SLS 16RS-279 ORIGINAL 2016 Regular Session SENATE BILL NO. 299 BY SENATOR MILKOVICH MOTOR VEHICLES. Provides relative to fees, charges, penalties, and fines for certain traffic violations.(gov sig) 1 AN ACT 2 To amend and reenact R.S. 32:8(A)(1), (2), and (3), and (B), 57.1, 863(A)(3)(a) and (4), and 3 (D)(1), 863.1(C)(1), (2), (5), (6), and (7), and (I)(3), to enact R.S. 32:863.1(G)(5), 4 and to repeal R.S. 32:8(C) and 863(D)(5), relative to motor vehicles; to reduce 5 certain fees, charges, penalties, and fines for certain traffic violations; and to provide 6 for related matters. 7 Be it enacted by the Legislature of Louisiana: 8 Section 1. R.S. 32:8(A)(1), (2), and (3), and (B), 57.1, 863(A)(3)(a) and (4), and 9 (D)(1), 863.1(C)(1), (2), (5), (6), and (7), and (I)(3) are hereby amended and reenacted and 10 R.S. 32:863.1(G)(5) is hereby enacted to read as follows: 11 §8. Final delinquent debt; office of motor vehicles 12 A. For purposes of this Section, the following words shall have the following 13 meanings unless the context clearly indicates otherwise: 14 (1) "Debt" means any legally collectible liquidated authenticated sum due 15 and owed to the Department of Public Safety and Corrections, office of motor 16 vehicles, pursuant to R.S. 32:57.1, 863, or 863.1. 17 (2) "Delinquent debt" means a debt fine, fee, or other monetary sanction Page 1 of 11 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 299 SLS 16RS-279 ORIGINAL 1 for which the office of motor vehicles has provided a written notice for 2 suspension or revocation of driving privileges or motor vehicle registration 3 privileges as provided in R.S. 32:852(E), that is sixty ninety days or more past due 4 and for which the office of motor vehicles has proof of personal receipt of the 5 notice by the debtor by official delivery receipt or certificate from the United 6 States Postal Service. 7 (3) "Final debt" means the amount sum due is authenticated as delinquent 8 debt, no longer negotiable is not subject to negotiation or dispute, and that the 9 debtor has no further right of administrative and judicial review, except for reasons 10 of lack of due process. 11 B. The office of motor vehicles shall may refer all final delinquent debts debt 12 to the office of debt recovery as provided in R.S. 47:1676. Final delinquent debt 13 referrals shall include data and information in the required format necessary to 14 institute collection procedures. All delinquent debts debt shall be authenticated by 15 the office of motor vehicles prior to being referred to the office of debt recovery. 16 Once the delinquent debt becomes final debt, and prior to referral to the office of 17 debt recovery, the office of motor vehicles shall notify the debtor in writing as 18 provided in R.S. 32:852(E) that failure to pay the debt in full or make payment 19 arrangements with the office of motor vehicles within sixty ninety days shall 20 subject the debt to the maximum amount owed together with the additional fee 21 collected by the office of debt recovery provided for in R.S. 47:1676, and that the 22 debtor has no right to judicial review. All funds collected pursuant to the 23 provisions of this Act shall be deposited into the Debt Recovery Fund and utilized 24 for the office of state police in the amount of twenty-five million dollars. 25 * * * 26 §57.1. Failure to honor written promise to appear; penalty; disposition of fines 27 A. Whenever an arrested person who was released on his written promise to 28 appear before a magistrate at the place and time specified in a summons described 29 in R.S. 32:391(B) fails to honor his written promise to appear, the magistrate or Page 2 of 11 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 299 SLS 16RS-279 ORIGINAL 1 judge of the court exercising jurisdiction shall immediately forward to the 2 Department of Public Safety and Corrections notice of the failure to appear, with 3 information necessary for identification of the arrested person. Thereupon, unless the 4 original charges have been disposed of, the Department of Public Safety and 5 Corrections shall immediately notify the arrested person of suspension of his 6 operator's license and the imposition of a fifty-dollar fee, regardless of the 7 disposition of the original charge. The Department of Public Safety and Corrections 8 likewise shall inform the arrested person that his operator's license cannot shall not 9 be renewed or reissued until the forwarding court exercising jurisdiction certifies that 10 he had has honored the appearance promise or paid an appropriate fine for the 11 offense as determined by the forwarding court exercising jurisdiction. 