S.B. 72 Enrolled

             1     

UNINSURED MOTORIST PROVISIONS
             2      2014 GENERAL SESSION
             3      STATE OF UTAH
             4      Chief Sponsor: Lyle W. Hillyard
             5      House Sponsor: Jack R. Draxler
             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to uninsured motorists.
             10      Highlighted Provisions:
             11          This bill:
             12          .    provides that the Motor Vehicle Division or a peace officer shall seize and take
             13      possession of any vehicle that is being operated on a highway without owner's or
             14      operator's security in effect for the vehicle except in certain circumstances;
             15          .    provides that money in the Uninsured Motorist Identification Restricted Account
             16      shall be appropriated to the Department of Public Safety to reimburse a person for
             17      the costs of towing and storing the person's vehicle in certain circumstances;
             18          .    requires the Department of Public Safety to hold a hearing to determine whether a
             19      vehicle was wrongfully impounded;
             20          .    grants the Department of Public Safety rulemaking authority to make rules
             21      establishing procedures for a person to apply for a reimbursement; and
             22          .    makes technical corrections.
             23      Money Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          This bill takes effect on January 1, 2015.
             27      Utah Code Sections Affected:
             28      AMENDS:
             29           41-1a-1101 , as last amended by Laws of Utah 2011, Chapter 246

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             30           41-1a-1103 , as last amended by Laws of Utah 2010, Chapter 295
             31           41-12a-806 , as last amended by Laws of Utah 2008, Chapter 322
             32     
             33      Be it enacted by the Legislature of the state of Utah:
             34          Section 1. Section 41-1a-1101 is amended to read:
             35           41-1a-1101. Seizure -- Circumstances where permitted -- Impound lot standards.
             36          (1) [(a)] The division or any peace officer, without a warrant, may seize and take
             37      possession of any vehicle, vessel, or outboard motor:
             38          [(i)] (a) that the division or the peace officer has reason to believe has been stolen;
             39          [(ii)] (b) on which any identification number has been defaced, altered, or obliterated;
             40          [(iii)] (c) that has been abandoned in accordance with Section 41-6a-1408 ;
             41          [(iv)] (d) for which the applicant has written a check for registration or title fees that
             42      has not been honored by the applicant's bank and that is not paid within 30 days;
             43          [(v)] (e) that is placed on the water with improper registration;
             44          [(vi)] (f) that is being operated on a highway:
             45          [(A)] (i) with registration that has been expired for more than three months;
             46          [(B)] (ii) having never been properly registered by the current owner; or
             47          [(C)] (iii) with registration that is suspended or revoked; or
             48          [(D) subject to the restriction in Subsection (1)(b), without owner's or operator's
             49      security in effect for the vehicle as required under Section 41-12a-301 ; or]
             50          [(vii) (A)] (g) (i) that the division or the peace officer has reason to believe has been
             51      involved in an accident described in Section 41-6a-401 , 41-6a-401.3 , or 41-6a-401.5 ; and
             52          [(B)] (ii) whose operator did not remain at the scene of the accident until the operator
             53      fulfilled the requirements described in Section 41-6a-401 or 41-6a-401.7 .
             54          (2) (a) Subject to the restriction in Subsection (2)(b), the division or any peace officer,
             55      without a warrant, shall seize and take possession of any vehicle that is being operated on a
             56      highway without owner's or operator's security in effect for the vehicle as required under
             57      Section 41-12a-301 unless the division or any peace officer makes a reasonable determination

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             58      that:
             59          (i) the seizure of the vehicle would present a public safety concern to the operator or
             60      any of the occupants in the vehicle; or
             61          (ii) the impoundment of the vehicle would prevent the division or the peace officer
             62      from addressing other public safety considerations.
             63          (b) The division or any peace officer may not seize and take possession of a vehicle
             64      under Subsection [(1)(a)(vi)(D)] (2)(a):
             65          (i) if the operator of the vehicle is not carrying evidence of owner's or operator's
             66      security as defined in Section 41-12a-303.2 in the vehicle unless the division or peace officer
             67      verifies that owner's or operator's security is not in effect for the vehicle through the Uninsured
             68      Motorist Identification Database created in accordance with Section 41-12a-803 [.]; or
             69          (ii) if the operator of the vehicle is carrying evidence of owner's or operator's security
             70      as defined in Section 41-12a-303.2 in the vehicle and the Uninsured Motorist Identification
             71      Database created in accordance with Section 41-12a-803 indicates that the owner's or operator's
             72      security is not in effect for the vehicle, unless the division or a peace officer makes a
             73      reasonable attempt to independently verify that owner's or operator's security is not in effect for
             74      the vehicle.
             75          [(2)] (3) If necessary for the transportation of a seized vessel, the vessel's trailer may be
             76      seized to transport and store the vessel.
             77          [(3)] (4) Any peace officer seizing or taking possession of a vehicle, vessel, or
             78      outboard motor under this section shall comply with the provisions of Section 41-6a-1406 .
             79          [(4)] (5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
             80      Act, the commission shall make rules setting standards for public garages, impound lots, and
             81      impound yards that may be used by peace officers and the division.
             82          (b) The standards shall be equitable, reasonable, and unrestrictive as to the number of
             83      public garages, impound lots, or impound yards per geographical area.
             84          [(5)] (6) (a) Except as provided under Subsection [(5)] (6)(b), a person may not operate
             85      or allow to be operated a vehicle stored in a public garage, impound lot, or impound yard

