Senate BillNo. 438


Introduced by Senator Hill

February 25, 2015


An act to amend Sections 116.870 and 116.880 of the Code of Civil Procedure, and to amend Sections 1656.2, 12517.1, 13369, 16000, 16000.1, 16075, 16251, 16377, 16430, and 16434 of the Vehicle Code, relating to motor vehicles.

LEGISLATIVE COUNSEL’S DIGEST

SB 438, as introduced, Hill. Motor vehicles: reportable property damage.

Existing law requires the driver of every motor vehicle who is involved in an accident that results in damage to the property of any one person in excess of $750, or in bodily injury, or in the death of a person, to report the accident to the Department of Motor Vehicles within 10 days after the accident, as specified. Under existing law that threshold amount of damages also serves as a condition, among others, for (1) the suspension of a judgment debtor’s driving privileges, as an aid in the enforcement of small claims or civil money judgments arising out of those accidents; and (2) the suspension or revocation of specified endorsements or certificates.

This bill would increase the minimum property damage that is required to be reported to $1,000. This bill would make conforming changes to those related provisions described above.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 116.870 of the Code of Civil Procedure
2 is amended to read:

3

116.870.  

Sections 16250 to 16381, inclusive, of the Vehicle
4Code, regarding the suspension of the judgment debtor’s privilege
5to operate a motor vehicle for failing to satisfy a judgment, apply
6if the judgment (1) was for damage to property in excess ofbegin delete seven
7hundred fifty dollars ($750)end delete
begin insert one thousand dollars ($1,000),end insert or for
8bodily injury to, or death of, a person in any amount, and (2)
9resulted from the operation of a motor vehicle upon a California
10highway by the defendant, or by any other person for whose
11conduct the defendant was liable, unless the liability resulted from
12the defendant’s signing the application of a minor for a driver’s
13license.

14

SEC. 2.  

Section 116.880 of the Code of Civil Procedure is
15amended to read:

16

116.880.  

(a) If the judgment (1) was forbegin delete seven hundred fifty
17dollars ($750)end delete
begin insert one thousand dollars ($1,000)end insert or less, (2) resulted
18from a motor vehicle accident occurring on a California highway
19caused by the defendant’s operation of a motor vehicle, and (3)
20has remained unsatisfied for more than 90 days after the judgment
21became final, the judgment creditor may file with the Department
22of Motor Vehicles a notice requesting a suspension of the judgment
23debtor’s privilege to operate a motor vehicle.

24(b) The notice shall state that the judgment has not been
25satisfied, and shall be accompanied by (1) a fee set by the
26department, (2) the judgment of the court determining that the
27judgment resulted from a motor vehicle accident occurring on a
28California highway caused by the judgment debtor’s operation of
29a motor vehicle, and (3) a declaration that the judgment has not
30been satisfied. The fee shall be used by the department to finance
31the costs of administering this section andbegin delete mayend deletebegin insert shallend insert not exceed
32the department’s actual costs.

33(c) Upon receipt of a notice, the department shall attempt to
34notify the judgment debtor by telephone, if possible, otherwise by
35certified mail, that the judgment debtor’s privilege to operate a
36motor vehicle will be suspended for a period of 90 days, beginning
3720 days after receipt of notice by the department from the judgment
P3    1creditor, unless satisfactory proof, as provided in subdivision (e),
2is provided to the department before that date.

3(d) At the time the notice is filed, the department shall give the
4judgment creditor a copy of the notice thatbegin delete shall indicateend deletebegin insert indicatesend insert
5 the filing fee paid by the judgment creditor, andbegin delete shall includeend delete
6begin insert includesend insert a space to be signed by the judgment creditor
7acknowledging payment of the judgment by the judgment debtor.
8The judgment creditor shall mail or deliver a signed copy of the
9acknowledgment to the judgment debtor once the judgment is
10satisfied.

11(e) The department shall terminate the suspension, or the
12suspension proceedings, upon the occurrence of one or more of
13the following:

14(1) Receipt of proof that the judgment has been satisfied, either
15(A) by a copy of the notice required by this section signed by the
16judgment creditor acknowledging satisfaction of the judgment, or
17(B) by a declaration of the judgment debtor stating that the
18judgment has been satisfied.

