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7 LONG TITLE
8 General Description:
9 This bill amends provisions related to owner's or operator's motor vehicle security.
10 Highlighted Provisions:
11 This bill:
12 ▸ addresses what constitutes evidence of owner's or operator's security; and
13 ▸ repeals a requirement to carry evidence of owner's or operator's motor vehicle
14 security.
15 Money Appropriated in this Bill:
16 None
17 Other Special Clauses:
18 None
19 Utah Code Sections Affected:
20 AMENDS:
21 31A-22-302, as last amended by Laws of Utah 2013, Chapter 91
22 41-1a-109, as last amended by Laws of Utah 2013, Chapter 138
23 41-1a-110, as last amended by Laws of Utah 2015, Chapter 304
24 41-1a-1101, as last amended by Laws of Utah 2018, Chapter 29
25 41-6a-403, as last amended by Laws of Utah 2008, Chapter 382
26 41-12a-301, as last amended by Laws of Utah 2016, Chapter 356
27 41-12a-302, as last amended by Laws of Utah 2015, Chapter 412
28 41-12a-303.3, as enacted by Laws of Utah 1994, Chapter 220
29 41-12a-804, as last amended by Laws of Utah 2013, Chapter 138
30 REPEALS:
31 41-12a-303.2, as last amended by Laws of Utah 2018, Chapters 30 and 160
32
33 Be it enacted by the Legislature of the state of Utah:
34 Section 1. Section 31A-22-302 is amended to read:
35 31A-22-302. Required components of motor vehicle insurance policies --
36 Exceptions.
37 (1) Every policy of insurance or combination of policies purchased to satisfy the
38 owner's or operator's security requirement of Section 41-12a-301 shall include:
39 (a) motor vehicle liability coverage under Sections 31A-22-303 and 31A-22-304;
40 (b) uninsured motorist coverage under Section 31A-22-305, unless affirmatively
41 waived under Subsection 31A-22-305(5);
42 (c) underinsured motorist coverage under Section 31A-22-305.3, unless affirmatively
43 waived under Subsection 31A-22-305.3(3); and
44 (d) except as provided in Subsection (2) and subject to Subsection (4), personal injury
45 protection under Sections 31A-22-306 through 31A-22-309.
46 (2) A policy of insurance or combination of policies, purchased to satisfy the owner's
47 or operator's security requirement of Section 41-12a-301 for a motorcycle, off-highway vehicle,
48 street-legal all-terrain vehicle, trailer, or semitrailer is not required to have personal injury
49 protection under Sections 31A-22-306 through 31A-22-309.
50 (3) A card issued by an insurance company as evidence of owner's or operator's
51 security under [
52 2014, may not display the owner's or operator's address on the card.
53 (4) (a) First party medical coverages may be offered or included in policies issued to
54 motorcycle, off-highway vehicle, street-legal all-terrain vehicle, trailer, and semitrailer owners
55 or operators.
56 (b) Owners and operators of motorcycles, off-highway vehicles, street-legal all-terrain
57 vehicles, trailers, and semitrailers are not covered by personal injury protection coverages in
58 connection with injuries incurred while operating any of these vehicles.
59 (5) First party medical coverage expenses shall be governed by the relative value study
60 provisions under Subsections 31A-22-307(2) and (3).
61 Section 2. Section 41-1a-109 is amended to read:
62 41-1a-109. Grounds for division refusing registration or certificate of title.
63 (1) The division shall refuse registration or issuance of a certificate of title or any
64 transfer of registration upon any of the following grounds:
65 (a) the application contains any false or fraudulent statement;
66 (b) the applicant has failed to furnish required information or reasonable additional
67 information requested by the division;
68 (c) the applicant is not entitled to the issuance of a certificate of title or registration of
69 the vehicle under this chapter;
70 (d) the division has reasonable grounds to believe that the vehicle is a stolen vehicle or
71 that the granting of registration or the issuance of a certificate of title would constitute a fraud
72 against the rightful owner or other person having a valid lien upon the vehicle;
73 (e) the registration of the vehicle is suspended or revoked for any reason provided in
74 the motor vehicle laws of this state; or
75 (f) the required fees have not been paid.
