REFERENCE TITLE: motor vehicle insurance

 

 

 

 

State of Arizona

Senate

Forty-ninth Legislature

Second Regular Session

2010

 

 

SB 1244

 

Introduced by

Senator Pearce R; Representatives Crandall, Gowan: Senators Allen S, Gould, Melvin, Verschoor; Representatives Kavanagh, Montenegro

 

 

AN ACT

 

amending sections 28‑4135, 28‑4141, 28‑4144, 28‑4149 and 28‑4153, Arizona Revised Statutes; relating to mandatory motor vehicle insurance.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 



Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 28-4135, Arizona Revised Statutes, is amended to read:

START_STATUTE28-4135.  Motor vehicle financial responsibility requirement; civil penalties

A.  A motor vehicle that is operated on a highway in this state shall be covered by one of the following:

1.  A motor vehicle or automobile liability policy that provides limits not less than those prescribed in section 28‑4009.

2.  An alternate method of coverage as provided in section 28‑4076.

3.  A certificate of self‑insurance as prescribed in section 28‑4007.

4.  A policy that satisfies the financial responsibility requirements prescribed in article 2 of this chapter.

B.  A person operating a motor vehicle on a highway in this state shall have evidence within the motor vehicle of current financial responsibility applicable to the motor vehicle.

C.  Failure to produce evidence of financial responsibility on the request of a law enforcement officer investigating a motor vehicle accident or an alleged violation of a motor vehicle law of this state or a traffic ordinance of a city or town is a civil traffic violation that is punishable as prescribed in this section.

D.  A citation issued for violating subsection B or C of this section shall be dismissed if the person to whom the citation was issued produces evidence to the appropriate court officer on or before the date and time specified on the citation for court appearance and in a manner specified by the court, including the certification of evidence by mail, of either of the following:

1.  The financial responsibility requirements prescribed in this section were met for the motor vehicle at the date and time the citation was issued.

2.  A motor vehicle or automobile liability policy that meets the financial responsibility requirements of this state and that insured the person and the motor vehicle the person was operating at the time the person received the citation regardless of whether or not the motor vehicle was named in the policy.

E.  Except as provided in section 28‑4137, a person who violates this section is subject to a civil penalty as follows:

1.  The court shall impose a minimum civil penalty of five hundred dollars for the first violation.  On receipt of the abstract of the record of judgment, the department shall suspend the driver license of the person and the registration and license plates of the motor vehicle involved for three months.

2.  If a person violates this section a second time within a period of thirty‑six months, the court shall impose a minimum civil penalty of seven hundred fifty dollars.  On receipt of the abstract of the record of judgment, the department shall suspend the driver license of the person and the registration and license plates of the motor vehicle involved for six months.

3.  If a person violates this section three or more times within a period of thirty‑six months, the court shall impose a minimum civil penalty of one thousand dollars.  On receipt of the abstract of the record of judgment, the department shall suspend the driver license of the person and the registration and license plates of the motor vehicle involved for one year.  The department shall require on reinstatement of the driver license, the registration and the license plates that the person file with the department proof of financial responsibility in accordance with article 3 of this chapter.  The person is not required to have an SR‑22 motor vehicle liability policy. END_STATUTE

Sec. 2.  Section 28-4141, Arizona Revised Statutes, is amended to read:

START_STATUTE28-4141.  Suspension of license, registration and license plates

A.  On imposing a civil penalty for a violation of this article, the court may, if the violation is the first violation within a thirty‑six month period, and shall, if the violation is a second or subsequent violation within a thirty‑six month period, order the surrender of the person's driver license.

B.  If a suspension is ordered, the court shall direct the department to suspend the driver license of the person and the registration and license plate of the motor vehicle involved for the time provided in section 28‑4135.

C.  If the person is a nonresident, the court shall direct the department to suspend the nonresident operating privilege of the person and notify the official in charge of issuance of driver licenses in the state where the nonresident resides of the suspension of the person's nonresident operating privilege.

D.  Registration and license plates that have been suspended on imposition of a civil penalty for a violation of this article:

1.  Remain suspended for the period for which the suspension was issued.

2.  On completion of the suspension period, remain suspended until the registered owner both:

(a)  Provides proof of financial responsibility pursuant to article 3 of this chapter for the owner's motor vehicle to the department.  The registered owner is not required to have an SR‑22 motor vehicle liability policy.

(b)  Pays a fee of twenty‑five dollars to the department.

E.  A person's driver license that has been suspended on imposition of a civil penalty for a violation of this article:

1.  Remains suspended for the period for which the suspension was issued.

2.  On completion of the suspension period, remains suspended until the person both:

(a)  Provides proof of financial responsibility pursuant to article 3 of this chapter to the department.  The person is not required to have an SR‑22 motor vehicle liability policy.

(b)  Pays a ten dollar fee to the department.

