Bill Text: OH HB44 | 2009-2010 | 128th General Assembly | Introduced


Bill Title: And to repeal Section 3 of Am. Sub. S.B. 20 of the 120th General Assembly, as subsequently amended, to eliminate the financial responsibility random verification program of the Bureau of Motor Vehicles.

Spectrum: Moderate Partisan Bill (Republican 12-3)

Status: (Introduced - Dead) 2009-02-24 - To Insurance [HB44 Detail]

Download: Ohio-2009-HB44-Introduced.html
As Introduced

128th General Assembly
Regular Session
2009-2010
H. B. No. 44


Representatives Hagan, Huffman 

Cosponsors: Representatives Stautberg, Wachtmann, Uecker, Adams, J., Grossman, Mecklenborg, Winburn, Harris, Balderson, Jordan, Hackett, DeBose, Stebelton 



A BILL
To amend sections 4509.101 and 4510.04 of the Revised 1
Code and to repeal Section 3 of Am. Sub. S.B. 20 2
of the 120th General Assembly, as subsequently 3
amended, to eliminate the financial responsibility 4
random verification program of the Bureau of Motor 5
Vehicles.6


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

       Section 1. That sections 4509.101 and 4510.04 of the Revised 7
Code be amended to read as follows:8

       Sec. 4509.101.  (A)(1) No person shall operate, or permit the 9
operation of, a motor vehicle in this state, unless proof of10
financial responsibility is maintained continuously throughout the11
registration period with respect to that vehicle, or, in the case12
of a driver who is not the owner, with respect to that driver's13
operation of that vehicle.14

       (2) Whoever violates division (A)(1) of this section shall be 15
subject to the following civil penalties:16

       (a) Subject to divisions (A)(2)(b) and (c) of this section, a 17
class E suspension of the person's driver's license, commercial18
driver's license, temporary instruction permit, probationary19
license, or nonresident operating privilege for the period of time20
specified in division (B)(5) of section 4510.02 of the Revised21
Code and impoundment of the person's license. The court may grant22
limited driving privileges to the person only if the person23
presents proof of financial responsibility and has complied with24
division (A)(5) of this section.25

       (b) If, within five years of the violation, the person's26
operating privileges are again suspended and the person's license27
again is impounded for a violation of division (A)(1) of this28
section, a class C suspension of the person's driver's license,29
commercial driver's license, temporary instruction permit,30
probationary license, or nonresident operating privilege for the31
period of time specified in division (B)(3) of section 4510.02 of32
the Revised Code. The court may grant limited driving privileges33
to the person only if the person presents proof of financial34
responsibility and has complied with division (A)(5) of this35
section, and no court may grant limited driving privileges for the36
first fifteen days of the suspension.37

       (c) If, within five years of the violation, the person's38
operating privileges are suspended and the person's license is39
impounded two or more times for a violation of division (A)(1) of40
this section, a class B suspension of the person's driver's41
license, commercial driver's license, temporary instruction42
permit, probationary license, or nonresident operating privilege43
for the period of time specified in division (B)(2) of section44
4510.02 of the Revised Code. No court may grant limited driving45
privileges during the suspension.46

       (d) In addition to the suspension of an owner's license under 47
division (A)(2)(a), (b), or (c) of this section, the suspension of 48
the rights of the owner to register the motor vehicle and the49
impoundment of the owner's certificate of registration and license 50
plates until the owner complies with division (A)(5) of this 51
section.52

       (3) A person to whom this state has issued a certificate of53
registration for a motor vehicle or a license to operate a motor54
vehicle or who is determined to have operated any motor vehicle or55
permitted the operation in this state of a motor vehicle owned by56
the person shall be required to verify the existence of proof of57
financial responsibility covering the operation of the motor58
vehicle or the person's operation of the motor vehicle under any59
either of the following circumstances:60

       (a) The person or a motor vehicle owned by the person is61
involved in a traffic accident that requires the filing of an62
accident report under section 4509.06 of the Revised Code.63

       (b) The person receives a traffic ticket indicating that64
proof of the maintenance of financial responsibility was not65
produced upon the request of a peace officer or state highway66
patrol trooper made in accordance with division (D)(2) of this67
section.68

