HB639 (2009) Detail

Relative to mandatory motor vehicle liability insurance.


HB 639-FN - AS INTRODUCED

2009 SESSION

09-0610

03/05

HOUSE BILL 639-FN

AN ACT relative to mandatory motor vehicle liability insurance.

SPONSORS: Rep. Butynski, Ches 4; Rep. Sad, Ches 2; Rep. B. Richardson, Ches 5; Rep. Mitchell, Ches 7

COMMITTEE: Transportation

ANALYSIS

This bill requires proof of motor vehicle liability insurance in order to register a motor vehicle and requires drivers to possess proof of motor vehicle liability insurance.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

09-0610

03/05

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nine

AN ACT relative to mandatory motor vehicle liability insurance.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Application for Registration; Proof of Insurance Required. Amend RSA 261:52 to read as follows:

261:52 Application for Registration.

I. Application for the registration of vehicles may be made by the owner thereof by mail or otherwise to the department, upon blanks prepared by the director. In addition to such other particulars as the director may require, the application shall contain the applicant’s birth date, unless the vehicle is registered in the name of a person other than a natural person, in which case the date assigned by the director shall be used as the date of birth. All applications shall contain the words: “This application is signed and any additional information is offered under penalty of unsworn falsification pursuant to RSA 641:3.” The proper fee shall be deposited before the application is granted.

II. The applicant shall submit with the application proof of motor vehicle liability insurance indicating that such insurance is valid for the duration of the registration period or longer. No registration shall be issued, renewed, or transferred without adequate proof of insurance.

2 New Section; Possession of Proof of Motor Vehicle Liability Insurance Required. Amend RSA 265 by inserting after section 96 the following new section:

265:96-a Possession of Proof of Motor Vehicle Liability Insurance Required. Every person driving a motor vehicle shall have proof of valid motor vehicle liability insurance covering the person upon his or her person or in the vehicle in some easily accessible place and shall display the same on demand of and manually surrender the same into the hands of the demanding officer for the inspection thereof. No person charged with a violation of this section shall be convicted if, within a period of 48 hours, he or she produces in the office of the arresting officer evidence that he or she held a valid insurance policy which was in effect at the time of his or her arrest. Any person violating this section shall be guilty of a violation and fined not less than $250 nor more than $500 for the first offense and not less than $500 nor more than $1,000 for a second offense, and guilty of a misdemeanor for any third or subsequent offense within 5 years.

3 Effective Date. This act shall take effect January 1, 2010.

LBAO

09-0610

Revised 02/03/09

HB 639 FISCAL NOTE

AN ACT relative to mandatory motor vehicle liability insurance.

FISCAL IMPACT:

      The Judicial Branch, the Judicial Council, the Department of Safety, the Insurance Department, and the New Hampshire Association of Counties state this bill may increase state revenue and state and county expenditures by indeterminable amounts in FY 2010 and each year thereafter. There will be no fiscal impact on county and local revenue or local expenditures.

METHODOLOGY:

    The Judicial Branch states this bill amends current law to require proof of motor vehicle liability insurance in order to register a vehicle, and adds a provision to also require that drivers must possess proof of that insurance. The Branch states that failure to possess that proof results in a violation for the first and second offenses, with the third and any subsequent offenses within five years resulting in a misdemeanor charge. Those instances involving third or subsequent offenses could potentially impact state expenditures, and the Branch states the average cost of an unspecified misdemeanor case in district court is $35.75 in FY 2009 and each year thereafter. The Branch also estimates that the proposed insurance requirement will likely increase the number of civil actions for damages and personal injury resulting from motor vehicle accidents. Such actions would typically be regarded as complex civil cases, with an average cost in superior court of $559.43 in FY 2010 and each year thereafter. The Branch has no information to estimate how many charges would be brought or actions filed as a result of the provisions contained in the proposed bill to determine the exact fiscal impact on expenditures. However, if a single case of either type were to be appealed to a higher New Hampshire court, the fiscal impact would be in excess of $10,000.

    The Judicial Council states this bill may result in an indeterminable increase in general fund expenditures. The Council states violations resulting from first or second offenses as defined under the proposed bill would not be eligible for indigent defense, however subsequent offenses would carry the misdemeanor charge. In these instances, if an individual is found to be indigent, the flat fee of $275 per case (plus $206.25 per review hearing for juvenile cases) is charged by a public defender or contract attorney. If an assigned counsel attorney is used the fee is $60 per hour with a cap of $1,400 ($1,700 for juvenile cases, with an additional $300 per review hearing) for a misdemeanor charge. The Council also states additional costs could be incurred if an appeal is filed. The public defender, contract attorney and assigned counsel rates for Supreme Court appeals is $2,000 per case, with many assigned counsel attorneys seeking permission to exceed the fee cap. Requests to exceed the fee cap are seldom granted. Finally, expenditures would increase if services other than counsel are requested and approved by the court during the defense of a case or during an appeal.

    The Department of Safety states that it cannot estimate the fiscal impact of the proposed bill, as it cannot estimate either the number of drivers who will be charged under the bill’s provisions or the increased costs resulting from the processing and retention of the proof of insurance documentation.

    The Insurance Department estimates that state revenues will increase as a result of this bill, for two possible reasons. The first being the increased cost to insurers, passed on to consumers, for updates in documentation and notices during the initial stages of the proposed program, and the second being the increase in the number of individuals purchasing motor vehicle insurance. Both factors will lead to an increase in premiums paid, thereby increasing collection of the premium tax revenue. However, the Department cannot effectively estimate the incidence of either factor.

    The New Hampshire Association of Counties states to the extent an individual is prosecuted, convicted, and sentenced to incarceration, the counties may have increased expenditures. The Association is unable to determine the number of individuals who might be detained or incarcerated as a result of this bill, however the average cost to incarcerate an individual in a county facility is $30,165 a year.