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Analysis by the Legislative Reference Bureau
This bill changes certain penalties and requirements related to operating a
motor vehicle without sufficient liability insurance, provides for impoundment of
motor vehicles used in certain crimes, expands the coverage of certain crimes related
to operating a motor vehicle without a license, and requires a valid driver's license
to register a motor vehicle.
Liability insurance requirement
Current law prohibits, with certain exceptions, a person from operating a motor
vehicle on a highway unless the vehicle owner or operator has in effect a sufficient
motor vehicle liability insurance policy with respect to the motor vehicle. Any person
who violates this requirement may be required to forfeit not more than $500.
Current law also prohibits a person from operating a motor vehicle on a highway
unless the person has in his or her immediate possession proof that he or she is in
compliance with the insurance requirement.
Under this bill, persons who are operating a motor vehicle on certain
nonhighway areas, including certain parking areas, are also required to have in
effect insurance with respect to the motor vehicle.
This bill repeals the requirement that a person have in his or her immediate
possession proof of compliance with insurance requirements. However, under this
bill, a traffic officer must cite a person for operating without insurance if the traffic
officer does not know that the person is in compliance with the insurance
requirements and the person does not have in his or her immediate possession proof
of compliance. A person, though, may not be convicted of operating without
insurance if the person produces proof that he or she was in compliance with the
insurance requirements at the time he or she was issued a citation for a violation.
This bill also alters the penalties for operating without insurance. Under this
bill, a person who violates the requirement that the owner or operator of a motor
vehicle be insured is subject to the following penalties:
1. A forfeiture of $100 for a first offense.
2. A forfeiture of not less than $250 nor more than $750 for a second or
subsequent offense occurring within three years.
3. If the person, in the course of a second or subsequent violation, causes great
bodily harm to another, a forfeiture of not less than $250 nor more than $2,500.
4. If the person, in the course of a violation, causes the death of another, a
forfeiture of not less than $500 nor more than $7,500.
This bill also provides that, for a first offense, if a person obtains sufficient
motor vehicle liability insurance before the person's appearance in court, the court
may not impose a penalty.

This bill also eliminates the exemption of operating without insurance offenses
from certain surcharges and fees that generally must be paid by persons who violate
traffic laws.
Currently, if the Department of Transportation receives a certified copy of a
judgment for damages of $500 or more arising out of a motor vehicle accident, DOT
must, with certain exceptions, immediately suspend the operating privilege and all
registrations of the person against whom the judgment was rendered unless the
person can provide proof of financial responsibility. Proof of financial responsibility
may be given by filing certification of coverage under a motor vehicle liability
insurance policy with minimum limits for any single accident of $25,000 for bodily
injury to or death of one person, $50,000 for bodily injury to or death of more than
one person, and $10,000 for property damage. Alternatively, proof of financial
responsibility may be furnished by depositing with DOT $60,000 in cash or certain
securities with a market value of $60,000. DOT must then hold the deposit of cash
or securities to satisfy any judgment against the person making the deposit for
damages resulting from the ownership, maintenance, use, or operation of a motor
vehicle, including damages for bodily injury, death, or property damage.
Under this bill, if DOT receives a record of conviction for operating a motor
vehicle on a highway without having in effect a motor vehicle liability insurance
policy with respect to the vehicle, DOT must suspend the person's operating privilege
and all registrations of the person unless the person can provide proof of financial
responsibility. The proof of financial responsibility requirement remains in effect for
three years from the date of conviction.
Registration
Under current law, an application to register or renew the registration of a
vehicle must be made on forms prescribed by DOT and must be accompanied by the
required fee. Under this bill, DOT must require an individual making such an
application to provide a valid operator's license and must refuse registration if a
valid operator's license is not provided.
Impoundment
Current law prohibits a person from operating a motor vehicle on a highway
during any period in which the person's motor vehicle operating privilege is
suspended (operating while suspended or OWS) or revoked (operating after
revocation or OAR) or, with limited exceptions, if the person does not possess a valid
operator's license (operating without a license or OWL). Under this bill, operating
a motor vehicle upon premises held out to the public for the use of their motor
vehicles, premises provided by employers to employees for the use of their motor
vehicles, or premises provided to tenants of rental housing in buildings of four or
more units for the use of their motor vehicle during any period in which the person's
motor vehicle operating privilege is suspended or revoked or if the person does not
possess a valid operator's license is also prohibited. Also under this bill, in addition
to the penalties available under current law, the vehicle used in an OWL, OWS, or
OAR offense will, with an exception, be immediately impounded and may be
impounded for an additional period determined by the court. A person may claim his
or her vehicle after the impoundment period by paying any fine or forfeiture for the

OWL, OWS, or OAR offense and any impoundment fees. Vehicles not claimed more
than 30 days after the end of the impoundment period are subject to sale or other
disposal. Also, under this bill, no vehicle that has been impounded after having been
used in an OWL, OWS, or OAR offense may be released unless the vehicle is
registered with DOT or exempt from registration and the person to whom the vehicle
is released provides a valid operator's license and proof of insurance.
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:
AB696,1 1Section 1 . 165.755 (1) (b) of the statutes is amended to read:
AB696,4,62 165.755 (1) (b) A court may not impose the crime laboratories and drug law
3enforcement surcharge under par. (a) for a violation of s. 101.123 (2) or (2m), for a
4financial responsibility violation under s. 344.62 (2),
or for a violation of a state law
5or municipal or county ordinance involving a nonmoving traffic violation, a violation
6under s. 343.51 (1m) (b), or a safety belt use violation under s. 347.48 (2m).
AB696,2 7Section 2 . 302.46 (1) (a) of the statutes is amended to read:
AB696,4,178 302.46 (1) (a) If a court imposes a fine or forfeiture for a violation of state law
9or for a violation of a municipal or county ordinance except for a violation of s. 101.123
10(2) or (2m), for a financial responsibility violation under s. 344.62 (2), or for a violation
11of state laws or municipal or county ordinances involving nonmoving traffic
12violations, violations under s. 343.51 (1m) (b), or safety belt use violations under s.
13347.48 (2m), the court, in addition, shall impose a jail surcharge under ch. 814 in an
14amount of 1 percent of the fine or forfeiture imposed or $10, whichever is greater.
15If multiple offenses are involved, the court shall determine the jail surcharge on the
16basis of each fine or forfeiture. If a fine or forfeiture is suspended in whole or in part,
17the court shall reduce the jail surcharge in proportion to the suspension.
AB696,3
1Section 3 . 341.08 (1g) of the statutes is created to read:
AB696,5,42 341.08 (1g) The department shall require an individual making an application
3for original registration or for renewal of registration to provide a valid operator's
4license.
AB696,4 5Section 4 . 341.10 (2) (bm) of the statutes is created to read:
AB696,5,66 341.10 (2) (bm) A valid operator's license.
AB696,5 7Section 5 . 343.05 (2) (a) (intro.) of the statutes is amended to read:
AB696,5,128 343.05 (2) (a) (intro.) No person may operate a commercial motor vehicle upon
9a highway or upon premises held out to the public for the use of their motor vehicles,
10premises provided by employers to employees for the use of their motor vehicles, or
11premises provided to tenants of rental housing in buildings of 4 or more units for the
12use of their motor vehicles
in this state unless the person is one of the following:
AB696,6 13Section 6 . 343.05 (3) (a) of the statutes is amended to read:
AB696,5,2014 343.05 (3) (a) No person may operate a motor vehicle which is not a commercial
15motor vehicle upon a highway or upon premises held out to the public for the use of
16their motor vehicles, premises provided by employers to employees for the use of
17their motor vehicles, or premises provided to tenants of rental housing in buildings
18of 4 or more units for the use of their motor vehicle
in this state unless the person
19possesses a valid operator's license issued to the person by the department which is
20not revoked, suspended, canceled, or expired.
AB696,7 21Section 7 . 343.05 (5m) of the statutes is created to read:
AB696,5,2422 343.05 (5m) Impoundment. (a) 1. Except as provided in subd. 2., if a law
23enforcement officer arrests, or issues a citation to, a person for a violation of this
24section or s. 343.44, the officer shall do all of the following:
AB696,5,2525 a. Immediately impound the vehicle used in the violation.
