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A1116
ASSEMBLY, No. 1116
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman JOE DANIELSEN
District 17 (Middlesex and Somerset)
SYNOPSIS
���� Establishes motor vehicle insurance compliance
programs; allows law enforcement agencies to utilize license plate readers to
enforce motor vehicle insurance requirements.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
concerning motor vehicle insurance and automated
license plate readers, supplementing Title 39 of the Revised Statutes, and
amending P.L.1990, c.8.�
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� (New section)� a.� There
is established an Uninsured Vehicle Enforcement and Compliance Program, which
may be administered by each county and municipality in the State.� To implement
this program, county and municipal governing bodies and law enforcement
agencies shall have the authority to enter into contractual agreements with
automated license plate reader providers to provide the necessary technology,
equipment and maintenance thereof.�
���� b.��� Under the program, each
county and municipal prosecutor and participating law enforcement agencies may
utilize
individual
automatic
license
plate
reader
systems
to
access
and
collect
data
for
the
investigation,
detection,
analysis,
or
enforcement
of the compulsory motor
vehicle insurance law, P.L.1972, c.197 (C.39:6B-1 et seq.).� A law enforcement
agency that utilizes automated license plate readers pursuant to this section
shall access the insurance information within the database established pursuant
to subsection j. of section 50 of P.L.1990, c.8 (C.17:33B-41).�
����
Access
to
the
database
shall
be
restricted
to
authorized
prosecutors and
law
enforcement
agencies.��
Any entity with which a
contract has been executed to provide or maintain the technology or equipment
necessary to utilize automated license plate readers or the database shall be
entitled to access the data collected exclusively for the purposes enforcing
this act.�
���� c.���� A
law
enforcement
officer
may
verify
by
sworn
affidavit
that
a
photograph
generated
by
an
automatic
license
plate
reader
system
unit
identifies
a
particular
vehicle
operating
on
the public roads or highways of this
State
and
that
the
database confirms
that
the
vehicle
was
uninsured
at
the
time
such
vehicle
was
being
operated.� The
affidavit
shall
constitute
probable
cause
for
prosecution
under
the
compulsory
motor vehicle insurance law
.
���� d.��� Any
data
collected
or
retained
through
the
use
of
an
automated
license
plate
reader
system
pursuant
to
the
program
shall
be
retained
by
the prosecuting authority and
law
enforcement
agency
when
the
data
is
being
used
as
evidence
of
a
violation
of
the
compulsory
motor vehicle insurance law
;
provided,
when
the
data
is
no
longer
needed
as
evidence
of
a
violation,
the
data
shall
be
deleted
or
destroyed.
���� e.���� Any
data
collected
or
retained
through
the
use
of
an
automated
license
plate
reader
system
shall
not
be
used
by
an
individual
or
agency
for
purposes
other
than
enforcement
of
compulsory motor vehicle insurance law
or
as
otherwise
permitted
by
law.
Images
of the driver or motor vehicle occupants shall not be used or maintained as
evidence by any prosecuting authority or law enforcement agency.�
���� f.���� Any recorded image or
information produced in connection with the automated license plate reader
shall not be deemed a public record under P.L.1963, c.73 (C.47:1A-1 et seq.),
P.L.2001, c.404 (C.47:1A-5 et al.), or the common law concerning access to
public records.
���� g.��� The provisions of this
section shall not take effect until the Motor Vehicle Commission verifies that:
���� (1)�� at least 90 percent of
the personal lines auto insurance market in the State submits insurance
information to the database; and
���� (2)�� the database is updated
in a manner that allows the provisions of this section to be implemented.
���� h.��� As used in this act,
�automated license plate reader� means a system consisting of one or more
cameras and related equipment that automatically and without direct human
control locates, focuses on, and photographs license plates and vehicles that
come into range of the device; that automatically converts digital photographic
images of scanned license plates into electronic text documents; that is
capable of comparing scanned license plate text data with data files for
vehicles on a list programmed into the device�s electronic memory; and that
notifies law enforcement, whether by an audible alert or by other means, when a
scanned license plate matches the license plate on the programmed list.� The
term includes both devices that are placed at a stationary location and mobile
devices affixed to a law enforcement vehicle that are capable of operating
while the vehicle is in motion.
