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House File 2363

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 321.20B, subsections 1, 2, and 3, Code
  1  2 Supplement 1997, are amended to read as follows:
  1  3    1.  Notwithstanding chapter 321A, which requires certain
  1  4 persons to maintain proof of financial responsibility, a
  1  5 person shall not drive a motor vehicle which is registered in
  1  6 this state on the highways of this state unless financial
  1  7 liability coverage, as defined in section 321.1, subsection
  1  8 24A, is in effect for the motor vehicle and unless the driver
  1  9 has in the motor vehicle the proof of financial liability
  1 10 coverage card issued for the motor vehicle, or if the vehicle
  1 11 is registered in another state, other evidence that financial
  1 12 liability coverage is in effect for the motor vehicle.
  1 13    This subsection does not apply to the operator of a motor
  1 14 vehicle owned by or leased to the United States, this state or
  1 15 another state, or any political subdivision of this state or
  1 16 of another state, or to a motor vehicle which is subject to
  1 17 section 325.26, 327.15, 327A.5, 325A.6 or 327B.6.
  1 18    2.  a.  An insurance company transacting business in this
  1 19 state shall issue to its insured owners of motor vehicles
  1 20 registered in this state a financial liability coverage card
  1 21 for each registered motor vehicle insured.  Each financial
  1 22 liability coverage card shall identify the registration number
  1 23 or vehicle identification number of the motor vehicle insured
  1 24 and shall indicate the expiration date of the applicable
  1 25 insurance coverage.  The financial liability coverage card
  1 26 shall also contain the name and address of the insurer, the
  1 27 name of the insured, the type of coverage provided, and an
  1 28 emergency telephone number of the insurer.
  1 29    b.  The insurance division and the department, as
  1 30 appropriate, shall adopt rules regarding the contents of a
  1 31 financial liability coverage card to be issued pursuant to
  1 32 this section.  Notwithstanding the provisions of this section,
  1 33 a fleet owner shall is not be required to maintain in each
  1 34 vehicle a financial liability coverage card with the
  1 35 individual registration number or the vehicle identification
  2  1 number of the vehicle included on the card.  Such fleet owner
  2  2 shall be required to maintain a financial liability coverage
  2  3 card in each vehicle in the fleet including information deemed
  2  4 appropriate by the commissioner of insurance or the director,
  2  5 as applicable.
  2  6    3.  If the financial liability coverage for a motor vehicle
  2  7 which is registered in this state is canceled or terminated
  2  8 effective prior to the expiration date indicated on the
  2  9 financial liability coverage card issued for the vehicle, the
  2 10 person to whom the financial liability coverage card was
  2 11 issued shall destroy the card.
  2 12    Sec. 2.  Section 321.20B, subsections 4 and 5, Code
  2 13 Supplement 1997, are amended by striking the subsections and
  2 14 inserting in lieu thereof the following:
  2 15    4.  a.  If a peace officer stops a motor vehicle registered
  2 16 in this state and the driver is unable to provide proof of
  2 17 financial liability coverage, the peace officer shall do one
  2 18 of the following:
  2 19    (1)  Issue a warning memorandum to the driver.
  2 20    (2)  Issue a citation and remove the motor vehicle's
  2 21 license plates and registration receipt.  Upon removing the
  2 22 license plates and registration receipt, the peace officer
  2 23 shall deliver the plates for destruction, as appropriate, and
  2 24 forward the registration receipt and evidence of the
  2 25 violation, as determined by the department, to the county
  2 26 treasurer of the county in which the vehicle is registered.
  2 27 The driver of the motor vehicle may drive the motor vehicle
  2 28 for a time period of up to forty-eight hours after receiving
  2 29 the citation solely for the purpose of removing the motor
  2 30 vehicle from the highways of this state.
  2 31    After receiving the citation, the driver shall keep the
  2 32 citation in the motor vehicle at all times while driving the
  2 33 motor vehicle as provided in this subparagraph, as proof of
  2 34 the driver's privilege to drive the motor vehicle for such
  2 35 limited time and purpose.
  3  1    (3)  (a)  Issue a citation, remove the motor vehicle's
  3  2 license plates and registration receipt, and impound the motor
  3  3 vehicle.  The peace officer shall deliver the plates for
  3  4 destruction, as appropriate, and forward the registration
  3  5 receipt and evidence of the violation, as determined by the
  3  6 department, to the county treasurer of the county in which the
  3  7 vehicle is registered.
  3  8    (b)  A vehicle which is impounded may be claimed by a
  3  9 person if the owner provides proof of financial liability
  3 10 coverage and proof of payment of any applicable fine and the
  3 11 costs of towing and storage for the motor vehicle.  If the
  3 12 motor vehicle is not claimed within thirty days after
  3 13 impoundment, the motor vehicle may be treated as an abandoned
  3 14 vehicle pursuant to section 321.89.
  3 15    (c)  The holder of a security interest in a motor vehicle
  3 16 which is impounded pursuant to this subparagraph shall be
  3 17 notified of the impoundment within seventy-two hours of the
  3 18 impoundment of the motor vehicle and shall have the right to
  3 19 claim the motor vehicle upon the payment of all fees.
  3 20    b.  An owner or driver of a motor vehicle who is charged
  3 21 with a violation of subsection 1 and issued a citation under
  3 22 paragraph "a", subparagraph (2) or (3), is subject to the
  3 23 following:
  3 24    (1)  An owner or driver who produces to the clerk of court,
  3 25 within thirty days of the issuance of the citation under
  3 26 paragraph "a", or prior to the date of the individual's court
  3 27 appearance as indicated on the citation, whichever is earlier,
  3 28 proof that financial liability coverage was in effect for the
  3 29 motor vehicle at the time the person was stopped and cited,
  3 30 or, if the driver is not the owner of the motor vehicle, proof
  3 31 that liability coverage was in effect for the driver with
  3 32 respect to the motor vehicle being driven at the time the
  3 33 driver was stopped and cited, in the same manner as if the
  3 34 motor vehicle were owned by the driver, shall be given a
  3 35 receipt indicating that such proof was provided and be subject
  4  1 to one of the following:
  4  2    (a)  If the person was cited pursuant to paragraph "a",
  4  3 subparagraph (2), the owner or driver shall provide a copy of
  4  4 the receipt to the county treasurer of the county of residence
  4  5 of the owner and the owner shall be assessed a fifteen dollar
  4  6 administrative fee by the county treasurer who shall issue new
  4  7 license plates and registration to the person after payment of
  4  8 the fee.
  4  9    (b)  If the person was cited pursuant to paragraph "a",
  4 10 subparagraph (3), the owner or driver, after the owner
  4 11 provides proof of financial liability coverage to the clerk of
  4 12 court, may claim the vehicle after such person pays any
  4 13 applicable fine and the costs of towing and storage for the
  4 14 motor vehicle, and pays to the county treasurer of the county
  4 15 of residence of the owner a fifteen dollar administrative fee,
  4 16 and the county treasurer shall issue new license plates and
  4 17 registration to the person.
  4 18    (2)  An owner or driver who is charged with a violation of
  4 19 subsection 1 and is unable to show that financial liability
  4 20 coverage was in effect for the motor vehicle at the time the
  4 21 person was stopped and cited may do either of the following:
  4 22    (a)  Sign an admission of violation on the citation and
  4 23 remit to the clerk of court a scheduled fine as provided in
  4 24 section 805.8, subsection 2, for a violation of subsection 1.
  4 25 Upon payment of the fine to the clerk of court of the county
  4 26 where the citation was issued, payment of a fifteen dollar
  4 27 administrative fee to the county treasurer of the county in
  4 28 which the vehicle is registered, and providing proof of
  4 29 payment of any applicable fine and proof of financial
  4 30 liability coverages to the county treasurer of the county in
  4 31 which the vehicle is registered, the treasurer shall issue new
  4 32 license plates and registration to the owner.
  4 33    (b)  Request an appearance before the court on the matter.
  4 34 If the matter goes before the court, and the owner or driver
  4 35 is found guilty of a violation of subsection 1, the court may
  5  1 impose a fine as provided in section 805.8, subsection 2, for
  5  2 a violation of subsection 1, or the court may order the person
  5  3 to perform unpaid community service instead of the fine.  Upon
  5  4 the payment of the fine or the entry of the order for unpaid
  5  5 community service, the person shall provide proof of payment
  5  6 or entry of such order and the county treasurer of the county
  5  7 in which the vehicle is registered shall issue new license
  5  8 plates and registration to the owner upon the owner providing
  5  9 proof of financial liability coverage and paying a fifteen
  5 10 dollar administrative fee to the county treasurer.
  5 11    5.  If the motor vehicle is not registered in this state
  5 12 and the driver is a nonresident, the peace officer shall issue
  5 13 a citation and the department shall suspend the driver's
  5 14 privilege of operating a motor vehicle within this state.  The
  5 15 driver shall have thirty days to provide to the department
  5 16 proof of financial responsibility.  If the driver provides
  5 17 such proof, the department shall restore the driver's
  5 18 nonresident operating privilege after payment of a fifteen
  5 19 dollar administrative fee.  If the driver is unable to provide
  5 20 such proof, the driver shall be subject to a fine as provided
  5 21 in section 805.8, subsection 2, for a violation of subsection
  5 22 1.
  5 23    Sec. 3.  Section 321.20B, subsections 6 and 7, Code
  5 24 Supplement 1997, are amended to read as follows:
  5 25    6.  This section applies to a motor vehicle subject to
  5 26 registration under this chapter other than does not apply to a
  5 27 motor vehicle identified in section 321.18, subsections 1
  5 28 through 6, and subsection 8.
  5 29    7.  This section does not apply to a motor vehicle owned by
  5 30 a motor vehicle dealer or wholesaler licensed pursuant to
  5 31 chapter 322.
  5 32    Sec. 4.  Section 321.57, unnumbered paragraph 1, Code
  5 33 Supplement 1997, is amended to read as follows:
  5 34    A dealer owning any vehicle of a type otherwise required to
  5 35 be registered under this chapter may operate or move the
  6  1 vehicle upon the highways solely for purposes of transporting,
  6  2 testing, demonstrating, or selling the vehicle without
  6  3 registering the vehicle, upon condition that the vehicle
  6  4 display in the manner prescribed in sections 321.37 and 321.38
  6  5 a special plate issued to the owner as provided in sections
  6  6 321.58 to 321.62.  However, if the vehicle is a motor vehicle,
  6  7 the dealer, if subject to section 321.20B, shall maintain
  6  8 financial liability coverage for the motor vehicle as required
  6  9 under section 321.20B.  A Additionally, a new car dealer or a
  6 10 used car dealer may operate or move upon the highways a new or
  6 11 used car or trailer owned by the dealer for either private or
  6 12 business purposes without registering it if the new or used
  6 13 car or trailer is in the dealer's inventory and is
  6 14 continuously offered for sale at retail, and there is
  6 15 displayed on it a special plate issued to the dealer as
  6 16 provided in sections 321.58 to 321.62.
  6 17    Sec. 5.  NEW SECTION.  322.27A  WHOLESALER'S LICENSE.
  6 18    A person shall not engage in business as a wholesaler of
  6 19 motor vehicles in this state without a license as provided in
  6 20 this chapter.
  6 21    Prior to the issuance of such license, the department, at a
  6 22 minimum, and in addition to any other information the
  6 23 department deems necessary to the application, shall require
  6 24 proof that the applicant has financial liability coverage as
  6 25 defined in section 321.1, except that such coverage shall be
  6 26 in limits of not less than one hundred thousand dollars
  6 27 because of bodily injury to or death of one person in any one
  6 28 accident and, subject to the limit for one person, three
  6 29 hundred thousand dollars because of bodily injury to or death
  6 30 of two or more persons in any one accident, and fifty thousand
  6 31 dollars because of injury to or destruction of property of
  6 32 others in any one accident.
  6 33    Sec. 6.  Section 805.8, subsection 2, paragraph ah, Code
  6 34 Supplement 1997, is amended to read as follows:
  6 35    ah.  If, in connection with a motor vehicle accident, a
  7  1 person is charged and found guilty of a violation of section
  7  2 321.20B, subsection 1, the scheduled fine is one hundred
  7  3 dollars.
  7  4    Sec. 7.  1997 Iowa Acts, chapter 139, section 18, is
  7  5 repealed.
  7  6    Sec. 8.  EFFECTIVE DATE AND RETROACTIVE APPLICABILITY.
  7  7 This Act, being deemed of immediate importance, takes effect
  7  8 upon enactment and applies retroactively to July 1, 1997.  
  7  9                           EXPLANATION
  7 10    This bill amends provisions relating to the motor vehicle
  7 11 mandatory financial responsibility legislation passed during
  7 12 the 1997 legislative session.
  7 13    Code section 321.20B is amended to strike language which
  7 14 establishes a scheduled fine of $250.  Language is included
  7 15 referencing Code section 805.8, subsection 2, which lists a
  7 16 number of scheduled fines.  The scheduled fine currently in
  7 17 the Code section for a violation of Code section 321.20B is
  7 18 initially $100.  The fine is increased to $250 effective July
  7 19 1, 1999, pursuant to the 1997 legislation.
  7 20    Code section 321.20B is amended by striking language
  7 21 requiring the state department of transportation to establish,
  7 22 by rule, criteria for determining whether to impound a vehicle
  7 23 or remove the license plates and registration for a violation.
  7 24 Procedures for citation and impoundment are now specified in
  7 25 the bill.
  7 26    Code section 321.57 is amended and Code section 322.27A is
  7 27 created to provide a special financial responsibility
  7 28 requirement for motor vehicle wholesalers.
  7 29    Code section 805.8, subsection 2, is amended to apply the
  7 30 $100 scheduled fine to all instances where a person is charged
  7 31 and found guilty of a violation of section 321.20B.
  7 32 Currently, such fine applies if the person is found guilty in
  7 33 connection with a motor vehicle accident.
  7 34    The bill specifies the manner in which sanctions will be
  7 35 applied to operators of vehicles registered both in this state
  8  1 and in other states.
  8  2    The bill amends House File 514 as enacted during the 1997
  8  3 regular session by repealing the conditional effectiveness
  8  4 language relating to state mandates.
  8  5    The bill is effective upon enactment and retroactively
  8  6 applicable to July 1, 1997.  
  8  7 LSB 3108HH 77
  8  8 mj/sc/14.1
     

Text: HF02362                           Text: HF02364
Text: HF02300 - HF02399                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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