LRB-2159/1
PJH:kjf:rs
2005 - 2006 LEGISLATURE
April 27, 2005 - Introduced by Representatives Lehman, Black, Cullen,
Gunderson, Krusick, Petrowski, Seidel, Sinicki, Van Akkeren
and Toles,
cosponsored by Senators Wirch, Carpenter and Roessler. Referred to
Committee on Insurance.
AB391,1,7 1An Act to amend 85.55, 194.41 (1), 302.46 (1) (a), 344.15 (1), 344.15 (2) (intro.),
2344.15 (4), 344.15 (5), 344.32 (1) (intro.), 344.33 (1), 344.35 (title), 344.35 (1),
3344.35 (2), 344.51 (1m), 345.61 (1) (a), 345.61 (2) (c), 345.61 (3), 346.73, 757.05
4(1) (a), 814.63 (1) (c), 814.63 (2), 814.65 (1), 814.85 (1) (a) and 814.86 (1); and to
5create
344.10 of the statutes; relating to: compulsory financial responsibility
6for the operation of motor vehicles, granting rule-making authority, and
7providing a penalty.
Analysis by the Legislative Reference Bureau
Under current law, the Department of Transportation (DOT) is required to
notify the operator or owner of a motor vehicle that is involved in an accident that
results in injury, death, or property damage of $1,000 or more and to obtain a deposit
of security for the accident. A deposit is not required if the person can provide proof
of financial responsibility (an applicable motor vehicle liability insurance policy or
bond that was in effect at the time of the accident providing not less than the
following amounts for any single accident: $25,000 for one person, $50,000 for more
than one person, and $10,000 for property damage).
With certain exceptions, failure to provide proof of financial responsibility or a
deposit of security after an accident results in suspension of the operator's motor
vehicle operating privilege or of the registration of any vehicles registered by the

owner of the vehicle involved in the accident. Any suspension continues until the
person provides a deposit of security or otherwise clears his or her liability or a year
elapses without an action being commenced as a result of the accident.
The person must demonstrate proof of financial responsibility for the future
before the person's operating privilege or registration is renewed or reinstated and
must maintain that proof for three years. Proof of financial responsibility for the
future may be demonstrated by having an insurance policy or bond in the same
amounts as are required at the time of an accident or by maintaining a deposit of
$60,000 in cash or securities with DOT.
This bill expands the financial responsibility law by prohibiting any person
from operating a motor vehicle upon a highway in this state unless the owner or
operator of the vehicle assures financial responsibility for the operation of the vehicle
(compulsory financial responsibility) by:
1. Having in effect a motor vehicle liability insurance policy or bond providing
not less than the following amounts for any single accident: $25,000 for one person,
$50,000 for more than one person, and $10,000 for property damage; or
2. Maintaining a deposit of $60,000 in cash or securities with DOT.
These insurance policy, bond, and deposit amounts are the same amounts as are
required under current law as proof of financial responsibility for the future. The bill
provides exceptions for vehicles that are owned by self-insurers; persons who are
required to insure the vehicle under other provisions of law; or vehicles owned by or
leased to a governmental unit, if being operated with the permission of the owner or
lessee. Any person convicted of failing to comply with this compulsory financial
responsibility requirement shall forfeit not more than $500.
The bill also requires any person operating a motor vehicle upon a highway in
this state to carry proof of compulsory financial responsibility for the operation of the
vehicle (such as an insurance card) or proof that he or she is exempt from this
financial responsibility requirement, and to provide such proof upon demand from
any law enforcement officer. Any person convicted of failing to carry such proof may
be required to forfeit $10, but no additional fees, costs, or assessments may be
collected. DOT is required to include notification of both of these requirements and
penalties with each operator's license that it issues.
Finally, the bill prohibits law enforcement officers from stopping or inspecting
a motor vehicle solely to determine whether the compulsory financial responsibility
requirement has been complied with or whether the operator is in compliance with
the requirement of carrying proof with respect to such financial responsibility. An
officer may, however, issue a citation for a violation observed in the course of a stop
or inspection made for other purposes, but may not take the person into physical
custody solely for the violation.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB391, s. 1
1Section 1. 85.55 of the statutes is amended to read:
AB391,3,11 285.55 Safe-ride grant program. The department may award grants to any
3county or municipality or to any nonprofit corporation, as defined in s. 66.0129 (6)
4(b), to cover the costs of transporting persons suspected of having a prohibited alcohol
5concentration, as defined in s. 340.01 (46m), from any premises licensed under ch.
6125 to sell alcohol beverages to their places of residence. The amount of a grant under
7this section may not exceed 50% of the costs necessary to provide the service. The
8liability of a provider of a safe-ride program to persons transported under the
9program is limited to the amounts required for an automobile a motor vehicle
10liability policy under s. 344.15 (1). Grants awarded under this section shall be paid
11from the appropriation under s. 20.395 (5) (ek).
AB391, s. 2 12Section 2. 194.41 (1) of the statutes is amended to read:
AB391,4,1713 194.41 (1) No permit or vehicle registration may be issued to a common motor
14carrier of property, contract motor carrier, or rental company, no permit or vehicle
15registration may remain in force to operate any motor vehicle under the authority
16of this chapter, and no vehicle registration may be issued or remain in force for a
17semitrailer unless the carrier or rental company has on file with the department and
18in effect an approved certificate for a policy of insurance or other written contract in
19such form and containing such terms and conditions as may be approved by the
20department issued by an insurer authorized to do a surety or automobile motor
21vehicle
liability business in this state under which the insurer assumes the liability
22prescribed by this section with respect to the operation of such motor vehicles. The
23certificate or other contract is subject to the approval of the department and shall
24provide that the insurer shall be directly liable for and shall pay all damages for
25injuries to or for the death of persons or for injuries to or destruction of property that

