LRB-1411/1
BAB:kjf:jf
2007 - 2008 LEGISLATURE
January 4, 2008 - Introduced by Senators Lehman, Carpenter, Wirch, Roessler,
Leibham and Erpenbach, cosponsored by Representatives Black, Boyle,
Hixson, Jorgensen, Van Akkeren, Murtha, Berceau, Sinicki and Krusick.
Referred to Committee on Health, Human Services, Insurance, and Job
Creation.
SB374,1,8
1An Act to amend 85.55, 165.755 (1) (b), 194.41 (1), 302.46 (1) (a), 344.15 (1),
2344.15 (2) (intro.), 344.15 (4), 344.15 (5), 344.32 (1) (intro.), 344.33 (1), 344.35
3(title), 344.35 (1), 344.35 (2), 344.51 (1m), 345.61 (1) (a), 345.61 (2) (c), 345.61
4(3), 346.73, 757.05 (1) (a), 814.63 (1) (c), 814.63 (2), 814.65 (1), 814.85 (1) (a) and
5814.86 (1); and
to create 344.10 of the statutes;
relating to: compulsory
6financial responsibility for the operation of motor vehicles, providing an
7exemption from emergency rule-making procedures, granting rule-making
8authority, 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 $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, which is 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.
Under current law, 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:
SB374, s. 1
1Section
1. 85.55 of the statutes is amended to read:
SB374,3,11
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. 66.0129 (6)
4(b), to 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).
SB374, s. 2
12Section
2. 165.755 (1) (b) of the statutes is amended to read:
SB374,3,2013
165.755
(1) (b) A court may not impose the crime laboratories and drug law
14enforcement surcharge under par. (a) for a violation of s. 101.123 (2) (a), (am) 1., (ar),
15(bm), (br), or (bv) or (5) (b),
for a financial responsibility violation under s. 344.10 (1)
16(a), for a first violation of s. 23.33 (4c) (a) 2., 30.681 (1) (b) 1., 346.63 (1) (b), or 350.101
17(1) (b), if the person who committed the violation had a blood alcohol concentration
18of 0.08 or more but less than 0.1 at the time of the violation, or for a violation of a state
19law or municipal or county ordinance involving a nonmoving traffic violation, a
20violation under s. 343.51 (1m) (b), or a safety belt use violation under s. 347.48 (2m).
SB374,5,83
194.41
(1) No permit or vehicle registration may be issued to a common motor
4carrier of property, contract motor carrier, or rental company, no permit or vehicle
5registration may remain in force to operate any motor vehicle under the authority
6of this chapter, and no vehicle registration may be issued or remain in force for a
7semitrailer unless the carrier or rental company has on file with the department and
8in effect an approved certificate for a policy of insurance or other written contract in
9such form and containing such terms and conditions as may be approved by the
10department issued by an insurer authorized to do a surety or
automobile motor
11vehicle liability business in this state under which the insurer assumes the liability
12prescribed by this section with respect to the operation of such motor vehicles. The
13certificate or other contract is subject to the approval of the department and shall
14provide that the insurer shall be directly liable for and shall pay all damages for
15injuries to or for the death of persons or for injuries to or destruction of property that
16may be recovered against the owner or operator of any such motor vehicles by reason
17of the negligent operation thereof in such amount as the department may require.
18Liability may be restricted so as to be inapplicable to damage claims on account of
19injury to or destruction of property transported, but the department may require,
20and with respect to a carrier transporting a building, as defined in s. 348.27 (12m)
21(a) 1., shall require, a certificate or other contract protecting the owner of the
22property transported by carriers from loss or damage in the amount and under the
23conditions as the department may require. No permit or vehicle registration may be
24issued to a common motor carrier of passengers by any motor vehicle, or other carrier
25of passengers by motor bus, except those registered in accordance with s. 341.26 (2)
1(a) and (d), and no permit or vehicle registration may remain in force to operate any
2motor vehicle unless it has on file with the department a like certificate or other
3contract in the form and containing the terms and conditions as may be approved by
4the department for the payment of damages for injuries to property and injuries to
5or for the death of persons, including passengers, in the amounts as the department
6may require. This subsection does not apply to a motor carrier that is registered by
7another state under a single-state or unified carrier registration system consistent
8with the standards under, respectively,
49 USC 14504 or
49 USC 13908 and
14504a.
