Got Insurance? Now Prove It - Drivers Without Coverage Face Hefty Fines
By Arthur M. Louis, Chronicle Staff Writer

Although California law requires all motorists to insure their cars, an estimated 5.5 million of the 21 million vehicles registered in the state are uninsured.

But starting this year, the law got new teeth. The Legislature passed a bill requiring motorists to produce proof of insurance before the Department of Motor Vehicles will renew their registrations.

The new legislation also requires motorists to display proof of insurance when they are stopped by police officers for traffic violations. Drivers who can't do so may have to pay fines ranging from $1,350 to as high as $5,400 for repeat offenders.

The law -- which expires at the end of 1999 unless renewed by the Legislature -- was spearheaded by former Assemblywoman Jackie Speier, a Burlingame Democrat, whose husband was killed three years ago in a collision with an uninsured driver.

As a result of the law, many previously uninsured motorists are rushing to find insurance.

``We are being inundated with applications,'' remarks Peter Gorman, associate vice president of the Alliance of American Insurers, which represents 300 property-and-casualty companies.

But many other motorists -- a lot of them low-income people who claim that the cost of insurance is too burdensome -- continue to evade the law.

Some are buying counterfeit insurance cards for around $50 apiece from unscrupulous entrepreneurs, or are stealing registration stickers from other cars so they won't have to deal with the DMV.

Others get genuine insurance cards by paying the first month's premium, then cancel their policies, says Bill Sirola, a spokesman for State Farm, California's largest auto insurer.

Speier says the loophole described by Sirola crept into the law because of heavy pressure from the insurance com- panies themselves.

Her bill originally required insurance companies to notify the DMV electronically whenever an auto-insurance customer canceled coverage.

"But the insurance companies cried and complained about the `extraordinary cost,' so I took that out of the bill to keep it moving,'' Speier says.

Speier notes, however, that people who present false proof of insurance are committing a misdemeanor, punishable by suspension of their driver's license for a year.

Even some judges and police officers are flouting the new regulations.

Judges who consider the punishment too severe are letting violators off the hook, or are imposing fines and penalties well below the $1,350 minimum. And various local police forces aren't bothering to ask motorists for proof of insurance -- although the California Highway Patrol is routinely making such requests.

The new law took a lot of people by surprise, and even those who want to comply may not know how to go about it.

Here is how the law works.

When motorists renew their registration each year, they must send the DMV a photocopy of the proof-of-insurance card provided by their insurer. Or, they can display the card itself if they renew at a DMV office.

DMV spokesman Evan Nosoff said the agency prefers to have all renewals handled by mail. It is a routine transaction, he notes, and the DMV branches are crowded enough with other business.

Your insurance must meet certain legal minimums.

You must have per-accident coverage of at least $15,000 for injury to one person, $30,000 for all injuries combined and $5,000 for property damage.

As an alternative, you can demonstrate that you have enough financial resources to self-insure. This requires bonded proof that you have set aside $35,000 in cash to cover any liabilities.

Theft and collision insurance and comprehensive coverage are not required.

If you are stopped by a police officer and asked for proof of insurance, you will get a ticket if you can't produce it at that time.

However, you can have the ticket nullified by showing proof of insurance in court. You still will be assessed a $10 fee for paperwork.

Judges can impound the vehicles of frequent, flagrant violators. There is no appeal from such a decision. The driver can never get the car back, although the lender that financed the car can.

If you provide false evidence of insurance coverage and your driver's license is suspended, the suspension won't be lifted until you demonstrate genuine proof of insurance.

