H.B. 295

1

ELECTRONIC PROOF OF OWNER'S OR OPERATOR'S
2 SECURITY
3 2013 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Derek E. Brown
6 Senate Sponsor: Todd Weiler
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Financial Responsibility of Motor Vehicle Owners and Operators
11 Act by amending provisions relating to evidence of owner's or operator's security.
12 Highlighted Provisions:
13 This bill:
14 . provides that a person may provide evidence of owner's or operator's security to a
15 peace officer in a hard copy format or in an electronic format using a mobile
16 electronic device;
17 . provides that if a person provides evidence of owner's or operator's security in an
18 electronic format using a mobile electronic device, the peace officer viewing the
19 owner's or operator's security on the mobile electronic device may not view any
20 other content on the mobile electronic device; and
21 . makes technical corrections.
22 Money Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 None
26 Utah Code Sections Affected:
27 AMENDS:

28 41-1a-109, as last amended by Laws of Utah 2010, Chapter 260
29 41-12a-303.2, as last amended by Laws of Utah 2010, Chapter 260
30 41-12a-804, as last amended by Laws of Utah 2010, Chapter 260
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 41-1a-109 is amended to read:
34 41-1a-109. Grounds for division refusing registration or certificate of title.
35 (1) The division shall refuse registration or issuance of a certificate of title or any
36 transfer of registration upon any of the following grounds:
37 (a) the application contains any false or fraudulent statement;
38 (b) the applicant has failed to furnish required information or reasonable additional
39 information requested by the division;
40 (c) the applicant is not entitled to the issuance of a certificate of title or registration of
41 the vehicle under this chapter;
42 (d) the division has reasonable grounds to believe that the vehicle is a stolen vehicle or
43 that the granting of registration or the issuance of a certificate of title would constitute a fraud
44 against the rightful owner or other person having a valid lien upon the vehicle;
45 (e) the registration of the vehicle is suspended or revoked for any reason provided in
46 the motor vehicle laws of this state; or
47 (f) the required fees have not been paid.
48 (2) The division shall also refuse registration or any transfer of registration if the
49 vehicle is mechanically unfit or unsafe to be operated or moved upon the highways.
50 (3) The division shall refuse registration or any transfer of registration of a vehicle
51 upon notification by the Department of Transportation that the vehicle or owner is not in
52 compliance with Title 72, Chapter 9, Motor Carrier Safety Act.
53 (4) The division may not register a vehicle if the registration of the vehicle is revoked
54 under Subsection 41-1a-110 (2) until the applicant provides proof:
55 (a) of owner's or operator's security in a form allowed under Subsection
56 41-12a-303.2 (2)[(b)];
57 (b) of exemption from the owner's or operator's security requirements; or
58 (c) that the applicant was not an owner of the vehicle at the time of the alleged

59 violation or on the day following the time limit provided after the second notice under
60 Subsection 41-12a-804 (2).
61 Section 2. Section 41-12a-303.2 is amended to read:
62 41-12a-303.2. Evidence of owner's or operator's security to be carried when
63 operating motor vehicle -- Defense -- Penalties.
64 (1) As used in this section:
65 (a) "Division" means the Motor Vehicle Division of the State Tax Commission.
66 (b) "Registration materials" means the evidences of motor vehicle registration,
67 including all registration cards, license plates, temporary permits, and nonresident temporary
68 permits.
69 (2) (a) (i) A person operating a motor vehicle shall:
70 (A) have in the person's immediate possession evidence of owner's or operator's
71 security for the motor vehicle the person is operating; and
72 (B) display it upon demand of a peace officer.
73 (ii) A person is exempt from the requirements of Subsection (2)(a)(i) if the person is
74 operating:
75 (A) a government-owned or leased motor vehicle; or
76 (B) an employer-owned or leased motor vehicle and is driving it with the employer's
77 permission.
78 (b) Evidence of owner's or operator's security includes any one of the following:
79 (i) a copy of the operator's valid:
80 (A) insurance policy;
81 (B) insurance policy declaration page;
82 (C) binder notice;
83 (D) renewal notice; or
84 (E) card issued by an insurance company as evidence of insurance;
85 (ii) a certificate of insurance issued under Section 41-12a-402 ;
86 (iii) a certified copy of a surety bond issued under Section 41-12a-405 ;
87 (iv) a certificate of the state treasurer issued under Section 41-12a-406 ;
88 (v) a certificate of self-funded coverage issued under Section 41-12a-407 ; or
89 (vi) information that the vehicle or driver is insured from the Uninsured Motorist