���� 2.��� (New section)� a.� Every
prosecuting authority in this State may establish an Uninsured Vehicle Enforcement
Diversion Program to allow county and municipal prosecutors to defer
prosecution of a person who violates the compulsory motor vehicle insurance
law, P.L.1972, c.197 (C.39:6B-1 et seq.).�
���� Under the program, a
prosecutor may move before the court to postpone proceedings against a person
who violates the compulsory motor vehicle insurance law. If the prosecutor's
review of the person�s driving records and other criminal history reveals that
the offender does not qualify for the program, the prosecutor may notify the
court that the prosecutor is prepared to proceed with the prosecution of the
offense and the court shall schedule court proceedings as appropriate. The
prosecutor shall have the sole discretion to determine if an offender qualifies
for and is admitted to the program after considering:
���� (1)�� whether it is in the
interest of public safety to postpone proceedings against the offender;
���� (2)�� the driving record of
the offender;
���� (3)�� whether there are
criminal complaints pending against the offender; and
���� (4)�� whether the offender has
provided the prosecutor with
satisfactory
proof of motor vehicle liability
insurance
prior to the hearing.
���� b.��� Upon
referral to the program established pursuant to subsection a. of this section,
the prosecutor shall forward to the person a notice, which shall provide:
���� (1)�� the
date on which the violation occurred;
���� (2)�� a
statement of the penalties established pursuant to section 2 of P.L.1972, c.197
(C.39:6B-2);
���� (3)�� the date on which the
person is required to submit to the prosecutor
satisfactory proof of motor vehicle liability
insurance
���� c.���� If the prosecutor
determines that the person has failed to comply with paragraph (3) of
subsection b. of this section the prosecutor may notify the court that the
prosecutor is prepared to proceed with the prosecution of the offense and the
court shall schedule the appropriate court proceedings.
���� d.��� A prosecutor who moves
before the court to postpone proceedings against a person who violates the
compulsory motor vehicle insurance law shall enter into a deferral agreement
with that person.�
���� e.���� If, after a minimum of
six months from the date of the deferral agreement, the prosecutor is satisfied
that the person maintained motor vehicle liability insurance, the prosecutor
may move before the court to dismiss the charges for violating the compulsory
motor vehicle insurance law.�
���� If, at any time, the
prosecutor finds that the person has failed to comply with the deferral
agreement, the prosecutor may notify the court that the prosecutor is prepared
to proceed with the prosecution of the offense and the court shall schedule
court proceedings as appropriate.
���� f.���� The court shall assess
a person who enters into a deferral agreement a surcharge of $245, of which
amount:
���� (1)�� $120 shall be payable to
the governing body of the county or municipality in which the person entered
the agreement with a prosecutor pursuant to this section to pay for the cost of
the Uninsured Vehicle Enforcement Diversion Program pursuant to this section;
and
���� (2)�� $120 shall be payable
for the cost of equipping, operating, and monitoring the Uninsured Vehicle
Enforcement and Compliance Program established pursuant to section 1 of
P.L.����� , c.����� (C.������ ) (pending before the Legislature as this bill)
including but not limited to, contractual payments to third party entities
providing essential services and equipment for the detection of violations of
the compulsory motor vehicle insurance law. The $120 assessment shall be
payable as follows:
���� (a)�� in a matter where the
summons was issued by a municipality's law enforcement agency, to that
municipality;
���� (b)�� in a matter where the
summons was issued by a county's law enforcement agency, to that county; and
���� (c)�� in a matter where the
summons was issued by a State law enforcement agency, to the General Fund; and
���� (3)�� five dollars to the Public
Employees' Retirement System, established pursuant to P.L.1954, c.84
(C.43:15A-7 et seq.).�
���� 3.��� Section 50 of P.L.1990,
c.8 (C.17:33B-41) is amended to read as follows:���
���� 50.� a.� Upon the termination
of a policy of motor vehicle liability insurance by cancellation for nonpayment
of premium pursuant to section 2 of P.L.1968, c.158 (C.17:29C-7), notice of
that cancellation shall be filed by the insurer with the
[
Division of
]
Motor
[
Vehicles
]
Vehicle
Commission
not later than 30 days following the effective date of that
cancellation.