76 (2) The division shall also refuse registration or any transfer of registration if the
77 vehicle is mechanically unfit or unsafe to be operated or moved upon the highways.
78 (3) The division shall refuse registration or any transfer of registration of a vehicle
79 upon notification by the Department of Transportation that the vehicle or owner is not in
80 compliance with Title 72, Chapter 9, Motor Carrier Safety Act.
81 (4) The division may not register a vehicle if the registration of the vehicle is revoked
82 under Subsection 41-1a-110(2) until the applicant provides proof:
83 (a) of owner's or operator's security in a form allowed under Subsection
84 [
85 (b) of exemption from the owner's or operator's security requirements; or
86 (c) that the applicant was not an owner of the vehicle at the time of the alleged
87 violation or on the day following the time limit provided after the second notice under
88 Subsection 41-12a-804(2).
89 Section 3. Section 41-1a-110 is amended to read:
90 41-1a-110. Authority of division to suspend or revoke registration, certificate of
91 title, license plate, or permit.
92 (1) Except as provided in Subsections (3) and (4), the division may suspend or revoke
93 a registration, certificate of title, license plate, or permit if:
94 (a) the division is satisfied that a registration, certificate of title, license plate, or permit
95 was fraudulently procured or erroneously issued;
96 (b) the division determines that a registered vehicle is mechanically unfit or unsafe to
97 be operated or moved upon the highways;
98 (c) a registered vehicle has been dismantled;
99 (d) the division determines that the required fee has not been paid and the fee is not
100 paid upon reasonable notice and demand;
101 (e) a registration decal, license plate, or permit is knowingly displayed upon a vehicle
102 other than the one for which issued;
103 (f) the division determines that the owner has committed any offense under this chapter
104 involving the registration, certificate of title, registration card, license plate, registration decal,
105 or permit; or
106 (g) the division receives notification by the Department of Transportation that the
107 owner has committed any offence under Title 72, Chapter 9, Motor Carrier Safety Act.
108 (2) (a) The division shall revoke the registration of a vehicle if the division receives
109 notification by the:
110 (i) Department of Public Safety that a person:
111 (A) has been convicted of operating a registered motor vehicle in violation of Section
112 41-12a-301 [
113 (B) is under an administrative action taken by the Department of Public Safety for
114 operating a registered motor vehicle in violation of Section 41-12a-301; or
115 (ii) designated agent that the owner of a motor vehicle:
116 (A) has failed to provide satisfactory proof of owner's or operator's security to the
117 designated agent after the second notice provided under Section 41-12a-804; or
118 (B) provided a false or fraudulent statement to the designated agent.
119 (b) The division shall notify the Driver License Division if the division revokes the
120 registration of a vehicle under Subsection (2)(a)(ii)(A).
121 (3) The division may not suspend or revoke the registration of a vessel or outboard
122 motor unless authorized under Section 73-18-7.3.
123 (4) The division may not suspend or revoke the registration of an off-highway vehicle
124 unless authorized under Section 41-22-17.
125 (5) The division shall charge a registration reinstatement fee under Section 41-1a-1220,
126 if the registration is revoked under Subsection (1)(f).
127 (6) Except as provided in Subsections (3), (4), and (7), the division may suspend or
128 revoke a registered vehicle's registration if the division is notified by a local health department,
129 as defined in Section 26A-1-102, that the registered vehicle is unable to meet state or local air
130 emissions standards.
131 (7) The division may not suspend or revoke a registered vehicle's registration under
132 Subsection (6) if the registered vehicle has a manufacturer's gross vehicle weight rating that is
133 greater than 26,000 pounds.
134 Section 4. Section 41-1a-1101 is amended to read:
135 41-1a-1101. Seizure -- Circumstances where permitted -- Impound lot standards.
