BILL REQ. #:  S-0320.1 

Read first time 01/11/2007.   Referred to Committee on Transportation.

     AN ACT Relating to creating a surcharge on vehicle liability insurance policies to be used for additional emphasis patrols in high-accident-corridor locations; amending RCW 48.18.170 and 48.18.180; adding new sections to chapter 46.68 RCW; adding a new section to chapter 82.04 RCW; adding a new section to chapter 35.102 RCW; prescribing penalties; and providing an effective date.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 46.68 RCW to read as follows:
     (1) An annual surcharge of two dollars per motor vehicle must be imposed on every motor vehicle liability insurance policy issued or renewed on or after the effective date of this section. The surcharge must be paid by the policyholder to the insurer. The insurer shall collect the surcharge and remit it to the department of revenue in accordance with RCW 82.32.045, which will collect, administer, audit, and enforce the surcharge. All other applicable provisions of chapter 82.32 RCW have full force and application with respect to the surcharge imposed under this section. The office of the insurance commissioner shall provide to the department of revenue the information needed by the department of revenue to collect the surcharge. The surcharge is not to be considered premiums of the insurer and is not subject to premium taxes, however, nonpayment of the surcharge by the insured may be a valid reason for cancellation of the policy. The surcharge imposed on policyholders under this section is not subject to retaliatory tax provisions.
     (2) All insurers required to collect the surcharge under this section must register with the department of revenue under RCW 82.32.030.
     (3) Two-thirds of the proceeds from the surcharge must be deposited into the state patrol highway account created in RCW 46.68.030 to be used for additional emphasis patrols in high-accident-corridor locations on state routes; and the remainder must be deposited into the highway safety fund created in RCW 46.68.060 to be used to create a county road high-accident-corridor emphasis patrol program. The program must be administered by the Washington state traffic safety commission. County law enforcement may apply to the commission for emphasis patrols on specific high-accident-corridors within their county. The commission shall determine what criteria to use in awarding these emphasis patrols. The emphasis patrols shall be performed by the Washington state patrol at no cost to the county. For purposes of this section, "high-accident-corridor" means a highway corridor of one mile or more where a five-year analysis of collision history indicates that the section has higher than average collision and severity factors.

Sec. 2   RCW 48.18.170 and 1947 c 79 s .18.17 are each amended to read as follows:
     "Premium" as used in this code means all sums charged, received, or deposited as consideration for an insurance contract or the continuance thereof. "Premium" does not include the annual surcharge imposed under section 1 of this act. Any assessment, or any "membership," "policy," "survey," "inspection," "service" or similar fee or charge made by the insurer in consideration for an insurance contract is deemed part of the premium.

Sec. 3   RCW 48.18.180 and 1994 c 203 s 2 are each amended to read as follows:
     (1) The premium stated in the policy ((shall)) must be inclusive of all fees, charges, premiums, or other consideration charged for the insurance or for the procurement thereof.
     (2) No insurer or its officer, employee, agent, solicitor, or other representative ((shall)) may charge or receive any fee, compensation, or consideration for insurance, which is not included in the premium specified in the policy.
     (3) Each violation of this section is a gross misdemeanor, as provided in chapter 9A.20 RCW.
     (4) This section does not apply to a fee paid to a broker by an insured as provided in RCW 48.17.270.
     (5) This section does not apply to the surcharge imposed under section 1 of this act.

NEW SECTION.  Sec. 4   A new section is added to chapter 46.68 RCW to read as follows:
     (1) The surcharge required by section 1 of this act, to be collected by the insurer, shall be deemed to be held in trust by the insurer until paid to the department of revenue, and any insurer, who appropriates or converts the surcharge collected to the insurer's own use or to any use other than the payment of the surcharge to the extent that the money required to be collected is not available for payment on the due date, is guilty of a gross misdemeanor as provided in chapter 9A.20 RCW.
     (2) If any insurer fails to collect the surcharge imposed in section 1 of this act or, having collected the surcharge, fails to pay it to the department of revenue in the manner prescribed by this chapter, whether such failure is the result of the insurer's own acts or the result of acts or conditions beyond the insurer's control, the insurer shall, nevertheless, be personally liable to the state for the amount of the surcharge.
     (3) The amount of the surcharge, until paid by the insured to the insurer, constitutes a debt from the insured to the insurer and any insurer, who fails or refuses to collect the surcharge as required with intent to violate the provisions of this chapter or to gain some advantage or benefit, either direct or indirect, and any insured who refuses to pay any surcharge due under section 1 of this act, is guilty of a misdemeanor as provided in chapter 9A.20 RCW.

NEW SECTION.  Sec. 5   A new section is added to chapter 82.04 RCW to read as follows:
     This chapter may not apply to the surcharge imposed in section 1 of this act.

NEW SECTION.  Sec. 6   A new section is added to chapter 35.102 RCW to read as follows:
     Taxes imposed under the authority of this chapter may not apply to the surcharge imposed under section 1 of this act.

NEW SECTION.  Sec. 7   This act takes effect August 1, 2007.