§ 42-7-406 — Proof required under certain conditions

(1) Whenever the
director revokes the license of any person pursuant to section 42-2-125 or 42-2-126, or cancels any license pursuant to section 42-2-122 because of the licensee's
inability to operate a motor vehicle because of physical or mental incompetence, or
cancels any probationary license pursuant to section 42-2-127, the director shall
not issue to or continue in effect for any such person any new or renewal of license
until permitted under the motor vehicle laws of this state, and not then until and
unless such person files or has filed and maintains proof of financial responsibility
as provided in this article 7; except that persons whose licenses are canceled
pursuant to section 42-2-122 (2.5) or revoked for a first offense pursuant to section
42-2-125 (1)(g.5) or a first offense pursuant to section 42-2-126 (3)(b) or (3)(e) are
not be required to file proof of financial responsibility in order to be relicensed.

(1.5) (a) Whenever the director revokes the license of a person under section
42-2-126 (3)(a), (3)(c), or (3)(d) for a second or subsequent offense and such person
was driving the same vehicle in two or more of such offenses but did not own such
vehicle, the director shall mail a notice to the owner of the vehicle pursuant to
section 42-2-119 (2). In such notice, the director shall inform the owner that:

(I) The operator of the motor vehicle owned by the owner has been involved
in multiple alcohol-related driving violations while operating the owner's vehicle;

(II) Because of the risks to the public connected with the use of the vehicle in
alcohol-related driving violations, it is necessary for the motor vehicle owner to
establish proof of financial responsibility;

(III) Within thirty days after the date of mailing of the notice, the owner is
required to file proof of financial responsibility for the future pursuant to the
requirements of section 42-7-408 or to request a hearing regarding the
applicability of this requirement to the owner;

(IV) The vehicle owner is entitled to a hearing and judicial review pursuant to
section 42-7-201;

(V) If the owner has not filed proof of financial responsibility or requested a
hearing within thirty days after the date of mailing of the notice, the department
will suspend the driver's license or nonresident operating privilege of the owner.

(b) If proof of financial responsibility for the future is required under this
subsection (1.5), such proof shall be maintained for a period of three years as
required by section 42-7-408 (1)(b).

(c) This subsection (1.5) does not apply to a motor vehicle that is:

(I) Rented from a person, firm, corporation, or other business entity whose
primary business is the rental of motor vehicles; or

(II) Rented or loaned from a person, firm, corporation, or other business
entity whose primary business is operation as a motor vehicle repair facility and
who is providing such motor vehicle to the person while a motor vehicle is being
repaired.

(2) (a) Whenever the director suspends the license of any person under
section 42-2-127, the director shall not issue a probationary license to such person,
nor shall the director at the termination of such person's period of suspension
reinstate, reissue, renew, or issue a new license to such person unless such person
furnishes the director evidence of insurance to show that the person is then insured,
unless such person has deposited or deposits money or securities as provided in
section 42-7-418.

(b) Evidence of insurance required pursuant to this subsection (2) does not
require the use of the form known as the SR-22 or any substantially similar form.

Legislative History

Source: L. 94: Entire title amended with relocations, p. 2481, � 1, effective January 1, 1995. L. 95: Entire section amended, p. 709, � 5, effective May 23. L. 97: (1) amended, p. 1536, � 1, effective July 1; (1) amended, p. 1388, � 9, effective July 1; (1) amended, p. 1469, � 16, effective July 1. L. 98: (1) amended, p. 1436, � 9, effective July 1; (1.5) added, p. 1241, � 7, effective July 1. L. 99: (1) amended, p. 392, � 4, effective July 1. L. 2002: (1) amended, p. 1586, � 20, effective July 1. L. 2003: (1) amended, p. 1905, � 6, effective July 1. L. 2008: (1) and IP(1.5)(a) amended, p. 254, � 24, effective July 1. L. 2009: (1) amended, (HB 09-1266), ch. 347, p. 1821, � 15, effective August 5. L. 2021: (1) amended, (HB 21-1314), ch. 460, p. 3101, � 17, effective January 1, 2022.