Amended in Assembly June 3, 2015

Amended in Senate April 6, 2015

Senate BillNo. 438


Introduced by Senator Hill

February 25, 2015


An act tobegin delete amendend deletebegin insert amend, repeal, and addend insert Sections 116.870 and 116.880 of the Code of Civil Procedure, and tobegin delete amendend deletebegin insert amend, repeal, and addend insert Sections 1656.2, 12517.1, 13369, 16000, 16000.1, 16075, 16251, 16377,begin insert 16378,end insert 16430, and 16434 of the Vehicle Code, relating to motor vehicles.

LEGISLATIVE COUNSEL’S DIGEST

SB 438, as amended, 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 billbegin delete wouldend deletebegin insert would, beginning January 1, 2017,end insert 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    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 116.870 of the end insertbegin insertCode of Civil Procedureend insert
2begin insert is amended to read:end insert

3

116.870.  

begin insert(a)end insertbegin insertend insertSections 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 of seven
7hundred fifty dollars ($750) or for bodily injury to, or death of, a
8person in any amount, and (2) resulted from the operation of a
9motor vehicle upon a California highway by the defendant, or by
10any other person for whose conduct the defendant was liable, unless
11the liability resulted from the defendant’s signing the application
12of a minor for a driver’s license.

begin insert

13(b) This section shall remain in effect only until January 1, 2017,
14and as of that date is repealed, unless a later enacted statute, that
15is enacted before January 1, 2017, deletes or extends that date.

end insert
16begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 116.870 is added to the end insertbegin insertCode of Civil
17Procedure
end insert
begin insert, to read:end insert

begin insert
18

begin insert116.870.end insert  

(a) Sections 16250 to 16381, inclusive, of the Vehicle
19Code, regarding the suspension of the judgment debtor’s privilege
20to operate a motor vehicle for failing to satisfy a judgment, apply
21if the judgment (1) was for damage to property in excess of one
22thousand dollars ($1,000) or for bodily injury to, or death of, a
23person in any amount, and (2) resulted from the operation of a
24motor vehicle upon a California highway by the defendant, or by
25any other person for whose conduct the defendant was liable,
26unless the liability resulted from the defendant’s signing the
27application of a minor for a driver’s license.

28(b) This section shall become operative on January 1, 2017.

end insert
29begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 116.880 of the end insertbegin insertCode of Civil Procedureend insertbegin insert is
30amended to read:end insert

31

116.880.  

(a) If the judgment (1) was for seven hundred fifty
32dollars ($750) or less, (2) resulted from a motor vehicle accident
33occurring on a California highway caused by the defendant’s
34operation of a motor vehicle, and (3) has remained unsatisfied for
35more than 90 days after the judgment became final, the judgment
P3    1creditor may file with the Department of Motor Vehicles a notice
2requesting a suspension of the judgment debtor’s privilege to
3operate a motor vehicle.

4(b) The notice shall state that the judgment has not been
5satisfied, and shall be accompanied by (1) a fee set by the
6department, (2) the judgment of the court determining that the
7judgment resulted from a motor vehicle accident occurring on a
8California highway caused by the judgment debtor’s operation of
9a motor vehicle, and (3) a declaration that the judgment has not
10been satisfied. The fee shall be used by the department to finance
11the costs of administering this section andbegin delete mayend deletebegin insert shallend insert not exceed
12the department’s actual costs.

13(c) Upon receipt of a notice, the department shall attempt to
14notify the judgment debtor by telephone, if possible, otherwise by
15certified mail, that the judgment debtor’s privilege to operate a
16motor vehicle will be suspended for a period of 90 days, beginning
1720 days after receipt of notice by the department from the judgment
18creditor, unless satisfactory proof, as provided in subdivision (e),
19is provided to the department before that date.

20(d) At the time the notice is filed, the department shall give the
21judgment creditor a copy of the notice thatbegin delete shall indicateend deletebegin insert indicatesend insert
22 the filing fee paid by the judgment creditor, andbegin delete shall includeend delete
23begin insert includesend insert a space to be signed by the judgment creditor
24acknowledging payment of the judgment by the judgment debtor.
25The judgment creditor shall mail or deliver a signed copy of the
26acknowledgment to the judgment debtor once the judgment is
27satisfied.

28(e) The department shall terminate the suspension, or the
29suspension proceedings, upon the occurrence of one or more of
30the following:

31(1) Receipt of proof that the judgment has been satisfied, either
32(A) by a copy of the notice required by this section signed by the
33judgment creditor acknowledging satisfaction of the judgment, or
34 (B) by a declaration of the judgment debtor stating that the
35judgment has been satisfied.

36(2) Receipt of proof that the judgment debtor is complying with
37a court-ordered payment schedule.

38(3) Proof that the judgment debtor had insurance covering the
39accident sufficient to satisfy the judgment.

P4    1(4) A deposit with the department of the amount of the
2unsatisfied judgment, if the judgment debtor presents proof,
3satisfactory to the department, of inability to locate the judgment
4creditor.

5(5) At the end of 90 days.

6(f) begin deleteWhen end deletebegin insertIf end insertthe suspension has been terminated under
7subdivision (e), the action is final andbegin delete mayend deletebegin insert shallend insert not be reinstituted.
8begin delete Wheneverend deletebegin insert Ifend insert the suspension is terminated, Section 14904 of the
9Vehicle Code shall apply. Money deposited with the department
10under this section shall be handled in the same manner as money
11deposited underbegin delete subdivision (d)end deletebegin insert paragraph (4) of subdivision (a)end insert
12 of Section 16377 of the Vehicle Code.

13(g) A public agency is not liable for an injury caused by the
14suspension, termination of suspension, or the failure to suspend a
15person’s privilege to operate a motor vehicle as authorized by this
16section.

begin insert

17(h) This section shall remain in effect only until January 1, 2017,
18and as of that date is repealed, unless a later enacted statute, that
19is enacted before January 1, 2017, deletes or extends that date.

end insert
20begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 116.880 is added to the end insertbegin insertCode of Civil
21Procedure
end insert
begin insert, to read:end insert

begin insert
22

begin insert116.880.end insert  

(a) If the judgment (1) was for one thousand dollars
23($1,000) or less, (2) resulted from a motor vehicle accident
24occurring on a California highway caused by the defendant’s
25operation of a motor vehicle, and (3) has remained unsatisfied for
26more than 90 days after the judgment became final, the judgment
27creditor may file with the Department of Motor Vehicles a notice
28requesting a suspension of the judgment debtor’s privilege to
29operate a motor vehicle.

30(b) The notice shall state that the judgment has not been
31satisfied, and shall be accompanied by (1) a fee set by the
32department, (2) the judgment of the court determining that the
33judgment resulted from a motor vehicle accident occurring on a
34California highway caused by the judgment debtor’s operation of
35a motor vehicle, and (3) a declaration that the judgment has not
36been satisfied. The fee shall be used by the department to finance
37the costs of administering this section and shall not exceed the
38department’s actual costs.

39(c) Upon receipt of a notice, the department shall attempt to
40notify the judgment debtor by telephone, if possible, otherwise by
P5    1certified mail, that the judgment debtor’s privilege to operate a
2motor vehicle will be suspended for a period of 90 days, beginning
320 days after receipt of notice by the department from the judgment
4creditor, unless satisfactory proof, as provided in subdivision (e),
5is provided to the department before that date.

