THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY MARSHALL, EVANKOVICH, HEFFLEY, TAYLOR, BOBACK, CALTAGIRONE, COHEN, DAVIDSON, DENLINGER, EVERETT, GEIST, GINGRICH, GODSHALL, HESS, KOTIK, MURT, M. O'BRIEN, PICKETT, READSHAW, SABATINA, SCHMOTZER, STERN, SWANGER AND JAMES, JUNE 21, 2012

REFERRED TO COMMITTEE ON TRANSPORTATION, JUNE 21, 2012  

AN ACT

Amending Title 75 (Vehicles) of the Pennsylvania Consolidated

Statutes, further providing for required financial

responsibility.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1786(d)(2) and (e) of Title 75 of the

Pennsylvania Consolidated Statutes are amended and subsection

(d) is amended by adding a paragraph to read:

§ 1786.  Required financial responsibility.

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(d)  Suspension of registration and operating privilege.--

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(1.1)  In lieu of serving a registration suspension

imposed under this section, an owner or registrant may pay to

the department a civil penalty of $500, the fee for

restoration of registration provided by section 1960 and

furnish proof of financial responsibility in a manner

determined by the department.

(2)  Whenever the department revokes or suspends the

registration of any vehicle under this chapter, the

department shall not restore or transfer the registration

until the suspension has been served or the civil penalty has

been paid to the department and the vehicle owner furnishes

proof of financial responsibility in a manner determined by

the department and submits an application for registration to

the department, accompanied by the fee for restoration of

registration provided by section 1960. This subsection shall

not apply in the following circumstances:

(i)  The owner or registrant proves to the

satisfaction of the department that the lapse in

financial responsibility coverage was for a period of

less than 31 days and that the owner or registrant did

not operate or permit the operation of the vehicle during

the period of lapse in financial responsibility.

(ii)  The owner or registrant is a member of the

armed services of the United States, the owner or

registrant has previously had the financial

responsibility required by this chapter, financial

responsibility had lapsed while the owner or registrant

was on temporary, emergency duty and the vehicle was not

operated during the period of lapse in financial

responsibility. The exemption granted by this paragraph

shall continue for 30 days after the owner or registrant

returns from duty as long as the vehicle is not operated

until the required financial responsibility has been

established.

(iii)  The insurance coverage has terminated or

financial responsibility has lapsed simultaneously with

or subsequent to expiration of a seasonal registration,

as provided in section 1307(a.1) (relating to period of

registration).

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(e)  Obligations upon issuance, lapse, termination or

cancellation of financial responsibility.--

(1)  An owner of a motor vehicle who ceases to maintain

financial responsibility on a registered vehicle shall not

operate or permit operation of the vehicle in this

Commonwealth until proof of the required financial

responsibility has been provided to the Department of

Transportation.

(2)  An insurer who has issued a contract of motor

vehicle liability insurance, or any approved self-insurance

entity, shall notify the department [in a timely manner] of

such issuance within 24 hours and in a method prescribed by

the [department's regulations] department. [Upon request of

an owner or registrant in the case of an appeal brought by an

owner or registrant for suspension under this section, an

insurer shall provide a copy of the notice of cancellation or

a copy of the insurer's filing procedures with proof that the

notice was written in the normal course of business and

placed in the normal course of mailing. The department shall

not be required to produce such copy or any other proof that

notice of termination, lapse or cancellation was provided to

the owner or registrant in order to satisfy the burden of

proof in a proceeding under this section.]

(2.1)  Upon request by the department, an insurer shall

notify the department of all vehicles for which it is

providing vehicle liability insurance on the date of the

request. The insurer shall submit the information as

prescribed by the department.

(3)  An insurer who has issued a contract of motor

vehicle liability insurance [and knows or has reason to

believe that the contract is only for the purpose of

providing proof of financial responsibility] shall notify the

department if the insurance has lapsed or been canceled or

terminated by the insured or by the insurer. The insurer

shall notify the department not later than ten days following

the effective date of the cancellation or termination. Upon

request of a motor vehicle owner or in the case of an appeal

brought by an owner or registrant for suspension under this

section, an insurer shall provide a copy of the notice of

termination, lapse or cancellation or a copy of the insurer's

filing procedures with proof that the notice was written in

the normal course of business and placed in the normal course

of mailing. The department shall not be required to produce

such copy or any other proof that notice of termination,

lapse or cancellation was provided to the owner or registrant

in order to satisfy the burden of proof in a proceding under

this section.

(4)  A person who, after maintaining financial

responsibility on the vehicle of another person, ceases to

maintain such financial responsibility shall immediately

notify the vehicle's owner who shall not operate, or permit

operation of, the vehicle in this Commonwealth.

(5)  In the case of a person who leases any motor vehicle

from a person engaged in the business of leasing motor

vehicles, the lessee shall sign a statement indicating that

the required financial responsibility has been provided

through the lessor or through the lessee's motor vehicle

liability insurance policy coverage. The lessee shall submit

the statement to the lessor.

(6)  Upon request of the department, an insurer shall

verify whether a contract of motor vehicle liability

insurance has been issued for a vehicle.

(7)  Certification by the department that it was unable

to verify the existence of insurance shall be admissible into

evidence, shall be prima facie evidence of the absence of

required financial responsibility for purposes of this

section and shall establish a presumption that the coverage

does not exist.

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Section 2. This act shall take effect in 60 days.