Tuesday, June 7, 2011
(OKLAHOMA CITY) Insurance Commissioner John Doak has requested that the attorney general determine whether a 2010 bill increasing the costs of driving records was properly enacted by the Legislature.
“Driving records are routinely required to determine the appropriate premium rate for auto insurance,” Doak said. “Even if this higher fee is paid by a consumer’s insurer, the fee is indirectly passed on to all Oklahoma policyholders in the form of increased rates.”
The bill increased the cost of obtaining a motor vehicle report from the Department of Public Safety from $10 dollars to $25, a 150 percent increase.
“Anytime an insurance company requests the driving record of an application for motor vehicle insurance or the record of a motor vehicle policyholder, they are subject to this fee increase,” Doak explained. "That concerns me greatly.”
The 2010 bill – SB 1556 – was approved by the Legislature and signed by then Gov. Brad Henry in 2010. As a candidate for office, Doak sought an injunction to prevent the bill from being implemented and asked the court to nullify the measure. Doak withdrew that petition, which he filed as a citizen, after being elected to office in Nov. 2010.
In his request for an attorney general’s opinion, Doak argues that the bill is a revenue raising measure, noting that all of the fee increase and a portion of the original fee would be allocated to the General Revenue Fund. The new fee, Doak wrote in the letter to the attorney general, “…is so wholly out of proportion to the expenses incurred by the Department of Public Safety in administering Motor Vehicle Reports that it cannot be considered anything but an attempt to raise revenue.”
Doak’s main objection is that was not properly enacted. Article 5, Section 33 of the Oklahoma Constitution requires that revenue raising measure originate in the House, may not become law without a vote of the people unless approved three-quarters of each chamber and may not be passed during the last five days of the session. The bill originated in the Senate, did not receive three-quarters approval in the House and was passed by the Senate in the last four days of the 2010 session and by the House on the final day of the session.
“This fee increase impacts everyone and I believe it was not properly implemented,” Doak said. “Hopefully, the attorney general will reach the same conclusion.”
- 30 -
ABOUT THE OKLAHOMA INSURANCE DEPARTMENT
The Oklahoma Insurance Department, an agency of the State of Oklahoma, is responsible for the education and protection of the insurance-buying public and for oversight of the insurance industry in the state.
###
For more information contact:Shawn Ashley
(405) 521-4525
(405) 568-6004
e-mail: shawn.ashley@oid.ok.gov