FILED WITH SECRETARY OF STATE SEPTEMBER 30, 1996
APPROVED BY GOVERNOR SEPTEMBER 30, 1996
PASSED THE ASSEMBLY AUGUST 30, 1996
PASSED THE SENATE SEPTEMBER 7, 1995
AMENDED IN SENATE AUGUST 28, 1995
AMENDED IN SENATE AUGUST 22, 1995
AMENDED IN SENATE JULY 21, 1995
AMENDED IN SENATE JULY 3, 1995
AMENDED IN ASSEMBLY MAY 26, 1995
AMENDED IN ASSEMBLY MAY 4, 1995
AMENDED IN ASSEMBLY APRIL 20, 1995
AMENDED IN ASSEMBLY MARCH 27, 1995

INTRODUCED BY Assembly Member Speier (Principal coauthors: Assembly Members Bowen, Harvey, and Kevin Murray) (Coauthors: Assembly Members Alpert, Goldsmith, Kuehl, McDonald, Mazzoni, and Willard Murray) (Coauthors: Senators Costa and Thompson)

FEBRUARY 21, 1995
An act to amend, repeal, and add Sections 16020, 16070, 16071, 16457, and 40611 of, and to add and repeal Sections 1680, 4000.37, 16028, 16029, 16030, and 16033 of, the Vehicle Code, relating to vehicles.

LEGISLATIVE COUNSEL'S DIGEST
AB 650, Speier. Vehicles: financial responsibility.

(1) Existing law imposes various duties on the Department of Motor Vehicles relating to vehicles.

This bill would require the department to require, upon application for renewal of registration of a vehicle, any one of several forms of evidence that the applicant is in compliance with the financial responsibility laws of this state, except as specified.

The bill would make technical, clarifying changes in related provisions of law.

(2) Existing law requires every driver and every owner of a motor vehicle to be able, at all times, to establish financial responsibility, as defined, for the vehicle.

This bill would require every person who drives upon a highway a motor vehicle required to be registered in this state to provide evidence of financial responsibility for the vehicle upon demand of a peace officer, as specified.

The bill would make a violation of the financial responsibility provision specified above an infraction, punishable by specified fines, and would thereby impose a state-mandated local program by creating a new crime.

The bill would authorize a court to order the impounding of the vehicle of a person who violates the financial responsibility provision, in addition to the penalties specified above. The bill would authorize the release of an impounded vehicle to the legal owner or registered owner of the vehicle under specified circumstances.

The bill would authorize dismissal of charges related to violation of the financial responsibility provision upon receipt of written evidence of financial responsibility, as defined, by the clerk of the court and would authorize the clerk to collect a $10 transaction fee for each case so dismissed.

The bill would exempt a person from the provisions described above if the person was driving, with the permission of the person's employer, a motor vehicle owned, operated, or leased by that employer, would make the provision applicable to the employer, and would require a notice to appear issued pursuant to the above provision to be issued to the employer rather than the driver. The bill would require the driver to notify the employer of the receipt of the notice to appear not later than 5 days after receipt. Because a violation of the provision requiring notification of the employer would be an infraction, the bill would create a new crime and would thus impose a state-mandated local program.

The bill would prohibit a person from knowingly providing false evidence of financial responsibility when requested by a peace officer pursuant to the financial responsibility provision specified above. The bill would make a violation of the provision relating to providing false evidence a misdemeanor, punishable by specified fines and a specified term in the county jail, and would thereby impose a state-mandated local program by creating a new crime.

The bill would prohibit a peace officer from stopping a vehicle for the sole purpose of determining whether the vehicle is being driven in violation of the financial responsibility provision.

The bill would provide that no public entity or employee, or any specified person or organization, is liable for any loss, detriment, or injury resulting from failure to request evidence of financial responsibility or inaccurately recording that evidence, as specified, or as a result of the driver producing false or inaccurate financial responsibility information.

The bill would require the Director of Motor Vehicles, if the operation of any of the provisions specified above is delayed or interrupted by the action of a state or federal court and the constitutionality of the provision is upheld by a final decision of the court, to calculate what amount of time the operation of the provision was delayed or interrupted by the court's action, add the amount calculated to January 1, 2000, to determine a new repeal date for the challenged provision, and notify the Secretary of State in writing of the new repeal date.

