Attorney General No.


Secretary of State No.



FINANCIAL RESPONSIBILITY EVIDENCE. REPEAL OF LAW. INITIATIVE STATUTE. This initiative repeals the "ROBBINS MC ALISTER FINANCIAL RESPONSIBILITY ACT." The Robbins-McAlister Financial Responsibility Act requires each motor vehicle driver to have, and under specified conditions produce, evidence of financial responsibility for the vehicle, meaning proof of liability insurance, a surety bond, self insurance or other specified means of financial responsibility, meeting certain requirements. The act also contains other provisions. This initiative declares automobile insurance is to be no longer mandatory and that a person's drivers license shall never be suspended for any cause except unsafe driving. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Annual gross insurance premium tax revenues could be reduced by about $2 million. This fiscal effect may vary significantly, up or down, depending on the cost of insurance coverage for financial responsibility and motorists' reaction to the repeal. Department of Motor Vehicles would have a net revenue loss of about $1 million, accruing to the State Transportation Fund's Motor Vehicle Account. Medi-Cal costs could increase by an unknown amount because of medical costs for eligible persons injured in accidents by uninsured motorists. Municipal courts would probably experience reduction in administrative costs, with a corresponding reduction in penalty and assessment revenues.


Tennie B. Rogers, Post Office Box 91603, Pasadena, California 91109



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