Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 50 Fourth Substitute (2017GS)

Sponsor

Sen. Fillmore, L.

Final action

Governor Signed 3/25/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• amends provisions related to the seizure of a vehicle if the owner or operator does not have security in effect;
• amends provisions related to evidence of a motor vehicle owner's or operator's security; and
• amends post-accident security requirements.

Every vote on this bill

Bill text

AUTOMOBILE INSURANCE REGISTRY AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor: 
Norman K Thurston
LONG TITLE
General Description:
This bill amends provisions related to motor vehicle insurance.
Highlighted Provisions:
This bill:
▸ amends provisions related to the seizure of a vehicle if the owner or operator does
not have security in effect;
▸ amends provisions related to evidence of a motor vehicle owner's or operator's
security; and
▸ amends post-accident security requirements. 
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
41-1a-1101
, as last amended by Laws of Utah 2014, Chapter 382
41-12a-303.2
, as last amended by Laws of Utah 2016, Chapters 303 and 356
41-12a-501
, as last amended by Laws of Utah 2005, Chapter 2
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
41-1a-1101
 is amended to read:
41-1a-1101.
Seizure -- Circumstances where permitted -- Impound lot standards.
(1) The division or any peace officer, without a warrant, may seize and take possession
of any vehicle, vessel, or outboard motor:
(a) that the division or the peace officer has reason to believe has been stolen;
(b) on which any identification number has been defaced, altered, or obliterated;
(c) that has been abandoned in accordance with Section 
41-6a-1408
;
(d) for which the applicant has written a check for registration or title fees that has not
been honored by the applicant's bank and that is not paid within 30 days;
(e) that is placed on the water with improper registration;
(f) that is being operated on a highway:
(i) with registration that has been expired for more than three months;
(ii) having never been properly registered by the current owner; or
(iii) with registration that is suspended or revoked; or
(g) (i) that the division or the peace officer has reason to believe has been involved in
an accident described in Section 
41-6a-401
, 
41-6a-401.3
, or 
41-6a-401.5
; and
(ii) whose operator did not remain at the scene of the accident until the operator
fulfilled the requirements described in Section 
41-6a-401
 or 
41-6a-401.7
.
(2) (a) Subject to the restriction in Subsection (2)(b), the division or any peace officer,
without a warrant[
,
]
:
(i)
 shall seize and take possession of any vehicle that is being operated on a highway
without owner's or operator's security in effect for the vehicle as required under Section
41-12a-301
 [
unless
] 
and the vehicle was involved in an accident; or
(ii) may seize and take possession of any vehicle that is being operated on a highway
without owner's or operator's security in effect for the vehicle as required under Section
41-12a-301
 if
 the division or any peace officer makes a reasonable determination that:
[
(i)
] 
(A)
 the seizure of the vehicle would present a public safety concern to the operator
or any of the occupants in the vehicle; or
[
(ii)
] 
(B)
 the impoundment of the vehicle would prevent the division or the peace
officer from addressing other public safety considerations.
(b) The division or any peace officer may not seize and take possession of a vehicle
under Subsection (2)(a):
(i) if the operator of the vehicle is not carrying evidence of owner's or operator's
security as defined in Section 
41-12a-303.2
 in the vehicle unless the division or peace officer
verifies that owner's or operator's security is not in effect for the vehicle through the Uninsured
Motorist Identification Database created in accordance with Section 
41-12a-803
; or
(ii) if the operator of the vehicle is carrying evidence of owner's or operator's security
as defined in Section 
41-12a-303.2
 in the vehicle and the Uninsured Motorist Identification
Database created in accordance with Section 
41-12a-803
 indicates that the owner's or operator's
security is not in effect for the vehicle, unless the division or a peace officer makes a
reasonable attempt to independently verify that owner's or operator's security is not in effect for
the vehicle.
(3) If necessary for the transportation of a seized vessel, the vessel's trailer may be
seized to transport and store the vessel.
(4) Any peace officer seizing or taking possession of a vehicle, vessel, or outboard
motor under this section shall comply with the provisions of Section 
41-6a-1406
.
(5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission shall make rules setting standards for public garages, impound lots, and
impound yards that may be used by peace officers and the division.
(b) The standards shall be equitable, reasonable, and unrestrictive as to the number of
public garages, impound lots, or impound yards per geographical area.
(6) (a) Except as provided under Subsection (6)(b), a person may not operate or allow
to be operated a vehicle stored in a public garage, impound lot, or impound yard regulated
under this part without prior written permission of the owner of the vehicle.
(b) Incidental and necessary operation of a vehicle to move the vehicle from one
parking space to another within the facility and that is necessary for the normal management of
the facility is not prohibited under Subsection (6)(a).
(7) A person who violates the provisions of Subsection (6) is guilty of a class C
misdemeanor.