AB696,6,1
1b. Make an inventory of any property contained in the vehicle.
AB696,6,32 c. Contact any rental or leasing agency registered as owner of the vehicle and
3any person registered as a holder of a security interest in the vehicle.
AB696,6,74 2. If the operating privilege of the person violating this section expired in the
56 months before the violation and the person has not been previously charged for a
6violation of this section or s. 343.44, the citing or arresting law enforcement officer
7is not required to take any of the actions under subd. 1.
AB696,6,118 (b) Subject to par. (f), a vehicle that has been impounded under par. (a) shall
9be released without payment of any fee related to the impoundment to a person who
10is found not guilty of the violation of this section or s. 343.44 upon which the
11impoundment is based.
AB696,6,1412 (c) In addition to other penalties for violation of this section or s. 343.44, the
13court may order that any vehicle used in a violation of this section or s. 343.44 be
14impounded. An order for impoundment shall specify all of the following:
AB696,6,1515 1. The motor vehicle subject to the order.
AB696,6,1616 2. The period of impoundment.
AB696,6,1717 3. The law enforcement agency responsible for carrying out the impoundment.
AB696,6,2218 (d) Subject to pars. (e) and (f), after the period of impoundment has expired, the
19owner of the motor vehicle may claim the motor vehicle by paying any forfeiture or
20fine ordered for a violation of this section or s. 343.44 and any fee imposed under this
21paragraph. The fee shall include all costs reasonably incurred in impounding the
22vehicle.
AB696,7,623 (e) 1. If more than 30 days have expired since the period of impoundment has
24ended and no payment has been received, a notice shall be sent to the owners of the
25vehicle and holders of a security interest in the vehicle stating that the motor vehicle

1may be reclaimed upon payment of accrued charges and compliance with par. (f). The
2notice shall set forth the year, make, model, and serial number of the motor vehicle
3and the place where the motor vehicle is being held. The notice shall state that the
4failure of the owner or lienholders to exercise their rights to reclaim the motor vehicle
5under this section shall be considered a waiver of all right, title, and interest in the
6motor vehicle and a consent to the sale of the motor vehicle.
AB696,7,147 2. Any impounded motor vehicle not reclaimed by its owner or lienholder may
8be sold. The law enforcement agency impounding the motor vehicle may dispose of
9the vehicle by sealed bid or auction sale. At the sale, the highest bid for the motor
10vehicle shall be accepted unless the bid is considered inadequate by the law
11enforcement agency, in which event all bids may be rejected. If all bids are rejected
12or no bid is received, the law enforcement agency may readvertise the sale, adjourn
13the sale to another date, sell the motor vehicle at a private sale, or junk the motor
14vehicle.
AB696,7,1615 (f) No vehicle that has been impounded under par. (a) may be released unless
16all of the following apply:
AB696,7,1817 1. The motor vehicle is registered under ch. 341 or exempt from registration
18under s. 341.05.
AB696,7,2019 2. The person to whom the vehicle is released provides a valid motor vehicle
20operator's license.
AB696,7,2421 3. The person to whom the vehicle is released provides proof that the person
22has in effect a motor vehicle liability policy, as defined under s. 344.61 (2), with
23respect to the vehicle or proof that an exception under s. 344.63 (1) applies with
24respect to the vehicle.
AB696,8 25Section 8 . 343.05 (6) of the statutes is amended to read:
AB696,8,4
1343.05 (6) Other offenses; penalties. Section Except as provided in sub. (5m),
2s.
343.44 and the penalties thereunder shall apply in lieu of this section to any person
3operating a motor vehicle upon a highway or other covered premises in this state
4with an operator's license which is revoked or suspended.
AB696,9 5Section 9. 343.21 (1) (jg) of the statutes is created to read:
AB696,8,86 343.21 (1) (jg) In addition to any other fee under this subsection, for
7reinstatement of an operating privilege previously revoked or suspended resulting
8from the conviction of an offense under s. 344.62 (1), $28.
AB696,10 9Section 10 . 343.44 (1) (a) of the statutes is amended to read:
AB696,8,2210 343.44 (1) (a) Operating while suspended. No person whose operating privilege
11has been duly suspended under the laws of this state may operate a motor vehicle
12upon any highway or upon premises held out to the public for the use of their motor
13vehicles, premises provided by employers to employees for the use of their motor
14vehicles, or premises provided to tenants of rental housing in buildings of 4 or more
15units for the use of their motor vehicle
in this state during the period of suspension
16or in violation of any restriction on an occupational license issued to the person
17during the period of suspension. A person's knowledge that his or her operating
18privilege is suspended is not an element of the offense under this paragraph. In this
19paragraph, “restriction on an occupational license" means restrictions imposed
20under s. 343.10 (5) (a) as to hours of the day, area, routes or purpose of travel, vehicles
21allowed to be operated, use of an ignition interlock device, sobriety or use of alcohol,
22controlled substances or controlled substance analogs.
AB696,11 23Section 11 . 343.44 (1) (b) of the statutes is amended to read:
AB696,9,1124 343.44 (1) (b) Operating while revoked. No person whose operating privilege
25has been duly revoked under the laws of this state may operate a motor vehicle upon

1any highway or upon premises held out to the public for the use of their motor
2vehicles, premises provided by employers to employees for the use of their motor
3vehicles, or premises provided to tenants of rental housing in buildings of 4 or more
4units for the use of their motor vehicles
in this state during the period of revocation
5or in violation of any restriction on an occupational license issued to the person
6during the period of revocation. A person's knowledge that his or her operating
7privilege is revoked is not an element of the offense under this paragraph. In this
8paragraph, “restriction on an occupational license" means restrictions imposed
9under s. 343.10 (5) (a) as to hours of the day, area, routes or purpose of travel, vehicles
10allowed to be operated, use of an ignition interlock device, sobriety or use of alcohol,
11controlled substances or controlled substance analogs.
AB696,12 12Section 12 . 343.44 (4) of the statutes is repealed.
AB696,13 13Section 13 . 343.44 (5) of the statutes is repealed.
AB696,14 14Section 14 . 344.25 (title) of the statutes is amended to read:
AB696,9,16 15344.25 (title) Suspension for nonpayment of judgment or certain
16financial responsibility violations
; exceptions.
AB696,15 17Section 15 . 344.25 of the statutes is renumbered 344.25 (1), and 344.25 (1) (f),
18as renumbered, is amended to read:
AB696,9,2119 344.25 (1) (f) Notwithstanding sub. (5), subs. (2) and (3) par. (e), pars. (b) and
20(c)
apply to a damage judgment in accordance with s. 344.05 against a resident of this
21state which has been entered by an Indian tribal court in this state.
AB696,16 22Section 16 . 344.25 (2m) of the statutes is created to read:
AB696,9,2523 344.25 (2m) The secretary shall suspend a person's operating privilege and all
24registrations of the person upon receiving a record of conviction showing that the
25person has been convicted of an offense under s. 344.62 (1).
AB696,17
1Section 17. 344.26 (title) of the statutes is repealed and recreated to read:
AB696,10,2 2344.26 (title) Term of suspension.
AB696,18 3Section 18 . 344.26 (1) (a) of the statutes is amended to read:
AB696,10,124 344.26 (1) (a) Subject to the exceptions stated in ss. 344.25 (2) (1) (b) and 344.27
5(2), any operating privilege or registration suspended or revoked under s. 344.25 (1)
6shall remain suspended or revoked for 5 years from the date of entry of judgment or
7until the judgment is stayed, satisfied, or discharged, whichever is earlier, and,
8unless 3 years have elapsed since the date on which the judgment was stayed,
9satisfied, or discharged or 8 years have elapsed since the date of entry of judgment,
10whichever is earlier, or unless the person is a nonresident, until the person whose
11operating privilege and registration was suspended or revoked furnishes and
12maintains in effect proof of financial responsibility for the future.
AB696,19 13Section 19 . 344.26 (1) (am) of the statutes is created to read:
AB696,10,1814 344.26 (1) (am) Any operating privilege or registration suspended under s.
