Current Status Introducing Body:House Bill Number:4644 Primary Sponsor:Farr Committee Number:26 Type of Legislation:GB Subject:Motor vehicle insurance, provisions Residing Body:House Current Committee:Labor, Commerce and Industry Computer Document Number:BBM/9590.JM Introduced Date:Mar 31, 1992 Last History Body:House Last History Date:Mar 31, 1992 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Farr Type of Legislation:General Bill
Bill Body Date Action Description CMN
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4644 House Mar 31, 1992 Introduced, read first time, 26
referred to Committee
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TO REPEAL SECTION 38-77-110, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE REQUIREMENT ON AUTOMOBILE INSURERS TO INSURE, AND EXCEPTIONS; TO PROVIDE THAT NO RECOUPMENT FEE MAY BE IMPOSED UPON, OR CHARGED TO, AN INSURED UNDER A POLICY OF MOTOR VEHICLE INSURANCE ISSUED OR RENEWED IN THIS STATE WHO HAS NO MOTOR VEHICLE, TRAFFIC, OR RELATED VIOLATIONS ON HIS DRIVING RECORD FOR THE THREE YEARS IMMEDIATELY PRECEDING THE ISSUANCE OR RENEWAL OF THE POLICY; TO AMEND CHAPTER 77, TITLE 38, RELATING TO AUTOMOBILE INSURANCE, BY ADDING ARTICLE 2 SO AS TO REQUIRE A STICKER OR EMBLEM EVIDENCING INSURANCE COVERAGE TO BE AFFIXED TO MOTOR VEHICLES, INCLUDING PROVISION FOR PENALTIES AND THE PAYMENT OF FINES TO THE SOUTH CAROLINA REINSURANCE FACILITY; TO AMEND SECTION 56-10-270, RELATING TO THE OPERATION OF AN UNINSURED MOTOR VEHICLE, SO AS TO INCREASE THE PENALTIES, DELETE CERTAIN LANGUAGE AND PROVISIONS, PROVIDE FOR THE PAYMENT OF FINES TO THE SOUTH CAROLINA REINSURANCE FACILITY, AND INCREASE THE PERIOD FOR THE SUSPENSION OF DRIVING PRIVILEGES AND LICENSE PLATES AND REGISTRATION CERTIFICATES; TO AMEND SECTION 56-5-6240, RELATING TO FORFEITURE, CONFISCATION, AND SALE OF CERTAIN MOTOR VEHICLES AND DISBURSEMENT AND USE OF THE PROCEEDS, SO AS TO PROVIDE FOR SUCH FORFEITURE UPON A SECOND OR SUBSEQUENT, RATHER THAN A FOURTH OR SUBSEQUENT, VIOLATION OF DUS (DRIVING UNDER SUSPENSION) AND UPON A SECOND OR SUBSEQUENT, RATHER THAN A FOURTH OR SUBSEQUENT VIOLATION OF DUI (DRIVING UNDER THE INFLUENCE), PROVIDE FOR SUCH FORFEITURE UPON A SECOND OR SUBSEQUENT VIOLATION WITHIN THE LAST TEN YEARS OF KNOWINGLY OPERATING AN UNINSURED MOTOR VEHICLE SUBJECT TO REGISTRATION IN THIS STATE OR KNOWINGLY ALLOWING THE OPERATION OF AN UNINSURED MOTOR VEHICLE SUBJECT TO REGISTRATION IN THIS STATE, AND PROVIDE THAT, UPON THE SALE OF THE VEHICLE, THE LAW ENFORCEMENT AGENCY MAKING THE ARREST OR ITS AUTHORIZED AGENT SHALL PAY OVER ONE-FOURTH, RATHER THAN ALL, OF THE NET PROCEEDS, AFTER CERTAIN OTHER PAYMENTS, TO THE STATE OR THE POLITICAL SUBDIVISION OF THIS STATE OF WHICH THE LAW ENFORCEMENT AGENCY IS A PART AND SHALL PAY OVER THE REMAINING THREE-FOURTHS OF THE NET PROCEEDS TO THE SOUTH CAROLINA REINSURANCE FACILITY; AND TO PROVIDE THAT NO INSURANCE MERIT RATING POINTS MAY BE ASSESSED NOR MAY ANY CHARGE BE IMPOSED WHICH INCREASES AN INSURED'S PREMIUM ON A POLICY OF MOTOR VEHICLE INSURANCE AS A RESULT OF AN ACCIDENT THAT IS PROXIMATELY CAUSED BY POOR ROAD CONDITIONS OR HAZARDOUS WEATHER CONDITIONS WHEREIN THE OPERATOR OF THE MOTOR VEHICLE IS INVOLVED IN AN UNAVOIDABLE ACCIDENT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-77-110 of the 1976 Code is repealed.
