It is enacted by the General Assembly as follows:

SECTION 1. Section 31-47-9 of the General Laws in Chapter 31-47 entitled "Motor Vehicle Reparations Act" is hereby amended to read as follows:

31-47-9. Penalties. -- (a) Any owner of a motor vehicle registered in this state who shall knowingly operate the motor vehicle or knowingly permit it to be operated in this state without having in full force and effect the financial security required by the provisions of this chapter, and any other person who shall operate in this state any motor vehicle registered in this state with the knowledge that the owner thereof does not have in full force and effect financial security, except a person who, at the time of operation of the motor vehicle, had in effect an operator's policy of liability insurance, as defined in this chapter, with respect to his or her operation of the vehicle, may be subject to a mandatory suspension of license and registration as follows: for a first offense a suspension of up to three (3) months and may be fined one hundred dollars ($100) up to five hundred dollars ($500); for a second offense, a suspension of six (6) months; and may be fined five hundred dollars ($500) and for a third and subsequent offense, a suspension of up to one year. Additionally, any person violating this section a third or subsequent time may be guilty of a misdemeanor and, upon conviction, shall be punished as a civil violation and may be fined one thousand dollars ($1,000). and may be imprisoned for one year or both.

(b) An order of suspension and impoundment of a license or registration, or both, shall state that date on or before which the person is required to surrender the person's license or certificate of registration and registration plates. The person is deemed to have surrendered the license or certificate of registration and registration plates, in compliance with the order, if the person does either of the following:

(1) On or before the date specified in the order, personally delivers the license or certificate of registration and registration plates, or causes the delivery of those items, to the assistant director of motor vehicles or court, whichever issued the order;

(2) Mails the license or certificate of registration and registration plates to the assistant director, in an envelope or container bearing a postmark showing a date no later than the date specified in the order.

(c) The registrar shall not restore any operating privileges or registration rights suspended under this section or return any license, certificate of registration, or registration plates impounded under this section unless the rights are not subject to suspension or revocation under any other law and unless the person, in addition to complying with all other conditions required by law for reinstatement of operating privileges or registration rights, complies with all of the following:

(1) Pays a reinstatement fee of thirty dollars ($30.00). The reinstatement fee may be increased, upon approval of the registrar, up to an amount not exceeding fifty dollars ($50.00).

(2) Files and maintains proof of financial security. To facilitate the administration of this chapter the clerk of the courts shall notify the assistant director of all persons against whom judgments have been entered arising out of a motor vehicle collision.

SECTION 2. This act shall take effect upon passage.