LRB-3780/1
TNF:mfd:km
1997 - 1998 LEGISLATURE
September 18, 1997 - Introduced by Senators Moen, Jauch, Burke, Decker,
Plache, Grobschmidt, Roessler, A. Lasee, Weeden and Rosenzweig,
cosponsored by Representatives
Johnsrud, Baumgart, Ryba, Turner, J.
Lehman, Ainsworth and
Boyle. Referred to Committee on Labor,
Transportation and Financial Institutions.
SB306,1,7
1An Act to amend 165.87 (2) (a), 194.41 (1), 302.46 (1) (a), 344.15 (1), 344.15 (2)
2(intro.), 344.15 (4), 344.15 (5), 344.32 (1) (intro.), 344.33 (1), 344.35 (title),
3344.35 (1), 344.35 (2), 344.51 (1), 345.61 (1) (a), 345.61 (2) (c), 345.61 (3), 346.73,
4814.63 (1) (c), 814.63 (2), 814.634 (1) (a), 814.635 (1) and 814.65 (1); and
to
5create 344.10 of the statutes;
relating to: assuring financial responsibility for
6the operation of motor vehicles, granting rule-making authority and providing
7a 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 $500 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 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 revocation 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 revocation 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 3 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
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. Any
person convicted of failing to assure financial responsibility for the operation of a
motor vehicle shall forfeit not more than $500.
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.
The bill also requires any person operating a motor vehicle upon a highway in
this state to carry proof that financial responsibility for the operation of the vehicle
has been assured or 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 vehicle operator has assured
financial responsibility for the operation of the vehicle or is in compliance with the
requirement of carrying proof with respect to financial responsibility.
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:
SB306, s. 1
1Section
1. 165.87 (2) (a) of the statutes is amended to read:
SB306,3,10
1165.87
(2) (a) Whenever a court imposes a fine or forfeiture for a violation of
2state law or for a violation of a municipal or county ordinance except for a violation
3of s. 101.123 (2) (a), (am) 1. or (bm) or (5) or state laws or municipal or county
4ordinances involving nonmoving traffic violations
, financial responsibility violations
5under s. 344.10 (1) (a) 2. or safety belt use violations under s. 347.48 (2m), there shall
6be imposed in addition a penalty assessment in an amount of 23% of the fine or
7forfeiture imposed. If multiple offenses are involved, the penalty assessment shall
8be based upon the total fine or forfeiture for all offenses. When a fine or forfeiture
9is suspended in whole or in part, the penalty assessment shall be reduced in
10proportion to the suspension.
SB306, s. 2
11Section
2. 194.41 (1) of the statutes is amended to read:
SB306,4,1412
194.41
(1) No permit or vehicle registration may be issued to a common motor
13carrier of property, contract motor carrier or rental company, no permit or vehicle
14registration may remain in force to operate any motor vehicle under the authority
15of this chapter and no vehicle registration may be issued or remain in force for a
16semitrailer unless the carrier or rental company has on file with the department and
17in effect an approved certificate for a policy of insurance or other written contract in
18such form and containing such terms and conditions as may be approved by the
19department issued by an insurer authorized to do a surety or
automobile motor
20vehicle liability business in this state under which the insurer assumes the liability
21prescribed by this section with respect to the operation of such motor vehicles. The
22certificate or other contract is subject to the approval of the department and shall
23provide that the insurer shall be directly liable for and shall pay all damages for
24injuries to or for the death of persons or for injuries to or destruction of property that
25may be recovered against the owner or operator of any such motor vehicles by reason
1of the negligent operation thereof in such amount as the department may require.
2Liability may be restricted so as to be inapplicable to damage claims on account of
3injury to or destruction of property transported, but the department may require a
4certificate or other contract protecting the owner of the property transported by
5carriers from loss or damage in the amount and under the conditions as the
6department may require. No permit or vehicle registration may be issued to a
7common motor carrier of passengers by any motor vehicle, or other carrier of
8passengers by motor bus, except those registered in accordance with s. 341.26 (2) (a)
9and (d), and no permit or vehicle registration may remain in force to operate any
10motor vehicle unless it has on file with the department a like certificate or other
11contract in the form and containing the terms and conditions as may be approved by
12the department for the payment of damages for injuries to property and injuries to
13or for the death of persons, including passengers, in the amounts as the department
14may require.