���� b.��� The
[
division
]
commission
shall notify the person whose policy was canceled that, unless proof of motor
vehicle liability insurance is filed with the
[
division
]
commission
within 30 days of the notification or some other allowable circumstance exists
and the
[
division
]
commission
is notified of that circumstance within 30 days of the notification, the
sanctions and penalties of this section shall apply.
���� c.���� If the
[
Director
]
Chief
Administrator
of the
[
Division
of
]
Motor
[
Vehicles
]
Vehicle
Commission
has not received proof of motor vehicle liability insurance or
other allowable circumstances within 30 days pursuant to subsection b. of this
section,
[
he
]
the chief
administrator
shall suspend the registration of
[
such
]
the
vehicle, except that:
���� (1)�� Suspension shall not be
made under this subsection upon the basis of a cancellation of motor vehicle
liability insurance if the registration certificate and registration plates of
the motor vehicle are surrendered prior to the time at which the cancellation
of insurance becomes effective.�
[
Such
surrender
]
Surrender
shall be made to
[
such
officers of
]
the
[
division
]
commission
as the
[
director
]
chief
administrator
shall direct.� For the purposes of this paragraph, the
expiration of a registration without renewal of that registration shall be
deemed to be a surrender of registration as of the date of expiration;
���� (2)�� Suspension shall not be
made under this subsection upon a cancellation of motor vehicle liability
insurance if the vehicle has been, or will be, prior to the date of that
cancellation, removed from the United States in North America and the Dominion
of Canada for the purpose of international traffic, provided that the owner of
the vehicle, prior to the date of that cancellation, has filed with the
[
director
]
chief
administrator
a statement, in a form prescribed by him, indicating that the
vehicle has been, or will be, so removed, and agreeing to notify the
[
director
]
chief
administrator
immediately upon return of the vehicle to the United States
in North America or the Dominion of Canada.� Upon receipt of the statement the
[
director
]
chief
administrator
shall restrict the use of the registration to such
international traffic until new proof that motor vehicle liability insurance
has been secured for the vehicle;
���� (3)�� Suspension need not be
made under this subsection upon the basis of a cancellation of motor vehicle
liability insurance if the period of time during which the motor vehicle
remained both registered and uninsured was not greater than 15 days.� The
[
director
]
chief
administrator
shall promulgate regulations governing the conditions under
which suspension action may be withheld pursuant to this paragraph.
���� d.��� Notwithstanding the
provisions of subsection c. of this section, an order of suspension may be
rescinded if the registrant pays to the commissioner a civil penalty in the
amount of $4 for each day up to 90 days for which motor vehicle liability
insurance was not in effect.� The provisions of this subsection shall apply
only once during any 36-month period and only if the registrant surrenders the
certificate of registration and registration plates to the
[
director
]
chief
administrator
not more than 90 days from the date of cancellation of motor
vehicle liability insurance coverage or submits to the
[
director
]
chief
administrator
proof of motor vehicle liability insurance which took effect
not more than 90 days from the cancellation of
[
his
]
the registrant�s
previous
motor vehicle liability insurance.
���� e.���� Any motor vehicle, the
registration for which has been suspended pursuant to this section, shall not
be registered or reregistered in the name of the same registrant, or in any
other name where the
[
director
]
chief
administrator
has reasonable grounds to believe that such registration or
reregistration will have the effect of defeating the purposes of this section,
and no other motor vehicle shall be registered in the name of such person
during the period of suspension.
