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Senate File 212

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 321.1, Code 1997, is amended by adding
  1  2 the following new subsections:
  1  3    NEW SUBSECTION.  24A.  "Financial liability 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 financial liability
  1 24 coverage card" means either a liability insurance card issued
  1 25 under section 321.20B, a bond insurance card issued under
  1 26 section 321A.24, a security insurance card issued under
  1 27 section 321A.25, or a self-insurance card issued under section
  1 28 321A.34.
  1 29    Sec. 2.  NEW SECTION.  321.20B  PROOF OF SECURITY AGAINST
  1 30 LIABILITY.
  1 31    1.  Notwithstanding chapter 321A, which requires certain
  1 32 persons to maintain proof of financial responsibility, a
  1 33 person shall not drive a motor vehicle which is registered in
  1 34 this state on the highways of this state unless financial
  1 35 liability coverage, as defined in section 321.1, subsection
  2  1 24A, is in effect for the motor vehicle and unless the driver
  2  2 has in the motor vehicle the proof of financial liability
  2  3 coverage card issued for the motor vehicle.
  2  4    2.  An insurance company transacting business in this state
  2  5 shall issue to its insured owners of motor vehicles registered
  2  6 in this state a financial liability coverage card for each
  2  7 registered motor vehicle insured.  Each financial liability
  2  8 coverage card shall identify the registration number of the
  2  9 motor vehicle insured and shall indicate the expiration date
  2 10 of the applicable insurance coverage.  The financial liability
  2 11 coverage card shall also contain the name and address of the
  2 12 insurer, the name of the insured, the type of coverage
  2 13 provided, and an emergency telephone number of the insurer.
  2 14    3.  If the financial liability coverage for a motor vehicle
  2 15 which is registered in this state is canceled or terminated
  2 16 effective prior to the expiration date indicated on the
  2 17 financial liability coverage card issued for the vehicle, the
  2 18 person to whom the financial liability coverage card was
  2 19 issued shall return the financial liability coverage card to
  2 20 the insurer which issued the card for destruction.
  2 21    4.  If a peace officer stops a motor vehicle and the driver
  2 22 is unable to provide proof of financial liability coverage,
  2 23 the peace officer shall do one of the following:
  2 24    a.  Issue a warning citation to the driver.
  2 25    b.  Issue a citation and remove the motor vehicle's license
  2 26 plates and registration from the motor vehicle which has been
  2 27 operated on the highways of this state without financial
  2 28 liability coverage being in effect for the motor vehicle, and
  2 29 remove the license plates and registration from any other
  2 30 vehicle registered to the person in violation of this section
  2 31 for which the person is unable to show proof of financial
  2 32 liability coverage.  Upon removing the license plates and
  2 33 registration the peace officer shall issue a temporary
  2 34 registration permit and forward the plates to the county
  2 35 treasurer of the county in which the plates were issued along
  3  1 with a copy of the citation issued by the peace officer.  An
  3  2 owner or driver of a motor vehicle who is charged with a
  3  3 violation of subsection 1 and whose license plates and
  3  4 registration have been removed is subject to the following:
  3  5    (1)  An owner or driver who produces to the county
  3  6 treasurer, within thirty days of the time the person's license
  3  7 plates and registration are removed, proof that financial
  3  8 liability coverage was in effect for the motor vehicle at the
  3  9 time the person was stopped and cited, shall be assessed a
  3 10 fifteen dollar administrative fee by the county treasurer who
  3 11 shall return the license plates and registration to the person
  3 12 after payment of the fee.
  3 13    (2)  An owner or driver who is unable to show that
  3 14 financial liability coverage was in effect for the motor
  3 15 vehicle at the time the person was stopped and cited, and
  3 16 signs an admission of violation on the citation, may do either
  3 17 of the following:
  3 18    (a)  Sign an admission of violation on the citation and
  3 19 remit to the county treasurer a scheduled fine of two hundred
  3 20 fifty dollars plus a fifteen dollar administrative fee.  Upon
  3 21 payment of the fine and fee, and providing proof of financial
  3 22 liability coverage to the county treasurer, the county
  3 23 treasurer shall return the license plates and registration to
  3 24 the person.
  3 25    (b)  Request an appearance before the court on the matter.