6(d) At the time the notice is filed, the department shall give the
7judgment creditor a copy of the notice that indicates the filing fee
8paid by the judgment creditor, and includes a space to be signed
9by the judgment creditor acknowledging payment of the judgment
10by the judgment debtor. The judgment creditor shall mail or deliver
11a signed copy of the acknowledgment to the judgment debtor once
12the judgment is satisfied.

13(e) The department shall terminate the suspension, or the
14suspension proceedings, upon the occurrence of one or more of
15the following:

16(1) Receipt of proof that the judgment has been satisfied, either
17(A) by a copy of the notice required by this section signed by the
18judgment creditor acknowledging satisfaction of the judgment, or
19(B) by a declaration of the judgment debtor stating that the
20judgment has been satisfied.

21(2) Receipt of proof that the judgment debtor is complying with
22a court-ordered payment schedule.

23(3) Proof that the judgment debtor had insurance covering the
24accident sufficient to satisfy the judgment.

25(4) A deposit with the department of the amount of the
26unsatisfied judgment, if the judgment debtor presents proof,
27satisfactory to the department, of inability to locate the judgment
28creditor.

29(5) At the end of 90 days.

30(f) If the suspension has been terminated under subdivision (e),
31the action is final and shall not be reinstituted. If the suspension
32is terminated, Section 14904 of the Vehicle Code shall apply.
33Money deposited with the department under this section shall be
34handled in the same manner as money deposited under paragraph
35(4) of subdivision (a) of Section 16377 of the Vehicle Code.

36(g) A public agency is not liable for an injury caused by the
37suspension, termination of suspension, or the failure to suspend
38a person’s privilege to operate a motor vehicle as authorized by
39this section.

40(h) This section shall become operative on January 1, 2017.

end insert
P6    1begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 1656.2 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to read:end insert

2

1656.2.  

begin insert(a)end insertbegin insertend insertThe department shall prepare and publish a printed
3summary describing the penalties for noncompliance with Sections
416000 and 16028, which shall be included with each motor vehicle
5registration, registration renewal, and transfer of registration and
6with each driver’s license and license renewal. The printed
7summary may contain, but is not limited to, the following wording:

89“IMPORTANT FACTS ABOUT ENFORCEMENT OF
10CALIFORNIA’S COMPULSORY FINANCIAL
11RESPONSIBILITY LAW
12

13California law requires every driver to carry written evidence
14of valid automobile liability insurance,begin delete a thirty-five thousand
15dollar ($35,000) bond, a thirty-five thousand dollar ($35,000)end delete
begin insert a
16$35,000 bond, a $35,000end insert
cash deposit, or a certificate of
17self-insurance that has been issued by the Department of Motor
18Vehicles.


begin insertend insert

20You must provide evidence of financial responsibility when you
21renew the registration of a motor vehicle, and after you are cited
22by a peace officer for a traffic violation or are involved in any
23traffic accident. The law requires that you provide the officer
24with the name and address of your insurer and the policy
25identification number. Your insurer will provide written evidence
26of this number. Failure to provide evidence of your financial
27responsibility can result in fines of up tobegin delete five hundred dollars
28($500)end delete
begin insert $500end insert and loss of your driver’s license. Falsification of
29evidence can result in fines of up tobegin delete seven hundred fifty dollars
30($750)end delete
begin insert $750end insert or 30 days in jail, or both, in addition to a one-year
31suspension of driving privileges.


begin insertend insert

33Under existing California law, if you are involved in an accident
34that results in damages of overbegin delete seven hundred fifty dollars ($750)end delete
35begin insert $750end insert to the property of any person or in any injury or fatality,
36you must file a report of the accident with the Department of
37Motor Vehicles within 10 days of the accident. If you fail to file
38a report or fail to provide evidence of financial responsibility on
39the report, your driving privilege will be suspended for up to
40four years. Your suspension notice will notify you of the
P7    1department’s action and of your right to a hearing. Your
2suspension notice will also inform you that if you request a
3hearing, it must be conducted within 30 days of your written
4request, and that a decision is to be rendered within 15 days of
5the conclusion of the hearing.”


begin insertend insert
begin insert

7(b) This section shall remain in effect only until January 1,
82017, and as of that date is repealed, unless a later enacted statute,
9that is enacted before January 1, 2017, deletes or extends that
10date.

end insert
11begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 1656.2 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
12

begin insert1656.2.end insert  

(a) The department shall prepare and publish a printed
13summary describing the penalties for noncompliance with Sections
1416000 and 16028, which shall be included with each motor vehicle
15registration, registration renewal, and transfer of registration and
16with each driver’s license and license renewal. The printed
17summary may contain, but is not limited to, the following wording:

1819“IMPORTANT FACTS ABOUT ENFORCEMENT OF
20CALIFORNIA’S COMPULSORY FINANCIAL RESPONSIBILITY
21LAW
22

23California law requires every driver to carry written evidence
24of valid automobile liability insurance, a $35,000 bond, a
25$35,000 cash deposit, or a certificate of self-insurance that has
26been issued by the Department of Motor Vehicles.


28You must provide evidence of financial responsibility when you
29renew the registration of a motor vehicle, and after you are cited
30by a peace officer for a traffic violation or are involved in any
31traffic accident. The law requires that you provide the officer
32with the name and address of your insurer and the policy
33identification number. Your insurer will provide written evidence
34of this number. Failure to provide evidence of your financial
35responsibility can result in fines of up to $500 and loss of your
36driver’s license. Falsification of evidence can result in fines of
37up to $750 or 30 days in jail, or both, in addition to a one-year
38suspension of driving privileges.


P8    1Under existing California law, if you are involved in an accident
2that results in damages of over $1,000 to the property of any
3person or in any injury or fatality, you must file a report of the
4accident with the Department of Motor Vehicles within 10 days
5of the accident. If you fail to file a report or fail to provide
6evidence of financial responsibility on the report, your driving
7privilege will be suspended for up to four years. Your suspension
8notice will notify you of the department’s action and of your
9right to a hearing. Your suspension notice will also inform you
10that if you request a hearing, it must be conducted within 30
11days of your written request, and that a decision is to be rendered
12within 15 days of the conclusion of the hearing.”


14(b) This section shall become operative on January 1, 2017.

end insert
15begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 12517.1 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to
16read:end insert

17

12517.1.  

(a) A “schoolbus accident” means any of the
18following:

19(1) A motor vehicle accident resulting in property damage in
20excess of seven hundred fifty dollars ($750) or personal injury, on
21public or private property, and involving a schoolbus, youth bus,
22school pupil activity bus, or general public paratransit vehicle
23transporting a pupil.

24(2) A collision between a vehicle and a pupil or a schoolbus
25driver while the pupil or driver is crossing the highway when the
26schoolbus flashing red signal lamps are required to be operated
27pursuant to Section 22112 or when the schoolbus is stopped for
28the purpose of loading or unloading pupils.

29(3) Injury of a pupil inside a vehicle described in paragraph (1)
30as a result of acceleration, deceleration, or other movement of the
31vehicle.

32(b) The Department of the California Highway Patrol shall
33investigate all schoolbus accidents, except that accidents involving
34only property damage and occurring entirely on private property
35shall be investigated only if they involve a violation of this code.

begin insert

36(c) This section shall remain in effect only until January 1, 2017,
37and as of that date is repealed, unless a later enacted statute, that
38is enacted before January 1, 2017, deletes or extends that date.

end insert
39begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 12517.1 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
P9    1

begin insert12517.1.end insert  

(a) A “schoolbus accident” means any of the
2following:

3(1) A motor vehicle accident resulting in property damage in
4excess of one thousand dollars ($1,000), or personal injury, on
5public or private property, and involving a schoolbus, youth bus,
6school pupil activity bus, or general public paratransit vehicle
7transporting a pupil.

8(2) A collision between a vehicle and a pupil or a schoolbus
9driver while the pupil or driver is crossing the highway when the
10schoolbus flashing red signal lamps are required to be operated
11pursuant to Section 22112 or when the schoolbus is stopped for
12the purpose of loading or unloading pupils.

13(3) Injury of a pupil inside a vehicle described in paragraph
14(1) as a result of acceleration, deceleration, or other movement
15of the vehicle.

16(b) The Department of the California Highway Patrol shall
17investigate all schoolbus accidents, except that accidents involving
18only property damage and occurring entirely on private property
19shall be investigated only if they involve a violation of this code.

20(c) This section shall become operative on January 1, 2017.

end insert
21begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 13369 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to read:end insert

22

13369.  

(a) This section applies to the following endorsements
23and certificates:

24(1) Passenger transportation vehicle.

25(2) Hazardous materials.

26(3) Schoolbus.

27(4) School pupil activity bus.

28(5) Youth bus.

29(6) General public paratransit vehicle.

30(7) Farm labor vehicle.

31(8) Vehicle used for the transportation of developmentally
32disabled persons.

33(b) The department shall refuse to issue or renew, or shall
34revoke, the certificate or endorsement ofbegin delete anyend deletebegin insert aend insert person who meets
35the following conditions:

36(1) Within three years, has committed any violation that results
37in a conviction assigned a violation point count of two or more,
38as defined in Sections 12810 and 12810.5. The departmentbegin delete mayend delete
39begin insert shallend insert not refuse to issue or renew, nor may it revoke, a person’s
40hazardous materials or passenger transportation vehicle
P10   1endorsement if the violation leading to the conviction occurred in
2the person’s private vehicle and not in a commercial motor vehicle,
3as defined in Section 15210.

4(2) Within three years, has had his or her driving privilege
5suspended, revoked, or on probation for any reason involving
6unsafe operation of a motor vehicle. The departmentbegin delete mayend deletebegin insert shallend insert
7 not refuse to issue or renew, nor may it revoke, a person’s
8passenger transportation vehicle endorsement if the person’s
9driving privilege has, within three years, been placed on probation
10only forbegin delete anyend deletebegin insert aend insert reason involving unsafe operation of a motor vehicle.

11(3) Notwithstanding paragraphs (1) and (2), does not meet the
12qualifications for issuance of a hazardous materials endorsement
13set forth in Parts 383, 384, and 1572 of Title 49 of the Code of
14Federal Regulations.

15(c) The department may refuse to issue or renew, or may suspend
16or revoke, the certificate or endorsement ofbegin delete anyend deletebegin insert aend insert person who
17meets any of the following conditions:

18(1) Within 12 months, has been involved as a driver in three
19accidents in which the driver caused or contributed to the causes
20of the accidents.

21(2) Within 24 months, as a driver, caused or contributed to the
22cause of an accident resulting in a fatality or serious injury or
23serious property damage in excess of seven hundred fifty dollars
24($750).

25(3) Has violated any provision of this code, or any rule or
26regulation pertaining to the safe operation of a vehicle for which
27the certificate or endorsement was issued.

28(4) Has violated any restriction of the certificate, endorsement,
29or commercial driver’s license.

30(5) Has knowingly made a false statement or failed to disclose
31a material fact on an application for a certificate or endorsement.

32(6) Has been determined by the department to be a negligent or
33incompetent operator.

34(7) Has demonstrated irrational behavior to the extent that a
35reasonable and prudent person would have reasonable cause to
36believe that the applicant’s ability to perform the duties of a driver
37may be impaired.

38(8) Excessively or habitually uses, or is addicted to, alcoholic
39beverages, narcotics, or dangerous drugs.

P11   1(9) Does not meet the minimum medical standards established
2or approved by the department.

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

5(1) Does not have a valid driver’s license of the appropriate
6class.

7(2) Has requested cancellation of the certificate or endorsement.

8(3) Has failed to meet any of the requirements for issuance or
9retention of the certificate or endorsement, including, but not
10limited to, payment of the proper fee, submission of an acceptable
11medical report and fingerprint cards, and compliance with
12prescribed training requirements.

13(4) Has had his or her driving privilege suspended or revoked
14for a cause involving other than the safe operation of a motor
15vehicle.

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

20(2) A person found to be in violation of subdivision (b) of
21Section 5387 of the Public Utilities Code shall be ineligible for a
22passenger vehicle endorsement that would permit him or her to
23drive a bus of any kind, including, but not limited to, a bus,
24schoolbus, youth bus, school pupil activity bus, trailer bus, or a
25transit bus, with passengers, for a period of five years.

26(f) (1) Reapplication following refusal or revocation under
27subdivision (b) or (c) may be made after a period of not less than
28one year from the effective date of denial or revocation, except in
29cases where a longer period of suspension or revocation is required
30by law.

31(2) Reapplication following cancellation under subdivision (d)
32may be made at any time without prejudice.

begin insert

33(g) This section shall remain in effect only until January 1, 2017,
34and as of that date is repealed, unless a later enacted statute, that
35is enacted before January 1, 2017, deletes or extends that date.

end insert
36begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 13369 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
37

begin insert13369.end insert  

(a) This section applies to the following endorsements
38and certificates:

39(1) Passenger transportation vehicle.

40(2) Hazardous materials.

P12   1(3) Schoolbus.

2(4) School pupil activity bus.

3(5) Youth bus.

4(6) General public paratransit vehicle.

5(7) Farm labor vehicle.

6(8) Vehicle used for the transportation of developmentally
7disabled persons.

8(b) The department shall refuse to issue or renew, or shall
9revoke, the certificate or endorsement of a person who meets the
10following conditions:

11(1) Within three years, has committed any violation that results
12in a conviction assigned a violation point count of two or more,
13as defined in Sections 12810 and 12810.5. The department shall
14not refuse to issue or renew, nor may it revoke, a person’s
15hazardous materials or passenger transportation vehicle
16endorsement if the violation leading to the conviction occurred in
17the person’s private vehicle and not in a commercial motor vehicle,
18as defined in Section 15210.

19(2) Within three years, has had his or her driving privilege
20suspended, revoked, or on probation for any reason involving
21unsafe operation of a motor vehicle. The department shall not
22refuse to issue or renew, nor may it revoke, a person’s passenger
23transportation vehicle endorsement if the person’s driving privilege
24has, within three years, been placed on probation only for a reason
25involving unsafe operation of a motor vehicle.

26(3) Notwithstanding paragraphs (1) and (2), does not meet the
27qualifications for issuance of a hazardous materials endorsement
28set forth in Parts 383, 384, and 1572 of Title 49 of the Code of
29Federal Regulations.

30(c) The department may refuse to issue or renew, or may suspend
31or revoke, the certificate or endorsement of a person who meets
32any of the following conditions:

33(1) Within 12 months, has been involved as a driver in three
34accidents in which the driver caused or contributed to the causes
35of the accidents.

36(2) Within 24 months, as a driver, caused or contributed to the
37cause of an accident resulting in a fatality or serious injury or
38serious property damage in excess of one thousand dollars
39($1,000).

P13   1(3) Has violated any provision of this code, or any rule or
2regulation pertaining to the safe operation of a vehicle for which
3the certificate or endorsement was issued.

4(4) Has violated any restriction of the certificate, endorsement,
5or commercial driver’s license.

6(5) Has knowingly made a false statement or failed to disclose
7a material fact on an application for a certificate or endorsement.

8(6) Has been determined by the department to be a negligent
9or incompetent operator.

10(7) Has demonstrated irrational behavior to the extent that a
11reasonable and prudent person would have reasonable cause to
12believe that the applicant’s ability to perform the duties of a driver
13may be impaired.

14(8) Excessively or habitually uses, or is addicted to, alcoholic
15beverages, narcotics, or dangerous drugs.

16(9) Does not meet the minimum medical standards established
17or approved by the department.

18(d) The department may cancel the certificate or endorsement
19of any driver who meets any of the following conditions:

20(1) Does not have a valid driver’s license of the appropriate
21class.

22(2) Has requested cancellation of the certificate or endorsement.

23(3) Has failed to meet any of the requirements for issuance or
24retention of the certificate or endorsement, including, but not
25limited to, payment of the proper fee, submission of an acceptable
26medical report and fingerprint cards, and compliance with
27prescribed training requirements.

28(4) Has had his or her driving privilege suspended or revoked
29for a cause involving other than the safe operation of a motor
30vehicle.

31(e) (1) The department shall refuse to issue or renew, or shall
32suspend or revoke, the passenger vehicle endorsement of a person
33who violates subdivision (b) of Section 5387 of the Public Utilities
34Code.

35(2) A person found to be in violation of subdivision (b) of Section
365387 of the Public Utilities Code shall be ineligible for a passenger
37vehicle endorsement that would permit him or her to drive a bus
38of any kind, including, but not limited to, a bus, schoolbus, youth
39bus, school pupil activity bus, trailer bus, or a transit bus, with
40passengers, for a period of five years.

P14   1(f) (1) Reapplication following refusal or revocation under
2subdivision (b) or (c) may be made after a period of not less than
3one year from the effective date of denial or revocation, except in
4cases where a longer period of suspension or revocation is required
5by law.

6(2) Reapplication following cancellation under subdivision (d)
7may be made at any time without prejudice.

8(g) This section shall become operative on January 1, 2017.

end insert
9begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 16000 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to
10read:end insert

11

16000.  

(a) The driver of a motor vehicle who is in any manner
12involved in an accident originating from the operation of the motor
13vehicle on a street or highway, or is involved in a reportable
14off-highway accident, as defined in Section 16000.1, that has
15resulted in damage to the property of any one person in excess of
16seven hundred fifty dollars ($750), or in bodily injury, or in the
17death of any person shall report the accident, within 10 days after
18the accident, either personally or through an insurance agent,
19broker, or legal representative, on a form approved by the
20department, to the office of the department at Sacramento, subject
21to this chapter. The driver shall identify on the form, by name and
22current residence address, if available, any person involved in the
23accident complaining of bodily injury.

24(b) A report is not required under subdivision (a) if the motor
25vehicle involved in the accident was owned or leased by, or under
26the direction of, the United States, this state, another state, or a
27local agency.

28(c) If none of the parties involved in an accident has reported
29the accident to the department under this section within one year
30following the date of the accident, the department is not required
31to file a report on the accident and the driver’s license suspension
32requirements of Section 16004 or 16070 do not apply.

begin insert

33(d) This section shall remain in effect only until January 1, 2017,
34and as of that date is repealed, unless a later enacted statute, that
35is enacted before January 1, 2017, deletes or extends that date.

end insert
36begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 16000 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
37

begin insert16000.end insert  

(a) The driver of a motor vehicle who is in any manner
38involved in an accident originating from the operation of the motor
39vehicle on a street or highway, or is involved in a reportable
40off-highway accident, as defined in Section 16000.1, that has
P15   1resulted in damage to the property of any one person in excess of
2one thousand dollars ($1,000), or in bodily injury, or in the death
3of any person shall report the accident, within 10 days after the
4accident, either personally or through an insurance agent, broker,
5or legal representative, on a form approved by the department, to
6the office of the department at Sacramento, subject to this chapter.
7The driver shall identify on the form, by name and current
8residence address, if available, any person involved in the accident
9complaining of bodily injury.

10(b) A report is not required under subdivision (a) if the motor
11vehicle involved in the accident was owned or leased by, or under
12the direction of, the United States, this state, another state, or a
13local agency.

14(c) If none of the parties involved in an accident has reported
15the accident to the department under this section within one year
16following the date of the accident, the department is not required
17to file a report on the accident and the driver’s license suspension
18requirements of Section 16004 or 16070 do not apply.

19(d) This section shall become operative on January 1, 2017.

end insert
20begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 16000.1 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to
21read:end insert

22

16000.1.  

(a) For purposes of this division, a “reportable
23off-highway accident” means an accidentbegin delete whichend deletebegin insert thatend insert includes all
24of the following:

25(1) Occurs off the street or highway.

26(2) Involves a vehicle that is subject to registration under this
27code.

28(3) Results in damages to the property of any one person in
29excess of seven hundred fifty dollars ($750) or in bodily injury or
30in the death of any person.

31(b) A “reportable off-highway accident” does not include any
32accidentbegin delete whichend deletebegin insert thatend insert occurs off-highway in which damage occurs
33only to the property of the driver or owner of the motor vehicle
34and no bodily injury or death of a person occurs.

begin insert

35(c) This section shall remain in effect only until January 1, 2017,
36and as of that date is repealed, unless a later enacted statute, that
37is enacted before January 1, 2017, deletes or extends that date.

end insert
38begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 16000.1 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to
39read:end insert

begin insert
P16   1

begin insert16000.1.end insert  

(a) For purposes of this division, a “reportable
2off-highway accident” means an accident that includes all of the
3following:

4(1) Occurs off the street or highway.

5(2) Involves a vehicle that is subject to registration under this
6code.

7(3) Results in damages to the property of any one person in
8excess of one thousand dollars ($1,000) or in bodily injury or in
9the death of any person.

10(b) A “reportable off-highway accident” does not include any
11accident that occurs off-highway in which damage occurs only to
12the property of the driver or owner of the motor vehicle and no
13bodily injury or death of a person occurs.

14(c) This section shall become operative on January 1, 2017.

end insert
15begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 16075 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to
16read:end insert

17

16075.  

(a) The suspension provisions of this article shall not
18apply to a driver or owner until 30 days after the department sends
19to the driver or owner notice of its intent to suspend his or her
20driving privilege, pursuant to subdivision (b) of Section 16070,
21and advises the driver or owner of his or her right to a hearing as
22begin delete hereinafter provided.end deletebegin insert provided in this section.end insert

23(b) If the driver or owner receiving the notice of intent to
24suspend wishes to have a hearing, the request for a hearing shall
25be made in writing to the department within 10 days of the receipt
26of the notice. Failure to respond to a notice of intent within 10
27days of receipt of the notice is a waiver of the person’s right to a
28hearing.

29(c) If the driver or owner makes a timely request for a hearing,
30the department shall hold the hearing before the effective date of
31the suspension to determine the applicability of this chapter to the
32driver or owner, including a determination of whether:

33(1) The accident has resulted in property damage in excess of
34seven hundred fifty dollars ($750), or bodily injury, or death.

35(2) The driver or owner has establishedbegin insert evidence ofend insert financial
36responsibility, as provided in Article 3 (commencing with Section
3716050),begin insert thatend insert was in effect at the time of the accident.

38(d) A request for a hearing does not stay the suspension of a
39person’s driving privilege. However, if the department does not
40conduct a hearing and make a determination pursuant thereto within
P17   1the time limit provided in subdivision (b) of Section 16070, the
2department shall stay the effective date of the order of suspension
3pending a determination.

4(e) The hearing provided for by this section shall be held in the
5county of residence of the person requesting the hearing. The
6hearing shall be conducted pursuant to Article 3 (commencing
7with Section 14100) of Chapter 3 of Division 6.

8(f) The department shall render its decision within 15 days after
9conclusion of the hearing.

begin insert

10(g) This section shall remain in effect only until January 1, 2017,
11and as of that date is repealed, unless a later enacted statute, that
12is enacted before January 1, 2017, deletes or extends that date.

end insert
13begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 16075 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
14

begin insert16075.end insert  

(a) The suspension provisions of this article shall not
15apply to a driver or owner until 30 days after the department sends
16to the driver or owner notice of its intent to suspend his or her
17driving privilege, pursuant to subdivision (b) of Section 16070,
18and advises the driver or owner of his or her right to a hearing as
19provided in this section.

20(b) If the driver or owner receiving the notice of intent to
21suspend wishes to have a hearing, the request for a hearing shall
22be made in writing to the department within 10 days of the receipt
23of the notice. Failure to respond to a notice of intent within 10
24days of receipt of the notice is a waiver of the person’s right to a
25hearing.

26(c) If the driver or owner makes a timely request for a hearing,
27the department shall hold the hearing before the effective date of
28the suspension to determine the applicability of this chapter to the
29driver or owner, including a determination of whether:

30(1) The accident has resulted in property damage in excess of
31one thousand dollars ($1,000), or bodily injury, or death.

32(2) The driver or owner has established evidence of financial
33responsibility, as provided in Article 3 (commencing with Section
3416050), that was in effect at the time of the accident.

35(d) A request for a hearing does not stay the suspension of a
36person’s driving privilege. However, if the department does not
37conduct a hearing and make a determination pursuant thereto
38within the time limit provided in subdivision (b) of Section 16070,
39the department shall stay the effective date of the order of
40suspension pending a determination.

P18   1(e) The hearing provided for by this section shall be held in the
2county of residence of the person requesting the hearing. The
3hearing shall be conducted pursuant to Article 3 (commencing
4with Section 14100) of Chapter 3 of Division 6.

5(f) The department shall render its decision within 15 days after
6conclusion of the hearing.

7(g) This section shall become operative on January 1, 2017.

end insert
8begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 16251 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to
9read:end insert

10

16251.  

begin insert(a)end insertbegin insertend insertAs used in this chapter and Chapter 3 (commencing
11with Section 16430), “cause of action” means any cause of action
12for damage to property in excess of seven hundred fifty dollars
13($750) or for damage in any amount on account of bodily injury
14to or death of any person resulting from the operation by the
15defendant or any other person of any motor vehicle upon a highway
16in this state, except a cause of action based upon statutory liability
17by reason of signing the application of a minor for a driver’s
18license.

begin insert

19(b) This section shall remain in effect only until January 1, 2017,
20and as of that date is repealed, unless a later enacted statute, that
21is enacted before January 1, 2017, deletes or extends that date.

end insert
22begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 16251 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
23

begin insert16251.end insert  

(a) As used in this chapter and Chapter 3 (commencing
24with Section 16430), “cause of action” means any cause of action
25for damage to property in excess of one thousand dollars ($1,000)
26or for damage in any amount on account of bodily injury to or
27death of any person resulting from the operation by the defendant
28or any other person of any motor vehicle upon a highway in this
29state, except a cause of action based upon statutory liability by
30reason of signing the application of a minor for a driver’s license.

31(b) This section shall become operative on January 1, 2017.

end insert
32begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 16377 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to
33read:end insert

34

16377.  

begin deleteEvery judgment shall for end deletebegin insert(a)end insertbegin insertend insertbegin insertFor end insertthe purposes of this
35begin delete chapter be deemed satisfied:end deletebegin insert chapter, every judgment shall be
36deemed satisfied if any of the following apply:end insert

begin delete

37(a) When fifteen

end delete

38begin insert(1)end insertbegin insertend insertbegin insertFifteenend insert thousand dollars ($15,000) has been credited, upon
39any judgment in excess of that amount, or upon all judgments,
40collectively, which together total in excess of that amount, for
P19   1personal injury to or death of one person as a result of any one
2accident.

begin delete

3(b) When, subject

end delete

4begin insert(2)end insertbegin insertend insertbegin insertSubjectend insert to the limit of fifteen thousand dollars ($15,000) as
5to one person, the sum of thirty thousand dollars ($30,000) has
6been credited, upon any judgment in excess of that amount, or
7upon all judgments, collectively, which together total in excess of
8that amount, for personal injury to or death of more than one person
9as a result of any one accident.

begin delete

10(c) When five

end delete

11begin insert(3)end insertbegin insertend insertbegin insertFiveend insert thousand dollars ($5,000) has been credited, upon any
12judgment in excess of that amount, or upon all judgments,
13collectively, each of which is in excess of seven hundred fifty
14dollars ($750), and which together total in excess of five thousand
15dollars ($5,000), for damage to property of others as a result of
16any one accident.

begin delete

17(d) When the

end delete

18begin insert(4)end insertbegin insertend insertbegin insertTheend insert judgment debtor or a person designated by him or her
19has deposited with the department a sum equal to the amount of
20the unsatisfied judgment for which the suspension action was taken
21and presents proof, satisfactory to the department, of inability to
22locate the judgment creditor.

begin insert

23(b) This section shall remain in effect only until January 1, 2017,
24and as of that date is repealed, unless a later enacted statute, that
25is enacted before January 1, 2017, deletes or extends that date.

end insert
26begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 16377 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
27

begin insert16377.end insert  

(a) For the purposes of this chapter, every judgment
28shall be deemed satisfied if any of the following apply:

29(1) Fifteen thousand dollars ($15,000) has been credited, upon
30any judgment in excess of that amount, or upon all judgments,
31collectively, which together total in excess of that amount, for
32personal injury to or death of one person as a result of any one
33accident.

34(2) Subject to the limit of fifteen thousand dollars ($15,000) as
35to one person, the sum of thirty thousand dollars ($30,000) has
36been credited, upon any judgment in excess of that amount, or
37upon all judgments, collectively, which together total in excess of
38that amount, for personal injury to or death of more than one
39person as a result of any one accident.

P20   1(3) Five thousand dollars ($5,000) has been credited, upon any
2judgment in excess of that amount, or upon all judgments,
3collectively, each of which is in excess of one thousand dollars
4($1,000), and which together total in excess of five thousand dollars
5($5,000), for damage to property of others as a result of any one
6accident.

7(4) The judgment debtor or a person designated by him or her
8has deposited with the department a sum equal to the amount of
9the unsatisfied judgment for which the suspension action was taken
10and presents proof, satisfactory to the department, of inability to
11locate the judgment creditor.

12(b) This section shall become operative on January 1, 2017.

end insert
13begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 16378 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to
14read:end insert

15

16378.  

begin insert(a)end insertbegin insertend insertMoney deposited pursuant to subdivision (d) of
16Section 16377 shall be:

begin delete

17(a)

end delete

18begin insert(1)end insert Deposited by the department in the special deposit fund with
19thebegin delete Stateend delete Treasurer.

begin delete

20(b)

end delete

21begin insert(2)end insert Payable to the judgment creditor upon presentation of a valid
22claim establishing that hebegin insert or sheend insert is the judgment creditor for which
23the deposit was made and that the judgment remains unsatisfied.

begin delete

24(c)

end delete

25begin insert(3)end insert Refunded to the person making the deposit or to a person
26designated bybegin delete himend deletebegin insert himself or herselfend insert if the deposit remains
27unclaimed by the judgment creditor for a period of two years
28following the date of the deposit.

begin delete

29(d)

end delete

30begin insert(4)end insert Thebegin delete Stateend delete Controller shall draw hisbegin insert or herend insert warrant on the
31begin delete Stateend delete Treasurer for any payment ordered pursuant to this section
32as ordered by the department.

begin insert

33(b) This section shall remain in effect only until January 1, 2017,
34and as of that date is repealed, unless a later enacted statute, that
35is enacted before January 1, 2017, deletes or extends that date.

end insert
36begin insert

begin insertSEC. 22.end insert  

end insert

begin insertSection 16378 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
37

begin insert16378.end insert  

(a) Money deposited pursuant to paragraph (4) of
38subdivision (a) of Section 16377 shall be:

39(1) Deposited by the department in the special deposit fund with
40the Treasurer.

P21   1(2) Payable to the judgment creditor upon presentation of a
2valid claim establishing that he or she is the judgment creditor for
3which the deposit was made and that the judgment remains
4unsatisfied.

5(3) Refunded to the person making the deposit or to a person
6designated by himself or herself if the deposit remains unclaimed
7by the judgment creditor for a period of two years following the
8date of the deposit.

9(4) The Controller shall draw his or her warrant on the
10Treasurer for any payment ordered pursuant to this section as
11ordered by the department.

12(b) This section shall become operative on January 1, 2017.

end insert
13begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 16430 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to
14read:end insert

15

16430.  

begin deleteProof of financial responsibility when required by this
16code end delete
begin insert(a)end insertbegin insertend insertbegin insert“proof of financial responsibility” when required by this
17code, end insert
means proof of financial responsibility resulting from the
18ownership or operation of a motor vehicle and arising by reason
19of personal injury to, or death of, any one person, of at least fifteen
20thousand dollars ($15,000), and, subject to the limit of fifteen
21thousand dollars ($15,000) for each person injured or killed, of at
22least thirty thousand dollars ($30,000) for the injury to, or the death
23of, two or more persons in any one accident, and for damages to
24propertybegin delete (inend deletebegin insert inend insert excess of seven hundred fifty dollarsbegin delete ($750)),end delete
25begin insert ($750),end insert of at least five thousand dollars ($5,000) resulting from
26any one accident. Proof of financial responsibility may be given
27in any manner authorized in this chapter.

begin insert

28(b) This section shall remain in effect only until January 1, 2017,
29and as of that date is repealed, unless a later enacted statute, that
30is enacted before January 1, 2017, deletes or extends that date.

end insert
31begin insert

begin insertSEC. 24.end insert  

end insert

begin insertSection 16430 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
32

begin insert16430.end insert  

(a) “Proof of financial responsibility,” when required
33by this code, means proof of financial responsibility resulting from
34the ownership or operation of a motor vehicle and arising by
35reason of personal injury to, or death of, any one person, of at
36least fifteen thousand dollars ($15,000), and, subject to the limit
37of fifteen thousand dollars ($15,000) for each person injured or
38killed, of at least thirty thousand dollars ($30,000) for the injury
39to, or the death of, two or more persons in any one accident, and
40for damages to property in excess of one thousand dollars ($1,000),
P22   1of at least five thousand dollars ($5,000) resulting from any one
2accident. Proof of financial responsibility may be given in any
3manner authorized in this chapter.

4(b) This section shall become operative on January 1, 2017.

end insert
5begin insert

begin insertSEC. 25.end insert  

end insert

begin insertSection 16434 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to
6read:end insert

7

16434.  

begin insert(a)end insertbegin insertend insertProof of financial responsibility may be given by
8a bond. The bond shall be conditioned for the payment of the
9amount specified in Section 16430, and shall provide for the entry
10of judgment on motion of the state in favor of any holder of any
11final judgment on account of damages to property over seven
12hundred fifty dollars ($750) in amount, or injury to any person
13caused by the operation of the person’s motor vehicle.

begin insert

14(b) This section shall remain in effect only until January 1, 2017,
15and as of that date is repealed, unless a later enacted statute, that
16is enacted before January 1, 2017, deletes or extends that date.

end insert
17begin insert

begin insertSEC. 26.end insert  

end insert

begin insertSection 16434 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
18

begin insert16434.end insert  

(a) Proof of financial responsibility may be given by
19a bond. The bond shall be conditioned for the payment of the
20amount specified in Section 16430, and shall provide for the entry
21of judgment on motion of the state in favor of any holder of any
22final judgment on account of damages to property over one
23thousand dollars ($1,000) in amount, or injury to any person
24caused by the operation of the person’s motor vehicle.

25(b) This section shall become operative on January 1, 2017.

end insert
begin delete
26

SECTION 1.  

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

28

116.870.  

Sections 16250 to 16381, inclusive, of the Vehicle
29Code, regarding the suspension of the judgment debtor’s privilege
30to operate a motor vehicle for failing to satisfy a judgment, apply
31if the judgment (1) was for damage to property in excess of one
32thousand dollars ($1,000), or for bodily injury to, or death of, a
33person in any amount, and (2) resulted from the operation of a
34motor vehicle upon a California highway by the defendant, or by
35any other person for whose conduct the defendant was liable, unless
36the liability resulted from the defendant’s signing the application
37of a minor for a driver’s license.

38

SEC. 2.  

Section 116.880 of the Code of Civil Procedure is
39amended to read:

P23   1

116.880.  

(a) If the judgment (1) was for one thousand dollars
2($1,000) or less, (2) resulted from a motor vehicle accident
3occurring on a California highway caused by the defendant’s
4operation of a motor vehicle, and (3) has remained unsatisfied for
5more than 90 days after the judgment became final, the judgment
6creditor may file with the Department of Motor Vehicles a notice
7requesting a suspension of the judgment debtor’s privilege to
8operate a motor vehicle.

9(b) The notice shall state that the judgment has not been
10satisfied, and shall be accompanied by (1) a fee set by the
11department, (2) the judgment of the court determining that the
12 judgment resulted from a motor vehicle accident occurring on a
13California highway caused by the judgment debtor’s operation of
14a motor vehicle, and (3) a declaration that the judgment has not
15been satisfied. The fee shall be used by the department to finance
16the costs of administering this section and shall not exceed the
17department’s actual costs.

18(c) Upon receipt of a notice, the department shall attempt to
19notify the judgment debtor by telephone, if possible, otherwise by
20certified mail, that the judgment debtor’s privilege to operate a
21motor vehicle will be suspended for a period of 90 days, beginning
2220 days after receipt of notice by the department from the judgment
23creditor, unless satisfactory proof, as provided in subdivision (e),
24is provided to the department before that date.

25(d) At the time the notice is filed, the department shall give the
26judgment creditor a copy of the notice that indicates the filing fee
27paid by the judgment creditor, and includes a space to be signed
28by the judgment creditor acknowledging payment of the judgment
29by the judgment debtor. The judgment creditor shall mail or deliver
30a signed copy of the acknowledgment to the judgment debtor once
31the judgment is satisfied.

