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Senate File 366

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.  34A.  "Liability insurance 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 insurance card" means
  1 24 either a liability insurance card issued under section
  1 25 321.20B, a bond insurance card issued under section 321A.24, a
  1 26 security insurance card issued under section 321A.25, or a
  1 27 self-insurance card issued under section 321A.34.
  1 28    Sec. 2.  Section 321.20, Code 1997, is amended by adding
  1 29 the following new subsection:
  1 30    NEW SUBSECTION.  6.  Proof of liability insurance coverage
  1 31 if the registration is for a motor vehicle.
  1 32    Sec. 3.  NEW SECTION.  321.20B  PROOF OF SECURITY AGAINST
  1 33 LIABILITY.
  1 34    1.  Notwithstanding chapter 321A, which requires certain
  1 35 persons to maintain proof of financial responsibility, a
  2  1 person shall not drive a motor vehicle which is registered in
  2  2 this state on the highways of this state unless liability
  2  3 insurance coverage as defined in section 321.1, subsection
  2  4 34A, is in effect for the motor vehicle and unless the driver
  2  5 has in the motor vehicle the proof of insurance card issued
  2  6 for the motor vehicle.
  2  7    2.  The department shall not register a motor vehicle or
  2  8 issue a registration certificate or registration plates unless
  2  9 the applicant has submitted proof of liability insurance
  2 10 coverage.  This subsection shall only apply to the applicant's
  2 11 initial registration of the motor vehicle and does not apply
  2 12 to a subsequent renewal of registration of the motor vehicle,
  2 13 unless the applicant is required to maintain proof of
  2 14 financial responsibility under chapter 321A or other
  2 15 applicable law.
  2 16    3.  An insurance company transacting business in this state
  2 17 shall issue to its insured owners of motor vehicles registered
  2 18 in this state a liability insurance card for each registered
  2 19 motor vehicle insured.  Each liability insurance card shall
  2 20 identify the registration number of the motor vehicle insured
  2 21 and shall indicate the expiration date of the applicable
  2 22 insurance coverage.  The liability insurance card shall also
  2 23 contain the name and address of the insured and insurer, the
  2 24 type of coverage provided, and an emergency telephone number
  2 25 of the insurer.
  2 26    4.  If the liability insurance coverage for a motor vehicle
  2 27 which is registered in this state is canceled or terminated
  2 28 effective prior to the expiration date indicated on the
  2 29 liability insurance card issued for the vehicle, the person to
  2 30 whom the liability insurance card was issued shall return the
  2 31 liability insurance card to the insurer which issued the card.
  2 32    5.  If a peace officer stops a motor vehicle and the driver
  2 33 is unable to provide proof of insurance, the peace officer
  2 34 shall do one of the following:
  2 35    a.  Issue a warning citation to the driver.
  3  1    b.  Issue a citation and remove the registration plates
  3  2 from the motor vehicle which has been operated on the highways
  3  3 of this state without liability insurance coverage being in
  3  4 effect for the motor vehicle, and remove the registration
  3  5 plates from any other vehicle registered to the person in
  3  6 violation of this section for which the person is unable to
  3  7 show proof of liability insurance coverage.  Upon removing the
  3  8 registration plates the peace officer shall issue a temporary
  3  9 registration permit and forward the plates to the county
  3 10 treasurer of the county in which the plates were issued along
  3 11 with a copy of the citation issued by the peace officer.  An
  3 12 owner or driver of a motor vehicle who is charged with a
  3 13 violation of subsection 1 and whose registration plates have
  3 14 been removed is subject to the following:
  3 15    (1)  An owner or driver who produces to the county
  3 16 treasurer, within thirty days of the time the person's
  3 17 registration plates are removed, proof that liability
  3 18 insurance coverage was in effect for the motor vehicle at the
  3 19 time the person was stopped and cited, shall be assessed a
  3 20 fifteen dollar administrative fee by the county treasurer who
  3 21 shall return the registration plates to the person after
  3 22 payment of the fee.
