H. B. 2352
(By Delegates Stalnaker, H. White and Talbott)
[Introduced February 15, 2005; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact §17D-2A-3 of the Code of West Virginia,
1931, as amended, relating to authorizing the police to
impound a motor vehicle and auction it to the highest bidder
in the event the owner of the motor vehicle has been convicted
of driving with no insurance three or more times; providing
for the use of funds collected from the sale of impounded
motor vehicles; requiring seizing authorities to turn over
leftover funds to the State Treasurer; creating a fund to be
administered by the State Treasurer in concert with the
Superintendent of the State Police to be used to compensate
victims of uninsured and underinsured motorists; directing the
State Treasurer and the State Police to propose rules for
legislative approval designed to administer the fund in
accordance with the fund's intended purpose; and,
prohibiting
operators of motor vehicles who do not have insurance coverage from instituting lawsuits for damages.
Be it enacted by the Legislature of West Virginia:
That §17D-2A-3 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 2A. SECURITY UPON MOTOR VEHICLES.
§17D-2A-3. Required security; exceptions.
Every owner or registrant of a motor vehicle required to be
registered and licensed in this State shall maintain security as
hereinafter provided in effect continuously throughout the
registration or licensing period except in case of a periodic use
or seasonal vehicle, in which case the owner or registrant is
required to maintain security upon the vehicle only for the portion
of the year the vehicle is in actual use. As used in this section,
a periodic use or seasonal vehicle means a recreational vehicle,
antique motor vehicle, motorcycle or other motor vehicle which is
stored part of the year and used seasonally.
Every nonresident owner or registrant of a motor vehicle,
which is operated upon any road or highway of this State, and which
has been physically present within this State for more than thirty
days during the preceding three hundred sixty-five days, shall
thereafter maintain security as hereinafter provided in effect
continuously throughout the period such motor vehicle remains
within this State.
No person shall knowingly drive or operate upon any road or highway in this State any motor vehicle upon which security is
required by the provisions of this article unless such security is
in effect.
Such security shall be provided by one of the following
methods:
(a) By an insurance policy delivered or issued for the
delivery in this State by an insurance company authorized to issue
vehicle liability and property insurance policies in this State
within limits which shall be no less than the requirements of
section two, article four, chapter seventeen-d of this code; or
(b) By any other method approved by the Commissioner of the
Department of Motor Vehicles of this State as affording security
equivalent to that offered by a policy of insurance, including
qualification as a self-insurer under the provisions of section
two, article six, chapter seventeen-d; or
(c) By depositing with the State Treasurer such cash or other
securities in the manner set forth in section sixteen, article
four, chapter seventeen-d of this code.
The requirements of this section apply to every registered and
licensed vehicle upon the next application for renewal of license
following the effective date of this section: Provided, That this
article shall not apply to any motor vehicle owned by the State or
by a political subdivision of this State, nor to any motor vehicle
owned by the federal government.
(d) Upon sufficient proof that a person has been convicted
three or more times of knowingly operating a vehicle upon any road
or highway in this State without the security required by this
article, the arresting authority whose activity led to the third or
subsequent conviction is hereby authorized to seize the person's
motor vehicle in which the person committed the offense and sell it
at public auction. The seizing authority shall publish notice of
the auction by Class II notice, stating the time and place for the
auction. The motor vehicle shall be sold to the highest bidder at
the time of the auction. Any sums received from the sale shall
cover the cost of impoundment fees and costs associated with the
holding of the auction. Any remaining funds shall be turned over
by the seizing authority to the State Treasurer who shall deposit
the funds into the "Accident Victims Fund" hereby created.
(e) The State Treasurer shall administer the Accident Victims
Fund created under subsection (d) of this section in conjunction
with the Superintendent of the State Police, to be used to
compensate victims of motor vehicle accidents in the event
inadequate uninsured or underinsured motorist coverage exists to
make a victim whole from injuries received in a motor vehicle
accident involving an uninsured or underinsured motorist. The
State Treasurer in concert with the Superintendent of the State
Police shall propose rules for legislative approval in accordance
with the provisions of article three, chapter twenty-nine-a of this code designed to administer the fund to insure a reasonable rate of
return, financial solvency of the fund and to otherwise implement
the intended purpose of compensating victims of uninsured and
underinsured motorists.
(f) Notwithstanding any provision of law to the contrary, no
person, regardless of fault, who operates a motor vehicle in this
State without the security required by this section, may institute
or maintain any legal action for damages.
NOTE: The purpose of this bill is to
authorize the police to
impound a motor vehicle and auction it to the highest bidder in the
event the driver of the vehicle has been convicted of driving
without insurance three or more times. The bill also provides for
the use of funds collected from the sale of impounded cars while
prohibiting operators of motor vehicles who do not have insurance
coverage from instituting lawsuits for damages.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.