As Introduced

127th General Assembly
Regular Session
2007-2008
H. B. No. 307


Representative Williams, S. 


A BILL
To amend sections 4503.20 and 4509.101 of the Revised 1
Code to require the Bureau of Motor Vehicles to 2
establish a procedure allowing courts to apply for 3
money from the Financial Responsibility Compliance 4
Fund to cover costs incurred by the courts in 5
connection with the enforcement of the traffic 6
laws.7


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That sections 4503.20 and 4509.101 of the Revised 8
Code be amended to read as follows:9

       Sec. 4503.20.  (A) As used in this section:10

       (1) "Dealer engaged in the business of leasing motor11
vehicles" means any person engaged in the business of regularly12
making available, offering to make available, or arranging for13
another person to use a motor vehicle pursuant to a bailment,14
lease, or other contractual arrangement.15

       (2) "Motor vehicle" has the meaning set forth in section16
4509.01 of the Revised Code.17

       (B) An application for the registration of a motor vehicle18
shall contain a statement, to be signed by the applicant either 19
manually or by electronic signature, that does all of the 20
following:21

       (1) States that the applicant maintains, or has maintained on22
the applicant's behalf, proof of financial responsibility at the 23
time of application, and will not operate a motor vehicle in this 24
state, unless the applicant maintains, with respect to that motor 25
vehicle or the operation of such vehicle, proof of financial 26
responsibility;27

       (2) Contains a brief summary of the purposes and operation of 28
section 4509.101 of the Revised Code, the rights and duties of the 29
applicant under that section, and the penalties for violation of 30
that section;31

       (3) Warns the applicant that the financial responsibility law 32
does not prevent the possibility that the applicant may be33
involved in an accident with an owner or operator of a motor34
vehicle who is without proof of financial responsibility.35

       (C)(1) A person who purchases any motor vehicle from a36
licensed motor vehicle dealer who agrees to make application for37
registration of the motor vehicle on behalf of the purchaser shall 38
sign statements that comply with divisions (B) and (F) of this39
section. The dealer shall submit the statements to the deputy40
registrar where the dealer has agreed to make application for41
registration on behalf of the person.42

       (2) In the case of a person who leases any motor vehicle from 43
a dealer engaged in the business of leasing motor vehicles who 44
agrees to make application for registration of the motor vehicle 45
on behalf of the lessee, the person shall sign a statement that 46
complies with division (B) of this section, and the dealer shall 47
do either of the following:48

       (a) Submit the statement signed by the person to the deputy 49
registrar where the dealer has agreed to make application for 50
registration on behalf of the person;51

       (b) Sign and submit a statement to the deputy registrar that 52
certifies that a statement has been signed and filed with the 53
dealer or incorporated into the lease.54

       The dealer shall submit to the registrar or deputy registrar 55
to whom the dealer submits the application for registration a 56
statement signed by the person that complies with division (F) of 57
this section.58

       (D) The registrar of motor vehicles shall prescribe the form 59
of the statements required under divisions (B), (C), and (F) of60
this section, and the manner or manners in which the statements61
required under divisions (B) and (F) of this section shall be 62
presented to the applicant. Any statement that is required under 63
divisions (B), (C), and (F) of this section shall be designed to64
enable the applicant to retain a copy of it.65

       (E) Nothing within this section shall be construed to excuse 66
a violation of section 4509.101 of the Revised Code. A motor 67
vehicle dealer who makes application for the registration of a 68
motor vehicle on behalf of the purchaser or lessee of the motor 69
vehicle is not liable in damages in any civil action on account of 70
the act of making such application for registration or the content 71
of any such application for registration.72

       (F) In addition to the statements required by divisions (B) 73
and (C) of this section, a person who makes application for 74
registration of a motor vehicle shall be furnished with a form 75
that lists in plain language all the possible penalties to which a 76
person could be subject for a violation of the financial77
responsibility law, including driver's license suspensions; all 78
fees, including nonvoluntary compliance and reinstatement fees; 79
and vehicle immobilization or impoundment. The person shall read 80
the form and either manually or by electronic signature sign the 81
form, which shall be submitted along with the application for 82
registration as provided in this section. The form shall be 83
retained by the registrar or deputy registrar who issues the motor 84
vehicle registration or the registrar's or deputy registrar's 85
successor for a period of two years from the date of issuance of 86
the registration.87