���� f.����
[
No
registration
]
Registration
plates shall
not
be returned to the registrant until
proof of motor vehicle liability insurance is submitted to the
[
director
]
chief
administrator
.
���� g.��� If a registrant has not
surrendered his certificate of registration and registration plates or obtained
motor vehicle liability insurance within 90 days from the date of cancellation
of motor vehicle liability insurance, the
[
director
]
chief
administrator
shall suspend the driver's license of any such registrant.�
The suspension shall take effect on the date specified in the order and shall
remain in effect until termination of the suspension of the registrant's
registration.
���� h.��� The
[
Director
]
Chief
Administrator
of the
[
Division
of
]
Motor
[
Vehicles
]
Vehicle
Commission
shall adopt rules and regulations pursuant to the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.),
to implement the provisions of this section. The
[
director
]
chief
administrator
may, by regulation, require that the provisions of this
section shall be applicable to the termination of policies of motor vehicle
liability insurance for reasons other than cancellation for nonpayment of
premium, including nonrenewals.
���� i.���� Within 180 days of the
effective date of this act the
[
Division
of
]
Motor
[
Vehicles
]
Vehicle
Commission
shall develop a format for electronic reporting by insurers
writing private passenger automobile insurance, to the
[
division
]
commission
,
on a real-time basis, information regarding the cancellation of policies of
motor vehicle insurance, the issuance of new policies of motor vehicle
insurance, and changes of vehicle on policies of motor vehicle insurance in
force in order to verify compliance with the motor vehicle liability insurance
requirements of section 1 of P.L.1972, c.197 (C.39:6B-1), and the mandatory
automobile insurance requirements of section 4 of P.L.1998, c.21
(C.39:6A-3.1).� Information shall be maintained by driver's license number of
the named insured.� Other information to be provided by insurers shall be
established by the
[
director
]
chief
administrator
by regulation.
���� j.���� The
[
director
]
chief
administrator
shall establish an electronic
[
data base
]
database
containing the information provided for in subsection i. of this section, which
shall be made available to all law enforcement officers for the purpose of
enforcing the mandatory motor vehicle insurance requirements of section 1 of
P.L.1972, c.197 (C.39:6B-1).
The information contained in the database shall
be accessible to law enforcement officers via their computers, including
computers located in law enforcement vehicles.�
���� The
[
data base
]
database
shall not be made available until every insurer writing private passenger
insurance has complied with regulations of the
[
director
]
chief
administrator
and the information required by subsection i. of this section
is reported on a real-time basis.� The
[
Division
of
]
Motor
[
Vehicles
]
Vehicle
Commission
shall establish security procedures to protect the
confidentiality of the information
[
on
]
in
the
[
data
base
]
database
,
which shall preclude access to the information to any person not otherwise
entitled to it under this or any other law.
���� k.��� The
[
data base
]
database
shall be funded from the
Uninsured Motorist Prevention Fund
established pursuant to section 2 of P.L.1983, c.141 (C.39:6B-3).
(cf: P.L.1998, c.22, s.7)�
���� 4.��� This act shall take
effect on the first day of the seventh month next following enactment.�
STATEMENT
���� This bill establishes an
�Uninsured Vehicle Enforcement and Compliance Program� and an �Uninsured
Vehicle Enforcement Diversion Program.��
���� Under the �Uninsured Vehicle
Enforcement and Compliance Program,� counties, municipalities, and law
enforcement agencies would have the authority to enter into contractual
agreements with automated license plate reader providers to provide the
necessary technology and equipment.� A law enforcement agency would be
permitted to utilize the automated license plate readers for the purpose of
enforcing the requirement that drivers maintain motor vehicle liability
insurance.� Specifically, law enforcement officers would be permitted to
utilize automated license plate readers to determine whether a driver is
uninsured. The bill also requires law enforcement officers to have access via
computers located in law enforcement vehicles to the information contained in
the insurance database maintained by the Motor Vehicle Commission (MVC).�
���� The bill provides that access
to
the
database is to
be
restricted
to
authorized
prosecutors and
law
enforcement
agency
users
in
the
program.��
Any entity with which a contract has been executed to provide or
maintain the technology or equipment necessary to utilize automated license
plate readers or the database would be entitled to access the data collected
exclusively for the purposes of enforcing the provisions of the bill.�
���� The bill requires a law
enforcement officer to
verify
by
sworn
affidavit
that
a
photograph
generated
by
an
automatic
license
plate
reader
system
unit
identifies
a
particular
vehicle
operating
on
the public roads or highways of this
State
and
that
the
database confirmed
that
the
vehicle
was
uninsured
at
the
time
such
vehicle
was
being
operated.� The
affidavit
is to constitute
probable
cause
for
prosecution
under
the
compulsory motor vehicle insurance law
.
