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House File 2454

Partial Bill History

Bill Text

PAG LIN
  1  1                                        HOUSE FILE 2454
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO MOTOR VEHICLE OPERATOR PROOF OF FINANCIAL
  1  5    RESPONSIBILITY AND PROVIDING AN EFFECTIVE DATE AND FOR
  1  6    RETROACTIVE APPLICABILITY.
  1  7 
  1  8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 
  1  9 
     0  MARGINS	L
  1 10    Section 1.  Section 321.20B, subsections 1, 2, and 3, Code
  1 11 Supplement 1997, are amended to read as follows:
  1 12    1.  Notwithstanding chapter 321A, which requires certain
  1 13 persons to maintain proof of financial responsibility, a
  1 14 person shall not drive a motor vehicle which is registered in
  1 15 this state on the highways of this state unless financial
  1 16 liability coverage, as defined in section 321.1, subsection
  1 17 24A, is in effect for the motor vehicle and unless the driver
  1 18 has in the motor vehicle the proof of financial liability
  1 19 coverage card issued for the motor vehicle, or if the vehicle
  1 20 is registered in another state, other evidence that financial
  1 21 liability coverage is in effect for the motor vehicle.
  1 22    This subsection does not apply to the operator of a motor
  1 23 vehicle owned by or leased to the United States, this state or
  1 24 another state, or any political subdivision of this state or
  1 25 of another state, or to a motor vehicle which is subject to
  1 26 section 325.26, 327.15, 327A.5, 325A.6 or 327B.6.
  1 27    2.  a.  An insurance company transacting business in this
  1 28 state shall issue to its insured owners of motor vehicles
  1 29 registered in this state a financial liability coverage card
  1 30 for each registered motor vehicle insured.  Each financial
  1 31 liability coverage card shall identify the registration number
  1 32 or vehicle identification number of the motor vehicle insured
  1 33 and shall indicate the expiration date of the applicable
  1 34 insurance coverage.  The financial liability coverage card
  1 35 shall also contain the name and address of the insurer or the
  2  1 name of the insurer and the name and address of the insurer
  2  2 insurance agency, the name of the insured, the type of
  2  3 coverage provided, and an emergency telephone number of the
  2  4 insurer or emergency telephone number of the insurance agency.
  2  5    b.  The insurance division and the department, as
  2  6 appropriate, shall adopt rules regarding the contents of a
  2  7 financial liability coverage card to be issued pursuant to
  2  8 this section.  Notwithstanding the provisions of this section,
  2  9 a fleet owner shall is not be required to maintain in each
  2 10 vehicle a financial liability coverage card with the
  2 11 individual registration number or the vehicle identification
  2 12 number of the vehicle included on the card.  Such fleet owner
  2 13 shall be required to maintain a financial liability coverage
  2 14 card in each vehicle in the fleet including information deemed
  2 15 appropriate by the commissioner of insurance or the director,
  2 16 as applicable.
  2 17    3.  If the financial liability coverage for a motor vehicle
  2 18 which is registered in this state is canceled or terminated
  2 19 effective prior to the expiration date indicated on the
  2 20 financial liability coverage card issued for the vehicle, the
  2 21 person to whom the financial liability coverage card was
  2 22 issued shall destroy the card.
  2 23    Sec. 2.  Section 321.20B, subsections 4 and 5, Code
  2 24 Supplement 1997, are amended by striking the subsections and
  2 25 inserting in lieu thereof the following:
  2 26    4.  a.  If a peace officer stops a motor vehicle registered
  2 27 in this state and the driver is unable to provide proof of
  2 28 financial liability coverage, the peace officer shall do one
  2 29 of the following:
  2 30    (1)  Issue a warning memorandum to the driver.
  2 31    (2)  Issue a citation to the driver.  If a citation is
  2 32 issued, the citation shall be issued under this subparagraph
  2 33 unless the driver has been previously charged and cited for a
  2 34 violation of subsection 1.  A citation which is issued and
  2 35 subsequently dismissed shall be disregarded for purposes of
  3  1 determining if the driver has been previously charged and
  3  2 cited.
