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ACT No. 641
Regular Session, 2014
HOUSE BILL NO. 872
BY REPRESENTATIVE IVEY
AN ACT1
To amend and reenact R.S. 32:862(G)(4), 863(A)(1) and (3)(a) and (b)(I), and (B)(2)(b),2
863.1(C)(1)(c) and (I)(3), 864, and 865(A) and (B)(1), to enact R.S. 32:868, and to3
repeal the Act that originated as House Bill No. 851 of the 2014 Regular Session of4
the Louisiana Legislature, relative to increasing the penalties for operating a motor5
vehicle without the required motor vehicle liability security; to require increased6
penalties for failing to provide required proof of compliance; to require suspension,7
revocation, or cancellation of driver's license and registration for violations; to8
remove limits on the maximum amount of penalties and reinstatement fees that are9
assessed; to create the Insurance Verification System Fund and to dedicate revenue10
from the increased penalties to the fund; and to provide for related matters.11
Be it enacted by the Legislature of Louisiana:12
Section 1. R.S. 32:862(G)(4), 863(A)(1) and (3)(a) and (b)(I), and (B)(2)(b),13
863.1(C)(1)(c) and (I)(3), 864, and 865(A) and (B)(1) are hereby amended and reenacted and14
R.S. 32:868 is hereby enacted to read as follows:15
§862. Proof of compliance16
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G. The prohibited actions and penalties for violations thereof are as follows:18
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(4) Whoever violates the provisions of this Subsection shall be fined not less20
than seventy-five dollars, nor more than one thousand dollars, and shall be required21 ENROLLEDHB NO. 872
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to perform not less than forty hours nor more than two hundred hours of community1
service.2
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§863. Sanctions for false declaration; reinstatement fees; revocation of registration;4
review5
A.(1) Except as provided herein below, in this Section, when the secretary6
determines that a vehicle is not covered by security as required by this Chapter or7
that the owner or lessee has allowed the required security to lapse, he shall revoke8
the registration of the vehicle, impound the vehicle, or and cancel the vehicle's9
license plate.10
* * *11
(3)(a) Sanctions for a violation of Paragraph (1) of this Subsection shall be12
imposed until proof of required liability security is provided to the secretary and all13
reinstatement fees are paid. Sanctions for a violation of Paragraph (2) of this14
Subsection shall be imposed for a period of not less than six twelve months nor more15
than eighteen months. However, in no event shall these sanctions be removed until16
such time as proof of the required security is provided to the secretary along with all17
appropriate fees required by law, including a reinstatement fee of twenty-five one18
hundred dollars per violation of Paragraph (1) of this Subsection if the vehicle was19
not covered by the required security for a period of one to thirty days, one two20
hundred fifty dollars if the vehicle was not covered by required security for a period21
of thirty-one to ninety days, and two five hundred dollars if the vehicle was not22
covered by required security for a period in excess of ninety days. No reinstatement23
fee shall be imposed by the secretary if the vehicle was not covered by required24
security for a period of ten days or less and the insured surrenders the vehicle's25
license plate to the secretary within ten days. The reinstatement fees for violations26
of Paragraph (2) of this Subsection shall be as follows: twenty-five two hundred fifty27
dollars for a first violation, one five hundred dollars for a second violation, and two28
hundred one thousand dollars for a third or subsequent violation, provided the29
offenses occurred within a five-year period. The reinstatement fee shall not be owed30 ENROLLEDHB NO. 872
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for an alleged violation of Paragraph (2) of this Subsection when proof of the1
required security is provided to the secretary. If at the time of reinstatement a person2
has multiple violations, the total amount of fees to be paid shall not exceed five3
eight hundred fifty dollars, including any administrative fees for persons under sixty-4
five years old for violations of Paragraph(1) of this Subsection, one thousand5
seventy-five dollars for violations of Paragraph(2) of this Subsection. At no time6
shall the total amount of fees, including administrative fees, exceed two hundred7
fifty dollars for persons sixty-five years or older.8
(b)9
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(I) Notwithstanding any other provision of this Chapter to the contrary,11
except for R.S. 32:868, and after satisfying the requirements of the Bond Security12
and Redemption Fund, thirty-six percent of the revenues from the reinstatement fees13
shall be used as provided by law for the construction, maintenance, and operating14
expenses of new capital immovables and related movables.15
* * *16
B. The sanctions of Paragraph (A)(1) of this Section shall not be imposed,17
and any fine, fee, or other monetary sanction which has been remitted to the18
secretary pursuant to the sanctions of this Section, specifically including any19
reinstatement fee paid pursuant to Paragraph (A)(3) of this Section and any fee paid20
pursuant to Paragraph (D)(5) of this Section, shall be promptly refunded by the21
secretary to the person who paid it, if the owner or lessee furnishes any of the22
following:23
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(2) If such evidence is not furnished by the owner or lessee, any other25
evidence satisfactory to the secretary, that each of the following conditions are met:26
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(b) The vehicle is currently covered by security as required by R.S. 32:86128
and that the required security has been continuous without lapse.29
* * *30 ENROLLEDHB NO. 872
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§863.1. Evidence of compulsory motor vehicle liability security contained in1
