HOUSE BILL REPORT

HB 277

BYRepresentatives Gallagher, Doty, Walk, Schmidt and P. King; by request of  Department of Licensing

Extending the time permitted for providing the department of licensing proof of financial responsibility.

House Committe on Transportation

Majority Report:     Do pass.  (25)

     Signed by Representatives Walk, Chair; Baugher, Vice Chair; Cantwell, Cooper, Dellwo, Doty, Fisch, Fisher, Gallagher, Hankins, Haugen, Heavey, Kremen, Meyers, Patrick, Prince, Schmidt, C. Smith, D. Sommers, Spanel, Vekich, J. Williams, K. Wilson, S. Wilson and Zellinsky.

House Staff:Terry Michalson (786-7315)

AS PASSED HOUSE FEBRUARY 16, 1987

BACKGROUND:

Drivers or owners of vehicles who have been convicted of or forfeited bail for certain offenses under the motor vehicle laws, or have failed to pay judgments, or have been involved in accidents resulting in bodily injury or death, or property damage of three hundred dollars or more to any one person, may be subject to filing proof of financial responsibility as well as a deposit of security.

Proof of financial responsibility is the ability to pay damages for liability for accidents which might occur after the date of the proof.  The amount of financial responsibility required by the Department is dependent upon injuries or damage suffered in any one accident.  The amount for a bodily injury or one death in an accident is twenty-five thousand dollars. An accident with two or more deaths requires a fifty thousand dollar amount. Injury to or destruction of property requires a ten thousand dollar amount.

The proof may be in the form of a certificate of insurance, a bond, a certificate of deposit of funds, or a certificate of self-insurance from a driver or owner meeting the criteria for a self-insurer.

Driver licenses or nonresident driving privileges shall be suspended, remain suspended or revoked unless proof of financial responsibility is provided to the Department of Licensing within ten days of the sending of the notice.

SUMMARY:

The allowable time for filing proof of financial responsibility is extended to sixty days from the sending of the notice by the Department of Licensing.

EFFECT OF SENATE AMENDMENT(S):  The allowable time for filing proof of financial responsibility is 20 days.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     Don Bonner, Department of Licensing.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Extending the period of time for securing proof of financial responsibility is necessary.  Securing a required coverage bond or surety commonly requires more time than the existing ten-day limit allows.

House Committee - Testimony Against: None Presented.

VOTE ON FINAL PASSAGE:

     Yeas 95; Absent 2; Excused 1

Absent:    Representatives Grimm and Wineberry

Excused:   Representative Grant