136 (1) The division or any peace officer, without a warrant, may seize and take possession
137 of any vehicle, vessel, or outboard motor:
138 (a) that the division or the peace officer has reason to believe has been stolen;
139 (b) on which any identification number has been defaced, altered, or obliterated;
140 (c) that has been abandoned in accordance with Section 41-6a-1408;
141 (d) for which the applicant has written a check for registration or title fees that has not
142 been honored by the applicant's bank and that is not paid within 30 days;
143 (e) that is placed on the water with improper registration;
144 (f) that is being operated on a highway:
145 (i) with registration that has been expired for more than three months;
146 (ii) having never been properly registered by the current owner; or
147 (iii) with registration that is suspended or revoked; or
148 (g) (i) that the division or the peace officer has reason to believe has been involved in
149 an accident described in Section 41-6a-401, 41-6a-401.3, or 41-6a-401.5; and
150 (ii) whose operator did not remain at the scene of the accident until the operator
151 fulfilled the requirements described in Section 41-6a-401 or 41-6a-401.7.
152 (2) (a) Subject to the restriction in Subsection (2)(b), the division or any peace officer,
153 without a warrant:
154 (i) shall seize and take possession of any vehicle that is being operated on a highway
155 without owner's or operator's security in effect for the vehicle as required under Section
156 41-12a-301 and the vehicle was involved in an accident; or
157 (ii) may seize and take possession of any vehicle that is being operated on a highway
158 without owner's or operator's security in effect for the vehicle as required under Section
159 41-12a-301 after the division or any peace officer makes a reasonable determination whether
160 the vehicle would:
161 (A) present a public safety concern to the operator or any of the occupants in the
162 vehicle; or
163 (B) prevent the division or the peace officer from addressing other public safety
164 considerations.
165 (b) The division or any peace officer may not seize and take possession of a vehicle
166 under Subsection (2)(a)[
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174 or operator's security in effect for the vehicle, as described in Subsection 41-12a-301(7), unless
175 the division or a peace officer makes a reasonable attempt to independently verify that owner's
176 or operator's security is not in effect for the vehicle.
177 (3) If necessary for the transportation of a seized vessel, the vessel's trailer may be
178 seized to transport and store the vessel.
179 (4) Any peace officer seizing or taking possession of a vehicle, vessel, or outboard
180 motor under this section shall comply with the provisions of Section 41-6a-1406.
181 (5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
182 the commission shall make rules setting standards for public garages, impound lots, and
183 impound yards that may be used by peace officers and the division.
184 (b) The standards shall be equitable, reasonable, and unrestrictive as to the number of
185 public garages, impound lots, or impound yards per geographical area.
186 (6) (a) Except as provided under Subsection (6)(b), a person may not operate or allow
187 to be operated a vehicle stored in a public garage, impound lot, or impound yard regulated
188 under this part without prior written permission of the owner of the vehicle.
189 (b) Incidental and necessary operation of a vehicle to move the vehicle from one
190 parking space to another within the facility and that is necessary for the normal management of
191 the facility is not prohibited under Subsection (6)(a).
192 (7) A person who violates the provisions of Subsection (6) is guilty of a class C
193 misdemeanor.
194 (8) The division or the peace officer who seizes a vehicle shall record the mileage
195 shown on the vehicle's odometer at the time of seizure, if:
196 (a) the vehicle is equipped with an odometer; and
197 (b) the odometer reading is accessible to the division or the peace officer.
198 Section 5. Section 41-6a-403 is amended to read:
199 41-6a-403. Vehicle accidents -- Investigation and report of operator security --
200 Agency action if no security -- Surrender of plates -- Penalties.
201 (1) (a) Upon request of a peace officer investigating an accident involving a motor
202 vehicle, the operator of the motor vehicle shall provide evidence of the owner's or operator's
203 security required under Section 41-12a-301[
204 Identification Database Program created in Section 41-12a-803 indicating there is owner's or
205 operator's security in effect for the motor vehicle is not available.
206 (b) An operator of a motor vehicle shall respond to a request under Subsection (1)(a)
207 within three business days after the day on which the accident occurs and is not required to
208 provide evidence of owner's or operator's security at the scene of the accident.
