H-4788.1  _______________________________________________

                    SUBSTITUTE HOUSE BILL 2749

          _______________________________________________

State of Washington      54th Legislature     1996 Regular Session

By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Clements, L. Thomas and Silver)

Read first time 02/02/96.

Directing a study of uninsured motorists.

    AN ACT Relating to vehicle liability insurance; and creating a new section.

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

NEW SECTION. Sec. 1.  (1) The legislature finds that there are significant numbers of motorists driving without the required vehicle liability insurance.  The legislature also finds that this is a complicated issue.  On one hand, the purpose of the mandatory vehicle liability insurance law is to ensure drivers are financially responsible; on the other hand, many of those who don't comply cannot afford the coverage, but still need to drive to work and other important destinations.  In addition, many areas of the state do not have sufficient public transportation.  The legislature intends to find ways to increase compliance with the mandatory vehicle insurance law through incentives and penalties.

    (2) The senate financial institutions and housing committee and the house of representatives financial institutions and insurance committee shall conduct a joint interim study on the problem of uninsured drivers and shall recommend options to increase compliance with the mandatory vehicle liability insurance requirements through incentives like those in House Bill No. 2749 or additional penalties like those in House Bill No. 2460.  The study shall include an examination of the approaches taken by other states.   The study shall also include an analysis of the costs to the state or local governments in implementing any recommendations or alternatives.   The joint interim study shall consult with the state patrol, local law enforcement officials, the department of licensing, the office of the insurance commissioner, other applicable state agencies, and the insurance industry.  State agencies shall assist the committees in this joint study.  The committees shall report their recommendations to the legislature by January 1, 1997.

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