AB 861, as introduced, Fong. Motor vehicles: proof of financial responsibility.
Existing law requires all drivers and all owners of a motor vehicle, at all times, to be able to establish financial responsibility and carry in the vehicle evidence of the form of financial responsibility in effect for the vehicle, including, but not limited to, self-insurance, a liability policy or bond, and cash deposit. The Department of Motor Vehicles is required to suspend the driving privilege of the driver or the owner of a vehicle that is involved in an accident, as specified, who fails to provide evidence of financial responsibility. Existing law provides various means of producing proof of financial responsibility and ability to respond to damages involving motor vehicle accidents, including, the written certificate of an insurance carrier that has issued a motor vehicle liability policy, a bond payable on motion of the state, or a cash deposit with the department, as specified. Existing law provides for the release of the proof of financial responsibility from the department upon the occurrence of specified events, including that the person is no longer required to maintain the proof, or the death of the person on whose behalf the proof was filed.
This bill would make technical, nonsubstantive changes to these provisions governing release of the proof of financial responsibility.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 16480 of the Vehicle Code is amended
2to read:
(a) The department shall upon request, or may at its
4own discretion, cancel any bond or any certificate of insurance,
5or the department shall direct the return to the person entitled
6thereto of any money or securities depositedbegin delete pursuant to this codeend delete
7 as proof of financial responsibility, or the department shall waive
8the requirement of filing proof of financial responsibilitybegin delete inend deletebegin insert uponend insert
9 any of the following events:
10(1) begin deleteWhen the end deletebegin insertThe
end insertperson is no longer required to maintain the
11proof underbegin delete the provisions ofend delete this code.
12(2) At any time after three years from the date the proof was
13required.
14(3) begin deleteUpon the end deletebegin insertThe end insertdeath of the person on whose behalf the proof
15was filed.
16(4) The permanent incapacity of the person to operate a motor
17vehicle if the person surrenders for cancellation his or her driver’s
18license to the department.
19(b) The department shall not release proof filed by the bond of
20
individual sureties as set forth in Section 16434, or if given in the
21manner prescribed by Section 16435, if any action for damages
22upon a liability referred to in this code is then pendingbegin insert,end insert or if any
23judgment upon anybegin delete theend delete liability is outstanding and unsatisfied. An
24affidavit of the applicant of the nonexistence of those facts shall
25be prima facie evidence thereof.
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