Whereas, the 120th Legislature enacted a law in the year 2001 to reduce the number of uninsured vehicles traveling on the State's public ways by requiring the Secretary of State's office to suspend the registrations of any vehicles for which insurance is cancelled if evidence of new insurance or reinstated insurance is not demonstrated within 30 days of the cancellation of insurance; and

Whereas, this law became effective on January 1, 2005; and

Whereas, this law requires insurance companies to notify the Secretary of State's office immediately upon cancelling an insurance policy and does not allow the Secretary of State time to learn whether the person whose policy was cancelled has purchased a policy with a different company or has had the cancelled policy reinstated; and

Whereas, the current process as defined by law will unnecessarily result in thousands of notifications of suspensions being mailed each month to persons who do indeed insure their vehicles but were caught in the cancellation reporting system because they simply changed insurance carriers or had policies reinstated; and

Whereas, the paperwork and labor required to revoke all these unnecessary notifications of registration suspensions will create unnecessary government expense and bureaucracy and place unnecessary requirements upon the State's citizens to demonstrate evidence of insurance; and

Whereas, allowing a reconciliation period within the Secretary of State's office to allow the Secretary of State to reconcile cancellations with demonstrations of evidence of insurance prior to mailing out notifications of registration suspensions will facilitate an efficient and cost effective process that will significantly reduce the number of notifications of registration suspensions to be sent, and will greatly improve the effectiveness of identifying those vehicles that are uninsured so that appropriate action can be taken to remove the uninsured vehicles from the State's public ways; and

Whereas, allowing insurance companies to provide evidence of insurance of new policies to the Secretary of State with electronic transmittal of information will also decrease the number of unnecessary notifications of registration suspensions