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S1017...................................................by JUDICIARY AND RULES
MOTOR VEHICLES - INSURANCE - Amends existing law to provide that the failure
to insure a motor vehicle shall constitute a misdemeanor; to provide enhanced
penalties for a second or subsequent violation; to provide for an order of
restitution in certain instances; to provide for cancellation of vehicle
registration upon a conviction or finding of guilt for a violation; and to
provide notice to the owner of the vehicle if the person convicted or found
guilty is not the owner.
01/21 Senate intro - 1st rdg - to printing
01/22 Rpt prt - to Jud
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE SENATE
SENATE BILL NO. 1017
BY JUDICIARY AND RULES COMMITTEE
1 AN ACT
2 RELATING TO MOTOR VEHICLE INSURANCE; AMENDING SECTION 49-1229, IDAHO CODE, TO
3 PROVIDE THAT FAILURE TO INSURE A MOTOR VEHICLE SHALL CONSTITUTE A MISDE-
4 MEANOR, TO PROVIDE ENHANCED PENALTIES FOR A SECOND OR SUBSEQUENT VIOLA-
5 TION, TO PROVIDE FOR AN ORDER OF RESTITUTION IN CERTAIN INSTANCES, TO PRO-
6 VIDE FOR CANCELLATION OF VEHICLE REGISTRATION UPON A CONVICTION OR FINDING
7 OF GUILT FOR VIOLATING THE PROVISIONS OF THE SECTION AND TO PROVIDE NOTICE
8 TO THE OWNER OF THE VEHICLE IF THE PERSON CONVICTED OR FOUND GUILTY IS NOT
9 THE OWNER; AMENDING SECTION 49-1230, IDAHO CODE, TO PROVIDE THAT UPON THE
10 COURT'S ORDER THE IDAHO TRANSPORTATION DEPARTMENT SHALL CANCEL THE REGIS-
11 TRATION OF A VEHICLE OWNED OR OPERATED BY A PERSON CONVICTED OR FOUND
12 GUILTY OF FAILURE TO PROVIDE INSURANCE OR OF OPERATING A VEHICLE WITHOUT
13 INSURANCE; AND AMENDING SECTION 49-1428, IDAHO CODE, TO PROVIDE THAT IT IS
14 A MISDEMEANOR FOR ANY OWNER OF A MOTOR VEHICLE TO PERMIT OPERATION OF THE
15 VEHICLE WITHOUT INSURANCE, TO PROVIDE ENHANCED PENALTIES FOR A SECOND OR
16 SUBSEQUENT VIOLATION, TO PROVIDE FOR AN ORDER OF RESTITUTION IN CERTAIN
17 INSTANCES, TO PROVIDE FOR CANCELLATION OF REGISTRATION UPON A CONVICTION
18 OR FINDING OF GUILT FOR VIOLATION OF THE SECTION AND TO PROVIDE NOTICE TO
19 THE VEHICLE OWNER IF THE PERSON CONVICTED OR FOUND GUILTY OF OPERATING THE
20 UNINSURED VEHICLE IS NOT THE OWNER.
21 Be It Enacted by the Legislature of the State of Idaho:
22 SECTION 1. That Section 49-1229, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 49-1229. REQUIRED MOTOR VEHICLE INSURANCE. (1) Every owner of a motor
25 vehicle which is registered and operated in Idaho by the owner or with his
26 permission shall continuously, except as provided in section 41-2516, Idaho
27 Code, provide insurance against loss resulting from liability imposed by law
28 for bodily injury or death or damage to property suffered by any person caused
29 by maintenance or use of motor vehicles described therein in an amount not
30 less than that required by section 49-117, Idaho Code, and shall demonstrate
31 the existence of any other coverage required by this title or a certificate of
32 self-insurance issued by the department pursuant to section 49-1224, Idaho
33 Code, for each motor vehicle to be registered.
34 (2) A motor vehicle owner who prefers to post an indemnity bond with the
35 director of the department of insurance in lieu of obtaining a policy of lia-
36 bility insurance may do so. Such bond shall guarantee that any loss resulting
37 from liability imposed by law for bodily injury, death or damage to property
38 suffered by any person caused by accident and arising out of the operation,
39 maintenance and use of the motor vehicle sought to be registered shall be paid
40 within thirty (30) days. The indemnity bonds shall guarantee payment in an
41 amount no less than fifty thousand dollars ($50,000) for any one (1) accident
42 of which fifteen thousand dollars ($15,000) is for property damage, for each
43 vehicle registered up to a maximum of one hundred twenty thousand dollars
2
1 ($120,000) for five (5) or more vehicles.
2 (3) Any bond given in connection with this chapter shall be, and shall be
3 construed to be, a continuing instrument and shall cover the period for which
4 the motor vehicle is to be registered and operated. Such bond shall be on a
5 form approved by the director of insurance with a surety company authorized to
6 do business in the state.
7 (4) A motor carrier shall continuously provide insurance against loss
8 resulting from liability imposed by law or by rule of the department and shall
9 comply with the insurance requirements of section 49-1233, Idaho Code.
