AN ACT STRENGTHENING ENFORCEMENT OF MANDATORY SECURITY REQUIREMENTS FOR MOTOR VEHICLES WITH A COMMERCIAL REGISTRATION

AN ACT STRENGTHENING ENFORCEMENT OF MANDATORY SECURITY REQUIREMENTS FOR MOTOR VEHICLES WITH A COMMERCIAL REGISTRATION

This bill makes it a class D felony for an owner of a vehicle with a commercial registration to knowingly operate or permit the operation of the vehicle without the financial security (e. g. , insurance) required by law. A person guilty of a class D felony faces imprisonment up to five years, a fine up to $ 5,000, or both.

The bill requires certain owners of vehicles with commercial registrations to file with DMV evidence of the required financial security at least once every six months. At least once every two years, the owner must file a motor carrier identification report with the security evidence. The bill requires the DMV commissioner to suspend the registration of each motor vehicle registered in the owner’s name if the owner does not make the required filings.

The bill requires the DMV commissioner to report to the Insurance and Real Estate and Transportation committees by January 1, 2007 regarding its receipt of the identification reports and security evidence.

*Senate Amendment “A” requires, instead of authorizes, the DMV commissioner to suspend the registration of each motor vehicle registered in the owner’s name if the owner does not make the required filings. It reduces the frequency with which the owner files a motor carrier identification report from at least once a year to at least once every two years. It also eliminates a section that applied the current DMV uninsured private passenger motor vehicle registration suspension process to uninsured motor vehicles with commercial registrations.

By law, owners of private passenger motor vehicles, motor vehicles with combination registrations, or motor vehicles with commercial registrations are prohibited from operating or permitting the operation of any vehicle without the mandatory security required by law (CGS § 14-213(b)). (Motor vehicles cannot be operated unless they are covered by financial security of at least (1) bodily injury of $ 20,000 per person and $ 40,000 per accident; (2) property damage liability of $ 10,000 per accident; and (3) uninsured and underinsured motorist coverage of $ 10,000 per person and $ 40,000 per accident. ) Violators are subject to a civil fine of between $ 100 and $ 1,000 and guilty of a class C misdemeanor (up to three months imprisonment, up to a $ 500 fine, or both).

By law, certain owners of a motor vehicle with commercial registrations are required to carry higher amounts of financial security (CGS § 14-163c, see BACKGROUND).

The bill adds a criminal penalty for an owner of vehicle with a commercial registration who knowingly operates or permits the operation of the vehicle without the financial security (e. g. , insurance) required by law. Such an owner is guilty of a class D felony (up to five years imprisonment, up to a $ 5,000 fine, or both).

The bill requires certain owners of vehicles with a commercial registration to file with DMV evidence of financial security in the amount required by law at least once every six months according to a schedule the commissioner establishes. At least once every two years, the owner must file a motor carrier identification report with the security evidence. The identification report must meet the requirements of federal regulations and be in a format the commissioner prescribes.

This reporting requirement applies to an owner of a motor vehicle that is (1) in intrastate commerce and has a gross vehicle weight rating (GVWR) or gross combination weight rating (GCWR) over 18,000 pounds; (2) in interstate commerce and has a GVWR or GCWR over 10,000 pounds; (3) designed to transport more than 15 passengers, including the driver; or (4) used to transport hazardous materials and required to be placarded in accordance with federal regulations. “GVWR” is the greater of the vehicle’s maximum loaded weight according to the manufacturer or the registered gross weight. “GCWR” is the GVWR of the vehicle’s power unit plus the GVWR of towed units.

If an owner fails to file the identification report or security evidence as required, the bill requires the DMV commissioner, after notice and an opportunity for hearing, to suspend the registration of each motor vehicle registered in the owner’s name. This registration suspension is in addition to any other penalties allowed by law.