       (G) Upon the registration of a motor vehicle, the owner of 88
the motor vehicle is deemed to have agreed to the production of 89
proof of financial responsibility by the owner or the operator of 90
the motor vehicle, upon the request of a peace officer or state 91
highway patrol trooper made in accordance with division (E)(D)(2) 92
of section 4509.101 of the Revised Code.93

       (H) The registrar shall adopt rules governing the renewal of94
motor vehicle registrations by electronic means and the completion 95
and submission of statements that comply with divisions (B) and 96
(F) of this section. The registrar shall adopt the rules 97
prescribed by this division in accordance with Chapter 119. of the 98
Revised Code.99

       Sec. 4509.101.  (A)(1) No person shall operate, or permit the 100
operation of, a motor vehicle in this state, unless proof of101
financial responsibility is maintained continuously throughout the102
registration period with respect to that vehicle, or, in the case103
of a driver who is not the owner, with respect to that driver's104
operation of that vehicle.105

       (2) Whoever violates division (A)(1) of this section shall be 106
subject to the following civil penalties:107

       (a) Subject to divisions (A)(2)(b) and (c) of this section, a 108
class E suspension of the person's driver's license, commercial109
driver's license, temporary instruction permit, probationary110
license, or nonresident operating privilege for the period of time111
specified in division (B)(5) of section 4510.02 of the Revised112
Code and impoundment of the person's license. The court may grant113
limited driving privileges to the person only if the person114
presents proof of financial responsibility and has complied with115
division (A)(5) of this section.116

       (b) If, within five years of the violation, the person's117
operating privileges are again suspended and the person's license118
again is impounded for a violation of division (A)(1) of this119
section, a class C suspension of the person's driver's license,120
commercial driver's license, temporary instruction permit,121
probationary license, or nonresident operating privilege for the122
period of time specified in division (B)(3) of section 4510.02 of123
the Revised Code. The court may grant limited driving privileges124
to the person only if the person presents proof of financial125
responsibility and has complied with division (A)(5) of this126
section, and no court may grant limited driving privileges for the127
first fifteen days of the suspension.128

       (c) If, within five years of the violation, the person's129
operating privileges are suspended and the person's license is130
impounded two or more times for a violation of division (A)(1) of131
this section, a class B suspension of the person's driver's132
license, commercial driver's license, temporary instruction133
permit, probationary license, or nonresident operating privilege134
for the period of time specified in division (B)(2) of section135
4510.02 of the Revised Code. No court may grant limited driving136
privileges during the suspension.137

       (d) In addition to the suspension of an owner's license under 138
division (A)(2)(a), (b), or (c) of this section, the suspension of 139
the rights of the owner to register the motor vehicle and the140
impoundment of the owner's certificate of registration and license 141
plates until the owner complies with division (A)(5) of this 142
section.143

       (3) A person to whom this state has issued a certificate of144
registration for a motor vehicle or a license to operate a motor145
vehicle or who is determined to have operated any motor vehicle or146
permitted the operation in this state of a motor vehicle owned by147
the person shall be required to verify the existence of proof of148
financial responsibility covering the operation of the motor149
vehicle or the person's operation of the motor vehicle under any150
of the following circumstances:151

       (a) The person or a motor vehicle owned by the person is152
involved in a traffic accident that requires the filing of an153
accident report under section 4509.06 of the Revised Code.154

       (b) The person receives a traffic ticket indicating that155
proof of the maintenance of financial responsibility was not156
produced upon the request of a peace officer or state highway157
patrol trooper made in accordance with division (D)(2) of this158
section.159

       (c) Whenever, in accordance with rules adopted by the160
registrar, the person is randomly selected by the registrar and161
requested to provide such verification.162

       (4) An order of the registrar that suspends and impounds a163
license or registration, or both, shall state the date on or164
before which the person is required to surrender the person's165
license or certificate of registration and license plates. The166
person is deemed to have surrendered the license or certificate of167
registration and license plates, in compliance with the order, if168
the person does either of the following:169

       (a) On or before the date specified in the order, personally170
delivers the license or certificate of registration and license171
plates, or causes the delivery of the items, to the registrar;172

       (b) Mails the license or certificate of registration and173
license plates to the registrar in an envelope or container174
bearing a postmark showing a date no later than the date specified175
in the order.176

       (5) Except as provided in division (A)(6) or (L) of this177
section, the registrar shall not restore any operating privileges178
or registration rights suspended under this section, return any179
license, certificate of registration, or license plates impounded180
under this section, or reissue license plates under section181
4503.232 of the Revised Code, if the registrar destroyed the182
impounded license plates under that section, or reissue a license183
under section 4510.52 of the Revised Code, if the registrar184
destroyed the suspended license under that section, unless the185
rights are not subject to suspension or revocation under any other186
law and unless the person, in addition to complying with all other187
conditions required by law for reinstatement of the operating188
privileges or registration rights, complies with all of the189
following:190

       (a) Pays a financial responsibility reinstatement fee of191
seventy-five dollars for the first violation of division (A)(1) of192
this section, two hundred fifty dollars for a second violation of193
that division, and five hundred dollars for a third or subsequent194
violation of that division;195

       (b) If the person has not voluntarily surrendered the196
license, certificate, or license plates in compliance with the197
order, pays a financial responsibility nonvoluntary compliance fee198
in an amount, not to exceed fifty dollars, determined by the199
registrar;200

       (c) Files and continuously maintains proof of financial201
responsibility under sections 4509.44 to 4509.65 of the Revised202
Code.203

       (6) If the registrar issues an order under division (A)(2) of 204
this section resulting from the failure of a person to respond to 205
a financial responsibility random verification request under206
division (A)(3)(c) of this section and the person successfully207
maintains an affirmative defense to a violation of section 4510.16 208
of the Revised Code or is determined by the registrar or a deputy209
registrar to have been in compliance with division (A)(1) of this210
section at the time of the initial financial responsibility random211
verification request, the registrar shall do both of the 212
following:213

       (a) Terminate the order of suspension or impoundment;214

       (b) Restore the operating privileges and registration rights215
of the person without payment of the fees established in divisions216
(A)(5)(a) and (b) of this section and without a requirement to217
file proof of financial responsibility.218

       (B)(1) Every party required to file an accident report under219
section 4509.06 of the Revised Code also shall include with the220
report a document described in division (G)(1) of this section.221

       If the registrar determines, within forty-five days after the222
report is filed, that an operator or owner has violated division223
(A)(1) of this section, the registrar shall do all of the224
following:225

       (a) Order the impoundment, with respect to the motor vehicle226
involved, required under division (A)(2)(d) of this section, of227
the certificate of registration and license plates of any owner228
who has violated division (A)(1) of this section;229

       (b) Order the suspension required under division (A)(2)(a),230
(b), or (c) of this section of the license of any operator or231
owner who has violated division (A)(1) of this section;232

       (c) Record the name and address of the person whose233
certificate of registration and license plates have been impounded234
or are under an order of impoundment, or whose license has been235
suspended or is under an order of suspension; the serial number of236
the person's license; the serial numbers of the person's237
certificate of registration and license plates; and the person's238
social security account number, if assigned, or, where the motor239
vehicle is used for hire or principally in connection with any240
established business, the person's federal taxpayer identification241
number. The information shall be recorded in such a manner that it 242
becomes a part of the person's permanent record, and assists the 243
registrar in monitoring compliance with the orders of suspension 244
or impoundment.245

       (d) Send written notification to every person to whom the246
order pertains, at the person's last known address as shown on the247
records of the bureau. The person, within ten days after the date248
of the mailing of the notification, shall surrender to the249
registrar, in a manner set forth in division (A)(4) of this250
section, any certificate of registration and registration plates251
under an order of impoundment, or any license under an order of252
suspension.253

       (2) The registrar shall issue any order under division (B)(1) 254
of this section without a hearing. Any person adversely affected 255
by the order, within ten days after the issuance of the order, may 256
request an administrative hearing before the registrar, who shall 257
provide the person with an opportunity for a hearing in accordance 258
with this paragraph. A request for a hearing does not operate as a 259
suspension of the order. The scope of the hearing shall be limited 260
to whether the person in fact demonstrated to the registrar proof 261
of financial responsibility in accordance with this section. The 262
registrar shall determine the date, time, and place of any 263
hearing, provided that the hearing shall be held, and an order 264
issued or findings made, within thirty days after the registrar 265
receives a request for a hearing. If requested by the person in 266
writing, the registrar may designate as the place of hearing the 267
county seat of the county in which the person resides or a place 268
within fifty miles of the person's residence. The person shall pay 269
the cost of the hearing before the registrar, if the registrar's 270
order of suspension or impoundment is upheld.271

       (C) Any order of suspension or impoundment issued under this272
section or division (B) of section 4509.37 of the Revised Code may273
be terminated at any time if the registrar determines upon a274
showing of proof of financial responsibility that the operator or275
owner of the motor vehicle was in compliance with division (A)(1)276
of this section at the time of the traffic offense, motor vehicle277
inspection, or accident that resulted in the order against the278
person. A determination may be made without a hearing. This279
division does not apply unless the person shows good cause for the280
person's failure to present satisfactory proof of financial281
responsibility to the registrar prior to the issuance of the282
order.283

       (D)(1) For the purpose of enforcing this section, every peace 284
officer is deemed an agent of the registrar.285

       (a) Except as provided in division (D)(1)(b) of this section, 286
any peace officer who, in the performance of the peace officer's 287
duties as authorized by law, becomes aware of a person whose 288
license is under an order of suspension, or whose certificate of 289
registration and license plates are under an order of impoundment, 290
pursuant to this section, may confiscate the license, certificate 291
of registration, and license plates, and return them to the292
registrar.293

       (b) Any peace officer who, in the performance of the peace294
officer's duties as authorized by law, becomes aware of a person295
whose license is under an order of suspension, or whose296
certificate of registration and license plates are under an order297
of impoundment resulting from failure to respond to a financial298
responsibility random verification, shall not, for that reason,299
arrest the owner or operator or seize the vehicle or license300
plates. Instead, the peace officer shall issue a citation for a301
violation of section 4510.16 of the Revised Code specifying the302
circumstances as failure to respond to a financial responsibility303
random verification.304

       (2) A peace officer shall request the owner or operator of a305
motor vehicle to produce proof of financial responsibility in a306
manner described in division (G) of this section at the time the307
peace officer acts to enforce the traffic laws of this state and308
during motor vehicle inspections conducted pursuant to section309
4513.02 of the Revised Code.310

       (3) A peace officer shall indicate on every traffic ticket311
whether the person receiving the traffic ticket produced proof of312
the maintenance of financial responsibility in response to the313
officer's request under division (D)(2) of this section. The314
peace officer shall inform every person who receives a traffic315
ticket and who has failed to produce proof of the maintenance of316
financial responsibility that the person must submit proof to the317
traffic violations bureau with any payment of a fine and costs for318
the ticketed violation or, if the person is to appear in court for319
the violation, the person must submit proof to the court.320

       (4)(a) If a person who has failed to produce proof of the321
maintenance of financial responsibility appears in court for a322
ticketed violation, the court may permit the defendant to present323
evidence of proof of financial responsibility to the court at such324
time and in such manner as the court determines to be necessary or325
appropriate. In a manner prescribed by the registrar, the clerk of 326
courts shall provide the registrar with the identity of any person 327
who fails to submit proof of the maintenance of financial 328
responsibility pursuant to division (D)(3) of this section.329

       (b) If a person who has failed to produce proof of the330
maintenance of financial responsibility also fails to submit that331
proof to the traffic violations bureau with payment of a fine and332
costs for the ticketed violation, the traffic violations bureau, 333
in a manner prescribed by the registrar, shall notify the 334
registrar of the identity of that person.335

