Report Title:

Motor Vehicle Insurance; Penalties

 

Description:

Removes the authority of the court to grant community service in lieu of a fine to motor vehicle insurance violators. Disallows the good faith defense to persons alleged to have violated the motor vehicle insurance laws. Removes the exemption from penalties for operators of borrowed vehicles who hold a reasonable belief that the vehicle is insured.

 

THE SENATE

S.B. NO.

1620

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO MOTOR VEHICLE INSURANCE.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that uninsured motorists continue to be a problem in Hawaii. Police continue to receive complaints from motorists involved in motor vehicle collisions about other motorists who are uninsured at the time of the collision. This results in the innocent victims of a collision paying for damages sustained to their vehicle and being penalized by their own insurance company for filing claims for their vehicle. In Honolulu, an annual average of 29,173 motor vehicle collisions have occurred over the five-year period from 1995 to 1999, and in 2000, from January through October, a total of 24,201 collisions have occurred. Honolulu police have issued an average of 23,090 for this five-year period and in 2000, issued 16,956.

The legislature is concerned about the number of vehicle owners who continue to own vehicles and operate them without insurance because these owners penalize the insured owners when a motor vehicle collision occurs. The legislature is also concerned that drivers use the vehicles of another without verifying whether those vehicles have insurance prior to operating them on a public roadway. The legislature finds that it is the responsibility of every driver to have knowledge of the vehicle's insurance, safety check, and registration before the driver operates the vehicle on a public roadway.

The purposes of this Act are as follows:

(1) To remove the authority of the court to grant community service in lieu of a fine to motor vehicle insurance violators;

(2) To disallow the good faith defense to persons alleged to have violated the motor vehicle insurance laws; and

(3) To remove the exemption from penalties for operators of borrowed vehicles who hold a reasonable belief that the vehicle is insured.

SECTION 2. Section 431:10C-117, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) (1) Any person subject to this article in the capacity of the operator, owner, or registrant of a motor vehicle operated in this State, or registered in this State, who violates any applicable provision of this article, shall be subject to citation for the violation by any county police department in a form and manner approved by the traffic violations bureau of the district court of the first circuit;

(2) Notwithstanding any provision of the Hawaii Penal Code:

(A) Each violation shall be deemed a separate offense and shall be subject to a fine of not less than $100 nor more than $5,000 which shall not be suspended except as provided in subparagraph (B); and

(B) If the person is convicted of not having had a motor vehicle insurance policy in effect at the time the citation was issued, the fine shall be $500 for the first offense and a minimum of $1,500 for each subsequent offense that occurs within a five-year period from any prior offense; provided that the judge[:

(i) Shall] shall have the discretion to suspend all or any portion of the fine if the defendant provides proof of having a current motor vehicle insurance policy; [provided further that upon the defendant's request, the judge may grant community service in lieu of the fine, of not less than seventy-five hours and not more than one hundred hours for the first offense, and not less than two hundred hours nor more than two hundred seventy-five hours for the second offense; and

(ii) May grant community service in lieu of the fine for subsequent offenses at the judge's discretion;]

(3) In addition to the fine in paragraph (2), the court shall either:

(A) Suspend the driver's license of the driver or of the registered owner for:

(i) Three months for the first conviction; and

(ii) One year for any subsequent offense within a five-year period from a previous offense;

provided that the driver or the registered owner shall not be required to obtain proof of financial responsibility pursuant to section 287-20; or

(B) Require the driver or the registered owner to keep a nonrefundable motor vehicle insurance policy in force for six months;

(4) [Any person cited under this section shall have an opportunity to present a good faith defense, including but not limited to lack of knowledge or proof of insurance.] The general penalty provision of this section shall not apply to:

(A) Any operator of a motor vehicle owned by another person if the operator's own insurance covers such driving; or

(B) Any operator of a motor vehicle owned by that person's employer during the normal scope of that person's employment;[or

(C) Any operator of a borrowed motor vehicle if the operator holds a reasonable belief that the subject vehicle is insured;] and

(5) In the case of multiple convictions for driving without a valid motor vehicle insurance policy within a five-year period from any prior offense, the court, in addition to any other penalty, shall impose the following penalties:

(A) Imprisonment of not more than thirty days;

(B) Suspension or revocation of the motor vehicle registration plates of the vehicle involved;

(C) Impoundment, or impoundment and sale, of the motor vehicle for the costs of storage and other charges incident to seizure of the vehicle, or any other cost involved pursuant to section 431:10C-301; or

(D) Any combination of those penalties."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

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