SB306, s. 3
15Section
3. 302.46 (1) (a) of the statutes is amended to read:
SB306,4,2516
302.46
(1) (a)
On or after October 1, 1987, if If a court imposes a fine or forfeiture
17for a violation of state law or for a violation of a municipal or county ordinance except
18for a violation of s. 101.123 (2) (a), (am) 1. or (bm) or (5) or state laws or municipal
19or county ordinances involving nonmoving traffic violations
, financial responsibility
20violations under s. 344.10 (1) (a) 2. or safety belt use violations under s. 347.48 (2m),
21the court, in addition, shall impose a jail assessment in an amount of 1% of the fine
22or forfeiture imposed or $10, whichever is greater. If multiple offenses are involved,
23the court shall determine the jail assessment on the basis of each fine or forfeiture.
24If a fine or forfeiture is suspended in whole or in part, the court shall reduce the jail
25assessment in proportion to the suspension.
SB306, s. 4
1Section
4. 344.10 of the statutes is created to read:
SB306,5,8
2344.10 Compulsory financial responsibility; limits and penalties. (1) 3(a) 1. No person may operate a motor vehicle upon a highway in this state unless the
4owner or operator has in effect a motor vehicle liability policy or bond for the motor
5vehicle, which meets the requirements under s. 344.15, insuring against loss
6resulting from liability imposed by law for bodily injury, death and property damage
7sustained by any person arising out of the ownership, maintenance, operation or use
8of the motor vehicle.
SB306,5,139
2. No person may operate a motor vehicle upon a highway in this state unless
10the person has in his or her immediate possession at all times while operating the
11vehicle proof that he or she is in compliance with subd. 1. or that the requirements
12of subd. 1. do not apply to him or her, and shall display the proof upon demand from
13any law enforcement officer.
SB306,5,1914
(b) 1. No person charged with violating par. (a) 1. may be convicted if the person
15produces proof that he or she was in compliance with par. (a) 1. or that the
16requirements of par. (a) 1. did not apply to him or her at the time of the arrest. Such
17proof may be produced either at the time of the person's appearance in court in
18response to the uniform traffic citation, or in the office of the arresting officer within
195 days after the date of issuance of the uniform traffic citation.
SB306,5,2420
2. Proof of compliance with par. (a) 1. may be evidenced by display of the motor
21vehicle policy or bond in effect for the motor vehicle under s. 344.15, a copy of that
22policy or bond or an identification card issued to the person by the insurer indicating
23that the policy or bond is in effect or by display of certification of insurance under s.
24344.31 or a copy of that certification.
SB306,6,3
13. The department shall promulgate a rule specifying the form of proof that
2may be displayed by a person under par. (c) to show that the requirements under par.
3(a) 1. do not apply to him or her.
SB306,6,44
(c) Paragraph (a) 1. does not apply to:
SB306,6,65
1. Any person operating a vehicle owned by a self-insurer under s. 344.16 if
6operating with the owner's permission.
SB306,6,87
2. Any person operating a vehicle insured as required by s. 121.53, 194.41 or
8194.42 if operating with the owner's permission.
SB306,6,119
3. Any person who has filed proof of financial responsibility as provided under
10sub. (2) or to any person operating a vehicle owned by the person who has deposited
11money or security if operating with the owner's permission.
SB306,6,1412
4. The operator of a vehicle owned by or leased to the United States, this or
13another state or any county or municipality of this or another state if operating with
14the owner's or lessee's permission.
SB306,6,16
15(2) Proof of financial responsibility may be evidenced by a deposit of money or
16securities in the amount, form and manner specified in s. 344.37.
SB306,6,25
17(3) Notwithstanding s. 349.02, a law enforcement officer may not stop or
18inspect a vehicle solely to determine compliance with sub. (1) (a) 1. or 2. or both or
19a local ordinance in conformity with sub. (1) (a) 1. or 2. or both. This subsection does
20not limit the authority of a law enforcement officer to issue a citation for a violation
21of sub. (1) (a) 1. or 2. or both or a local ordinance in conformity with sub. (1) (a) 1. or
222. or both observed in the course of a stop or inspection made for other purposes,
23except that a law enforcement officer may not take a person into physical custody
24solely for a violation of sub. (1) (a) 1. or 2. or both or a local ordinance in conformity
25with sub. (1) (a) 1. or 2. or both.
SB306,7,2
1(4) The department shall include with each operator's license issued under ch.
2343 notification of the requirements and penalties under this section.
SB306,7,3
3(5) (a) Any person who violates sub. (1) (a) 1. shall forfeit not more than $500.
SB306,7,44
(b) Any person who violates sub. (1) (a) 2. may be required to forfeit $10.
SB306, s. 5
5Section
5. 344.15 (1) of the statutes is amended to read:
SB306,7,156
344.15
(1) No policy or bond is effective under s.
344.10 or 344.14 unless issued
7by an insurer authorized to do
an automobile a motor vehicle liability or surety
8business in this state, except as provided in sub. (2), or unless the policy or bond is
9subject, if the accident has resulted in bodily injury or death, to a limit, exclusive of
10interest and costs, of not less than $25,000 because of bodily injury to or death of one
11person in any one accident and, subject to that limit for one person, to a limit of not
12less than $50,000 because of bodily injury to or death of 2 or more persons in any one
13accident and, if the accident has resulted in injury to or destruction of property, to
14a limit of not less than $10,000 because of injury to or destruction of property of
15others in any one accident.
SB306, s. 6
16Section
6. 344.15 (2) (intro.) of the statutes is amended to read:
SB306,7,2217
344.15
(2) (intro.) A policy or bond with respect to a vehicle which was not
18registered in this state or was registered elsewhere at the time of the effective date
19of the policy or bond or the most recent renewal thereof may be effective under s.
20344.10 or 344.14 even though not issued by an insurer authorized to do
an automobile 21a motor vehicle liability or surety business in this state if the following conditions are
22complied with:
SB306, s. 7
23Section
7. 344.15 (4) of the statutes is amended to read:
SB306,8,1924
344.15
(4) After receipt of the report of an accident of the type specified in s.
25344.12, the secretary may forward to the insurer named therein, that portion of the
1report or other notice which pertains to
an automobile a motor vehicle liability policy
2or bond. The secretary shall assume that
an automobile a motor vehicle liability
3policy or bond as described in this section was in effect and applied to both the owner
4and operator with respect to the accident unless the insurer notifies the secretary
5otherwise within 30 days from the mailing to the insurer of that portion of the report
6or other notice pertaining to the
automobile motor vehicle liability policy or bond.
7Upon receipt of notice from the insurer that
an automobile a motor vehicle liability
8policy or bond was in effect as to the owner only, the operator only or was not in effect
9as to either of them, the secretary shall within the remainder of the 90-day period
10specified in s. 344.13 (3) require the owner or operator or both, whichever is
11applicable, to deposit security pursuant to this chapter. As respects permission to
12operate the vehicle, the insurer may correct the report or other notice only if it files
13with the secretary within the 30-day period specified in this subsection an affidavit
14signed by the owner stating that the operator did not have the owner's permission
15to operate the vehicle. Where the insurer's failure to notify the secretary within 30
16days of a correction in that portion of the report or other notice pertaining to
an
17automobile a motor vehicle liability policy or bond is caused by fraud, the insurer
18shall notify the secretary of the correction within 30 days of the time the fraud is
19discovered.
SB306, s. 8
20Section
8. 344.15 (5) of the statutes is amended to read:
SB306,9,321
344.15
(5) Nothing in this chapter shall be construed to impose any obligation
22not otherwise assumed by the insurer in its
automobile
motor vehicle liability policy
23or bond except that if no correction is made in the report or other notice within 30
24days after it is mailed to the insurer, the insurer, except in case of fraud, whenever
25such fraud may occur, is estopped from using as a defense to its liability the insured's
1failure to give permission to the operator or a violation of the purposes of use specified
2in the
automobile motor vehicle liability policy or bond or the use of the vehicle
3beyond agreed geographical limits.
SB306, s. 9
4Section
9. 344.32 (1) (intro.) of the statutes is amended to read:
SB306,9,115
344.32
(1) (intro.) A nonresident may give proof of financial responsibility by
6filing with the secretary a written certification of an insurer authorized to transact
7an automobile a motor vehicle liability or surety business in the state in which the
8person resides or by transmitting such certification to the secretary by another
9means approved by the secretary, provided the certification otherwise conforms to
10this chapter. The secretary shall accept the certification if the insurer complies with
11the following with respect to the policies so certified:
SB306, s. 10
12Section
10. 344.33 (1) of the statutes is amended to read:
SB306,9,1813
344.33
(1) Certification. In
this chapter ss. 344.30 to 344.34, "motor vehicle
14liability policy" means a motor vehicle policy of liability insurance, certified as
15provided in s. 344.31 or 344.32 as proof of financial responsibility for the future, and
16issued, except as otherwise provided in s. 344.32, by an insurer authorized to do
an
17automobile a motor vehicle liability business in this state to or for the benefit of the
18person named in the policy as the insured.
SB306, s. 11
19Section
11. 344.35 (title) of the statutes is amended to read:
SB306,9,20
20344.35 (title)
This chapter
Section 344.33 not to affect other policies.
SB306, s. 12
21Section
12. 344.35 (1) of the statutes is amended to read:
SB306,9,2422
344.35
(1) This chapter Section 344.33 does not apply to or affect policies of
23automobile motor vehicle insurance against liability which may now or hereafter be
24required by any other law of this state. If such policies contain an agreement or are
1endorsed to conform to the requirements of
this chapter s. 344.33, they may be
2certified as proof of financial responsibility under this chapter.
SB306, s. 13
3Section
13. 344.35 (2) of the statutes is amended to read:
SB306,10,74
344.35
(2) This chapter Section 344.33 does not apply to or affect policies
5insuring solely the insured named in the policy against liability resulting from the
6maintenance or use by persons in the insured's employ or on the insured's behalf of
7motor vehicles not owned by the insured.
SB306, s. 14
8Section
14. 344.51 (1) of the statutes is amended to read:
SB306,10,199
344.51
(1) No person may for compensation rent or lease any motor vehicle to
10be operated by or with the consent of the person renting or leasing the vehicle unless
11there is filed with the department a good and sufficient bond or policy of insurance
12issued by an insurer authorized to do
an automobile
a motor vehicle liability
13insurance or surety business in this state. The bond, policy or certificate shall
14provide that the insurer which issued it will be liable for damages caused by the
15negligent operation of the motor vehicle in the amounts set forth in s. 344.01 (2) (d).
16No person complying with this subsection, and no person acquiring an interest in any
17contract for the rental or leasing of a motor vehicle for which any other person has
18complied with this subsection, is liable for damages caused by the negligent
19operation of the motor vehicle by another person.
SB306, s. 15
20Section
15. 345.61 (1) (a) of the statutes is amended to read:
SB306,11,221
345.61
(1) (a) Any domestic or foreign surety company which has qualified to
22transact surety business in this state may, in any year, become surety in an amount
23not to exceed $200 with respect to any guaranteed arrest bond certificates issued in
24such year by an automobile club, association or by an insurance company authorized
1to write
automobile motor vehicle liability insurance within this state, by filing with
2the commissioner of insurance an undertaking thus to become surety.
SB306, s. 16
3Section
16. 345.61 (2) (c) of the statutes is amended to read:
SB306,11,154
345.61
(2) (c) "Guaranteed arrest bond certificate" as used in this section means
5any printed card or other certificate issued by an automobile club, association or
6insurance company to any of its members or insureds, which card or certificate is
7signed by the member or insureds and contains a printed statement that the
8automobile club, association or insurance company and a surety company, or an
9insurance company authorized to transact both
automobile motor vehicle liability
10insurance and surety business, guarantee the appearance of the persons whose
11signature appears on the card or certificate and that they will in the event of failure
12of the person to appear in court at the time of trial, pay any fine or forfeiture imposed
13on the person, including the penalty assessment required by s. 165.87 and the jail
14assessment required by s. 302.46 (1), in an amount not exceeding $200, or $1,000 as
15provided in sub. (1) (b).
SB306, s. 17
16Section
17. 345.61 (3) of the statutes is amended to read:
SB306,12,1117
345.61
(3) Any guaranteed arrest bond certificate with respect to which a
18surety company has become surety, or a guaranteed arrest bond certificate issued by
19an insurance company authorized to transact both
automobile motor vehicle liability
20insurance and surety business within this state as herein provided, shall, when
21posted by the person whose signature appears thereon, be accepted in lieu of cash bail
22or other bond in an amount not to exceed $200, or $1,000 as provided in sub. (1) (b),
23as a bail bond, to guarantee the appearance of such person in any court in this state,
24including all municipal courts in this state, at such time as may be required by such
25court, when the person is arrested for violation of any vehicle law of this state or any
1motor vehicle ordinance of any county or municipality in this state except for the
2offense of driving under the influence of intoxicating liquors or of drugs or for any
3felony committed prior to the date of expiration shown on such guaranteed arrest
4bond certificates; provided, that any such guaranteed arrest bond certificates so
5posted as bail bond in any court in this state shall be subject to the forfeiture and
6enforcement provisions with respect to bail bonds in criminal cases as otherwise
7provided by law or as hereafter may be provided by law, and that any such
8guaranteed arrest bond certificate posted as a bail bond in any municipal court of this
9state shall be subject to the forfeiture and enforcement provisions, if any, of the
10charter or ordinance of the particular county or municipality pertaining to bail bonds
11posted.
SB306, s. 18
12Section
18. 346.73 of the statutes is amended to read:
SB306,12,22
13346.73 Accident reports not to be used in trial. Notwithstanding s. 346.70
14(4) (f), accident reports required to be filed with or transmitted to the department or
15a county or municipal authority shall not be used as evidence in any judicial trial,
16civil or criminal, arising out of an accident, except that such reports may be used as
17evidence in
a trial for a violation of s. 344.10 or in any administrative proceeding
18conducted by the department. The department shall furnish upon demand of any
19person who has or claims to have made such a report, or upon demand of any court,
20a certificate showing that a specified accident report has or has not been made to the
21department solely to prove a compliance or a failure to comply with the requirement
22that such a report be made to the department.
SB306, s. 19
23Section
19. 814.63 (1) (c) of the statutes is amended to read:
SB306,13,3
1814.63
(1) (c) This subsection does not apply to an action for a violation of s.
2101.123 (2) (a), (am) 1. or (bm) or (5)
, a financial responsibility violation under s.
3344.10 (1) (a) 2. or a safety belt use violation under s. 347.48 (2m).
SB306, s. 20
4Section
20. 814.63 (2) of the statutes is amended to read:
SB306,13,115
814.63
(2) Upon the disposition of a forfeiture action in circuit court for
6violation of a county, town, city, village, town sanitary district or public inland lake
7protection and rehabilitation district ordinance, except an action for
a financial
8responsibility violation under s. 344.10 (1) (a) 2. or a safety belt use violation under
9s. 347.48 (2m), the county, town, city, village, town sanitary district or public inland
10lake protection and rehabilitation district shall pay a nonrefundable fee of $5 to the
11clerk of circuit court.
SB306, s. 21
12Section
21. 814.634 (1) (a) of the statutes is amended to read:
SB306,13,1713
814.634
(1) (a) Except for an action for
a financial responsibility violation
14under s. 344.10 (1) (a) 2. or a safety belt use violation under s. 347.48 (2m), the clerk
15of circuit court shall charge and collect a $40 court support services fee from any
16person, including any governmental unit as defined in s. 108.02 (17), paying a fee
17under s. 814.61 (1) (a), (3) or (8) (am) or 814.63 (1).
SB306, s. 22
18Section
22. 814.635 (1) of the statutes is amended to read:
SB306,13,2419
814.635
(1) Except for an action for
a financial responsibility violation under
20s. 344.10 (1) (a) 2. or a safety belt use violation under s. 347.48 (2m), the clerk of
21circuit court shall charge and collect a $5 justice information system fee from any
22person, including any governmental unit as defined in s. 108.02 (17), paying a fee
23under s. 814.61 (1) (a), (3) or (8) (am), 814.62 (1), (2) or (3) (a) or (b) or 814.63 (1). The
24justice information system fee is in addition to the other fees listed in this section.
SB306, s. 23
25Section
23. 814.65 (1) of the statutes is amended to read: