LRB-3685/1
ARG:bjk:md
2009 - 2010 LEGISLATURE
January 25, 2010 - Introduced by Law Revision Committee. Referred to Committee
on Transportation, Tourism, Forestry, and Natural Resources.
SB489,1,6 1An Act to repeal 344.32; and to amend 343.39 (1) (a), 344.18 (1m) (a), 344.18
2(3m) (a), 344.26 (1), 344.27 (2), 344.30 (1), 344.33 (1), 344.34, 344.42 and 631.37
3(4) (e) of the statutes; relating to: the requirement that a nonresident provide
4proof of financial responsibility for the operation of a motor vehicle to reinstate
5a suspended operating privilege or vehicle registration (suggested as remedial
6legislation by the Department of Transportation).
Analysis by the Legislative Reference Bureau
Under current law, any person whose operating privilege or vehicle registration
has been suspended for failure to deposit security or demonstrate financial
responsibility after an accident or judgment arising from an accident must provide,
and maintain in effect, proof of financial responsibility as a condition of
reinstatement of the operating privilege or vehicle registration unless at least three
years have elapsed since the person became eligible for reinstatement of the
operating privilege or vehicle registration. This applies to any resident or
nonresident operator or owner of a motor vehicle involved in an accident in this state.
The Department of Transportation may also require proof of financial responsibility
in other circumstances, including for issuance of an operator's license after
revocation by this state of a person's operating privilege. A nonresident may give
proof of financial responsibility by furnishing certification of a motor vehicle liability
insurance policy in effect for the benefit of the nonresident, issued by an insurer that
satisfies specified requirements, which requirements are specific to nonresidents.

This bill eliminates any requirement that nonresidents provide proof of
financial responsibility with respect to reinstatement of a suspended operating
privilege or registration in this state, and repeals the provision specifying the form
of, and requirements related to, proof of financial responsibility provided by
nonresidents.
For further information, see the Notes provided by the Law Revision
Committee of the Joint Legislative Council.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
Law Revision Committee prefatory note: This bill is a remedial legislation
proposal, requested by the Department of Transportation and introduced by the Law
Revision Committee under s. 13.83 (1) (c) 4. and 5., stats. After careful consideration of
the various provisions of the bill, the Law Revision Committee has determined that this
bill makes minor substantive changes in the statutes, and that these changes are
desirable as a matter of public policy.
SB489, s. 1 1Section 1 . 343.39 (1) (a) of the statutes is amended to read:
SB489,2,72 343.39 (1) (a) When, in the case of a suspended operating privilege, the period
3of suspension has terminated, the fees specified in s. 343.21 (1) (j) and (n) have been
4paid to the department and, for reinstatement of an the operating privilege of a
5resident
suspended under ch. 344, the person files with the department proof of
6financial responsibility, if required, in the amount, form, and manner specified under
7ch. 344.
SB489, s. 2 8Section 2. 344.18 (1m) (a) of the statutes is amended to read:
SB489,2,139 344.18 (1m) (a) Unless 3 years have elapsed since the date that a requirement
10under sub. (1) (a), (b), (c), or (d) has been met or unless the person is a nonresident,
11the person whose operating privilege or registration was suspended or revoked
12under s. 344.14 shall file with the department and maintain in effect proof of
13financial responsibility in the amount, form, and manner specified in this chapter.
SB489, s. 3 14Section 3. 344.18 (3m) (a) of the statutes is amended to read:
SB489,3,5
1344.18 (3m) (a) Unless 3 years have elapsed since the date that a requirement
2under sub. (3) (a) or (b) has been met or unless the person is a nonresident, the person
3whose operating privilege or registration was suspended or revoked under sub. (3)
4shall file with the department and maintain in effect proof of financial responsibility
5in the amount, form, and manner specified in this chapter.
SB489, s. 4 6Section 4. 344.26 (1) of the statutes is amended to read:
SB489,3,147 344.26 (1) Subject to the exceptions stated in ss. 344.25 (2) and 344.27 (2), any
8operating privilege or registration suspended or revoked under s. 344.25 shall
9remain suspended or revoked until every judgment mentioned in s. 344.25 is stayed,
10satisfied, or discharged and, unless 3 years have elapsed since the date on which the
11judgment was stayed, satisfied, or discharged or unless the person is a nonresident,
12until the person whose operating privilege and registration was suspended or
13revoked furnishes and maintains in effect proof of financial responsibility for the
14future.
SB489, s. 5 15Section 5 . 344.27 (2) of the statutes is amended to read:
SB489,3,2216 344.27 (2) The secretary shall not suspend the operating privilege or
17registration and shall restore any operating privilege or registration suspended
18following nonpayment of a judgment when the judgment debtor obtains such order
19permitting the payment of the judgment in installments and, unless 3 years have
20elapsed since the date on which the order permitting the payment of the judgment
21in installments is filed with the secretary or unless the judgment debtor is a
22nonresident
, furnishes and maintains proof of financial responsibility for the future.
SB489, s. 6 23Section 6 . 344.30 (1) of the statutes is amended to read:
SB489,3,2424 344.30 (1) Certification of insurance as provided in s. 344.31 or 344.32; or
SB489, s. 7 25Section 7 . 344.32 of the statutes is repealed.