The bill would become operative on January 1, 1997, and would remain in effect only until January 1, 2000, or until the date determined by the director pursuant to the provision specified above, and as of that date is repealed, unless a later enacted statute, which is enacted on or before January 1, 2000, deletes or extends that date.

The bill would provide that its provisions are severable.

(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(4) The bill would become operative only if SB 49 is enacted and becomes operative.

SECTION 1. The Legislature finds and declares all of the following:

(a) Driving is a privilege and not a right.

(b) Testimony has been presented to the Legislature that proves that the injuries of victims of uninsured motorists are so grave as to shock the public conscience, and this testimony also reveals that these injuries include death, extreme financial hardship, permanent physical disability, and emotional trauma.

(c) Law enforcement in California is prevented from effectively enforcing the vehicle financial responsibility laws because there is no authority to establish evidence of financial responsibility at the time of a traffic stop, and only limited authority to establish evidence after an accident, and this lack of authority has led to at least 28 percent of all vehicles on the roadways being out of compliance with California's existing law requiring financial responsibility.

(d) The towing of a vehicle under this act is not intended by the Legislature to be a punishment of the driver or owner of the vehicle. Fines have been established by the Legislature to punish persons who violate the financial responsibility laws. The towing is, instead, intended to protect the public against grievous bodily injury or death that may be caused by a vehicle when it is operated upon the public roadways in violation of California's existing law that requires that financial responsibility be demonstrated by the owner or driver before the vehicle is operated upon the public roadways.

SEC. 2. Section 1680 is added to the Vehicle Code, to read:

1680. (a) If the operation of Section 4000.37, 16020, 16028, 16029, 16030, 16033, 16070, 16071, 16457, 22651, or 40611 is delayed or interrupted by the action of a state or federal court and the constitutionality of that section is upheld by a final decision of the court, the director shall do all of the following:

(1) Calculate what amount of time the operation of the section was delayed or interrupted by the court's action.

(2) Add the amount calculated pursuant to paragraph (1) to January 1, 2000, to determine a new repeal date for the section.

(3) Notify the Secretary of State in writing of the repeal date calculated pursuant to paragraph (2) and state that the notice is being made pursuant to this section.

(b) This section shall remain in effect only until January 1, 2000, and as of that date is repealed, unless a later enacted statute, which is enacted on or before January 1, 2000, deletes or extends that date.

SEC. 3. Section 4000.37 is added to the Vehicle Code, to read:

4000.37. (a) Upon application for renewal of registration of a vehicle, the department shall require that the applicant submit either the form specified in paragraph (1) or any one of the items specified in paragraph (2) as evidence that the applicant is in compliance with the financial responsibility laws of this state:

(1) A form developed by the department that includes all of the following:

(A) The name and address of the applicant.

(B) The year, make, model, and vehicle identification number of the vehicle.

(C) The name, insurer's identification number, and address of the insurance company or surety company providing a policy or bond for the vehicle.

(D) The effective date and expiration date of the policy or bond.

(E) A statement from the insurance company or surety company that the policy or bond meets the requirements of Section 16056 or 16500.5.

(2) Any of the following:

(A) A statement that the department has issued a certificate of self-insurance to the applicant pursuant to Section 16053, and the number of the certificate.

(B) A copy of a certificate or deposit number of a cash deposit that meets the requirements of Section 16054.2.

(C) An insurance covering note issued pursuant to Section 382 of the Insurance Code.

(D) A statement that the vehicle is owned or leased by, or under the direction of, the United States or any public entity that is included in Section 811.2 of the Government Code.

(E) A notice issued pursuant to Section 16058.

(b) This section does not apply to a vehicle for which a certification has been filed pursuant to Section 4604, until the vehicle is registered for operation on the highway.

(c) This section shall become operative on January 1, 1997.

