H. B. No. 58 As Introduced

As Introduced

127th General Assembly

Regular Session

2007-2008

H. B. No. 58

Representative Combs

Cosponsors: Representatives Uecker, Evans, Fende, Wagner, Webster

A BILL

To enact section 4509.106 of the Revised Code to 1
require generally any person who cancels a motor 2
vehicle liability insurance policy to obtain a 3
replacement policy or other proof of financial 4
responsibility, and to require motor vehicle 5
liability insurers to report to the Bureau of 6
Motor Vehicles the names and addresses of persons 7
whose policies are canceled or lapse. 8

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

       Section 1. That section 4509.106 of the Revised Code be 9
enacted to read as follows: 10

       Sec. 4509.106. (A)(1) Each insurer that delivers, issues for 11
delivery, or renews in this state insurance policies that provide 12
proof of financial responsibility under section 4509.101 of the 13
Revised Code shall furnish the bureau of motor vehicles with the 14
names and addresses, as shown in its records, of both of the 15
following: 16

        (a) All persons to whom it issues such policies of insurance; 17

        (b) All persons who cancel such policies of theirs or allow 18
their policies to lapse through failure to pay the premium due. 19

        (2) Each insurer shall furnish the bureau with the 20
information described in division (A)(1) of this section not later 21
than five business days after the date of issuance of the policy 22
of insurance or the date of cancellation or lapsing, as the case 23
may be. 24

        (3) The registrar of motor vehicles may require such names 25
and addresses to be sent to the bureau via electronic means. 26

        (B) Subject to the defenses specified in division (E)(1)(b) 27
of this section, no person to whom this state has issued a 28
driver's license or commercial driver's license or a certificate 29
of registration for a motor vehicle shall cancel or fail to pay 30
the premium due on a policy of insurance covering the person's 31
operation of a motor vehicle unless the person does either of the 32
following: 33

        (1) Replaces the policy of insurance with other insurance or 34
proof of financial responsibility that satisfies the requirements 35
of section 4509.101 of the Revised Code. The person shall notify 36
any insurer that issues a replacement policy of the cancellation 37
or lapse of the prior policy. 38

        (2) Surrenders the person's driver's license, commercial 39
driver's license, or motor vehicle certificate of registration and 40
license plates to the registrar as provided in division (A)(4) of 41
section 4509.101 of the Revised Code. 42

        (C)(1) The bureau shall monitor the name of any person who 43
cancels the person's policy of insurance that provides proof of 44
financial responsibility or allows such policy of the person to 45
lapse through failure to pay the premium due. If, within thirty 46
days after the date of cancellation or lapsing, the bureau does 47
not receive information from an insurer that such a person has 48
replaced the canceled or lapsed policy of insurance with another 49
such policy or the person does not secure another form of proof of 50
financial responsibility that satisfies the requirements of 51
section 4509.101 of the Revised Code, the registrar shall issue an 52
order suspending the person's driver's or commercial driver's 53
license. The order shall be identical to an order imposing the 54
penalties described in division (A)(2)(a), (b), or (c) of section 55
4509.101 of the Revised Code, as appropriate, and an order 56
described in division (A)(2)(d) of that section. The registrar 57
shall send written notification to the person at the person's last 58
known address as shown on the records of the bureau. The person, 59
within ten days after the date of the mailing of the notification, 60
shall surrender to the registrar or a deputy registrar, in the 61
manner set forth in division (A)(4) of section 4509.101 of the 62
Revised Code, any driver's or commercial driver's license under an 63
order of suspension or any certificate of registration and license 64
plates under an order of impoundment. 65

        (2) Except as provided in division (D) or (E) of this 66
section, the registrar shall not restore any operating privileges, 67
motor vehicle certificate of registration, or registration rights 68
suspended under this section, return any driver's or commercial 69
driver's license, certificate of registration, or license plates 70
impounded under this section, reissue license plates under section 71
4503.232 of the Revised Code if the registrar destroyed the 72
impounded license plates under that section, or reissue a driver's 73
or commercial driver's license under section 4510.52 of the 74
Revised Code if the registrar destroyed the suspended license 75
under that section, unless the rights are not subject to 76
suspension or revocation under any other law and unless the 77
person, in addition to complying with all other conditions 78
required by law for reinstatement of the operating privileges or 79
registration rights, does all of the following: 80

        (a) Pays a financial responsibility reinstatement fee of 81
seventy-five dollars if the driver's or commercial driver's 82
license suspension order that was issued was identical to an order 83
imposing the penalties described in division (A)(2)(a) of section 84
4509.101 of the Revised Code, two hundred fifty dollars if the 85
suspension order was identical to an order imposing the penalties 86
described in division (A)(2)(b) of that section, and five hundred 87
dollars if the suspension order was identical to an order imposing 88
the penalties described in division (A)(2)(c) of that section; 89

        (b) If the person did not voluntarily surrender the license, 90
certificate of registration, or license plates in compliance with 91
the order, pays a financial responsibility nonvoluntary compliance 92
fee in an amount, not to exceed fifty dollars, determined by the 93
registrar; 94

        (c) Files and continuously maintains proof of financial 95
responsibility under sections 4509.44 to 4509.67 of the Revised 96
Code. 97

        (3) The registrar shall issue any order under division (C)(1) 98
of this section without a hearing. Any person adversely affected 99
by the order, within ten days after the issuance of the order, may 100
request an administrative hearing before the registrar, who shall 101
provide the person with an opportunity for a hearing in accordance 102
with division (C)(3) of this section. A request for a hearing does 103
not operate as a suspension of the order. The scope of the hearing 104
shall be limited to whether the person in fact has been issued by 105
this state a driver's or commercial driver's license or a 106
certificate of registration for a motor vehicle, canceled or 107
failed to pay the premium due on a policy of insurance covering 108
the person's operation of a motor vehicle, and failed to replace 109
the policy of insurance with other insurance or proof of financial 110
responsibility that satisfies the requirements of section 4509.101 111
of the Revised Code. 112

        The registrar shall determine the date, time, and place of 113
the hearing, provided that the hearing shall be held, and an order 114
issued or findings made, within thirty days after the registrar 115
receives a request for a hearing. If the person so requests in 116
writing, the registrar may designate as the place of hearing the 117
county seat of the county in which the person resides or a place 118
within fifty miles of the person's residence. The person shall pay 119
the cost of the hearing before the registrar if the registrar's 120
order of suspension or impoundment is upheld. 121

        (D) If the registrar issues an order under division (C)(1) of 122
this section and the registrar, upon a showing of proof of 123
financial responsibility, determines that the person was in 124
compliance with division (B)(1) of this section at the time of 125
issuance of the order, the registrar shall do both of the 126
following: 127

        (1) Terminate the order of suspension or impoundment; 128

        (2) Restore the operating privileges and registration rights 129
of the person without payment of the fees established in divisions 130
(C)(2)(a) and (b) of this section and without requiring that the 131
person file and continuously maintain proof of financial 132
responsibility under sections 4509.44 to 4509.67 of the Revised 133
Code as prescribed in division (C)(2)(c) of this section. 134

        Such a determination may be made at any time without a 135
hearing. 136

        (E)(1) The registrar may terminate any suspension imposed 137
upon a person under this section and not require the person to 138
comply with divisions (C)(2)(a), (b), and (c) of this section if 139
the registrar with or without a hearing determines that the person 140
has established by clear and convincing evidence that all of the 141
following apply: 142

        (a) The person customarily maintains proof of financial 143
responsibility. 144

        (b) Proof of financial responsibility was not maintained for 145
the motor vehicle for one of the following reasons: 146

        (i) The motor vehicle was inoperable. 147

        (ii) The motor vehicle is operated only seasonally and the 148
date on which the motor vehicle policy of insurance covering the 149
motor vehicle was canceled or lapsed was outside the season of 150
operation. 151

        (iii) The motor vehicle was sold or otherwise transferred to 152
another person and was not replaced with another motor vehicle; 153

        (iv) A person other than the motor vehicle owner was at fault 154
for the lapse of proof of financial responsibility through no 155
fault of the owner. 156

        (v) The lapse of proof of financial responsibility was caused 157
by excusable neglect under circumstances that are not likely to 158
recur and do not suggest a purpose to evade the requirements of 159
this chapter. 160

        (2) If clear and convincing evidence is shown, the registrar 161
shall grant a person relief for a reason specified in division 162
(E)(1)(b)(i), (ii), or (iii) of this section. The registrar shall 163
grant a person relief for a reason specified in division 164
(E)(1)(b)(iv) or (v) of this section only if the person has not 165
previously been granted relief under division (E)(1)(b)(iv) or (v) 166
of this section. 167