12 B. Whenever the arrested person makes an appearance as required by 13 Subsection A hereof or pays an appropriate fine for the offense committed, as 14 determined by the court, the prosecuting authority shall immediately notify the 15 Department of Public Safety and Corrections thereof. Upon such notification and 16 payment of an additional fifty dollars a twenty-five dollar reinstatement fee to the 17 department office of motor vehicles, the operator's license of the arrested person 18 shall be renewed or reissued for the purpose of this Section. Twelve dollars and fifty 19 cents of the additional fine imposed by this Section shall be paid to the court 20 exercising jurisdiction, to be deposited in that court's criminal court fund and to be 21 used in the same manner as the other sums deposited in said fund. 22 C. If after sixty ninety calendar days from the date of the notification issued 23 by the Department of Public Safety and Corrections as required in Subsection A of 24 this Section the arrested person has failed to comply, the fees provided for in this 25 Section shall may be considered final delinquent debt. 26 * * * 27 §863. Sanctions for false declaration; reinstatement fees; revocation of registration; 28 review 29 A.(1) * * * Page 3 of 11 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 299 SLS 16RS-279 ORIGINAL 1 (3)(a) Sanctions for a violation of Paragraph (1) of this Subsection shall be 2 imposed until proof of required liability security is provided to the secretary and all 3 reinstatement fees are paid. Sanctions for a violation of Paragraph (2) of this 4 Subsection shall be imposed for a period of not less than twelve three months nor 5 more than eighteen six months. However, in no event shall these sanctions be 6 removed until such time as proof of the required security is provided to the secretary 7 along with all appropriate fees required by law, including a reinstatement fee of one 8 hundred twenty-five dollars per violation of Paragraph (1) of this Subsection if the 9 vehicle was not covered by the required security for a period of one to thirty days, 10 two hundred fifty dollars if the vehicle was not covered by required security for a 11 period of thirty-one to ninety days, and five one hundred dollars if the vehicle was 12 not covered by required security for a period in excess of ninety days. No 13 reinstatement fee shall be imposed by the secretary if the vehicle was not covered by 14 required security for a period of ten days or less and the insured surrenders the 15 vehicle's license plate to the secretary within ten days. The reinstatement fees for 16 violations of Paragraph (2) of this Subsection shall be as follows: two hundred fifty 17 twenty-five dollars for a first violation, five hundred fifty dollars for a second 18 violation, and one thousand hundred dollars for a third or subsequent violation. The 19 reinstatement fee shall not be owed for an alleged violation of Paragraph (2) of this 20 Subsection when proof of the required security is provided to the secretary within 21 sixty days of the date of the notice. If at the time of reinstatement, a person has 22 multiple violations and is within sixty days of the notice, the total amount of fees to 23 be paid shall not exceed eight five hundred fifty dollars, for violations of Paragraph 24 (1) of this Subsection, one thousand seventy-five dollars for violations of or 25 Paragraph (2) of this Subsection. At no time shall the total amount of fees, including 26 administrative fees, exceed two hundred fifty dollars for persons sixty-five years or 27 older. After sixty ninety days of the date of the notice, all fees shall may be 28 considered final delinquent debt and therefore owed, and the eight hundred fifty 29 dollar limit for persons under sixty-five years shall no longer apply forwarded to Page 4 of 11 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 299 SLS 16RS-279 ORIGINAL 1 the office of debt recovery after. 2 * * * 3 (4) Fees shall be paid to the secretary, who shall remit them to the state 4 treasurer to be credited to the Bond Security and Redemption Fund as provided in 5 R.S. 32:853(B)(2) state general fund. 6 * * * 7 D.(1) When the secretary seeks to impose the sanctions required in this 8 Section, he shall send written notice to the owner, lessee, or other person against 9 whom sanctions are intended at the last address furnished to the department as 10 provided in R.S. 32:852(E). Notwithstanding the provisions of R.S. 32:852(E), such 11 notice may be sent by first class mail. A notice of noncompliance, issued by a law 12 enforcement officer under the provisions of R.S. 32:863.1(C)(1), shall serve as notice 13 to the owner, lessee, or other person. Prior to imposition of such sanctions, a hearing 14 may be requested within ten days from the date of notice. Sanctions shall not be 15 imposed until all rights for appeal have expired or been exhausted. 16 * * * 17 §863.1. Evidence of compulsory motor vehicle liability security contained in 18 vehicle; enforcement; penalty; fees 19 * * * 20 C.