209 [
210 under [
211 (2) The peace officer shall record on a form approved by the department:
212 (a) the information provided by the operator;
213 (b) whether the operator provided insufficient or no information;
214 (c) whether the officer finds reasonable cause to believe that any information given is
215 not correct; and
216 (d) whether other information available to the peace officer indicates that owner's or
217 operator's security is in effect.
218 (3) The peace officer shall deposit all completed forms with the peace officer's law
219 enforcement agency, which shall forward the forms to the department no later than 10 days
220 after receipt.
221 (4) (a) The department shall within 10 days of receipt of the forms from the law
222 enforcement agency take action as follows:
223 (i) if the operator provided no information under Subsection (1) and other information
224 available to the peace officer does not indicate that owner's or operator's security is in effect,
225 the department shall take direct action under Subsection 53-3-221(13); or
226 (ii) if the peace officer noted or the department determines that there is reasonable
227 cause to believe that the information given under Subsection (1) is not correct, the department
228 shall contact directly the insurance company or other provider of security as described in
229 Section [
230 submitted as of the date of the accident.
231 (b) The department may require the verification under Subsection (4)(a)(ii) to be in a
232 form specified by the department.
233 (c) The insurance company or other provider of security shall return the verification to
234 the department within 30 days of receipt of the request.
235 (d) If the department does not receive verification within 35 days after sending the
236 request, or within the 35 days receives notice that the information was not correct, the
237 department shall take action under Subsection 53-3-221(13).
238 (5) (a) The owner of a vehicle with unexpired license plates for which security is not
239 provided as required under this chapter shall return the plates for the vehicle to the Motor
240 Vehicle Division unless specifically permitted by statute to retain them.
241 (b) If the owner fails to return the plates as required, the plates shall be confiscated
242 under Section 53-3-226.
243 (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
244 department may make rules for the enforcement of this section.
245 (7) A person is guilty of a class B misdemeanor, and shall be fined not less than $100,
246 who:
247 (a) when requested to provide security information under Subsection (1)[
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249 (b) falsely represents to the department that security required under this chapter is in
250 effect; or
251 (c) sells a vehicle to avoid the penalties of this section as applicable either to himself or
252 a third party.
253 Section 6. Section 41-12a-301 is amended to read:
254 41-12a-301. Definition -- Requirement of owner's or operator's security --
255 Exceptions -- Proof of security.
256 (1) As used in this section:
257 (a) "highway" has the same meaning as provided in Section 41-1a-102; and
258 (b) "quasi-public road or parking area" has the same meaning as provided in Section
259 41-6a-214.
260 (2) Except as provided in Subsection (5):
261 (a) every resident owner of a motor vehicle shall maintain owner's or operator's
262 security in effect at any time that the motor vehicle is operated on a highway or on a
263 quasi-public road or parking area within the state; and
264 (b) every nonresident owner of a motor vehicle that has been physically present in this
265 state for:
266 (i) 90 or fewer days during the preceding 365 days shall maintain the type and amount
267 of owner's or operator's security required in his place of residence, in effect continuously
268 throughout the period the motor vehicle remains within Utah; or
269 (ii) more than 90 days during the preceding 365 days shall thereafter maintain owner's
270 or operator's security in effect continuously throughout the period the motor vehicle remains
271 within Utah.
272 (3) (a) Except as provided in Subsection (5), the state and all of its political
273 subdivisions and their respective departments, institutions, or agencies shall maintain owner's
274 or operator's security in effect continuously for their motor vehicles.
275 (b) Any other state is considered a nonresident owner of its motor vehicles and is
276 subject to Subsection (2)(b).
277 (4) The United States, any political subdivision of it, or any of its agencies may
278 maintain owner's or operator's security in effect for their motor vehicles.
279 (5) Owner's or operator's security is not required for any of the following:
280 (a) off-highway vehicles registered under Section 41-22-3 when operated either:
281 (i) on a highway designated as open for off-highway vehicle use; or
282 (ii) in the manner prescribed by Subsections 41-22-10.3(1) through (3);
283 (b) off-highway implements of husbandry operated in the manner prescribed by
284 Subsections 41-22-5.5(3) through (5);
285 (c) electric assisted bicycles as defined under Section 41-6a-102;
286 (d) motor assisted scooters as defined under Section 41-6a-102;
287 (e) electric personal assistive mobility devices as defined under Section 41-6a-102; or
288 (f) a school district, for a school bus that the school district authorizes a state entity or
289 political subdivision of the state to use.