       (5)(a) Upon receiving notice from a clerk of courts or336
traffic violations bureau pursuant to division (D)(4) of this337
section, the registrar shall order the suspension of the license338
of the person required under division (A)(2)(a), (b), or (c) of339
this section and the impoundment of the person's certificate of340
registration and license plates required under division (A)(2)(d)341
of this section, effective thirty days after the date of the342
mailing of notification. The registrar also shall notify the343
person that the person must present the registrar with proof of344
financial responsibility in accordance with this section,345
surrender to the registrar the person's certificate of346
registration, license plates, and license, or submit a statement347
subject to section 2921.13 of the Revised Code that the person did348
not operate or permit the operation of the motor vehicle at the349
time of the offense. Notification shall be in writing and shall350
be sent to the person at the person's last known address as shown351
on the records of the bureau of motor vehicles. The person,352
within fifteen days after the date of the mailing of 353
notification, shall present proof of financial responsibility, 354
surrender the certificate of registration, license plates, and 355
license to the registrar in a manner set forth in division (A)(4) 356
of this section, or submit the statement required under this 357
section together with other information the person considers 358
appropriate.359

       If the registrar does not receive proof or the person does360
not surrender the certificate of registration, license plates, and361
license, in accordance with this division, the registrar shall362
permit the order for the suspension of the license of the person363
and the impoundment of the person's certificate of registration364
and license plates to take effect.365

       (b) In the case of a person who presents, within the366
fifteen-day period, documents to show proof of financial367
responsibility, the registrar shall terminate the order of368
suspension and the impoundment of the registration and license369
plates required under division (A)(2)(d) of this section and shall370
send written notification to the person, at the person's last371
known address as shown on the records of the bureau.372

       (c) Any person adversely affected by the order of the373
registrar under division (D)(5)(a) or (b) of this section, within374
ten days after the issuance of the order, may request an375
administrative hearing before the registrar, who shall provide the376
person with an opportunity for a hearing in accordance with this377
paragraph. A request for a hearing does not operate as a378
suspension of the order. The scope of the hearing shall be limited 379
to whether, at the time of the hearing, the person presents proof 380
of financial responsibility covering the vehicle and whether the 381
person is eligible for an exemption in accordance with this 382
section or any rule adopted under it. The registrar shall 383
determine the date, time, and place of any hearing; provided, that 384
the hearing shall be held, and an order issued or findings made, 385
within thirty days after the registrar receives a request for a 386
hearing. If requested by the person in writing, the registrar may 387
designate as the place of hearing the county seat of the county in 388
which the person resides or a place within fifty miles of the 389
person's residence. Such person shall pay the cost of the hearing 390
before the registrar, if the registrar's order of suspension or 391
impoundment under division (D)(5)(a) or (b) of this section is 392
upheld.393

       (6) A peace officer may charge an owner or operator of a394
motor vehicle with a violation of section 4510.16 of the Revised395
Code when the owner or operator fails to show proof of the396
maintenance of financial responsibility pursuant to a peace397
officer's request under division (D)(2) of this section, if a398
check of the owner or operator's driving record indicates that the399
owner or operator, at the time of the operation of the motor400
vehicle, is required to file and maintain proof of financial401
responsibility under section 4509.45 of the Revised Code for a402
previous violation of this chapter.403

       (7) Any forms used by law enforcement agencies in404
administering this section shall be prescribed, supplied, and paid405
for by the registrar.406

       (8) No peace officer, law enforcement agency employing a407
peace officer, or political subdivision or governmental agency408
that employs a peace officer shall be liable in a civil action for409
damages or loss to persons arising out of the performance of any410
duty required or authorized by this section.411

       (9) As used in this division and divisions (E) and (G) of412
this section, "peace officer" has the meaning set forth in section413
2935.01 of the Revised Code.414