(1)(a) If the operator of a motor vehicle is unable to show compliance with 21 the provisions of this Part by displaying the required document when requested to 22 do so, the motor vehicle shall be impounded and the operator shall be issued a notice 23 of noncompliance with the provisions of this Part on a form to be provided by the 24 department as provided in R.S. 32:852(E). Notwithstanding the provisions of R.S. 25 32:852(E), such notice may be sent by first class mail. A copy of the notice of 26 noncompliance shall be provided to the towing or storage company and a copy shall 27 be forwarded to the office of motor vehicles within three calendar days after the 28 notice of noncompliance was served. The notice of noncompliance shall serve as 29 notice of administrative hearings rights. In addition, the law enforcement officer Page 5 of 11 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 299 SLS 16RS-279 ORIGINAL 1 shall remove the license plate from the vehicle if the vehicle is registered in 2 Louisiana. The law enforcement officer shall deliver the vehicle license plate to the 3 chief of the agency which employs the officer, or to a person in that agency 4 designated to receive such license plates. In those cases in which a motor vehicle is 5 not impounded, a copy of the notice of noncompliance shall be attached to the 6 vehicle license plate and both shall be delivered to the nearest office of motor 7 vehicles within three calendar days after the notice of noncompliance was served. 8 (b) The owner of the vehicle shall have three fifteen calendar days, excluding 9 Saturdays, Sundays, and legal holidays, from the date that the notice of 10 noncompliance was issued to present to the office of motor vehicles proof of 11 insurance coverage or security in effect at the time of the issuance of the notice of 12 noncompliance. If the vehicle was properly insured at the time the notice was issued, 13 any valid license plate shall be returned within forty-eight hours, exclusive of legal 14 holidays, to the owner of the vehicle at no cost to the owner. However, if, within 15 sixty days from the date the notice of noncompliance is issued, the owner fails to 16 provide proof of the fact that the vehicle was properly insured at the time the notice 17 of noncompliance was issued, the chief administrative officer of the office of motor 18 vehicles shall destroy, or shall cause to be destroyed, the license plate removed from 19 that owner's vehicle and shall notify the secretary that the owner of the vehicle is not 20 in compliance with the compulsory liability law. Upon receipt of such notification, 21 the secretary shall revoke the registration of such vehicle. Sixty days after the date 22 of issuance of the notice of noncompliance, the fees imposed in this Section shall be 23 owed even if the owner subsequently provides proof the motor vehicle was insured, 24 and all such fees shall be considered final delinquent debt. 25 (c) For a first offense there shall be a reinstatement fee of one hundred 26 twenty-five dollars, for a second offense there shall be a reinstatement fee of two 27 hundred fifty dollars, and for any subsequent offense there shall be a reinstatement 28 fee of five one hundred dollars. The reinstatement fee contained herein shall be in 29 addition to other appropriate registration fees allowed by law and reinstatement Page 6 of 11 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 299 SLS 16RS-279 ORIGINAL 1 Reinstatement shall depend upon proof of compliance with the compulsory liability 2 law. 3 (2) In those cases in which the motor vehicle is not impounded, any law 4 enforcement officer who removes and takes a license plate pursuant to the provisions 5 of this Section shall issue for attachment to the rear end of the vehicle, a temporary 6 sticker denoting its use in lieu of an official license plate. The sticker shall bear the 7 date upon which it was issued in written or stamped numerals or letters not less than 8 three inches in height. This temporary sticker shall only be effective for a period of 9 three fifteen calendar days, excluding Saturdays, Sundays, and legal holidays, 10 beginning from the day on which the license plate is taken. 11 * * * 12 (5)(a) The administrative hearing shall be limited to a review of the issue of 13 whether the vehicle was covered by a valid policy of insurance at the time of the 14 alleged violation. The records of the department on the particular violation shall be 15 prima facie proof of the violation, and owner or operator shall have the burden of 16 proving that the vehicle was covered by a valid policy of insurance or was self- 17 insured pursuant to this Chapter at the time of the violation. The owner or operator 18 may subpoena any witness to appear at the hearing, including the officer issuing the 19 violation, to establish that the owner or operator was in compliance with the law at 20 the time of the alleged violation. A request for a hearing shall not stay the sanctions 21 required by this Part. If it is determined at the administrative hearing that the vehicle 22 was covered by a valid policy of insurance or was self-insured pursuant to this 23 Chapter at the time of the violation, but that such proof was not presented to the law 24 enforcement officer at the time the vehicle was impounded, then the vehicle owner 25 department shall be required to pay the storage and wrecker fees of the person or 26 company who impounded and towed the subject vehicle. 