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AB-3311 Vehicles: insurance.(2019-2020)

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Date Published: 02/21/2020 09:00 PM
AB3311:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 3311


Introduced by Assembly Members Grayson and Reyes
(Coauthors: Assembly Members Eduardo Garcia, Levine, Quirk, and Voepel)

February 21, 2020


An act to amend Sections 16430 and 16451 of the Vehicle Code, relating to vehicles.


LEGISLATIVE COUNSEL'S DIGEST


AB 3311, as introduced, Grayson. Vehicles: insurance.
Existing law requires an owner or operator of a motor vehicle to maintain liability insurance coverage for the named insured and any other person using the vehicle with permission in the amount of $15,000 for the bodily injury or death of any one person, $30,000 for the bodily injury or death of all persons, and $5,000 for damage to the property of others resulting from any one accident. Existing law defines “proof of financial responsibility” for purposes of provisions requiring an owner or operator of a motor vehicle to maintain proof of financial responsibility in these amounts, as specified. Under existing law, a violation of the Vehicle Code is a crime.
This bill would increase the amount of liability insurance coverage an owner or operator of a motor vehicle is required to maintain to $30,000 for bodily injury or death of one person, $60,000 for bodily injury or death of all persons, and $25,000 for damage to the property of others as a result of any one accident. This bill would make conforming changes to the definition of “proof of financial responsibility” for purposes of the provisions described above. This bill would, beginning on January 1, 2026, and every 5 years thereafter, adjust the amount of required liability insurance coverage by any increase in the California Consumer Price Index, as specified. Because this bill would expand the application of an existing crime, it would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 16430 of the Vehicle Code is amended to read:

16430.
 (a) “Proof of financial responsibility,” when required by this code, means proof of financial responsibility resulting from the ownership or operation of a motor vehicle and arising by reason of personal injury to, or death of, any one person, of at least fifteen thousand dollars ($15,000), thirty thousand dollars ($30,000), and, subject to the limit of fifteen thousand dollars ($15,000) thirty thousand dollars ($30,000) for each person injured or killed, of at least thirty thousand dollars ($30,000) sixty thousand dollars ($60,000) for the injury to, or the death of, two or more persons in any one accident, and for damages to property in excess of one thousand dollars ($1,000), of at least five thousand dollars ($5,000) twenty-five thousand dollars ($25,000) resulting from any one accident. Proof of financial responsibility may be given in any manner authorized in this chapter.
(b) This section shall become operative on January 1, 2017. Effective January 1, 2026, and every five years thereafter on January 1, the minimum limits established in subdivision (a) shall be increased in an amount equal to any increase in the California Consumer Price Index as determined by the California Department of Industrial Relations.

SEC. 2.

 Section 16451 of the Vehicle Code is amended to read:

16451.
 (a) An owner’s policy of motor vehicle liability insurance shall insure the named insured and any other person using any motor vehicle registered to the named insured with the express or implied permission of the named insured, against loss from the liability imposed by law for damages arising out of ownership, maintenance, or use of the motor vehicle within the continental limits of the United States to the extent and aggregate amount, exclusive of interest and costs, with respect to each motor vehicle, of fifteen thousand dollars ($15,000) thirty thousand dollars ($30,000) for bodily injury to or death of each person as a result of any one accident and, subject to the limit as to one person, the amount of thirty thousand dollars ($30,000) sixty thousand dollars ($60,000) for bodily injury to or death of all persons as a result of any one accident accident, and the amount of five thousand dollars ($5,000) twenty-five thousand dollars ($25,000) for damage to property of others as a result of any one accident.
(b) Effective January 1, 2026, and every five years thereafter on January 1, the minimum limits established in subdivision (a) shall be increased in an amount equal to any increase in the California Consumer Price Index as determined by the California Department of Industrial Relations.

SEC. 3.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.