19(2) Receipt of proof that the judgment debtor is complying with
20a court-ordered payment schedule.

21(3) Proof that the judgment debtor had insurance covering the
22accident sufficient to satisfy the judgment.

23(4) A deposit with the department of the amount of the
24unsatisfied judgment, if the judgment debtor presents proof,
25satisfactory to the department, of inability to locate the judgment
26creditor.

27(5) At the end of 90 days.

28(f) begin deleteWhen end deletebegin insertIf end insertthe suspension has been terminated under
29subdivision (e), the action is final andbegin delete mayend deletebegin insert shallend insert not be reinstituted.
30begin delete Wheneverend deletebegin insert Ifend insert the suspension is terminated, Section 14904 of the
31Vehicle Code shall apply. Money deposited with the department
32under this section shall be handled in the same manner as money
33deposited under subdivision (d) of Section 16377 of the Vehicle
34Code.

35(g) A public agency is not liable for an injury caused by the
36suspension, termination of suspension, or the failure to suspend a
37person’s privilege to operate a motor vehicle as authorized by this
38section.

39

SEC. 3.  

Section 1656.2 of the Vehicle Code is amended to
40read:

P4    1

1656.2.  

The department shall prepare and publish a printed
2summary describing the penalties for noncompliance with Sections
316000 and 16028, which shall be included with each motor vehicle
4registration, registration renewal, and transfer of registration and
5with each driver’s license and license renewal. The printed
6summary may contain, but is not limited to, the following wording:

78“IMPORTANT FACTS ABOUT ENFORCEMENT OF
9CALIFORNIA’S COMPULSORY FINANCIAL
10RESPONSIBILITY LAW
11

12California law requires every driver to carry written evidence
13of valid automobile liability insurance,begin delete a thirty-five thousand
14dollar ($35,000)end delete
begin insert $35,000end insert bond, abegin delete thirty-five thousand dollar
15($35,000)end delete
begin insert $35,000end insert cash deposit, or a certificate of self-insurance
16that has been issued by the Department of Motor Vehicles.

17You must provide evidence of financial responsibility when you
18renew the registration of a motor vehicle, and after you are cited
19by a peace officer for a traffic violation or are involved in any
20traffic accident. The law requires that you provide the officer
21with the name and address of your insurer and the policy
22identification number. Your insurer will provide written evidence
23of this number. Failure to provide evidence of your financial
24responsibility can result in fines of up tobegin delete five hundred dollars
25($500)end delete
begin insert $500end insert and loss of your driver’s license. Falsification of
26evidence can result in fines of up tobegin delete seven hundred fifty dollars
27($750)end delete
begin insert $750end insert or 30 days in jail, or both, in addition to a one-year
28suspension of driving privileges.


29Under existing California law, if you are involved in an
30accident that results in damages of overbegin delete seven hundred fifty
31dollars ($750)end delete
begin insert $1,000end insert to the property of any person or in any
32injury or fatality, you must file a report of the accident with the
33Department of Motor Vehicles within 10 days of the accident.
34If you fail to file a report or fail to provide evidence of financial
35responsibility on the report, your driving privilege will be
36suspended for up to four years. Your suspension notice will
37notify you of the department’s action and of your right to a
38hearing. Your suspension notice will also inform you that if you
39request a hearing, it must be conducted within 30 days of your
P5    1written request, and that a decision is to be rendered within 15
2days of the conclusion of the hearing.”

3

SEC. 4.  

Section 12517.1 of the Vehicle Code is amended to
4read:

5

12517.1.  

(a) A “schoolbus accident” means any of the
6following:

7(1) A motor vehicle accident resulting in property damage in
8excess ofbegin delete seven hundred fifty dollars ($750)end deletebegin insert one thousand dollars
9($1,000),end insert
or personal injury, on public or private property, and
10involving a schoolbus, youth bus, school pupil activity bus, or
11general public paratransit vehicle transporting a pupil.

12(2) A collision between a vehicle and a pupil or a schoolbus
13driver while the pupil or driver is crossing the highway when the
14schoolbus flashing red signal lamps are required to be operated
15pursuant to Section 22112 or when the schoolbus is stopped for
16the purpose of loading or unloading pupils.

17(3) Injury of a pupil inside a vehicle described in paragraph (1)
18as a result of acceleration, deceleration, or other movement of the
19vehicle.