27 (b) The department or other agency that conducts the hearings shall 28 promulgate such rules and regulations as are necessary to implement the 29 requirements of this Section. Any action for judicial review of the decision from the Page 7 of 11 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 299 SLS 16RS-279 ORIGINAL 1 administrative hearing shall be in the same manner and under the same conditions 2 as provided in R.S. 32:414 R.S. 49:964. No court shall issue an injunction, stay or 3 other process preventing the enforcement of the sanctions required by this Part 4 pending the hearing provided for in this Part, except as provided by R.S. 49:964. 5 (6) The impounded vehicle shall remain impounded and the registration shall 6 remain suspended until such time as proof of valid insurance is given to the 7 Department of Public Safety and Corrections. Notwithstanding any other provision 8 of law to the contrary, in no event shall a car be released from impoundment until 9 such time as proof, in writing, has been presented from the Department of Public 10 Safety and Corrections that all penalties, fees, fines and requirements of this Section 11 have been met and until such time as proof, in writing, is presented to the office 12 of motor vehicles that all penalties, fees, and fines have been paid. 13 (7) In those instances when there is a passenger in the motor vehicle under 14 the age of twelve or when the driver or a passenger in the motor vehicle has a 15 disability or when considering the location and the time of day of the stop, the law 16 enforcement officer perceives that there would be a threat to the public safety or to 17 the occupants in the motor vehicle, such law enforcement officer enforcing the 18 provision of this Section may in lieu of the impoundment provisions of this Section, 19 seize the license plate and issue a temporary sticker valid for three ten calendar days, 20 excluding Saturdays, Sundays, and legal holidays. Upon expiration of the sticker, 21 the vehicle shall not be driven until the owner has complied with the requirements 22 of this Section. In the event the vehicle is being driven after the expiration of the 23 temporary sticker provided for herein, the vehicle shall be immediately impounded 24 pursuant to the provisions of this Section. 25 * * * 26 G. The only acceptable means of proof of a valid and current policy of 27 insurance shall be one of the following: 28 * * * 29 (5) The law enforcement officer verifies electronically that the motor Page 8 of 11 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 299 SLS 16RS-279 ORIGINAL 1 vehicle is covered by a valid and current policy of liability insurance. 2 * * * 3 I. * * * 4 (3) If the owner fails to provide the proof required in Paragraph (2) of this 5 Subsection, there shall be a fine of one hundred twenty-five dollars for a first 6 offense, a fine of two hundred fifty dollars for a second offense, and a fine of five 7 one hundred dollars for any subsequent offense. 8 Section 2. R.S. 32:8(C) and 863(D)(5) are hereby repealed. 9 Section 3. This Act shall become effective upon signature by the governor or, if not 10 signed by the governor, upon expiration of the time for bills to become law without signature 11 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 12 vetoed by the governor and subsequently approved by the legislature, this Act shall become 13 effective on the day following such approval. The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Sharon F. Lyles. DIGEST SB 299 Original 2016 Regular Session Milkovich Present law requires the Dept. of Public Safety and Corrections, office of motor vehicles (OMV), to collect certain fees related to suspension of an operator's license (R.S. 32:57.1) and automobile insurance requirement violations (R.S. 32:863 and 863.1). Further provides that such fees are due within 60 days of the date of the notice to pay these fees and that after 60 days these fees shall be considered final delinquent debt. Present law requires the office of motor vehicles to refer all final delinquent debt to the office of debt recovery (ODR) for collection. Proposed law amends present law definitions of "debt", "delinquent debt", and "final debt" to require the OMV to provide written notice for suspension or revocation of driving privileges or motor vehicle registration privileges as provided in R.S. 32:852(E), provides that debt must be 90 days or more past due, and that OMV must have proof of personal receipt of notice by the debtor by official delivery receipt or certificate from the