(8) The division or the peace officer who seizes a vehicle shall record the mileage
shown on the vehicle's odometer at the time of seizure, if:
(a) the vehicle is equipped with an odometer; and
(b) the odometer reading is accessible to the division or the peace officer.
Section 2. Section 
41-12a-303.2
 is amended to read:
41-12a-303.2.
Evidence of owner's or operator's security to be carried when
operating motor vehicle -- Defense -- Penalties.
(1) As used in this section:
(a) "Division" means the Motor Vehicle Division of the State Tax Commission.
(b) "Registration materials" means the evidences of motor vehicle registration,
including all registration cards, license plates, temporary permits, and nonresident temporary
permits.
(2) (a) (i) A person operating a motor vehicle shall:
(A) have in the person's immediate possession evidence of owner's or operator's
security for the motor vehicle the person is operating; and
(B) display it upon demand of a peace officer.
(ii) A person is exempt from the requirements of Subsection (2)(a)(i) if the person is
operating:
(A) a government-owned or leased motor vehicle; or
(B) an employer-owned or leased motor vehicle and is driving it with the employer's
permission.
(iii) A person operating a vehicle that is owned by a rental company, as defined in
Section 31A-22-311, may comply with Subsection (2)(a)(i) by having in the person's
immediate possession, or displaying, the rental vehicle's rental agreement, as defined in Section
31A-22-311.
(b) Evidence of owner's or operator's security includes any one of the following:
(i) a copy of the operator's valid:
(A) insurance policy;
(B) insurance policy declaration page;
(C) binder notice;
(D) renewal notice; or
(E) card issued by an insurance company as evidence of insurance;
(ii) a certificate of insurance issued under Section 41-12a-402;
(iii) a certified copy of a surety bond issued under Section 41-12a-405;
(iv) a certificate of the state treasurer issued under Section 41-12a-406;
(v) a certificate of self-funded coverage issued under Section 41-12a-407; or
(vi) information that the vehicle or driver is insured from the Uninsured Motorist
Identification Database Program created under Title 41, Chapter 12a, Part 8, Uninsured
Motorist Identification Database Program.
(c) A card issued by an insurance company as evidence of owner's or operator's
security under Subsection (2)(b)(i)(E) on or after July 1, 2014, may not display the owner's or
operator's address on the card.
(d) (i) A person may provide to a peace officer evidence of owner's or operator's
security described in this Subsection (2) in:
(A) a hard copy format; or
(B) an electronic format using a mobile electronic device.
(ii) If a person provides evidence of owner's or operator's security in an electronic
format using a mobile electronic device under this Subsection (2)(d), the peace officer viewing
the owner's or operator's security on the mobile electronic device may not view any other
content on the mobile electronic device.
(iii) Notwithstanding any other provision under this section, a peace officer is not
subject to civil liability or criminal penalties under this section if the peace officer inadvertently
views content other than the evidence of owner's or operator's security on the mobile electronic
device.
(e) (i) Evidence of owner's or operator's security from the Uninsured Motorist
Identification Database Program described under Subsection (2)(b)(vi) supercedes any
evidence of owner's or operator's security described under Subsection (2)(b)(i)(D) or (E).
(ii) A peace officer may not cite or arrest a person for a violation of Subsection (2)(a) if
the Uninsured Motorist Identification Database Program created under Title 41, Chapter 12a,
Part 8, Uninsured Motorist Identification Database Program, information indicates that the
vehicle or driver is insured.
(3) It is an affirmative defense to a charge 
or in an administrative action
 under this
section that the person had owner's or operator's security in effect for the vehicle the person
was operating at the time of the person's citation or arrest.
[
(4) (a) Evidence of owner's or operator's security as defined under Subsection (2)(b) or
a written statement from an insurance producer or company verifying that the person had the
required motor vehicle insurance coverage on the date specified is considered proof of owner's
or operator's security for purposes of Subsection (3) and Section 41-12a-804.
]
(4) (a) The following are considered proof of owner's or operator's security for
purposes of Subsection (3) and Section 
41-12a-804
:
(i) evidence defined in Subsection (2)(b);
(ii) a written statement from an insurance producer or company verifying that the
person had the required motor vehicle insurance coverage on the date specified; or
(iii) a written statement from an insurance producer or company, or provision in an
insurance policy, indicating that the policy provides coverage for a newly purchased car and the
coverage extended to the date specified.
(b) The court considering a citation issued under this section shall allow the evidence
or a written statement under Subsection (4)(a) and a copy of the citation to be faxed or mailed
to the clerk of the court to satisfy Subsection (3).
(c) The notice under Section 41-12a-804 shall specify that the written statement under
Subsection (4)(a) and a copy of the notice shall be faxed or mailed to the designated agent to
satisfy the proof of owner's or operator's security required under Section 41-12a-804.
(5) A violation of this section is an infraction, and the fine shall be not less than:
(a) $400 for a first offense; and
(b) $1,000 for a second and subsequent offense within three years of a previous
conviction or bail forfeiture.
(6) Upon receiving notification from a court of a conviction for a violation of this
section, the department:
(a) shall suspend the person's driver license; and
(b) may not renew the person's driver license or issue a driver license to the person
until the person gives the department proof of owner's or operator's security.
(i) This proof of owner's or operator's security shall be given by any of the ways
required under Section 41-12a-401.
(ii) This proof of owner's or operator's security shall be maintained with the department
for a three-year period.
(iii) An insurer that provides a certificate of insurance as provided under Section
41-12a-402 or 41-12a-403 may not terminate the insurance policy unless notice of termination
is filed with the department no later than 10 days after termination as required under Section
41-12a-404.
(iv) If a person who has canceled the certificate of insurance applies for a license
within three years from the date proof of owner's or operator's security was originally required,
the department shall refuse the application unless the person reestablishes proof of owner's or
operator's security and maintains the proof for the remainder of the three-year period.
Section 3. Section 
41-12a-501
 is amended to read:
41-12a-501.
Post-accident security.
(1) (a) Unless excepted under Subsection (2), the operator of a motor vehicle involved
in an accident in the state and any owner who has not previously satisfied the requirement of
security under Section 
41-12a-301
 shall file post-accident security with the department for the
benefit of persons obtaining judgments against the operator on account of bodily injury, death,
or property damage caused by the accident.
(b) The security shall be in an amount determined by the department to be sufficient to
satisfy judgments arising from bodily injury, death, or property damage resulting from the
accident that may be recovered against the operator, but may not exceed the minimum single
limit under Subsection 
31A-22-304
(2).
(c) The department shall determine the amount of post-accident security on the basis of
reports and other evidence submitted to the department by interested parties, including officials
investigating the accident.
(d) In setting the amount of post-accident security, the department may not take into
account alleged damages resulting from pain and suffering.
(e) Persons who fail to file required post-accident security are subject to the penalties
under Subsection (3).
(2) The operator is exempted from the post-accident requirement under Subsection (1)
if any of the following conditions are satisfied:
(a) No bodily injury, death, or damage to the property of one person in excess of the
damage limit specified under Section 
41-6a-401
 resulted from the accident.
(b) No injury, death, or property damage was suffered by any person other than the
owner or operator.
(c) The owner of the motor vehicle was in compliance with the owner's security
requirement under Section 
41-12a-301
 at the time of the accident and the operator had
permission from the owner to operate the motor vehicle.
(d) The operator was in compliance with the operator's security requirement under
Section 
41-12a-301
 at the time of the accident.
(e) The operator has filed satisfactory evidence with the department that the operator
has been released from liability, has been finally adjudicated not to be liable, or has executed a
duly acknowledged written agreement providing for the payment of an agreed amount in
installments with respect to all claims for injuries or damages resulting from the accident and is
not in default on that agreement.
(f) The motor vehicle involved in the accident was operated by a nonresident who had
an insurance policy or bond covering the accident, but not fully complying with the policy
provision requirements under Section 
31A-22-302
, if the policy or bond is sufficient to provide
full recovery for claimants and the policy or bond is issued by an insurer licensed in the state.
(g) The operator at the time of the accident was operating a motor vehicle owned or
leased by the operator's employer and driven with the employer's permission.
(h) Evidence as to the extent of injuries or property damage caused by the accident has
not been submitted by or on behalf of any person affected by the accident within [
six months
]
three years
 following the date of the accident.
(i) The motor vehicle was legally parked at the time of the accident.
(j) The motor vehicle was an emergency vehicle acting in the line of duty at the time of
the accident.
(k) The motor vehicle involved in the accident is owned by the United States, this state,
or any political subdivision of this state, if the operator was using the vehicle with the
permission of the owner.
(l) The motor vehicle was legally stopped at a stop sign, traffic signal, or at the
direction of a peace officer at the time of the accident.
(3) (a) If an operator who is required to file post-accident security under Subsection (1)
does not do so within 10 days after receiving notice of the requirement of security, the
department shall suspend the driver's license of the operator and all registrations of the owner,
if he is a resident of the state.
(b) If the operator is not a resident of Utah, the department shall suspend the privilege
of operating a motor vehicle within the state and of using, in the state, any owned motor
vehicle.
(c) Notice of these suspensions shall be sent to the owner or operator no less than 15
days prior to the effective date of the suspension.