SENATE BILL 143
46th legislature - STATE OF NEW MEXICO - second session, 2004
INTRODUCED BY
Sue Wilson Beffort
AN ACT
RELATING TO MOTOR VEHICLES; REQUIRING CASH OR COLLATERAL TO BE DEPOSITED BY CERTAIN UNINSURED MOTORISTS INVOLVED IN ACCIDENTS; PROVIDING THAT THE CASH OR COLLATERAL BE HELD IN ESCROW FOR THE BENEFIT OF PERSONS SUFFERING DAMAGES IN THE ACCIDENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. 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 involved in an accident a citation for failure to comply with the provisions of the Mandatory Financial Responsibility Act, the law enforcement officer shall at the same time:
(1) issue to the driver cited 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 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] pursuant to the following criteria:
(1) if the [person] driver cited for failure to comply with the provisions of the Mandatory Financial Responsibility Act was not, at the same time, issued a citation for a moving traffic violation, then the department shall return or replace the license plate when the person furnishes proof of compliance to the department and pays to the division a reinstatement fee of twenty-five dollars ($25.00);
(2) if a [person] driver 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; and
(3) if the driver cited for failure to comply with the provisions of the Mandatory Financial Responsibility Act was, at the same time, issued a citation for a moving traffic violation, then the department shall return or replace the license plate when the driver:
(a) furnishes proof of compliance with the Mandatory Financial Responsibility Act and pays to the division a reinstatement fee of twenty-five dollars (25.00); and
(b) deposits cash or collateral with the department in the amount of five hundred dollars ($500) to ensure restitution to persons who suffered property damage or bodily injury as a result of the accident.
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. Cash or collateral deposited with the department pursuant to Paragraph (3) of Subsection B of this section shall be held in escrow by the department to satisfy a civil judgment against the driver in favor of persons who suffered property damage or bodily injury as a result of the accident in which the driver depositing the cash or collateral was involved. The cash or collateral shall be:
(1) distributed pursuant to a court order in a civil action between a person allegedly harmed in the accident and the driver who deposited the cash or collateral;
(2) returned to the driver who deposited the cash or collateral if the driver is not found guilty of violating both the Mandatory Financial Responsibility Act and the moving traffic violation alleged in the other citation; or
(3) returned to the driver who deposited the cash or collateral upon a petition by the driver showing that the time for filing a civil action for injuries or damages suffered in the accident has expired.
[D.] E. 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.] F. 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.
[F.] G. 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] E of this section."
Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2004.
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