BILL REQ. #:  H-1066.1 

Read first time 02/11/13.   Referred to Committee on Transportation.

     AN ACT Relating to proof of financial responsibility or motor vehicle liability insurance; amending RCW 46.16A.130 and 46.30.040; reenacting and amending RCW 46.16A.110; adding new sections to chapter 46.29 RCW; and prescribing penalties.

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

Sec. 1   RCW 46.16A.130 and 2010 c 161 s 429 are each amended to read as follows:
     (1) The department shall notify motor vehicle owners of the liability insurance requirements described in RCW 46.30.020 through 46.30.040 at the time of issuance of an original motor vehicle registration and when the department sends a motor vehicle registration renewal notice.
     (2) When the department sends a vehicle registration renewal notice to a registered owner who has previously failed to respond to a random sampling program request under section 3 of this act, the department must also provide notice of the requirement for proof of meeting the financial responsibility requirements and payment of the fifty dollar penalty imposed under section 3 of this act in order to renew the vehicle registration.

Sec. 2   RCW 46.16A.110 and 2010 c 161 s 428 and 2010 c 8 s 9012 are each reenacted and amended to read as follows:
     (1) A registered owner or the registered owner's authorized representative must apply for a renewal vehicle registration to the department, county auditor or other agent, or subagent appointed by the director on a form approved by the director. The application for a renewal vehicle registration must be accompanied by a draft, money order, certified bank check, or cash for all fees and taxes required by law for the application for a renewal vehicle registration.
     (2) An application and the fees and taxes for a renewal vehicle registration must be handled in the same manner as an original vehicle registration application. The registration does not need to show the name of the lien holder when the application for renewal vehicle registration becomes the renewal registration upon validation.
     (3) A person expecting to be out of state during the normal renewal period of a vehicle registration may renew a vehicle registration and have license plates or tabs preissued by applying for a renewal as described in subsection (1) of this section. A vehicle registration may be renewed for the subsequent registration year up to eighteen months before the current expiration date and must be displayed from the date of issue or from the day of the expiration of the current registration year, whichever date is later.
     (4) Every applicant for a renewal vehicle registration due on or after January 1, 2014, who has previously failed to respond to a random sampling program request under section 3 of this act, must provide current proof of financial responsibility to operate a vehicle as required in RCW 46.30.020 and pay the fifty dollar penalty imposed under section 3 of this act. The department may adopt rules regarding valid proof of financial responsibility for persons renewing a vehicle registration and establish conditions under which the penalty imposed under section 3 of this act will not be assessed when a failure to respond to a random sampling request is beyond the control of the applicant. Conditions for not assessing the penalty may include, but are not limited to, delays caused by extended hospitalization or illness of the applicant.
     (5) An application for a renewal vehicle registration is not required for those vehicles owned, rented, or leased by:
     (a) The state of Washington, or by any county, city, town, school district, or other political subdivision of the state of Washington; or
     (b) A governing body of an Indian tribe located within this state and recognized as a governmental entity by the United States department of the interior.

NEW SECTION.  Sec. 3   A new section is added to chapter 46.29 RCW to read as follows:
     (1) The department shall establish a random sampling program to determine if registered vehicle owners meet the financial responsibility requirements to operate a vehicle as required in RCW 46.30.020.
     (2) The department shall select no more than three percent of registered vehicles per year in monthly increments and send the registered owner of each vehicle selected a form requesting that the owner provide proof of financial responsibility to operate a vehicle as required in RCW 46.30.020 for a randomly selected date during the last registration period.
     (3) If the registered owner fails to provide proof of financial responsibility to operate a vehicle as required in RCW 46.30.020, as requested by the department, within forty-five days of the date shown on the request, the registered owner must be assessed a penalty of fifty dollars to be collected before the registered owner may renew the vehicle registration.
     (4) The department shall administer and collect the fifty dollar penalty. The department shall deduct an amount equal to the administration and collection expenses. The department shall deposit any remaining proceeds under this subsection to the financial responsibility education account created in section 4 of this act for use in public information campaigns to educate the public regarding the financial responsibility requirements under this chapter and chapter 46.30 RCW.

NEW SECTION.  Sec. 4   A new section is added to chapter 46.29 RCW to read as follows:
     The financial responsibility education account is created in the custody of the state treasurer. After the deduction of administration and collection expenses incurred by the department, all receipts from the fifty dollar penalty imposed under section 3 of this act must be deposited into the account. Expenditures from the account may be used only for public information campaigns to educate the public regarding the financial responsibility requirements under this chapter and chapter 46.30 RCW. Only the director of the department of licensing or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

Sec. 5   RCW 46.30.040 and 1991 sp.s. c 25 s 2 are each amended to read as follows:
     Any person who knowingly provides false evidence of financial responsibility to a law enforcement officer ((or)), to a court, or to the department of licensing on an application for renewal of a vehicle registration, including an expired or canceled insurance policy, bond, or certificate of deposit is guilty of a misdemeanor.