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H.B. 122

             1     

DRIVER LICENSE - APPLICATION OF

             2     
MINOR AMENDMENTS

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: David Litvack

             6     
Senate Sponsor: D. Chris Buttars

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Utah Human Services Code and the Driver Licensing Act by
             11      amending provisions relating to driver license applications by certain minors.
             12      Highlighted Provisions:
             13          This bill:
             14          .    clarifies that a guardianship relationship between a foster parent and a minor who is
             15      in the legal custody of the Division of Child and Family Services is included in the
             16      relationships that are covered under certain insurance policies;
             17          .    provides that if a minor is in the legal custody of the Division of Child and Family
             18      Services, a parent or responsible adult who is willing to assume certain obligations
             19      and liability requirements may sign the minor's application for a learner permit or
             20      provisional driver license;
             21          .    limits the liability of a foster parent who signs an application for a foster child's
             22      driver license or furnishes a motor vehicle to a foster child;
             23          .    provides that the Office of Licensing within the Department of Human Services
             24      shall require a child placing agency that provides foster home services to notify a
             25      foster parent of the liability requirements when signing as a responsible adult for a
             26      foster child to receive a learner permit or provisional driver license;
             27          .    grants the Office of Licensing rulemaking authority to establish procedures for a


             28      child placing agency to provide the notifications;
             29          .    authorizes the Division of Child and Family Services to reimburse a foster parent
             30      for providing motor vehicle insurance coverage for a foster child who is in the legal
             31      custody of the division;
             32          .    grants the Division of Child and Family Services rulemaking authority to establish a
             33      procedure, eligibility requirements, and a method for determining the amount for
             34      motor vehicle insurance coverage reimbursements; and
             35          .    makes technical changes.
             36      Monies Appropriated in this Bill:
             37          None
             38      Other Special Clauses:
             39          None
             40      Utah Code Sections Affected:
             41      AMENDS:
             42          31A-22-303, as last amended by Laws of Utah 2005, Chapter 295
             43          53-3-211, as last amended by Laws of Utah 2006, Chapter 201
             44          53-3-212, as renumbered and amended by Laws of Utah 1993, Chapter 234
             45      ENACTS:
             46          62A-2-108.5, Utah Code Annotated 1953
             47          62A-4a-121, Utah Code Annotated 1953
             48     
             49      Be it enacted by the Legislature of the state of Utah:
             50          Section 1. Section 31A-22-303 is amended to read:
             51           31A-22-303. Motor vehicle liability coverage.
             52          (1) (a) In addition to complying with the requirements of Chapter 21, Insurance
             53      Contracts in General, and Chapter 22, Part 2, Liability Insurance in General, a policy of motor
             54      vehicle liability coverage under Subsection 31A-22-302 (1)(a) shall:
             55          (i) name the motor vehicle owner or operator in whose name the policy was purchased,
             56      state that named insured's address, the coverage afforded, the premium charged, the policy
             57      period, and the limits of liability;
             58          (ii) (A) if it is an owner's policy, designate by appropriate reference all the motor


             59      vehicles on which coverage is granted, insure the person named in the policy, insure any other
             60      person using any named motor vehicle with the express or implied permission of the named
             61      insured, and, except as provided in Subsection (7), insure any person included in Subsection
             62      (1)(a)(iii) against loss from the liability imposed by law for damages arising out of the
             63      ownership, maintenance, or use of these motor vehicles within the United States and Canada,
             64      subject to limits exclusive of interest and costs, for each motor vehicle, in amounts not less
             65      than the minimum limits specified under Section 31A-22-304 ; or
             66          (B) if it is an operator's policy, insure the person named as insured against loss from
             67      the liability imposed upon him by law for damages arising out of the insured's use of any motor
             68      vehicle not owned by him, within the same territorial limits and with the same limits of liability
             69      as in an owner's policy under Subsection (1)(a)(ii)(A);
             70          (iii) except as provided in Subsection (7), insure persons related to the named insured
             71      by blood, marriage, adoption, or guardianship who are residents of the named insured's
             72      household, including those who usually make their home in the same household but
             73      temporarily live elsewhere, to the same extent as the named insured;
             74          (iv) where a claim is brought by the named insured or a person described in Subsection
             75      (1)(a)(iii), the available coverage of the policy may not be reduced or stepped-down because:
             76          (A) a permissive user driving a covered motor vehicle is at fault in causing an accident;
             77      or
             78          (B) the named insured or any of the persons described in this Subsection (1)(a)(iii)
             79      driving a covered motor vehicle is at fault in causing an accident; and
             80          (v) cover damages or injury resulting from a covered driver of a motor vehicle who is
             81      stricken by an unforeseeable paralysis, seizure, or other unconscious condition and who is not
             82      reasonably aware that paralysis, seizure, or other unconscious condition is about to occur to the
             83      extent that a person of ordinary prudence would not attempt to continue driving.
             84          (b) The driver's liability under Subsection (1)(a)(v) is limited to the insurance
             85      coverage.
             86          (c) (i) "Guardianship" under Subsection (1)(a)(iii) includes the relationship between a
             87      foster parent and a minor who is in the legal custody of the Division of Child and Family
             88      Services if:
             89          (A) the minor resides in a foster home, as defined in Section 62A-2-101 , with a foster


             90      parent who is the named insured; and
             91          (B) the foster parent has signed to be jointly and severally liable for compensatory
             92      damages caused by the minor's operation of a motor vehicle in accordance with Section
             93      53-3-211 .
             94          (ii) "Guardianship" as defined under this Subsection (1)(c) ceases to exist when a
             95      minor described in Subsection (1)(c)(i)(A) is no longer a resident of the named insured's
             96      household.
             97          (2) (a) A policy containing motor vehicle liability coverage under Subsection
             98      31A-22-302 (1)(a) may:
             99          (i) provide for the prorating of the insurance under that policy with other valid and
             100      collectible insurance;
             101          (ii) grant any lawful coverage in addition to the required motor vehicle liability
             102      coverage;
             103          (iii) if the policy is issued to a person other than a motor vehicle business, limit the
             104      coverage afforded to a motor vehicle business or its officers, agents, or employees to the
             105      minimum limits under Section 31A-22-304 , and to those instances when there is no other valid
             106      and collectible insurance with at least those limits, whether the other insurance is primary,
             107      excess, or contingent; and
             108          (iv) if issued to a motor vehicle business, restrict coverage afforded to anyone other
             109      than the motor vehicle business or its officers, agents, or employees to the minimum limits
             110      under Section 31A-22-304 , and to those instances when there is no other valid and collectible
             111      insurance with at least those limits, whether the other insurance is primary, excess, or
             112      contingent.
             113          (b) (i) The liability insurance coverage of a permissive user of a motor vehicle owned
             114      by a motor vehicle business shall be primary coverage.
             115          (ii) The liability insurance coverage of a motor vehicle business shall be secondary to
             116      the liability insurance coverage of a permissive user as specified under Subsection (2)(b)(i).
             117          (3) Motor vehicle liability coverage need not insure any liability:
             118          (a) under any workers' compensation law under Title 34A, Utah Labor Code;
             119          (b) resulting from bodily injury to or death of an employee of the named insured, other
             120      than a domestic employee, while engaged in the employment of the insured, or while engaged


             121      in the operation, maintenance, or repair of a designated vehicle; or
             122          (c) resulting from damage to property owned by, rented to, bailed to, or transported by
             123      the insured.
             124          (4) An insurance carrier providing motor vehicle liability coverage has the right to
             125      settle any claim covered by the policy, and if the settlement is made in good faith, the amount
             126      of the settlement is deductible from the limits of liability specified under Section 31A-22-304 .
             127          (5) A policy containing motor vehicle liability coverage imposes on the insurer the
             128      duty to defend, in good faith, any person insured under the policy against any claim or suit
             129      seeking damages which would be payable under the policy.
             130          (6) (a) If a policy containing motor vehicle liability coverage provides an insurer with
             131      the defense of lack of cooperation on the part of the insured, that defense is not effective
             132      against a third person making a claim against the insurer, unless there was collusion between
             133      the third person and the insured.
             134          (b) If the defense of lack of cooperation is not effective against the claimant, after
             135      payment, the insurer is subrogated to the injured person's claim against the insured to the extent
             136      of the payment and is entitled to reimbursement by the insured after the injured third person has
             137      been made whole with respect to the claim against the insured.
             138          (7) A policy of motor vehicle liability coverage under Subsection 31A-22-302 (1) may
             139      specifically exclude from coverage a person who is a resident of the named insured's
             140      household, including a person who usually makes his home in the same household but
             141      temporarily lives elsewhere, if:
             142          (a) at the time of the proposed exclusion, each person excluded from coverage satisfies
             143      the owner's or operator's security requirement of Section 41-12a-301 , independently of the
             144      named insured's proof of owner's or operator's security;
             145          (b) the named insured and the person excluded from coverage each provide written
             146      consent to the exclusion; and
             147          (c) the insurer includes the name of each person excluded from coverage in the
             148      evidence of insurance provided to an additional insured or loss payee.
             149          (8) A policy of motor vehicle liability coverage may limit coverage to the policy
             150      minimum limits under Section 31A-22-304 if the insured motor vehicle is operated by a person
             151      who has consumed any alcohol or any illegal drug or illegal substance if the policy or a


