Text: HF00513 Text: HF00515 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 514 1 2 1 3 AN ACT 1 4 RELATING TO FINANCIAL LIABILITY COVERAGE AND REGISTRATION 1 5 REQUIREMENTS FOR MOTOR VEHICLES IN THIS STATE, PROVIDING 1 6 FOR THE SEIZURE OF MOTOR VEHICLE REGISTRATION PLATES, AND 1 7 PROVIDING PENALTIES AND EFFECTIVE DATES. 1 8 1 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 10 1 11 Section 1. Section 321.1, Code 1997, is amended by adding 1 12 the following new subsections: 1 13 NEW SUBSECTION. 24A. "Financial liability coverage" means 1 14 any of the following: 1 15 a. An owner's policy of liability insurance which is 1 16 issued by an insurance carrier authorized to do business in 1 17 Iowa to or for the benefit of the person named in the policy 1 18 as insured, and insuring the person named as insured and any 1 19 person using an insured motor vehicle with the express or 1 20 implied permission of the named insured against loss from 1 21 liability imposed by law for damages arising out of the 1 22 ownership, maintenance, or use of an insured motor vehicle 1 23 within the United States of America or Canada, but subject to 1 24 minimum limits, exclusive of interest and costs, in the 1 25 amounts specified in section 321A.21 or specified in another 1 26 provision of the Code, whichever is greater. 1 27 b. A bond filed with the department pursuant to section 1 28 321A.24. 1 29 c. A valid certificate of deposit of money or security 1 30 issued by the treasurer of state pursuant to section 321A.25. 1 31 d. A valid certificate of self-insurance issued by the 1 32 department pursuant to section 321A.34. 1 33 NEW SUBSECTION. 54A. "Proof of financial liability 1 34 coverage card" means either a liability insurance card issued 1 35 under section 321.20B, a bond insurance card issued under 2 1 section 321A.24, a security insurance card issued under 2 2 section 321A.25, or a self-insurance card issued under section 2 3 321A.34. 2 4 Sec. 2. NEW SECTION. 321.20B PROOF OF SECURITY AGAINST 2 5 LIABILITY. 2 6 1. Notwithstanding chapter 321A, which requires certain 2 7 persons to maintain proof of financial responsibility, a 2 8 person shall not drive a motor vehicle which is registered in 2 9 this state on the highways of this state unless financial 2 10 liability coverage, as defined in section 321.1, subsection 2 11 24A, is in effect for the motor vehicle and unless the driver 2 12 has in the motor vehicle the proof of financial liability 2 13 coverage card issued for the motor vehicle. 2 14 This subsection does not apply to the operator of a motor 2 15 vehicle owned or leased to the United States, this state, or 2 16 any political subdivision of this state or to a motor vehicle 2 17 which is subject to section 325.26, 327.15, 327A.5, or 327B.6. 2 18 2. a. An insurance company transacting business in this 2 19 state shall issue to its insured owners of motor vehicles 2 20 registered in this state a financial liability coverage card 2 21 for each registered motor vehicle insured. Each financial 2 22 liability coverage card shall identify the registration number 2 23 of the motor vehicle insured and shall indicate the expiration 2 24 date of the applicable insurance coverage. The financial 2 25 liability coverage card shall also contain the name and 2 26 address of the insurer, the name of the insured, the type of 2 27 coverage provided, and an emergency telephone number of the 2 28 insurer. 2 29 b. The insurance division and the department, as 2 30 appropriate, shall adopt rules regarding the contents of a 2 31 financial liability coverage card to be issued pursuant to 2 32 this section. Notwithstanding the provisions of this section, 2 33 a fleet owner shall not be required to maintain in each 2 34 vehicle a financial liability coverage card with the 2 35 individual registration number of the vehicle included on the 3 1 card. Such fleet owner shall be required to maintain a 3 2 financial liability coverage card in each vehicle in the fleet 3 3 including information deemed appropriate by the commissioner 3 4 of insurance or the director, as applicable. 