       (E)(1) All fees, except court costs, collected under this415
section shall be paid into the state treasury to the credit of the416
financial responsibility compliance fund. The financial417
responsibility compliance fund shall be used exclusively to cover418
costs incurred by the bureau in the administration of this section419
and sections 4503.20, 4507.212, and 4509.81 of the Revised Code,420
and incurred by any law enforcement agency employing any peace 421
officer who returnsin returning any license, certificate of422
registration, and license plates to the registrar pursuant to 423
division (C)(D)(1)(a) of this section and may be used to cover 424
costs incurred by the courts in connection with the enforcement 425
of traffic laws, except that the director of budget and 426
management may transfer excess money from the financial 427
responsibility compliance fund to the state bureau of motor 428
vehicles fund if the registrar determines that the amount of429
money in the financial responsibility compliance fund exceeds the430
amount required to cover such costs incurred by the bureau or a,431
law enforcement agencyagencies, and the courts and requests the 432
director to make the transfer.433

       All investment earnings of the financial responsibility434
compliance fund shall be credited to the fund.435

       (2) The bureau of motor vehicles shall establish a procedure 436
pursuant to which a court may apply to the bureau for money from 437
the financial responsibility compliance fund to cover the 438
administrative and other costs the court incurs in the court's 439
enforcement of the traffic laws of this state and of its 440
political subdivisions. The bureau shall make the final 441
determination regarding each application for money from the fund 442
within ninety days from the date the bureau receives the 443
application. The bureau may approve an application for full 444
funding, approve an application for partial funding, or reject 445
an application.446

       (F) Chapter 119. of the Revised Code applies to this section447
only to the extent that any provision in that chapter is not448
clearly inconsistent with this section.449

       (G)(1) The registrar, court, traffic violations bureau, or450
peace officer may require proof of financial responsibility to be451
demonstrated by use of a standard form prescribed by the452
registrar. If the use of a standard form is not required, a person 453
may demonstrate proof of financial responsibility under this 454
section by presenting to the traffic violations bureau, court, 455
registrar, or peace officer any of the following documents or a 456
copy of the documents:457

       (a) A financial responsibility identification card as458
provided in section 4509.103 of the Revised Code;459

       (b) A certificate of proof of financial responsibility on a460
form provided and approved by the registrar for the filing of an461
accident report required to be filed under section 4509.06 of the462
Revised Code;463

       (c) A policy of liability insurance, a declaration page of a464
policy of liability insurance, or liability bond, if the policy or465
bond complies with section 4509.20 or sections 4509.49 to 4509.61466
of the Revised Code;467

       (d) A bond or certification of the issuance of a bond as468
provided in section 4509.59 of the Revised Code;469

       (e) A certificate of deposit of money or securities as470
provided in section 4509.62 of the Revised Code;471

       (f) A certificate of self-insurance as provided in section472
4509.72 of the Revised Code.473

       (2) If a person fails to demonstrate proof of financial474
responsibility in a manner described in division (G)(1) of this475
section, the person may demonstrate proof of financial476
responsibility under this section by any other method that the477
court or the bureau, by reason of circumstances in a particular478
case, may consider appropriate.479

       (3) A motor carrier certificated by the interstate commerce480
commission or by the public utilities commission may demonstrate481
proof of financial responsibility by providing a statement482
designating the motor carrier's operating authority and averring483
that the insurance coverage required by the certificating484
authority is in full force and effect.485

       (4)(a) A finding by the registrar or court that a person is486
covered by proof of financial responsibility in the form of an487
insurance policy or surety bond is not binding upon the named488
insurer or surety or any of its officers, employees, agents, or489
representatives and has no legal effect except for the purpose of490
administering this section.491

       (b) The preparation and delivery of a financial492
responsibility identification card or any other document493
authorized to be used as proof of financial responsibility under494
this division does not do any of the following:495

       (i) Create any liability or estoppel against an insurer or496
surety, or any of its officers, employees, agents, or497
representatives;498

       (ii) Constitute an admission of the existence of, or of any499
liability or coverage under, any policy or bond;500

       (iii) Waive any defenses or counterclaims available to an501
insurer, surety, agent, employee, or representative in an action502
commenced by an insured or third-party claimant upon a cause of503
action alleged to have arisen under an insurance policy or surety504
bond or by reason of the preparation and delivery of a document505
for use as proof of financial responsibility.506