  3 26 If the matter goes before the court, and the owner or driver
  3 27 is found guilty of a violation of subsection 1, the court may
  3 28 impose a fine of two hundred fifty dollars, or the court may
  3 29 order the person to perform unpaid community service instead
  3 30 of the fine.  Upon the payment of the fine or the entry of the
  3 31 order for unpaid community service, the county treasurer shall
  3 32 return the license plates and registration to the person upon
  3 33 the person providing proof of financial liability coverage and
  3 34 paying a fifteen dollar administrative fee to the county
  3 35 treasurer.
  4  1    (3)  An owner or driver who fails to provide to the county
  4  2 treasurer, within thirty days of the time the person's
  4  3 registration plates are removed, proof that financial
  4  4 liability coverage was in effect for the motor vehicle at the
  4  5 time the person was stopped and cited, and does not sign an
  4  6 admission of violation on the citation, shall not have the
  4  7 person's license plates or registration returned.  The county
  4  8 treasurer shall destroy the plates and registration and
  4  9 provide notification to the state department of transportation
  4 10 that the plates and registration have been destroyed,
  4 11 including a copy of the citation.
  4 12    c.  Issue a citation and impound the motor vehicle.  A
  4 13 vehicle which is impounded may be claimed by a person if the
  4 14 owner provides proof of financial liability coverage and pays
  4 15 any applicable fine and the costs of towing and storage for
  4 16 the motor vehicle.  The amount for the costs of towing and
  4 17 storage shall be paid to the law enforcement agency which
  4 18 impounds the motor vehicle.  If the motor vehicle is not
  4 19 claimed within thirty days after impoundment, the motor
  4 20 vehicle may be treated as an abandoned vehicle pursuant to
  4 21 section 321.89.  If the law enforcement agency elects to treat
  4 22 the motor vehicle as abandoned, the agency shall notify the
  4 23 registered owner of the motor vehicle that the vehicle shall
  4 24 be deemed abandoned and shall be sold in the manner provided
  4 25 in section 321.89 if payment of the total cost of impoundment
  4 26 is not received within twenty-one days of the mailing of the
  4 27 notice.  Notwithstanding section 321.89, any amount received
  4 28 from the sale of the motor vehicle shall be retained by the
  4 29 law enforcement agency which impounds the vehicle.
  4 30    5.  This section applies to a motor vehicle subject to
  4 31 registration under this chapter other than a motor vehicle
  4 32 identified in section 321.18, subsections 1 through 6, and
  4 33 subsection 8.
  4 34    6.  The director of transportation and the commissioner of
  4 35 insurance shall adopt rules pursuant to chapter 17A to
  5  1 administer this section.
  5  2    Sec. 3.  Section 321.54, unnumbered paragraph 1, Code 1997,
  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 financial liability
  5  8 coverage as required under section 321.20B 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. 4.  Section 321.55, Code 1997, 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 financial liability coverage as required under section 321.20B
  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 financial liability coverage as required
  5 30 under section 321.20B 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. 5.  Section 321.57, unnumbered paragraph 1, Code 1997,
  6  4 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 financial
  6 15 liability coverage for the motor vehicle as required under
  6 16 section 321.20B.  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. 6.  Section 321.492, unnumbered paragraph 1, Code
  6 25 1997, 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.  A peace officer shall require the exhibition of the
  7  2 proof of financial liability coverage card issued for a
  7  3 vehicle if the vehicle is a motor vehicle registered in this
  7  4 state and the vehicle has been stopped for the purpose of
  7  5 issuing a citation for a traffic violation, the vehicle is
  7  6 involved in a traffic accident, or the vehicle has been
  7  7 stopped for the purpose of conducting a safety inspection.
  7  8    Sec. 7.  Section 321A.17, subsections 1 through 3, Code
  7  9 1997, are amended to read as follows:
  7 10    1.  Whenever If the department, under any a law of this
  7 11 state, suspends or revokes the license of any a person upon
  7 12 receiving record of a conviction or a forfeiture of bail or
  7 13 revokes the license of any a person pursuant to chapter 321J,
  7 14 the department shall also suspend the registration for all
  7 15 motor vehicles registered in the name of the person, except
  7 16 that the department shall not suspend the registration, unless
  7 17 otherwise required by law, if the person has previously given
  7 18 or immediately gives and thereafter maintains proof of
  7 19 financial responsibility liability coverage, as defined in
  7 20 section 321.1, with respect to all motor vehicles registered
  7 21 by the person.
  7 22    2.  Such The license and registration shall remain
  7 23 suspended or revoked and shall not at any time thereafter be
  7 24 renewed nor shall any a license be thereafter issued to such
  7 25 the person, nor shall any motor vehicle be thereafter
  7 26 registered in the name of such person until permitted under
  7 27 the motor vehicle laws of this state and not then unless and
  7 28 until the person shall give gives and thereafter maintain
  7 29 maintains proof of financial responsibility.  The registration
  7 30 shall remain suspended and a motor vehicle shall not be
  7 31 registered in the name of the person until the person gives
  7 32 and maintains proof of financial liability coverage, as
  7 33 defined in section 321.1.
  7 34    3.  If a person is not licensed, but by final order or
  7 35 judgment is convicted of or forfeits any bail or collateral
  8  1 deposited to secure an appearance for trial for any an offense
  8  2 requiring the suspension or revocation of license, or for
  8  3 operating an unregistered motor vehicle upon the highways, no
  8  4 license shall be thereafter issued to such that person and no
  8  5 motor vehicle shall continue to be registered or thereafter be
  8  6 registered in the name of such person until the person shall
  8  7 give gives and thereafter maintain maintains proof of
  8  8 financial responsibility.  A motor vehicle registered in the
  8  9 name of the person shall not continue to be registered and
  8 10 shall not thereafter be registered until the person gives and
  8 11 maintains proof of financial liability coverage, as defined in
  8 12 section 321.1.
  8 13    Sec. 8.  Section 321A.24, subsection 1, Code 1997, is
  8 14 amended to read as follows:
  8 15    1.  a.  Proof of financial responsibility may be evidenced
  8 16 by the bond of a surety company duly authorized to transact
  8 17 business within this state, or a bond with at least two
  8 18 individual sureties each owning real estate within this state,
  8 19 and together having equities equal in value to at least twice
  8 20 the amount of the bond, which real estate shall be scheduled
  8 21 in the bond approved by a judge or clerk of a the district
  8 22 court of record, and which said bond shall be conditioned for
  8 23 payment of the amounts specified in section 321A.1, subsection
  8 24 10.
  8 25    b.  Such The bond shall be filed with the department and
  8 26 shall is not be cancelable except after ten days' written
  8 27 notice to the department.  Such The director shall issue to
  8 28 the person filing the bond a bond insurance card for each
  8 29 motor vehicle registered by the person in the state.  The bond
  8 30 insurance card shall state the name and address of the person
  8 31 and the motor vehicle registration number of the vehicle for
  8 32 which the card is issued.
  8 33    c.  The bond shall constitute constitutes a lien in favor
  8 34 of the state upon the real estate so scheduled of any surety,
  8 35 which lien shall exist exists in favor of any holder of a
  9  1 final judgment against the person who has filed such the bond,
  9  2 for damages, including damages for care and loss of services,
  9  3 because of bodily injury to or death of any person, or for
  9  4 damage because of injury to or destruction of property,
  9  5 including the loss of use thereof of the property, resulting
  9  6 from the ownership, maintenance, use, or operation of a motor
  9  7 vehicle after such the bond was filed, upon the filing of
  9  8 notice to that effect by the department in the office of the
  9  9 proper clerk of the district court of the county where such
  9 10 the real estate shall be is located.  Any An individual surety
  9 11 so scheduling real estate security shall furnish satisfactory
  9 12 evidence of title thereto to the property and the nature and
  9 13 extent of all encumbrances thereon on the property and the
  9 14 value of the surety's interest therein in the property, in
  9 15 such the manner as the judge or clerk of the district court of
  9 16 record approving the bond may require requires.  The notice
  9 17 filed by the department shall contain, in addition to any
  9 18 other matters deemed by the department to be pertinent,
  9 19 contain a legal description of the real estate so scheduled,
  9 20 the name of the holder of the record title, the amount for
  9 21 which it stands as security, and the name of the person in
  9 22 whose behalf proof is so being made.  Upon the filing of such
  9 23 the notice the clerk of the district court of such county
  9 24 shall retain the same notice as part of the records of such
  9 25 the court and enter upon the encumbrance book the date and
  9 26 hour of filing, the name of the surety, the name of the record
  9 27 titleholder, the description of the real estate, and the
  9 28 further notation that a lien is charged on such the real
  9 29 estate pursuant to the filed notice filed hereunder.  From and
  9 30 after the entry of the foregoing notice upon the encumbrance
  9 31 book all persons whomsoever shall be are charged with notice
  9 32 thereof of it.
  9 33    d.  If the bond is canceled, the person who filed the bond
  9 34 shall surrender to the director all bond insurance cards
  9 35 issued to the person.
 10  1    Sec. 9.  Section 321A.25, subsection 1, Code 1997, is
 10  2 amended to read as follows:
 10  3    1.  With respect to accidents occurring on or after January
 10  4 1, 1981, and before January 1, 1983, proof of financial
 10  5 responsibility may be evidenced by the certificate of the
 10  6 state treasurer that the person named in the certificate has
 10  7 deposited with the treasurer forty thousand dollars in cash,
 10  8 or securities such as may legally be purchased by a state bank
 10  9 or for trust funds of a market value of forty thousand
 10 10 dollars; and with respect to accidents occurring on or after
 10 11 January 1, 1983, proof Proof of financial responsibility may
 10 12 be evidenced by the certificate of the state treasurer of
 10 13 state that the person named in the certificate has deposited
 10 14 with the treasurer of state fifty-five thousand dollars in
 10 15 cash, or securities such as which may legally be purchased by
 10 16 a state bank or for trust funds of a market value of fifty-
 10 17 five thousand dollars.  The treasurer of state shall promptly
 10 18 notify the director of transportation of the name and address
 10 19 of the person to whom the certificate has been issued.  Upon
 10 20 receipt of the notification, the director of transportation
 10 21 shall issue to the person a security insurance card for each
 10 22 motor vehicle registered in this state by the person.  The
 10 23 security insurance card shall state the name and address of
 10 24 the person and the registration number of the motor vehicle
 10 25 for which the card is issued.  The state treasurer of state
 10 26 shall not accept a deposit and issue a certificate for it and
 10 27 the department shall not accept the certificate unless
 10 28 accompanied by evidence that there are no unsatisfied
 10 29 judgments of any character against the depositor in the county
 10 30 where the depositor resides.
 10 31    Sec. 10.  Section 321A.32, subsection 3, Code 1997, is
 10 32 amended to read as follows:
 10 33    3.  Any A person who shall forge forges or, without
 10 34 authority, sign any signs a notice provided for under section
 10 35 321A.5 that a policy or bond is in effect, or any evidence of
 11  1 proof of financial responsibility, or any evidence of
 11  2 financial liability coverage as defined in section 321.1, or
 11  3 who files or offers for filing any such notice or evidence of
 11  4 proof knowing or having reason to believe that it is forged or
 11  5 signed without authority, shall be is guilty of a serious
 11  6 misdemeanor.
 11  7    Sec. 11.  Section 321A.34, subsections 2 and 3, Code 1997,
 11  8 are amended to read as follows:
 11  9    2.  The department may, in the department's discretion,
 11 10 upon the application of such a person, issue a certificate of
 11 11 self-insurance when if the department is satisfied that such
 11 12 the person is possessed has and will continue to be possessed
 11 13 of have the ability to pay judgments obtained against such the
 11 14 person for damages arising out of the ownership, maintenance,
 11 15 or use of any vehicle owned by such the person.  The
 11 16 department shall issue to each person who has in effect a
 11 17 valid certificate of self-insurance, a self-insurance card for
 11 18 each motor vehicle registered in this state by the person.
 11 19 The card shall state the name and address of the person and
 11 20 shall state the registration number of the motor vehicle for
 11 21 which the card was issued.
 11 22    3.  Upon not less than five days' notice and a hearing
 11 23 pursuant to such the notice, the department may upon
 11 24 reasonable grounds cancel a certificate of self-insurance.
 11 25 Failure to pay any a judgment for damages arising out of the
 11 26 ownership, maintenance, or use of any vehicle owned by such
 11 27 the self-insurer within thirty days after such the judgment
 11 28 shall have become becomes final shall constitute constitutes a
 11 29 reasonable ground for the cancellation of a certificate of
 11 30 self-insurance.  Upon the cancellation of a certificate of
 11 31 self-insurance, the person who was issued the certificate
 11 32 shall surrender to the director all self-insurance cards
 11 33 issued to the person.
 11 34    Sec. 12.  Section 321J.21, Code 1997, is amended to read as
 11 35 follows:
 12  1    321J.21  DRIVING WHILE LICENSE DENIED OR REVOKED.
 12  2    1.  A person whose motor vehicle license or nonresident
 12  3 operating privilege has been denied or revoked as provided in
 12  4 this chapter and who drives a motor vehicle upon the highways
 12  5 of this state while the license or privilege is denied or
 12  6 revoked commits a serious misdemeanor, punishable as a
 12  7 scheduled fine under section 805.8, subsection 2, paragraph
 12  8 "ae", except that, notwithstanding section 805.12, the clerk
 12  9 of the district court shall remit one-quarter of the fine to
 12 10 the law enforcement agency of the peace officer making the
 12 11 arrest.  If the court determines that the defendant is guilty
 12 12 of the offense but is unable to pay the fine, the court may
 12 13 alternatively order the defendant to perform unpaid community
 12 14 service instead of the fine.
 12 15    2.  The In addition to the imposition of the fine or
 12 16 sentence of community service, the department, upon receiving
 12 17 the record of the conviction of a person under this section
 12 18 upon a charge of driving a motor vehicle while the license of
 12 19 the person was revoked or denied, shall extend the period of
 12 20 revocation or denial for an additional like period, and the
 12 21 department shall not issue a new license during the additional
 12 22 period.
 12 23    Sec. 13.  Section 326.25, Code 1997, is amended by adding
 12 24 the following new subsection:
 12 25    NEW SUBSECTION.  4.  Upon a determination that the motor
 12 26 vehicle does not have financial liability coverage as required
 12 27 under section 321.20B.
 12 28    Sec. 14.  Section 805.8, subsection 2, Code 1997, is
 12 29 amended by adding the following new paragraph:
 12 30    NEW PARAGRAPH.  ad.  If, in connection with a motor vehicle
 12 31 accident, a person is charged and found guilty of a violation
 12 32 of section 321.20B, subsection 1, the scheduled fine is five
 12 33 hundred dollars, otherwise the scheduled fine for a violation
 12 34 of section 321.20B, subsection 1, is two hundred fifty
 12 35 dollars.  If the violation is admitted and section 805.9
 13  1 applies, the violation shall be chargeable upon uniform
 13  2 citation and complaint, indictment, or county attorney's
 13  3 information.  If the violation is not admitted, the violation
 13  4 shall be chargeable only upon indictment or county attorney's
 13  5 information.  In either case, if the defendant is convicted,
 13  6 the conviction shall be of an indictable offense.
 13  7 Notwithstanding section 805.12, fines collected pursuant to
 13  8 this paragraph shall be submitted to the state court
 13  9 administrator and distributed fifty percent to the victim
 13 10 compensation fund established in section 912.14, twenty-five
 13 11 percent to the county in which such fine is imposed, and
 13 12 twenty-five percent to the general fund of the state.
 13 13    Sec. 15.  Section 805.8, subsection 2, Code 1997, is
 13 14 amended by adding the following new paragraph:
 13 15    NEW PARAGRAPH.  ae.  For violation of section 321J.21, the
 13 16 scheduled fine is one thousand dollars.  If the violation is
 13 17 admitted and section 805.9 applies, the violation shall be
 13 18 chargeable upon uniform citation and complaint, indictment, or
 13 19 county attorney's information.  If the violation is not
 13 20 admitted, the violation shall be chargeable only upon
 13 21 indictment or county attorney's information.  In either case,
 13 22 if the defendant is convicted, the conviction shall be of an
 13 23 indictable offense.
 13 24    Sec. 16.  EFFECTIVE DATES – RULES – NOTIFICATION.
 13 25 Sections 1 through 11 and 13 and 14 of this Act take effect
 13 26 January 1, 1998.  However, in order to implement this Act, the
 13 27 insurance division of the department of commerce and the
 13 28 director of transportation shall each adopt rules as required
 13 29 under this Act which shall be effective by October 1, 1997.
 13 30 The treasurer of state shall notify the director of
 13 31 transportation of the names and addresses of persons who are
 13 32 issued valid certificates under section 321A.25, subsection 1,
 13 33 Code 1997, by November 1, 1997, and after that date the
 13 34 treasurer of state shall notify the director of transportation
 13 35 as required under section 9 of this Act.  Insurance carriers
 14  1 authorized to do business in this state and the director of
 14  2 transportation shall distribute proof of insurance cards as
 14  3 required under this Act by December 1, 1997.
 14  4    This section, being deemed of immediate importance, takes
 14  5 effect upon enactment.
 14  6    Sections 12 and 15 of this Act take effect July 1, 1997.
 14  7    Sec. 17.  CONDITIONAL EFFECTIVENESS PROVISION.
 14  8 Notwithstanding section 16 of this Act, sections 1 through 11
 14  9 and 13 and 14 of this Act shall not take effect unless an
 14 10 appropriation is made in accordance with section 25B.2,
 14 11 subsection 3.  
 14 12                           EXPLANATION
 14 13    This bill prohibits a person from driving a motor vehicle
 14 14 registered in this state on the highways of this state unless
 14 15 financial liability coverage is in effect for the motor
 14 16 vehicle.  A violation is subject to a $500 fine if the
 14 17 violation is in connection with a motor vehicle accident,
 14 18 otherwise the scheduled fine is $250.  Pursuant to Article 1,
 14 19 section 11, of the Constitution of the State of Iowa, because
 14 20 the fine is greater than $100, it must be treated as an
 14 21 indictable offense.  The bill provides that fines collected
 14 22 are to be distributed by the state court administrator 50
 14 23 percent to the victim compensation fund, 25 percent to the
 14 24 county in which the fine is collected, and 25 percent to the
 14 25 general fund of the state.
 14 26    The driver of the motor vehicle is also subject to a
 14 27 conviction for a violation if the driver does not have in the
 14 28 motor vehicle a proof of financial liability coverage card
 14 29 issued for the motor vehicle.  However, a person charged with
 14 30 not having in the motor vehicle a proof of financial liability
 14 31 coverage card will not be convicted if the person produces in
 14 32 court, within 30 days after being charged, proof that the
 14 33 motor vehicle was covered by financial liability coverage at
 14 34 the time of the driver's arrest.  Under the bill, financial
 14 35 liability coverage includes either liability insurance, the
 15  1 filing of a bond, the deposit of money or securities, or a
 15  2 certification of self-insurance.
 15  3    The bill provides that if a peace officer stops a motor
 15  4 vehicle and the driver is unable to provide proof of financial
 15  5 liability coverage, the peace officer is to issue a warning
 15  6 citation to the driver, issue a citation and remove the
 15  7 license plates and registration from the motor vehicle which
 15  8 has been operated on the highways of this state without
 15  9 financial liability coverage being in effect for the motor
 15 10 vehicle, and remove the license plates and registration from
 15 11 any other vehicle registered to the person in violation of
 15 12 this section for which the person is unable to show proof of
 15 13 financial liability coverage, or issue a citation and impound
 15 14 the motor vehicle.  The bill provides for the return of the
 15 15 license plates and registration, or vehicle upon the payment
 15 16 of certain costs, including a $15 administrative fee to the
 15 17 county treasurer.  A vehicle which is impounded and which is
 15 18 not claimed is deemed abandoned.  Any amount received from the
 15 19 sale of the motor vehicle is to be retained by the law
 15 20 enforcement agency impounding the vehicle.
 15 21    Proof of financial liability coverage is not required for
 15 22 issuance of a certificate of title.
 15 23    The bill creates and internally cites new Code section
 15 24 321.20B and new subsections 24A and 54A of Code section 321.1.
 15 25    This bill provides for a scheduled fine of $1,000 for
 15 26 driving a motor vehicle when the defendant's license has been
 15 27 revoked or denied for operating a motor vehicle while
 15 28 intoxicated under Code chapter 321J.  If the court determines
 15 29 the defendant cannot afford to pay such a fine, the court may
 15 30 alternatively sentence the defendant to perform community
 15 31 service as determined by the court.  One-quarter of the fine
 15 32 amount shall be allocated by the court to the arresting
 15 33 entity.  Pursuant to Article 1, section 11, of the Iowa
 15 34 Constitution, because the fine is greater than $100, it must
 15 35 be treated as an indictable offense.
 16  1    The bill generally takes effect January 1, 1998, but
 16  2 certain administrative actions are required prior to that date
 16  3 to allow for the bill's implementation.
 16  4    This bill may create a state mandate under chapter 25B.
 16  5 The bill's effectiveness is conditioned upon an appropriation
 16  6 being made in accordance with Code section 25B.2, which
 16  7 provides that a political subdivision is not required to
 16  8 perform a mandated activity unless the legislation specifies
 16  9 the amount or proportion of the cost of the state mandate
 16 10 which the state is to pay annually.  
 16 11 LSB 2495SS 77
 16 12 mj/jw/5
     
Text: SF00211                           Text: SF00213
Text: SF00200 - SF00299                 Text: SF Index
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