The bill amends R.S. 32:863(A)(3)(a) to update the provisions regarding reinstatement fees for lapses in motor vehicle insurance coverage. It specifies that sanctions for violations will remain in effect until proof of required liability insurance is provided and all reinstatement fees are paid. The reinstatement fees are tiered based on the duration of the lapse: $100 for one to thirty days, $250 for thirty-one to ninety days, and $500 for lapses exceeding ninety days. Notably, no reinstatement fee will be charged if the lapse is ten days or less, provided the vehicle's license plate is surrendered within that timeframe, or if it is the insured's first violation for a lapse of ten days or less, given that immediate notice of cancellation is provided.

Additionally, the bill introduces a new structure for reinstatement fees related to violations of Paragraph (2), with fees set at $250 for a first violation, $500 for a second, and $1,000 for a third or subsequent violation. It allows for the waiver of fees if proof of insurance is submitted within sixty days of the notice. The total fees for multiple violations are capped at $850 for violations of Paragraph (1) and $1,075 for Paragraph (2) violations if within the sixty-day window. Importantly, for individuals aged sixty-five and older, the total fees, including administrative costs, cannot exceed $250. After sixty days, all fees become final and delinquent.

Statutes affected:
HB384 Original: 32:863(A)(3)
HB384 Engrossed: 32:863(A)(3)
HB384 Reengrossed: 32:863(A)(3)
HB384 Enrolled: 32:863(A)(3)
HB384 Act : 32:863(A)(3)