3 5 3. If the financial liability coverage for a motor vehicle 3 6 which is registered in this state is canceled or terminated 3 7 effective prior to the expiration date indicated on the 3 8 financial liability coverage card issued for the vehicle, the 3 9 person to whom the financial liability coverage card was 3 10 issued shall destroy the card. 3 11 4. If a peace officer stops a motor vehicle and the driver 3 12 is unable to provide proof of financial liability coverage, 3 13 the peace officer shall do one of the following: 3 14 a. Issue a warning memorandum to the driver. 3 15 b. Issue a citation and remove the motor vehicle's license 3 16 plates and registration from the motor vehicle which has been 3 17 operated on the highways of this state without financial 3 18 liability coverage being in effect for the motor vehicle. 3 19 Upon removing the license plates and registration the peace 3 20 officer shall forward the plates to the county treasurer of 3 21 the county in which the plates were issued. An owner or 3 22 driver of a motor vehicle who is charged with a violation of 3 23 subsection 1 and whose license plates and registration have 3 24 been removed is subject to the following: 3 25 (1) An owner or driver who produces to the county 3 26 treasurer, within thirty days of the time the person's license 3 27 plates and registration are removed, proof that financial 3 28 liability coverage was in effect for the motor vehicle at the 3 29 time the person was stopped and cited, shall be assessed a 3 30 fifteen dollar administrative fee by the county treasurer who 3 31 shall return the license plates and registration to the person 3 32 after payment of the fee. 3 33 (2) An owner or driver who is unable to show that 3 34 financial liability coverage was in effect for the motor 3 35 vehicle at the time the person was stopped and cited, and 4 1 signs an admission of violation on the citation, may do either 4 2 of the following: 4 3 (a) Sign an admission of violation on the citation and 4 4 remit to the clerk of court a scheduled fine of two hundred 4 5 fifty dollars. Upon payment of the fine, payment of a fifteen 4 6 dollar administrative fee to the county treasurer, and 4 7 providing proof of financial liability coverage to the county 4 8 treasurer, the treasurer shall issue new license plates and 4 9 registration to the person. 4 10 (b) Request an appearance before the court on the matter. 4 11 If the matter goes before the court, and the owner or driver 4 12 is found guilty of a violation of subsection 1, the court may 4 13 impose a fine of two hundred fifty dollars, or the court may 4 14 order the person to perform unpaid community service instead 4 15 of the fine. Upon the payment of the fine or the entry of the 4 16 order for unpaid community service, the county treasurer shall 4 17 issue new license plates and registration to the person upon 4 18 the person providing proof of financial liability coverage and 4 19 paying a fifteen dollar administrative fee to the county 4 20 treasurer. 4 21 (3) An owner or driver who fails to provide to the county 4 22 treasurer, within thirty days of the time the person's 4 23 registration plates are removed, proof that financial 4 24 liability coverage was in effect for the motor vehicle at the 4 25 time the person was stopped and cited, and does not sign an 4 26 admission of violation on the citation, shall not have the 4 27 person's license plates or registration returned. 4 28 c. Issue a citation and impound the motor vehicle. A 4 29 vehicle which is impounded may be claimed by a person if the 4 30 owner provides proof of financial liability coverage and pays 4 31 any applicable fine and the costs of towing and storage for 4 32 the motor vehicle. If the motor vehicle is not claimed within 4 33 thirty days after impoundment, the motor vehicle may be 4 34 treated as an abandoned vehicle pursuant to section 321.89. 4 35 4A. The department shall establish by rule standardized 5 1 criteria for determining whether to impound a vehicle or 5 2 remove the license plates and registration under subsection 4. 