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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(1) Terminate the order of suspension or impoundment;

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

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

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

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

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

(i) The motor vehicle was inoperable.

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

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

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

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

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

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