             152      specifically reduced premium was extended to the insured upon express written declaration
             153      executed by the insured that the insured motor vehicle would not be so operated.
             154          (9) (a) When a claim is brought exclusively by a named insured or a person described
             155      in Subsection (1)(a)(iii) and asserted exclusively against a named insured or an individual
             156      described in Subsection (1)(a)(iii), the claimant may elect to resolve the claim:
             157          (i) by submitting the claim to binding arbitration; or
             158          (ii) through litigation.
             159          (b) Once the claimant has elected to commence litigation under Subsection (9)(a)(ii),
             160      the claimant may not elect to resolve the claim through binding arbitration under this section
             161      without the written consent of both parties and the defendant's liability insurer.
             162          (c) (i) Unless otherwise agreed on in writing by the parties, a claim that is submitted to
             163      binding arbitration under Subsection (9)(a)(i) shall be resolved by a panel of three arbitrators.
             164          (ii) Unless otherwise agreed on in writing by the parties, each party shall select an
             165      arbitrator. The arbitrators selected by the parties shall select a third arbitrator.
             166          (d) Unless otherwise agreed on in writing by the parties, each party will pay the fees
             167      and costs of the arbitrator that party selects. Both parties shall share equally the fees and costs
             168      of the third arbitrator.
             169          (e) Except as otherwise provided in this section, an arbitration procedure conducted
             170      under this section shall be governed by Title 78, Chapter 31a, Utah Uniform Arbitration Act,
             171      unless otherwise agreed on in writing by the parties.
             172          (f) (i) Discovery shall be conducted in accordance with Rules 26b through 36, Utah
             173      Rules of Civil Procedure.
             174          (ii) All issues of discovery shall be resolved by the arbitration panel.
             175          (g) A written decision of two of the three arbitrators shall constitute a final decision of
             176      the arbitration panel.
             177          (h) Prior to the rendering of the arbitration award:
             178          (i) the existence of a liability insurance policy may be disclosed to the arbitration
             179      panel; and
             180          (ii) the amount of all applicable liability insurance policy limits may not be disclosed to
             181      the arbitration panel.
             182          (i) The amount of the arbitration award may not exceed the liability limits of all the


             183      defendant's applicable liability insurance policies, including applicable liability umbrella
             184      policies. If the initial arbitration award exceeds the liability limits of all applicable liability
             185      insurance policies, the arbitration award shall be reduced to an amount equal to the liability
             186      limits of all applicable liability insurance policies.
             187          (j) The arbitration award is the final resolution of all claims between the parties unless
             188      the award was procured by corruption, fraud, or other undue means.
             189          (k) If the arbitration panel finds that the action was not brought, pursued, or defended
             190      in good faith, the arbitration panel may award reasonable fees and costs against the party that
             191      failed to bring, pursue, or defend the claim in good faith.
             192          (l) Nothing in this section is intended to limit any claim under any other portion of an
             193      applicable insurance policy.
             194          (10) An at-fault driver or an insurer issuing a policy of insurance under this part that is
             195      covering an at-fault driver may not reduce compensation to an injured party based on the
             196      injured party not being covered by a policy of insurance that provides personal injury
             197      protection coverage under Sections 31A-22-306 through 31A-22-309 .
             198          Section 2. Section 53-3-211 is amended to read:
             199           53-3-211. Application of minors -- Liability of person signing application --
             200      Cancellation of cosigning adult's liability -- Behind-the-wheel driving certification.
             201          (1) As used in this section, "minor" means any person younger than 18 years of age
             202      who is not married or has not been emancipated by adjudication.
             203          (2) (a) The application of a minor for a [temporary learner permit, practice permit,]
             204      learner permit[,] or provisional license shall be signed by the parent or guardian of the
             205      applicant.
             206          (b) If the minor applicant does not have a parent or guardian or is in the legal custody
             207      of the Division of Child and Family Services, then a parent or responsible adult who is willing
             208      to assume the obligation imposed under this chapter may sign the application.
             209          (3) (a) Except as provided in Subsection (4), the liability of a minor for civil
             210      compensatory damages caused when operating a motor vehicle upon a highway is imputed to
             211      the person who has signed the application of the minor under Subsection (2).
             212          (b) The person who has signed the application under Subsection (2) is jointly and
             213      severally liable with the minor as provided in Subsections (3)(a) and (c).


