SENATE BILL REPORT

                  SSB 5280

               As Passed Senate, March 11, 1999

Title:  An act relating to proof of financial responsibility or motor vehicle liability insurance.

Brief Description:  Meeting financial responsibility requirements for automobiles.

Sponsors:  Senate Committee on Transportation (originally sponsored by Senators Franklin, Winsley, Wojahn, Kline, Goings, Thibaudeau, Stevens, Rasmussen, Benton, Prentice, Heavey, Gardner, Shin and Oke).

Brief History:

Committee Activity:  Transportation:  2/9/99, 2/23/99 [DPS].

Passed Senate, 3/11/99, 45-1.

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  That Substitute Senate Bill No. 5280 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Haugen, Chair; Gardner, Vice Chair; Goings, Vice Chair; Benton, Costa, Eide, Horn, Johnson, Morton, Patterson, Prentice, Sheahan, T. Sheldon and Shin.

Staff:  Lynn Hale (786-7346)

Background:  Persons driving vehicles in the state of Washington are required to carry a motor vehicle liability insurance policy, a self-insurance certificate, a certificate of deposit, or proof of coverage from a liability bond.

Insurance companies that issue or renew motor vehicle liability insurance policies must provide the policyholder with an identification card.

Each year the owner of a motor vehicle is required to renew the vehicle license and pay the applicable fees and taxes.  Currently, there is no requirement that a vehicle owner offer proof of insurance at the time the vehicle registration is issued or renewed.

Failure to provide proof of insurance when requested to do so by a law enforcement officer creates a presumption that the person does not have insurance.  Failure to provide proof of insurance is a traffic infraction subject to penalties set by the Washington Supreme Court.

Summary of Bill:  Effective January 1, 2000, the owner of a vehicle wishing to renew the license of the vehicle must provide proof of motor vehicle liability insurance, a certificate of self-insurance, a certificate of deposit, or proof of coverage under a liability bond.

When the Department of Licensing (DOL) sends a vehicle license renewal notice, it must also notify the applicant of the requirement for proof of financial responsibility.  DOL must also reimburse its agents for the costs of returning renewal applications that are submitted without proof of financial responsibility.

Any person who knowingly provides false evidence of financial responsibility to the Department of Licensing on an application for a vehicle license is guilty of a misdemeanor.

Appropriation:  None.

Fiscal Note:  Requested on February 3, 1999.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This bill would close a loophole by requiring drivers to actually prove they are meeting financial responsibility requirements for automobiles.

Testimony Against:  None.

Testified:  PRO:  Senator Franklin, prime sponsor; Jim Boldt, WA State Auto Dealer's Assn.; Jean Leonard, State Farm Insurance, Alliance of American Insurers.