20(b) The Department of the California Highway Patrol shall
21investigate all schoolbus accidents, except that accidents involving
22only property damage and occurring entirely on private property
23shall be investigated only if they involve a violation of this code.

24

SEC. 5.  

Section 13369 of the Vehicle Code is amended to read:

25

13369.  

(a) This section applies to the following endorsements
26and certificates:

27(1) Passenger transportation vehicle.

28(2) Hazardous materials.

29(3) Schoolbus.

30(4) School pupil activity bus.

31(5) Youth bus.

32(6) General public paratransit vehicle.

33(7) Farm labor vehicle.

34(8) Vehicle used for the transportation of developmentally
35 disabled persons.

36(b) The department shall refuse to issue or renew, or shall
37revoke, the certificate or endorsement ofbegin delete anyend deletebegin insert aend insert person who meets
38the following conditions:

39(1) Within three years, has committed any violation that results
40in a conviction assigned a violation point count of two or more,
P6    1as defined in Sections 12810 and 12810.5. The departmentbegin delete mayend delete
2begin insert shallend insert not refuse to issue or renew, nor may it revoke, a person’s
3hazardous materials or passenger transportation vehicle
4endorsement if the violation leading to the conviction occurred in
5the person’s private vehicle and not in a commercial motor vehicle,
6as defined in Section 15210.

7(2) Within three years, has had his or her driving privilege
8suspended, revoked, or on probation for any reason involving
9unsafe operation of a motor vehicle. The departmentbegin delete mayend deletebegin insert shallend insert
10 not refuse to issue or renew, nor may it revoke, a person’s
11passenger transportation vehicle endorsement if the person’s
12driving privilege has, within three years, been placed on probation
13only forbegin delete anyend deletebegin insert aend insert reason involving unsafe operation of a motor vehicle.

14(3) Notwithstanding paragraphs (1) and (2), does not meet the
15qualifications for issuance of a hazardous materials endorsement
16set forth in Parts 383, 384, and 1572 of Title 49 of the Code of
17Federal Regulations.

18(c) The department may refuse to issue or renew, or may suspend
19or revoke, the certificate or endorsement ofbegin delete anyend deletebegin insert aend insert person who
20meets any of the following conditions:

21(1) Within 12 months, has been involved as a driver in three
22accidents in which the driver caused or contributed to the causes
23of the accidents.

24(2) Within 24 months, as a driver, caused or contributed to the
25cause of an accident resulting in a fatality or serious injury or
26serious property damage in excess ofbegin delete seven hundred fifty dollars
27($750)end delete
begin insert one thousand dollars ($1,000)end insert.

28(3) Has violated any provision of this code, or any rule or
29regulation pertaining to the safe operation of a vehicle for which
30the certificate or endorsement was issued.

31(4) Has violated any restriction of the certificate, endorsement,
32or commercial driver’s license.

33(5) Has knowingly made a false statement or failed to disclose
34a material fact on an application for a certificate or endorsement.

35(6) Has been determined by the department to be a negligent or
36incompetent operator.

37(7) Has demonstrated irrational behavior to the extent that a
38reasonable and prudent person would have reasonable cause to
39believe that the applicant’s ability to perform the duties of a driver
40may be impaired.

P7    1(8) Excessively or habitually uses, or is addicted to, alcoholic
2beverages, narcotics, or dangerous drugs.

3(9) Does not meet the minimum medical standards established
4or approved by the department.

5(d) The department may cancel the certificate or endorsement
6of any driver who meets any of the following conditions:

7(1) Does not have a valid driver’s license of the appropriate
8class.

9(2) Has requested cancellation of the certificate or endorsement.

10(3) Has failed to meet any of the requirements for issuance or
11retention of the certificate or endorsement, including, but not
12limited to, payment of the proper fee, submission of an acceptable
13medical report and fingerprint cards, and compliance with
14prescribed training requirements.

15(4) Has had his or her driving privilege suspended or revoked
16for a cause involving other than the safe operation of a motor
17vehicle.

18(e) (1) The department shall refuse to issue or renew, or shall
19suspend or revoke, the passenger vehicle endorsement of a person
20who violates subdivision (b) of Section 5387 of the Public Utilities
21Code.