290 (6) If a school district authorizes a state entity or political subdivision of the state to
291 use a school bus:
292 (a) the state entity or political subdivision shall maintain owner's or operator's security
293 during the term of the school bus use in an amount that is greater than or equal to any
294 governmental immunity liability limit;
295 (b) the state entity or the political subdivision shall indemnify and defend the school
296 district for any claim that arises from the school bus use including a claim directed at the
297 school district, unless the claim arises from the sole negligence of the school district; and
298 (c) if the school district maintains owner's or operator's security for the school bus
299 during the term of school bus use, the owner's and operator's security maintained by the state
300 entity or political subdivision of the state is primary to the owner's and operator's security
301 maintained by the school district.
302 (7) (a) For purposes of demonstrating compliance with this section to a peace officer,
303 evidence of owner's or operator's security includes:
304 (i) information on the Uninsured Motorist Identification Database Program created in
305 Section 41-12a-803 indicating there is owner's or operator's security in effect for the motor
306 vehicle; or
307 (ii) if information described in Subsection (7)(a)(i) is not available:
308 (A) a copy of the operator's valid insurance policy, insurance policy declaration page,
309 binder notice, renewal notice, or card issued by an insurance company as evidence of
310 insurance;
311 (B) a certificate of insurance issued under Section 41-12a-402;
312 (C) a certified copy of a surety bond issued under Section 41-12a-405;
313 (D) a certificate of the state treasurer issued under Section 41-12a-406; or
314 (E) a certificate of self-funded coverage issued under Section 41-12a-407.
315 (b) (i) A person may provide to a peace officer evidence of owner's or operator's
316 security described in Subsection (7)(a)(ii) in:
317 (A) a hard copy format; or
318 (B) an electronic format using a mobile electronic device.
319 (ii) If a person provides evidence of owner's or operator's security in an electronic
320 format using a mobile electronic device, the peace officer viewing the owner's or operator's
321 security on the mobile electronic device may not view any other content on the mobile
322 electronic device.
323 (iii) Notwithstanding any other provision under this section, a peace officer is not
324 subject to civil liability or criminal penalties under this section if the peace officer inadvertently
325 views content other than the evidence of owner's or operator's security on the mobile electronic
326 device.
327 Section 7. Section 41-12a-302 is amended to read:
328 41-12a-302. Operating motor vehicle without owner's or operator's security --
329 Penalty -- Evidence for establishing affirmative defense.
330 (1) (a) Except as provided in Subsection (1)(b), an owner of a motor vehicle on which
331 owner's or operator's security is required under Section 41-12a-301, who operates the owner's
332 vehicle or permits it to be operated on a highway in this state without owner's security being in
333 effect is guilty of a class C misdemeanor, and the fine shall be not less than:
334 (i) $400 for a first offense; and
335 (ii) $1,000 for a second and subsequent offense within three years of a previous
336 conviction or bail forfeiture.
337 (b) A court may waive up to $300 of the fine charged to the owner of a motor vehicle
338 under Subsection (1)(a)(i) if the owner demonstrates that owner's or operator's security required
339 under Section 41-12a-301 was obtained subsequent to the violation but before sentencing.
340 (2) (a) Except as provided under Subsection (2)(b), any other person who operates a
341 motor vehicle upon a highway in Utah with the knowledge that the owner does not have
342 owner's security in effect for the motor vehicle is also guilty of a class C misdemeanor, and the
343 fine shall be not less than:
344 (i) $400 for a first offense; and
345 (ii) $1,000 for a second and subsequent offense within three years of a previous
346 conviction or bail forfeiture.
347 (b) A person that has in effect owner's security on a Utah-registered motor vehicle or
348 its equivalent that covers the operation, by the person, of the motor vehicle in question is
349 exempt from this Subsection (2).
