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H.B. 261 Enrolled

             1     

FINANCIAL RESPONSIBILITY OF MOTOR

             2     
VEHICLE OWNERS AND OPERATORS ACT

             3     
AMENDMENTS

             4     
2010 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Chief Sponsor: Richard A. Greenwood

             7     
Senate Sponsor: Jon J. Greiner

             8     
             9      LONG TITLE
             10      General Description:
             11          This bill modifies the Financial Responsibility of Motor Vehicle Owners and Operators
             12      Act by amending provisions relating to evidence of insurance requirements.
             13      Highlighted Provisions:
             14          This bill:
             15          .    repeals the exception that prohibits a person from using a renewal notice or a card
             16      issued by an insurance company as evidence that the person had owner's or
             17      operator's security in effect for the vehicle the person was operating at the time of
             18      the person's citation or arrest for a violation of operating a motor vehicle without
             19      having evidence of owner's or operator's security for the vehicle in the person's
             20      immediate possession;
             21          .    provides that a peace officer may not cite or arrest a person for violating the
             22      requirement to have evidence of owner's or operator's security for the vehicle in the
             23      person's immediate possession if the Uninsured Motorist Identification Database
             24      Program information indicates that the vehicle or driver is insured; and
             25          .    increases the number of months that a motor vehicle must show as not insured in
             26      the Uninsured Motorist Identification Database before the designated agent
             27      provides certain notices to the owner of the motor vehicle.
             28      Monies Appropriated in this Bill:
             29          None


             30      Other Special Clauses:
             31          None
             32      Utah Code Sections Affected:
             33      AMENDS:
             34          41-1a-109, as last amended by Laws of Utah 2000, Chapter 345
             35          41-12a-303.2, as last amended by Laws of Utah 2003, Chapter 298
             36          41-12a-804, as last amended by Laws of Utah 2006, Chapter 130
             37     
             38      Be it enacted by the Legislature of the state of Utah:
             39          Section 1. Section 41-1a-109 is amended to read:
             40           41-1a-109. Grounds for division refusing registration or certificate of title.
             41          (1) The division shall refuse registration or issuance of a certificate of title or any
             42      transfer of registration upon any of the following grounds:
             43          (a) the application contains any false or fraudulent statement;
             44          (b) the applicant has failed to furnish required information or reasonable additional
             45      information requested by the division;
             46          (c) the applicant is not entitled to the issuance of a certificate of title or registration of
             47      the vehicle under this chapter;
             48          (d) the division has reasonable grounds to believe that the vehicle is a stolen vehicle or
             49      that the granting of registration or the issuance of a certificate of title would constitute a fraud
             50      against the rightful owner or other person having a valid lien upon the vehicle;
             51          (e) the registration of the vehicle is suspended or revoked for any reason provided in
             52      the motor vehicle laws of this state; or
             53          (f) the required fees have not been paid.
             54          (2) The division shall also refuse registration or any transfer of registration if the
             55      vehicle is mechanically unfit or unsafe to be operated or moved upon the highways.
             56          (3) The division shall refuse registration or any transfer of registration of a vehicle
             57      upon notification by the Department of Transportation that the vehicle or owner is not in


             58      compliance with Title 72, Chapter 9, Motor Carrier Safety Act.
             59          (4) The division may not register a vehicle if the registration of the vehicle is revoked
             60      under Subsection 41-1a-110 (2) until the applicant provides proof:
             61          (a) of owner's or operator's security in a form allowed under Subsection
             62      [ 41-12a-303.2 (4)] 41-12a-303.2 (2)(b);
             63          (b) of exemption from the owner's or operator's security requirements; or
             64          (c) that the applicant was not an owner of the vehicle at the time of the alleged
             65      violation or on the day following the time limit provided after the second notice under
             66      Subsection 41-12a-804 (2).
             67          Section 2. Section 41-12a-303.2 is amended to read:
             68           41-12a-303.2. Evidence of owner's or operator's security to be carried when
             69      operating motor vehicle -- Defense -- Penalties.
             70          (1) As used in this section:
             71          (a) "Division" means the Motor Vehicle Division of the State Tax Commission.
             72          (b) "Registration materials" means the evidences of motor vehicle registration,
             73      including all registration cards, license plates, temporary permits, and nonresident temporary
             74      permits.
             75          (2) (a) (i) A person operating a motor vehicle shall:
             76          (A) have in the person's immediate possession evidence of owner's or operator's
             77      security for the motor vehicle the person is operating; and
             78          (B) display it upon demand of a peace officer.
             79          (ii) A person is exempt from the requirements of Subsection (2)(a)(i) if the person is
             80      operating:
             81          (A) a government-owned or leased motor vehicle; or
             82          (B) an employer-owned or leased motor vehicle and is driving it with the employer's
             83      permission.
             84          (b) Evidence of owner's or operator's security includes any one of the following:
             85          (i) a copy of the operator's valid:


