRS 3 
Chapter 304. 4 
(5)[(b)] The Department of Vehicle Regulation shall be responsible for notification to 5 
the appropriate county attorney that a motor vehicle is not properly insured, if the 6 
insured does not respond to notification set out by subsection (2) of this 7 
section[paragraph (a) of this subsection]. The notice that the department gives to the 8 
county attorney in accordance with subsection (2) of this section[paragraph (a) of 9 
this subsection] shall include a certified copy of the person's driving record which 10 
shall include: 11 
(a)[1.] The notice that the department received from an insurance company that 12 
a person's motor vehicle insurance policy has been canceled or has not been 13 
renewed; and 14 
(b)[2.] A dated notice that the department sent to the person requiring the 15 
person to present proof of insurance to the county clerk. 16 
(6) (a) Upon notification by the department, a county attorney shall immediately 17 
begin prosecution of the person who had his or her motor vehicle registration 18 
revoked two (2)[three (3)] times within any twelve (12) month period in 19 
accordance with subsection (2) of this section[paragraph (a) of this 20 
subsection]. 21 
(b)[(c)] The certified copies sent by the department described in subsection (5) 22 
of this section[paragraph (b) of this subsection,] shall be prima facie evidence 23 
of a violation of KRS 304.39-080. 24 
(c)[(d)] If the insured provides proof of insurance to the clerk within the thirty 25 
(30) day notification period, the department shall ensure action is taken to 26 
denote a valid insurance policy is in force. 27  UNOFFICIAL COPY  	22 RS BR 1959 
Page 4 of 7 
XXXX  	Jacketed 
(7)[(3)] (a) In developing the mechanism to electronically transfer information 1 
pursuant to KRS 304.39-087, the commissioner of the Department of Vehicle 2 
Regulation shall consult with the commissioner of the Department of 3 
Insurance and insurers of personal motor vehicles to adopt a standardized 4 
system of organizing, recording, and transferring the information so as to 5 
minimize insurer administrative expenses. The commissioner of vehicle 6 
regulation shall to the maximum extent possible utilize nationally recognized 7 
electronic data information systems such as those developed by the American 8 
National Standards Institute or the American Association of Motor Vehicle 9 
Administrators. 10 
(b) Notwithstanding any other provision of law, information obtained by the 11 
department pursuant to KRS 304.39-087 shall not be subject to the Kentucky 12 
Open Records Act, KRS 61.872 to 61.884, and shall not be disclosed, used, 13 
sold, accessed, utilized in any manner, or released by the department to any 14 
person, corporation, or state and local agency, except in response to a specific 15 
individual request for the information authorized pursuant to the federal 16 
Driver's Privacy Protection Act, 18 U.S.C. secs. 2721 et seq. The department 17 
shall institute measures to ensure that only authorized persons are permitted to 18 
access the information for the purposes specified by this section. Persons who 19 
knowingly release or disclose information from the database created by KRS 20 
304.39-087 for a purpose other than those described as authorized by this 21 
section or to a person not entitled to receive it shall be guilty of a Class A 22 
misdemeanor for each release or disclosure. 23 
(8) The Transportation Cabinet shall prepare forms for affidavits required under 24 
subsection (3) of this section and shall make them available to the public in each 25 
county clerk's office and on the cabinet's Web site. 26 
(9) The Department of Vehicle Regulation shall design and provide a sticker for use 27  UNOFFICIAL COPY  	22 RS BR 1959 
Page 5 of 7 
XXXX  	Jacketed 
on vehicles as set out in subsection (3)(h) of this section. City, county, or local 1 
governments shall be prohibited from towing a vehicle or citing a vehicle owner 2 
for violation of any local ordinance prohibiting the parking of an inoperable 3 
vehicle on a city or local road when this sticker is affixed to the vehicle. 4 
(10) Any motor vehicle for which the registration has been revoked under this section 5 
shall be subject to the provisions of KRS 186.181. 6 
(11) The owner of a motor vehicle for which the registration has been revoked under 7 
this section shall be subject to a reinstatement fee of thirty dollars ($30). The 8 
reinstatement fee shall be paid to the county clerk and shall be distributed as 9 
follows: 10 
(a) Twenty dollars ($20) shall be retained by the county clerk; and 11 
(b) Ten dollars ($10) shall be forwarded to the Department of Vehicle 12 
Regulation. 13 
Section 2.   KRS 186.180 is amended to read as follows: 14 
(1) (a) If the owner loses his or her copy of a registration or transfer receipt, he or she 15 
