AB 650 Vehicles

AB 650 Vehicles: Financial Responsibility

BILL NUMBER: AB 650 CHAPTERED 09/30/96

CHAPTER 1126

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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