5 3 The department shall provide a copy of such criteria to local 5 4 jurisdictions for use in developing local standardized 5 5 criteria for such actions when taken by a peace officer 5 6 associated with a local law enforcement agency. 5 7 5. This section applies to a motor vehicle subject to 5 8 registration under this chapter other than a motor vehicle 5 9 identified in section 321.18, subsections 1 through 6, and 5 10 subsection 8. 5 11 6. This section does not apply to a motor vehicle owned by 5 12 a motor vehicle dealer licensed pursuant to chapter 322. 5 13 7. The director of transportation and the commissioner of 5 14 insurance shall adopt rules pursuant to chapter 17A to 5 15 administer this section. 5 16 Sec. 3. Section 321.54, unnumbered paragraph 1, Code 1997, 5 17 is amended to read as follows: 5 18 Nonresident owners of foreign vehicles operated within this 5 19 state for the intrastate transportation of persons or property 5 20 for compensation or for the intrastate transportation of 5 21 merchandise shall register and maintain financial liability 5 22 coverage as required under section 321.20B for eachsuch5 23 vehicle and pay the same feestherefor as isrequiredwith5 24reference tofor like vehicles owned by residents of this 5 25 state. 5 26 Sec. 4. Section 321.55, Code 1997, is amended to read as 5 27 follows: 5 28 321.55 REGISTRATION REQUIRED FOR CERTAIN VEHICLES OWNED OR 5 29 OPERATED BY NONRESIDENTS. 5 30 A nonresident owner or operator engaged in remunerative 5 31 employment within the state or carrying on business within the 5 32 state and owning or operating a motor vehicle, trailer, or 5 33 semitrailer within the state shall register and maintain 5 34 financial liability coverage as required under section 321.20B 5 35 for eachsuchvehicle and pay the same fees for registration 6 1 as are paid for like vehicles owned by residents of this 6 2 state. However, this paragraph does not apply to a person 6 3 commuting from the person's residence in another state or 6 4 whose employment is seasonal or temporary, not exceeding 6 5 ninety days. 6 6 A nonresident owner of a motor vehicle operated within the 6 7 state by a resident of the state shall register the vehicle 6 8 and shall maintain financial liability coverage as required 6 9 under section 321.20B for the vehicle. The nonresident owner 6 10 shall pay the same fees for registration as are paid for like 6 11 vehicles owned by residents of this state. However, 6 12 registration under this paragraphdoes not apply tois not 6 13 required for vehicles being operated by residents temporarily, 6 14 not exceeding ninety days. It is unlawful for a resident to 6 15 operate within the state an unregistered motor vehicle 6 16 required to be registered under this paragraph. 6 17 Sec. 5. Section 321.57, unnumbered paragraph 1, Code 1997, 6 18 is amended to read as follows: 6 19 A dealer owning any vehicle of a type otherwise required to 6 20 be registeredhereunderunder this chapter may operate or move 6 21 thesamevehicle upon the highways solely for purposes of 6 22 transporting, testing, demonstrating, or selling thesame6 23 vehicle without registeringeach suchthe vehicle, upon 6 24 condition thatany suchthe vehicle display in the manner 6 25 prescribed in sections 321.37 and 321.38 a special plate 6 26 issued tosuchthe owner as provided in sections 321.58 to 6 27 321.62.In addition to the foregoing, aHowever, if the 6 28 vehicle is a motor vehicle the dealer, if subject to section 6 29 321.20B, shall maintain financial liability coverage for the 6 30 motor vehicle as required under section 321.20B. A new car 6 31 dealer or a used car dealer may operate or move upon the 6 32 highwaysanya new or used car or trailer owned by the dealer 6 33 for either private or business purposes without registering 6 34the same providing, (1) suchit if the new or used car or 6 35 trailer is in the dealer's inventory and is continuously 7 1 offered for sale at retail, and(2)there is displayedthereon7 2 on it a special plate issued tosuchthe dealer as provided in 7 3 sections 321.58 to 321.62. 7 4 Sec. 6. Section 321.492, unnumbered paragraph 1, Code 7 5 1997, is amended to read as follows: 7 6AnyA peace officer is authorized to stopanya vehicle to 7 7 require exhibition of the driver's motor vehicle license, to 7 8 serve a summons or memorandum of traffic violation, to inspect 7 9 the condition of the vehicle, to inspect the vehicle with 7 10 reference to size, weight, cargo, log book, bills of lading or 7 11 other manifest of employment, tires, and safety equipment, or 7 12 to inspect the registration certificate, the compensation 7 13 certificate, travel order, or permit of the vehicle. 7 14 Sec. 7. Section 321.492, Code 1997, is amended by adding 7 15 the following new unnumbered paragraph after unnumbered 7 16 paragraph 1: 7 17 NEW UNNUMBERED PARAGRAPH. A peace officer having probable 7 18 cause to stop a vehicle may require exhibition of the proof of 7 19 insurance card issued for the vehicle if the vehicle is a 7 20 motor vehicle registered in this state. 7 21 Sec. 8. Section 321A.24, subsection 1, Code 1997, is 7 22 amended to read as follows: 7 23 1. a. Proof of financial responsibility may be evidenced 7 24 by the bond of a surety company duly authorized to transact 7 25 business within this state, or a bond with at least two 7 26 individual sureties each owning real estate within this state, 7 27 and together having equities equal in value to at least twice 7 28 the amount of the bond, which real estate shall be scheduled 7 29 in the bond approved by a judge or clerk ofathe district 7 30 courtof record, and whichsaidbond shall be conditioned for 7 31 payment of the amounts specified in section 321A.1, subsection 7 32 10. 7 33 b.SuchThe bond shall be filed with the department and 7 34shallis notbecancelable except after ten days' written 7 35 notice to the department.SuchThe director shall issue to 8 1 the person filing the bond a bond insurance card for each 8 2 motor vehicle registered by the person in the state. The bond 8 3 insurance card shall state the name and address of the person 8 4 and the motor vehicle registration number of the vehicle for 8 5 which the card is issued. 8 6 c. The bondshall constituteconstitutes a lien in favor 8 7 of the state upon the real estate so scheduled of any surety, 8 8 which lienshall existexists in favor of any holder of a 8 9 final judgment against the person who has filedsuchthe bond, 8 10 for damages, including damages for care and loss of services, 8 11 because of bodily injury to or death of any person, or for 8 12 damage because of injury to or destruction of property, 8 13 including the loss of usethereofof the property, resulting 8 14 from the ownership, maintenance, use, or operation of a motor 8 15 vehicle aftersuchthe bond was filed, upon the filing of 8 16 notice to that effect by the department in the office of the 8 17 proper clerk of the district court of the county wheresuch8 18 the real estateshall beis located.AnyAn individual surety 8 19soscheduling real estate security shall furnish satisfactory 8 20 evidence of titletheretoto the property and the nature and 8 21 extent of all encumbrancesthereonon the property and the 8 22 value of the surety's interestthereinin the property, in 8 23suchthe mannerasthe judge or clerk of the district courtof8 24recordapproving the bondmay requirerequires. The notice 8 25 filed by the department shall contain, in addition to any 8 26 other matters deemed by the department to be pertinent, 8 27containa legal description of the real estatesoscheduled, 8 28 the name of the holder of the record title, the amount for 8 29 which it stands as security, and the name of the person in 8 30 whose behalf proof is so being made. Upon the filing ofsuch8 31 the notice the clerk of the district courtof such county8 32 shall retain thesamenotice as part of the records ofsuch8 33 the court and enter upon the encumbrance book the date and 8 34 hour of filing, the name of the surety, the name of the record 8 35 titleholder, the description of the real estate, and the 9 1 further notation that a lien is charged onsuchthe real 9 2 estate pursuant to the filed noticefiled hereunder. From and 9 3 after the entry of theforegoingnotice upon the encumbrance 9 4 book all personswhomsoever shall beare charged with notice 9 5thereofof it. 9 6 d. If the bond is canceled, the person who filed the bond 9 7 shall surrender to the director all bond insurance cards 9 8 issued to the person. 