1may be recovered against the owner or operator of any such motor vehicles by reason
2of the negligent operation thereof in such amount as the department may require.
3Liability may be restricted so as to be inapplicable to damage claims on account of
4injury to or destruction of property transported, but the department may require a
5certificate or other contract protecting the owner of the property transported by
6carriers from loss or damage in the amount and under the conditions as the
7department may require. No permit or vehicle registration may be issued to a
8common motor carrier of passengers by any motor vehicle, or other carrier of
9passengers by motor bus, except those registered in accordance with s. 341.26 (2) (a)
10and (d), and no permit or vehicle registration may remain in force to operate any
11motor vehicle unless it has on file with the department a like certificate or other
12contract in the form and containing the terms and conditions as may be approved by
13the department for the payment of damages for injuries to property and injuries to
14or for the death of persons, including passengers, in the amounts as the department
15may require. This subsection does not apply to a motor carrier that is registered by
16another state under a single-state registration system consistent with the standards
17under 49 USC 14504.
AB391, s. 3 18Section 3. 302.46 (1) (a) of the statutes is amended to read:
AB391,5,719 302.46 (1) (a) On or after October 1, 1987, if If a court imposes a fine or
20forfeiture for a violation of state law or for a violation of a municipal or county
21ordinance except for a violation of s. 101.123 (2) (a), (am) 1., (ar), (bm), (br), or (bv)
22or (5), for a financial responsibility violation under s. 344.10 (1) (a) 2., or for a first
23violation of s. 23.33 (4c) (a) 2., 30.681 (1) (b) 1., 346.63 (1) (b), or 350.101 (1) (b), if the
24person who committed the violation had a blood alcohol concentration of 0.08 or more
25but less than 0.1 at the time of the violation, or for a violation of state laws or

1municipal or county ordinances involving nonmoving traffic violations or safety belt
2use violations under s. 347.48 (2m), the court, in addition, shall impose a jail
3surcharge under ch. 814 in an amount of 1% of the fine or forfeiture imposed or $10,
4whichever is greater. If multiple offenses are involved, the court shall determine the
5jail surcharge on the basis of each fine or forfeiture. If a fine or forfeiture is
6suspended in whole or in part, the court shall reduce the jail surcharge in proportion
7to the suspension.
AB391, s. 4 8Section 4. 344.10 of the statutes is created to read:
AB391,5,15 9344.10 Compulsory financial responsibility; limits and penalties. (1)
10(a) 1. No person may operate a motor vehicle upon a highway in this state unless the
11owner or operator has in effect a motor vehicle liability policy or bond for the motor
12vehicle, which meets the requirements under s. 344.15, insuring against loss
13resulting from liability imposed by law for bodily injury, death, and property damage
14sustained by any person arising out of the ownership, maintenance, operation, or use
15of the motor vehicle.
AB391,5,2116 2. No person may operate a motor vehicle upon a highway in this state unless
17the person has in his or her immediate possession at all times while operating the
18vehicle proof that he or she is in compliance with subd. 1. or that the requirements
19of subd. 1. do not apply to him or her. The operator of the motor vehicle shall display
20the proof required under this subdivision upon demand from any law enforcement
21officer.
AB391,6,222 (b) 1. No person charged with violating par. (a) 1. may be convicted if the person
23produces proof that he or she was in compliance with par. (a) 1. or that the
24requirements of par. (a) 1. did not apply to him or her at the time of the arrest. Such
25proof may be produced either at the time of the person's appearance in court in

1response to the uniform traffic citation, or in the office of the arresting officer within
25 days after the date of issuance of the uniform traffic citation.
AB391,6,73 2. Proof of compliance with par. (a) 1. may be evidenced by display of the motor
4vehicle policy or bond in effect for the motor vehicle under s. 344.15, a copy of that
5policy or bond, or an identification card issued to the person by the insurer indicating
6that the policy or bond is in effect or by display of certification of insurance under s.
7344.31 or a copy of that certification.
AB391,6,108 3. The department shall promulgate a rule specifying the form of proof that
9may be displayed by a person under par. (c) to show that the requirements under par.
10(a) 1. do not apply to him or her.
AB391,6,1111 (c) Paragraph (a) 1. does not apply to any of the following:
AB391,6,1312 1. A person operating a vehicle owned by a self-insurer under s. 344.16 if
13operating with the owner's permission.
AB391,6,1514 2. A person operating a vehicle insured as required by s. 121.53, 194.41, or
15194.42 if operating with the owner's permission.
AB391,6,1816 3. A person who has filed proof of financial responsibility as provided under
17sub. (2) or a person operating a vehicle owned by the person who has deposited money
18or security if operating with the owner's permission.
AB391,6,2119 4. The operator of a vehicle owned by or leased to the United States, this or
20another state, or any county or municipality of this or another state, if operating with
21the owner's or lessee's permission.
AB391,6,23 22(2) Proof of financial responsibility may be evidenced by a deposit of money or
23securities in the amount, form, and manner specified in s. 344.37.
AB391,7,7 24(3) Notwithstanding s. 349.02, a law enforcement officer may not stop or
25inspect a vehicle solely to determine compliance with sub. (1) (a) 1. or 2. or both or

1a local ordinance in conformity with sub. (1) (a) 1. or 2. or both. This subsection does
2not limit the authority of a law enforcement officer to issue a citation for a violation
3of sub. (1) (a) 1. or 2. or both or a local ordinance in conformity with sub. (1) (a) 1. or
42. or both observed in the course of a stop or inspection made for other purposes,
5except that a law enforcement officer may not take a person into physical custody
6solely for a violation of sub. (1) (a) 1. or 2. or both or a local ordinance in conformity
7with sub. (1) (a) 1. or 2. or both.
AB391,7,9 8(4) The department shall include with each operator's license issued under ch.
9343 notification of the requirements and penalties under this section.
AB391,7,10 10(5) (a) Any person who violates sub. (1) (a) 1. shall forfeit not more than $500.
AB391,7,1111 (b) Any person who violates sub. (1) (a) 2. may be required to forfeit $10.
AB391, s. 5 12Section 5. 344.15 (1) of the statutes is amended to read:
AB391,7,2213 344.15 (1) No policy or bond is effective under s. 344.10 or 344.14 unless issued
14by an insurer authorized to do an automobile a motor vehicle liability or surety
15business in this state, except as provided in sub. (2), or unless the policy or bond is
16subject, if the accident has resulted in bodily injury or death, to a limit, exclusive of
17interest and costs, of not less than $25,000 because of bodily injury to or death of one
18person in any one accident and, subject to that limit for one person, to a limit of not
19less than $50,000 because of bodily injury to or death of 2 or more persons in any one
20accident and, if the accident has resulted in injury to or destruction of property, to
21a limit of not less than $10,000 because of injury to or destruction of property of
22others in any one accident.
AB391, s. 6 23Section 6. 344.15 (2) (intro.) of the statutes is amended to read:
AB391,8,424 344.15 (2) (intro.) A policy or bond with respect to a vehicle which was not
25registered in this state or was registered elsewhere at the time of the effective date

1of the policy or bond or the most recent renewal thereof may be effective under s.
2344.10 or 344.14 even though not issued by an insurer authorized to do an automobile
3a motor vehicle liability or surety business in this state if the following conditions are
4complied with:
AB391, s. 7 5Section 7. 344.15 (4) of the statutes is amended to read:
AB391,9,26 344.15 (4) After receipt of the report of an accident of the type specified in s.
7344.12, the secretary may forward to the insurer named therein, that portion of the
8report or other notice which pertains to an automobile a motor vehicle liability policy
9or bond. The secretary shall assume that an automobile a motor vehicle liability
10policy or bond as described in this section was in effect and applied to both the owner
11and operator with respect to the accident unless the insurer notifies the secretary
12otherwise within 30 days from the mailing to the insurer of that portion of the report
13or other notice pertaining to the automobile motor vehicle liability policy or bond.
14Upon receipt of notice from the insurer that an automobile a motor vehicle liability
15policy or bond was in effect as to the owner only, the operator only or was not in effect
16as to either of them, the secretary shall within the remainder of the 90-day period
17specified in s. 344.13 (3) require the owner or operator or both, whichever is
18applicable, to deposit security pursuant to this chapter. As respects permission to
19operate the vehicle, the insurer may correct the report or other notice only if it files
20with the secretary within the 30-day period specified in this subsection an affidavit
21signed by the owner stating that the operator did not have the owner's permission
22to operate the vehicle. Where the insurer's failure to notify the secretary within 30
23days of a correction in that portion of the report or other notice pertaining to an
24automobile
a motor vehicle liability policy or bond is caused by fraud, the insurer

1shall notify the secretary of the correction within 30 days of the time the fraud is
2discovered.
AB391, s. 8 3Section 8. 344.15 (5) of the statutes is amended to read:
AB391,9,114 344.15 (5) Nothing in this chapter shall be construed to impose any obligation
5not otherwise assumed by the insurer in its automobile motor vehicle liability policy
6or bond except that if no correction is made in the report or other notice within 30
7days after it is mailed to the insurer, the insurer, except in case of fraud, whenever
8such fraud may occur, is estopped from using as a defense to its liability the insured's
9failure to give permission to the operator or a violation of the purposes of use specified
10in the automobile motor vehicle liability policy or bond or the use of the vehicle
11beyond agreed geographical limits.
AB391, s. 9 12Section 9. 344.32 (1) (intro.) of the statutes is amended to read:
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