(d) This section shall remain in effect only until January 1, 2000, or until the date determined by the director pursuant to paragraph (2) of subdivision (a) of Section 1680, whichever is later, and as of that date is repealed, unless a later enacted statute, which is enacted on or before January 1, 2000, deletes or extends that date.

SEC. 4. Section 16020 of the Vehicle Code is amended to read:

16020. (a) Every driver and every owner of a motor vehicle shall at all times be able to establish financial responsibility pursuant to Section 16021, and shall at all times carry in the vehicle evidence of the form of financial responsibility in effect for the vehicle.

(b) "Evidence of financial responsibility" means any of the following:

(1) The name of the insurance or surety company that issued a policy or bond for the vehicle that meets the requirements of Section 16056 and is currently in effect, and the number of the insurance policy or surety bond.

(2) If the owner is a self-insurer, as provided in Section 16052 or a depositor, as provided in Section 16054.2, the certificate or deposit number issued by the department.

(3) An insurance covering note, as specified in Section 382 of the Insurance Code.

(4) A showing that the vehicle is owned or leased by, or under the direction of, the United States or any public entity, as defined in Section 811.2 of the Government Code.

(c) For purposes of this section, "evidence of financial responsibility" also includes either of the following:

(1) The number of an insurance policy or surety bond that was in effect at the time of the accident, if that information is contained in the vehicle registration records of the department.

(2) The identifying symbol issued to a highway carrier by the Public Utilities Commission pursuant to Section 3543 of the Public Utilities Code and displayed on the motor vehicle.

(d) For purposes of this section, "evidence of financial responsibility" shall be in writing, and established by writing the name of the insurance company or surety company and the policy number on the vehicle registration card issued by the department.

(e) This section shall become operative on January 1, 1997.

(f) This section shall remain in effect only until January 1, 2000, or until the date determined by the director pursuant to paragraph (2) of subdivision (a) of Section 1680, whichever is later, and as of that date is repealed, unless a later enacted statute, which is enacted on or before January 1, 2000, deletes or extends that date.

SEC. 5. Section 16020 is added to the Vehicle Code, to read:

16020. (a) Every driver and every owner of a motor vehicle shall at all times be able to establish financial responsibility pursuant to Section 16021, and shall at all times carry in the vehicle evidence of the form of financial responsibility in effect for the vehicle.

(b) "Evidence of financial responsibility" means any of the following:

(1) The name of the insurance or surety company that issued a policy or bond for the vehicle that meets the requirements of Section 16056 and is currently in effect, and the number of the insurance policy or surety bond.

(2) If the owner is a self-insurer, as provided in Section 16052 or a depositor, as provided in Section 16054.2, the certificate or deposit number issued by the department.

(3) An insurance covering note, as specified in Section 382 of the Insurance Code.

(4) A showing that the vehicle is owned or leased by, or under the direction of, the United States or any public entity, as defined in Section 811.2 of the Government Code.

(c) For purposes of this section, "evidence of financial responsibility" also includes the identifying symbol issued to a highway carrier by the Public Utilities Commission pursuant to Section 3543 of the Public Utilities Code and displayed on the motor vehicle.

(d) For purposes of this section, "evidence of financial responsibility" shall be in writing, and established by writing the name of the insurance company or surety company and the policy number on the vehicle registration card issued by the department.

(e) This section shall become operative on January 1, 2000, or on the date determined by the director pursuant to paragraph (2) of subdivision (a) of Section 1680, whichever is later.

SEC. 6. Section 16028 is added to the Vehicle Code, to read:

16028. (a) Upon demand of a peace officer pursuant to subdivision (b) or (c), every person who drives upon a highway a motor vehicle required to be registered in this state shall provide evidence of financial responsibility for the vehicle. However, a peace officer shall not stop a vehicle for the sole purpose of determining whether the vehicle is being driven in violation of this subdivision.

