MTR VEHICLE/OFFICE: Provides relative to lapses in motor vehicle liability security (EG DECREASE SG RV See Note)

HLS 26RS-744 ENGROSSED
2026 Regular Session
HOUSE BILL NO. 875
BY REPRESENTATIVE PHELPS
MTR VEHICLE/OFFICE: Provides relative to lapses in motor vehicle liability security
1 AN ACT
2 To amend and reenact R.S. 32:863(A)(3)(a), relative to reinstatement fees for lapses in
3 motor vehicle liability security; to provide for a decrease in reinstatement fees for
4 lapses in motor vehicle liability security; to provide for grace periods before the
5 imposition of reinstatement fees for motor vehicle liability security lapses; and to
6 provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 32:863(A)(3)(a) is hereby amended and reenacted to read as follows:
9 §863. Sanctions for false declaration; reinstatement fees; revocation of registration;
10 review
11 A.
12 * * *
13 (3)(a) Sanctions for a violation of Paragraph (1) of this Subsection shall be
14 imposed until proof of required liability security is provided to the secretary and all
15 reinstatement fees are paid. Sanctions for a violation of Paragraph (2) of this
16 Subsection shall be imposed for a period of not less than twelve months nor more
17 than eighteen months. However, in no event shall these sanctions be removed until
18 such time as proof of the required security is provided to the secretary along with all
19 appropriate fees required by law, including a reinstatement fee of one hundred fifty
20 dollars per violation of Paragraph (1) of this Subsection if the vehicle was not
21 covered by the required security for a period of one to thirty days, two hundred fifty
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HLS 26RS-744 ENGROSSED
HB NO. 875
1 dollars if the vehicle was not covered by required security for a period of thirty-one
2 to ninety days, and five four hundred fifty dollars if the vehicle was not covered by
3 required security for a period in excess of ninety days. No reinstatement fee shall
4 be imposed by the secretary if the vehicle was not covered by required security for
5 a period of ten days or less and the insured surrenders the vehicle's license plate to
6 the secretary within ten days or if the violation is the insured's first violation pursuant
7 to Paragraph (1) of this Subsection and the lapse of insurance coverage was for ten
8 thirty days or less, provided that immediate notice of the cancellation is given within
9 one to five days before issuing the violation. Any subsequent violation pursuant to
10 Paragraph (1) of this Subsection and the lapse of insurance coverage was for ten days
11 or less shall not require a reinstatement fee, provided that immediate notice of the
12 cancellation is given within one to five days before issuing the violation. In addition,
13 notice shall be transmitted to the insured through any digitized credentials
14 established pursuant to R.S. 39:17.2(D) within one to five days before issuing the
15 violation. The reinstatement fees for violations of Paragraph (2) of this Subsection
16 shall be as follows: two hundred fifty dollars for a first violation, five hundred
17 dollars for a second violation, and one thousand dollars for a third or subsequent
18 violation. The reinstatement fee shall not be owed for an alleged violation of
19 Paragraph (2) of this Subsection when proof of the required security is provided to
20 the secretary within sixty days of the date of the notice. If at the time of
21 reinstatement, a person has multiple violations and is within sixty days of the notice,
22 the total amount of fees to be paid shall not exceed eight hundred fifty dollars for
23 violations of Paragraph (1) of this Subsection and one thousand seventy-five dollars
24 for violations of Paragraph (2) of this Subsection. At no time shall the total amount
25 of fees, including administrative fees, exceed two hundred fifty dollars for persons
26 sixty-five years or older. After sixty days of the date of the notice, all fees shall be
27 considered final delinquent debt and therefore owed, and the eight-hundred-fifty-
28 dollar limit for persons under sixty-five years shall no longer apply.
29 * * *
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HB NO. 875
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 875 Engrossed 2026 Regular Session Phelps
Abstract: Decreases reinstatement fees and modifies the grace periods applicable to lapses
in motor vehicle liability security.
Present law requires a reinstatement fee for a lapse in vehicle security be $100 per violation
for lapses in coverage between one to 30 days; a reinstatement fee of $250 for lapses in
coverage between 31 to 90 days; and $500 for lapses in coverage in excess of 90 days.
Proposed law modifies present law by decreasing a reinstatement fee for a lapse in vehicle
security from $100 to $50 per violation for lapses in coverage between one to 30 days; a
reinstatement fee from $250 to $200 for lapses in coverage between 31 to 90 days; and from
$500 to $450 for lapses in coverage in excess of 90 days.
Present law prohibits a reinstatement fee from being imposed by the secretary if the vehicle
was not covered by required security for 10 days or less and the insured surrenders the
vehicle's license plate to the secretary within 10 days or if the violation is the insured's first
violation pursuant to present law and the lapse of insurance coverage was for 10 days or less,
provided that immediate notice of the cancellation is given within one to five days before
issuing the violation.
Proposed law increases the grace period before the imposition of a reinstatement fee for
lapses in security from 10 days or less to 30 days or less for first offense violation. Further
requires that any subsequent violation have grace period of at least 10 days prior to the
imposition of a reinstatement fee.
(Amends R.S. 32:863(A)(3)(a))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Transportation,
Highways and Public Works to the original bill:
1. Allows for a 30 day grace period of lapses in vehicle liability security for first
offense violations.
2. Includes a 10 day grace period for any subsequent violation for lapses in vehicle
liability security.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.