AB696: Bill Text

LRB-4175/1

EVM:ahe

2019 - 2020 LEGISLATURE

2019 Assembly BILL 696

December 23, 2019 - Introduced by Representatives Sanfelippo, Allen, Dittrich, Gundrum, Horlacher, Katsma, Knodl, Kuglitsch, Magnafici, Murphy, Spiros, Skowronski, Tittl, Tusler and Wichgers, cosponsored by Senators Craig, Nass, Jacque and Marklein. Referred to Committee on Transportation.

AB696,2,2 An Act to repeal 343.44 (4), 343.44 (5), 344.62 (2), 344.64, 344.65 (1) (b), 628.34 (14) (d) 2. c. and 344.65 (2); to renumber and amend 344.25 and 344.65 (1) (a); to amend 165.755 (1) (b), 302.46 (1) (a), 343.05 (2) (a) (intro.), 343.05 (3) (a), 343.05 (6), 343.44 (1) (a), 343.44 (1) (b), 344.25 (title), 344.26 (1) (a), 344.26 (1) (b) (intro.), 344.26 (1) (b) 1., 344.62 (1), 344.65 (1) (c), 757.05 (1) (a), 814.63 (1) (c), 814.63 (2), 814.65 (1), 814.85 (1) (a) and 814.86 (1); to repeal and recreate 344.26 (title); and to create 341.08 (1g), 341.10 (2) (bm), 343.05 (5m), 343.21 (1) (jg), 344.25 (2m), 344.26 (1) (am), 344.65 (1) (a) 2., 344.65 (1) (a) 3. and 344.65 (1) (a) 4. of the statutes; relating to: penalties for violations related to the motor vehicle liability insurance requirement, proof of financial responsibility, requirements for registering motor vehicles, operating a vehicle without an operator's license or after suspension or revocation of an operating privilege, making an appropriation, and providing a penalty.

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 Section 1 . 165.755 (1) (b) of the statutes is amended to read:

AB696,4,6 165.755 (1) (b) A court may not impose the crime laboratories and drug law enforcement surcharge under par. (a) for a violation of s. 101.123 (2) or (2m), for a financial responsibility violation under s. 344.62 (2), or for a violation of a state law or municipal or county ordinance involving a nonmoving traffic violation, a violation under s. 343.51 (1m) (b), or a safety belt use violation under s. 347.48 (2m).

AB696,2 Section 2 . 302.46 (1) (a) of the statutes is amended to read:

AB696,4,17 302.46 (1) (a) If a court imposes a fine or forfeiture for a violation of state law or for a violation of a municipal or county ordinance except for a violation of s. 101.123 (2) or (2m), for a financial responsibility violation under s. 344.62 (2), or for a violation of state laws or municipal or county ordinances involving nonmoving traffic violations, violations under s. 343.51 (1m) (b), or safety belt use violations under s. 347.48 (2m), the court, in addition, shall impose a jail surcharge under ch. 814 in an amount of 1 percent of the fine or forfeiture imposed or $10, whichever is greater. If multiple offenses are involved, the court shall determine the jail surcharge on the basis of each fine or forfeiture. If a fine or forfeiture is suspended in whole or in part, the court shall reduce the jail surcharge in proportion to the suspension.

AB696,3 Section 3 . 341.08 (1g) of the statutes is created to read:

AB696,5,4 341.08 (1g) The department shall require an individual making an application for original registration or for renewal of registration to provide a valid operator's license.

AB696,4 Section 4 . 341.10 (2) (bm) of the statutes is created to read:

AB696,5,6 341.10 (2) (bm) A valid operator's license.

AB696,5 Section 5 . 343.05 (2) (a) (intro.) of the statutes is amended to read:

AB696,5,12 343.05 (2) (a) (intro.) No person may operate a commercial motor vehicle upon a highway or 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 4 or more units for the use of their motor vehicles in this state unless the person is one of the following:

AB696,6 Section 6 . 343.05 (3) (a) of the statutes is amended to read:

AB696,5,20 343.05 (3) (a) No person may operate a motor vehicle which is not a commercial motor vehicle upon a highway or 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 4 or more units for the use of their motor vehicle in this state unless the person possesses a valid operator's license issued to the person by the department which is not revoked, suspended, canceled, or expired.

AB696,7 Section 7 . 343.05 (5m) of the statutes is created to read:

AB696,5,24 343.05 (5m) Impoundment. (a) 1. Except as provided in subd. 2., if a law enforcement officer arrests, or issues a citation to, a person for a violation of this section or s. 343.44, the officer shall do all of the following:

AB696,5,25 a. Immediately impound the vehicle used in the violation.

AB696,6,1 b. Make an inventory of any property contained in the vehicle.

AB696,6,3 c. Contact any rental or leasing agency registered as owner of the vehicle and any person registered as a holder of a security interest in the vehicle.

AB696,6,7 2. If the operating privilege of the person violating this section expired in the 6 months before the violation and the person has not been previously charged for a violation of this section or s. 343.44, the citing or arresting law enforcement officer is not required to take any of the actions under subd. 1.

AB696,6,11 (b) Subject to par. (f), a vehicle that has been impounded under par. (a) shall be released without payment of any fee related to the impoundment to a person who is found not guilty of the violation of this section or s. 343.44 upon which the impoundment is based.

AB696,6,14 (c) In addition to other penalties for violation of this section or s. 343.44, the court may order that any vehicle used in a violation of this section or s. 343.44 be impounded. An order for impoundment shall specify all of the following:

AB696,6,15 1. The motor vehicle subject to the order.

AB696,6,16 2. The period of impoundment.

AB696,6,17 3. The law enforcement agency responsible for carrying out the impoundment.

AB696,6,22 (d) Subject to pars. (e) and (f), after the period of impoundment has expired, the owner of the motor vehicle may claim the motor vehicle by paying any forfeiture or fine ordered for a violation of this section or s. 343.44 and any fee imposed under this paragraph. The fee shall include all costs reasonably incurred in impounding the vehicle.

AB696,7,6 (e) 1. If more than 30 days have expired since the period of impoundment has ended and no payment has been received, a notice shall be sent to the owners of the vehicle and holders of a security interest in the vehicle stating that the motor vehicle may be reclaimed upon payment of accrued charges and compliance with par. (f). The notice shall set forth the year, make, model, and serial number of the motor vehicle and the place where the motor vehicle is being held. The notice shall state that the failure of the owner or lienholders to exercise their rights to reclaim the motor vehicle under this section shall be considered a waiver of all right, title, and interest in the motor vehicle and a consent to the sale of the motor vehicle.

AB696,7,14 2. Any impounded motor vehicle not reclaimed by its owner or lienholder may be sold. The law enforcement agency impounding the motor vehicle may dispose of the vehicle by sealed bid or auction sale. At the sale, the highest bid for the motor vehicle shall be accepted unless the bid is considered inadequate by the law enforcement agency, in which event all bids may be rejected. If all bids are rejected or no bid is received, the law enforcement agency may readvertise the sale, adjourn the sale to another date, sell the motor vehicle at a private sale, or junk the motor vehicle.