22(2) A person found to be in violation of subdivision (b) of
23Section 5387 of the Public Utilities Code shall be ineligible for a
24passenger vehicle endorsement that would permit him or her to
25drive a bus of any kind, including, but not limited to, a bus,
26schoolbus, youth bus, school pupil activity bus, trailer bus, or a
27transit bus, with passengers, for a period of five years.

28(f) (1) Reapplication following refusal or revocation under
29subdivision (b) or (c) may be made after a period of not less than
30one year from the effective date of denial or revocation, except in
31cases where a longer period of suspension or revocation is required
32by law.

33(2) Reapplication following cancellation under subdivision (d)
34may be made at any time without prejudice.

35

SEC. 6.  

Section 16000 of the Vehicle Code is amended to read:

36

16000.  

(a) The driver of a motor vehicle who is in any manner
37involved in an accident originating from the operation of the motor
38vehicle on a street or highway, or is involved in a reportable
39off-highway accident, as defined in Section 16000.1, that has
40resulted in damage to the property of any one person in excess of
P8    1begin delete seven hundred fifty dollars ($750)end deletebegin insert one thousand dollars ($1,000)end insert,
2or in bodily injury, or in the death of any person shall report the
3accident, within 10 days after the accident, either personally or
4through an insurance agent, broker, or legal representative, on a
5form approved by the department, to the office of the department
6at Sacramento, subject to this chapter. The driver shall identify on
7the form, by name and current residence address, if available, any
8person involved in the accident complaining of bodily injury.

9(b) A report is not required under subdivision (a) if the motor
10vehicle involved in the accident was owned or leased by, or under
11the direction of, the United States, this state, another state, or a
12local agency.

13(c) If none of the parties involved in an accident has reported
14the accident to the department under this section within one year
15following the date of the accident, the department is not required
16to file a report on the accident and the driver’s license suspension
17requirements of Section 16004 or 16070 do not apply.

18

SEC. 7.  

Section 16000.1 of the Vehicle Code is amended to
19read:

20

16000.1.  

(a) For purposes of this division, a “reportable
21off-highway accident” means an accidentbegin delete whichend deletebegin insert thatend insert includes all
22of the following:

23(1) Occurs off the street or highway.

24(2) Involves a vehicle that is subject to registration under this
25code.

26(3) Results in damages to the property of any one person in
27excess ofbegin delete seven hundred fifty dollars ($750)end deletebegin insert one thousand dollars
28($1,000),end insert
or in bodily injury or in the death of any person.

29(b) A “reportable off-highway accident” does not include any
30accidentbegin delete whichend deletebegin insert thatend insert occurs off-highway in which damage occurs
31only to the property of the driver or owner of the motor vehicle
32and no bodily injury or death of a person occurs.

33

SEC. 8.  

Section 16075 of the Vehicle Code is amended to read:

34

16075.  

(a) The suspension provisions of this article shall not
35apply to a driver or owner until 30 days after the department sends
36to the driver or owner notice of its intent to suspend his or her
37driving privilege, pursuant to subdivision (b) of Section 16070,
38and advises the driver or owner of his or her right to a hearing as
39begin delete hereinafterend delete providedbegin insert in this sectionend insert.

P9    1(b) If the driver or owner receiving the notice of intent to
2suspend wishes to have a hearing, the request for a hearing shall
3be made in writing to the department within 10 days of the receipt
4of the notice. Failure to respond to a notice of intent within 10
5days of receipt of the notice is a waiver of the person’s right to a
6hearing.

7(c) If the driver or owner makes a timely request for a hearing,
8the department shall hold the hearing before the effective date of
9the suspension to determine the applicability of this chapter to the
10driver or owner, including a determination of whether:

11(1) The accident has resulted in property damage in excess of
12begin delete seven hundred fifty dollars ($750)end deletebegin insert one thousand dollars ($1,000)end insert,
13or bodily injury, or death.

14(2) The driver or owner has established financial responsibility,
15as provided in Article 3 (commencing with Section 16050), was
16in effect at the time of the accident.

17(d) A request for a hearing does not stay the suspension of a
18person’s driving privilege. However, if the department does not
19conduct a hearing and make a determination pursuant thereto within
20the time limit provided in subdivision (b) of Section 16070, the
21department shall stay the effective date of the order of suspension
22pending a determination.