90 Identification Database Program created under Title 41, Chapter 12a, Part 8.
91 (c) (i) A person may provide to a peace officer evidence of owner's or operator's
92 security described in this Subsection (2) in:
93 (A) a hard copy format; or
94 (B) an electronic format using a mobile electronic device.
95 (ii) If a person provides evidence of owner's or operator's security in an electronic
96 format using a mobile electronic device under this Subsection (2)(c), the peace officer viewing
97 the owner's or operator's security on the mobile electronic device may not view any other
98 content on the mobile electronic device.
99 [(c)] (d) (i) Evidence of owner's or operator's security from the Uninsured Motorist
100 Identification Database Program described under Subsection (2)(b)(vi) supercedes any
101 evidence of owner's or operator's security described under Subsection (2)(b)(i)(D) or (E).
102 (ii) A peace officer may not cite or arrest a person for a violation of Subsection (2)(a) if
103 the Uninsured Motorist Identification Database Program created under Title 41, Chapter 12a,
104 Part 8, information indicates that the vehicle or driver is insured.
105 (3) It is an affirmative defense to a charge under this section that the person had
106 owner's or operator's security in effect for the vehicle the person was operating at the time of
107 the person's citation or arrest.
108 (4) (a) Evidence of owner's or operator's security as defined under Subsection (2)(b) or
109 a written statement from an insurance producer or company verifying that the person had the
110 required motor vehicle insurance coverage on the date specified is considered proof of owner's
111 or operator's security for purposes of Subsection (3) and Section 41-12a-804 .
112 (b) The court considering a citation issued under this section shall allow the evidence
113 or a written statement under Subsection (4)(a) and a copy of the citation to be faxed or mailed
114 to the clerk of the court to satisfy Subsection (3).
115 (c) The notice under Section 41-12a-804 shall specify that the written statement under
116 Subsection (4)(a) and a copy of the notice shall be faxed or mailed to the designated agent to
117 satisfy the proof of owner's or operator's security required under Section 41-12a-804 .
118 (5) A violation of this section is a class B misdemeanor, and the fine shall be not less
119 than:
120 (a) $400 for a first offense; and

121 (b) $1,000 for a second and subsequent offense within three years of a previous
122 conviction or bail forfeiture.
123 (6) Upon receiving notification from a court of a conviction for a violation of this
124 section, the department:
125 (a) shall suspend the person's driver license; and
126 (b) may not renew the person's driver license or issue a driver license to the person
127 until the person gives the department proof of owner's or operator's security.
128 (i) This proof of owner's or operator's security shall be given by any of the ways
129 required under Section 41-12a-401 .
130 (ii) This proof of owner's or operator's security shall be maintained with the department
131 for a three-year period.
132 (iii) An insurer that provides a certificate of insurance as provided under Section
133 41-12a-402 or 41-12a-403 may not terminate the insurance policy unless notice of termination
134 is filed with the department no later than 10 days after termination as required under Section
135 41-12a-404 .
136 (iv) If a person who has canceled the certificate of insurance applies for a license
137 within three years from the date proof of owner's or operator's security was originally required,
138 the department shall refuse the application unless the person reestablishes proof of owner's or
139 operator's security and maintains the proof for the remainder of the three-year period.
140 Section 3. Section 41-12a-804 is amended to read:
141 41-12a-804. Notice -- Proof -- Revocation of registration -- False statements --
142 Penalties -- Exemptions -- Sales tax enforcement.
143 (1) If the comparison under Section 41-12a-803 shows that a motor vehicle is not
144 insured for three consecutive months, the Motor Vehicle Division shall direct that the
145 designated agent provide notice to the owner of the motor vehicle that the owner has 15 days to
146 provide:
147 (a) proof of owner's or operator's security in a form allowed under Subsection
148 41-12a-303.2 (2)[(b)]; or
149 (b) proof of exemption from the owner's or operator's security requirements.
150 (2) If an owner of a motor vehicle fails to provide satisfactory proof of owner's or
151 operator's security to the designated agent, the designated agent shall:

152 (a) provide a second notice to the owner of the motor vehicle that the owner now has
153 15 days to provide:
154 (i) proof of owner's or operator's security in a form allowed under Subsection
155 41-12a-303.2 (2)[(b)]; or
156 (ii) proof of exemption from the owner's or operator's security requirements;
157 (b) for each notice provided, indicate information relating to the owner's failure to
158 provide proof of owner's or operator's security in the database; and
159 (c) provide this information to state and local law enforcement agencies as requested in
160 accordance with the provisions under Section 41-12a-805 .
161 (3) The Motor Vehicle Division:
162 (a) shall revoke the registration upon receiving notification under Subsection
163 41-1a-110 (2);
164 (b) shall provide appropriate notices of the revocation, the legal consequences of
165 operating a vehicle with revoked registration and without owner's or operator's security, and
166 instructions on how to get the registration reinstated; and
167 (c) may direct the designated agent to provide the notices under this Subsection (3).
168 (4) Any action by the Motor Vehicle Division to revoke the registration of a motor
169 vehicle under this section may be in addition to an action by a law enforcement agency to
170 impose the penalties under Section 41-12a-302 or 41-12a-303.2 .
171 (5) (a) A person may not provide a false or fraudulent statement to the Motor Vehicle
172 Division or designated agent.
173 (b) In addition to any other penalties, a person who violates Subsection (5)(a) is guilty
174 of a class B misdemeanor.
175 (6) The department and the Motor Vehicle Division shall direct the designated agent to
176 exempt from this section a farm truck that:
177 (a) meets the definition of a farm truck under Section 41-1a-102 ; and
178 (b) is registered as a farm truck under Title 41, Chapter 1a, Motor Vehicle Act.
179 (7) This part does not affect other actions or penalties that may be taken or imposed for
180 violation of the owner's and operator's security requirements of this chapter.
181 (8) If a comparison under Section 41-12a-803 shows that a motor vehicle may not be in
182 compliance with motor vehicle registration or sales and use tax laws, the Motor Vehicle

183 Division may direct that the designated agent provide notice to the owner of a motor vehicle
184 that information exists which indicates the possible violation.




Legislative Review Note
as of 1-29-13 10:29 AM

Office of Legislative Research and General Counsel

[Bill Documents]