BILL ANALYSIS                                                                                                                                                                                                    






                        SENATE COMMITTEE ON BANKING, FINANCE,
                                    AND INSURANCE
                          Senator Michael J. Machado, Chair


          SB 629 (Correa)                         Hearing Date:  April 18,  
          2007  
          
          As Introduced  February 22, 2007
          Fiscal:             No
          Urgency:       No
          

           SUMMARY    Would delete a code section requiring peace officers  
          and firefighters involved in a vehicular accident to submit the  
          details of that accident to their private automobile insurance  
          carrier within 30 days of the accident.
          
           
          DIGEST
            
          Existing law
            
           1.  Requires any peace officer or firefighter who has been involved  
              in an accident to submit a written statement signed under  
              penalty of perjury or a copy of the incident report filed with  
              his or her employer to his or her private automobile insurer.   
              The statement is required to indicate whether the individual was  
              operating an authorized emergency vehicle at the time of the  
              accident (Insurance Code Section 557.6);

           2.  Provides that no peace officer, member of the California  
              Highway Patrol, or firefighter shall be required to report any  
              accident in which he or she is involved while operating an  
              authorized emergency vehicle in the performance of his or her  
              duty during the hours of his or her employment to any person who  
              has issued that individual a private automobile insurance policy  
              (Insurance Code Section 557.5);

           3.  Requires the driver of a motor vehicle who is involved in an  
              accident that results in property damage over $750 or in bodily  
              injury or in the death of a person to report the accident to the  
              Department of Motor Vehicles (DMV) within ten days, either  
              personally or through an insurance agent, broker, or legal  
              representative, but further provides that a report is not  
              required if the vehicle involved in the accident was owned or  




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              leased by or under the direction of the United States,  
              California, or a local agency (Vehicle Code Section 16000); 

           4.  Requires the driver of a vehicle that is owned, operated, or  
              leased by the driver's employer and with the permission of the  
              employer and that is involved in accident to report the accident  
              to their employer within five days of the accident, and requires  
              the employer to notify DMV of the accident within ten days after  
              receiving the employee's report, as specified (Vehicle Code  
              Section 16002);  

           5.  Requires every driver and every owner of a motor vehicle to at  
              all times be able to establish financial responsibility and to  
              at all times carry in the vehicle evidence of the form of  
              financial responsibility in effect for the vehicle (Vehicle Code  
              Section 16020);

           6.  Does not explicitly require the driver of a vehicle involved in  
              an accident to report that accident to their private insurance  
              carrier.  
           

          This bill

           1.  Would delete Insurance Code Section 557.6 (see explanation  
              above under Existing Law #1).


           COMMENTS

           1.  Purpose of the bill   To eliminate a code section the  
              sponsor believes is both in conflict with existing Insurance  
              Code Section 557.5 and is inappropriate.

            2.  Background   Insurance Code Section 557.5, the section that  
              provides no accident report to one's private insurance  
              carrier is necessary if a peace officer, CHP officer, or  
              firefighter is involved in an on-duty accident, was added to  
              the code in 1973.  Insurance Code Section 557.6, the section  
              that requires peace officers and firefighters to notify  
              their private insurance carriers about accidents in which  
              they are involved, was added to the code in 1982.  

           Section 557.6 appears to cover all accidents in which a peace  
              officer or firefighter is involved, not just on-duty  
              accidents.  The only information that must be reported is  




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              whether the accident involved an authorized emergency  
              vehicle.  Thus, Section 557.6 conflicts with Section 557.5  
              with regards to on-duty accidents but is not in direct  
              conflict with 557.5 with respect to off-duty accidents.  

           Vehicle Code Section 16002, enacted in 1974, addresses  
              situations in which any employee (including a peace officer  
              or firefighter) is involved in an accident in their  
              employer's vehicle, regardless of whether they are on- or  
              off-duty at the time.  Specifically, Section 16002 requires  
              employees involved in accidents while in their employer's  
              vehicle to notify their employer of the accident and  
              requires employers to notify DMV about the accident.  Under  
              Section 16002, a peace officer or firefighter involved in an  
              accident in an authorized emergency vehicle must notify  
              their employer of that accident.

           Thus, the only portion of Section 557.6 that is not duplicative  
              of or in conflict with another code section enacted before  
              it is the requirement for the peace officer or firefighter  
              involved in an accident to notify their private insurance  
              carrier of that accident and to inform the carrier whether  
              that accident occurred in an authorized emergency vehicle.   
              No other section of law requires individuals to report  
              accidents in which they were involved to their insurance  
              company.  

            3.  Support  .  This bill's sponsor, the Peace Officers Research  
              Association of California (PORAC) believes that Insurance  
              Code Sections 557.5 and 557.6 conflict, and that 557.6  
              should be deleted because its provisions are inappropriate  
              and have the potential for abuse.  PORAC feels strongly that  
              a peace officer who may be involved in an accident related  
              to the dangerous aspects of their job, such as high-speed  
              police pursuits, should not be held personally responsible  
              for that on-duty act.

           The Santa Ana Police Officers Association, Long Beach Police  
              Officers Association, Los Angeles County Professional Peace  
              Officers Association, and California Fraternal Order of  
              Police, writing in jointly, do not understand the usefulness  
              of information required by Section 557.6, given that the  
              private insurance company is not liable on behalf of the  
              officer or firefighter while they are on duty.

            4.  Opposition    None received.




                                                SB 629 (Correa), Page 4





            5.  Questions   

                  a.        Should peace officers and firefighters be  
                    singled out as the only individuals required to report  
                    accidents in which they are involved to their private  
                    insurance carriers?

           

          POSITIONS
          
          Support
           
          Peace Officers Research Association of California (sponsor)
          Santa Ana Police Officers Association
          Long Beach Police Officers Association
          Los Angeles County Professional Peace Officers Association
          California Fraternal Order of Police
          Office of the San Bernardino County Sheriff
          California State Sheriffs Association
          California Probation, Parole and Correctional Association
          California Association of Highway Patrolmen
           
          Oppose
               
          None received

          Consultant:  Eileen Roush   (916) 651-4102