LRB-2256/2
TNF:kmg:cph
2003 - 2004 LEGISLATURE
June 5, 2003 - Introduced by Representatives J. Lehman, Black, Boyle, Colon,
Cullen, Gunderson, Krug and A. Williams, cosponsored by Senators Wirch,
Carpenter, Chvala, Plale and Robson. Referred to Committee on
Transportation.
AB384,1,7
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), 814.63 (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: 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:
AB384, s. 1
1Section
1. 85.55 of the statutes is amended to read:
AB384,3,11
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. 46.93 (1m) (c),
4to 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).
AB384, s. 2
12Section
2. 194.41 (1) of the statutes is amended to read:
AB384,4,1713
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.
AB384, s. 3
18Section
3. 302.46 (1) (a) of the statutes is amended to read:
AB384,5,419
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), or (br) or (5)
22or state laws or municipal or county ordinances involving nonmoving traffic
23violations
, financial responsibility violations under s. 344.10 (1) (a) 2., or safety belt
24use violations under s. 347.48 (2m), the court, in addition, shall impose a jail
25assessment in an amount of 1% of the fine or forfeiture imposed or $10, whichever
1is greater. If multiple offenses are involved, the court shall determine the jail
2assessment on the basis of each fine or forfeiture. If a fine or forfeiture is suspended
3in whole or in part, the court shall reduce the jail assessment in proportion to the
4suspension.
AB384, s. 4
5Section
4. 344.10 of the statutes is created to read:
AB384,5,12
6344.10 Compulsory financial responsibility; limits and penalties. (1) 7(a) 1. No person may operate a motor vehicle upon a highway in this state unless the
8owner or operator has in effect a motor vehicle liability policy or bond for the motor
9vehicle, which meets the requirements under s. 344.15, insuring against loss
10resulting from liability imposed by law for bodily injury, death, and property damage
11sustained by any person arising out of the ownership, maintenance, operation, or use
12of the motor vehicle.
AB384,5,1813
2. No person may operate a motor vehicle upon a highway in this state unless
14the person has in his or her immediate possession at all times while operating the
15vehicle proof that he or she is in compliance with subd. 1. or that the requirements
16of subd. 1. do not apply to him or her. The operator of the motor vehicle shall display
17the proof required under this subdivision upon demand from any law enforcement
18officer.
AB384,5,2419
(b) 1. No person charged with violating par. (a) 1. may be convicted if the person
20produces proof that he or she was in compliance with par. (a) 1. or that the
21requirements of par. (a) 1. did not apply to him or her at the time of the arrest. Such
22proof may be produced either at the time of the person's appearance in court in
23response to the uniform traffic citation, or in the office of the arresting officer within
245 days after the date of issuance of the uniform traffic citation.
AB384,6,5
12. Proof of compliance with par. (a) 1. may be evidenced by display of the motor
2vehicle policy or bond in effect for the motor vehicle under s. 344.15, a copy of that
3policy or bond, or an identification card issued to the person by the insurer indicating
4that the policy or bond is in effect or by display of certification of insurance under s.
5344.31 or a copy of that certification.
AB384,6,86
3. The department shall promulgate a rule specifying the form of proof that
7may be displayed by a person under par. (c) to show that the requirements under par.
8(a) 1. do not apply to him or her.
AB384,6,99
(c) Paragraph (a) 1. does not apply to any of the following:
AB384,6,1110
1. A person operating a vehicle owned by a self-insurer under s. 344.16 if
11operating with the owner's permission.
AB384,6,1312
2. A person operating a vehicle insured as required by s. 121.53, 194.41 or
13194.42 if operating with the owner's permission.
AB384,6,1614
3. A person who has filed proof of financial responsibility as provided under
15sub. (2) or a person operating a vehicle owned by the person who has deposited money
16or security if operating with the owner's permission.
AB384,6,1917
4. The operator of a vehicle owned by or leased to the United States, this or
18another state, or any county or municipality of this or another state, if operating with
19the owner's or lessee's permission.
AB384,6,21
20(2) Proof of financial responsibility may be evidenced by a deposit of money or
21securities in the amount, form, and manner specified in s. 344.37.
AB384,7,5
22(3) Notwithstanding s. 349.02, a law enforcement officer may not stop or
23inspect a vehicle solely to determine compliance with sub. (1) (a) 1. or 2. or both or
24a local ordinance in conformity with sub. (1) (a) 1. or 2. or both. This subsection does
25not limit the authority of a law enforcement officer to issue a citation for a violation
1of sub. (1) (a) 1. or 2. or both or a local ordinance in conformity with sub. (1) (a) 1. or
22. or both observed in the course of a stop or inspection made for other purposes,
3except that a law enforcement officer may not take a person into physical custody
4solely for a violation of sub. (1) (a) 1. or 2. or both or a local ordinance in conformity
5with sub. (1) (a) 1. or 2. or both.
AB384,7,7
6(4) The department shall include with each operator's license issued under ch.
7343 notification of the requirements and penalties under this section.
AB384,7,8
8(5) (a) Any person who violates sub. (1) (a) 1. shall forfeit not more than $500.
