Text: HF02453 Text: HF02455 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 1998 Cornell College and League of Women Voters of Iowa
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