Amends existing law to revise the amount of required motor vehicle insurance relating to property damage.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 770 BY WAYS AND MEANS COMMITTEE AN ACT1 RELATING TO MOTOR VEHICLE FINANCIAL RESPONSIBILITY; AMENDING SECTION2 49-117, IDAHO CODE, TO REVISE THE AMOUNT OF REQUIRED MOTOR VEHICLE IN-3 SURANCE RELATING TO PROPERTY DAMAGE; AMENDING SECTION 49-1229, IDAHO4 CODE, TO REVISE THE AMOUNT OF REQUIRED MOTOR VEHICLE INSURANCE RELATING5 TO PROPERTY DAMAGE; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFEC-6 TIVE DATE.7

Be It Enacted by the Legislature of the State of Idaho:8

SECTION 1. That Section 49-117, Idaho Code, be, and the same is hereby9 amended to read as follows:10 49-117. DEFINITIONS -- P. (1) "Park" or "parking" means the standing11 of a vehicle, whether occupied or not, other than temporarily for the pur-12 pose of and while actually engaged in loading or unloading property or pas-13 sengers.14 (2) "Park model recreational vehicle" means a recreational vehicle15 that is designed to provide temporary accommodations for recreational,16 camping or seasonal use, is built on a single chassis, was originally mounted17 on wheels, has a gross trailer area not exceeding four hundred (400) square18 feet in the set-up mode and is certified by its manufacturer as complying19 with the American National Standards Institute (ANSI) A119.5 Standard for20 Recreational Park Trailers, and includes park models, park trailers and21 recreational park trailers.22 (3) "Part-time salesman" means any person employed as a vehicle sales-23 man on behalf of a dealer fewer than thirty (30) hours per week.24 (4) "Peace officer." (See section 19-5101(d), Idaho Code)25 (5) "Pedestrian" means any person afoot and any person operating a26 wheelchair or a motorized wheelchair or an electric personal assistive mo-27 bility device.28 (6) "Pedestrian path" means any path, sidewalk or way set aside and used29 exclusively by pedestrians.30 (7)(a) "Person" means every natural person, firm, fiduciary, copart-31 nership, association, corporation, trustee, receiver or assignee for32 the benefit of creditors, political subdivision, state or federal gov-33 ernmental department, agency, or instrumentality and, for the purposes34 of chapter 22, title 49, Idaho Code, shall include a private, common or35 contract carrier operating a vehicle on any highway of this state.36 (b) "Person with a disability" means:37 (i) A person who is unable to walk two hundred (200) feet or more38 unassisted by another person;39 (ii) A person who is unable to walk two hundred (200) feet or more40 without the aid of a walker, cane, crutches, braces, prosthetic41 device or a wheelchair; or42

