HB 265

1	A bill to be entitled
2	An act relating to motor vehicle liability financial
3	responsibility; amending s. 324.021, F.S.; revising the
4	definition of the term "motor vehicle"; increasing
5	financial responsibility limits with respect to bodily
6	injury or death in a single accident; creating s. 324.023,
7	F.S.; specifying an additional requirement for proof of
8	financial responsibility for bodily injury or death;
9	providing a hardship exception; amending s. 324.031, F.S.;
10	increasing limits for proof of financial responsibility
11	for for-hire transportation vehicle certificates of self-
12	insurance; amending s. 324.161, F.S.; increasing the
13	amount required for a surety bond or deposit for proof of
14	financial responsibility; amending s. 324.171, F.S.;
15	revising the required threshold limit for self-insurers;
16	amending ss. 316.646 and 627.733, F.S., to conform;
17	providing an effective date.
18
19	Be It Enacted by the Legislature of the State of Florida:
20
21	Section 1.  Subsections (1) and (7) of section 324.021,
22	Florida Statutes, are amended to read:
23	324.021  Definitions; minimum insurance required.--The
24	following words and phrases when used in this chapter shall, for
25	the purpose of this chapter, have the meanings respectively
26	ascribed to them in this section, except in those instances
27	where the context clearly indicates a different meaning:
28	(1)  MOTOR VEHICLE.--Every self-propelled vehicle which is
29	designed and required to be licensed for use upon a highway,
30	including trailers and semitrailers designed for use with such
31	vehicles, except traction engines, road rollers, farm tractors,
32	power shovels, and well drillers, and every vehicle which is
33	propelled by electric power obtained from overhead wires but not
34	operated upon rails, but not including any bicycle or moped.
35	However, the term "motor vehicle" shall not include any motor
36	vehicle as defined in s. 627.732(3) when the owner of such
37	vehicle has complied with the requirements of ss. 627.730-
38	627.7405, inclusive, unless the provisions of s. 324.051 apply;
39	and, in such case, the applicable proof of insurance provisions
40	of s. 320.02 apply.
41	(7)  PROOF OF FINANCIAL RESPONSIBILITY.--That proof of
42	ability to respond in damages for liability on account of
43	crashes arising out of the use of a motor vehicle:
44	(a)  In the amount of $25,000 $10,000 because of bodily
45	injury to, or death of, one person in any one crash;
46	(b)  Subject to such limits for one person, in the amount
47	of $50,000 $20,000 because of bodily injury to, or death of, two
48	or more persons in any one crash;
49	(c)  In the amount of $10,000 because of injury to, or
50	destruction of, property of others in any one crash; and
51	(d)  With respect to commercial motor vehicles and
52	nonpublic sector buses, in the amounts specified in ss. 627.7415
53	and 627.742, respectively.
54	Section 2.  Section 324.023, Florida Statutes, is created
55	to read:
56	324.023  Financial responsibility for bodily injury or
57	death.--Every owner of a motor vehicle that is required to be
58	registered in this state and every operator of any motor vehicle
59	located within this state shall establish and maintain, by one
60	of the methods established in s. 324.031, the ability to respond
61	in damages for liability on account of accidents arising out of
62	the use of the motor vehicle in at least the amounts prescribed
63	in s. 324.021(7)(a) and (b). This section does not apply to any
64	motor vehicle that has been continuously and exclusively used
65	for a commercial purpose since being acquired by its current
66	owner. The requirement of this section shall be in addition to
67	any other financial responsibility required of the owner of a
68	motor vehicle.
69	Section 3.  Section 324.031, Florida Statutes, is amended
70	to read:
71	324.031  Manner of proving financial responsibility.--The
72	owner or operator of a taxicab, limousine, jitney, or any other
73	for-hire passenger transportation vehicle may prove financial
74	responsibility by providing satisfactory evidence of holding a
75	motor vehicle liability policy as defined in s. 324.021(8) or s.
76	324.151, which policy is issued by an insurance carrier which is
77	a member of the Florida Insurance Guaranty Association. The
78	operator or owner of any other vehicle may prove his or her
79	financial responsibility by:
80	(1)  Furnishing satisfactory evidence of holding a motor
81	vehicle liability policy as defined in ss. 324.021(8) and
82	324.151;
83	(2)  Posting with the department a satisfactory bond of a
84	surety company authorized to do business in this state,
85	conditioned for payment of the amount specified in s.
86	324.021(7);
87	(3)  Furnishing a certificate of the department showing a
88	deposit of cash or securities in accordance with s. 324.161; or
89	(4)  Furnishing a certificate of self-insurance issued by
90	the department in accordance with s. 324.171.
91
92	Any person, including any firm, partnership, association,
93	corporation, or other person, other than a natural person,
94	electing to use the method of proof specified in subsection (2)
95	or subsection (3) shall post a bond or deposit equal to the
96	number of vehicles owned times $60,000 $30,000, to a maximum of
97	$240,000 $120,000; in addition, any such person, other than a
98	natural person, shall maintain insurance providing coverage in
99	excess of limits of $25,000/50,000/10,000 $10,000/20,000/10,000
100	or $60,000 $30,000 combined single limits, and such excess
101	insurance shall provide minimum limits of
102	$125,000/250,000/50,000 or $300,000 combined single limits.
103	These increased limits shall not affect the requirements for
104	proving financial responsibility under s. 324.032(1).