SECTION 2. No recoupment fee may be imposed upon, or charged to, an insured under a policy of motor vehicle insurance issued or renewed in this State who has no motor vehicle, traffic, or related violations on his driving record for a period of three years immediately preceding the issuance or renewal of the policy.
SECTION 3. Chapter 77, Title 38 of the 1976 Code is amended by adding:
Section 38-77-80. (A) The owner of a motor vehicle registered in this State who is required by Section 56-10-10 to provide the security required for the maintenance or use of the vehicle and who has owned the motor vehicle for thirty days or more, as prima facie evidence that the security is currently in full force and effect, shall affix on the front windshield an identifying sticker or emblem which indicates the month, day, and year for which the policy has been paid plus any grace period allowed by the automobile insurer. Policies must expire at the end of a month regardless of the period for which it is issued. If requested by the insured to issue the sticker or emblem for a period less than the paid-up period, the sticker or emblem must be issued for at least three months.
(B) The form and content of the sticker or emblem required by subsection (A) must be prescribed by the Department of Highways and Public Transportation. All stickers or emblems must be supplied by or under the authority of the Department of Highways and Public Transportation, be serially numbered, and be an easily removable void sticker. An automobile insurer shall purchase the stickers or emblems from the Department of Highways and Public Transportation at a cost not to exceed fifty cents each. The department shall require monthly reports to be made by persons to whom stickers or emblems have been supplied which must include, at least, the number of the sticker or emblem, the license tag number of the motor vehicle for which it was issued, the name of its owner, and the date issued.
(C) All stickers or emblems issued pursuant to this section are the property of the State and must be affixed permanently by the owner to the vehicle covered by the required security only during the time for which the security which it represents remains in full force and effect. Every vehicle owner immediately shall remove from the vehicle any sticker or emblem purporting to represent security which he knows has been terminated, canceled, impaired, expired, or is otherwise ineffective.
(D) When a vehicle owner meets the security requirements of this section through the purchase of a contract of insurance, the authorized automobile insurer or its authorized agent with which he has contracted for the security shall provide a sticker or emblem as described in subsection (A). The commissioner shall furnish or authorize for each insurer sufficient quantities of the stickers or emblems as it may require and request. In no case may the quantity supplied exceed the number of vehicles which the insurer reasonably expects to insure during each annual period for which its policies of insurance are expected to be in force.
(E) To receive a refund from an insurance company for policies canceled before the date on the sticker or emblem, in addition to any requirements of the auto insurer, the sticker or emblem must be delivered to the insurer.
(F) A vehicle being operated in this State which does not have the requisite sticker or emblem affixed to the vehicle as required by this article or which has affixed a sticker or emblem which is invalid must have the license plate removed from the motor vehicle by the law enforcement officer at the time of the violation. In addition, the owner of the vehicle is guilty of a misdemeanor and, upon conviction, must be fined five hundred dollars, which must be paid to the South Carolina Reinsurance Facility for the maintenance of that facility. If, within ten days of the confiscation of the license plate, proof is provided by the owner of the vehicle that security required by this article was in effect at the time the license plate was removed, the vehicle's license plate must be returned to the owner and the five hundred dollar fine is waived. If no proof is provided that security existed at the time the license plate was removed, the license plate on this motor vehicle is suspended until he can demonstrate to the Department of Highways and Public Transportation that he has a paid-up policy for six months in effect on the motor vehicle and pays the five hundred dollar fine which must be paid to the South Carolina Reinsurance Facility for the maintenance of that facility.
(G) (1) No person may:
(a) alter a sticker or emblem issued under the provisions of this article;
(b) manufacture, possess, or display an imitation or counterfeit sticker or emblem;
(c) remove a sticker or emblem from a motor vehicle unless he is the owner of the motor vehicle or removes the sticker or emblem at the request or direction of the owner.
(2) A person violating the provisions of this subsection is guilty of a misdemeanor and, upon conviction, for each violation must be fined in an amount not to exceed five hundred dollars or imprisoned for a period not to exceed thirty days, and the fine must be paid to the South Carolina Reinsurance Facility for the maintenance of that facility."
SECTION 4. Section 56-10-270 of the 1976 Code is amended to read:
"Section 56-10-270. (a) Any A person knowingly operating an uninsured motor vehicle subject to registration in this State or any a person knowingly allowing the operation of an uninsured motor vehicle subject to registration in this State is guilty of a misdemeanor and, upon conviction, must be fined not less than one hundred thousand dollars nor more than two hundred thousand dollars or imprisoned for thirty ninety days and, upon conviction of a second offense, be fined not less than two hundred thousand dollars or and imprisoned for thirty ninety days, or both, and for a third and subsequent offenses must be imprisoned for not less than forty-five days one year nor more than six months. Only convictions which occurred within five years including and immediately preceding the date of the last conviction constitute prior convictions within the meaning of this section. An uninsured motor vehicle includes an insured vehicle with respect to which the operator has been excluded from coverage pursuant to the provisions of Section 38-77-340. The fines provided for under this subsection must be paid to the South Carolina Reinsurance Facility for the maintenance of that facility.
(b) The department upon receipt of information to the effect that any a person has been convicted of violating subsection (a) of this section shall suspend the driving privilege and all license plates and registration certificates issued in the person's name for a period of thirty days one year and may not reinstate that person's privileges until proof of financial responsibility has been filed.
(c) Any person whose license plates and registration certificates which are suspended as provided in this section, which are not suspended for any other reason, may have them immediately restored, if he files proof of financial responsibility with the department."
SECTION 5. Section 56-5-6240(A) of the 1976 Code is amended to read:
"(A) In addition to the penalties for persons convicted of a fourth second or subsequent violation within the last ten years of operating a motor vehicle while his license is canceled, suspended, or revoked (DUS), or a fourth second or subsequent violation within the last ten years of operating a motor vehicle while under the influence of intoxicating liquor or drugs (DUI), or a second or subsequent violation within the last ten years of knowingly operating an uninsured motor vehicle subject to registration in this State or knowingly allowing the operation of an uninsured motor vehicle subject to registration in this state, the persons must have the motor vehicle they drove during this offense forfeited if the offender is the owner of record, or a resident of the household of the owner of record under the terms and conditions as provided in subsections (B) and (C) and must be confiscated by the arresting officer or other law enforcement officer of that agency at the time of arrest, which officer shall deliver it immediately to the head of his law enforcement agency or his authorized agent who shall notify the clerk of court within forty-eight hours of the confiscation. However, the clerk of court shall issue a Rule to Show Cause immediately upon notification of the confiscation which must be returnable before the presiding judge of the judicial circuit or his designated hearing officer within ten days from the date of issuance of the Rule to Show Cause and the vehicle must be returned to the owner of record if he can show by a preponderance of the evidence that (1) the use of the vehicle was not either expressly or impliedly authorized, or (2) the owner of record did not know that the driver had no valid license. Forfeiture of a vehicle is subordinate in priority to all valid liens.
The law enforcement agency confiscating the vehicle shall provide notice by certified mail of the confiscation to all lienholders of record within ten days of the confiscation."
SECTION 6. Section 56-5-6240(C) of the 1976 Code is amended to read:
"(C) The law enforcement agency making the arrest or its authorized agent shall sell the confiscated vehicle at public auction for cash to the highest bidder in front of the county courthouse in the county where it was confiscated or at another suitable location in that county after having given ten days' public notice of the sale by posting an advertisement on the door or bulletin board of the county courthouse or other location of the public auction, and by publishing an advertisement of the auction at least once in a newspaper of general circulation in the county at least ten days before the auction. Upon the sale, the agency or its agent shall pay over one-fourth of the net proceeds, after payment of the liens and encumbrances on the vehicle, and after payment of the proper costs and expenses, if any, of the seizure, advertisement, and sale including any proper expense incurred for the storage of the confiscated vehicle, to the State or the political subdivision of this State of which the law enforcement agency is a part, for use in law enforcement and shall pay over the remaining three-fourths of the net proceeds to the South Carolina Reinsurance Facility for the maintenance of that facility."
SECTION 7. No insurance merit rating points may be assessed nor may any charge be imposed which increases an insured's premium on a policy of motor vehicle insurance as a result of an accident, whether a chargeable traffic violation or not, that is proximately caused by poor road conditions or hazardous weather conditions wherein the operator of the motor vehicle is involved in an unavoidable accident.
SECTION 8. This act takes effect one year after approval by the Governor.