AB 540

This bill limits the liability that may be imputed to a parent or other adult who

sponsors a person under the age of 18 (minor) in obtaining a motor vehicle operator's

license.

Under current law, with limited exceptions, an application for a motor vehicle

operator's license by a minor must be signed and verified by a parent or other adult

sponsor. After the operator's license is issued, any negligence or willful misconduct

of the minor when operating a motor vehicle is imputed to the parents or to the adult

sponsor who signed the application. The parents or the adult sponsor is jointly and

severally liable with the minor for any damages caused by the minor's negligent or

willful misconduct.

This bill creates a limit for liability imputed to the parents or adult sponsor for

damages caused by the minor's negligent or willful misconduct. Under the bill,

liability is limited to the higher of: 1) a total of $300,000 for all parents or adult

sponsors to all parties arising from any one accident; or 2) the limits of any insurance

coverage provided to the minor under the parent's or adult sponsor's applicable

insurance policies.