32(e) The department shall terminate the suspension, or the
33suspension proceedings, upon the occurrence of one or more of
34the following:

35(1) Receipt of proof that the judgment has been satisfied, either
36(A) by a copy of the notice required by this section signed by the
37judgment creditor acknowledging satisfaction of the judgment, or
38(B) by a declaration of the judgment debtor stating that the
39judgment has been satisfied.

P24   1(2) Receipt of proof that the judgment debtor is complying with
2a court-ordered payment schedule.

3(3) Proof that the judgment debtor had insurance covering the
4accident sufficient to satisfy the judgment.

5(4) A deposit with the department of the amount of the
6unsatisfied judgment, if the judgment debtor presents proof,
7satisfactory to the department, of inability to locate the judgment
8creditor.

9(5) At the end of 90 days.

10(f) If the suspension has been terminated under subdivision (e),
11the action is final and shall not be reinstituted. If the suspension
12is terminated, Section 14904 of the Vehicle Code shall apply.
13Money deposited with the department under this section shall be
14handled in the same manner as money deposited under subdivision
15(d) of Section 16377 of the Vehicle Code.

16(g) A public agency is not liable for an injury caused by the
17suspension, termination of suspension, or the failure to suspend a
18person’s privilege to operate a motor vehicle as authorized by this
19section.

20

SEC. 3.  

Section 1656.2 of the Vehicle Code is amended to
21read:

22

1656.2.  

The department shall prepare and publish a printed
23summary describing the penalties for noncompliance with Sections
2416000 and 16028, which shall be included with each motor vehicle
25registration, registration renewal, and transfer of registration and
26with each driver’s license and license renewal. The printed
27summary may contain, but is not limited to, the following wording:
28

29“IMPORTANT FACTS ABOUT ENFORCEMENT OF
30CALIFORNIA’S COMPULSORY FINANCIAL
31RESPONSIBILITY LAW
32

33California law requires every driver to carry written evidence
34of valid automobile liability insurance, a $35,000 bond, a $35,000
35cash deposit, or a certificate of self-insurance that has been issued
36by the Department of Motor Vehicles.
37


38You must provide evidence of financial responsibility when you
39renew the registration of a motor vehicle, and after you are cited
40by a peace officer for a traffic violation or are involved in any
P25   1traffic accident. The law requires that you provide the officer
2with the name and address of your insurer and the policy
3identification number. Your insurer will provide written evidence
4of this number. Failure to provide evidence of your financial
5responsibility can result in fines of up to $500 and loss of your
6driver’s license. Falsification of evidence can result in fines of
7up to $750 or 30 days in jail, or both, in addition to a one-year
8suspension of driving privileges.
9


10

11Under existing California law, if you are involved in an accident
12that results in damages of over $1,000 to the property of any
13person or in any injury or fatality, you must file a report of the
14accident with the Department of Motor Vehicles within 10 days
15of the accident. If you fail to file a report or fail to provide
16evidence of financial responsibility on the report, your driving
17privilege will be suspended for up to four years. Your suspension
18notice will notify you of the department’s action and of your
19right to a hearing. Your suspension notice will also inform you
20that if you request a hearing, it must be conducted within 30
21days of your written request, and that a decision is to be rendered
22within 15 days of the conclusion of the hearing.”
23


24

SEC. 4.  

Section 12517.1 of the Vehicle Code is amended to
25read:

26

12517.1.  

(a) A “schoolbus accident” means any of the
27following:

28(1) A motor vehicle accident resulting in property damage in
29excess of one thousand dollars ($1,000), or personal injury, on
30public or private property, and involving a schoolbus, youth bus,
31school pupil activity bus, or general public paratransit vehicle
32transporting a pupil.

33(2) A collision between a vehicle and a pupil or a schoolbus
34driver while the pupil or driver is crossing the highway when the
35schoolbus flashing red signal lamps are required to be operated
36pursuant to Section 22112 or when the schoolbus is stopped for
37the purpose of loading or unloading pupils.

38(3) Injury of a pupil inside a vehicle described in paragraph (1)
39as a result of acceleration, deceleration, or other movement of the
40vehicle.

P26   1(b) The Department of the California Highway Patrol shall
2investigate all schoolbus accidents, except that accidents involving
3only property damage and occurring entirely on private property
4shall be investigated only if they involve a violation of this code.

5

SEC. 5.  

Section 13369 of the Vehicle Code is amended to read:

6

13369.  

(a) This section applies to the following endorsements
7and certificates:

8(1) Passenger transportation vehicle.

9(2) Hazardous materials.

10(3) Schoolbus.

11(4) School pupil activity bus.

12(5) Youth bus.

13(6) General public paratransit vehicle.

14(7) Farm labor vehicle.

15(8) Vehicle used for the transportation of developmentally
16 disabled persons.

17(b) The department shall refuse to issue or renew, or shall
18revoke, the certificate or endorsement of a person who meets the
19following conditions:

20(1) Within three years, has committed any violation that results
21in a conviction assigned a violation point count of two or more,
22as defined in Sections 12810 and 12810.5. The department shall
23not refuse to issue or renew, nor may it revoke, a person’s
24hazardous materials or passenger transportation vehicle
25endorsement if the violation leading to the conviction occurred in
26the person’s private vehicle and not in a commercial motor vehicle,
27as defined in Section 15210.

28(2) Within three years, has had his or her driving privilege
29suspended, revoked, or on probation for any reason involving
30unsafe operation of a motor vehicle. The department shall not
31refuse to issue or renew, nor may it revoke, a person’s passenger
32transportation vehicle endorsement if the person’s driving privilege
33has, within three years, been placed on probation only for a reason
34involving unsafe operation of a motor vehicle.

35(3) Notwithstanding paragraphs (1) and (2), does not meet the
36qualifications for issuance of a hazardous materials endorsement
37set forth in Parts 383, 384, and 1572 of Title 49 of the Code of
38Federal Regulations.

P27   1(c) The department may refuse to issue or renew, or may suspend
2or revoke, the certificate or endorsement of a person who meets
3any of the following conditions:

4(1) Within 12 months, has been involved as a driver in three
5accidents in which the driver caused or contributed to the causes
6of the accidents.

7(2) Within 24 months, as a driver, caused or contributed to the
8cause of an accident resulting in a fatality or serious injury or
9serious property damage in excess of one thousand dollars ($1,000).

10(3) Has violated any provision of this code, or any rule or
11regulation pertaining to the safe operation of a vehicle for which
12the certificate or endorsement was issued.

13(4) Has violated any restriction of the certificate, endorsement,
14or commercial driver’s license.

15(5) Has knowingly made a false statement or failed to disclose
16a material fact on an application for a certificate or endorsement.

17(6) Has been determined by the department to be a negligent or
18incompetent operator.

19(7) Has demonstrated irrational behavior to the extent that a
20reasonable and prudent person would have reasonable cause to
21believe that the applicant’s ability to perform the duties of a driver
22may be impaired.

23(8) Excessively or habitually uses, or is addicted to, alcoholic
24beverages, narcotics, or dangerous drugs.

25(9) Does not meet the minimum medical standards established
26or approved by the department.

27(d) The department may cancel the certificate or endorsement
28of any driver who meets any of the following conditions:

29(1) Does not have a valid driver’s license of the appropriate
30class.

31(2) Has requested cancellation of the certificate or endorsement.

32(3) Has failed to meet any of the requirements for issuance or
33retention of the certificate or endorsement, including, but not
34limited to, payment of the proper fee, submission of an acceptable
35medical report and fingerprint cards, and compliance with
36prescribed training requirements.

