AN ACT Relating to creating a program for the reinstatement of driving privileges that are suspended because of failure to pay a traffic infraction; amending RCW 46.20.289; adding a new section to chapter 46.20 RCW; creating a new section; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 2.  A new section is added to chapter 46.20 RCW to read as follows:

(1) The legislature hereby creates a program to provide a path for the reinstatement of driving privileges that are suspended because of failure to pay a traffic infraction.

(2) A person qualifies for entry into the program if:

(a) That person provides proof of financial responsibility as defined in RCW 46.29.260;

(b) That person's driver's license or driving privilege has been suspended under RCW 46.20.289; and

(c) That person has two or more unpaid infractions that are the basis of the suspension referred to two or more collection agencies.

(3) The department shall develop an application form and a process for validating them to be used by applicants for the program, and shall consider input from a statewide association representing collection agencies in the development of such an application.

(4) Any person qualifying for the program may enter the program by completing the application developed under subsection (3) of this section, submitting the validated application to any one collection agency that has been referred any unpaid infraction under subsection (2)(b) of this section, and making the first payment required under the payment program.

(5) Upon receipt of a complete and valid application, the receiving collection agency is the active collection agency for purposes of this section, and shall notify the department, in a format acceptable to the department, within two business days upon receipt of the participant's first regular monthly payment under subsection (6) of this section, of the participant's enrollment in the program and payment of the first monthly payment. The active collection agency may charge a transaction fee for processing a credit card payment that is equal to either the issuing court's processing fee or up to three percent of the payment amount; provided that a no-cost payment option is available to the debtor and the option is disclosed to the debtor at the same time and in the same manner as the debtor's credit card information is taken. Upon such notice, the department shall rescind the suspension of the participant's driver's license or driving privilege under RCW 46.20.289.

(6) While participating in the program, the participant must make regular monthly payments to the active collection agency. The monthly minimum payment is fifty dollars for balances up to five hundred dollars, one hundred dollars for balances over five hundred dollars but less than one thousand dollars, and one hundred fifty dollars for balances over one thousand dollars, unless an individualized assessment of ability to pay has been performed. For purposes of this subsection, "balances" means the balance of the participant's unpaid infractions, including any fees or costs assessed, held by the active collection agency. If a participant fails to make a payment on or before the scheduled due date as required by this subsection, the participant shall be removed from the program by the active collection agency.

(7) While the participant is participating in the program, the active collection agency shall suspend unpaid interest on the obligations of the participant that are subject to the program.

(a) If the participant successfully completes the program under subsection (10) of this section, the active collection agency shall waive all unpaid accrued interest on the obligations held by that agency; or

(b) If the participant is removed from the program, all interest suspended under this section shall be reinstated.

(8) A participant's driver's license or driving privilege must not be suspended under RCW 46.20.289 for any notices from a court, state, or other jurisdiction received prior to the notice from a collection agency referenced in subsection (5) of this section, during such time that the participant remains a participant in the program.

(9) A participant must maintain proof of financial responsibility as defined in RCW 46.29.260.

(10) If a participant is removed from the program under subsection (6), (9), or (11)(b) of this section:

(a) The active collection agency shall notify the department in a format acceptable to the department;

(b) The department shall suspend once again the participant's driver's license or driving privilege under RCW 46.20.289; and

(c) The person removed from the program may be reinstated in the program by again submitting the application in subsection (4) of this section, except that no person may be reinstated in the program more than two times in any five-year period.

(11) If a person participating in the program created by this section pays in full all obligations held by the active collection agency:

(a) The active collection agency shall provide the participant and the department with a statement showing the obligation as paid in full, and the contact information for any other collection agency holding an unpaid infraction that, but for the participant's participation in the program created in this section, would result in suspension of the participant's driver's license or driving privilege under RCW 46.20.289, as disclosed by the participant in his or her application and if known by the active collection agency; and

(b) If additional collection agencies are identified under (a) of this subsection, the participant must, within thirty days, submit an application developed under subsection (3) of this section to one of the other collection agencies, and must make payments to the collection agency as required under the payment program. The participant may submit a copy of the initial application to fulfill the application requirement. Upon submission of the application, the collection agency contacted becomes the active collection agency for purposes of this section. The collection agency shall notify the department within two business days upon receipt of the participant's first regular monthly payment under subsection (6) of this section. If the department does not receive notice from a collection agency that the participant has established a new payment program with another collection agency within thirty-seven days after the notice provided to the department under subsection (10)(a) of this section, the department shall suspend once again the participant's driver's license or driving privilege under RCW 46.20.289.

(12) A participant may remain in the program until such time that all collection agencies holding unpaid infractions that are suspending the participant's driver's license or driving privileges are paid in full, or until the participant is removed from the program under subsection (6) or (11)(b) of this section.

(13) The department may adopt rules necessary to implement this section.

(14) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

(a) "Active collection agency" means the collection agency to which a program participant is required to make monthly payments.

(b) "Participant" means a person who is enrolled in the program.

(c) "Program" means the program created by this section.

(d) "Unpaid infraction" means an unpaid monetary penalty, fee, cost, assessment, or other monetary obligation.

(15) A program for the reinstatement of driving privileges for any participant created under this section shall not be construed to arise out of a contract or agreement, express or implied, and shall not be subject to RCW 19.16.250, prohibited practices.

Sec. 3.  RCW 46.20.289 and 2016 c 203 s 6 are each amended to read as follows:

The department shall suspend all driving privileges of a person when the department receives notice from a court under RCW 46.63.070(6), 46.63.110(6), or 46.64.025 that the person has failed to respond to a notice of traffic infraction for a moving violation, failed to appear at a requested hearing for a moving violation, violated a written promise to appear in court for a notice of infraction for a moving violation, or has failed to comply with the terms of a notice of traffic infraction, criminal complaint, or citation for a moving violation, or when the department receives notice from another state under Article IV of the nonresident violator compact under RCW 46.23.010 or from a jurisdiction that has entered into an agreement with the department under RCW 46.23.020, other than for a standing, stopping, or parking violation, provided that the traffic infraction or traffic offense is committed on or after July 1, 2005. A suspension under this section takes effect pursuant to the provisions of RCW 46.20.245, and remains in effect until the department has received a certificate from the court showing that the case has been adjudicated or until the department has received notice as described in section 2(5) of this act, and until the person meets the requirements of RCW 46.20.311. In the case of failure to respond to a traffic infraction issued under RCW 46.55.105, the department shall suspend all driving privileges until the person provides evidence from the court that all penalties and restitution have been paid. A suspension under this section does not take effect if, prior to the effective date of the suspension, the department receives a certificate from the court showing that the case has been adjudicated.

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