SB374, s. 4
9Section
4. 302.46 (1) (a) of the statutes is amended to read:
SB374,5,2310
302.46
(1) (a) If a court imposes a fine or forfeiture for a violation of state law
11or for a violation of a municipal or county ordinance except for a violation of s. 101.123
12(2) (a), (am) 1., (ar), (bm), (br), or (bv) or (5),
for a financial responsibility violation
13under s. 344.10 (1) (a), or for a first violation of s. 23.33 (4c) (a) 2., 30.681 (1) (b) 1.,
14346.63 (1) (b), or 350.101 (1) (b), if the person who committed the violation had a blood
15alcohol concentration of 0.08 or more but less than 0.1 at the time of the violation,
16or for a violation of state laws or municipal or county ordinances involving
17nonmoving traffic violations, violations under s. 343.51 (1m) (b), or safety belt use
18violations under s. 347.48 (2m), the court, in addition, shall impose a jail surcharge
19under ch. 814 in an amount of 1 percent of the fine or forfeiture imposed or $10,
20whichever is greater. If multiple offenses are involved, the court shall determine the
21jail surcharge on the basis of each fine or forfeiture. If a fine or forfeiture is
22suspended in whole or in part, the court shall reduce the jail surcharge in proportion
23to the suspension.
SB374, s. 5
24Section
5. 344.10 of the statutes is created to read:
SB374,6,7
1344.10 Compulsory financial responsibility; limits and penalties. (1) 2(a) 1. No person may operate a motor vehicle upon a highway in this state unless the
3owner or operator has in effect a motor vehicle liability policy or bond for the motor
4vehicle, which meets the requirements under s. 344.15, insuring against loss
5resulting from liability imposed by law for bodily injury, death, and property damage
6sustained by any person arising out of the ownership, maintenance, operation, or use
7of the motor vehicle.
SB374,6,138
2. No person may operate a motor vehicle upon a highway in this state unless
9the person has in his or her immediate possession at all times while operating the
10vehicle proof that he or she is in compliance with subd. 1. or that the requirements
11of subd. 1. do not apply to him or her. The operator of the motor vehicle shall display
12the proof required under this subdivision upon demand from any law enforcement
13officer.
SB374,6,1914
(b) 1. No person charged with violating par. (a) 2. 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.
SB374,6,2420
2. Proof of compliance with par. (a) 2. 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.
SB374,7,3
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.
SB374,7,44
(c) Paragraph (a) 1. does not apply to any of the following:
SB374,7,65
1. A person operating a vehicle owned by a self-insurer under s. 344.16 if
6operating with the owner's permission.
SB374,7,87
2. A person operating a vehicle insured as required by s. 121.53, 194.41, or
8194.42 if operating with the owner's permission.
SB374,7,119
3. A person who has filed proof of financial responsibility as provided under
10sub. (2) or a person operating a vehicle owned by the person who has deposited money
11or security if operating with the owner's permission.
SB374,7,1412
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.
SB374,7,16
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.
SB374,7,25
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.
SB374,8,2
1(4) The department shall include with each operator's license issued under ch.
2343 notification of the requirements and penalties under this section.
SB374,8,3
3(5) (a) Any person who violates sub. (1) (a) 1. shall forfeit not more than $500.
SB374,8,44
(b) Any person who violates sub. (1) (a) 2. may be required to forfeit $10.
SB374, s. 6
5Section
6. 344.15 (1) of the statutes is amended to read:
SB374,8,156
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.
SB374, s. 7
16Section
7. 344.15 (2) (intro.) of the statutes is amended to read:
SB374,8,2217
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:
SB374, s. 8
23Section
8. 344.15 (4) of the statutes is amended to read:
SB374,9,1924
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 With respect to 12permission to operate the vehicle, the insurer may correct the report or other notice
13only if it files with the secretary within the 30-day period specified in this subsection
14an affidavit signed by the owner stating that the operator did not have the owner's
15permission to operate the vehicle. Where the insurer's failure to notify the secretary
16within 30 days of a correction in that portion of the report or other notice pertaining
17to
an automobile a motor vehicle liability policy or bond is caused by fraud, the
18insurer shall notify the secretary of the correction within 30 days of the time the
19fraud is discovered.
SB374, s. 9
20Section
9. 344.15 (5) of the statutes is amended to read:
