Senate File 100 - Introduced SENATE FILE 100 BY ZAUN A BILL FOR An Act relating to the use of revenues from automated traffic 1 law enforcement programs and establishing an uninsured, 2 hit-and-run, and underinsured motor vehicle coverage trust 3 fund. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1845XS (2) 86 ns/nh

S.F. 100 Section 1. Section 331.307, Code 2015, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 14. a. Notwithstanding any other provision 3 of law, civil fines collected by a county from the use of an 4 automated traffic law enforcement system shall be allocated as 5 follows: 6 (1) The amount necessary to satisfy contractual obligations 7 of the county relating to the use of automated traffic law 8 enforcement systems shall be retained by the county for that 9 purpose. 10 (2) Moneys in excess of the amount necessary for the purpose 11 specified in subparagraph (1) shall be forwarded monthly to the 12 treasurer of state for deposit in the uninsured, hit-and-run, 13 and underinsured motor vehicle coverage trust fund created in 14 section 516A.6. 15 b. For purposes of this subsection, “automated traffic law 16 enforcement system” means a device with one or more sensors 17 working in conjunction with a traffic control signal or device 18 or a speed-measuring device to produce recorded images of 19 vehicles being operated in violation of traffic or speed laws. 20 Sec. 2. Section 364.3, subsection 2, Code 2015, is amended 21 to read as follows: 22 2. For a violation of an ordinance , a city shall not 23 provide a penalty in excess of the maximum fine and term of 24 imprisonment for a simple misdemeanor under section 903.1, 25 subsection 1 , paragraph “a” . An Except as otherwise provided 26 in this section, an amount equal to ten percent of all 27 fines collected by cities shall be deposited in the account 28 established in section 602.8108 . However, one 29 a. One hundred percent of all fines collected by a city 30 pursuant to section 321.236, subsection 1 , shall be retained 31 by the city. 32 b. Civil fines collected by a city from the use of an 33 automated traffic law enforcement system shall be allocated as 34 follows: 35 -1- LSB 1845XS (2) 86 ns/nh 1/ 4

S.F. 100 (1) The amount necessary to satisfy contractual obligations 1 of the city relating to the use of automated traffic law 2 enforcement systems shall be retained by the city for that 3 purpose. 4 (2) Moneys in excess of the amount necessary for the purpose 5 specified in subparagraph (1) shall be forwarded monthly to the 6 treasurer of state for deposit in the uninsured, hit-and-run, 7 and underinsured motor vehicle coverage trust fund created in 8 section 516A.6. 9 (3) For purposes of this subsection, “automated traffic law 10 enforcement system” means a device with one or more sensors 11 working in conjunction with a traffic control signal or device 12 or a speed-measuring device to produce recorded images of 13 vehicles being operated in violation of traffic or speed laws. 14 c. The criminal penalty surcharge required by section 911.1 15 shall be added to a city fine and is not a part of the city’s 16 penalty. 17 Sec. 3. NEW SECTION . 516A.6 Uninsured, hit-and-run, and 18 underinsured motor vehicle coverage trust fund. 19 1. An uninsured, hit-and-run, and underinsured motor 20 vehicle coverage trust fund is created in the state treasury 21 under the control of the commissioner of insurance. The 22 fund shall consist of any moneys appropriated by the general 23 assembly and any revenues credited to the fund pursuant to 24 section 331.307, subsection 14, and section 364.3, subsection 25 2. Moneys in the fund are not subject to section 8.33. 26 Notwithstanding section 12C.7, subsection 2, interest or 27 earnings on moneys deposited in the fund shall be credited to 28 the fund. 29 2. Moneys in the uninsured, hit-and-run, and underinsured 30 motor vehicle coverage trust fund shall be used to reimburse 31 insurers for the payment of claims under uninsured or 32 hit-and-run motor vehicle coverage and underinsured motor 33 vehicle coverage issued pursuant to section 516A.1. 34 3. The commissioner of insurance shall administer a 35 -2- LSB 1845XS (2) 86 ns/nh 2/ 4

S.F. 100 program for the reimbursement of insurers for claims paid 1 under uninsured or hit-and-run motor vehicle coverage and 2 underinsured motor vehicle coverage issued pursuant to section 3 516A.1. The commissioner of insurance shall adopt rules 4 establishing a process by which insurers may qualify for and 5 apply for reimbursement from the fund. The commissioner 6 may establish a limit on the amount that may be awarded for 7 reimbursement for any claim in order to make the distribution 8 of reimbursement payments as equitable as possible among 9 eligible insurers. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill creates an uninsured, hit-and-run, and 14 underinsured motor vehicle coverage trust fund under the 15 control of the commissioner of insurance. Moneys in the 16 fund are to be used to reimburse insurers for claims paid 17 under uninsured or hit-and-run motor vehicle coverage and 18 underinsured motor vehicle coverage provided with motor vehicle 19 liability insurance policies. The bill directs the insurance 20 commissioner to adopt administrative rules establishing 21 a process by which insurers may qualify and apply for 22 reimbursement from the fund. In order to make the distribution 23 of payments as equitable as possible among insurers, the 24 commissioner is authorized to establish a limit on the amount 25 of reimbursement allowed for any claim. 26 Under the bill, the source of revenue for the uninsured, 27 hit-and-run, and underinsured motor vehicle coverage trust fund 28 is the revenue derived by cities and counties from automated 29 traffic law enforcement programs. The bill directs that, from 30 the civil fines collected by a city or county from the use of 31 automated traffic law enforcement systems, the amount necessary 32 to satisfy the contractual obligations relating to the use of 33 the systems shall be retained by the city or county. Moneys 34 in excess of that amount are to be forwarded monthly to the 35 -3- LSB 1845XS (2) 86 ns/nh 3/ 4

S.F. 100 treasurer of state for deposit in the uninsured, hit-and-run, 1 and underinsured motor vehicle coverage trust fund. 2 -4- LSB 1845XS (2) 86 ns/nh 4/ 4