  3  3    (3)  Issue a citation and remove the motor vehicle's
  3  4 license plates and registration receipt.  Upon removing the
  3  5 license plates and registration receipt, the peace officer
  3  6 shall deliver the plates for destruction, as appropriate, and
  3  7 forward the registration receipt and evidence of the
  3  8 violation, as determined by the department, to the county
  3  9 treasurer of the county in which the motor vehicle is
  3 10 registered.  The motor vehicle may be driven for a time period
  3 11 of up to forty-eight hours after receiving the citation solely
  3 12 for the purpose of removing the motor vehicle from the
  3 13 highways of this state, unless the driver's operating
  3 14 privileges are otherwise suspended.
  3 15    After receiving the citation, the driver shall keep the
  3 16 citation in the motor vehicle at all times while driving the
  3 17 motor vehicle as provided in this subparagraph, as proof of
  3 18 the driver's privilege to drive the motor vehicle for such
  3 19 limited time and purpose.
  3 20    (4)  (a)  Issue a citation, remove the motor vehicle's
  3 21 license plates and registration receipt, and impound the motor
  3 22 vehicle.  The peace officer shall deliver the plates for
  3 23 destruction, as appropriate, and forward the registration
  3 24 receipt and evidence of the violation, as determined by the
  3 25 department, to the county treasurer of the county in which the
  3 26 motor vehicle is registered.
  3 27    (b)  A motor vehicle which is impounded may be claimed by a
  3 28 person if the owner provides proof of financial liability
  3 29 coverage and proof of payment of any applicable fine and the
  3 30 costs of towing and storage for the motor vehicle.  If the
  3 31 motor vehicle is not claimed within thirty days after
  3 32 impoundment, the motor vehicle may be treated as an abandoned
  3 33 vehicle pursuant to section 321.89.
  3 34    (c)  The holder of a security interest in a motor vehicle
  3 35 which is impounded pursuant to this subparagraph shall be
  4  1 notified of the impoundment within seventy-two hours of the
  4  2 impoundment of the motor vehicle and shall have the right to
  4  3 claim the motor vehicle upon the payment of all fees.
  4  4 However, if the value of the vehicle is less than the security
  4  5 interest, all fees shall be divided equally between the
  4  6 lienholder and the political subdivision impounding the
  4  7 vehicle.
  4  8    b.  An owner or driver of a motor vehicle who is charged
  4  9 with a violation of subsection 1 and issued a citation under
  4 10 paragraph "a", subparagraph (3) or (4), is subject to the
  4 11 following:
  4 12    (1)  An owner or driver who produces to the clerk of court,
  4 13 within thirty days of the issuance of the citation under
  4 14 paragraph "a", or prior to the date of the individual's court
  4 15 appearance as indicated on the citation, whichever is earlier,
  4 16 proof that financial liability coverage was in effect for the
  4 17 motor vehicle at the time the person was stopped and cited,
  4 18 or, if the driver is not the owner of the motor vehicle, proof
  4 19 that liability coverage was in effect for the driver with
  4 20 respect to the motor vehicle being driven at the time the
  4 21 driver was stopped and cited, in the same manner as if the
  4 22 motor vehicle were owned by the driver, shall be given a
  4 23 receipt indicating that such proof was provided and be subject
  4 24 to one of the following:
  4 25    (a)  If the person was cited pursuant to paragraph "a",
  4 26 subparagraph (3), the owner or driver shall provide a copy of
  4 27 the receipt to the county treasurer of the county in which the
  4 28 motor vehicle is registered and the owner shall be assessed a
  4 29 fifteen dollar administrative fee by the county treasurer who
  4 30 shall issue new license plates and registration to the person
  4 31 after payment of the fee.