may obtain a duplicate from the county clerk who issued the present owner's 16 
copy of the receipt by presenting the clerk proof of insurance on the motor 17 
vehicle in compliance with KRS 304.39-080, and by filing an affidavit, upon a 18 
form furnished by the cabinet. The owner shall pay to the clerk a fee of three 19 
dollars ($3), except proof of insurance shall not be required for duplicates 20 
applied for by motor vehicle dealers as defined in KRS 190.010. 21 
(b) When the owner's copy of any registration or transfer receipt shows that the 22 
spaces provided thereon for noting and discharging security interests have 23 
been exhausted, the owner may apply to the county clerk who issued the 24 
receipt in order to obtain a duplicate thereof. The owner shall surrender his or 25 
her copy of the current receipt to the clerk and provide proof of insurance on 26 
the motor vehicle in compliance with KRS 304.39-080, before a duplicate 27  UNOFFICIAL COPY  	22 RS BR 1959 
Page 6 of 7 
XXXX  	Jacketed 
may be issued. The owner shall pay the clerk a fee of three dollars ($3), except 1 
proof of insurance shall not be required for duplicates applied for by motor 2 
vehicle dealers as defined in KRS 190.010. 3 
(c) Any security interest which has been discharged as shown by the records of 4 
the clerk or upon the owner's copy of the current receipt shall be omitted from 5 
the duplicate receipt to be issued by the clerk. 6 
(2) If the owner loses a registration plate, he or she shall surrender his or her 7 
registration receipt to the county clerk from whom it was obtained and file a written 8 
statement as to the loss of the plate. Upon presenting the clerk proof of insurance on 9 
the motor vehicle in compliance with KRS 304.39-080, and upon the payment of 10 
the sum of three dollars ($3) for each plate and a fee of three dollars ($3) to the 11 
clerk for his or her services, the owner shall be issued another registration receipt 12 
and a plate or plates which shall bear a different number from that of the lost plate. 13 
The clerk shall retain the owner's statement and a copy of the owner's proof of 14 
insurance, and shall make a notation on the triplicate copy of the surrendered 15 
registration receipt stating the number of the registration receipt replacing it. The 16 
original copy of the surrendered receipt shall be forwarded to the cabinet. The 17 
cabinet shall forthwith cancel the registration corresponding to the number of the 18 
lost plate. The cancellation shall be reported by the cabinet to the commissioner of 19 
the Department of Kentucky State Police. Any person finding a lost registration 20 
plate shall deliver it to the Transportation Cabinet or to any county clerk for 21 
forwarding it to the cabinet. 22 
(3) If the owner moves from one (1) county into another county of the Commonwealth, 23 
he or she may obtain a registration plate bearing the name of the county of 24 
residence. In order to obtain a new registration plate, the owner shall surrender his 25 
or her current registration receipt and current registration plate to the county clerk. 26 
Upon being provided with proof of insurance on the motor vehicle in compliance 27  UNOFFICIAL COPY  	22 RS BR 1959 
Page 7 of 7 
XXXX  	Jacketed 
with KRS 304.39-080, the clerk shall provide the owner with a new registration 1 
receipt and plate bearing the county name. The surrendered receipt and plate shall 2 
be forwarded to the Transportation Cabinet. The fee for this registration shall be 3 
five dollars ($5) of which the clerk shall be entitled to three dollars ($3) and the 4 
cabinet shall be entitled to two dollars ($2). 5 
(4) If the owner's registration is revoked as a result of the provisions set forth in KRS 6 
186A.040, the owner may have his or her registration reinstated by the county clerk 7 
who issued the present owner's copy of the receipt by paying the reinstatement fee 8 
required in Section 1 of this Act and presenting the clerk proof of: 9 
(a) Insurance on the motor vehicle in compliance with KRS 304.39-080 and by 10 
filing an affidavit upon a form furnished by the cabinet; or 11 
(b) A valid compliance or exemption certificate in compliance with KRS 224.20-12 
720 or issued under the authority of an air pollution control district under KRS 13 
224.20-760. 14 
(5) [The owner of a motor vehicle that has the vehicle's registration revoked under KRS 15 
186.290 shall pay to the clerk a fee of twenty dollars ($20), which shall be equally 16 
divided between the county clerk and the cabinet. 17 
(6) On and after January 1, 2006, ]If the motor vehicle is a personal motor vehicle as 18 
defined in KRS 304.39-087, proof of insurance required under this section shall be 19 
determined by the county clerk as provided in KRS 186A.042. 20