HB0509

HOUSE BILL 509

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Antonio "Moe" Maestas

AN ACT

RELATING TO MOTOR VEHICLES; SUBJECTING VIOLATIONS OF THE MANDATORY FINANCIAL RESPONSIBILITY ACT TO CIVIL PENALTIES; PROVIDING FOR NOTICE OF VIOLATION AND PAYMENT OF PENALTIES TO OCCUR BY MAIL; PROVIDING FOR A COMPLIANCE PROGRAM; REPEALING A SECTION OF THE MANDATORY FINANCIAL RESPONSIBILITY ACT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1. Section 66-5-205 NMSA 1978 (being Laws 1983, Chapter 318, Section 6, as amended) is amended to read:

"66-5-205. VEHICLE MUST BE INSURED OR OWNER MUST HAVE EVIDENCE OF FINANCIAL RESPONSIBILITY--PENALTIES.--

A. No owner shall permit the operation of an uninsured motor vehicle, or a motor vehicle for which evidence of financial responsibility as was affirmed to the department is not currently valid, upon the streets or highways of New Mexico unless the vehicle is specifically exempted from the provisions of the Mandatory Financial Responsibility Act.

B. No person shall drive an uninsured motor vehicle, or a motor vehicle for which evidence of financial responsibility as was affirmed to the department is not currently valid, upon the streets or highways of New Mexico unless [he] the person is specifically exempted from the provisions of the Mandatory Financial Responsibility Act.

C. For the purposes of the Mandatory Financial Responsibility Act, "uninsured motor vehicle" means a motor vehicle for which a motor vehicle insurance policy meeting the requirements of the laws of New Mexico and of the secretary, or a surety bond or evidence of a sufficient cash deposit with the state treasurer, is not in effect [or a surety bond or evidence of a sufficient cash deposit with the state treasurer].

D. The provisions of the Mandatory Financial Responsibility Act requiring the deposit of evidence of financial responsibility as provided in Section 66-5-218 NMSA 1978, subject to certain exemptions, may apply with respect to persons who have been convicted of or forfeited bail for certain offenses under motor vehicle laws or who have failed to pay judgments or written settlement agreements upon causes of action arising out of ownership, maintenance or use of vehicles of a type subject to registration under the laws of New Mexico.

[E. Any person who violates the provisions of this section is guilty of a misdemeanor and upon conviction shall be sentenced to a fine not to exceed three hundred dollars ($300).]"

SECTION 2. Section 66-5-205.1 NMSA 1978 (being Laws 1989, Chapter 214, Section 1, as amended) is amended to read:

"66-5-205.1. UNINSURED MOTORIST CITATION--REQUIREMENTS TO BE FOLLOWED AT TIME OF ACCIDENT--SUBSEQUENT PROCEDURES--INSURER NOTIFICATION REQUIREMENTS--SUSPENSION PROCEDURES.--

A. When a law enforcement officer [issues a driver who is] makes a determination as provided in Section 3 of this 2011 act that a vehicle involved in an accident [a citation for failure to comply with the provisions of the Mandatory Financial Responsibility Act] is an uninsured vehicle, the law enforcement officer shall at the same time:

(1) issue to the driver [cited] of the vehicle a temporary operation sticker, valid for thirty days after the date the sticker is issued, and forward by mail or delivery to the department a duplicate of the issued sticker; and

(2) remove the license plate from the vehicle and send it with the duplicate of the sticker to the department or, if it cannot be removed, permanently deface the plate.

B. The department shall mail a penalty notice pursuant to Section 3 of this 2011 act, and shall return or replace, in its discretion, a license plate removed under the provisions of Paragraph (2) of Subsection A of this section or replace a license plate defaced under that paragraph when the [person cited for failure to comply with the provisions of the Mandatory Financial Responsibility Act furnishes proof of compliance to the department and pays to the division a reinstatement fee of twenty-five dollars ($25.00). If a person to whom the temporary operation sticker is issued furnishes to the department, within fifteen days after the issuance of the sticker, evidence of financial responsibility in compliance with the Mandatory Financial Responsibility Act and in effect on the date and at the time of the issuance of the sticker, the department shall replace or return the license plate and waive the twenty-five dollar ($25.00) reinstatement fee] owner of the vehicle responds to the department pursuant to Paragraph (1) or (2) of Subsection B of Section 3 of this 2011 act or if the owner establishes compliance with the Mandatory Financial Responsibility Act at a hearing held pursuant to Paragraph (3) of Subsection B of Section 3 of this 2011 act.

C. The secretary shall adopt and promulgate rules prescribing the form and use of the sticker required to be issued under Subsection A of this section.

D. The secretary shall adopt and promulgate rules requiring insurance carriers to report canceled, terminated and newly issued motor vehicle insurance policies each month to the department. Information pertaining to each motor vehicle shall be made a part of that vehicle file for one year.

E. Within ten days of notification by the insurance carrier of a termination or cancellation of a motor vehicle insurance policy, the department shall [demand satisfactory evidence from the owner of the motor vehicle that he meets the requirements of the Mandatory Financial Responsibility Act. Failure to provide evidence of financial responsibility within twenty days after the department has mailed its demand for proof:

(1) constitutes reasonable grounds to believe that a person is operating a motor vehicle in violation of the provisions of Section 66-5-205 NMSA 1978; and

(2) requires the department to suspend the person's registration as provided in Section 66-5-236 NMSA 1978] mail a penalty notice pursuant to Section 3 of this 2011 act.

F. The department shall notify the superintendent of insurance if an insurance carrier fails to provide monthly reports to the department regarding motor vehicle insurance policy information as required by Subsection D of this section."

SECTION 3. A new section of the Mandatory Financial Responsibility Act is enacted to read:

"[NEW MATERIAL] CIVIL PENALTY--PENALTY NOTICE--COMPLIANCE PROGRAM.--

A. Notwithstanding the provisions of Section 66-8-7 NMSA 1978, a person who violates the provisions of Section 66-5-205 NMSA 1978 is not subject to a criminal penalty but is subject to a civil penalty of three hundred dollars ($300) and suspension of motor vehicle registration. Determination of a violation may be made by a law enforcement officer or by the department or its agent from the department's records and national databases available to the department. If the determination is made by a law enforcement officer, the officer shall notify the department in a manner directed by the department. Notice of a violation shall be made by mail to the person by the department or an agent of the department.

B. The penalty notice shall state the name of the registered owner and the registration number and description of the vehicle determined to be uninsured or without current evidence of financial responsibility, a statement that the department has determined from its records that the owner is in violation of the requirement for financial responsibility in the Mandatory Financial Responsibility Act and the date and time of the determination, the amount of the civil penalty, a statement that failure to comply with the directions in the notice may result in suspension of the vehicle's registration and legal action to collect the penalty amount and a direction to the owner to either:

(1) submit to the department, within twenty days of the mailing of the penalty notice, evidence satisfactory to the department of the owner's financial responsibility in effect currently and on the date and at the time of the determination. Fulfillment of this paragraph shall result in no further action on the part of the department and the department shall update its records to reflect the evidence submitted;

(2) submit to the department, within twenty days of the mailing of the penalty notice, the amount of the civil penalty, which shall be deemed an agreement by the registered owner that the owner drove or permitted another person to drive the vehicle in violation of the financial responsibility provisions of the Mandatory Financial Responsibility Act, and evidence satisfactory to the department of the owner's financial responsibility in effect currently and no later than the date of the submission. Fulfillment of the requirements of this paragraph shall result in no further action on the part of the department, and the department shall update its records to reflect the evidence submitted; or

(3) if the owner believes the penalty notice is incorrect, request a hearing pursuant to Section 66-5-204 NMSA 1978 to determine whether the owner is in compliance with the financial responsibility provisions of the Mandatory Financial Responsibility Act. The department shall take no further action until a hearing decision has been made. If the decision upholds the penalty notice, within twenty days of the decision the owner shall comply with Paragraph (2) of this subsection or, if the owner does not comply, the owner shall be subject to the provisions of Paragraphs (2) and (3) of Subsection C of this section.

C. If the owner fails to respond as directed in Paragraph (1) or (2) of Subsection B of this section within twenty days after the department has mailed the penalty notice or submits false evidence of compliance with the Mandatory Financial Responsibility Act, the failure or false submission:

(1) constitutes reasonable grounds to believe that the person is operating a motor vehicle in violation of the provisions of Section 66-5-205 NMSA 1978;

(2) requires the department to suspend the person's registration for a period not to exceed one year; and

(3) gives the department the authority to collect the penalty amount as a lawful debt pursuant to legal process and to collect attorney fees if legal process is necessary.

D. The department may establish a compliance program, in conjunction with the department of public safety, other law enforcement agencies and providers of pertinent technology, to assist the department and law enforcement officers in making the determination required in Subsection A of this section. The program may include the use of electronic imaging technology to compare vehicle registration plates with the records of the department or its agent or with records available to the department or its agent."

SECTION 4. REPEAL.--Section 66-5-235 NMSA 1978 (being Laws 1983, Chapter 318, Section 34, as amended) is repealed.

- 9 -