vehicle; enforcement; penalty; fees2
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C.(1)4
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(c) For a first offense there shall be a reinstatement fee of fifty one hundred6
dollars, for a second offense there shall be a reinstatement fee of one two hundred7
fifty dollars, and for any subsequent offense there shall be a reinstatement fee of five8
hundred dollars. The reinstatement fee contained herein shall be in addition to other9
appropriate registration fees allowed by law and reinstatement shall depend upon10
proof of compliance with the compulsory liability law.11
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I.13
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(3) If the owner fails to provide the proof required in Paragraph (2), of this15
Subsection, there shall be a fine of fifty one hundred dollars for a first offense, a fine16
of one two hundred fifty dollars for a second offense, and a fine of five hundred17
dollars for any subsequent offense.18
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§864. Criminal sanctions for false declaration20
Any person, firm or corporation which violates R.S. 32:863(A)(2) shall be21
guilty of a misdemeanor and upon conviction shall be fined not more less than one22
five hundred twenty five dollars, nor more than one thousand dollars, or imprisoned23
for a period of not more than thirty days.24
§865. Criminal sanctions for operating motor vehicle not covered by security25
A. Any person knowingly operating a motor vehicle and any owner allowing26
a motor vehicle to be operated, when such motor vehicle is not covered by the27
security required under R.S. 32:861 shall, upon conviction, be fined not more less28
than five hundred dollars, nor more than one thousand dollars.29 ENROLLEDHB NO. 872
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B.(1) If the vehicle is in any manner involved in an accident within this state,1
when such motor vehicle is not covered by the security required under R.S. 32:861,2
the owner thereof shall, upon conviction, be fined not more less than five hundred3
dollars, nor more than one thousand dollars, shall have the registration of the vehicle4
revoked for a period of sixty one hundred eighty days, and shall have his driving5
privileges suspended for a period of sixty one hundred eighty days.6
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§868. Funding of real-time system to verify motor vehicle insurance; Insurance8
Verification Fund; creation9
A. Of the reinstatement fees assessed in R.S. 32:863(A)(3)(a), an amount of10
seventy-five dollars from each reinstatement fee levied for lack of required security11
up to thirty days, one hundred fifty dollars from each reinstatement fee levied for12
lack of required security between thirty-one days and ninety days, and three hundred13
dollars from each reinstatement fee levied for lack of security for in excess of ninety14
days, and of the reinstatement fees assessed in R.S. 32:863.1(C)(1)(c) and (I)(3) an15
amount of fifty dollars from each first offense and one hundred dollars from each16
second offense, shall be, after first having been credited to the Bond Security and17
Redemption Fund as required by Article VII, Section 9(B) of the Louisiana18
Constitution, deposited into the Insurance Verification System Fund.19
B. There is hereby created in the state treasury the Insurance Verification20
System Fund, hereinafter referred to as the "fund". Monies in the fund shall be21
invested in the same manner as monies in the state general fund. Interest earned on22
investment of monies in the fund shall be deposited in and credited to the fund. The23
monies in this fund shall be used solely as provided for in this Section and only in24
the amounts appropriated by the legislature. Unexpended and unencumbered monies25
in the fund shall remain in the fund. Monies in the fund shall be used in amounts26
appropriated by the legislature as follows:27
(1) For Fiscal Year 2014-2015, monies in the fund shall be used as follows:28
(a) First, to fully fund the creation and maintenance of the real-time system29
to verify motor vehicle insurance authorized by R.S. 32:863.2(F).30 ENROLLEDHB NO. 872
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(b) The next forty-two million dollars shall be dedicated to the Department1
of Public Safety and Corrections, office of state police.2
(c) The remainder of deposits shall be used for public safety and law3
enforcement purposes.4
(2) For Fiscal Year 2015-2016 and each fiscal year thereafter, monies in the5
fund shall be used as follows:6
(a) First, to fully fund the annual maintenance of the real-time system to7
verify motor vehicle insurance authorized by R.S. 32:863.2(F).8
(b) The next forty-two million dollars per year shall be dedicated to the9
Department of Public Safety and Corrections, office of state police.10
(c) In the event House Bill No. 562 of the 2014 Regular Session of the11
Legislature is enacted into law, the next seven million dollars per year shall be used12
to fund the housing of parolees who are detained in sheriffs' jails pending their13
revocation hearing as provided in R.S. 15:824(B)(1)(e)(ii).14
(d) The next one million dollars per year shall be used to provide additional15
funding to district attorneys and assistant district attorneys, specifically to fund16
additional assistant district attorneys beginning in 2015.17
(e) The remainder of monies in the fund shall be used for public safety and18
law enforcement purposes.19
(3) Funds from the Insurance Verification System Fund shall not be used to20
pay any costs associated with the implementation of a system for the issuance of21
REAL ID compliant drivers' licenses and special identification cards.22
Section 2. The Act that originated as House Bill No. 851 of the 2014 Regular23
Session of the Louisiana Legislature is hereby repealed in its entirety.24 ENROLLEDHB NO. 872
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Section 3. This Act shall become effective July 1, 2014.1
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: