Text: SSB00178                          Text: SSB00180
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Senate Study Bill 179

Conference Committee Text

PAG LIN
  1  1    Section 1.  Section 321.1, Code 1995, is amended by adding
  1  2 the following new subsections:
  1  3    NEW SUBSECTION.  34A.  "Liability insurance coverage" means
  1  4 any of the following:
  1  5    a.  An owner's policy of liability insurance which is
  1  6 issued by an insurance carrier authorized to do business in
  1  7 Iowa to or for the benefit of the person named in the policy
  1  8 as insured, and insuring the person named as insured and any
  1  9 person using an insured motor vehicle with the express or
  1 10 implied permission of the named insured against loss from
  1 11 liability imposed by law for damages arising out of the
  1 12 ownership, maintenance, or use of an insured motor vehicle
  1 13 within the United States of America or Canada, but subject to
  1 14 minimum limits, exclusive of interest and costs, in the
  1 15 amounts specified in section 321A.21 or specified in another
  1 16 provision of the Code, whichever is greater.
  1 17    b.  A bond filed with the department pursuant to section
  1 18 321A.24.
  1 19    c.  A valid certificate of deposit of money or security
  1 20 issued by the treasurer of state pursuant to section 321A.25.
  1 21    d.  A valid certificate of self-insurance issued by the
  1 22 department pursuant to section 321A.34.
  1 23    NEW SUBSECTION.  54A.  "Proof of insurance card" means
  1 24 either a liability insurance card issued under section
  1 25 321.20A, a bond insurance card issued under section 321A.24, a
  1 26 security insurance card issued under section 321A.25, or a
  1 27 self-insurance card issued under section 321A.34.
  1 28    Sec. 2.  Section 321.20, Code 1995, is amended by adding
  1 29 the following new subsection:
  1 30    NEW SUBSECTION.  6.  Proof of liability insurance coverage
  1 31 if the registration is for a motor vehicle.
  1 32    Sec. 3.  NEW SECTION.  321.20A  PROOF OF SECURITY AGAINST
  1 33 LIABILITY.
  1 34    1.  Notwithstanding chapter 321A, which requires certain
  1 35 persons to maintain proof of financial responsibility, a
  2  1 person shall not drive a motor vehicle which is registered in
  2  2 this state on the highways of this state unless liability
  2  3 insurance coverage as defined in section 321.1 is in effect
  2  4 for the motor vehicle and unless the driver has in the motor
  2  5 vehicle the proof of insurance card issued for the motor
  2  6 vehicle.
  2  7    2.  The department shall not register a motor vehicle or
  2  8 issue a registration certificate or registration plates unless
  2  9 the applicant has submitted proof of liability insurance
  2 10 coverage.
  2 11    3.  An insurance company transacting business in this state
  2 12 shall issue to its insured owners of motor vehicles registered
  2 13 in this state a liability insurance card for each registered
  2 14 motor vehicle insured.  Each liability insurance card shall
  2 15 identify the registration number of the motor vehicle insured
  2 16 and shall indicate the expiration date of the applicable
  2 17 insurance coverage.  The liability insurance card shall also
  2 18 contain the name and address of the insured and insurer, the
  2 19 type of coverage provided, and an emergency telephone number
  2 20 of the insurer.
  2 21    4.  If the liability insurance coverage for a motor vehicle
  2 22 which is registered in this state is canceled or terminated
  2 23 effective prior to the expiration date indicated on the
  2 24 liability insurance card issued for the vehicle, the person to
  2 25 whom the liability insurance card was issued shall return the
  2 26 liability insurance card to the insurer which issued the card.
  2 27    5.  An insurance company transacting business in this state
  2 28 shall notify the state department of transportation and the
  2 29 sheriff of the county in which the motor vehicle is registered
  2 30 of a cancellation of an insurance policy issued to an owner of
  2 31 a motor vehicle registered in this state within forty-five
  2 32 days after the policy's cancellation.  The notification shall
  2 33 be in a manner prescribed by the commissioner of insurance
  2 34 after consultation with the state department of
  2 35 transportation.
  3  1    6.  The arresting officer shall remove the registration
  3  2 plates from, and impound a motor vehicle which has been
  3  3 operated on the highways of this state without liability
  3  4 insurance coverage being in effect for the motor vehicle, and
  3  5 remove the registration plates from any other vehicle
  3  6 registered to the person in violation of this section for
  3  7 which the person is unable to show proof of liability
  3  8 insurance coverage.  The plates shall be returned to the owner
  3  9 upon submission of proof of liability insurance coverage and
  3 10 payment of a twenty-five dollar redemption fee to the city or
  3 11 county which removed the plates.
  3 12    7.  An owner or driver of a motor vehicle who is charged
  3 13 with violating subsection 1 shall not be convicted if the
  3 14 person produces in court, within twenty-four hours of the time
  3 15 the person is charged, proof that liability insurance coverage
  3 16 was in effect for the motor vehicle at the time of the
  3 17 person's arrest.
  3 18    8.  The director of transportation and the commissioner of
  3 19 insurance shall adopt rules pursuant to chapter 17A to
  3 20 administer this section.
  3 21    Sec. 4.  NEW SECTION.  321.20B  RECOVERY OF VEHICLE &endash; FEE.
  3 22    A vehicle impounded pursuant to section 321.20A shall
  3 23 remain impounded and a storage cost shall be assessed against
  3 24 the owner until such time as the owner complies with the
  3 25 requirements of that section.  Additionally, the owner shall
  3 26 pay a twenty-five dollar redemption fee to the county for each
  3 27 set of registration plates removed by the arresting officer
  3 28 pursuant to section 321.20A.
  3 29    A vehicle which remains unclaimed for a period of ninety
  3 30 days after impoundment shall become the property of the city
  3 31 or county impounding the vehicle.  The city or county may
  3 32 dispose of such vehicles at public auction or through a sealed
  3 33 bid process to the highest bidder.  Any amount received from
  3 34 the sale of the vehicles shall be retained by the impounding
  3 35 city or county.
  4  1    Sec. 5.  Section 321.24, Code 1995, is amended by adding
  4  2 the following new unnumbered paragraph:
  4  3    NEW UNNUMBERED PARAGRAPH.  Before issuing a registration
  4  4 for a motor vehicle, the county treasurer shall verify that
  4  5 the applicant has submitted proof of liability insurance
  4  6 coverage as required under section 321.20A.  If proof is not
  4  7 submitted, registration shall not be issued.  Proof of
  4  8 liability insurance coverage is not required for issuance of a
  4  9 certificate of title.
  4 10    Sec. 6.  Section 321.30, Code 1995, is amended by adding
  4 11 the following new subsection preceding the last unnumbered
  4 12 paragraph:
  4 13    NEW SUBSECTION.  12.  If the application is for the
  4 14 registration of a motor vehicle and the application does not
  4 15 include proof of liability insurance coverage as required
  4 16 under section 321.20A.  However, proof of liability insurance
  4 17 is not required for issuance of a certificate of title.
  4 18    Sec. 7.  Section 321.40, unnumbered paragraph 1, Code 1995,
  4 19 is amended to read as follows:
  4 20    Application for renewal of a vehicle registration shall be
  4 21 made on or after the first day of the month of expiration of
  4 22 registration and up to and including the last day of the month
  4 23 following the month of expiration of registration.  The
  4 24 registration shall be renewed upon payment of the appropriate
  4 25 registration fee and, for motor vehicles, upon submission of
  4 26 proof of liability insurance coverage as defined in section
  4 27 321.1.
  4 28    Sec. 8.  Section 321.46, subsection 2, Code 1995, is
  4 29 amended by adding the following new unnumbered paragraph:
  4 30    NEW UNNUMBERED PARAGRAPH.  Prior to issuing a registration
  4 31 for a motor vehicle, the county treasurer shall verify that
  4 32 the applicant has submitted proof of liability insurance
  4 33 coverage as required under section 321.20A.  If proof is not
  4 34 submitted, the registration shall not be issued.  Proof of
  4 35 liability insurance coverage is not required for issuance of a
  5  1 certificate of title.
  5  2    Sec. 9.  Section 321.54, unnumbered paragraph 1, Code 1995,
  5  3 is amended to read as follows:
  5  4    Nonresident owners of foreign vehicles operated within this
  5  5 state for the intrastate transportation of persons or property
  5  6 for compensation or for the intrastate transportation of
  5  7 merchandise shall register and maintain liability insurance
  5  8 coverage as required under section 321.20A for each such
  5  9 vehicle and pay the same fees therefor as is required with
  5 10 reference to for like vehicles owned by residents of this
  5 11 state.
  5 12    Sec. 10.  Section 321.55, Code 1995, is amended to read as
  5 13 follows:
  5 14    321.55  REGISTRATION REQUIRED FOR CERTAIN VEHICLES OWNED OR
  5 15 OPERATED BY NONRESIDENTS.
  5 16    A nonresident owner or operator engaged in remunerative
  5 17 employment within the state or carrying on business within the
  5 18 state and owning or operating a motor vehicle, trailer, or
  5 19 semitrailer within the state shall register and maintain
  5 20 liability insurance coverage as required under section 321.20A
  5 21 for each such vehicle and pay the same fees for registration
  5 22 as are paid for like vehicles owned by residents of this
  5 23 state.  However, this paragraph does not apply to a person
  5 24 commuting from the person's residence in another state or
  5 25 whose employment is seasonal or temporary, not exceeding
  5 26 ninety days.
  5 27    A nonresident owner of a motor vehicle operated within the
  5 28 state by a resident of the state shall register the vehicle
  5 29 and shall maintain liability insurance coverage as required
  5 30 under section 321.20A for the vehicle.  The nonresident owner
  5 31 shall pay the same fees for registration as are paid for like
  5 32 vehicles owned by residents of this state.  However,
  5 33 registration under this paragraph does not apply to is not
  5 34 required for vehicles being operated by residents temporarily,
  5 35 not exceeding ninety days.  It is unlawful for a resident to
  6  1 operate within the state an unregistered motor vehicle
  6  2 required to be registered under this paragraph.
  6  3    Sec. 11.  Section 321.57, unnumbered paragraph 1, Code
  6  4 1995, is amended to read as follows:
  6  5    A dealer owning any vehicle of a type otherwise required to
  6  6 be registered hereunder under this chapter may operate or move
  6  7 the same vehicle upon the highways solely for purposes of
  6  8 transporting, testing, demonstrating, or selling the same
  6  9 vehicle without registering each such the vehicle, upon
  6 10 condition that any such the vehicle display in the manner
  6 11 prescribed in sections 321.37 and 321.38 a special plate
  6 12 issued to such the owner as provided in sections 321.58 to
  6 13 321.62.  In addition to the foregoing, a However, if the
  6 14 vehicle is a motor vehicle the dealer shall maintain liability
  6 15 insurance coverage for the motor vehicle as required under
  6 16 section 321.20A.  A new car dealer or a used car dealer may
  6 17 operate or move upon the highways any a new or used car or
  6 18 trailer owned by the dealer for either private or business
  6 19 purposes without registering the same providing, (1) such it
  6 20 if the new or used car or trailer is in the dealer's inventory
  6 21 and is continuously offered for sale at retail, and (2) there
  6 22 is displayed thereon on it a special plate issued to such the
  6 23 dealer as provided in sections 321.58 to 321.62.
  6 24    Sec. 12.  Section 321.492, unnumbered paragraph 1, Code
  6 25 1995, is amended to read as follows:
  6 26    Any A peace officer is authorized to stop any a vehicle to
  6 27 require exhibition of the driver's motor vehicle license, to
  6 28 require exhibition of the proof of insurance card issued for
  6 29 the vehicle if the vehicle is a motor vehicle registered in
  6 30 this state, to serve a summons or memorandum of traffic
  6 31 violation, to inspect the condition of the vehicle, to inspect
  6 32 the vehicle with reference to size, weight, cargo, log book,
  6 33 bills of lading or other manifest of employment, tires, and
  6 34 safety equipment, or to inspect the registration certificate,
  6 35 the compensation certificate, travel order, or permit of the
  7  1 vehicle.
  7  2    Sec. 13.  Section 321A.17, subsections 1 through 3, Code
  7  3 1995, are amended to read as follows:
  7  4    1.  Whenever If the department, under any a law of this
  7  5 state, suspends or revokes the license of any a person upon
  7  6 receiving record of a conviction or a forfeiture of bail or
  7  7 revokes the license of any a person pursuant to chapter 321J,
  7  8 the department shall also suspend the registration for all
  7  9 motor vehicles registered in the name of the person, except
  7 10 that the department shall not suspend the registration, unless
  7 11 otherwise required by law, if the person has previously given
  7 12 or immediately gives and thereafter maintains proof of
  7 13 financial responsibility liability insurance coverage, as
  7 14 defined in section 321.1, with respect to all motor vehicles
  7 15 registered by the person.
  7 16    2.  Such The license and registration shall remain
  7 17 suspended or revoked and shall not at any time thereafter be
  7 18 renewed nor shall any a license be thereafter issued to such
  7 19 the person, nor shall any motor vehicle be thereafter
  7 20 registered in the name of such person until permitted under
  7 21 the motor vehicle laws of this state and not then unless and
  7 22 until the person shall give gives and thereafter maintain
  7 23 maintains proof of financial responsibility.  The registration
  7 24 shall remain suspended and no motor vehicle shall be
  7 25 registered in the name of the person until the person gives
  7 26 and maintains proof of liability insurance coverage, as
  7 27 defined in section 321.1, subsection 34A.
  7 28    3.  If a person is not licensed, but by final order or
  7 29 judgment is convicted of or forfeits any bail or collateral
  7 30 deposited to secure an appearance for trial for any an offense
  7 31 requiring the suspension or revocation of license, or for
  7 32 operating an unregistered motor vehicle upon the highways, no
  7 33 license shall be thereafter issued to such that person and no
  7 34 motor vehicle shall continue to be registered or thereafter be
  7 35 registered in the name of such person until the person shall
  8  1 give gives and thereafter maintain maintains proof of
  8  2 financial responsibility.  A motor vehicle registered in the
  8  3 name of the person shall not continue to be registered and
  8  4 shall not thereafter be registered until the person gives and
  8  5 maintains proof of liability insurance coverage, as defined in
  8  6 section 321.1.
  8  7    Sec. 14.  Section 321A.24, subsection 1, Code 1995, is
  8  8 amended to read as follows:
  8  9    1.  a.  Proof of financial responsibility may be evidenced
  8 10 by the bond of a surety company duly authorized to transact
  8 11 business within this state, or a bond with at least two
  8 12 individual sureties each owning real estate within this state,
  8 13 and together having equities equal in value to at least twice
  8 14 the amount of the bond, which real estate shall be scheduled
  8 15 in the bond approved by a judge or clerk of a the district
  8 16 court of record, and which said bond shall be conditioned for
  8 17 payment of the amounts specified in section 321A.1, subsection
  8 18 10.
  8 19    b.  Such The bond shall be filed with the department and
  8 20 shall is not be cancelable except after ten days' written
  8 21 notice to the department.  Such The director shall issue to
  8 22 the person filing the bond a bond insurance card for each
  8 23 motor vehicle registered by the person in the state.  The bond
  8 24 insurance card shall state the name and address of the person
  8 25 and the motor vehicle registration number of the vehicle for
  8 26 which the card is issued.
  8 27    c.  The bond shall constitute constitutes a lien in favor
  8 28 of the state upon the real estate so scheduled of any surety,
  8 29 which lien shall exist exists in favor of any holder of a
  8 30 final judgment against the person who has filed such the bond,
  8 31 for damages, including damages for care and loss of services,
  8 32 because of bodily injury to or death of any person, or for
  8 33 damage because of injury to or destruction of property,
  8 34 including the loss of use thereof of the property, resulting
  8 35 from the ownership, maintenance, use, or operation of a motor
  9  1 vehicle after such the bond was filed, upon the filing of
  9  2 notice to that effect by the department in the office of the
  9  3 proper clerk of the district court of the county where such
  9  4 the real estate shall be is located.  Any An individual surety
  9  5 so scheduling real estate security shall furnish satisfactory
  9  6 evidence of title thereto to the property and the nature and
  9  7 extent of all encumbrances thereon on the property and the
  9  8 value of the surety's interest therein in the property, in
  9  9 such the manner as the judge or clerk of the district court of
  9 10 record approving the bond may require requires.  The notice
  9 11 filed by the department shall contain, in addition to any
  9 12 other matters deemed by the department to be pertinent,
  9 13 contain a legal description of the real estate so scheduled,
  9 14 the name of the holder of the record title, the amount for
  9 15 which it stands as security, and the name of the person in
  9 16 whose behalf proof is so being made.  Upon the filing of such
  9 17 the notice the clerk of the district court of such county
  9 18 shall retain the same notice as part of the records of such
  9 19 the court and enter upon the encumbrance book the date and
  9 20 hour of filing, the name of the surety, the name of the record
  9 21 titleholder, the description of the real estate, and the
  9 22 further notation that a lien is charged on such the real
  9 23 estate pursuant to the filed notice filed hereunder.  From and
  9 24 after the entry of the foregoing notice upon the encumbrance
  9 25 book all persons whomsoever shall be are charged with notice
  9 26 thereof of it.
  9 27    d.  If the bond is canceled, the person who filed the bond
  9 28 shall surrender to the director all bond insurance cards
  9 29 issued to the person.
  9 30    Sec. 15.  Section 321A.25, subsection 1, Code 1995, is
  9 31 amended to read as follows:
  9 32    1.  With respect to accidents occurring on or after January
  9 33 1, 1981, and before January 1, 1983, proof of financial
  9 34 responsibility may be evidenced by the certificate of the
  9 35 state treasurer that the person named in the certificate has
 10  1 deposited with the treasurer forty thousand dollars in cash,
 10  2 or securities such as may legally be purchased by a state bank
 10  3 or for trust funds of a market value of forty thousand
 10  4 dollars; and with respect to accidents occurring on or after
 10  5 January 1, 1983, proof Proof of financial responsibility may
 10  6 be evidenced by the certificate of the state treasurer of
 10  7 state that the person named in the certificate has deposited
 10  8 with the treasurer of state fifty-five thousand dollars in
 10  9 cash, or securities such as which may legally be purchased by
 10 10 a state bank or for trust funds of a market value of fifty-
 10 11 five thousand dollars.  The treasurer of state shall promptly
 10 12 notify the director of transportation of the name and address
 10 13 of the person to whom the certificate has been issued.  Upon
 10 14 receipt of the notification, the director of transportation
 10 15 shall issue to the person a security insurance card for each
 10 16 motor vehicle registered in this state by the person.  The
 10 17 security insurance card shall state the name and address of
 10 18 the person and the registration number of the motor vehicle
 10 19 for which the card is issued.  The state treasurer of state
 10 20 shall not accept a deposit and issue a certificate for it and
 10 21 the department shall not accept the certificate unless
 10 22 accompanied by evidence that there are no unsatisfied
 10 23 judgments of any character against the depositor in the county
 10 24 where the depositor resides.
 10 25    Sec. 16.  Section 321A.32, subsection 3, Code 1995, is
 10 26 amended to read as follows:
 10 27    3.  Any A person who shall forge forges or, without
 10 28 authority, sign any signs a notice provided for under section
 10 29 321A.5 that a policy or bond is in effect, or any evidence of
 10 30 proof of financial responsibility, or any evidence of
 10 31 liability insurance coverage as defined in section 321.1, or
 10 32 who files or offers for filing any such notice or evidence of
 10 33 proof knowing or having reason to believe that it is forged or
 10 34 signed without authority, shall be is guilty of a serious
 10 35 misdemeanor.
 11  1    Sec. 17.  Section 321A.34, subsections 2 and 3, Code 1995,
 11  2 are amended to read as follows:
 11  3    2.  The department may, in the department's discretion,
 11  4 upon the application of such a person, issue a certificate of
 11  5 self-insurance when if the department is satisfied that such
 11  6 the person is possessed has and will continue to be possessed
 11  7 of have the ability to pay judgments obtained against such the
 11  8 person for damages arising out of the ownership, maintenance,
 11  9 or use of any vehicle owned by such the person.  The
 11 10 department shall issue to each person who has in effect a
 11 11 valid certificate of self-insurance, a self-insurance card for
 11 12 each motor vehicle registered in this state by the person.