23(e) The hearing provided for by this section shall be held in the
24county of residence of the person requesting the hearing. The
25hearing shall be conducted pursuant to Article 3 (commencing
26with Section 14100) of Chapter 3 of Division 6.

27(f) The department shall render its decision within 15 days after
28conclusion of the hearing.

29

SEC. 9.  

Section 16251 of the Vehicle Code is amended to read:

30

16251.  

As used in this chapter and Chapter 3 (commencing
31with Section 16430), “cause of action” means any cause of action
32for damage to property in excess ofbegin delete seven hundred fifty dollars
33($750)end delete
begin insert one thousand dollars ($1,000),end insert or for damage in any amount
34on account of bodily injury to or death of any person resulting
35from the operation by the defendant or any other person of any
36motor vehicle upon a highway in this state, except a cause of action
37based upon statutory liability by reason of signing the application
38of a minor for a driver’s license.

39

SEC. 10.  

Section 16377 of the Vehicle Code is amended to
40read:

P10   1

16377.  

begin deleteEvery end deletebegin insertFor the purposes of his chapter, every end insertjudgment
2shallbegin delete for the purposes of this chapter be deemed satisfied:end deletebegin insert be
3deemed satisfied if any of the following apply:end insert

4(a) begin deleteWhen fifteen end deletebegin insertFifteen end insertthousand dollars ($15,000) has been
5credited, upon any judgment in excess of that amount, or upon all
6judgments, collectively, which together total in excess of that
7amount, for personal injury to or death of one person as a result
8of any one accident.

9(b) begin deleteWhen, subject end deletebegin insertSubject end insertto the limit of fifteen thousand dollars
10($15,000) as to one person, the sum of thirty thousand dollars
11($30,000) has been credited, upon any judgment in excess of that
12amount, or upon all judgments, collectively, which together total
13in excess of that amount, for personal injury to or death of more
14than one person as a result of any one accident.

15(c) begin deleteWhen five end deletebegin insertFive end insertthousand dollars ($5,000) has been credited,
16upon any judgment in excess of that amount, or upon all judgments,
17collectively, each of which is in excess ofbegin delete seven hundred fifty
18dollars ($750)end delete
begin insert one thousand dollars ($1,000)end insert, and which together
19total in excess of five thousand dollars ($5,000), for damage to
20property of others as a result of any one accident.

21(d) begin deleteWhen the end deletebegin insertThe end insertjudgment debtor or a person designated by
22him or her has deposited with the department a sum equal to the
23amount of the unsatisfied judgment for which the suspension action
24 was taken and presents proof, satisfactory to the department, of
25inability to locate the judgment creditor.

26

SEC. 11.  

Section 16430 of the Vehicle Code is amended to
27read:

28

16430.  

begin deleteProof end deletebegin insert“Proof end insertof financialbegin delete responsibilityend deletebegin insert responsibilityend insertbegin insert,”end insert
29 when required by this codebegin insert,end insert means proof of financial responsibility
30resulting from the ownership or operation of a motor vehicle and
31arising by reason of personal injury to, or death of, any one person,
32of at least fifteen thousand dollars ($15,000), and, subject to the
33limit of fifteen thousand dollars ($15,000) for each person injured
34or killed, of at least thirty thousand dollars ($30,000) for the injury
35to, or the death of, two or more persons in any one accident, and
36for damages to property (in excess ofbegin delete seven hundred fifty dollars
37($750))end delete
begin insert one thousand dollars ($1,000)end insertbegin insert)end insert, of at least five thousand
38dollars ($5,000) resulting from any one accident. Proof of financial
39responsibility may be given in any manner authorized in this
40chapter.

P11   1

SEC. 12.  

Section 16434 of the Vehicle Code is amended to
2read:

3

16434.  

Proof of financial responsibility may be given by a
4bond. The bond shall be conditioned for the payment of the amount
5specified in Section 16430, and shall provide for the entry of
6judgment on motion of the state in favor of any holder of any final
7judgment on account of damages to property overbegin delete seven hundred
8fifty dollars ($750)end delete
begin insert one thousand dollars ($1,000)end insert in amount, or
9injury to any person caused by the operation of the person’s motor
10vehicle.



O

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