10 (5) It is an infraction punishable by a fine of seventy-five dollars
11 ($75.00) a misdemeanor for any person to violate the provisions of this sec-
12 tion for the first time. A second and any subsequent conviction for a viola-
13 tion of the provisions of this section or the provisions of section 49-1232 or
14 49-1428, Idaho Code, within a period of five (5) years shall be a misdemeanor,
15 punishable by a fine not exceeding one thousand dollars ($1,000), or by
16 imprisonment in the county jail not exceeding six (6) months one year (1), or
17 both. The department shall notify any person convicted of a violation of this
18 section of the penalties which may be imposed for a second and any subsequent
19 conviction The court shall enter an order of restitution if the motor vehicle
20 being operated caused property damage or injury to persons.
21 (6) Upon conviction or a finding of guilt for violation of the provisions
22 of this section, the court shall order that the registration of the vehicle
23 operated at the time of the offense be canceled by the department in accor-
24 dance with the provisions of section 49-1230, Idaho Code. If the person con-
25 victed of violating the provisions of this section is not the owner of the
26 vehicle, prior to issuance of an order canceling the registration, the court
27 shall send notice to the owner that the registration will be canceled upon the
28 court's order unless proof of insurance is provided as required by chapter 12,
29 title 49, Idaho Code.
30 SECTION 2. That Section 49-1230, Idaho Code, be, and the same is hereby
31 amended to read as follows:
32 49-1230. PROOF OF COMPLIANCE. (1) Before any applicant required to regis-
33 ter his motor vehicle may do so the applicant shall certify the existence of
34 automobile liability insurance covering the motor vehicle on a form prescribed
35 by the department. The department may immediately cancel the registration card
36 and license plates of the vehicle upon notification that the insurance certi-
37 fication was not correctly represented.
38 (2) An owner of a motor vehicle who ceases to maintain the insurance
39 required in accordance with this chapter shall immediately surrender the reg-
40 istration card and license plates for the vehicle to the department and may
41 not operate or permit operation of the vehicle in Idaho until insurance has
42 again been furnished as required in accordance with this chapter and the vehi-
43 cle is again registered and licensed.
44 (3) Upon order of the court pursuant to subsection (6) of section
45 49-1229, Idaho Code, or subsection (3) of section 49-1428, Idaho Code, the
46 department shall immediately cancel the registration card and license plates
47 of a vehicle owned or operated by a person convicted or found guilty of vio-
48 lating the provisions of section 49-1229 or 49-1428, Idaho Code.
49 SECTION 3. That Section 49-1428, Idaho Code, be, and the same is hereby
50 amended to read as follows:
51 49-1428. FINANCIAL RESPONSIBILITY. (1) It shall be unlawful for any per-
3
1 son to operate a motor vehicle upon highways without a valid policy of liabil-
2 ity insurance in full force and effect in an amount not less than that pro-
3 vided in section 49-117, Idaho Code, or unless the person has been issued a
4 certificate of self-insurance pursuant to section 49-1224, Idaho Code, or has
5 previously posted an indemnity bond with the director of insurance as provided
6 in section 49-1229, Idaho Code.
7 (2) It is an infraction a misdemeanor punishable by a fine of seventy-
8 five dollars ($75.00) not in excess of three hundred dollars ($300) or by
9 imprisonment in the county jail not in excess of six (6) months or both, for
10 any person to violate the provisions of this section for the first time. A
11 second and any subsequent conviction of a violation of the provisions of this
12 section or the provisions of section 49-1229 or 49-1232, Idaho Code, within
13 five (5) years shall be a misdemeanor, punishable by a fine not exceeding one
14 thousand dollars ($1,000), or by imprisonment in the county jail not exceeding
15 six (6) months one (1) year, or both. The department shall notify any person
16 convicted of a violation of this section of the penalties which may be imposed
17 for a second and any subsequent conviction The court shall enter an order of
18 restitution if the motor vehicle being operated caused property damage or
19 injury to persons.
20 (3) Upon conviction or a finding of guilt for violation of the provisions
21 of this section, the court shall order that the registration of the vehicle
22 operated at the time of the offense be canceled in accordance with the provi-
23 sions of section 49-1230, Idaho Code. If the person convicted or found guilty
24 of violating the provisions of this section is not the owner of the vehicle
25 prior to issuance of an order canceling the registration, the court shall send
26 notice to the owner that the registration will be canceled upon the court's
27 order unless proof of insurance is provided as required in chapter 12, title
28 49, Idaho Code.
STATEMENT OF PURPOSE
RS 12495
The purpose of this legislation is to provide that an individual
who fails to maintain insurance on a motor vehicle, after
conviction of the same, shall have the registration of their
motor vehicle and license plates, canceled by the Department of
Transportation. Additionally, the legislation proposes to make
the failure to maintain insurance a misdemeanor.
FISCAL IMPACT
The administrative impact and possible increased costs of
prosecution are currently unliquidated. It is difficult to
presently project such costs.
Contact
Name: Senator Bart M. Davis
Phone: 332-1305
STATEMENT OF PURPOSE/FISCAL NOTE S1017