 11 13 The card shall state the name and address of the person and
 11 14 shall state the registration number of the motor vehicle for
 11 15 which the card was issued.
 11 16    3.  Upon not less than five days' notice and a hearing
 11 17 pursuant to such the notice, the department may upon
 11 18 reasonable grounds cancel a certificate of self-insurance.
 11 19 Failure to pay any a judgment for damages arising out of the
 11 20 ownership, maintenance, or use of any vehicle owned by such
 11 21 the self-insurer within thirty days after such the judgment
 11 22 shall have become becomes final shall constitute constitutes a
 11 23 reasonable ground for the cancellation of a certificate of
 11 24 self-insurance.  Upon the cancellation of a certificate of
 11 25 self-insurance, the person who was issued the certificate
 11 26 shall surrender to the director all self-insurance cards
 11 27 issued to the person.
 11 28    Sec. 18.  Section 326.6, Code 1995, is amended by adding
 11 29 the following new subsection:
 11 30    NEW SUBSECTION.  4.  Commercial vehicles shall not be
 11 31 registered proportionally unless the owners submit to the
 11 32 department proof of liability insurance coverage for the
 11 33 vehicles as required under section 321.20A.
 11 34    Sec. 19.  Section 326.7, unnumbered paragraph 1, Code 1995,
 11 35 is amended to read as follows:
 12  1    Notwithstanding any other law to the contrary, and as As an
 12  2 alternative to the procedure set out in section 326.6, the
 12  3 department may enter into agreements providing for
 12  4 proportional registration between this state and other
 12  5 jurisdictions of fleets of commercial vehicles owned by
 12  6 residents or nonresidents engaged in interstate commerce or
 12  7 simultaneously engaged in interstate and intrastate commerce
 12  8 on the basis of compact miles.  However, commercial vehicles
 12  9 shall not be registered proportionally unless the owner
 12 10 submits proof of liability insurance coverage for the vehicles
 12 11 as required under section 321.20A.
 12 12    Sec. 20.  Section 326.11, Code 1995, is amended to read as
 12 13 follows:
 12 14    326.11  SUBSEQUENTLY ACQUIRED VEHICLES.
 12 15    Vehicles acquired by a fleet owner after the commencement
 12 16 of the registration year and subsequently added to the fleet
 12 17 shall be prorated by applying the mileage percentage used in
 12 18 the original application for such the fleet for such the
 12 19 registration period to registration fees due under chapter 321
 12 20 but in no case less than that required by section 326.10.  A
 12 21 supplemental report shall be filed with the department not
 12 22 later than ten days after such an addition to the fleet and
 12 23 shall include proof that the additional motor vehicles have
 12 24 liability insurance coverage as required under section
 12 25 321.20A.
 12 26    The director may issue temporary written authorization to
 12 27 carriers for vehicles acquired by a fleet owner and added to
 12 28 the fleet owner's prorate fleet after the beginning of the
 12 29 registration year.  Temporary authorization shall not be
 12 30 issued unless the owner submits proof that the additional
 12 31 motor vehicles have liability insurance coverage as defined in
 12 32 section 321.1.  The temporary authority shall permit the
 12 33 operation of a commercial vehicle until permanent
 12 34 identification is issued, except that the temporary authority
 12 35 shall expire after ninety days.
 13  1    Sec. 21.  Section 326.25, Code 1995, is amended by adding
 13  2 the following new subsection:
 13  3    NEW SUBSECTION.  4.  Upon a determination that the motor
 13  4 vehicle does not have liability insurance coverage as required
 13  5 under section 321.20A.
 13  6    Sec. 22.  Section 805.8, subsection 2, Code 1995, is
 13  7 amended by adding the following new paragraph:
 13  8    NEW PARAGRAPH.  z.  If, in connection with a motor vehicle
 13  9 accident, a person is charged and found guilty of a violation
 13 10 of section 321.20A, subsection 1, the scheduled fine is five
 13 11 hundred dollars, otherwise the scheduled fine for a violation
 13 12 of section 321.20A, subsection 1, is one hundred dollars.
 13 13    Sec. 23.  EFFECTIVE DATES &endash; RULES &endash; NOTIFICATION.
 13 14 Sections 1 through 22 of this Act take effect January 1, 1996.
 13 15 However, in order to implement this Act, the insurance
 13 16 division of the department of commerce and the director of
 13 17 transportation shall each adopt rules as required under this
 13 18 Act which shall be effective by October 1, 1995.  The
 13 19 treasurer of state shall notify the director of transportation
 13 20 of the names and addresses of persons who are issued valid
 13 21 certificates under section 321A.25, subsection 1, Code 1995,
 13 22 by November 1, 1995, and after that date the treasurer of
 13 23 state shall notify the director of transportation as required
 13 24 under section 15 of this Act.  Insurance carriers authorized
 13 25 to do business in this state and the director of
 13 26 transportation shall distribute proof of insurance cards as
 13 27 required under this Act by December 1, 1995.
 13 28    This section, being deemed of immediate importance, takes
 13 29 effect upon enactment.
 13 30    Sec. 24.  CONDITIONAL EFFECTIVENESS PROVISION.  Not-
 13 31 withstanding section 23 of this Act, this Act shall not take
 13 32 effect unless an appropriation is made in accordance with
 13 33 section 25B.2, subsection 3.  
 13 34                           EXPLANATION
 13 35    This bill prohibits a person from driving a motor vehicle
 14  1 registered in this state on the highways of this state unless
 14  2 liability insurance coverage is in effect for the motor
 14  3 vehicle.  A violation is subject to a $500 fine if the
 14  4 violation is in connection with a motor vehicle accident,
 14  5 otherwise the scheduled fine is $100.
 14  6    The driver of the motor vehicle is also subject to a
 14  7 conviction for a violation if the driver does not have in the
 14  8 motor vehicle a proof of insurance card issued for the motor
 14  9 vehicle.  However, a person charged with not having in the
 14 10 motor vehicle a proof of insurance card will not be convicted
 14 11 if the person produces in court, within 24 hours after being
 14 12 charged, proof that the motor vehicle was covered by liability
 14 13 insurance at the time of the driver's arrest.  Under the bill,
 14 14 liability insurance coverage includes either liability
 14 15 insurance, the filing of a bond, the deposit of money or
 14 16 securities, or a certification of self-insurance.
 14 17    The bill requires law enforcement officials to remove
 14 18 registration plates from, and impound motor vehicles which
 14 19 have been operated on the highways of Iowa without liability
 14 20 insurance coverage being in effect for the motor vehicle and
 14 21 requires a $25 fee for redemption of the registration plates.
 14 22 The bill also requires the removal of registration plates from
 14 23 all other vehicles registered to the person charged with the
 14 24 violation.  A vehicle which remains unclaimed for more than 90
 14 25 days becomes the property of the impounding city or county and
 14 26 may be disposed of at public auction or by sealed bid.  The
 14 27 bill requires insurance companies transacting business in this
 14 28 state to notify the state department of transportation and the
 14 29 sheriff of the county in which the motor vehicle is registered
 14 30 of a cancellation of an insurance policy issued to an owner of
 14 31 a motor vehicle registered in this state within 45 days after
 14 32 the policy's cancellation.  The bill also requires proof of
 14 33 liability insurance coverage before registering a motor
 14 34 vehicle in this state.  However, proof of liability insurance
 14 35 coverage is not required for issuance of a certificate of
 15  1 title.
 15  2    The bill creates and internally cites new section 321.20A
 15  3 and new subsections 34A and 54A of section 321.1.
 15  4    The bill generally takes effect January 1, 1996, but
 15  5 certain administrative actions are required prior to that date
 15  6 to allow for the bill's implementation.
 15  7    This bill may create a state mandate under chapter 25B.  
 15  8 LSB 1438XC 76
 15  9 mj/jw/5

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