HOUSE BILL 475

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

William "Bill" R. Rehm

AN ACT

RELATING TO MOTOR VEHICLES; ESTABLISHING A MINIMUM FINE FOR VIOLATION OF THE MANDATORY FINANCIAL RESPONSIBILITY ACT; REQUIRING PROCEDURES FOLLOWING THE ISSUANCE OF A CITATION FOR VIOLATION OF THE MANDATORY FINANCIAL RESPONSIBILITY ACT; REQUIRING NONRESIDENT PROOF OF FINANCIAL RESPONSIBILITY; ALLOWING LAW ENFORCEMENT OFFICERS TO VERIFY FINANCIAL RESPONSIBILITY BY CHECKING COMPUTER DATABASES.

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

     Section 1. Section 66-5-201.1 NMSA 1978 (being Laws 1983, Chapter 318, Section 2, as amended) is amended to read:

     "66-5-201.1. PURPOSE.--The legislature is aware that motor vehicle accidents in New Mexico can result in catastrophic financial hardship. The purpose of the Mandatory Financial Responsibility Act is to require residents of New Mexico and nonresidents who own and operate motor vehicles upon the highways of the state either to have the ability to respond in damages to accidents arising out of the use and operation of a motor vehicle or to obtain a motor vehicle insurance policy."

     Section 2. 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 of not less than one hundred fifty dollars ($150), that cannot be suspended, but not to exceed three hundred dollars ($300)."

     Section 3. 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] CITATION--SUBSEQUENT PROCEDURES--INSURER NOTIFICATION REQUIREMENTS--SUSPENSION PROCEDURES.--

          A. When a law enforcement officer issues to 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 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.

         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] the owner 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. 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 4. Section 66-5-220 NMSA 1978 (being Laws 1955, Chapter 182, Section 323, as amended) is amended to read:

    "66-5-220. NONRESIDENT--PROOF OF FINANCIAL RESPONSIBILITY--DEFAULT BY NONRESIDENT INSURER.--

         A. The nonresident owner of a motor vehicle not registered in this state may give proof of financial responsibility by filing with the secretary evidence of insurance on the motor vehicle in the form of a written certificate of an insurance carrier authorized to transact business in the state in which the motor vehicle described in the certificate is registered, or if the nonresident does not own a motor vehicle, then in the state in which the nonresident resides, provided the certificate otherwise conforms to the provisions of the Mandatory Financial Responsibility Act. The secretary shall accept the certificate upon the condition that the insurance carrier complies with the following provisions with respect to the insurance being certified:

             (1) the insurance carrier shall execute a power of attorney authorizing the secretary to accept service on its behalf of notice or process in any action arising out of a motor vehicle accident in this state; and

             (2) the insurance carrier shall agree in writing that the insurance shall be deemed to conform with the laws of New Mexico relating to the terms of motor vehicle insurance policies.

         B. If any insurance carrier not authorized to transact business in New Mexico that has qualified to furnish evidence of financial responsibility defaults in any undertakings or agreements, the department shall not thereafter accept evidence of financial responsibility of that carrier, whether previously filed or thereafter tendered as evidence, so long as the default continues."

    Section 5. Section 66-5-229 NMSA 1978 (being Laws 1978, Chapter 35, Section 318, as amended) is amended to read:

    "66-5-229. DURATION OF EVIDENCE--WHEN FILING OF EVIDENCE

MAY BE WAIVED--PENALTY.--

         A. The department shall, upon request, consent to the immediate cancellation of any bond or the department shall direct and the state treasurer shall return to the person entitled thereto any money deposited pursuant to the Mandatory Financial Responsibility Act as evidence of financial responsibility or the department shall waive the requirement of filing evidence of financial responsibility in any of the following events:

             (1) after one year of providing satisfactory evidence as specified in Section 66-5-218 NMSA 1978;

             (2) the death of the person on whose behalf evidence was filed or the permanent incapacity of the person to operate a motor vehicle; or

             (3) the person who has filed evidence surrenders [his] the person's license and registration to the department.

         B. [Provided, however, that] The department shall not consent to the cancellation of any bond or the return of any money or waive the requirement of filing evidence of financial responsibility in the event any action for damages upon a liability covered by the evidence is then pending or any judgment upon any such liability is then unsatisfied or in the event the person who has filed the bond or deposited the money has, within one year immediately preceding the request, been involved as a driver or owner in any motor vehicle accident resulting in injury or damage to the person or property of others. An affidavit of the applicant as to the nonexistence of such facts or that [he] the applicant has been released from all of [his] the applicant's liability or has been finally adjudicated not to be liable for such injury or damage shall be sufficient evidence thereof in the absence of evidence to the contrary in the records of the department.

         C. Every owner or operator of a vehicle subject to the requirements of the Mandatory Financial Responsibility Act shall carry evidence of financial responsibility as defined by that act in the vehicle at all times while the vehicle is in operation on the highways of this state. The failure to comply with this subsection shall be a misdemeanor and shall be punishable by the penalty set forth in Section 66-8-7 NMSA 1978; provided that a law enforcement officer shall not charge a person with a violation of this section if the officer can verify the person's compliance with the Mandatory Financial Responsibility Act by checking a computer database of motor vehicle information immediately available to the officer; and provided further that no person charged with violating this section shall be convicted if [he] the person produces in court evidence of financial responsibility valid at the time of issuance of the citation."

    Section 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.

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