       (c) Whenever it is determined by a final judgment in a507
judicial proceeding that an insurer or surety, which has been508
named on a document accepted by a court or the registrar as proof509
of financial responsibility covering the operation of a motor510
vehicle at the time of an accident or offense, is not liable to511
pay a judgment for injuries or damages resulting from such512
operation, the registrar, notwithstanding any previous contrary513
finding, shall forthwith suspend the operating privileges and514
registration rights of the person against whom the judgment was515
rendered as provided in division (A)(2) of this section.516

       (H) In order for any document described in division (G)(1)(b) 517
of this section to be used for the demonstration of proof of 518
financial responsibility under this section, the document shall 519
state the name of the insured or obligor, the name of the insurer 520
or surety company, and the effective and expiration dates of the 521
financial responsibility, and designate by explicit description or 522
by appropriate reference all motor vehicles covered which may 523
include a reference to fleet insurance coverage.524

       (I) For purposes of this section, "owner" does not include a525
licensed motor vehicle leasing dealer as defined in section526
4517.01 of the Revised Code, but does include a motor vehicle527
renting dealer as defined in section 4549.65 of the Revised Code. 528
Nothing in this section or in section 4509.51 of the Revised Code529
shall be construed to prohibit a motor vehicle renting dealer from530
entering into a contractual agreement with a person whereby the531
person renting the motor vehicle agrees to be solely responsible532
for maintaining proof of financial responsibility, in accordance533
with this section, with respect to the operation, maintenance, or534
use of the motor vehicle during the period of the motor vehicle's535
rental.536

       (J) The purpose of this section is to require the maintenance 537
of proof of financial responsibility with respect to the operation 538
of motor vehicles on the highways of this state, so as to minimize 539
those situations in which persons are not compensated for injuries 540
and damages sustained in motor vehicle accidents. The general 541
assembly finds that this section contains reasonable civil 542
penalties and procedures for achieving this purpose.543

       (K) Nothing in this section shall be construed to be subject544
to section 4509.78 of the Revised Code.545

       (L)(1) The registrar may terminate any suspension imposed 546
under this section and not require the owner to comply with 547
divisions (A)(5)(a), (b), and (c) of this section if the registrar 548
with or without a hearing determines that the owner of the vehicle 549
has established by clear and convincing evidence that all of the550
following apply:551

       (a) The owner customarily maintains proof of financial552
responsibility.553

       (b) Proof of financial responsibility was not in effect for554
the vehicle on the date in question for one of the following555
reasons:556

       (i) The vehicle was inoperable.557

       (ii) The vehicle is operated only seasonally, and the date in558
question was outside the season of operation.559

       (iii) A person other than the vehicle owner or driver was at560
fault for the lapse of proof of financial responsibility through561
no fault of the owner or driver.562

       (iv) The lapse of proof of financial responsibility was563
caused by excusable neglect under circumstances that are not564
likely to recur and do not suggest a purpose to evade the565
requirements of this chapter.566

       (2) The registrar may grant an owner or driver relief for a 567
reason specified in division (L)(1)(b)(i) or (ii) of this section 568
whenever the owner or driver is randomly selected to verify the 569
existence of proof of financial responsibility for such a vehicle. 570
However, the registrar may grant an owner or driver relief for a 571
reason specified in division (L)(1)(b)(iii) or (iv) of this 572
section only if the owner or driver has not previously been 573
granted relief under division (L)(1)(b)(iii) or (iv) of this 574
section.575

       (M) The registrar shall adopt rules in accordance with576
Chapter 119. of the Revised Code that are necessary to administer577
and enforce this section. The rules shall include procedures for578
the surrender of license plates upon failure to maintain proof of579
financial responsibility and provisions relating to reinstatement580
of registration rights, acceptable forms of proof of financial581
responsibility, and verification of the existence of financial582
responsibility during the period of registration.583

       Section 2. That existing sections 4503.20 and 4509.101 of the 584
Revised Code are hereby repealed.585