���� The
bill requires the automated license plate data
to be
retained
by
the prosecuting authority and
law
enforcement
agency
when
used
as
evidence
and then purged thereafter.�
Any data
collected
or
retained
through
the
use
of
an
automated
license
plate
reader
system
is not
to
be
used for purposes other than enforcing the motor
vehicle
compulsory motor vehicle insurance law.� Images of the driver or
motor vehicle occupants would not be used or maintained as evidence by any
prosecuting authority or law enforcement agency.� Any recorded image or
information produced in connection with the automated license plate reader would
not be deemed a public record under the �Open Public Records Act,� or the
common law concerning access to public records.�
���� The �Uninsured Vehicle
Enforcement and Compliance Program� would not take effect until the MVC
verifies that at least 90 percent of the personal lines auto insurance market
in the State submits insurance information to the commission�s database.�
���� In addition, this bill
establishes an �Uninsured Vehicle Enforcement Diversion Program� to allow county
and municipal prosecutors to defer prosecution of a person who violates the
compulsory motor vehicle insurance law.� Under the program, a prosecutor may
move before the court to postpone proceedings against a person who operates a
motor vehicle without insurance.� The prosecutor would have the sole discretion
to determine if an offender qualifies for and is admitted to the program after considering:
���� (1)�� whether it is in the
interest of public safety to postpone proceedings against the offender;
���� (2)�� the driving record of
the offender;��
���� (3)�� whether there are
criminal complaints pending against the offender; and
���� (4)�� whether the offender has
provided the prosecutor with
satisfactory
proof of motor vehicle liability
insurance
prior to the hearing.
���� The
bill requires a prosecutor to notify a person who is referred to the diversion
program.� The notification is to include the date on which the violation
occurred, a statement of the penalties for violating
the compulsory
motor vehicle insurance law, and the date on which the person is required to
submit to the prosecutor
satisfactory proof of
motor vehicle liability
insurance.�
����
A
prosecutor who determines that the person has failed to obtain motor vehicle
liability insurance may notify the court that the prosecutor is prepared to
proceed with prosecuting the offense and the court is to schedule court
proceedings, as appropriate.
A
prosecutor who moves before the court to postpone proceedings against a person
who violates the compulsory motor vehicle insurance law, is required to enter
into a deferral agreement with that person.� If, after a minimum of six months
from the date of the deferral agreement, the prosecutor is satisfied that the
person maintained motor vehicle liability insurance he or she may move before
the court to dismiss the charges.�
���� A person who enters into a
deferral agreement is required to pay a surcharge of $245.� Of the $240
assessment:
���� (1)�� $120 is to be paid to the
county or municipality in which the person entered the agreement to pay for the
cost of the Uninsured Vehicle Enforcement Diversion Program;��
���� (2)�� $120 is to be paid to
the municipal, county, or State authority that issued the summons for the cost
of equipping, operating, and monitoring the Uninsured Vehicle Enforcement and
Compliance Program, including but not limited to, contractual payments to third
party entities providing essential services and equipment for the detection of
violations of� the compulsory motor vehicle insurance law; and
���� (3)�� five dollars is to be
paid to the Public Employees' Retirement System.