Note: Sections 1 to 5 and 7 are explained in the analysis by the Legislative
Reference Bureau.
SB489, s. 8 1Section 8 . 344.33 (1) of the statutes is amended to read:
SB489,4,72 344.33 (1) Certification. In this chapter, "motor vehicle liability policy" means
3a motor vehicle policy of liability insurance, certified as provided in s. 344.31 or
4344.32
as proof of financial responsibility for the future, and issued, except as
5otherwise provided in s. 344.32,
by an insurer authorized to do an automobile
6liability business in this state to or for the benefit of the person named in the policy
7as the insured.
SB489, s. 9 8Section 9. 344.34 of the statutes is amended to read:
SB489,4,19 9344.34 Notice of cancellation or termination of certified policy. When
10an insurer has certified a motor vehicle liability policy under s. 344.31, a policy under
11s. 344.32
or a bond under s. 344.36, the insurance so certified shall not be canceled
12or terminated until at least 10 days after a notice of cancellation or termination of
13the insurance so certified has been filed in the office of the secretary. No insurance
14so certified may be canceled or terminated by the insurer prior to the expiration of
1590 days from the effective date of the certification on the grounds of failure to pay a
16premium when due. Such a certified policy or bond subsequently procured shall, on
17the effective date of its certification, terminate the insurance previously certified.
18Any certification or recertification filed by the same insurer following cancellation
19shall be accompanied by a fee of $3 payable by the insurer.
SB489, s. 10 20Section 10. 344.42 of the statutes is amended to read:
SB489,5,4 21344.42 Submission of certifications and recertifications by insurers.
22If the sum of certifications and recertifications under ss. 344.31 , 344.32 and 344.34
23that are submitted by an insurer to the department in any year exceeds 1,000, the

1insurer shall pay to the department a transaction fee of $1.50 per certification or
2recertification that is not transmitted electronically to the department. The
3department shall promulgate rules establishing procedures for the collection of
4transaction fees under this section.
SB489, s. 11 5Section 11 . 631.37 (4) (e) of the statutes is amended to read:
SB489,5,86 631.37 (4) (e) Motor vehicle liability policy. Section 344.34 applies to motor
7vehicle liability policies certified under s. 344.31 and to policies certified under s.
8344.32
.
Note: Sections 6 and 8 to 11 reflect the repeal of s. 344.32 by this bill.
SB489, s. 12 9Section 12. Initial applicability.
SB489,5,1110 (1) This act first applies to proof of financial responsibility filed with the
11secretary of transportation on the effective date of this subsection.
SB489,5,1212 (End)
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