AB803: Bill Text

LRB-4601/1

TNF:hmh:pg

2001 - 2002 LEGISLATURE

2001 Assembly BILL 803

February 12, 2002 - Introduced by Representatives J. Lehman, Krug, Cullen, Ryba, Gunderson, Miller and Black, cosponsored by Senators Grobschmidt, Kanavas, Decker, Plache, Roessler and Erpenbach. Referred to Committee on Transportation.

AB803,1,7 An Act to amend 165.87 (2) (a), 194.41 (1), 302.46 (1) (a), 344.15 (1), 344.15 (2) (intro.), 344.15 (4), 344.15 (5), 344.32 (1) (intro.), 344.33 (1), 344.35 (title), 344.35 (1), 344.35 (2), 344.51 (1m), 345.61 (1) (a), 345.61 (2) (c), 345.61 (3), 346.73, 814.63 (1) (c), 814.63 (2), 814.634 (1) (a), 814.635 (1) and 814.65 (1); and to create 344.10 of the statutes; relating to: assuring financial responsibility for the operation of motor vehicles, granting rule-making authority, and providing 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 $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 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 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 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 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:

AB803, s. 1 Section 1. 165.87 (2) (a) of the statutes is amended to read:

AB803,3,10 165.87 (2) (a) Whenever a court imposes a fine or forfeiture for a violation of state law or for a violation of a municipal or county ordinance except for a violation of s. 101.123 (2) (a), (am) 1., or (bm) or (5) or state laws or municipal or county ordinances involving nonmoving traffic violations, financial responsibility violations under s. 344.10 (1) (a) 2., or safety belt use violations under s. 347.48 (2m), there shall be imposed in addition a penalty assessment in an amount of 23% of the fine or forfeiture imposed. If multiple offenses are involved, the penalty assessment shall be based upon the total fine or forfeiture for all offenses. When a fine or forfeiture is suspended in whole or in part, the penalty assessment shall be reduced in proportion to the suspension.

AB803, s. 2 Section 2. 194.41 (1) of the statutes is amended to read:

AB803,4,14 194.41 (1) No permit or vehicle registration may be issued to a common motor carrier of property, contract motor carrier, or rental company, no permit or vehicle registration may remain in force to operate any motor vehicle under the authority of this chapter, and no vehicle registration may be issued or remain in force for a semitrailer unless the carrier or rental company has on file with the department and in effect an approved certificate for a policy of insurance or other written contract in such form and containing such terms and conditions as may be approved by the department issued by an insurer authorized to do a surety or automobile motor vehicle liability business in this state under which the insurer assumes the liability prescribed by this section with respect to the operation of such motor vehicles. The certificate or other contract is subject to the approval of the department and shall provide that the insurer shall be directly liable for and shall pay all damages for injuries to or for the death of persons or for injuries to or destruction of property that may be recovered against the owner or operator of any such motor vehicles by reason of the negligent operation thereof in such amount as the department may require. Liability may be restricted so as to be inapplicable to damage claims on account of injury to or destruction of property transported, but the department may require a certificate or other contract protecting the owner of the property transported by carriers from loss or damage in the amount and under the conditions as the department may require. No permit or vehicle registration may be issued to a common motor carrier of passengers by any motor vehicle, or other carrier of passengers by motor bus, except those registered in accordance with s. 341.26 (2) (a) and (d), and no permit or vehicle registration may remain in force to operate any motor vehicle unless it has on file with the department a like certificate or other contract in the form and containing the terms and conditions as may be approved by the department for the payment of damages for injuries to property and injuries to or for the death of persons, including passengers, in the amounts as the department may require.

AB803, s. 3 Section 3. 302.46 (1) (a) of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB803,5,2 302.46 (1) (a) On or after October 1, 1987, if If a court imposes a fine or forfeiture for a violation of state law or for a violation of a municipal or county ordinance except for a violation of s. 101.123 (2) (a), (am) 1., (ar), (bm), or (br) or (5) or state laws or municipal or county ordinances involving nonmoving traffic violations, financial responsibility violations under s. 344.10 (1) (a) 2., or safety belt use violations under s. 347.48 (2m), the court, in addition, shall impose a jail assessment in an amount of 1% of the fine or forfeiture imposed or $10, whichever is greater. If multiple offenses are involved, the court shall determine the jail assessment on the basis of each fine or forfeiture. If a fine or forfeiture is suspended in whole or in part, the court shall reduce the jail assessment in proportion to the suspension.

AB803, s. 4 Section 4. 344.10 of the statutes is created to read:

AB803,5,10 344.10 Compulsory financial responsibility; limits and penalties. (1) (a) 1. No person may operate a motor vehicle upon a highway in this state unless the owner or operator has in effect a motor vehicle liability policy or bond for the motor vehicle, which meets the requirements under s. 344.15, insuring against loss resulting from liability imposed by law for bodily injury, death, and property damage sustained by any person arising out of the ownership, maintenance, operation, or use of the motor vehicle.

AB803,5,16 2. No person may operate a motor vehicle upon a highway in this state unless the person has in his or her immediate possession at all times while operating the vehicle proof that he or she is in compliance with subd. 1. or that the requirements of subd. 1. do not apply to him or her. The operator of the motor vehicle shall display the proof required under this subdivision upon demand from any law enforcement officer.

AB803,5,22 (b) 1. No person charged with violating par. (a) 1. may be convicted if the person produces proof that he or she was in compliance with par. (a) 1. or that the requirements of par. (a) 1. did not apply to him or her at the time of the arrest. Such proof may be produced either at the time of the person's appearance in court in response to the uniform traffic citation, or in the office of the arresting officer within 5 days after the date of issuance of the uniform traffic citation.

AB803,6,2 2. Proof of compliance with par. (a) 1. may be evidenced by display of the motor vehicle policy or bond in effect for the motor vehicle under s. 344.15, a copy of that policy or bond, or an identification card issued to the person by the insurer indicating that the policy or bond is in effect or by display of certification of insurance under s. 344.31 or a copy of that certification.

AB803,6,5 3. The department shall promulgate a rule specifying the form of proof that may be displayed by a person under par. (c) to show that the requirements under par. (a) 1. do not apply to him or her.

AB803,6,6 (c) Paragraph (a) 1. does not apply to:

AB803,6,8 1. Any person operating a vehicle owned by a self-insurer under s. 344.16 if operating with the owner's permission.

AB803,6,10 2. Any person operating a vehicle insured as required by s. 121.53, 194.41 or 194.42 if operating with the owner's permission.

AB803,6,13 3. Any person who has filed proof of financial responsibility as provided under sub. (2) or any person operating a vehicle owned by the person who has deposited money or security if operating with the owner's permission.

AB803,6,16 4. The operator of a vehicle owned by or leased to the United States, this or another state, or any county or municipality of this or another state, if operating with the owner's or lessee's permission.

AB803,6,18 (2) Proof of financial responsibility may be evidenced by a deposit of money or securities in the amount, form, and manner specified in s. 344.37.

AB803,7,2 (3) Notwithstanding s. 349.02, a law enforcement officer may not stop or inspect a vehicle solely to determine compliance with sub. (1) (a) 1. or 2. or both or a local ordinance in conformity with sub. (1) (a) 1. or 2. or both. This subsection does not limit the authority of a law enforcement officer to issue a citation for a violation of sub. (1) (a) 1. or 2. or both or a local ordinance in conformity with sub. (1) (a) 1. or 2. or both observed in the course of a stop or inspection made for other purposes, except that a law enforcement officer may not take a person into physical custody solely for a violation of sub. (1) (a) 1. or 2. or both or a local ordinance in conformity with sub. (1) (a) 1. or 2. or both.

AB803,7,4 (4) The department shall include with each operator's license issued under ch. 343 notification of the requirements and penalties under this section.

AB803,7,5 (5) (a) Any person who violates sub. (1) (a) 1. shall forfeit not more than $500.

AB803,7,6 (b) Any person who violates sub. (1) (a) 2. may be required to forfeit $10.

AB803, s. 5 Section 5. 344.15 (1) of the statutes is amended to read:

AB803,7,17 344.15 (1) No policy or bond is effective under s. 344.10 or 344.14 unless issued by an insurer authorized to do an automobile a motor vehicle liability or surety business in this state, except as provided in sub. (2), or unless the policy or bond is subject, if the accident has resulted in bodily injury or death, to a limit, exclusive of interest and costs, of not less than $25,000 because of bodily injury to or death of one person in any one accident and, subject to that limit for one person, to a limit of not less than $50,000 because of bodily injury to or death of 2 or more persons in any one accident and, if the accident has resulted in injury to or destruction of property, to a limit of not less than $10,000 because of injury to or destruction of property of others in any one accident.

AB803, s. 6 Section 6. 344.15 (2) (intro.) of the statutes is amended to read:

AB803,7,24 344.15 (2) (intro.) A policy or bond with respect to a vehicle which was not registered in this state or was registered elsewhere at the time of the effective date of the policy or bond or the most recent renewal thereof may be effective under s. 344.10 or 344.14 even though not issued by an insurer authorized to do an automobile a motor vehicle liability or surety business in this state if the following conditions are complied with:

AB803, s. 7 Section 7. 344.15 (4) of the statutes is amended to read:

AB803,8,21 344.15 (4) After receipt of the report of an accident of the type specified in s. 344.12, the secretary may forward to the insurer named therein, that portion of the report or other notice which pertains to an automobile a motor vehicle liability policy or bond. The secretary shall assume that an automobile a motor vehicle liability policy or bond as described in this section was in effect and applied to both the owner and operator with respect to the accident unless the insurer notifies the secretary otherwise within 30 days from the mailing to the insurer of that portion of the report or other notice pertaining to the automobile motor vehicle liability policy or bond. Upon receipt of notice from the insurer that an automobile a motor vehicle liability policy or bond was in effect as to the owner only, the operator only or was not in effect as to either of them, the secretary shall within the remainder of the 90-day period specified in s. 344.13 (3) require the owner or operator or both, whichever is applicable, to deposit security pursuant to this chapter. As respects permission to operate the vehicle, the insurer may correct the report or other notice only if it files with the secretary within the 30-day period specified in this subsection an affidavit signed by the owner stating that the operator did not have the owner's permission to operate the vehicle. Where the insurer's failure to notify the secretary within 30 days of a correction in that portion of the report or other notice pertaining to an automobile a motor vehicle liability policy or bond is caused by fraud, the insurer shall notify the secretary of the correction within 30 days of the time the fraud is discovered.

AB803, s. 8 Section 8. 344.15 (5) of the statutes is amended to read:

AB803,9,5 344.15 (5) Nothing in this chapter shall be construed to impose any obligation not otherwise assumed by the insurer in its automobile motor vehicle liability policy or bond except that if no correction is made in the report or other notice within 30 days after it is mailed to the insurer, the insurer, except in case of fraud, whenever such fraud may occur, is estopped from using as a defense to its liability the insured's failure to give permission to the operator or a violation of the purposes of use specified in the automobile motor vehicle liability policy or bond or the use of the vehicle beyond agreed geographical limits.

AB803, s. 9 Section 9. 344.32 (1) (intro.) of the statutes is amended to read: