HLS 14RS-635 ORIGINAL Page 1 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2014 HOUSE BILL NO. 851 BY REPRESENTATIVE TALBOT MTR VEHICLE/COMPULS INS: Increase penalties for driving with cancelled auto liability policy AN ACT1 To amend and reenact R.S. 32:862(G)(4) and (5), 863(A)(1), (3)(a), and (B)(2)(b),2 863.1(C)(1)(c), (D), and (I)(3), 863.2(A)(5) and (6), 864, and 865(A) and (B)(1),3 relative to the penalties for operating a motor vehicle without the required motor4 vehicle liability security; to increase penalties for failing to provide required proof5 of compliance; to require suspension, revocation, and cancellation of driver's license6 and registration for violations; to remove limits on the maximum amount of penalties7 and reinstatement fees that are assessed; to increase the administrative reinstatement8 fee; and to provide for related matters.9 Be it enacted by the Legislature of Louisiana:10 Section 1. R.S. 32:862(G)(4) and (5), 863(A)(1), (3)(a), and (B)(2)(b),11 863.1(C)(1)(c), (D), and (I)(3), 863.2(A)(5) and (6), 864, and 865(A) and (B)(1) are hereby12 amended and reenacted to read as follows: 13 §862. Proof of compliance14 * * *15 G. The prohibited actions and penalties for violations thereof are as follows:16 * * *17 (4) Whoever violates the provisions of this Subsection shall be fined not less18 than five hundred dollars nor more than one thousand dollars and shall be required19 HLS 14RS-635 ORIGINAL HB NO. 851 Page 2 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. to perform not less than forty hours nor more than two hundred hours of community1 service.2 (5) When the commissioner finds that any person has violated the provisions3 of this Subsection, the commissioner may shall suspend, revoke, or cancel the4 driver's license held by the offender and may shall suspend, revoke, or cancel the5 registration of each motor vehicle owned by the offender.6 * * *7 §863. Sanctions for false declaration; reinstatement fees; revocation of registration;8 review9 A.(1) Except as provided herein below, when the secretary determines that10 a vehicle is not covered by security as required by this Chapter or that the owner or11 lessee has allowed the required security to lapse, he shall revoke the registration of12 the vehicle, impound the vehicle, or and cancel the vehicle's license plate.13 * * *14 (3)(a) Sanctions for a violation of Paragraph (1) of this Subsection shall be15 imposed until proof of required liability security is provided to the secretary and all16 reinstatement fees are paid. Sanctions for a violation of Paragraph (2) of this17 Subsection shall be imposed for a period of not less than six twelve months nor more18 than eighteen months. However, in no event shall these sanctions be removed until19 such time as proof of the required security is provided to the secretary along with all20 appropriate fees required by law, including a reinstatement fee of twenty-five one21 hundred dollars per violation of Paragraph (1) of this Subsection if the vehicle was22 not covered by the required security for a period of one to thirty days, one two23 hundred fifty dollars if the vehicle was not covered by required security for a period24 of thirty-one to ninety days, and two five hundred dollars if the vehicle was not25 covered by required security for a period in excess of ninety days. No reinstatement26 fee shall be imposed by the secretary if the vehicle was not covered by required27 security for a period of ten days or less and the insured surrenders the vehicle's28 license plate to the secretary within ten days. The reinstatement fees for violations29 HLS 14RS-635 ORIGINAL HB NO. 851 Page 3 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. of Paragraph (2) of this Subsection shall be as follows: twenty-five two hundred fifty1 dollars for a first violation, one five hundred dollars for a second violation, and two2 hundred one thousand dollars for a third or subsequent violation, provided the3 offenses occurred within a five-year period. The reinstatement fee shall not be owed4 for an alleged violation of Paragraph (2) of this Subsection when proof of the5 required security is provided to the secretary. If at the time of reinstatement a person6 has multiple violations, the total amount of fees to be paid shall not exceed five7 hundred dollars, including any administrative fees for persons under sixty-five years8 old. At no time shall the total amount of fees, including any administrative fees,9 exceed two hundred dollars for persons sixty-five years or older.10 * * *11 B. The sanctions of Paragraph (A)(1) of this Section shall not be imposed,12 and any fine, fee, or other monetary sanction which has been remitted to the13 secretary pursuant to the sanctions of this Section, specifically including any14 reinstatement fee paid pursuant to Paragraph (A)(3) of this Section and any fee paid15 pursuant to Paragraph (D)(5) of this Section, shall be promptly refunded by the16 secretary to the person who paid it, if the owner or lessee furnishes any of the17 following:18 * * *19 (2) If such evidence is not furnished by the owner or lessee, any other20 evidence satisfactory to the secretary, that each of the following conditions are met:21 * * *22 (b) The vehicle is currently covered by security as required by R.S. 32:86123 and that the required security has been continuous without lapse.24 * * *25 §863.1. Evidence of compulsory motor vehicle liability security contained in26 vehicle; enforcement; penalty; fees27 * * *28 HLS 14RS-635 ORIGINAL HB NO. 851 Page 4 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. C(1)1 * * *2 (c) For a first offense there shall be a reinstatement fee of fifty one hundred3 dollars, for a second offense there shall be a reinstatement fee of one two hundred4 fifty dollars, and for any subsequent offense there shall be a reinstatement fee of five5 hundred dollars. The reinstatement fee contained herein shall be in addition to other6 appropriate registration fees allowed by law and reinstatement shall depend upon7 proof of compliance with the compulsory liability law.8 * * *9 D. Prior to reinstatement of registration and license plate privileges to any10 individual who cannot prove the required insurance coverage or security in effect at11 the time of the offense within three calendar days after the offense, the Department12 of Public Safety and Corrections shall collect a reinstatement fee of ten one hundred13 dollars to offset the costs of administering this Section. This ten- one hundred dollar14 fee shall be in addition to any other fines, fees, or penalties owed prior to15 reinstatement of privileges.16 * * *17 I.18 * * *19 (3) If the owner fails to provide the proof required in Paragraph (2) of this20 Subsection, there shall be a fine of fifty one hundred dollars for a first offense, a fine21 of one two hundred fifty dollars for a second offense, and a fine of five hundred22 dollars for any subsequent offense.23 §863.2. Notification of the cancellation or issuance of security; penalties; database24 development25 A.26 * * *27 (5) If any cancellation of a motor vehicle liability policy occurs at the28 request of the insured, the insurer is not obligated to cancel such policy earlier than29 HLS 14RS-635 ORIGINAL HB NO. 851 Page 5 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. ten days prior to actual receipt by the insurer of such request. The insurer shall1 notify the commissioner of the request for cancellation within five days of the2 request.3 (6) If any cancellation of a motor vehicle liability insurance policy occurs4 as a result of the rescission other cancellation of the sale of the motor vehicle on5 which the policy is issued, the insurer shall notify the secretary of the cancellation6 and the circumstances of the cancellation within five days, and the insured shall not7 be liable for any penalty or fee imposed for failure to maintain the security required8 by law.9 * * *10 §864. Criminal sanctions for false declaration11 Any person, firm or corporation which violates R.S. 32:863(A)(2) shall be12 guilty of a misdemeanor and upon conviction shall be fined not more less than one13 five hundred twenty-five dollars nor more than one thousand dollars or imprisoned14 for a period of not more than thirty days. 15 §865. Criminal sanctions for operating motor vehicle not covered by security16 A. Any person knowingly operating a motor vehicle and any owner allowing17 a motor vehicle to be operated, when such motor vehicle is not covered by the18 security required under R.S. 32:861 shall, upon conviction, be fined not more less19 than five hundred dollars nor more than one thousand dollars. 20 B.(1) If the vehicle is in any manner involved in an accident within this state,21 when such motor vehicle is not covered by the security required under R.S. 32:861,22 the owner thereof shall, upon conviction, be fined not more less than five hundred23 dollars nor more than one thousand dollars, shall have the registration of the vehicle24 revoked for a period of sixty one hundred eighty days, and shall have his driving25 privileges suspended for a period of sixty one hundred eighty days. 26 * * *27 HLS 14RS-635 ORIGINAL HB NO. 851 Page 6 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Talbot HB No. 851 Abstract: Increases penalties for operating a vehicle without the required liability insurance. Present law requires a fine not to exceed $1,000 for violation of the Motor Vehicle Safety Responsibility law. Proposed law retains present law and additionally requires a minimum fine of $500. Present law provides that the Dept. of Public Safety and Corrections (DPS&C) may suspend, revoke, or cancel the driver's license of a driver who violates the Motor Vehicle Safety Responsibility law. Proposed law requires that DPS&C suspend, revoke, or cancel the driver's license of a driver who violates the Motor Vehicle Safety Responsibility law. Present law provides that DPS&C may suspend, revoke, or cancel the registration of each motor vehicle owned by a driver who violates the Motor Vehicle Safety Responsibility law. Proposed law requires that DPS&C suspend, revoke or cancel the registration of each motor vehicle owned by a driver who violates the Motor Vehicle Safety Responsibility law. Present law requires that DPS&C revoke the registration, impound, or cancel the vehicle license plate of a vehicle not covered by security as required by the Motor Vehicle Safety Responsibility law. Proposed law retains present law but requires that DPS&C revoke the registration, impound the vehicle, and cancel the vehicle license plate of a vehicle not covered by security as required by the Motor Vehicle Safety Responsibility law. Present law requires that DPS&C revoke the registration, impound the vehicle, and cancel the vehicle license plate of a vehicle for period of not less than six months nor longer than 18 months when the owner submitted false information that the vehicle was covered by the required security in his application for registration or in his application for inspection. Proposed law retains present law but requires that DPS&C revoke the registration, impound the vehicle, and cancel the vehicle license plate of a vehicle for period of not less than 12 months. Present law requires that DPS&C impose a reinstatement fee of $25 if a vehicle was not covered by the required security for a period of 1 to 31 days, a fee of $100 for a period of 31 to 90 days, and a fee of $200 for a period in excess of 90 days. Proposed law retains present law but imposes a reinstatement fee of $100 if a vehicle was not covered by the required security for a period of 1 to 31 days, a fee of $250 for a period of 31 to 90 days, and a fee of $500 for a period in excess of 90 days. Present law requires that DPS&C impose a reinstatement fee of $25 if a vehicle was not covered by the required security for a period of 1 to 31 days, a fee of $100 for a period of 31 to 90 days, and a fee of $200 for a period in excess of 90 days when the registration has HLS 14RS-635 ORIGINAL HB NO. 851 Page 7 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. been revoked because the owner submitted false information that the vehicle was covered by the required security in his application for registration or in his application for inspection. Proposed law retains present law but imposes a reinstatement fee of $250 if a vehicle was not covered by the required security for a period of 1 to 31 days, a fee of $500 for a period of 31 to 90 days, and a fee of $1,000 for a period in excess of 90 days. Present law provides that if a person has multiple violations at the time of reinstatement, the total amount of fees shall not exceed $500 for a person under 65 years old, and $200 for a person 65 years or older. Proposed law removes the maximum amount of fees that can be owed by any person at the time of reinstatement. Present law provides that DPS&C shall waive the sanctions and reinstatement fees for failure to maintain the required security when the owner furnishes evidence to DPS&C that the vehicle is currently covered by the required security Proposed law retains present law but requires that the required security have been continuous without lapse. Present law requires DPS&C charge a reinstatement fee of $50 for a first offense and $150 for a second offense of failing to keep in the vehicle documentation that the vehicle is in compliance with the Motor Vehicle Safety Responsibility law. Proposed law retains present law but requires DPS&C charge a reinstatement fee of $100 for a first offense and $250 for a second offense. Present law requires DPS&C collect a reinstatement administration fee of $10, in addition to any other fines, fees, or penalties owed when a registration has been revoked for failing to keep in the vehicle documentation that the vehicle is in compliance with the Motor Vehicle Safety Responsibility law. Proposed law retains present law but requires DPS&C collect a reinstatement administration fee of $100. Present law requires a fine of $50 for a first offense and a fine of $150 for a second offense when the operator of a vehicle registered in another state is involved in an accident in La. and is unable to provide documentation that the vehicle is in compliance with the Motor Vehicle Safety Responsibility law. Proposed law retains present law but requires a fine of $100 for a first offense and $250 for a second offense. Proposed law requires an insurer notify DPS&C within five days of receipt of a request from an insured to cancel his motor vehicle liability policy. Present law requires an insurer notify DPS&C when the insurer receives notification of cancellation of a motor vehicle liability policy due to rescission or other cancellation of the sale of the vehicle on which the policy was issued. Proposed law retains present law but requires the insurer to notify DPS&C within five days of notification of cancellation of a motor vehicle liability policy due to rescission or other cancellation of the sale of the vehicle on which the policy was issued. Present law requires a fine of not more than $125 for the submission of false information that a vehicle was covered by the required security in an application for registration or an application for inspection. HLS 14RS-635 ORIGINAL HB NO. 851 Page 8 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Proposed law retains present law but requires a minimum fine of $500 and a maximum fine of $1,000. Present law requires a fine of not more than $500 for knowingly operating a vehicle or allowing to be operated without the required security. Proposed law retains present law but requires a minimum fine of $500 and a maximum fine of $1,000. Present law requires a fine of not more than $500, revocation of vehicle registration for 60 days, and suspension of driving privileges for 60 days imposed upon the owner of a vehicle involved in an accident in La. when not covered by the required security. Proposed law retains present law but requires a minimum fine of $500 and a maximum fine of $1,000, revocation of vehicle registration for 180 days, and suspension of driving privileges for 180 days. (Amends R.S. 32:862(G)(4) and (5), 863(A)(1), (3)(a), and (B)(2)(b), 863.1(C)(1)(c), (D), and (I)(3), 863.2(A)(5) and (6), 864, and 865(A) and (B)(1))