SB 489 — MOTOR VEHICLES: To authorize third party vendors to conduct a license plate inquiry on motor vehicles to verify insurance liability coverage. (8/1/26) (EN NO IMPACT See Note)

SLS 26RS-1414 REENGROSSED Regular Session ENROLLED SENATE BILL NO.

489 BY SENATOR EDMONDS MOTORVEHICLES.ToauthorizethirdAN partyvendorstoconductalicenseplateinquiryonACT motorTo vehiclesamend toand verifyreenact insuranceR.S. liability coverage.

(8/1/26) AN ACT To amend and reenact R.S.

to makemaketechnical technical changes;

32:861 et seq., hereinafter referred to as "security providers", whether admitted or nonadmitted (surplus line underwriter) insurance companies providing automobile liability policies,orsalesrepresentativesoragentsofsuretycompaniesissuingmotorvehicle liability bonds, or the state treasurer holding deposits, shall notify the secretary Pagecommissioner 1of the effective dates of 6each Coding:liability policy, liability bond, deposit, orothersecuritywithinfifteenbusinessdaysfromthedatethatnoticeofsuchpolicy, bond, deposit, or other security was issued by the security provider.

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SLS 26RS-1414 REENGROSSED SB NO.

489 commissioner of the effective dates of each liability policy, liability bond, deposit, orothersecuritywithinfifteenbusinessdaysfromthedatethatnoticeofsuchpolicy, bond, deposit, or other security was issued by the security provider.

(3)BeginningJanuary1,1990,theinformationrequiredbythisSectionshall bePage in1 the form required by the secretary commissioner, who may require by regulation such information as the driver's license number of the5 ownerCoding: or lessee of the vehicle and of the named insureds, together with the complete vehicle identification number and a description of each vehicle.

(4) The information requiredbythis Section shall be in the form required by the secretarycommissioner,whomayrequirebyregulation such information as the driver's license number of the owner or lessee of the vehicle and of the named insureds, together with the complete vehicle identification number and description of each vehicle.

* * * (6) If anycancellation of a motor vehicle liabilityinsurance policyoccurs as a result of the rescission or other cancellation of the sale of the motor vehicle on whichthepolicyisissued,theinsurershall notifythesecretarycommissionerofthe cancellation and the circumstances of the cancellation, and the insured shall not be liable for anypenaltyor fee imposed for failure to maintain the securityrequired by law.

B.

When a securityprovider does not provide the deputysecretaryof public safety services of the Department of Public Safety and Corrections with the information required by this Section within the time limits set forth in this Section, Page 2 of 6 Coding:

SLS 26RS-1414 REENGROSSED SB NO.

489 ENROLLED be in the insuranceform company,required salesby representativethe orsecretary agent,commissioner, statewho treasurer,may orrequire otherby providerregulation shallsuch payinformation aas latethe feedriver's license number of notthe moreowner thanor fiftylessee dollarsof perthe policy,vehicle bond,and orof deposit,the ornamed otherinsureds, securitytogether itemwith concerningthe whichcomplete informationvehicle isidentification notnumber supplied.and a description of each vehicle.

(4) The information requiredbythis Section shall be in the form requiredby the secretarycommissioner,whomayrequirebyregulation such information as the driver's license number of the owner or lessee of the vehicle and of the named insureds, together with the complete vehicle identification number and description of each vehicle.

* * * (6) If anycancellation of a motor vehicle liabilityinsurance policyoccurs as a result of the rescission or other cancellation of the sale of the motor vehicle on whichthepolicyis issued,theinsurershallnotifythesecretarycommissionerofthe cancellation and the circumstances of the cancellation, and the insured shall not be liable for anypenaltyor fee imposed for failure to maintain the securityrequired by law.

B.

When a security provider does not provide the deputysecretaryof public safety services of the Department of Public Safety and Corrections with the information required by this Section within the time limits set forth in this Section, the insurance company, sales representative or agent, state treasurer, or other provider shall pay a late fee of not more than fifty dollars per policy, bond, or deposit, or other security item concerning which information is not supplied.

The secretary commissioner shall keep a record of the information receivedPage from2 security providers concerning coverage of vehicles5 andCoding: persons by security required by R.S.

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SB NO.

489 ENROLLED received from security providers concerning coverage of vehicles and persons by security required by R.S.

After the department has complete vehicle liability securitysecurityrecords, records, upon written request including the driver's license number for each person, the vehicle identification number for each vehicle, and the payment of a fee of fifteen dollars for eachvehicleeach vehicle owned bybya a person about which inquiry is made, the secretary commissioner shall forward to the inquiring party such vehicle and driver liability security information as is contained in the records ofthedepartment.Ifthedepartment'ssearchofitsrecordsfailstoshowtheexistence ofanyliabilityinsuranceorothersecurityasofthedateaboutwhichinquiryismade, an official of the department will issue a sworn, notarized affidavit to that effect.

* * * PageE.(1)Priortotakinganyadministrativeactionbasedonthereceiptofanotice 3of cancellation of 6insurance Coding:or other security, the secretary commissioner shall notify the person who is the subject of the notice at his last known driver's license address, of cancellationof the receiptof that notice.Thenoticeofreceiptofa notice ofcancellationshall bein writing.Thenoticeshall informthesubjectthathehasten calendar days from the date of the notice in which he may surrender the license plates of the vehicle in order to avoid the fees prescribed by R.S.

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SLS 26RS-1414 REENGROSSED SB NO.

489 E.(1)Priortotakinganyadministrativeactionbasedonthereceiptofanotice of cancellation of insurance or other security, the secretary commissioner shall notify the person who is the subject of the notice at his last known driver's license address, of cancellationofthereceiptofthatnotice.The notice of receiptof a notice ofcancellationshall bein writing.Thenoticeshallinformthesubjectthathehasten calendar days from the date of the notice in which he may surrender the license plates of the vehicle in order to avoid the fees prescribed by R.S.

Legitimate reasonsPage for3 cancellation of insurance5 orCoding: other security shall include but shall not be limitedtothetransferofownershipofthevehicleorthesurrenderofthelicenseplate of the formerly insured vehicle.

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SB NO.

489 ENROLLED reasons for cancellation of insurance or other security shall include but shall not be limitedtothetransferofownershipofthevehicleorthesurrenderofthelicenseplate of the formerly insured vehicle.

(2)Thecriteriaestablishedbythesecretarycommissionershallbedeveloped only after consulting with an advisory group consisting of the commissioner of Pageinsurance 4or his designee, the superintendent of 6state Coding:police or his designee, the executivedirectoroftheLouisianaHighwaySafetyCommissionorhisdesignee,and fiveadditionalmembers,onerepresentingtheAmericanInsuranceAssociation,one representing the Property Casualty Insurance Association of America, one selected from a list of names submitted bythe three insurers with the largest market share of automobile insurance in Louisiana, one from the Louisiana Association of Fire and CasualtyCompanies, and one from the Louisiana Independent Agents Association.

* * * (4) The system developed pursuant to this Subsection may initially be implemented by the secretary commissioner as a six-month pilot program to be developed and implemented statewide upon expiration of the six-month period.

(5)(a) The commissioner may authorize a third party vendor or designated agent to conduct a motor vehicle registration plate inquiry at the Page 4 of 5 Coding:

SLS 26RS-1414 REENGROSSED SB NO.