HB 582

HLS 26RS-746  REENGROSSED
 2026 Regular Session
 HOUSE BILL NO. 582
 BY REPRESENTATIVE BAYHAM
 MTR VEHICLE/OFFICE: Provides relative to reinstatement fees for lapses of vehicle
  liability security
1AN ACT
2 To amend and reenact R.S. 32:863(A)(3)(a), relative to reinstatement fees for the lapse of
3vehicle liability security; to provide for a decrease in reinstatement fees for lapse of
4vehicle liability security coverage; to increase the grace period prior to the
5imposition of reinstatement fees; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7Section 1. R.S. 32:863(A)(3)(a) is hereby amended and reenacted to read as follows:
8§863. Sanctions for false declaration; reinstatement fees; revocation of registration;
9review
10A.
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12(3)(a) Sanctions for a violation of Paragraph (1) of this Subsection shall be
13imposed until proof of required liability security is provided to the secretary and all
14reinstatement fees are paid. Sanctions for a violation of Paragraph (2) of this
15Subsection shall be imposed for a period of not less than twelve months nor more
16than eighteen months. However, in no event shall these sanctions be removed until
17such time as proof of the required security is provided to the secretary along with all
18appropriate fees required by law, including a reinstatement fee of one hundred
19dollars per violation of Paragraph (1) of this Subsection if the vehicle was not
20covered by the required security for a period of one to thirty days, two hundred fifty
21dollars if the vehicle was not covered by required security for a period of thirty-one
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 HLS 26RS-746  REENGROSSED
  HB NO. 582
1to ninety days, and five hundred dollars if the vehicle was not covered by required
2security for a period in excess of ninety days. No reinstatement fee shall be imposed
3by the secretary if the vehicle was not covered by required security for a period of
4ten fifteen days or less and the insured surrenders the vehicle's license plate to the
5secretary within ten fifteen days or if the violation is the insured's first violation
6pursuant to Paragraph (1) of this Subsection and the lapse of insurance coverage was
7for ten fifteen days or less, provided that immediate notice of the cancellation is
8given within one to five days before issuing the violation. A reinstatement fee of
9fifty dollars shall be imposed if the vehicle was not covered by the required security
10for a period of sixteen to thirty days provided the violation is the insured's first
11violation pursuant to Paragraph (1) of this Subsection and immediate notice of the
12cancellation is given within one to five days before issuing the violation. In addition,
13notice shall be transmitted to the insured through any digitized credentials
14established pursuant to R.S. 39:17.2(D) within one to five days before issuing the
15violation. The reinstatement fees for violations of Paragraph (2) of this Subsection
16shall be as follows: two hundred fifty dollars for a first violation, five hundred
17dollars for a second violation, and one thousand dollars for a third or subsequent
18violation. The reinstatement fee shall not be owed for an alleged violation of
19Paragraph (2) of this Subsection when proof of the required security is provided to
20the secretary within sixty days of the date of the notice.  If at the time of
21reinstatement, a person has multiple violations and is within sixty days of the notice,
22the total amount of fees to be paid shall not exceed eight hundred fifty dollars for
23violations of Paragraph (1) of this Subsection and one thousand seventy-five dollars
24for violations of Paragraph (2) of this Subsection. At no time shall the total amount
25of fees, including administrative fees, exceed two hundred fifty dollars for persons
26sixty-five years or older. After sixty days of the date of the notice, all fees shall be
27considered final delinquent debt and therefore owed, and the eight-hundred-fifty-
28dollar limit for persons under sixty-five years shall no longer apply.
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HLS 26RS-746  REENGROSSED
  HB NO. 582
  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 582 Reengrossed  2026 Regular Session  Bayham
Abstract: Decreases reinstatement fees for lapse of vehicle liability security coverage and
  increases the grace period prior to the imposition of reinstatement fees.
Present law requires a reinstatement fee for a lapse in vehicle liability security as follows:
$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.
Present law provides a grace period where reinstatement fees will not apply if the vehicle
was uninsured for 10 days or less and the insured surrenders the license plate to the office
of motor vehicles within 10 days or if the violation is the insured's first violation, provided
immediate notice of cancellation was given within one to five days before issuing the
violation.
Proposed law extends the grace period in present law, prohibiting the imposition of
reinstatement fees for the lapse of insurance coverage, from 10 days or less to 15 days or
less, and applies the same period to the surrender requirement or if the violation is the
insured's first violation, provided immediate notice of cancellation was given within one to
five days before issuing the violation.
Proposed law requires a $50 reinstatement fee be imposed if the vehicle was not covered by
the required security for a period of 16 to 30 days provided the violation is the insured's first
violation and immediate notice of the cancellation is given within one to five days before
issuing the violation.
(Amends R.S. 32:863(A)(3)(a))
Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1.      Restore present law regarding the reinstatement fee amounts for lapses of vehicle
  liability security coverage for periods of one to thirty days, thirty-one to ninety
  days, and in excess of ninety days.
2.      Add a requirement that a $50 reinstatement fee be imposed if the vehicle was not
  covered by the required security for a period of sixteen to thirty days provided
  the violation is the insured's first violation and immediate notice of the
  cancellation is given within one to five days before issuing the violation.
3.      Make a technical change.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.