105	Section 4.  Section 324.161, Florida Statutes, is amended
106	to read:
107	324.161  Proof of financial responsibility; surety bond or
108	deposit.--The certificate of the department of a deposit may be
109	obtained by depositing with it $60,000 $30,000 cash or
110	securities such as may be legally purchased by savings banks or
111	for trust funds, of a market value of $60,000 $30,000 and which
112	deposit shall be held by the department to satisfy, in
113	accordance with the provisions of this chapter, any execution on
114	a judgment issued against such person making the deposit, for
115	damages because of bodily injury to or death of any person or
116	for damages because of injury to or destruction of property
117	resulting from the use or operation of any motor vehicle
118	occurring after such deposit was made. Money or securities so
119	deposited shall not be subject to attachment or execution unless
120	such attachment or execution shall arise out of a suit for
121	damages as aforesaid.
122	Section 5.  Paragraphs (a) and (b) of subsection (1) of
123	section 324.171, Florida Statutes, are amended to read:
124	324.171  Self-insurer.--
125	(1)  Any person may qualify as a self-insurer by obtaining
126	a certificate of self-insurance from the department which may,
127	in its discretion and upon application of such a person, issue
128	said certificate of self-insurance when such person has
129	satisfied the requirements of this section to qualify as a self-
130	insurer under this section:
131	(a)  A private individual with private passenger vehicles
132	shall possess unencumbered assets of at least $100,000 that
133	could be subject to a judgment creditor's writ of execution and
134	a net unencumbered worth of at least $100,000 $40,000.
135	(b)  A person, including any firm, partnership,
136	association, corporation, or other person, other than a natural
137	person, shall:
138	1.  Possess unencumbered assets of at least $100,000 that
139	could be subject to a judgment creditor's writ of execution and
140	a net unencumbered worth of at least $100,000 $40,000 for the
141	first motor vehicle and $50,000 $20,000 for each additional
142	motor vehicle; or
143	2.  Maintain sufficient net worth, as determined annually
144	by the department, pursuant to rules promulgated by the
145	department, with the assistance of the Office of Insurance
146	Regulation of the Financial Services Commission, to be
147	financially responsible for potential losses. The rules shall
148	take into consideration excess insurance carried by the
149	applicant. The department's determination shall be based upon
150	reasonable actuarial principles considering the frequency,
151	severity, and loss development of claims incurred by casualty
152	insurers writing coverage on the type of motor vehicles for
153	which a certificate of self-insurance is desired.
154	Section 6.  Subsections (1) and (3) of section 316.646,
155	Florida Statutes, are amended to read:
156	316.646  Security required; proof of security and display
157	thereof; dismissal of cases.--
158	(1)  Any person required by s. 324.023 to maintain
159	liability coverage for bodily injury or death or any person
160	required by s. 627.733 to maintain personal injury protection
161	security on a motor vehicle shall have in his or her immediate
162	possession at all times while operating such motor vehicle
163	proper proof of maintenance of the security required by ss.
164	324.023 and s. 627.733. Such proof shall be either a uniform
165	proof-of-insurance card in a form prescribed by the department,
166	a valid insurance policy, an insurance policy binder, a
167	certificate of insurance, or such other proof as may be
168	prescribed by the department.
169	(3)  Any person who violates this section is guilty of a
170	nonmoving traffic infraction subject to the penalty provided in
171	chapter 318 and shall be required to furnish proof of security
172	as provided in this section. If any person charged with a
173	violation of this section fails to furnish proof, at or before
174	the scheduled court appearance date, that security was in effect
175	at the time of the violation, the court may immediately suspend
176	the registration and driver's license of such person. Such
177	license and registration may only be reinstated as provided in
178	ss. 324.023 and s. 627.733.
179	Section 7.  Subsection (7) of section 627.733, Florida
180	Statutes, is amended to read:
181	627.733  Required security.--
182	(7)  Any operator or owner whose driver's license or
183	registration has been suspended pursuant to this section or s.
184	316.646 may effect its reinstatement upon compliance with the
185	requirements of this section and upon payment to the Department
186	of Highway Safety and Motor Vehicles of a nonrefundable
187	reinstatement fee of $150 for the first reinstatement. Such
188	reinstatement fee shall be $250 for the second reinstatement and
189	$500 for each subsequent reinstatement during the 3 years
190	following the first reinstatement. Any person reinstating her or
191	his insurance under this subsection must also secure
192	noncancelable coverage as described in ss. 324.021(8) and s.
193	627.7275(2) and present to the appropriate person proof that the
194	coverage is in force on a form promulgated by the Department of
195	Highway Safety and Motor Vehicles, such proof to be maintained
196	for 2 years. If the person does not have a second reinstatement
197	within 3 years after her or his initial reinstatement, the
198	reinstatement fee shall be $150 for the first reinstatement
199	after that 3-year period. In the event that a person's license
200	and registration are suspended pursuant to this section or s.
201	316.646, only one reinstatement fee shall be paid to reinstate
202	the license and the registration. All fees shall be collected by
203	the Department of Highway Safety and Motor Vehicles at the time
204	of reinstatement. The Department of Highway Safety and Motor
205	Vehicles shall issue proper receipts for such fees and shall
206	promptly deposit those fees in the Highway Safety Operating
207	Trust Fund. One-third of the fee collected under this subsection
208	shall be distributed from the Highway Safety Operating Trust
209	Fund to the local government entity or state agency which
210	employed the law enforcement officer who seizes a license plate
211	pursuant to s. 324.201. Such funds may be used by the local
212	government entity or state agency for any authorized purpose.
213	Section 8.  This act shall take effect October 1, 2007.

CODING: Words stricken are deletions; words underlined are additions.