F.  A person whose driver license, motor vehicle registration or nonresident driving privilege is suspended pursuant to a civil penalty for a violation of this article is not entitled to a hearing on the suspension before the department but is entitled to a hearing for a restricted license as provided in section 28‑4145.END_STATUTE

Sec. 3.  Section 28-4144, Arizona Revised Statutes, is amended to read:

START_STATUTE28-4144.  Notice; suspension; reinstatement fees

A.  If the owner's response to a mailing pursuant to section 28‑4143 indicates that the motor vehicle does not meet the financial responsibility requirement of section 28‑4135 or section 28‑4033, subsection A, paragraph 2, subdivision (c), the department shall send a suspension notice to the owner that states:

1.  The motor vehicle does not meet the financial responsibility requirements.

2.  The owner's driver license and motor vehicle registration will be suspended fifteen days after the date the suspension notice is mailed and, if the owner is required to comply with section 28‑4033, subsection A, paragraph 2, subdivision (c), that the registration of all motor vehicles that are registered to the owner and that do not meet the financial responsibility requirements will be suspended fifteen days after the date the notice is mailed unless either:

(a)  The owner produces additional evidence to the department on or before the effective date of the suspension that the financial responsibility requirement of section 28‑4135 or section 28‑4033, subsection A, paragraph 2, subdivision (c) was met for the vehicle on the date of the accident.

(b)  The owner requests a hearing.

B.  If a response is not received within thirty days after the date the original notice requiring proof of financial responsibility is mailed, the department shall:

1.  Send a suspension notice to the owner that the owner's driver license and motor vehicle registration or registration privilege will be suspended fifteen days after the date the suspension notice is mailed and, if the owner is required to comply with section 28‑4033, subsection A, paragraph 2, subdivision (c), that the registration of all motor vehicles that are registered to the owner and that do not meet the financial responsibility requirements will be suspended fifteen days after the date the notice is mailed unless the owner submits evidence of financial responsibility or proof that the vehicle was sold pursuant to section 28‑4143 before the effective date of the suspension.

2.  If a response or evidence of financial responsibility or proof of vehicle sale pursuant to section 28‑4143 is not received within the required time, suspend the motor vehicle registration or registration privilege, license plate and driver license.

3.  If there is no other basis for the suspension and evidence of financial responsibility or evidence of vehicle sale is later submitted, verify the evidence of financial responsibility or sale pursuant to section 28‑4143 and remove the suspension from the public record if financial responsibility is proven.

C.  Except as provided in subsection B of this section, if the motor vehicle registration, registration privilege, license plate or driver license is suspended pursuant to section 28‑4143 or this section:

1.  The suspension is for a minimum of one year.

2.  The department shall not terminate the suspension until the applicant both:

(a)  Files with the department proof of financial responsibility in accordance with article 3 of this chapter.  The applicant is not required to have an SR‑22 motor vehicle liability policy.

(b)  Pays to the department a ten dollar fee for the reinstatement of the driver license and a twenty‑five dollar fee for the reinstatement of the motor vehicle registration and license plate, except that these fees do not apply to a suspension removed pursuant to subsection B of this section or to a suspension applicable to a person who is required to comply with the financial responsibility requirements prescribed in article 2 of this chapter unless the person was required to comply with the financial responsibility requirements prescribed in section 28‑4033, subsection A, paragraph 2, subdivision (c). END_STATUTE

Sec. 4.  Section 28-4149, Arizona Revised Statutes, is amended to read:

START_STATUTE28-4149.  Suspension; notice of intent

A.  If the department determines from information provided by an insurer or department records that a motor vehicle liability policy has been cancelled or has not been renewed as provided in section 28‑4148 and pursuant to a schedule prescribed by the director, the department shall send the registered owner or lessee a notice of intent to suspend the license plate and registration of the vehicle.

B.  On receiving evidence of financial responsibility as prescribed in this article, the department shall immediately delete the cancellation or nonrenewal from the record.

C.  If the registered owner or lessee fails to provide evidence of financial responsibility as prescribed in this section within fifteen days of the mailing date of the notice of intent to suspend the registration and license plate of the vehicle, the department shall notify the owner or lessee that the license plate and registration of the vehicle have been suspended. If the owner or lessee at a later date provides evidence that liability insurance coverage meeting the requirements of this article was in effect before the effective date of the suspension or provides evidence of compliance with section 28‑4152 before the effective date of the suspension, the department shall void the suspension.

D.  If the owner's or lessee's motor vehicle registration privilege and license plate are suspended, the department shall not terminate the suspension, except as provided in subsection C of this section, until proof of financial responsibility pursuant to article 3 of this chapter is filed with the department.  The owner or lessee is not required to have an SR‑22 motor vehicle liability policy. END_STATUTE

Sec. 5.  Section 28-4153, Arizona Revised Statutes, is amended to read:

START_STATUTE28-4153.  False certification or affirmation; violation; classification; suspension; fees

A.  A person who makes a false certification or affirms falsely to any matter or thing required by section 28‑4152 to be certified or affirmed is guilty of a class 2 misdemeanor.

B.  If the department has reasonable grounds to believe the registered owner of a motor vehicle registered in this state has falsely certified or affirmed any matter or thing required by section 28‑4152, the department shall:

1.  Suspend the registered owner's motor vehicle registration, license plate and driver license for a period of one year.

2.  Send notice to the registered owner that the motor vehicle registration, license plate and driver license will be suspended fifteen days after the date the notice was mailed unless a hearing is requested.

C.  The department shall not terminate the suspension until the applicant both:

1.  Files with the department proof of financial responsibility pursuant to article 3 of this chapter.  The applicant is not required to have an SR‑22 motor vehicle liability policy.

2.  Pays ten dollars to the department for the reinstatement of the driver license and twenty‑five dollars for the reinstatement of the motor vehicle registration and license plate. END_STATUTE