9 9 Sec. 9. Section 321A.25, subsection 1, Code 1997, is 9 10 amended to read as follows: 9 11 1.With respect to accidents occurring on or after January9 121, 1981, and before January 1, 1983, proof of financial9 13responsibility may be evidenced by the certificate of the9 14state treasurer that the person named in the certificate has9 15deposited with the treasurer forty thousand dollars in cash,9 16or securities such as may legally be purchased by a state bank9 17or for trust funds of a market value of forty thousand9 18dollars; and with respect to accidents occurring on or after9 19January 1, 1983, proofProof of financial responsibility may 9 20 be evidenced by the certificate of thestatetreasurer of 9 21 state that the person named in the certificate has deposited 9 22 with the treasurer of state fifty-five thousand dollars in 9 23 cash, or securitiessuch aswhich may legally be purchased by 9 24 a state bank orfortrust funds of a market value of fifty- 9 25 five thousand dollars. The treasurer of state shall promptly 9 26 notify the director of transportation of the name and address 9 27 of the person to whom the certificate has been issued. Upon 9 28 receipt of the notification, the director of transportation 9 29 shall issue to the person a security insurance card for each 9 30 motor vehicle registered in this state by the person. The 9 31 security insurance card shall state the name and address of 9 32 the person and the registration number of the motor vehicle 9 33 for which the card is issued. Thestatetreasurer of state 9 34 shall not accept a deposit and issue a certificate for it and 9 35 the department shall not accept the certificate unless 10 1 accompanied by evidence that there are no unsatisfied 10 2 judgments of any character against the depositor in the county 10 3 where the depositor resides. 10 4 Sec. 10. Section 321A.32, subsection 3, Code 1997, is 10 5 amended to read as follows: 10 6 3.AnyA person whoshall forgeforges or, without 10 7 authority,sign anysigns a notice provided for under section 10 8 321A.5 that a policy or bond is in effect, or any evidence of 10 9proof offinancial responsibility, or any evidence of 10 10 financial liability coverage as defined in section 321.1, or 10 11 who files or offers for filing any such notice or evidenceof10 12proofknowing or having reason to believe that it is forged or 10 13 signed without authority,shall beis guilty of a serious 10 14 misdemeanor. 10 15 Sec. 11. Section 321A.34, subsections 2 and 3, Code 1997, 10 16 are amended to read as follows: 10 17 2. The department may,in the department's discretion,10 18 upon the application of such a person, issue a certificate of 10 19 self-insurancewhenif the department is satisfied thatsuch10 20 the personis possessedhas and will continue tobe possessed10 21ofhave the ability to pay judgments obtained againstsuchthe 10 22 person for damages arising out of the ownership, maintenance, 10 23 or use of any vehicle owned bysuchthe person. A person 10 24 issued a certificate of self-insurance pursuant to this 10 25 section shall maintain a financial liability coverage card as 10 26 provided in section 321.20B, subsection 2, paragraph "b". 10 27 3. Upon not less than five days' notice and a hearing 10 28 pursuant tosuchthe notice, the department may upon 10 29 reasonable grounds cancel a certificate of self-insurance. 10 30 Failure to payanya judgment for damages arising out of the 10 31 ownership, maintenance, or use of any vehicle owned bysuch10 32 the self-insurer within thirty days aftersuchthe judgment 10 33shall have becomebecomes finalshall constituteconstitutes a 10 34 reasonable ground for the cancellation of a certificate of 10 35 self-insurance. Upon the cancellation of a certificate of 11 1 self-insurance, the person who was issued the certificate 11 2 shall surrender to the director all self-insurance cards 11 3 issued to the person. 11 4 Sec. 12. Section 322.4, Code 1997, is amended by adding 11 5 the following new subsection: 11 6 NEW SUBSECTION. 