U.S. Postal Service. Proposed law makes referral of final debt by OMV to the ODR discretionary, requires notice by OMV to include payment arrangements and inform the debtor that he has no right of judicial review if he fails to act on the notice. Proposed law removes requirement that funds collected must be deposited into the Debt Recovery Fund and utilized for the office of state police in the amount of $25 million. Present law authorizes OMV to impose a $50 fee, regardless of the disposition of a charge of failure to honor a written promise to appear. Page 9 of 11 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 299 SLS 16RS-279 ORIGINAL Proposed law removes authorization for OMV to impose the fee. Present law requires the prosecuting authority of a charge of failure to honor a written promise to appear to notify OMV of payment and authorizes OMV to charge an additional $50 fee to renew or reissue the arrested person's driver's license. Proposed law reduces the fee to $25. Present law provides that after 60 calendar days of notification issued by OMV, fees due shall be considered final delinquent debt. Proposed law increases the time period to 90 calendar days and gives OMV discretion to consider the debt as final. Present law authorizes the OMV to collect certain fees associated with automobile insurance requirements (R.S. 32:863 and 863.1). Proposed law reduces OMV reinstatement fees for no insurance or allowing insurance to lapse from $100 to $25 dollars for no insurance from one to 30 days, from $250 to $50 for no insurance from 31 to 90 days, and from $500 to $100 for no insurance in excess of 90 days. Proposed law reduces OMV reinstatement fees for submitting false information that a motor vehicle is covered by insurance from $250 to $25 for a first violation, from $500 to $50 for a second violation, and from $1,000 to $100 for a third or subsequent violation. Present law provides that the maximum reinstatement fee due from a person with multiple violations who pays within 60 days of notice shall not exceed $850 for no insurance or lapsed insurance violations and $1,075 for submission of false insurance information. Provides that total fees for persons 65 years or older shall not exceed $250. Proposed law reduces the maximum reinstatement fee from $850 to $500 and changes the time period from 60 to 90 days of date of notice before a fee is considered final debt. Proposed law removes the provision that removes the cap on fees for persons under 65 years of age and reduces the cap on total fees for persons 65 or older from $250 to $200. Present law requires OMV to remit fees paid to the treasurer for credit to the Bond Security and Redemption Fund. Proposed law requires the treasurer to credit fees to the state general fund. Present law authorizes OMV to send notice of sanctions to the last address furnished to the OMV by first class mail. Proposed law requires OMV to send notice of fines, fees, or other sanctions by certified or registered mail, return receipt requested. Present law provides the owner of a vehicle three calendar days, excluding weekend days and legal holidays, to provide proof of insurance. Provides that if proof of compliance is made after 60 days, an owner still owes a fee even if the owner provides proof of insurance. Provides that a no insurance sticker is valid for only three days. Proposed law increases the time period from three to 15 calendar days and deletes the provisions relative to proof of insurance after 60 days. Present law provides that OMV records on a insurance violation are prima facie proof of violation. Page 10 of 11 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 299 SLS 16RS-279 ORIGINAL Proposed law deletes present law and retains present law that owner has burden of proof of insurance at the time of violation. Present law makes an owner liable for storage and wrecker fees when a vehicle is impounded for no proof of insurance in the vehicle even if the vehicle was actually insured at the time. Proposed law makes OMV liable for storage and wrecker fees if the vehicle was actually insured. Present law provides several acceptable means of proof of insurance including an insurance card or electronic image, and that a law enforcement making a stop has a reasonable belief that the motor vehicle is covered by a valid and current policy of liability insurance. Proposed law retains present law and adds as an acceptable means of proof of insurance that the law enforcement officer electronically verifies that the motor vehicle is covered by a valid and current policy of liability insurance. Effective upon signature of the governor or lapse of time for gubernatorial action. (Amends R.S. 32:8(A)(1), (2), and (3), and (B), 57.1, 863(A)(3)(a) and (4), and (D)(1), 863.1(C)(1), (2), (5), (6), and (7), and (I)(3); adds R.S. 32:863.1(G)(5); repeals R.S. 32:8(C) and 863(D)(5)) Page 11 of 11 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.