  4 32    (b)  If the person was cited pursuant to paragraph "a",
  4 33 subparagraph (4), the owner or driver, after the owner
  4 34 provides proof of financial liability coverage to the clerk of
  4 35 court, may claim the motor vehicle after such person pays any
  5  1 applicable fine and the costs of towing and storage for the
  5  2 motor vehicle, and the owner or driver provides a copy of the
  5  3 receipt and the owner pays to the county treasurer of the
  5  4 county in which the motor vehicle is registered a fifteen
  5  5 dollar administrative fee, and the county treasurer shall
  5  6 issue new license plates and registration to the person.
  5  7    (2)  An owner or driver who is charged with a violation of
  5  8 subsection 1 and is unable to show that financial liability
  5  9 coverage was in effect for the motor vehicle at the time the
  5 10 person was stopped and cited may do either of the following:
  5 11    (a)  Sign an admission of violation on the citation and
  5 12 remit to the clerk of court a scheduled fine as provided in
  5 13 section 805.8, subsection 2, for a violation of subsection 1.
  5 14 Upon payment of the fine to the clerk of court of the county
  5 15 where the citation was issued, payment of a fifteen dollar
  5 16 administrative fee to the county treasurer of the county in
  5 17 which the motor vehicle is registered, and providing proof of
  5 18 payment of any applicable fine and proof of financial
  5 19 liability coverages to the county treasurer of the county in
  5 20 which the motor vehicle is registered, the treasurer shall
  5 21 issue new license plates and registration to the owner.
  5 22    (b)  Request an appearance before the court on the matter.
  5 23 If the matter goes before the court, and the owner or driver
  5 24 is found guilty of a violation of subsection 1, the court may
  5 25 impose a fine as provided in section 805.8, subsection 2, for
  5 26 a violation of subsection 1, or the court may order the person
  5 27 to perform unpaid community service instead of the fine.  Upon
  5 28 the payment of the fine or the entry of the order for unpaid
  5 29 community service, the person shall provide proof of payment
  5 30 or entry of such order and the county treasurer of the county
  5 31 in which the motor vehicle is registered shall issue new
  5 32 license plates and registration to the owner upon the owner
  5 33 providing proof of financial liability coverage and paying a
  5 34 fifteen dollar administrative fee to the county treasurer.
  5 35    c.  An owner or driver cited for a violation of subsection
  6  1 1, who produces to the clerk of court within thirty days of
  6  2 the issuance of the citation proof that financial liability
  6  3 coverage was in effect for the motor vehicle at the time the
  6  4 person was stopped and cited as provided in paragraph "b",
  6  5 shall not be convicted of such violation and the citation
  6  6 issued shall be dismissed.
  6  7    5.  If the motor vehicle is not registered in this state
  6  8 and the driver is a nonresident, the peace officer shall do
  6  9 one of the following:
  6 10    a.  Issue a warning memorandum to the driver.
  6 11    b.  Issue a citation.  An owner or driver who produces to
  6 12 the clerk of court within thirty days of the issuance of the
  6 13 citation, or prior to the date of the individual's court
  6 14 appearance as indicated on the citation, whichever is earlier,
  6 15 proof that the financial liability coverage was in effect for
  6 16 the motor vehicle at the time the person was stopped and
  6 17 cited, or if the driver is not the owner of the motor vehicle,
  6 18 proof that liability coverage was in effect for the driver
  6 19 with respect to the motor vehicle being driven at the time the
  6 20 driver was stopped and cited in the same manner as if the
  6 21 motor vehicle were owned by the driver, shall be given a
  6 22 receipt indicating that proof was provided, and the citation
  6 23 issued shall be dismissed.
  6 24    Sec. 3.  Section 321.20B, subsections 6 and 7, Code
  6 25 Supplement 1997, are amended to read as follows:
  6 26    6.  This section applies to a motor vehicle subject to
  6 27 registration under this chapter other than does not apply to a
  6 28 motor vehicle identified in section 321.18, subsections 1
  6 29 through 6, and subsection 8.
  6 30    7.  This section does not apply to a motor vehicle owned by
  6 31 a motor vehicle dealer or wholesaler licensed pursuant to
  6 32 chapter 322.