7A. Proof that the applicant has 11 7 financial liability coverage as defined in section 321.1, 11 8 except that such coverage shall be in limits of not less than 11 9 one hundred thousand dollars because of bodily injury to or 11 10 death of one person in any one accident and, subject to the 11 11 limit for one person, three hundred thousand dollars because 11 12 of bodily injury to or death of two or more persons in any one 11 13 accident, and fifty thousand dollars because of injury to or 11 14 destruction of property of others in any one accident. 11 15 Sec. 13. Section 322.8, Code 1997, is amended by adding 11 16 the following new unnumbered paragraph: 11 17 NEW UNNUMBERED PARAGRAPH. A supplemental statement shall 11 18 include any change in the licensee's financial liability 11 19 coverage. 11 20 Sec. 14. Section 326.25, Code 1997, is amended by adding 11 21 the following new subsection: 11 22 NEW SUBSECTION. 4. Upon a determination that the motor 11 23 vehicle does not have financial liability coverage as required 11 24 under section 321.20B. 11 25 Sec. 15. Section 805.8, subsection 2, Code 1997, is 11 26 amended by adding the following new paragraph: 11 27 NEW PARAGRAPH. ad. If, in connection with a motor vehicle 11 28 accident, a person is charged and found guilty of a violation 11 29 of section 321.20B, subsection 1, the scheduled fine is one 11 30 hundred dollars. 11 31 Sec. 16. Section 805.8, subsection 2, Code 1997, is 11 32 amended by adding the following new paragraph: 11 33 NEW PARAGRAPH. af. If, in connection with a motor vehicle 11 34 accident, a person is charged and found guilty of a violation 11 35 of section 321.20B, subsection 1, the scheduled fine is five 12 1 hundred dollars, otherwise the scheduled fine for a violation 12 2 of section 321.20B, subsection 1, is two hundred fifty 12 3 dollars. Notwithstanding section 805.12, fines collected 12 4 pursuant to this paragraph shall be submitted to the state 12 5 court administrator and distributed fifty percent to the 12 6 victim compensation fund established in section 912.14, 12 7 twenty-five percent to the county in which such fine is 12 8 imposed, and twenty-five percent to the general fund of the 12 9 state. 12 10 Sec. 17. EFFECTIVE DATES RULES NOTIFICATION. 12 11 Sections 1 through 15 of this Act take effect January 1, 1998. 12 12 However, in order to implement this Act, the insurance 12 13 division of the department of commerce and the director of 12 14 transportation shall each adopt rules as required under this 12 15 Act. The treasurer of state shall notify the director of 12 16 transportation of the names and addresses of persons who are 12 17 issued valid certificates under section 321A.25, subsection 1, 12 18 Code 1997, by November 1, 1997, and after that date the 12 19 treasurer of state shall notify the director of transportation 12 20 as required under section 9 of this Act. Insurance carriers 12 21 authorized to do business in this state and the director of 12 22 transportation shall distribute proof of insurance cards as 12 23 required under this Act by December 1, 1997. 12 24 This section, being deemed of immediate importance, takes 12 25 effect upon enactment. 12 26 Section 16 of this Act takes effect July 1, 1999. 12 27 Sec. 18. CONDITIONAL EFFECTIVENESS PROVISION. 12 28 Notwithstanding section 17 of this Act, sections 1 through 11 12 29 and 14 and 15 of this Act shall not take effect unless an 12 30 appropriation is made in accordance with section 25B.2, 12 31 subsection 3. 12 32 Sec. 19. Section 805.8, subsection 2, paragraph "ad", as 12 33 enacted by this Act, is amended by striking the paragraph 12 34 effective July 1, 1999. 12 35 13 1 13 2 13 3 RON J. CORBETT 13 4 Speaker of the House 13 5 13 6 13 7 13 8 MARY E. KRAMER 13 9 President of the Senate 13 10 13 11 I hereby certify that this bill originated in the House and 13 12 is known as House File 514, Seventy-seventh General Assembly. 13 13 13 14 13 15 13 16 ELIZABETH ISAACSON 13 17 Chief Clerk of the House 13 18 Approved , 1997 13 19 13 20 13 21 13 22 TERRY E. BRANSTAD 13 23 Governor
Text: HF00513 Text: HF00515 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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