AB384,7,99
(b) Any person who violates sub. (1) (a) 2. may be required to forfeit $10.
AB384, s. 5
10Section
5. 344.15 (1) of the statutes is amended to read:
AB384,7,2011
344.15
(1) No policy or bond is effective under s.
344.10 or 344.14 unless issued
12by an insurer authorized to do
an automobile a motor vehicle liability or surety
13business in this state, except as provided in sub. (2), or unless the policy or bond is
14subject, if the accident has resulted in bodily injury or death, to a limit, exclusive of
15interest and costs, of not less than $25,000 because of bodily injury to or death of one
16person in any one accident and, subject to that limit for one person, to a limit of not
17less than $50,000 because of bodily injury to or death of 2 or more persons in any one
18accident and, if the accident has resulted in injury to or destruction of property, to
19a limit of not less than $10,000 because of injury to or destruction of property of
20others in any one accident.
AB384, s. 6
21Section
6. 344.15 (2) (intro.) of the statutes is amended to read:
AB384,8,222
344.15
(2) (intro.) A policy or bond with respect to a vehicle which was not
23registered in this state or was registered elsewhere at the time of the effective date
24of the policy or bond or the most recent renewal thereof may be effective under s.
25344.10 or 344.14 even though not issued by an insurer authorized to do
an automobile
1a motor vehicle liability or surety business in this state if the following conditions are
2complied with:
AB384, s. 7
3Section
7. 344.15 (4) of the statutes is amended to read:
AB384,8,244
344.15
(4) After receipt of the report of an accident of the type specified in s.
5344.12, the secretary may forward to the insurer named therein, that portion of the
6report or other notice which pertains to
an automobile
a motor vehicle liability policy
7or bond. The secretary shall assume that
an automobile a motor vehicle liability
8policy or bond as described in this section was in effect and applied to both the owner
9and operator with respect to the accident unless the insurer notifies the secretary
10otherwise within 30 days from the mailing to the insurer of that portion of the report
11or other notice pertaining to the
automobile motor vehicle liability policy or bond.
12Upon receipt of notice from the insurer that
an automobile a motor vehicle liability
13policy or bond was in effect as to the owner only, the operator only or was not in effect
14as to either of them, the secretary shall within the remainder of the 90-day period
15specified in s. 344.13 (3) require the owner or operator or both, whichever is
16applicable, to deposit security pursuant to this chapter. As respects permission to
17operate the vehicle, the insurer may correct the report or other notice only if it files
18with the secretary within the 30-day period specified in this subsection an affidavit
19signed by the owner stating that the operator did not have the owner's permission
20to operate the vehicle. Where the insurer's failure to notify the secretary within 30
21days of a correction in that portion of the report or other notice pertaining to
an
22automobile a motor vehicle liability policy or bond is caused by fraud, the insurer
23shall notify the secretary of the correction within 30 days of the time the fraud is
24discovered.
AB384, s. 8
25Section
8. 344.15 (5) of the statutes is amended to read:
AB384,9,8
1344.15
(5) Nothing in this chapter shall be construed to impose any obligation
2not otherwise assumed by the insurer in its
automobile
motor vehicle liability policy
3or bond except that if no correction is made in the report or other notice within 30
4days after it is mailed to the insurer, the insurer, except in case of fraud, whenever
5such fraud may occur, is stopped from using as a defense to its liability the insured's
6failure to give permission to the operator or a violation of the purposes of use specified
7in the
automobile motor vehicle liability policy or bond or the use of the vehicle
8beyond agreed geographical limits.
AB384, s. 9
9Section
9. 344.32 (1) (intro.) of the statutes is amended to read:
AB384,9,1610
344.32
(1) (intro.) A nonresident may give proof of financial responsibility by
11filing with the secretary a written certification of an insurer authorized to transact
12an automobile a motor vehicle liability or surety business in the state in which the
13person resides or by transmitting such certification to the secretary by another
14means approved by the secretary, provided the certification otherwise conforms to
15this chapter. The secretary shall accept the certification if the insurer complies with
16the following with respect to the policies so certified:
AB384, s. 10
17Section
10. 344.33 (1) of the statutes is amended to read:
AB384,9,2318
344.33
(1) Certification. In
this chapter ss. 344.30 to 344.34, "motor vehicle
19liability policy" means a motor vehicle policy of liability insurance, certified as
20provided in s. 344.31 or 344.32 as proof of financial responsibility for the future, and
21issued, except as otherwise provided in s. 344.32, by an insurer authorized to do
an
22automobile a motor vehicle liability business in this state to or for the benefit of the
23person named in the policy as the insured.
AB384, s. 11
24Section
11. 344.35 (title) of the statutes is amended to read:
AB384,9,25
25344.35 (title)
This chapter
Section 344.33 not to affect other policies.
AB384, s. 12
1Section
12. 344.35 (1) of the statutes is amended to read:
AB384,10,62
344.35
(1) This chapter Section 344.33 does not apply to or affect policies of
3automobile motor vehicle insurance against liability which may now or hereafter be
4required by any other law of this state. If such policies contain an agreement or are
5endorsed to conform to the requirements of
this chapter s. 344.33, they may be
6certified as proof of financial responsibility under this chapter.