  6 33    Sec. 4.  Section 321.20B, Code Supplement 1997, is amended
  6 34 by adding the following new subsection:
  6 35    NEW SUBSECTION.  6A.  This section does not apply to a
  7  1 lienholder who has a security interest in a motor vehicle
  7  2 subject to the registration requirements of this chapter, so
  7  3 long as such lienholder maintains financial liability coverage
  7  4 for any motor vehicle driven or moved by the lienholder in
  7  5 which the lienholder has an interest.
  7  6    Sec. 5.  Section 321.57, unnumbered paragraph 1, Code
  7  7 Supplement 1997, is amended to read as follows:
  7  8    A dealer owning any vehicle of a type otherwise required to
  7  9 be registered under this chapter may operate or move the
  7 10 vehicle upon the highways solely for purposes of transporting,
  7 11 testing, demonstrating, or selling the vehicle without
  7 12 registering the vehicle, upon condition that the vehicle
  7 13 display in the manner prescribed in sections 321.37 and 321.38
  7 14 a special plate issued to the owner as provided in sections
  7 15 321.58 to 321.62.  However, if the vehicle is a motor vehicle,
  7 16 the dealer, if subject to section 321.20B, shall maintain
  7 17 financial liability coverage for the motor vehicle as required
  7 18 under section 321.20B.  A Additionally, a new car dealer or a
  7 19 used car dealer may operate or move upon the highways a new or
  7 20 used car or trailer owned by the dealer for either private or
  7 21 business purposes without registering it if the new or used
  7 22 car or trailer is in the dealer's inventory and is
  7 23 continuously offered for sale at retail, and there is
  7 24 displayed on it a special plate issued to the dealer as
  7 25 provided in sections 321.58 to 321.62.
  7 26    Sec. 6.  NEW SECTION.  322.27A  WHOLESALER'S LICENSE.
  7 27    A person shall not engage in business as a wholesaler of
  7 28 motor vehicles in this state without a license as provided in
  7 29 this chapter.
  7 30    Prior to the issuance of such license, the department, at a
  7 31 minimum, and in addition to any other information the
  7 32 department deems necessary to the application, shall require
  7 33 proof that the applicant has financial liability coverage as
  7 34 defined in section 321.1, except that such coverage shall be
  7 35 in limits of not less than one hundred thousand dollars
  8  1 because of bodily injury to or death of one person in any one
  8  2 accident and, subject to the limit for one person, three
  8  3 hundred thousand dollars because of bodily injury to or death
  8  4 of two or more persons in any one accident, and fifty thousand
  8  5 dollars because of injury to or destruction of property of
  8  6 others in any one accident.
  8  7    Sec. 7.  Section 805.8, subsection 2, paragraph ah, Code
  8  8 Supplement 1997, is amended to read as follows:
  8  9    ah.  If, in connection with a motor vehicle accident, a
  8 10 person is charged and found guilty of a violation of section
  8 11 321.20B, subsection 1, the scheduled fine is one hundred
  8 12 dollars.
  8 13    Sec. 8.  1997 Iowa Acts, chapter 139, section 18, is
  8 14 repealed.
  8 15    Sec. 9.  EFFECTIVE DATE AND RETROACTIVE APPLICABILITY.
  8 16 This Act, being deemed of immediate importance, takes effect
  8 17 upon enactment and applies retroactively to July 1, 1997.  
  8 18 
  8 19 
  8 20                                                             
  8 21                               RON J. CORBETT
  8 22                               Speaker of the House
  8 23 
  8 24 
  8 25                                                             
  8 26                               MARY E. KRAMER
  8 27                               President of the Senate
  8 28 
  8 29    I hereby certify that this bill originated in the House and
  8 30 is known as House File 2454, Seventy-seventh General Assembly.
  8 31 
  8 32 
  8 33                                                             
  8 34                               ELIZABETH ISAACSON
  8 35                               Chief Clerk of the House
  9  1 Approved                , 1998
  9  2 
  9  3 
  9  4                         
  9  5 TERRY E. BRANSTAD
  9  6 Governor
     

Text: HF02453                           Text: HF02455
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