15344.25 (2m) for an offense under s. 344.62 (1) shall remain suspended for 3 years from
16the date of conviction or until the person whose operating privilege and registration
17was suspended furnishes and maintains in effect proof of financial responsibility for
18the future.
AB696,20 19Section 20 . 344.26 (1) (b) (intro.) of the statutes is amended to read:
AB696,10,2520 344.26 (1) (b) (intro.) If suspension of any operating privilege or registration
21under s. 344.25 (1) was terminated before 5 years from the date of entry of judgment
22because an exception under s. 344.25 (2) (1) (b) or 344.27 (2) applied and the
23judgment debtor's operating privilege or registration is subsequently suspended
24under s. 344.25 (2) (1) (b) or 344.27 (3), the operating privilege or registration shall
25remain suspended for all of the following periods:
AB696,21
1Section 21. 344.26 (1) (b) 1. of the statutes is amended to read:
AB696,11,82 344.26 (1) (b) 1. Five years from the date of suspension under s. 344.25 (2) (1)
3(b)
or 344.27 (3) or until the judgment is stayed, satisfied, or discharged, whichever
4is earlier. A suspension period that commences on the date of suspension under s.
5344.25 (2) (1) (b) or 344.27 (3) under this subdivision shall be reduced by the amount
6of time that the judgment debtor's operating privilege or registration was suspended
7under s. 344.25 (1) before one of the exceptions under s. 344.25 (2) (1) (b) or 344.27
8(2) was satisfied.
AB696,22 9Section 22 . 344.62 (1) of the statutes is amended to read:
AB696,11,2410 344.62 (1) Except as provided in s. 344.63, no person may operate a motor
11vehicle upon a highway or upon premises held out to the public for the use of their
12motor vehicles, premises provided by employers to employees for the use of their
13motor vehicles, or premises provided to tenants of rental housing in buildings of 4 or
14more units for the use of their motor vehicles
in this state unless the owner or
15operator of the vehicle has in effect a motor vehicle liability policy with respect to the
16vehicle being operated. A traffic officer shall cite a person under this subsection if
17the traffic officer does not know that the person is operating his or her motor vehicle
18in compliance with this subsection and the person does not have in his or her
19immediate possession proof of compliance with this subsection. At the time that a
20citation is issued for a violation of this subsection, the law enforcement officer issuing
21the citation shall inform the person to whom the citation is issued that the penalty
22amount may be reduced if the person obtains a motor vehicle liability policy with
23respect to the motor vehicle operated in the violation no later than the time of the
24person's appearance in court.
AB696,23 25Section 23 . 344.62 (2) of the statutes is repealed.
AB696,24
1Section 24. 344.64 of the statutes is repealed.
AB696,25 2Section 25 . 344.65 (1) (a) of the statutes is renumbered 344.65 (1) (a) 1. and
3amended to read:
AB696,12,104 344.65 (1) (a) 1. Any Except as provided in subds. 2. to 4., any person who
5violates s. 344.62 (1) may shall be required to forfeit not more than $500 $100 for a
6first offense and not less than $250, plus costs, fees, and surcharges as provided in
7s. 345.47 (1), nor more than $750, plus costs, fees, and surcharges as provided in s.
8345.47 (1), for a 2nd or subsequent offense occurring within 3 years.
9Notwithstanding s. 345.47 (1), the court may not impose costs, fees, or surcharges for
10a first offense under this subdivision
.
AB696,26 11Section 26 . 344.65 (1) (a) 2. of the statutes is created to read:
AB696,12,1612 344.65 (1) (a) 2. Any person who commits a 2nd or subsequent violation of s.
13344.62 (1) and, in the course of the violation, causes great bodily harm, as defined in
14s. 939.22 (14), to another person may be required to forfeit not less than $250, plus
15costs, fees, and surcharges as provided in s. 345.47 (1), nor more than $2,500, plus
16costs, fees, and surcharges as provided in s. 345.47 (1).
AB696,27 17Section 27 . 344.65 (1) (a) 3. of the statutes is created to read:
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