Senator Curtis S. Bramble proposes the following substitute bill:


1     
VEHICLE REGISTRATION AND INSURANCE AMENDMENTS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Curtis S. Bramble

5     
House Sponsor: Don L. Ipson

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to vehicle registration and insurance.
10     Highlighted Provisions:
11          This bill:
12          ▸     provides that a person operating a vehicle owned by a rental company may have in
13     the person's possession or display, as proof of vehicle registration or insurance, the
14     vehicle's rental agreement; and
15          ▸     provides requirements to maintain owner's or operator's to maintain owner's or
16     operator's security for a school bus under certain conditions.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          41-1a-214, as last amended by Laws of Utah 2015, Chapter 412
24          41-12a-303.2, as last amended by Laws of Utah 2015, Chapter 412
25          41-12a-301, as last amended by Laws of Utah 2008, Chapter 36

26     

27     Be it enacted by the Legislature of the state of Utah:
28          Section 1. Section 41-1a-214 is amended to read:
29          41-1a-214. Registration card to be signed, carried, and exhibited.
30          (1) A registration card shall be signed by the owner in ink in the space provided.
31          (2) A registration card shall be carried at all times in the vehicle to which it was issued.
32          (3) The person driving or in control of a vehicle shall display the registration card upon
33     demand of a peace officer or any officer or employee of the division.
34          (4) For a vehicle owned by a rental company, as defined in Section 31A-22-311, a
35     person driving or in control of the vehicle may display the vehicle's rental agreement, as
36     defined in Section 31A-22-311, in place of a registration card for compliance with Subsection
37     (3).
38          [(4)] (5) A violation of this section is an infraction.
39          Section 2. Section 41-12a-301 is amended to read:
40          41-12a-301. Definition -- Requirement of owner's or operator's security --
41     Exceptions.
42          (1) As used in this section:
43          (a) "highway" has the same meaning as provided in Section 41-1a-102; and
44          (b) "quasi-public road or parking area" has the same meaning as provided in Section
45     41-6a-214.
46          (2) Except as provided in Subsection (5):
47          (a) every resident owner of a motor vehicle shall maintain owner's or operator's
48     security in effect at any time that the motor vehicle is operated on a highway or on a
49     quasi-public road or parking area within the state; and
50          (b) every nonresident owner of a motor vehicle that has been physically present in this
51     state for:
52          (i) 90 or fewer days during the preceding 365 days shall maintain the type and amount
53     of owner's or operator's security required in his place of residence, in effect continuously
54     throughout the period the motor vehicle remains within Utah; or
55          (ii) more than 90 days during the preceding 365 days shall thereafter maintain owner's
56     or operator's security in effect continuously throughout the period the motor vehicle remains

57     within Utah.
58          (3) (a) Except as provided in Subsection (5), the state and all of its political
59     subdivisions and their respective departments, institutions, or agencies shall maintain owner's
60     or operator's security in effect continuously for their motor vehicles.
61          (b) Any other state is considered a nonresident owner of its motor vehicles and is
62     subject to Subsection (2)(b).
63          (4) The United States, any political subdivision of it, or any of its agencies may
64     maintain owner's or operator's security in effect for their motor vehicles.
65          (5) Owner's or operator's security is not required for any of the following:
66          (a) off-highway vehicles registered under Section 41-22-3 when operated either:
67          (i) on a highway designated as open for off-highway vehicle use; or
68          (ii) in the manner prescribed by Subsections 41-22-10.3(1) through (3);
69          (b) off-highway implements of husbandry operated in the manner prescribed by
70     Subsections 41-22-5.5(3) through (5);
71          (c) electric assisted bicycles as defined under Section 41-6a-102;
72          (d) motor assisted scooters as defined under Section 41-6a-102; or
73          (e) electric personal assistive mobility devices as defined under Section 41-6a-102.
74          (f) a school district, for a school bus that the school district authorizes a state entity or
75     political subdivision of the state to use.
76          (6) If a school district authorizes a state entity or political subdivision of the state to
77     use a school bus:
78          (a) the state entity or political subdivision shall maintain owner's or operator's security
79     during the term of the school bus use in an amount that is greater than or equal to any
80     governmental immunity liability limit;
81          (b) the state entity or the political subdivision shall indemnify and defend the school
82     district for any claim that arises from the school bus use; and
83          (c) if the school district maintains owner's or operator's security for the school bus
84     during the term of school bus use, the owner's and operator's security maintained by the state
85     entity or political subdivision of the state is primary to the owner's and operator's security
86     maintained by the school district.
87          Section 3. Section 41-12a-303.2 is amended to read:

88          41-12a-303.2. Evidence of owner's or operator's security to be carried when
89     operating motor vehicle -- Defense -- Penalties.
90          (1) As used in this section:
91          (a) "Division" means the Motor Vehicle Division of the State Tax Commission.
92          (b) "Registration materials" means the evidences of motor vehicle registration,
93     including all registration cards, license plates, temporary permits, and nonresident temporary
94     permits.
95          (2) (a) (i) A person operating a motor vehicle shall:
96          (A) have in the person's immediate possession evidence of owner's or operator's
97     security for the motor vehicle the person is operating; and
98          (B) display it upon demand of a peace officer.
99          (ii) A person is exempt from the requirements of Subsection (2)(a)(i) if the person is
100     operating:
101          (A) a government-owned or leased motor vehicle; or
102          (B) an employer-owned or leased motor vehicle and is driving it with the employer's
103     permission.
104          (iii) A person operating a vehicle that is owned by a rental company, as defined in
105     Section 31A-22-311, may comply with Subsection (2)(a)(i) by having in the person's
106     immediate possession, or displaying, the rental vehicle's rental agreement, as defined in Section
107     31A-22-311.
108          (b) Evidence of owner's or operator's security includes any one of the following:
109          (i) a copy of the operator's valid:
110          (A) insurance policy;
111          (B) insurance policy declaration page;
112          (C) binder notice;
113          (D) renewal notice; or
114          (E) card issued by an insurance company as evidence of insurance;
115          (ii) a certificate of insurance issued under Section 41-12a-402;
116          (iii) a certified copy of a surety bond issued under Section 41-12a-405;
117          (iv) a certificate of the state treasurer issued under Section 41-12a-406;
118          (v) a certificate of self-funded coverage issued under Section 41-12a-407; or

119          (vi) information that the vehicle or driver is insured from the Uninsured Motorist
120     Identification Database Program created under Title 41, Chapter 12a, Part 8, Uninsured
121     Motorist Identification Database Program.
122          (c) A card issued by an insurance company as evidence of owner's or operator's
123     security under Subsection (2)(b)(i)(E) on or after July 1, 2014, may not display the owner's or
124     operator's address on the card.
125          (d) (i) A person may provide to a peace officer evidence of owner's or operator's
126     security described in this Subsection (2) in:
127          (A) a hard copy format; or
128          (B) an electronic format using a mobile electronic device.
129          (ii) If a person provides evidence of owner's or operator's security in an electronic
130     format using a mobile electronic device under this Subsection (2)(d), the peace officer viewing
131     the owner's or operator's security on the mobile electronic device may not view any other
132     content on the mobile electronic device.
133          (iii) Notwithstanding any other provision under this section, a peace officer is not
134     subject to civil liability or criminal penalties under this section if the peace officer inadvertently
135     views content other than the evidence of owner's or operator's security on the mobile electronic
136     device.
137          (e) (i) Evidence of owner's or operator's security from the Uninsured Motorist
138     Identification Database Program described under Subsection (2)(b)(vi) supercedes any
139     evidence of owner's or operator's security described under Subsection (2)(b)(i)(D) or (E).
140          (ii) A peace officer may not cite or arrest a person for a violation of Subsection (2)(a) if
141     the Uninsured Motorist Identification Database Program created under Title 41, Chapter 12a,
142     Part 8, Uninsured Motorist Identification Database Program, information indicates that the
143     vehicle or driver is insured.
144          (3) It is an affirmative defense to a charge under this section that the person had
145     owner's or operator's security in effect for the vehicle the person was operating at the time of
146     the person's citation or arrest.
147          (4) (a) Evidence of owner's or operator's security as defined under Subsection (2)(b) or
148     a written statement from an insurance producer or company verifying that the person had the
149     required motor vehicle insurance coverage on the date specified is considered proof of owner's

150     or operator's security for purposes of Subsection (3) and Section 41-12a-804.
151          (b) The court considering a citation issued under this section shall allow the evidence
152     or a written statement under Subsection (4)(a) and a copy of the citation to be faxed or mailed
153     to the clerk of the court to satisfy Subsection (3).
154          (c) The notice under Section 41-12a-804 shall specify that the written statement under
155     Subsection (4)(a) and a copy of the notice shall be faxed or mailed to the designated agent to
156     satisfy the proof of owner's or operator's security required under Section 41-12a-804.
157          (5) A violation of this section is a class C misdemeanor, and the fine shall be not less
158     than:
159          (a) $400 for a first offense; and
160          (b) $1,000 for a second and subsequent offense within three years of a previous
161     conviction or bail forfeiture.
162          (6) Upon receiving notification from a court of a conviction for a violation of this
163     section, the department:
164          (a) shall suspend the person's driver license; and
165          (b) may not renew the person's driver license or issue a driver license to the person
166     until the person gives the department proof of owner's or operator's security.
167          (i) This proof of owner's or operator's security shall be given by any of the ways
168     required under Section 41-12a-401.
169          (ii) This proof of owner's or operator's security shall be maintained with the department
170     for a three-year period.
171          (iii) An insurer that provides a certificate of insurance as provided under Section
172     41-12a-402 or 41-12a-403 may not terminate the insurance policy unless notice of termination
173     is filed with the department no later than 10 days after termination as required under Section
174     41-12a-404.
175          (iv) If a person who has canceled the certificate of insurance applies for a license
176     within three years from the date proof of owner's or operator's security was originally required,
177     the department shall refuse the application unless the person reestablishes proof of owner's or
178     operator's security and maintains the proof for the remainder of the three-year period.