(b) Whenever a notice to appear is issued for any alleged violation of this code, except a violation specified in Chapter 9 (commencing with Section 22500) of Division 11 or any local ordinance adopted pursuant thereto, the cited driver shall furnish written evidence of financial responsibility upon request of the peace officer issuing the citation. The peace officer shall request and write the driver's evidence of financial responsibility on the notice to appear, except where the peace officer is unable to write the driver's evidence of financial responsibility on the notice to appear due to an emergency that requires his or her presence elsewhere. If the cited driver fails to provide evidence of financial responsibility at the time the notice to appear is issued, the peace officer may issue the driver a notice to appear for violation of subdivision (a). The notice to appear for violation of subdivision (a) shall be written on the same citation form as the original violation.

(c) Whenever a peace officer is summoned to the scene of an accident described in Section 16000, the driver of any motor vehicle that is in any manner involved in the accident shall furnish written evidence of financial responsibility upon the request of the peace officer. If the driver fails to provide evidence of financial responsibility when requested, the peace officer may issue the driver a notice to appear for violation of subdivision (a).

(d) (1) If, at the time a notice to appear for a violation of subdivision (a) is issued, the person is driving a motor vehicle owned, operated, or leased by the driver's employer, and the vehicle is being driven with the permission of the employer, this section shall apply to the employer rather than the driver. In that case, a notice to appear shall be issued to the employer rather than the driver, and the driver may sign the notice on behalf of the employer.

(2) The driver shall notify the employer of the receipt of the notice issued pursuant to paragraph (1) not later than five days after receipt.

(e) A person issued a notice to appear for a violation of subdivision (a) may personally appear before the clerk of the court, as designated in the notice to appear, and provide written evidence of financial responsibility in a form consistent with Section 16020, showing that the driver was in compliance with that section at the time the notice to appear for violating subdivision (a) was issued. In lieu of a personal appearance, the person may submit written evidence of financial responsibility by mail to the court. Upon receipt by the clerk of written evidence of financial responsibility in a form consistent with Section 16020, further proceedings on the notice to appear for the violation of subdivision (a) shall be dismissed.

(f) This section shall become operative on January 1, 1997.

(g) This section shall remain in effect only until January 1, 2000, or until the date determined by the director pursuant to paragraph (2) of subdivision (a) of Section 1680, whichever is later, and as of that date is repealed, unless a later enacted statute, which is enacted on or before January 1, 2000, deletes or extends that date.

SEC. 7. Section 16029 is added to the Vehicle Code, to read:

16029. Notwithstanding any other provision of law, a violation of subdivision (a) of Section 16028 is an infraction and shall be punished as follows:

(a) Upon a first conviction, by a fine of not less than five hundred dollars ($500) and not more than one thousand dollars ($1,000).

(b) Upon a subsequent conviction, occurring within three years of a prior conviction, by a fine of not less than one thousand dollars ($1,000) and not more than two thousand dollars ($2,000).

(c) (1) At the discretion of the court, for good cause, and in addition to the penalties specified in subdivisions (a) and (b), the court may order the impoundment of the vehicle for which the owner could not produce evidence of financial responsibility in violation of subdivision (a) of Section 16028.

(2) A vehicle impounded pursuant to paragraph (1) shall be released to the legal owner of the vehicle or the legal owner's agent if all of the following conditions are met:

(A) The legal owner is a motor vehicle dealer, bank, credit union, acceptance corporation, or other licensed financial institution legally operating in this state.

(B) The legal owner or the legal owner's agent pays all towing and storage fees related to the seizure of the vehicle.

(C) The legal owner or the legal owner's agent presents foreclosure documents or an affidavit of repossession for the vehicle.

(3) (A) A legal owner or the legal owner's agent that obtains release of the vehicle pursuant to paragraph (2) shall not release the vehicle to the registered owner of the vehicle or any agents of the registered owner, unless the registered owner is a rental car agency, except upon presentation of evidence of financial responsibility, as defined in Section 16020, for the vehicle. The legal owner or the legal owner's agent shall make every reasonable effort to ensure that the evidence of financial responsibility that is presented is valid.

(B) Prior to relinquishing the vehicle, the legal owner may require the registered owner to pay all towing and storage charges related to impoundment and any administrative charges authorized under Section 22850.5 that were incurred by the legal owner in connection with obtaining custody of the vehicle.

(4) A vehicle impounded under paragraph (1) shall be released to a rental car agency if the agency is either the legal owner or the registered owner of the vehicle and the agency pays all towing and storage fees related to the seizure of the vehicle.

(5) A vehicle impounded under paragraph (1) shall be released to the registered owner of the vehicle only upon presentation of evidence of financial responsibility, as defined in Section 16020, for that vehicle, and evidence that all towing and storage fees related to the seizure of the vehicle are paid.

This paragraph does not apply to a person, entity, or agency who is entitled to release of a vehicle under paragraph (2) or (4) and is either:

(A) The registered and the legal owner and is described in subparagraph (A) of paragraph (2).

(B) The registered owner or legal owner and is described in paragraph (4).

(d) It is the intent of the Legislature that fines collected pursuant to this section be used to reduce the number of uninsured drivers and not be used to generate revenue for general purposes.

(e) This section shall become operative on January 1, 1997.

(f) This section shall remain in effect only until January 1, 2000, or until the date determined by the director pursuant to paragraph (2) of subdivision (a) of Section 1680, whichever is later, and as of that date is repealed, unless a later enacted statute, which is enacted on or before January 1, 2000, deletes or extends that date.

SEC. 8. Section 16030 is added to the Vehicle Code, to read:

16030. (a) Except as provided in subdivision (c), any person who knowingly provides false evidence of financial responsibility (1) when requested by a peace officer pursuant to Section 16028 or (2) to the clerk of the court as permitted by subdivision (e) of Section 16028, including an expired or canceled insurance policy, bond, or certificate or deposit number, is guilty of a misdemeanor punishable by a fine not exceeding seven hundred fifty dollars ($750) or imprisonment in the county jail not exceeding 30 days, or by both that fine and imprisonment. The court shall additionally suspend the driver's license of any person convicted of a violation of this subdivision for a period of one year commencing upon the date of the conviction, in accordance with Sections 13206 and 13207. Driver's licenses surrendered to the court pursuant to this section shall be transmitted by the court, together with the required report of the conviction, to the department within 10 days of the conviction. Upon conclusion of the period of suspension, the department shall not return the driver's license until the licensee provides evidence of financial responsibility, as defined in Section 16020.

(b) However, in lieu of suspending a person's driving privileges pursuant to subdivision (a), the court shall restrict the person's driving privileges to driving that is required in the person's course of employment, if driving of a motor vehicle is necessary in order to perform the duties of the person's primary employment. The restriction shall remain in effect for the period of suspension otherwise required by subdivision (a). The court shall provide for endorsement of the restriction on the person's driver's license, and violation of the restriction constitutes a violation of Section 14603 and grounds for suspension or revocation of the license under Section 13360.

(c) This section does not apply to a driver who is driving a motor vehicle owned, operated, or leased by the employer of the driver and driven with the permission of the employer.

(d) This section shall become operative on January 1, 1997.

(e) This section shall remain in effect only until January 1, 2000, or until the date determined by the director pursuant to paragraph (2) of subdivision (a) of Section 1680, whichever is later, and as of that date is repealed, unless a later enacted statute, which is enacted on or before January 1, 2000, deletes or extends that date.

SEC. 9. Section 16033 is added to the Vehicle Code, to read:

16033. (a) No public entity or employee, or any person or organization authorized under Section 4610 to endorse receipts or validate registration cards or potential registration cards, is liable for any loss, detriment, or injury resulting directly or indirectly from failure to request evidence of financial responsibility or inaccurately recording that evidence under Section 16028 or as a result of the driver producing false or inaccurate financial responsibility information.

