An amendment bill for the Shanghai Road and Traffic Management Regulation concerning motorists who trade license demerits was released on Tuesday, July 26, Shanghai Daily reported.
Under the new amendment submitted to the Shanghai People's Congress for evaluation, drivers who trade driving license demerits will face a fine ranging from 2,000 yuan to 20,000 yuan ($2,994), while those who take demerits for others will be fined 1,000 to 5,000 yuan and face suspension of their driving licenses for up to three months.
The amendment bill also stipulates that all the profits earned from illicit trading will be confiscated.
According to the Shanghai police, the trading of demerits is widespread among erring drivers to avoid losing the 12 points from traffic violations in the city's license demerit system. Under the system, a driver who loses all his points within a year will undergo a seven-day training course and pass the driving test to recover his license.
The amendment was made as the current traffic regulation, which was passed in 1997, does not sufficiently cover the illegal trade.
In May, five people were detained by police in the Pudong New Area after they were caught trading driving license demerits online.
Chen Jing, deputy secretary general of the city government, told legislators that aside from the crackdown on the illegal trade, the new bill also hopes to impose tougher penalties for violators while promoting sustainable public transportation.
"Though the regulation was amended in 1999, 2000 and 2001, it can no longer meet the management demands for the current traffic and population conditions of Shanghai," Chen said, noting that traffic congestion in the city is worsening with the ever growing number of vehicles on the road.
Under the new draft, the issuance of car plates will also be limited by government to control the number of vehicles on the road.
Temporary car plates that are valid for up to three months will now expire after 30 days.
Chen said this was done to encourage people to apply for a license plate first before they purchase a vehicle.
Vehicles left on roadsides, or "zombie vehicles" are also banned under the amendment as well as the use of horns within the Outer Ring Road.
The local government also urged the public to take videos of traffic violations and encourage them to submit the videos to the traffic police.
Drivers who lose all the 12 points on their license within a year will be recorded in their personal credit information, and may be taken into consideration when they apply for bank loans.
Local companies will also be required to adjust working hours and allow employees to work at home as well as encourage the use of electric vehicles and bicycles to promote green transportation.