_________ Bill No. _______

Introduced By _______________________________________________________________________________

A Bill for an Act entitled: "An Act requiring the department of justice to privatize driver's license services; amending sections 61-5-108, 61-5-111, 61-5-121, and 61-12-503, MCA; and providing a delayed effective date."

STATEMENT OF INTENT

A statement of intent is required for this bill to provide guidelines to the department of justice in adopting rules. In [section 1], the department is granted rulemaking authority to implement the privatization of driver's license services in the state. The rules must address the issues identified in [section 1] and must be adopted in accordance with the Montana Administrative Procedure Act.

Be it enacted by the Legislature of the State of Montana:

NEW SECTION. Section 1. Privatization of driver's license services -- rulemaking. (1) The department shall contract for the licensing of drivers in each county of the state in accordance with rules adopted by the department. The rules must include but are not limited to:

(a) necessary job skills and experience;

(b) location of office and hours of operation;

(d) compensation to be paid to the contractor;

(e) the amount of a surety bond or other security required of the contractor;

(f) deadlines for the submission of fees received for driver's license services and records of licenses issued;

(g) causes and procedures for termination of the contract;

(h) responsibilities and liability of the department and the contractor relating to the service expectations; and

(i) specific duties to be performed by the contractor.

(2) The contract may include all driver's license services or may be limited to certain services such as license renewals and issuance of duplicate licenses and identification cards.

(3) An established business may seek a contract to provide driver's license services in conjunction with its other commercial activities.

(4) If the department is unable to contract for the services, employees of the department shall provide the services. If department employees provide the services, the department may appoint county treasurers to act as its agents for the sale of driver's licenses receipts and shall make necessary rules governing sales.

NEW SECTION. Section 2. Bond or security required -- preferred claim of state for license money. (1) A contractor appointed by the department shall furnish a corporate surety bond or other security as required by department rule. The bond must secure the faithful performance of the duties imposed on the contractor and the accounting for and payment to the state of all money received for the licensing of drivers.

(2) All money received for the licensing of drivers at all times belongs to the state. In case of an assignment for the benefit of creditors, receivership, or bankruptcy, the state has a preferred claim against the assets and estate of a contractor for all money owed to the state.

NEW SECTION. Section 3. Compensation and duties of contractors -- penalty for late submission of money. (1) A contractor must be compensated an amount established by department rule. The department may establish a deadline for the submission of driver's license fees and driver's license records by a contractor. The records of each contractor must be open at all reasonable hours to inspection by the department or the legislative auditor.

(2) The duties of a contractor include but are not limited to:

(a) processing applications for driver's licenses, instruction permits, motorcycle endorsements, license renewals, duplicate licenses, and identification cards;

(b) examining applicants and reexamining drivers by vision, written, and performance tests;

(d) remitting fees collected for services to the department; and

(e) performing other duties as directed by the department.

(3) If a contractor fails to submit to the department all money received for the licensing of drivers and all records required by the department by the deadline established by the department, an interest charge equal to the rate charged on late corporation license tax payments under 15-31-510(2) must be assessed.

NEW SECTION. Section 4. Nontransferability of appointments -- termination of contract. An appointment of a contractor is nontransferable and is valid only at the location stated in the contract. A contract may be terminated in accordance with department rule.

Section 5. Section 61-5-108, MCA, is amended to read:

"61-5-108. Application of minors -- imputed liability. (1) The application of any person under the age of 18 years for an instruction permit or driver's license ~~shall~~ must be signed and verified before a person authorized to administer oaths or an employee or agent of the department by a parent of the applicant or, if none is available, by some other responsible adult who is willing to assume the obligation imposed under this chapter upon a person signing the application of a minor.

(2) Any negligence or willful misconduct of a minor under the age of 18 years when driving a motor vehicle upon a highway ~~shall~~ must be imputed to a person who has signed the application of the minor for a permit or license~~, which~~. The person ~~shall be~~ is jointly and severally liable with the minor for any damages caused by the negligence or willful misconduct unless a motor vehicle liability policy, as provided for in chapter 6 of this title, covering the minor is in effect, in which case there is no imputed liability as described in this section."

Section 6. Section 61-5-111, MCA, is amended to read:

"61-5-111. Renewals, expirations, and fees for licenses, permits, and endorsements -- notice of expiration. (1) The department may appoint county treasurers and other qualified officers to act as its agents for the sale of driver's licenses receipts and shall make necessary rules governing sales. In areas in which the department provides driver licensing services 3 days or more a week, the department is responsible for sale of receipts and may, in its discretion, appoint an agent to sell receipts. The department, upon receipt of payment of the fees specified in this section, shall issue a driver's license to each qualifying applicant. The license must contain a full-face photograph of the licensee in the size and form prescribed by the department; a distinguishing number issued to the licensee; the full name, date of birth, Montana mailing address, and a brief description of the licensee; and either the licensee's signature or a digital reproduction of the licensee's signature. A license is not valid until it is signed by the licensee.

(2) (a) When a person applies for renewal of a driver's license, the department shall test the applicant's eyesight and, in the department's discretion, may have the applicant complete a road test demonstrating the applicant's ability to operate and to exercise ordinary and reasonable care in the operation of a motor vehicle.

(b) In the case of a commercial driver's license, the department may also require that the applicant successfully complete a written examination as required by federal regulations.

(c) A person is considered to have applied for renewal of a Montana driver's license if the application is made within 6 months before or 3 months after the expiration of the person's license.

(d) The department shall mail a driver's license renewal notice no earlier than 60 days and no later than 30 days prior to the expiration date of a commercial driver's license if the licensee has previously submitted a written request for the notice, either at the time of initial application or of renewal of the license.

(3) (a) Except as provided in subsections (3)(b) and (3)(c), a license expires on the anniversary of the licensee's birthday 8 years or less after the date of issue or on the licensee's 75th birthday, whichever occurs first. The department may adopt rules to stagger the implementation of the conversion to an 8-year license cycle over a 4-year period.

(b) A license issued to a person who is 75 years of age or older expires on the anniversary of the licensee's birthday 4 years or less after the date of issue.

(4) Whenever the department issues an original license to a person under the age of 18 years, the license must be designated and clearly marked as a "provisional license". Any license designated and marked as provisional may be suspended by the department for a period of not more than 12 months when its records disclose that the licensee, subsequent to the issuance of the license, has been guilty of careless or negligent driving.

(5) It is unlawful for any person to have in the person's possession or under the person's control more than one valid Montana driver's license at any one time. A license is not valid for the operation of a motorcycle or quadricycle unless the holder of the license has completed the requirements of 61-5-110 and the license has been clearly marked with the words "motorcycle endorsement". A license is not valid for the operation of a commercial vehicle unless the holder of the license has completed the requirements of 61-5-110 and the license has been clearly marked with the words "commercial driver's license".

(6) Fees for driver's licenses are:

(a) driver's license, except a commercial driver's license -- $4 per year or fraction of a year;

(b) motorcycle endorsement -- 50 cents per year or fraction of a year;

(i) interstate -- $5 per year or fraction of a year;

(ii) intrastate -- $3.50 per year or fraction of a year.

(7) The holder of a valid chauffeur's license may convert or renew the chauffeur's license to a commercial driver's license by paying the appropriate fee and complying with the requirements established by the department."

Section 7. Section 61-5-121, MCA, is amended to read:

"61-5-121. Disposition of fees. (1) The disposition of the fees from driver's licenses provided for in 61-5-111(7)(a), motorcycle endorsements provided for in 61-5-111(7)(b), commercial driver's licenses provided for in 61-5-111(7)(c), and duplicate driver's licenses provided for in 61-5-114 is as follows:

(a) The amount of 25% of each driver's license fee and of each duplicate driver's license fee must be deposited into an account in the state special revenue fund. The department shall transfer the funds from this account to the Montana highway patrol officers' retirement pension trust fund as provided in 19-6-404.

(b) (i) If the fees are collected by a county treasurer ~~or other agent of the department~~, the amount of 3.75% of each driver's license fee and of each duplicate driver's license fee must be deposited into the county general fund.

(ii) If the fees are collected by the department or its agent, the amount provided for in subsection (1)(b)(i) must be deposited into the general fund.

(c) (i) If the fee is collected by a county treasurer ~~or other agent of the department~~, the amount of 5% of each motorcycle endorsement must be deposited into the county general fund.

(ii) If the fee is collected by the department or its agent, the amount provided for in subsection (1)(c)(i) must be deposited into the general fund.

(d) The amount of 26.25% of each driver's license fee and of each duplicate driver's license fee must be deposited into the state traffic education account.

(e) In addition to the amounts deposited pursuant to subsections (1)(b)(ii) and (1)(c)(ii), the amount of 54.55% of each driver's license fee and of each duplicate driver's license fee must be deposited into the state general fund.

(f) If the fee is collected by the county treasurer ~~or other agent of the department~~, the amount of 3.75% of each commercial driver's license fee must be deposited into the county general fund~~, otherwise~~. Otherwise, all of the fee must be deposited in the state general fund.

(g) The amount of 95% of each motorcycle endorsement fee must be deposited into the state traffic education account in the state special revenue fund.

(2) (a) If fees from driver's licenses, commercial driver's licenses, motorcycle endorsements, and duplicate driver's licenses are collected by a county treasurer ~~or other agent of the department~~, the county treasurer ~~or agent~~ shall deposit the amounts provided for in subsections (1)(b)(i) and (1)(c)(i) into the county general fund. The county treasurer ~~or agent~~ shall then remit to the state treasurer all remaining fees, together with a statement indicating what portion of each fee is to be deposited into the account in the state special revenue fund as provided in subsection (1)(a) and the state general fund. The state treasurer, upon receipt of the fees and statement, shall deposit the fees as provided in subsections (1)(a) and (1)(d) through (1)(g).

(b) If fees from driver's licenses, commercial driver's licenses, motorcycle endorsements, and duplicate driver's licenses are collected by the department or its agent, ~~it shall remit~~ all fees must be remitted to the state treasurer, together with a statement indicating what portion of each fee is to be deposited into the account in the state special revenue fund as provided in subsection (1)(a), the state special revenue fund, and the state general fund. The state treasurer, upon receipt of the fees and statement, shall deposit the fees as provided in subsections (1)(a), (1)(b)(ii), (1)(c)(ii), and (1)(d) through (1)(g)."

Section 8. Section 61-12-503, MCA, is amended to read:

"61-12-503. Agents for issuance of identification cards. The department ~~shall have authority to~~ may appoint county treasurers ~~and other qualified officers~~ to act as its agents for the issuance of ~~such~~ identification cards. An agent appointed to provide driver's license services as provided in [section 1] may issue identification cards."

NEW SECTION. Section 9. Codification instruction. [Sections 1 through 4] are intended to be codified as an integral part of Title 61, chapter 5, part 1, and the provisions of Title 61, chapter 5, part 1, apply to [sections 1 through 4].

NEW SECTION. Section 10. Effective date. [This act] is effective January 1, 1998.

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