Senate File 2011 - Introduced SENATE FILE BY PUTNEY Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act requiring proof of financial liability coverage upon 2 application for a certificate of title and providing 3 penalties. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5171XS 82 6 md/nh/5 PAG LIN 1 1 Section 1. Section 321.20, subsection 1, Code 2007, is 1 2 amended by adding the following new paragraph: 1 3 NEW PARAGRAPH. g. A statement of the applicant certifying 1 4 that financial liability coverage is in effect for the motor 1 5 vehicle as required by section 321.21. The applicant shall 1 6 also provide a description of the financial liability coverage 1 7 as noted on the proof of financial liability coverage card 1 8 issued for the motor vehicle. 1 9 Sec. 2. NEW SECTION. 321.21 PROOF OF FINANCIAL LIABILITY 1 10 COVERAGE REQUIRED FOR ISSUANCE OF MOTOR VEHICLE TITLE == 1 11 PENALTIES. 1 12 1. A motor vehicle shall not be titled unless financial 1 13 liability coverage is in effect for the motor vehicle at the 1 14 time the application for the certificate of title is 1 15 submitted. This section shall apply to all certificates of 1 16 title issued by the department or by a county treasurer, 1 17 including but not limited to amended, modified, or replacement 1 18 certificates of title. 1 19 2. The owner of the motor vehicle shall provide a 1 20 description of the financial liability coverage as noted on 1 21 the proof of financial liability coverage card issued for the 1 22 motor vehicle as provided in section 321.20, subsection 1. 1 23 The department may require that the owner's insurance company 1 24 verify that the financial liability coverage is in effect for 1 25 the motor vehicle at the time of application for certificate 1 26 of title. 1 27 3. A person who falsely certifies as to financial 1 28 liability coverage required under this section commits a 1 29 simple misdemeanor. 1 30 Sec. 3. Section 321.30, subsection 1, Code Supplement 1 31 2007, is amended by adding the following new paragraph: 1 32 NEW PARAGRAPH. m. If the owner does not provide 1 33 satisfactory proof that financial liability coverage is in 1 34 effect for the motor vehicle as required by section 321.21. 1 35 EXPLANATION 2 1 This bill requires an applicant for a motor vehicle 2 2 certificate of title to provide proof that financial liability 2 3 coverage is in effect for the motor vehicle at the time the 2 4 application for certificate of title is submitted. The 2 5 applicant must also provide a description of the financial 2 6 liability coverage as noted on the proof of financial 2 7 liability coverage card issued for the motor vehicle. The 2 8 financial liability coverage must meet the definitional 2 9 requirements under Code section 321.1, subsection 24B. 2 10 The department of transportation or the county treasurer 2 11 shall refuse to issue the certificate of title if proof of 2 12 financial liability coverage is insufficient in the 2 13 application. The financial liability coverage requirement of 2 14 new Code section 321.21 applies to all certificates of title 2 15 issued by the department or by a county treasurer, including 2 16 but not limited to amended, modified, or replacement 2 17 certificates of title. 2 18 The bill provides that the owner of a motor vehicle commits 2 19 a simple misdemeanor if the owner falsely certifies as to 2 20 financial liability coverage required for the issuance of a 2 21 certificate of title. A simple misdemeanor is punishable by 2 22 confinement for no more than 30 days and a fine of at least 2 23 $65 but not more than $625, or both. 2 24 LSB 5171XS 82 2 25 md/nh/5