Federal law prohibits motor carriers from operating motor vehicles unless the carrier has obtained and has in effect an appropriate level of financial responsibility (e. g. , insurance policies, surety bonds, self-insurance) to cover potential liability for bodily injury, property damage, and environmental restoration. The term “motor carrier” includes a carrier’s (1) agent, officer, or representative; (2) employee responsible for hiring, supervising, training, assigning, or dispatching drivers; and (3) employees involved with the installation, inspection, and maintenance of motor vehicle equipment and accessories (49 CFR §§ 387. 5 and 387. 29). The financial responsibility requirements apply to the following carriers’ motor vehicles that (1) have a GVWR over 10,000 pounds and (2) carry certain hazardous substances requiring placarding under federal regulations, regardless of weight:

1. for-hire and private carriers operating motor vehicles transporting hazardous (a) materials, (b) substances, or (c) wastes;

2. for-hire carriers operating motor vehicles transporting property in interstate or foreign commerce;

3. for-hire carriers transporting passengers in interstate or foreign commerce; and

4. private carriers domiciled in Mexico transporting property in interstate or foreign commerce (49 CFR § 387. 3).

For-hire carriers are in the business of transporting, for compensation, (1) the goods or property of another or (2) passengers and their property (49 CFR §§ 387. 5 and 387. 29).

The minimum levels of financial responsibility that a motor carrier must maintain under federal regulations range from $ 750,000 to $ 5 million depending on the (1) type of motor vehicles operated and (2) type and quantity of cargo (property or people transported) (49 CFR §§ 387. 9 and 387. 33).

Any person who knowingly violates the federal rules is subject to a civil penalty of up to $ 16,000 for each violation. If any violation is a continuing one, each day of continued violation constitutes a separate offense. The Federal Motor Carrier Safety Administration's administrator determines the penalty amount by considering the nature, circumstances, extent, and gravity of the violation; degree of culpability; history of prior offenses; ability to pay; effect on the carrier’s ability to continue doing business; and other matters justice may require (49 CFR §§ 387. 17, 387. 41, and 386, Appendix B).

State law authorizes the DMV commissioner to adopt regulations that incorporate by reference (i. e. , adopt as state regulations) the federal financial responsibility requirements for any motor vehicle (1) in intrastate commerce and has a GVWR or GCWR over 18,000 pounds; (2) in interstate commerce and has a GVWR or GCWR over 10,000 pounds; (3) designed to transport more than 15 passengers, including the driver; or (4) used to transport hazardous materials and required to be placarded in accordance with federal regulations (CGS § 14-163c). The commissioner has adopted such regulations (Conn. Agencies Regs. § 14-163c-2).

State law authorizes state and municipal police officers and motor vehicle inspectors to (1) inspect any carrier’s motor vehicle in operation and examine its operator to determine compliance with the financial responsibility requirements, (2) enter a motor carrier’s premises to inspect its records, (3) conduct a safety rating procedure for any motor carrier that owns or operates a motor vehicle subject to the requirements, (4) declare a motor vehicle or its operator out of service, or (5) issue an infractions complaint (CGS § 163c(d)). A violation of an out-of-service order is an infraction (Conn. Agencies Regs. §§ 14-163c-6 and 14-163c-8).

Under state law, a first violation of the financial responsibility regulations is an infraction. The law authorizes the DMV commissioner to impose a civil penalty for a second or subsequent violation of up to $ 10,000 per violation. A person assessed a civil penalty may request a hearing. If he does not comply with the commissioner’s final decision and order, the commissioner may suspend any motor vehicle registration issued to him or his privilege to register any motor vehicle in the state until he complies with the order (CGS § 14-163c(e)).

Since the federal financial responsibility requirements for motor carriers, as adopted by the state, do not apply to all vehicles with commercial registrations, the state legislature expanded the applicability of the mandatory security for motor vehicles, effective October 1, 1994 (PA 94-243). A “commercial registration” is the type of registration required for any motor vehicle designed or used to transport merchandise, freight, or people in connection with any business enterprise (CGS § 14-1(14)).

The owner of a vehicle with a commercial registration must continuously maintain throughout the vehicle’s registration period financial security including, at a minimum, (1) bodily injury liability of $ 20,000 per person and $ 40,000 per accident; (2) property damage liability of $ 10,000 per accident; and (3) uninsured and underinsured motorist coverage of $ 20,000 per person and $ 40,000 per accident (CGS § 38a-371).

Police officers have the discretion to seize and impound any motor vehicle operated on a public road or parked in parking areas if it is identified as uninsured (CGS § 14-12h).

The Motor Carrier Identification Report (Form MCS-150) used by the Federal Motor Carrier Safety Administration includes basic information about the motor carrier, including name, address, telephone number, U. S. DOT number, federal tax identification number, type of company operations, type of cargo, number and type of vehicles operating in the United States, number of drivers, and the names and titles of the company owner, officers, or partners.