37(4) Has had his or her driving privilege suspended or revoked
38for a cause involving other than the safe operation of a motor
39vehicle.

P28   1(e) (1) The department shall refuse to issue or renew, or shall
2suspend or revoke, the passenger vehicle endorsement of a person
3who violates subdivision (b) of Section 5387 of the Public Utilities
4Code.

5(2) A person found to be in violation of subdivision (b) of
6Section 5387 of the Public Utilities Code shall be ineligible for a
7passenger vehicle endorsement that would permit him or her to
8drive a bus of any kind, including, but not limited to, a bus,
9schoolbus, youth bus, school pupil activity bus, trailer bus, or a
10transit bus, with passengers, for a period of five years.

11(f) (1) Reapplication following refusal or revocation under
12subdivision (b) or (c) may be made after a period of not less than
13one year from the effective date of denial or revocation, except in
14cases where a longer period of suspension or revocation is required
15by law.

16(2) Reapplication following cancellation under subdivision (d)
17may be made at any time without prejudice.

18

SEC. 6.  

Section 16000 of the Vehicle Code is amended to read:

19

16000.  

(a) The driver of a motor vehicle who is in any manner
20involved in an accident originating from the operation of the motor
21vehicle on a street or highway, or is involved in a reportable
22off-highway accident, as defined in Section 16000.1, that has
23resulted in damage to the property of any one person in excess of
24one thousand dollars ($1,000), or in bodily injury, or in the death
25of any person shall report the accident, within 10 days after the
26accident, either personally or through an insurance agent, broker,
27or legal representative, on a form approved by the department, to
28the office of the department at Sacramento, subject to this chapter.
29The driver shall identify on the form, by name and current
30 residence address, if available, any person involved in the accident
31complaining of bodily injury.

32(b) A report is not required under subdivision (a) if the motor
33vehicle involved in the accident was owned or leased by, or under
34the direction of, the United States, this state, another state, or a
35local agency.

36(c) If none of the parties involved in an accident has reported
37the accident to the department under this section within one year
38following the date of the accident, the department is not required
39to file a report on the accident and the driver’s license suspension
40requirements of Section 16004 or 16070 do not apply.

P29   1

SEC. 7.  

Section 16000.1 of the Vehicle Code is amended to
2read:

3

16000.1.  

(a) For purposes of this division, a “reportable
4off-highway accident” means an accident that includes all of the
5following:

6(1) Occurs off the street or highway.

7(2) Involves a vehicle that is subject to registration under this
8code.

9(3) Results in damages to the property of any one person in
10excess of one thousand dollars ($1,000), or in bodily injury or in
11the death of any person.

12(b) A “reportable off-highway accident” does not include any
13accident that occurs off-highway in which damage occurs only to
14the property of the driver or owner of the motor vehicle and no
15bodily injury or death of a person occurs.

16

SEC. 8.  

Section 16075 of the Vehicle Code is amended to read:

17

16075.  

(a) The suspension provisions of this article shall not
18apply to a driver or owner until 30 days after the department sends
19to the driver or owner notice of its intent to suspend his or her
20driving privilege, pursuant to subdivision (b) of Section 16070,
21and advises the driver or owner of his or her right to a hearing as
22provided in this section.

23(b) If the driver or owner receiving the notice of intent to
24suspend wishes to have a hearing, the request for a hearing shall
25be made in writing to the department within 10 days of the receipt
26of the notice. Failure to respond to a notice of intent within 10
27days of receipt of the notice is a waiver of the person’s right to a
28hearing.

29(c) If the driver or owner makes a timely request for a hearing,
30the department shall hold the hearing before the effective date of
31the suspension to determine the applicability of this chapter to the
32driver or owner, including a determination of whether:

33(1) The accident has resulted in property damage in excess of
34one thousand dollars ($1,000), or bodily injury, or death.

35(2) The driver or owner has established evidence of financial
36responsibility, as provided in Article 3 (commencing with Section
3716050), that was in effect at the time of the accident.

38(d) A request for a hearing does not stay the suspension of a
39person’s driving privilege. However, if the department does not
40conduct a hearing and make a determination pursuant thereto within
P30   1the time limit provided in subdivision (b) of Section 16070, the
2department shall stay the effective date of the order of suspension
3pending a determination.

4(e) The hearing provided for by this section shall be held in the
5county of residence of the person requesting the hearing. The
6hearing shall be conducted pursuant to Article 3 (commencing
7with Section 14100) of Chapter 3 of Division 6.

8(f) The department shall render its decision within 15 days after
9conclusion of the hearing.

10

SEC. 9.  

Section 16251 of the Vehicle Code is amended to read:

11

16251.  

As used in this chapter and Chapter 3 (commencing
12with Section 16430), “cause of action” means any cause of action
13for damage to property in excess of one thousand dollars ($1,000),
14or for damage in any amount on account of bodily injury to or
15death of any person resulting from the operation by the defendant
16or any other person of any motor vehicle upon a highway in this
17state, except a cause of action based upon statutory liability by
18reason of signing the application of a minor for a driver’s license.

19

SEC. 10.  

Section 16377 of the Vehicle Code is amended to
20read:

21

16377.  

For the purposes of this chapter, every judgment shall
22be deemed satisfied if any of the following apply:

23(a) Fifteen thousand dollars ($15,000) has been credited, upon
24any judgment in excess of that amount, or upon all judgments,
25collectively, which together total in excess of that amount, for
26personal injury to or death of one person as a result of any one
27accident.

28(b) Subject to the limit of fifteen thousand dollars ($15,000) as
29to one person, the sum of thirty thousand dollars ($30,000) has
30been credited, upon any judgment in excess of that amount, or
31upon all judgments, collectively, which together total in excess of
32that amount, for personal injury to or death of more than one person
33as a result of any one accident.

34(c) Five thousand dollars ($5,000) has been credited, upon any
35judgment in excess of that amount, or upon all judgments,
36collectively, each of which is in excess of one thousand dollars
37($1,000), and which together total in excess of five thousand dollars
38($5,000), for damage to property of others as a result of any one
39accident.

P31   1(d) The judgment debtor or a person designated by him or her
2has deposited with the department a sum equal to the amount of
3the unsatisfied judgment for which the suspension action was taken
4and presents proof, satisfactory to the department, of inability to
5locate the judgment creditor.

6

SEC. 11.  

Section 16430 of the Vehicle Code is amended to
7read:

8

16430.  

“Proof of financial responsibility,” when required by
9this code, means proof of financial responsibility resulting from
10the ownership or operation of a motor vehicle and arising by reason
11of personal injury to, or death of, any one person, of at least fifteen
12thousand dollars ($15,000), and, subject to the limit of fifteen
13thousand dollars ($15,000) for each person injured or killed, of at
14least thirty thousand dollars ($30,000) for the injury to, or the death
15of, two or more persons in any one accident, and for damages to
16property (in excess of one thousand dollars ($1,000)), of at least
17five thousand dollars ($5,000) resulting from any one accident.
18Proof of financial responsibility may be given in any manner
19authorized in this chapter.

20

SEC. 12.  

Section 16434 of the Vehicle Code is amended to
21read:

22

16434.  

Proof of financial responsibility may be given by a
23bond. The bond shall be conditioned for the payment of the amount
24specified in Section 16430, and shall provide for the entry of
25judgment on motion of the state in favor of any holder of any final
26judgment on account of damages to property over one thousand
27dollars ($1,000) in amount, or injury to any person caused by the
28operation of the person’s motor vehicle.

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