(b) This section shall become operative on January 1, 1997.

(c) This section shall remain in effect only until January 1, 2000, or until the date determined by the director pursuant to paragraph (2) of subdivision (a) of Section 1680, whichever is later, and as of that date is repealed, unless a later enacted statute, which is enacted on or before January 1, 2000, deletes or extends that date.

SEC. 10. Section 16070 of the Vehicle Code is amended to read:

16070. (a) Whenever a driver involved in an accident described in Section 16000 fails to provide evidence of financial responsibility as required by Section 16020 at the time of the accident, the department shall pursuant to subdivision (b) suspend the privilege of the driver or owner to drive a motor vehicle, including the driving privilege of a nonresident in this state.

(b) Whenever the department receives an accident report pursuant to this article which alleges that any of the drivers involved in the accident was not in compliance with Section 16020 at the time of the accident, the department shall immediately mail to that driver a notice of intent to suspend the driving privilege of that driver. The department shall suspend the driving privilege 30 days after mailing the notice, unless the driver has, prior to that date, established financial responsibility at the time of the accident, as specified in Section 16021, with the department. The suspension notice shall notify the driver of the action taken and the right to a hearing under Section 16075.

(c) This section shall become operative on January 1, 1997.

(d) This section shall remain in effect only until January 1, 2000, or until the date determined by the director pursuant to paragraph (2) of subdivision (a) of Section 1680, whichever is later, and as of that date is repealed, unless a later enacted statute, which is enacted on or before January 1, 2000, deletes or extends that date.

SEC. 11. Section 16070 is added to the Vehicle Code, to read:

16070. (a) Whenever a driver involved in an accident described in Section 16000 fails to prove the existence of financial responsibility as required by Section 16020 at the time of the accident, the department shall, pursuant to subdivision (b), suspend the privilege of the driver or owner to drive a motor vehicle, including the driving privilege of a nonresident in this state.

(b) Whenever the department receives an accident report pursuant to this article which alleges that any of the drivers involved in the accident was not in compliance with Section 16020 at the time of the accident, the department shall immediately mail to that driver a notice of intent to suspend the driving privilege of that driver. The department shall suspend the driving privilege 30 days after mailing the notice, unless the driver has, prior to that date, established proof of financial responsibility at the time of the accident, as specified in Section 16021, with the department. The suspension notice shall notify the driver of the action taken and the right to a hearing under Section 16075.

(c) This section shall become operative on January 1, 2000, or on the date determined by the director pursuant to paragraph (2) of subdivision (a) of Section 1680, whichever is later.

SEC. 12. Section 16071 of the Vehicle Code is amended to read:

16071. (a) The department shall suspend the driving privilege of any person upon receiving notice from another state that the person's driving privilege in that state has been suspended for failure to meet the financial responsibility provisions of the law in that state, if the suspension in that state was taken on grounds that would have resulted in a suspension in this state.

(b) This section shall become operative on January 1, 1997.

(c) This section shall remain in effect only until January 1, 2000, or until the date determined by the director pursuant to paragraph (2) of subdivision (a) of Section 1680, whichever is later, and as of that date is repealed, unless a later enacted statute, which is enacted on or before January 1, 2000, deletes or extends that date.

SEC. 13. Section 16071 is added to the Vehicle Code, to read:

16071. (a) The department shall suspend the driving privilege of any person upon receiving notice from another state that the person's driving privilege in that state has been suspended for failure to meet the proof of financial responsibility provisions of the law in that state, if the suspension in that state was taken on grounds that would have resulted in a suspension in this state.

(b) This section shall become operative on January 1, 2000, or on the date determined by the director pursuant to paragraph (2) of subdivision (a) of Section 1680, whichever is later.