             86          (A) insurance policy;
             87          (B) insurance policy declaration page;
             88          (C) binder notice;
             89          (D) renewal notice; or
             90          (E) card issued by an insurance company as evidence of insurance;
             91          (ii) a certificate of insurance issued under Section 41-12a-402 ;
             92          (iii) a certified copy of a surety bond issued under Section 41-12a-405 ;
             93          (iv) a certificate of the state treasurer issued under Section 41-12a-406 ;
             94          (v) a certificate of self-funded coverage issued under Section 41-12a-407 ; or
             95          (vi) information that the vehicle or driver is insured from the Uninsured Motorist
             96      Identification Database Program created under Title 41, Chapter 12a, Part 8.
             97          (c) (i) Evidence of owner's or operator's security from the Uninsured Motorist
             98      Identification Database Program described under Subsection (2)(b)(vi) supercedes any
             99      evidence of owner's or operator's security described under Subsection (2)(b)(i)(D) or (E).
             100          (ii) A peace officer may not cite or arrest a person for a violation of Subsection (2)(a)
             101      if the Uninsured Motorist Identification Database Program created under Title 41, Chapter
             102      12a, Part 8, information indicates that the vehicle or driver is insured.
             103          (3) It is an affirmative defense to a charge under this section that the person had
             104      owner's or operator's security in effect for the vehicle the person was operating at the time of
             105      the person's citation or arrest.
             106          (4) (a) Evidence of owner's or operator's security as defined under Subsection (2)(b)
             107      [except Subsections (2)(b)(i)(D) and (E)] or a written statement from an insurance producer or
             108      company verifying that the person had the required motor vehicle insurance coverage on the
             109      date specified is considered proof of owner's or operator's security for purposes of Subsection
             110      (3) and Section 41-12a-804 .
             111          (b) The court considering a citation issued under this section shall allow the evidence
             112      or a written statement under Subsection (4)(a) and a copy of the citation to be faxed or mailed
             113      to the clerk of the court to satisfy Subsection (3).


             114          (c) The notice under Section 41-12a-804 shall specify that the written statement under
             115      Subsection (4)(a) and a copy of the notice shall be faxed or mailed to the designated agent to
             116      satisfy the proof of owner's or operator's security required under Section 41-12a-804 .
             117          (5) A violation of this section is a class B misdemeanor, and the fine shall be not less
             118      than:
             119          (a) $400 for a first offense; and
             120          (b) $1,000 for a second and subsequent offense within three years of a previous
             121      conviction or bail forfeiture.
             122          (6) Upon receiving notification from a court of a conviction for a violation of this
             123      section, the department:
             124          (a) shall suspend the person's driver license; and
             125          (b) may not renew the person's driver license or issue a driver license to the person
             126      until the person gives the department proof of owner's or operator's security.
             127          (i) This proof of owner's or operator's security shall be given by any of the ways
             128      required under Section 41-12a-401 .
             129          (ii) This proof of owner's or operator's security shall be maintained with the
             130      department for a three-year period.
             131          (iii) An insurer that provides a certificate of insurance as provided under Section
             132      41-12a-402 or 41-12a-403 may not terminate the insurance policy unless notice of termination
             133      is filed with the department no later than 10 days after termination as required under Section
             134      41-12a-404 .
             135          (iv) If a person who has canceled the certificate of insurance applies for a license
             136      within three years from the date proof of owner's or operator's security was originally required,
             137      the department shall refuse the application unless the person reestablishes proof of owner's or
             138      operator's security and maintains the proof for the remainder of the three-year period.
             139          Section 3. Section 41-12a-804 is amended to read:
             140           41-12a-804. Notice -- Proof -- Revocation of registration -- False statements --
             141      Penalties -- Exemptions -- Sales tax enforcement.


             142          (1) If the comparison under Section 41-12a-803 shows that a motor vehicle is not
             143      insured for [two] three consecutive months, the Motor Vehicle Division shall direct that the
             144      designated agent provide notice to the owner of the motor vehicle that the owner has 15 days
             145      to provide:
             146          (a) proof of owner's or operator's security in a form allowed under Subsection
             147      [ 41-12a-303.2 (4)] 41-12a-303.2 (2)(b); or
             148          (b) proof of exemption from the owner's or operator's security requirements.
             149          (2) If an owner of a motor vehicle fails to provide satisfactory proof of owner's or
             150      operator's security to the designated agent, the designated agent shall:
             151          (a) provide a second notice to the owner of the motor vehicle that the owner now has
             152      15 days to provide:
             153          (i) proof of owner's or operator's security in a form allowed under Subsection
             154      [ 41-12a-303.2 (4)] 41-12a-303.2 (2)(b); or
             155          (ii) proof of exemption from the owner's or operator's security requirements;
             156          (b) for each notice provided, indicate information relating to the owner's failure to
             157      provide proof of owner's or operator's security in the database; and
             158          (c) provide this information to state and local law enforcement agencies as requested
             159      in accordance with the provisions under Section 41-12a-805 .
             160          (3) The Motor Vehicle Division:
             161          (a) shall revoke the registration upon receiving notification under Subsection
             162      41-1a-110 (2);
             163          (b) shall provide appropriate notices of the revocation, the legal consequences of
             164      operating a vehicle with revoked registration and without owner's or operator's security and
             165      instructions on how to get the registration reinstated; and
             166          (c) may direct the designated agent to provide the notices under this Subsection (3).
             167          (4) Any action by the Motor Vehicle Division to revoke the registration of a motor
             168      vehicle under this section may be in addition to an action by a law enforcement agency to
             169      impose the penalties under Section 41-12a-302 or 41-12a-303.2 .


             170          (5) (a) A person may not provide a false or fraudulent statement to the Motor Vehicle
             171      Division or designated agent.
             172          (b) In addition to any other penalties, a person who violates Subsection (5)(a) is guilty
             173      of a class B misdemeanor.
             174          (6) The department and the Motor Vehicle Division shall direct the designated agent
             175      to exempt from this section a farm truck that:
             176          (a) meets the definition of a farm truck under Section 41-1a-102 ; and
             177          (b) is registered as a farm truck under Title 41, Chapter 1a, Motor Vehicle Act.
             178          (7) This part does not affect other actions or penalties that may be taken or imposed
             179      for violation of the owner's and operator's security requirements of this chapter.
             180          (8) If a comparison under Section 41-12a-803 shows that a motor vehicle may not be
             181      in compliance with motor vehicle registration or sales and use tax laws, the Motor Vehicle
             182      Division may direct that the designated agent provide notice to the owner of a motor vehicle
             183      that information exists which indicates the possible violation.


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