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             86      regulated under this part without prior written permission of the owner of the vehicle.
             87          (b) Incidental and necessary operation of a vehicle to move the vehicle from one
             88      parking space to another within the facility and that is necessary for the normal management of
             89      the facility is not prohibited under Subsection [(5)] (6)(a).
             90          [(6)] (7) A person who violates the provisions of Subsection [(5)] (6) is guilty of a
             91      class C misdemeanor.
             92          [(7)] (8) The division or the peace officer who seizes a vehicle shall record the mileage
             93      shown on the vehicle's odometer at the time of seizure, if:
             94          (a) the vehicle is equipped with an odometer; and
             95          (b) the odometer reading is accessible to the division or the peace officer.
             96          Section 2. Section 41-1a-1103 is amended to read:
             97           41-1a-1103. Sale.
             98          (1) If the owner or lienholder of a seized vehicle, vessel, or outboard motor does not
             99      recover the vehicle, vessel, or outboard motor within 30 days from the date of seizure, or if the
             100      division is unable to determine the owner or lienholder through reasonable efforts, the division
             101      shall sell the vehicle, vessel, or outboard motor.
             102          (2) The sale shall:
             103          (a) be held in the form of a public auction at the place of storage; and
             104          (b) at the discretion of the division, be conducted by:
             105          (i) an authorized representative of the division; or
             106          (ii) a public garage, impound lot, or impound yard that:
             107          (A) is authorized by the division;
             108          (B) meets the standards under Subsection 41-1a-1101 [(4)](5); and
             109          (C) complies with the requirements of Section 72-9-603 .
             110          (3) At least five days prior to the date set for sale, the division shall publish a notice of
             111      sale setting forth the date, time, and place of sale and a description of the vehicle, vessel, or
             112      outboard motor to be sold:
             113          (a) on the division's website; and

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             114          (b) as required in Section 45-1-101 .
             115          (4) At the time of sale the division or other person authorized to conduct the sale shall
             116      tender to the highest bidder a certificate of sale conveying all rights, title, and interest in the
             117      vehicle, vessel, or outboard motor.
             118          (5) The proceeds from the sale of a vehicle, vessel, or outboard motor under this
             119      section shall be distributed as provided under Section 41-1a-1104 .
             120          (6) If the owner or lienholder of a vehicle, vessel, or outboard motor seized under
             121      Section 41-1a-1101 and subsequently released by the division fails to take possession of the
             122      vehicle, vessel, or outboard motor and satisfy the amount due to the place of storage within 30
             123      days from the date of release, the division shall renotify the owner or lienholder and sell the
             124      vehicle, vessel, or outboard motor, in accordance with this section, 30 days from the date of the
             125      notice.
             126          Section 3. Section 41-12a-806 is amended to read:
             127           41-12a-806. Restricted account -- Creation -- Funding -- Interest -- Purposes.
             128          (1) There is created within the Transportation Fund a restricted account known as the
             129      "Uninsured Motorist Identification Restricted Account."
             130          (2) The account consists of money generated from the following revenue sources:
             131          (a) money received by the state under Section 41-1a-1218 , the uninsured motorist
             132      identification fee;
             133          (b) money received by the state under Section 41-1a-1220 ; and
             134          (c) appropriations made to the account by the Legislature.
             135          (3) (a) The account shall earn interest.
             136          (b) All interest earned on account money shall be deposited into the account.
             137          (4) Money shall be appropriated from the account by the Legislature to:
             138          (a) the department to fund the contract with the designated agent;
             139          (b) the department to offset the costs to state and local law enforcement agencies of
             140      using the information for the purposes authorized under this part; [and]
             141          (c) the Tax Commission to offset the costs to the Motor Vehicle Division for revoking

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             142      and reinstating vehicle registrations under Subsection 41-1a-110 (2)(a)(ii)[.]; and
             143          (d) the department to reimburse a person for the costs of towing and storing the
             144      person's vehicle if:
             145          (i) the person's vehicle was impounded in accordance with Subsection 41-1a-1101 (2);
             146          (ii) the impounded vehicle had owner's or operator's security in effect for the vehicle at
             147      the time of the impoundment;
             148          (iii) the database indicated that owner's or operator's security was not in effect for the
             149      impounded vehicle; and
             150          (iv) the department determines that the person's vehicle was wrongfully impounded.
             151          (5) (a) By following the procedures in Title 63G, Chapter 4, Administrative Procedures
             152      Act, the department shall hold a hearing to determine whether a person's vehicle was
             153      wrongfully impounded under Subsection 41-1a-1101 (2).
             154          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             155      division shall make rules establishing procedures for a person to apply for a reimbursement
             156      under Subsection (4)(d).
             157          (c) A person is not eligible for a reimbursement under Subsection (4)(d) unless the
             158      person applies for the reimbursement within six months from the date that the motor vehicle
             159      was impounded.
             160          Section 4. Effective date.
             161          This bill takes effect on January 1, 2015.

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