2 (iii) A person who is unable to walk two hundred (200) feet or1 more without great difficulty or discomfort due to the following2 impairments: neurological, orthopedic, respiratory, cardiac,3 arthritic disorder, blindness, or the loss of function or absence4 of a limb.5 (iv) For the purposes of chapters 3 and 4, title 49, Idaho Code,6 a person with a permanent disability is one whose physician certi-7 fies that the person qualifies as a person with a disability pur-8 suant to this paragraph and further certifies that there is no ex-9 pectation for a fundamental or marked change in the person's con-10 dition at any time in the future.11 (8) "Personal delivery device" means an electrically powered device12 that is operated on sidewalks, crosswalks, and the sides or berms of high-13 ways and is intended primarily to transport property; weighs less than five14 hundred fifty (550) pounds, excluding cargo; operates at a maximum speed of15 ten (10) miles per hour when on sidewalks; and is equipped with technology to16 allow for operation of the device with or without the active control or moni-17 toring of a natural person. A personal delivery device shall not be defined18 as a vehicle or motor vehicle in any section of the law, unless expressly so19 stated.20 (9) "Personal delivery device operator" means an entity or its agent21 that exercises direct physical control or monitoring over the navigation22 system and operation of a personal delivery device. For the purposes of this23 subsection, the term "agent" means a person charged by the entity with the24 responsibility of navigating, monitoring, or operating the personal deliv-25 ery device. The term "personal delivery device operator" does not include26 an entity or person who requests the services of a personal delivery device27 for the purpose of transporting property or an entity, nor does it include28 a person who merely arranges for and dispatches the requested services of a29 personal delivery device.30 (10) "Personal information" means information that identifies an indi-31 vidual, including an individual's photograph or computerized image, social32 security number, driver identification number, name, address, telephone33 number, and medical or disability information, but does not include infor-34 mation on vehicular accidents, driving or equipment-related violations,35 the five-digit zip code of the person's address, or status of the driver's36 license or motor vehicle registration.37 (11) "Pneumatic tire." (See "tires," section 49-121, Idaho Code)38 (12) "Pole trailer." (See "trailer," section 49-121, Idaho Code)39 (13) "Possessory lien" means a lien dependent upon possession for com-40 pensation to which a person is legally entitled for making repairs or per-41 forming labor upon, and furnishing supplies or materials for, and for the42 towing, storage, repair, or safekeeping of any vehicle of a type subject to43 registration.44 (14) "Possessory lienholder" means any person claiming a lien, which45 lien claimed to have accrued on a basis of services rendered to the vehicle46 that is the subject of the lien.47 (15) "Preceding year" means, for the purposes of section 49-434, Idaho48 Code, a period of twelve (12) consecutive months fixed by the department,49 prior to July 1 of the year immediately preceding the commencement of the50

3 registration or license year for which proportional registration is sought.1 The department in fixing the period shall make it conform to the terms, con-2 ditions and requirements of any applicable agreement or arrangement for the3 proportional registration of vehicles.4 (16) "Pressure regulator valve" means a device or system that governs5 the load distribution and controls the weight borne by a variable load sus-6 pension axle in accordance with a predetermined valve setting.7 (17) "Principal place of business" means an enclosed commercial struc-8 ture located within the state, easily accessible and open to the public at9 all reasonable times, with an improved display area large enough to display10 five (5) or more vehicles of the type the dealer is licensed to sell, imme-11 diately adjoining the building, and at which the business of a dealership,12 including the display and repair of vehicles, may be lawfully carried on13 in accordance with the terms of all applicable building codes, zoning and14 other land-use regulatory ordinances, and in which building the public shall15 be able to contact the dealer or his salesmen in person or by telephone at16 all reasonable times. The books, records and files necessary to conduct17 the business of the dealership must be kept or reproduced electronically at18 the dealership's licensed location(s). A dealership keeping its physical19 books, records and files at an off-site location must notify the department20 in writing of such location at least thirty (30) days in advance of moving21 such books, records and files off-site. Physical books, records and files22 must be made available to the department upon request within three (3) busi-23 ness days of such request. The principal place of business shall display24 an exterior sign permanently affixed to the land or building, with letters25 clearly visible to the major avenue of traffic. In no event shall a room or26 rooms in a hotel, rooming house, or apartment house building or a part of any27 single or multiple unit dwelling house be considered a "principal place of28 business" within the terms and provisions of this title unless the entire29 ground floor of that hotel, apartment house, or rooming house building or30 dwelling house be devoted principally to and occupied for commercial pur-31 poses, and the office or offices of the dealer be located on the ground floor.32 (18) "Private property open to the public" means real property not owned33 by the federal government or the state of Idaho or any of its political sub-34 divisions, but is available for vehicular traffic or parking by the general35 public with the permission of the owner or agent of the real property.36 (19) "Private road" means every way or place in private ownership and37 used for vehicular travel by the owner and those having express or implied38 permission from the owner, but not by other persons.39 (20) "Proof of financial responsibility" means proof of ability to re-40 spond in damages for liability, on account of accidents occurring subsequent41 to the effective date of the proof, arising out of the ownership, mainte-42 nance or use of a motor vehicle, in the amount of twenty-five thousand dol-43 lars ($25,000) because of bodily injury to or death of one (1) person in any44 one (1) accident and, subject to the limit for one (1) person, in the amount45 of fifty thousand dollars ($50,000) because of bodily injury to or death of46 two (2) or more persons in any one (1) accident, and in the amount of fifteen47 thousand dollars ($15,000) twenty-five thousand dollars ($25,000) because48 of injury to or destruction of property of others in any one (1) accident.49 (21) "Proper authority" means a public highway agency.50

4 (22) "Public highway agency" means the state transportation depart-1 ment, any city, county, highway district or any other state agency that has2 jurisdiction over public highway systems and public rights-of-way.3 (23) "Public right-of-way" means a right-of-way open to the public and4 under the jurisdiction of a public highway agency, where the public highway5 agency has no obligation to construct or maintain said right-of-way for ve-6 hicular traffic.7 (24) "Public road jurisdiction" means a public highway agency.8 (25) "Purchase." (See "sell," "sold," and "buy," section 49-120, Idaho9 Code)10

SECTION 2. That Section 49-1229, Idaho Code, be, and the same is hereby11 amended to read as follows:12 49-1229. REQUIRED MOTOR VEHICLE INSURANCE. (1) Every owner of a mo-13 tor vehicle which is registered and operated in Idaho by the owner or with14 his permission shall continuously, except as provided in section 41-2516,15 Idaho Code, provide insurance against loss resulting from liability imposed16 by law for bodily injury or death or damage to property suffered by any per-17 son caused by maintenance or use of motor vehicles described therein in an18 amount not less than that required by section 49-117, Idaho Code, and shall19 demonstrate the existence of any other coverage required by this title or a20 certificate of self-insurance issued by the department pursuant to section21 49-1224, Idaho Code, for each motor vehicle to be registered.22 (2) A motor vehicle owner who prefers to post an indemnity bond with the23 director of the department of insurance in lieu of obtaining a policy of lia-24 bility insurance may do so. Such bond shall guarantee that any loss result-25 ing from liability imposed by law for bodily injury, death or damage to prop-26 erty suffered by any person caused by accident and arising out of the opera-27 tion, maintenance and use of the motor vehicle sought to be registered shall28 be paid within thirty (30) days. The indemnity bonds shall guarantee payment29 in an amount no less than fifty thousand dollars ($50,000) for any one (1)30 accident of which fifteen thousand dollars ($15,000) twenty-five thousand31 dollars ($25,000) is for property damage, for each vehicle registered up to32 a maximum of one hundred twenty thousand dollars ($120,000) for five (5) or33 more vehicles.34 (3) Any bond given in connection with this chapter shall be, and shall35 be construed to be, a continuing instrument and shall cover the period for36 which the motor vehicle is to be registered and operated. Such bond shall be37 on a form approved by the director of insurance with a surety company autho-38 rized to do business in the state.39 (4) A motor carrier shall continuously provide insurance against loss40 resulting from liability imposed by law or by rule of the department and41 shall comply with the insurance requirements of section 49-1233, Idaho Code.42 (5) It is an infraction punishable by a fine of seventy-five dollars43 ($75.00) for any person to violate the provisions of this section for the44 first time. A second and any subsequent conviction for a violation of the45 provisions of this section or the provisions of section 49-1232 or 49-1428,46 Idaho Code, within a period of five (5) years shall be a misdemeanor, punish-47 able by a fine not exceeding one thousand dollars ($1,000), or by imprison-48 ment in the county jail not exceeding six (6) months, or both. The depart-49

5 ment shall notify any person convicted of a violation of this section of the1 penalties which may be imposed for a second and any subsequent conviction.2

SECTION 3. An emergency existing therefor, which emergency is hereby3 declared to exist, this act shall be in full force and effect on and after4 July 1, 2026.5