SEC. 14. Section 16457 of the Vehicle Code is amended to read:

16457. (a) Whenever proof of financial responsibility is required to be filed pursuant to this chapter, no person of whom that proof is required shall drive any motor vehicle not covered by the certificate of proof of financial responsibility filed by him or her with the department, nor shall any applicant for that proof knowingly fail to disclose ownership of a motor vehicle in the application for proof of financial responsibility or to disclose any subsequently acquired motor vehicle.

(b) This section shall become operative on January 1, 1997.

(c) This section shall remain in effect only until January 1, 2000, or until the date determined by the director pursuant to paragraph (2) of subdivision (a) of Section 1680, whichever is later, and as of that date is repealed, unless a later enacted statute, which is enacted on or before January 1, 2000, deletes or extends that date.

SEC. 15. Section 16457 is added to the Vehicle Code, to read:

16457. (a) Whenever proof of financial responsibility is required to be filed pursuant to Section 16432, no person of whom that proof is required shall drive any motor vehicle not covered by the certificate of proof of financial responsibility filed by him or her with the department, nor shall any applicant for that proof knowingly fail to disclose ownership of a motor vehicle in the application for proof of financial responsibility or to disclose any subsequently acquired motor vehicle.

(b) This section shall become operative on January 1, 2000, or on the date determined by the director pursuant to paragraph (2) of subdivision (a) of Section 1680, whichever is later.

SEC. 16. Section 40611 of the Vehicle Code is amended to read:

40611. Upon proof of correction of an alleged violation of Section 12500 or 12951, or any violation cited pursuant to Section 40610, or upon submission of evidence of financial responsibility pursuant to subdivision (e) of Section 16028, the clerk shall collect a ten dollar ($10) transaction fee for each case. The fee shall be deposited by the clerk in accordance with Section 68084 of the Government Code, and allocated monthly as follows:

(a) Thirty-three percent shall be transferred to the local governmental entity in whose jurisdiction the citation was issued for deposit in the general fund of the entity.

(b) Thirty-four percent shall be transferred to the State Treasury for deposit in the State Penalty Fund established by Section 1464 of the Penal Code.

(c) Thirty-three percent shall be deposited in the county general fund.

(d) No fee shall be imposed pursuant to this section if the violation notice is processed only by the issuing agency and no record of the action is transmitted to the court.

(e) This section shall become operative on January 1, 1997.

(f) This section shall remain in effect only until January 1, 2000, or until the date determined by the director pursuant to paragraph (2) of subdivision (a) of Section 1680, whichever is later, and as of that date is repealed, unless a later enacted statute, which is enacted on or before January 1, 2000, deletes or extends that date.

SEC. 17. Section 40611 is added to the Vehicle Code, to read:

40611. Upon proof of correction of an alleged violation of Section 12500 or 12951, or any violation cited pursuant to Section 40610, the clerk shall collect a ten dollar ($10) transaction fee for each case. The fee shall be deposited by the clerk in accordance with Section 68084 of the Government Code, and allocated monthly as follows:

(a) Thirty-three percent shall be transferred to the local governmental entity in whose jurisdiction the citation was issued for deposit in the general fund of the entity.

(b) Thirty-four percent shall be transferred to the State Treasury for deposit in the State Penalty Fund established by Section 1464 of the Penal Code.

(c) Thirty-three percent shall be deposited in the county general fund.

(d) No fee shall be imposed pursuant to this section if the violation notice is processed only by the issuing agency and no record of the action is transmitted to the court.

(e) This section shall become operative on January 1, 2000, or on the date determined by the director pursuant to paragraph (2) of subdivision (a) of Section 1680, whichever is later.

SEC. 18. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.

Notwithstanding Section 17580 of the Government Code, unless otherwise specified, the provisions of this act shall become operative on the same date that the act takes effect pursuant to the California Constitution.

SEC. 19. The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

SEC. 20. This act shall become operative only if Senate Bill 49 is enacted and becomes operative.

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