             214          (c) The liability imposed under Subsections (3)(a) and (b) is limited to the policy
             215      minimum limits established in Section 31A-22-304 .
             216          (d) The liability provisions in this Subsection (3) are in addition to the liability
             217      provisions in Section 53-3-212 .
             218          (4) (a) If owner's or operator's security covering the minor's operation of the motor
             219      vehicle is in effect in amounts as required under Section 31A-22-304 , the person who signed
             220      the minor's application under Subsection (2) is not subject to the liability imposed under
             221      Subsection (3).
             222          (b) Notwithstanding the requirement under Subsection (3), if a foster parent signs an
             223      application under Subsection (2) for a minor who is in the legal custody of the Division of
             224      Child and Family Services and who resides with the foster parent, the foster parent's liability
             225      may not exceed the greater of:
             226          (i) minimum liability insurance policy limits established under Section 31A-22-304 ; or
             227          (ii) the policy limits of the foster parent's liability insurance policy issued in accordance
             228      with Section 31A-22-302 that were in effect at the time damages were caused by the minor's
             229      operation of a motor vehicle.
             230          (5) (a) A person who has signed the application of a minor under Subsection (2) may
             231      file with the division a verified written request that the permit or license of the minor be
             232      canceled.
             233          (b) The division shall then cancel the permit or license of the minor, and the person
             234      who signed the application of the minor under Subsection (2) is relieved from the liability
             235      imposed under Subsection (3) or the minor operating a motor vehicle subsequent to the
             236      cancellation.
             237          (6) (a) The division upon receipt of satisfactory evidence of the death of the person
             238      who signed the application of a minor under Subsection (2) shall cancel the permit or license
             239      and may not issue a new permit or license until a new application, signed and verified, is made
             240      under this chapter.
             241          (b) This Subsection (6) does not apply to an application of a person who is no longer a
             242      minor.
             243          (7) (a) In addition to the liability assumed under this section, the person who signs the
             244      application of a minor for a provisional license must certify that the minor applicant, under the


             245      authority of a permit issued under this chapter, has completed at least 40 hours of driving a
             246      motor vehicle, of which at least ten hours shall be during night hours after sunset.
             247          (b) The hours of driving a motor vehicle required under Subsection (7)(a) may include:
             248          (i) hours completed in a driver education course as required under Subsection
             249      53-3-505.5 (1); and
             250          (ii) up to five hours completed by driving simulation practice on a fully interactive
             251      driving simulation device at the substitution rate provided under Subsection 53-3-505.5 (2)(b).
             252          Section 3. Section 53-3-212 is amended to read:
             253           53-3-212. Owner giving permission and minor liable for damages caused by
             254      minor driving a motor vehicle.
             255          (1) The owner of a motor vehicle causing or knowingly permitting a person younger
             256      than 18 years of age to drive the motor vehicle on a highway, or a person who gives or
             257      furnishes a motor vehicle to the minor, are each jointly and severally liable with the minor for
             258      any damages caused by the negligence of the minor in driving the motor vehicle.
             259          (2) This liability provision is in addition to the liability provisions in Section 53-3-211 .
             260          (3) Notwithstanding the requirement under Subsection (1), if a foster parent signs an
             261      application under Subsection 53-3-211 (2) for a minor who is in the legal custody of the
             262      Division of Child and Family Services and who resides with the foster parent, the foster
             263      parent's liability may not exceed the greater of:
             264          (a) minimum liability insurance policy limits established under Section 31A-22-304 ; or
             265          (b) the policy limits of the foster parent's liability insurance policy issued in accordance
             266      with Section 31A-22-302 that were in effect at the time damages were caused by the minor's
             267      operation of the motor vehicle.
             268          Section 4. Section 62A-2-108.5 is enacted to read:
             269          62A-2-108.5. Notification requirement for child placing agencies that provide
             270      foster home services -- Rulemaking authority.
             271          (1) The office shall require a child placing agency that provides foster home services to
             272      notify a foster parent that if the foster parent signs as the responsible adult for a foster child to
             273      receive a driver license under Section 53-3-211 :
             274          (a) the foster parent is jointly and severally liable with the minor for civil compensatory
             275      damages caused by the minor when operating a motor vehicle upon a highway as provided


             276      under Subsections 53-3-211 (2) and (4); and
             277          (b) the foster parent may file with the Driver License Division a verified written
             278      request that the learner permit or driver license be canceled in accordance with Section
             279      53-3-211 if the foster child no longer resides with the foster parent.
             280          (2) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             281      office may make rules establishing the procedures for a child placing agency to provide the
             282      notification required under this section.
             283          Section 5. Section 62A-4a-121 is enacted to read:
             284          62A-4a-121. Reimbursement of motor vehicle insurance coverage for foster child.
             285          (1) Within the amounts appropriated to the division for the purposes described in this
             286      section, the division may reimburse a foster parent for providing owner's or operator's security
             287      covering a foster child's operation of a motor vehicle in amounts required under Section
             288      31A-22-304 if the foster child is in the legal custody of the division.
             289          (2) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             290      division shall make rules establishing:
             291          (a) a procedure for providing the reimbursement to a foster parent described in
             292      Subsection (1);
             293          (b) eligibility requirements for a foster parent to qualify for a reimbursement under this
             294      section; and
             295          (c) a method for determining the amount of reimbursement that a foster parent is
             296      eligible to receive under this section.




Legislative Review Note
    as of 1-10-08 10:35 AM


Office of Legislative Research and General Counsel


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