350 (3) For purposes of demonstrating that a person charged under this section had owner's
351 or operator's security in effect for the vehicle the person was operating at the time of the
352 person's citation or arrest, each of the following is proof of owner's or operator's security:
353 (a) evidence described in Subsection 41-12a-301(7)(a)(ii);
354 (b) a written statement from an insurance producer or company verifying that the
355 person had the required motor vehicle insurance coverage on the date specified; or
356 (c) a written statement from an insurance producer or company, or provision in an
357 insurance policy, indicating that the policy provides coverage for a newly purchased car and the
358 coverage extended to the date specified.
359 Section 8. Section 41-12a-303.3 is amended to read:
360 41-12a-303.3. Providing false evidence of owner's or operator's security --
361 Penalty.
362 A person who provides evidence of owner's or operator's security to a peace officer
363 under [
364 believe that the evidence of owner's or operator's security is false or that it is evidence of
365 owner's or operator's security that is not in effect is guilty of a class B misdemeanor.
366 Section 9. Section 41-12a-804 is amended to read:
367 41-12a-804. Notice -- Proof -- Revocation of registration -- False statements --
368 Penalties -- Exemptions -- Sales tax enforcement.
369 (1) If the comparison under Section 41-12a-803 shows that a motor vehicle is not
370 insured for three consecutive months, the Motor Vehicle Division shall direct that the
371 designated agent provide notice to the owner of the motor vehicle that the owner has 15 days to
372 provide:
373 (a) proof of owner's or operator's security in a form allowed under Subsection
374 [
375 (b) proof of exemption from the owner's or operator's security requirements.
376 (2) If an owner of a motor vehicle fails to provide satisfactory proof of owner's or
377 operator's security to the designated agent, the designated agent shall:
378 (a) provide a second notice to the owner of the motor vehicle that the owner now has
379 15 days to provide:
380 (i) proof of owner's or operator's security in a form allowed under Subsection
381 [
382 (ii) proof of exemption from the owner's or operator's security requirements;
383 (b) for each notice provided, indicate information relating to the owner's failure to
384 provide proof of owner's or operator's security in the database; and
385 (c) provide this information to state and local law enforcement agencies as requested in
386 accordance with the provisions under Section 41-12a-805.
387 (3) The Motor Vehicle Division:
388 (a) shall revoke the registration upon receiving notification under Subsection
389 41-1a-110(2);
390 (b) shall provide appropriate notices of the revocation, the legal consequences of
391 operating a vehicle with revoked registration and without owner's or operator's security, and
392 instructions on how to get the registration reinstated; and
393 (c) may direct the designated agent to provide the notices under this Subsection (3).
394 (4) Any action by the Motor Vehicle Division to revoke the registration of a motor
395 vehicle under this section may be in addition to an action by a law enforcement agency to
396 impose the penalties under Section 41-12a-302 [
397 (5) (a) A person may not provide a false or fraudulent statement to the Motor Vehicle
398 Division or designated agent.
399 (b) In addition to any other penalties, a person who violates Subsection (5)(a) is guilty
400 of a class B misdemeanor.
401 (6) The department and the Motor Vehicle Division shall direct the designated agent to
402 exempt from this section a farm truck that:
403 (a) meets the definition of a farm truck under Section 41-1a-102; and
404 (b) is registered as a farm truck under Title 41, Chapter 1a, Motor Vehicle Act.
405 (7) This part does not affect other actions or penalties that may be taken or imposed for
406 violation of the owner's and operator's security requirements of this chapter.
407 (8) If a comparison under Section 41-12a-803 shows that a motor vehicle may not be in
408 compliance with motor vehicle registration or sales and use tax laws, the Motor Vehicle
409 Division may direct that the designated agent provide notice to the owner of a motor vehicle
410 that information exists which indicates the possible violation.
411 Section 10. Repealer.
412 This bill repeals:
413 Section 41-12a-303.2, Evidence of owner's or operator's security to be carried
414 when operating motor vehicle -- Defense -- Penalties.