SB 486

Under current law, if a motor vehicle accident results in injury, death, or

property damage of $1,000 or more, the Department of Transportation (DOT) is

required to notify the operator and owner of the vehicle involved in the accident that

the person must deposit with DOT security for the accident in an amount specified

by DOT, which DOT has determined is sufficient to satisfy any judgment for damages

resulting from the accident. Unless an exception applies, if a person fails to timely

deposit security after this notice is given, DOT must suspend the person's operating

privilege if the person was the vehicle operator and suspend all vehicle registrations

of the person if the person was the vehicle owner, and DOT may also order certain

vehicles impounded. Under one exception, security is not required to be deposited

if the person can provide proof of financial responsibility (including that an

applicable motor vehicle liability insurance policy or bond was in effect at the time

of the accident providing certain minimum amounts of coverage). Under another

exception, security is not required to be deposited if, prior to suspension of the

person's operating privilege or vehicle registration, satisfactory evidence is filed with

DOT that the person has been released from liability, has been adjudicated as not

liable, or has executed an agreement to pay an agreed amount of damages to settle

all claims. DOT may accept a liability release executed by a parent as natural

guardian on behalf of a minor child only if the total damages do not exceed $5,000

and a doctor certifies that the minor received no permanent injury.

Under this bill, DOT may, without limitation, accept a liability release executed

by a parent as natural guardian or by a guardian ad litem on behalf of a minor child.

For further information, see the

Notes

provided by the Law Revision

Committee of the Joint Legislative Council.