HLS 23RS-652 ENGROSSED 2023 Regular Session HOUSE BILL NO. 568 BY REPRESENTATIVE PHELPS Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. MTR VEHICLE/VIOLATIONS: Provides relative to sanctions for a lapse in required vehicle liability security 1 AN ACT 2To amend and reenact R.S. 32:863(A)(3)(a), relative to sanctions for violations of required 3 vehicle liability security; to modify the lapse period applicable to sanctions for lapse 4 of required liability security; to provide for rule promulgation; to provide an 5 effective date; and to provide for related matters. 6Be it enacted by the Legislature of Louisiana: 7 Section 1. R.S. 32:863(A)(3)(a) is hereby amended and reenacted to read as follows: 8 ยง863. Sanctions for false declaration; reinstatement fees; revocation of registration; 9 review 10 A. 11 * * * 12 (3)(a) Sanctions for a violation of Paragraph (1) of this Subsection shall be 13 imposed until proof of required liability security is provided to the secretary and all 14 reinstatement fees are paid. Sanctions for a violation of Paragraph (2) of this 15 Subsection shall be imposed for a period of not less than twelve months nor more 16 than eighteen months. However, in no event shall these sanctions be removed until 17 such time as proof of the required security is provided to the secretary along with all 18 appropriate fees required by law, including a reinstatement fee of one hundred 19 dollars per violation of Paragraph (1) of this Subsection if the vehicle was not 20 covered by the required security for a period of one to thirty days, two hundred fifty Page 1 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 23RS-652 ENGROSSED HB NO. 568 1 dollars if the vehicle was not covered by required security for a period of thirty-one 2 to ninety days, and five hundred dollars if the vehicle was not covered by required 3 security for a period in excess of ninety days. No reinstatement fee shall be imposed 4 by the secretary if the vehicle was not covered by required security for a period of 5 ten days or less and the insured surrenders the vehicle's license plate to the secretary 6 within ten days or if the violation is the insured's first violation pursuant to Paragraph 7 (1) of this Subsection and the lapse of insurance coverage was for five days or less, 8 provided immediate notice of the cancellation is given within one to five days before 9 issuing the violation. In addition, notice shall be transmitted to the insured through 10 LA wallet within one to five days before issuing the violation. The reinstatement 11 fees for violations of Paragraph (2) of this Subsection shall be as follows: two 12 hundred fifty dollars for a first violation, five hundred dollars for a second violation, 13 and one thousand dollars for a third or subsequent violation. The reinstatement fee 14 shall not be owed for an alleged violation of Paragraph (2) of this Subsection when 15 proof of the required security is provided to the secretary within sixty days of the 16 date of the notice. If at the time of reinstatement, a person has multiple violations 17 and is within sixty days of the notice, the total amount of fees to be paid shall not 18 exceed eight hundred fifty dollars, for violations of Paragraph (1) of this Subsection, 19 and one thousand seventy-five dollars for violations of Paragraph (2) of this 20 Subsection. At no time shall the total amount of fees, including administrative fees, 21 exceed two hundred fifty dollars for persons sixty-five years or older. After sixty 22 days of the date of the notice, all fees shall be considered final delinquent debt and 23 therefore owed, and the eight hundred fifty dollar limit for persons under sixty-five 24 years shall no longer apply. 25 * * * 26 Section 2. The Department of Public Safety and Corrections shall adopt and 27promulgate, in accordance with the Administrative Procedure Act, any rules and regulations 28that may be necessary to bring existing administrative rules into conformity with the 29provisions of this Act. Page 2 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 23RS-652 ENGROSSED HB NO. 568 1 Section 3. This Act shall become effective upon signature by the governor or, if not 2signed by the governor, upon expiration of the time for bills to become law without signature 3by the governor, as provided in Article III, Section 18 of the Constitution of Louisiana. If 4vetoed by the governor and subsequently approved by the legislature, this Act shall become 5effective on the day following such approval. 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)] HB 568 Engrossed 2023 Regular Session Phelps Abstract: Specifies that the reinstatement fee assessed by the office of motor vehicles will not apply if it is the insured's first violation and the lapse of insurance coverage was for five days or less. Present law requires the secretary, upon a determination that a vehicle is not covered by security as required by present law or the owner or lessee has allowed the required security to lapse, to revoke the registration of the vehicle, impound the vehicle, and cancel the vehicle's license plate. Present law requires sanctions for a violation of present law be imposed for a period ranging from 12 to 18 months until proof of required vehicle liability security is provided to the secretary and all reinstatement fees are paid. Present law requires a reinstatement fee of $100 per violation if the vehicle was not covered by the required security for a period of 1-30 days, $250 per violation if the vehicle was not covered by the required security for a period of 31-90 days, and $500 per violation if the vehicle was not covered by the required security for a period in excess of 90 days. Proposed law provides that the reinstatement fee does not apply if the violation is the insured's first violation and the lapse of insurance coverage was for five days or less. Requires notice be transmitted to the insured through LA wallet within one to five days before issuing the violation. Proposed law requires the Dept. of Public Safety and Corrections adopt and promulgate rules and regulations, in accordance with the Administrative Procedure Act, to bring any existing administrative rules into conformity with the provisions of proposed law. Effective upon signature of governor or lapse of time for gubernatorial action. (Amends R.S. 32:863(A)(3)(a)) Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Transportation, Highways and Public Works to the original bill: 1. Add a requirement that notice of cancellation be provided through LA wallet within one to five days before issuing the violation. Page 3 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions.