LRB-1804/1
ZDW:wlj
2015 - 2016 LEGISLATURE
January 7, 2016 - Introduced by Representatives Kulp, Jacque, Ballweg, Bernier,
Thiesfeldt, Horlacher, Murphy, Sanfelippo and Macco, cosponsored by
Senators Olsen and Stroebel. Referred to Committee on Insurance.
AB649,1,4 1An Act to renumber and amend 344.16 (1); to amend 344.14 (2) (d) and 344.16
2(2); and to create 344.16 (1) (a) and (b), 344.16 (2m) and 344.63 (1) (cm) of the
3statutes; relating to: self-insurance by religious sects for purposes of motor
4vehicle financial responsibility and liability insurance requirements.
Analysis by the Legislative Reference Bureau
Under current law, if a motor vehicle accident results in injury, death, or
property damage of $1,000 or more, the Department of Transportation (DOT) is
required to notify the operator and the owner of the vehicle involved in the accident
that the person must deposit with DOT security for the accident in an amount
determined by DOT to be sufficient to satisfy any judgment for damages resulting
from the accident. Unless an exception applies, if a person fails to timely deposit
security after this notice, DOT must suspend the person's operating privilege if the
person was the vehicle operator and suspend all vehicle registrations of the person
if the person was the vehicle owner. One of the exceptions is that the person provides
proof of financial responsibility. In addition, if DOT receives a certified copy of a
judgment for damages of $500 or more arising out of a motor vehicle accident, DOT
must immediately suspend the operating privilege and all registrations of the person
against whom the judgment was rendered unless the person can provide proof of
financial responsibility. In both situations, proof of financial responsibility includes
coverage under a motor vehicle liability insurance policy with specified minimum
liability limits. In lieu of a motor vehicle liability insurance policy, a person can show

that the person is a self-insurer possessing a certificate of self-insurance issued by
DOT.
Also under current law, subject to certain exceptions, a person cannot operate
a motor vehicle in this state unless the owner or operator of the vehicle has in effect
a motor vehicle liability insurance policy for the vehicle providing coverage in at least
specified minimum liability limits. However, there is an exception for a motor vehicle
owned by a self-insurer possessing a certificate of self-insurance issued by DOT.
Under current law, a person who owns a fleet of more than 25 motor vehicles
registered in the person's name may qualify as a self-insurer. Upon application,
DOT may issue a certificate of self-insurance to the person if DOT is satisfied that
the person is possessed, and will continue to be possessed, of ability to pay judgments
obtained against the person.
Under this bill, a religious sect the members of which have collectively
registered with DOT more than 25 vehicles may qualify as a self-insurer. Upon
application, DOT may issue a certificate of self-insurance to a religious sect the
members of which have a long-standing history of providing mutual financial
assistance in a time of need, if DOT is satisfied that the religious sect is possessed,
and will continue to be possessed, of ability to pay judgments obtained against the
religious sect. If DOT issues a certificate of self-insurance to a religious sect, the
certificate of self-insurance provides the same exception for members of the religious
sect that, under current law, applies to a fleet owner: the certificate of self-insurance
can be used in lieu of motor vehicle liability insurance to satisfy proof of financial
responsibility and mandatory motor vehicle liability insurance requirements.
For further information see the state 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:
AB649,1 1Section 1. 344.14 (2) (d) of the statutes is amended to read:
AB649,2,42 344.14 (2) (d) To any person qualifying as a self-insurer under s. 344.16 or to
3any person
operating a vehicle for such self-insurer or to any member of a religious
4sect issued a certificate of self-insurance under s. 344.16
.
AB649,2 5Section 2. 344.16 (1) of the statutes is renumbered 344.16 (1) (intro.) and
6amended to read:
AB649,3,3
1344.16 (1) (intro.) Any person in whose name more than 25 motor vehicles are
2registered
of the following may qualify as a self-insurer by obtaining a certificate of
3self-insurance issued by the secretary as provided in sub. (2).:
AB649,3 4Section 3. 344.16 (1) (a) and (b) of the statutes are created to read:
AB649,3,65 344.16 (1) (a) A person in whose name more than 25 motor vehicles are
6registered.
AB649,3,87 (b) Subject to sub. (2m), a religious sect the members of which have collectively
8registered with the department more than 25 motor vehicles.
AB649,4 9Section 4. 344.16 (2) of the statutes is amended to read:
AB649,3,1310 344.16 (2) The Subject to sub. (2m), the secretary may, upon the application of
11such a person or religious sect, issue a certificate of self-insurance when satisfied
12that such person or religious sect is possessed and will continue to be possessed of
13ability to pay judgments obtained against such person or religious sect.
AB649,5 14Section 5. 344.16 (2m) of the statutes is created to read:
AB649,3,1915 344.16 (2m) The secretary may issue a certificate of self-insurance under sub.
16(2) to a religious sect only if the secretary determines that the members of the
17religious sect have a long-standing history of mutual financial assistance in time of
18need to the extent that they share in financial obligations of other members who
19would otherwise be unable to meet their obligations.
AB649,6 20Section 6. 344.63 (1) (cm) of the statutes is created to read:
AB649,3,2421 344.63 (1) (cm) The motor vehicle is owned by a member of a religious sect that
22is a self-insurer holding a valid certificate of self-insurance under s. 344.16, the
23self-insurer has made an agreement described in s. 344.30 (4), and the vehicle is
24being operated with the owner's permission.
AB649,7 25Section 7. Effective date.
AB649,4,2
1(1) This act takes effect on the first day of the 3rd month beginning after
2publication.
AB649,4,33 (End)
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