        (F) The registrar shall adopt rules in accordance with 168
Chapter 119. of the Revised Code that are necessary to administer 169
and enforce this section. The rules shall include procedures for 170
the surrender of license plates upon failure to maintain proof of 171
financial responsibility and provisions relating to reinstatement 172
of registration rights, acceptable forms of proof of financial 173
responsibility, and verification of the existence of financial 174
responsibility during the period of registration. 175

Section 1. That section 4509.106 of the Revised Code be	9
enacted to read as follows:	10

Sec. 4509.106. (A)(1) Each insurer that delivers, issues for	11
delivery, or renews in this state insurance policies that provide	12
proof of financial responsibility under section 4509.101 of the	13
Revised Code shall furnish the bureau of motor vehicles with the	14
names and addresses, as shown in its records, of both of the	15
following:	16

(b) All persons who cancel such policies of theirs or allow	18
their policies to lapse through failure to pay the premium due.	19

(2) Each insurer shall furnish the bureau with the	20
information described in division (A)(1) of this section not later	21
than five business days after the date of issuance of the policy	22
of insurance or the date of cancellation or lapsing, as the case	23
may be.	24

(3) The registrar of motor vehicles may require such names	25
and addresses to be sent to the bureau via electronic means.	26

(B) Subject to the defenses specified in division (E)(1)(b)	27
of this section, no person to whom this state has issued a	28
driver's license or commercial driver's license or a certificate	29
of registration for a motor vehicle shall cancel or fail to pay	30
the premium due on a policy of insurance covering the person's	31
operation of a motor vehicle unless the person does either of the	32
following:	33

(1) Replaces the policy of insurance with other insurance or	34
proof of financial responsibility that satisfies the requirements	35
of section 4509.101 of the Revised Code. The person shall notify	36
any insurer that issues a replacement policy of the cancellation	37
or lapse of the prior policy.	38

(2) Surrenders the person's driver's license, commercial	39
driver's license, or motor vehicle certificate of registration and	40
license plates to the registrar as provided in division (A)(4) of	41
section 4509.101 of the Revised Code.	42

(C)(1) The bureau shall monitor the name of any person who	43
cancels the person's policy of insurance that provides proof of	44
financial responsibility or allows such policy of the person to	45
lapse through failure to pay the premium due. If, within thirty	46
days after the date of cancellation or lapsing, the bureau does	47
not receive information from an insurer that such a person has	48
replaced the canceled or lapsed policy of insurance with another	49
such policy or the person does not secure another form of proof of	50
financial responsibility that satisfies the requirements of	51
section 4509.101 of the Revised Code, the registrar shall issue an	52
order suspending the person's driver's or commercial driver's	53
license. The order shall be identical to an order imposing the	54
penalties described in division (A)(2)(a), (b), or (c) of section	55
4509.101 of the Revised Code, as appropriate, and an order	56
described in division (A)(2)(d) of that section. The registrar	57
shall send written notification to the person at the person's last	58
known address as shown on the records of the bureau. The person,	59
within ten days after the date of the mailing of the notification,	60
shall surrender to the registrar or a deputy registrar, in the	61
manner set forth in division (A)(4) of section 4509.101 of the	62
Revised Code, any driver's or commercial driver's license under an	63
order of suspension or any certificate of registration and license	64
plates under an order of impoundment.	65

(2) Except as provided in division (D) or (E) of this	66
section, the registrar shall not restore any operating privileges,	67
motor vehicle certificate of registration, or registration rights	68
suspended under this section, return any driver's or commercial	69
driver's license, certificate of registration, or license plates	70
impounded under this section, reissue license plates under section	71
4503.232 of the Revised Code if the registrar destroyed the	72
impounded license plates under that section, or reissue a driver's	73
or commercial driver's license under section 4510.52 of the	74
Revised Code if the registrar destroyed the suspended license	75
under that section, unless the rights are not subject to	76
suspension or revocation under any other law and unless the	77
person, in addition to complying with all other conditions	78
required by law for reinstatement of the operating privileges or	79
registration rights, does all of the following:	80

(a) Pays a financial responsibility reinstatement fee of	81
seventy-five dollars if the driver's or commercial driver's	82
license suspension order that was issued was identical to an order	83
imposing the penalties described in division (A)(2)(a) of section	84
4509.101 of the Revised Code, two hundred fifty dollars if the	85
suspension order was identical to an order imposing the penalties	86
described in division (A)(2)(b) of that section, and five hundred	87
dollars if the suspension order was identical to an order imposing	88
the penalties described in division (A)(2)(c) of that section;	89

(b) If the person did not voluntarily surrender the license,	90
certificate of registration, or license plates in compliance with	91
the order, pays a financial responsibility nonvoluntary compliance	92
fee in an amount, not to exceed fifty dollars, determined by the	93
registrar;	94

(c) Files and continuously maintains proof of financial	95
responsibility under sections 4509.44 to 4509.67 of the Revised	96
Code.	97

(3) The registrar shall issue any order under division (C)(1)	98
of this section without a hearing. Any person adversely affected	99
by the order, within ten days after the issuance of the order, may	100
request an administrative hearing before the registrar, who shall	101
provide the person with an opportunity for a hearing in accordance	102
with division (C)(3) of this section. A request for a hearing does	103
not operate as a suspension of the order. The scope of the hearing	104
shall be limited to whether the person in fact has been issued by	105
this state a driver's or commercial driver's license or a	106
certificate of registration for a motor vehicle, canceled or	107
failed to pay the premium due on a policy of insurance covering	108
the person's operation of a motor vehicle, and failed to replace	109
the policy of insurance with other insurance or proof of financial	110
responsibility that satisfies the requirements of section 4509.101	111
of the Revised Code.	112

The registrar shall determine the date, time, and place of	113
the hearing, provided that the hearing shall be held, and an order	114
issued or findings made, within thirty days after the registrar	115
receives a request for a hearing. If the person so requests in	116
writing, the registrar may designate as the place of hearing the	117
county seat of the county in which the person resides or a place	118
within fifty miles of the person's residence. The person shall pay	119
the cost of the hearing before the registrar if the registrar's	120
order of suspension or impoundment is upheld.	121

(D) If the registrar issues an order under division (C)(1) of	122
this section and the registrar, upon a showing of proof of	123
financial responsibility, determines that the person was in	124
compliance with division (B)(1) of this section at the time of	125
issuance of the order, the registrar shall do both of the	126
following:	127

(2) Restore the operating privileges and registration rights	129
of the person without payment of the fees established in divisions	130
(C)(2)(a) and (b) of this section and without requiring that the	131
person file and continuously maintain proof of financial	132
responsibility under sections 4509.44 to 4509.67 of the Revised	133
Code as prescribed in division (C)(2)(c) of this section.	134

Such a determination may be made at any time without a	135
hearing.	136

(E)(1) The registrar may terminate any suspension imposed	137
upon a person under this section and not require the person to	138
comply with divisions (C)(2)(a), (b), and (c) of this section if	139
the registrar with or without a hearing determines that the person	140
has established by clear and convincing evidence that all of the	141
following apply:	142

(a) The person customarily maintains proof of financial	143
responsibility.	144

(b) Proof of financial responsibility was not maintained for	145
the motor vehicle for one of the following reasons:	146

(ii) The motor vehicle is operated only seasonally and the	148
date on which the motor vehicle policy of insurance covering the	149
motor vehicle was canceled or lapsed was outside the season of	150
operation.	151

(iii) The motor vehicle was sold or otherwise transferred to	152
another person and was not replaced with another motor vehicle;	153

(iv) A person other than the motor vehicle owner was at fault	154
for the lapse of proof of financial responsibility through no	155
fault of the owner.	156

(v) The lapse of proof of financial responsibility was caused	157
by excusable neglect under circumstances that are not likely to	158
recur and do not suggest a purpose to evade the requirements of	159
this chapter.	160

(2) If clear and convincing evidence is shown, the registrar	161
shall grant a person relief for a reason specified in division	162
(E)(1)(b)(i), (ii), or (iii) of this section. The registrar shall	163
grant a person relief for a reason specified in division	164
(E)(1)(b)(iv) or (v) of this section only if the person has not	165
previously been granted relief under division (E)(1)(b)(iv) or (v)	166
of this section.	167

(F) The registrar shall adopt rules in accordance with	168
Chapter 119. of the Revised Code that are necessary to administer	169
and enforce this section. The rules shall include procedures for	170
the surrender of license plates upon failure to maintain proof of	171
financial responsibility and provisions relating to reinstatement	172
of registration rights, acceptable forms of proof of financial	173
responsibility, and verification of the existence of financial	174
responsibility during the period of registration.	175