       (c) Whenever, in accordance with rules adopted by the69
registrar, the person is randomly selected by the registrar and70
requested to provide such verification.71

       (4) An order of the registrar that suspends and impounds a72
license or registration, or both, shall state the date on or73
before which the person is required to surrender the person's74
license or certificate of registration and license plates. The75
person is deemed to have surrendered the license or certificate of76
registration and license plates, in compliance with the order, if77
the person does either of the following:78

       (a) On or before the date specified in the order, personally79
delivers the license or certificate of registration and license80
plates, or causes the delivery of the items, to the registrar;81

       (b) Mails the license or certificate of registration and82
license plates to the registrar in an envelope or container83
bearing a postmark showing a date no later than the date specified84
in the order.85

       (5) Except as provided in division (A)(6) or (L) of this86
section, the registrar shall not restore any operating privileges87
or registration rights suspended under this section, return any88
license, certificate of registration, or license plates impounded89
under this section, or reissue license plates under section90
4503.232 of the Revised Code, if the registrar destroyed the91
impounded license plates under that section, or reissue a license92
under section 4510.52 of the Revised Code, if the registrar93
destroyed the suspended license under that section, unless the94
rights are not subject to suspension or revocation under any other95
law and unless the person, in addition to complying with all other96
conditions required by law for reinstatement of the operating97
privileges or registration rights, complies with all of the98
following:99

       (a) Pays a financial responsibility reinstatement fee of100
seventy-five dollars for the first violation of division (A)(1) of101
this section, two hundred fifty dollars for a second violation of102
that division, and five hundred dollars for a third or subsequent103
violation of that division;104

       (b) If the person has not voluntarily surrendered the105
license, certificate, or license plates in compliance with the106
order, pays a financial responsibility nonvoluntary compliance fee107
in an amount, not to exceed fifty dollars, determined by the108
registrar;109

       (c) Files and continuously maintains proof of financial110
responsibility under sections 4509.44 to 4509.65 of the Revised111
Code.112

       (6) If the registrar issues an order under division (A)(2) of 113
this section resulting from the failure of a person to respond to 114
a financial responsibility random verification request under115
division (A)(3)(c) of this section and the person successfully116
maintains an affirmative defense to a violation of section 4510.16 117
of the Revised Code or is determined by the registrar or a deputy118
registrar to have been in compliance with division (A)(1) of this119
section at the time of the initial financial responsibility random120
verification request, the registrar shall do both of the 121
following:122

       (a) Terminate the order of suspension or impoundment;123

       (b) Restore the operating privileges and registration rights124
of the person without payment of the fees established in divisions125
(A)(5)(a) and (b) of this section and without a requirement to126
file proof of financial responsibility.127

       (B)(1) Every party required to file an accident report under128
section 4509.06 of the Revised Code also shall include with the129
report a document described in division (G)(1) of this section.130

       If the registrar determines, within forty-five days after the131
report is filed, that an operator or owner has violated division132
(A)(1) of this section, the registrar shall do all of the133
following:134

       (a) Order the impoundment, with respect to the motor vehicle135
involved, required under division (A)(2)(d) of this section, of136
the certificate of registration and license plates of any owner137
who has violated division (A)(1) of this section;138

       (b) Order the suspension required under division (A)(2)(a),139
(b), or (c) of this section of the license of any operator or140
owner who has violated division (A)(1) of this section;141

       (c) Record the name and address of the person whose142
certificate of registration and license plates have been impounded143
or are under an order of impoundment, or whose license has been144
suspended or is under an order of suspension; the serial number of145
the person's license; the serial numbers of the person's146
certificate of registration and license plates; and the person's147
social security account number, if assigned, or, where the motor148
vehicle is used for hire or principally in connection with any149
established business, the person's federal taxpayer identification150
number. The information shall be recorded in such a manner that it 151
becomes a part of the person's permanent record, and assists the 152
registrar in monitoring compliance with the orders of suspension 153
or impoundment.154

       (d) Send written notification to every person to whom the155
order pertains, at the person's last known address as shown on the156
records of the bureau. The person, within ten days after the date157
of the mailing of the notification, shall surrender to the158
registrar, in a manner set forth in division (A)(4) of this159
section, any certificate of registration and registration plates160
under an order of impoundment, or any license under an order of161
suspension.162

       (2) The registrar shall issue any order under division (B)(1) 163
of this section without a hearing. Any person adversely affected 164
by the order, within ten days after the issuance of the order, may 165
request an administrative hearing before the registrar, who shall 166
provide the person with an opportunity for a hearing in accordance 167
with this paragraph. A request for a hearing does not operate as a 168
suspension of the order. The scope of the hearing shall be limited 169
to whether the person in fact demonstrated to the registrar proof 170
of financial responsibility in accordance with this section. The 171
registrar shall determine the date, time, and place of any 172
hearing, provided that the hearing shall be held, and an order 173
issued or findings made, within thirty days after the registrar 174
receives a request for a hearing. If requested by the person in 175
writing, the registrar may designate as the place of hearing the 176
county seat of the county in which the person resides or a place 177
within fifty miles of the person's residence. The person shall pay 178
the cost of the hearing before the registrar, if the registrar's 179
order of suspension or impoundment is upheld.180

       (C) Any order of suspension or impoundment issued under this181
section or division (B) of section 4509.37 of the Revised Code may182
be terminated at any time if the registrar determines upon a183
showing of proof of financial responsibility that the operator or184
owner of the motor vehicle was in compliance with division (A)(1)185
of this section at the time of the traffic offense, motor vehicle186
inspection, or accident that resulted in the order against the187
person. A determination may be made without a hearing. This188
division does not apply unless the person shows good cause for the189
person's failure to present satisfactory proof of financial190
responsibility to the registrar prior to the issuance of the191
order.192

       (D)(1)(a) For the purpose of enforcing this section, every193
peace officer is deemed an agent of the registrar.194

       (a) Except as provided in division (D)(1)(b) of this section, 195
any(b) Any peace officer who, in the performance of the peace196
officer's duties as authorized by law, becomes aware of a person197
whose license is under an order of suspension, or whose198
certificate of registration and license plates are under an order199
of impoundment, pursuant to this section, may confiscate the200
license, certificate of registration, and license plates, and201
return them to the registrar.202

       (b) Any peace officer who, in the performance of the peace203
officer's duties as authorized by law, becomes aware of a person204
whose license is under an order of suspension, or whose205
certificate of registration and license plates are under an order206
of impoundment resulting from failure to respond to a financial207
responsibility random verification, shall not, for that reason,208
arrest the owner or operator or seize the vehicle or license209
plates. Instead, the peace officer shall issue a citation for a210
violation of section 4510.16 of the Revised Code specifying the211
circumstances as failure to respond to a financial responsibility212
random verification.213

       (2) A peace officer shall request the owner or operator of a214
motor vehicle to produce proof of financial responsibility in a215
manner described in division (G) of this section at the time the216
peace officer acts to enforce the traffic laws of this state and217
during motor vehicle inspections conducted pursuant to section218
4513.02 of the Revised Code.219

       (3) A peace officer shall indicate on every traffic ticket220
whether the person receiving the traffic ticket produced proof of221
the maintenance of financial responsibility in response to the222
officer's request under division (D)(2) of this section. The223
peace officer shall inform every person who receives a traffic224
ticket and who has failed to produce proof of the maintenance of225
financial responsibility that the person must submit proof to the226
traffic violations bureau with any payment of a fine and costs for227
the ticketed violation or, if the person is to appear in court for228
the violation, the person must submit proof to the court.229

       (4)(a) If a person who has failed to produce proof of the230
maintenance of financial responsibility appears in court for a231
ticketed violation, the court may permit the defendant to present232
evidence of proof of financial responsibility to the court at such233
time and in such manner as the court determines to be necessary or234
appropriate. In a manner prescribed by the registrar, the clerk of 235
courts shall provide the registrar with the identity of any person 236
who fails to submit proof of the maintenance of financial 237
responsibility pursuant to division (D)(3) of this section.238

       (b) If a person who has failed to produce proof of the239
maintenance of financial responsibility also fails to submit that240
proof to the traffic violations bureau with payment of a fine and241
costs for the ticketed violation, the traffic violations bureau, 242
in a manner prescribed by the registrar, shall notify the 243
registrar of the identity of that person.244

       (5)(a) Upon receiving notice from a clerk of courts or245
traffic violations bureau pursuant to division (D)(4) of this246
section, the registrar shall order the suspension of the license247
of the person required under division (A)(2)(a), (b), or (c) of248
this section and the impoundment of the person's certificate of249
registration and license plates required under division (A)(2)(d)250
of this section, effective thirty days after the date of the251
mailing of notification. The registrar also shall notify the252
person that the person must present the registrar with proof of253
financial responsibility in accordance with this section,254
surrender to the registrar the person's certificate of255
registration, license plates, and license, or submit a statement256
subject to section 2921.13 of the Revised Code that the person did257
not operate or permit the operation of the motor vehicle at the258
time of the offense. Notification shall be in writing and shall259
be sent to the person at the person's last known address as shown260
on the records of the bureau of motor vehicles. The person, within 261
fifteen days after the date of the mailing of notification, shall 262
present proof of financial responsibility, surrender the263
certificate of registration, license plates, and license to the264
registrar in a manner set forth in division (A)(4) of this265
section, or submit the statement required under this section266
together with other information the person considers appropriate.267

       If the registrar does not receive proof or the person does268
not surrender the certificate of registration, license plates, and269
license, in accordance with this division, the registrar shall270
permit the order for the suspension of the license of the person271
and the impoundment of the person's certificate of registration272
and license plates to take effect.273

       (b) In the case of a person who presents, within the274
fifteen-day period, documents to show proof of financial275
responsibility, the registrar shall terminate the order of276
suspension and the impoundment of the registration and license277
plates required under division (A)(2)(d) of this section and shall278
send written notification to the person, at the person's last279
known address as shown on the records of the bureau.280

       (c) Any person adversely affected by the order of the281
registrar under division (D)(5)(a) or (b) of this section, within282
ten days after the issuance of the order, may request an283
administrative hearing before the registrar, who shall provide the284
person with an opportunity for a hearing in accordance with this285
paragraph. A request for a hearing does not operate as a286
suspension of the order. The scope of the hearing shall be limited 287
to whether, at the time of the hearing, the person presents proof 288
of financial responsibility covering the vehicle and whether the 289
person is eligible for an exemption in accordance with this 290
section or any rule adopted under it. The registrar shall 291
determine the date, time, and place of any hearing; provided, that 292
the hearing shall be held, and an order issued or findings made, 293
within thirty days after the registrar receives a request for a 294
hearing. If requested by the person in writing, the registrar may 295
designate as the place of hearing the county seat of the county in 296
which the person resides or a place within fifty miles of the 297
person's residence. Such person shall pay the cost of the hearing 298
before the registrar, if the registrar's order of suspension or 299
impoundment under division (D)(5)(a) or (b) of this section is 300
upheld.301

       (6) A peace officer may charge an owner or operator of a302
motor vehicle with a violation of section 4510.16 of the Revised303
Code when the owner or operator fails to show proof of the304
maintenance of financial responsibility pursuant to a peace305
officer's request under division (D)(2) of this section, if a306
check of the owner or operator's driving record indicates that the307
owner or operator, at the time of the operation of the motor308
vehicle, is required to file and maintain proof of financial309
responsibility under section 4509.45 of the Revised Code for a310
previous violation of this chapter.311

       (7) Any forms used by law enforcement agencies in312
administering this section shall be prescribed, supplied, and paid313
for by the registrar.314

       (8) No peace officer, law enforcement agency employing a315
peace officer, or political subdivision or governmental agency316
that employs a peace officer shall be liable in a civil action for317
damages or loss to persons arising out of the performance of any318
duty required or authorized by this section.319

       (9) As used in this division and divisions (E) and (G) of320
this section, "peace officer" has the meaning set forth in section321
2935.01 of the Revised Code.322

       (E) All fees, except court costs, collected under this323
section shall be paid into the state treasury to the credit of the324
financial responsibility compliance fund. The financial325
responsibility compliance fund shall be used exclusively to cover326
costs incurred by the bureau in the administration of this section327
and sections 4503.20, 4507.212, and 4509.81 of the Revised Code,328
and by any law enforcement agency employing any peace officer who329
returns any license, certificate of registration, and license330
plates to the registrar pursuant to division (C) of this section,331
except that the director of budget and management may transfer332
excess money from the financial responsibility compliance fund to333
the state bureau of motor vehicles fund if the registrar334
determines that the amount of money in the financial335
responsibility compliance fund exceeds the amount required to336
cover such costs incurred by the bureau or a law enforcement337
agency and requests the director to make the transfer.338

       All investment earnings of the financial responsibility339
compliance fund shall be credited to the fund.340

       (F) Chapter 119. of the Revised Code applies to this section341
only to the extent that any provision in that chapter is not342
clearly inconsistent with this section.343

       (G)(1) The registrar, court, traffic violations bureau, or344
peace officer may require proof of financial responsibility to be345
demonstrated by use of a standard form prescribed by the346
registrar. If the use of a standard form is not required, a person 347
may demonstrate proof of financial responsibility under this 348
section by presenting to the traffic violations bureau, court, 349
registrar, or peace officer any of the following documents or a 350
copy of the documents:351

       (a) A financial responsibility identification card as352
provided in section 4509.103 of the Revised Code;353

       (b) A certificate of proof of financial responsibility on a354
form provided and approved by the registrar for the filing of an355
accident report required to be filed under section 4509.06 of the356
Revised Code;357

       (c) A policy of liability insurance, a declaration page of a358
policy of liability insurance, or liability bond, if the policy or359
bond complies with section 4509.20 or sections 4509.49 to 4509.61360
of the Revised Code;361

       (d) A bond or certification of the issuance of a bond as362
provided in section 4509.59 of the Revised Code;363

       (e) A certificate of deposit of money or securities as364
provided in section 4509.62 of the Revised Code;365

       (f) A certificate of self-insurance as provided in section366
4509.72 of the Revised Code.367

       (2) If a person fails to demonstrate proof of financial368
responsibility in a manner described in division (G)(1) of this369
section, the person may demonstrate proof of financial370
responsibility under this section by any other method that the371
court or the bureau, by reason of circumstances in a particular372
case, may consider appropriate.373

       (3) A motor carrier certificated by the interstate commerce374
commission or by the public utilities commission may demonstrate375
proof of financial responsibility by providing a statement376
designating the motor carrier's operating authority and averring377
that the insurance coverage required by the certificating378
authority is in full force and effect.379

       (4)(a) A finding by the registrar or court that a person is380
covered by proof of financial responsibility in the form of an381
insurance policy or surety bond is not binding upon the named382
insurer or surety or any of its officers, employees, agents, or383
representatives and has no legal effect except for the purpose of384
administering this section.385

       (b) The preparation and delivery of a financial386
responsibility identification card or any other document387
authorized to be used as proof of financial responsibility under388
this division does not do any of the following:389

       (i) Create any liability or estoppel against an insurer or390
surety, or any of its officers, employees, agents, or391
representatives;392

       (ii) Constitute an admission of the existence of, or of any393
liability or coverage under, any policy or bond;394

       (iii) Waive any defenses or counterclaims available to an395
insurer, surety, agent, employee, or representative in an action396
commenced by an insured or third-party claimant upon a cause of397
action alleged to have arisen under an insurance policy or surety398
bond or by reason of the preparation and delivery of a document399
for use as proof of financial responsibility.400

       (c) Whenever it is determined by a final judgment in a401
judicial proceeding that an insurer or surety, which has been402
named on a document accepted by a court or the registrar as proof403
of financial responsibility covering the operation of a motor404
vehicle at the time of an accident or offense, is not liable to405
pay a judgment for injuries or damages resulting from such406
operation, the registrar, notwithstanding any previous contrary407
finding, shall forthwith suspend the operating privileges and408
registration rights of the person against whom the judgment was409
rendered as provided in division (A)(2) of this section.410

       (H) In order for any document described in division (G)(1)(b) 411
of this section to be used for the demonstration of proof of 412
financial responsibility under this section, the document shall 413
state the name of the insured or obligor, the name of the insurer 414
or surety company, and the effective and expiration dates of the 415
financial responsibility, and designate by explicit description or 416
by appropriate reference all motor vehicles covered which may 417
include a reference to fleet insurance coverage.418

       (I) For purposes of this section, "owner" does not include a419
licensed motor vehicle leasing dealer as defined in section420
4517.01 of the Revised Code, but does include a motor vehicle421
renting dealer as defined in section 4549.65 of the Revised Code. 422
Nothing in this section or in section 4509.51 of the Revised Code423
shall be construed to prohibit a motor vehicle renting dealer from424
entering into a contractual agreement with a person whereby the425
person renting the motor vehicle agrees to be solely responsible426
for maintaining proof of financial responsibility, in accordance427
with this section, with respect to the operation, maintenance, or428
use of the motor vehicle during the period of the motor vehicle's429
rental.430

       (J) The purpose of this section is to require the maintenance 431
of proof of financial responsibility with respect to the operation 432
of motor vehicles on the highways of this state, so as to minimize 433
those situations in which persons are not compensated for injuries 434
and damages sustained in motor vehicle accidents. The general 435
assembly finds that this section contains reasonable civil 436
penalties and procedures for achieving this purpose.437

       (K) Nothing in this section shall be construed to be subject438
to section 4509.78 of the Revised Code.439

       (L)(1) The registrar may terminate any suspension imposed 440
under this section and not require the owner to comply with 441
divisions (A)(5)(a), (b), and (c) of this section if the registrar 442
with or without a hearing determines that the owner of the vehicle 443
has established by clear and convincing evidence that all of the444
following apply:445

       (a) The owner customarily maintains proof of financial446
responsibility.447

       (b) Proof of financial responsibility was not in effect for448
the vehicle on the date in question for one of the following449
reasons:450

       (i) The vehicle was inoperable.451

       (ii) The vehicle is operated only seasonally, and the date in452
question was outside the season of operation.453

       (iii) A person other than the vehicle owner or driver was at454
fault for the lapse of proof of financial responsibility through455
no fault of the owner or driver.456

       (iv) The lapse of proof of financial responsibility was457
caused by excusable neglect under circumstances that are not458
likely to recur and do not suggest a purpose to evade the459
requirements of this chapter.460

       (2) The registrar may grant an owner or driver relief for a 461
reason specified in division (L)(1)(b)(i) or (ii) of this section 462
whenever the owner or driver is randomly selected to verify the 463
existence of proof of financial responsibility for such a vehicle. 464
However, the registrar may grant an owner or driver relief for a 465
reason specified in division (L)(1)(b)(iii) or (iv) of this 466
section only if the owner or driver has not previously been 467
granted relief under division (L)(1)(b)(iii) or (iv) of this 468
section.469

       (M) The registrar shall adopt rules in accordance with470
Chapter 119. of the Revised Code that are necessary to administer471
and enforce this section. The rules shall include procedures for472
the surrender of license plates upon failure to maintain proof of473
financial responsibility and provisions relating to reinstatement474
of registration rights, acceptable forms of proof of financial475
responsibility, and verification of the existence of financial476
responsibility during the period of registration.477

       Sec. 4510.04.  It is an affirmative defense to any478
prosecution brought under section 4510.11, 4510.14, 4510.16, or479
4510.21 of the Revised Code or under any substantially equivalent480
municipal ordinance that the alleged offender drove under481
suspension, without a valid permit or driver's or commercial482
driver's license, or in violation of a restriction because of a483
substantial emergency, and because no other person was reasonably484
available to drive in response to the emergency.485

       It is an affirmative defense to any prosecution brought under486
section 4510.16 of the Revised Code that the order of suspension487
resulted from the failure of the alleged offender to respond to a488
financial responsibility random verification request under489
division (A)(3)(c) of section 4509.101 of the Revised Code and490
that, at the time of the initial financial responsibility random491
verification request, the alleged offender was in compliance with492
division (A)(1) of section 4509.101 of the Revised Code as shown493
by proof of financial responsibility that was in effect at the494
time of that request.495

       Section 2.  That existing sections 4509.101 and 4510.04 of 496
the Revised Code are hereby repealed.497

       Section 3.  That Section 3 of Am. Sub. S.B. 20 of the 120th 498
General Assembly, as amended by Am. Sub. H.B. 215 of the 122nd 499
General Assembly and Am. Sub. H.B. 163 of the 123rd General 500
Assembly, is hereby repealed.501

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