  3 23    (2)  An owner or driver who is unable to show that
  3 24 liability insurance coverage was in effect for the motor
  3 25 vehicle at the time the person was stopped and cited, and
  3 26 signs an admission of violation on the citation, may do either
  3 27 of the following:
  3 28    (a)  Sign an admission of violation on the citation and
  3 29 remit to the county treasurer a scheduled fine of two hundred
  3 30 fifty dollars plus a fifteen dollar administrative fee.  Upon
  3 31 payment of the fine and fee, and providing proof of insurance
  3 32 to the county treasurer, the county treasurer shall return the
  3 33 registration plates to the person.
  3 34    (b)  Request an appearance before the court on the matter.
  3 35 If the matter goes before the court, and the owner or driver
  4  1 is found guilty of a violation of subsection 1, the court may
  4  2 impose a fine of two hundred fifty dollars, or the court may
  4  3 order the person to perform unpaid community service instead
  4  4 of the fine.  Upon the payment of the fine or the entry of the
  4  5 order for unpaid community service, the county treasurer shall
  4  6 return the registration plates to the person upon the person
  4  7 providing proof of insurance and paying a fifteen dollar
  4  8 administrative fee to the county treasurer.
  4  9    (3)  An owner or driver who fails to provide to the county
  4 10 treasurer, within thirty days of the time the person's
  4 11 registration plates are removed, proof that liability
  4 12 insurance coverage was in effect for the motor vehicle at the
  4 13 time the person was stopped and cited, shall not have the
  4 14 person's registration plates returned.  The county treasurer
  4 15 shall destroy the plates and provide notification to the state
  4 16 department of transportation that the plates have been
  4 17 destroyed, including a copy of the citation.
  4 18    c.  Issue a citation and impound the motor vehicle.  A
  4 19 vehicle which is impounded may be claimed by a person if the
  4 20 owner provides proof of liability insurance coverage and pays
  4 21 any applicable fine and the costs of towing and storage for
  4 22 the motor vehicle.  The amount for the costs of towing and
  4 23 storage shall be paid to the law enforcement agency which
  4 24 impounds the motor vehicle.  If the motor vehicle is not
  4 25 claimed within thirty days after impoundment, the motor
  4 26 vehicle may be treated as an abandoned vehicle pursuant to
  4 27 section 321.89.  If the law enforcement agency elects to treat
  4 28 the motor vehicle as abandoned, the agency shall notify the
  4 29 registered owner of the motor vehicle that the vehicle shall
  4 30 be deemed abandoned and shall be sold in the manner provided
  4 31 in section 321.89 if payment of the total cost of impoundment
  4 32 is not received within twenty-one days of the mailing of the
  4 33 notice.
  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. 4.  Section 321.24, Code 1997, is amended by adding
  5  3 the following new unnumbered paragraph:
  5  4    NEW UNNUMBERED PARAGRAPH.  Before issuing a new
  5  5 registration for a motor vehicle, the county treasurer shall
  5  6 verify that the applicant has submitted proof of liability
  5  7 insurance coverage as required under section 321.20B.  If
  5  8 proof is not submitted, registration shall not be issued.
  5  9 Proof of liability insurance coverage is not required for
  5 10 issuance of a certificate of title.
  5 11    Sec. 5.  Section 321.30, Code 1997, is amended by adding
  5 12 the following new subsection preceding the last unnumbered
  5 13 paragraph:
  5 14    NEW SUBSECTION.  14.  If the application is for a new
  5 15 registration of a motor vehicle and the application does not
  5 16 include proof of liability insurance coverage as required
  5 17 under section 321.20B.  However, proof of liability insurance
  5 18 is not required for issuance of a certificate of title.
  5 19    Sec. 6.  Section 321.46, subsection 2, Code 1997, is
  5 20 amended by adding the following new unnumbered paragraph:
  5 21    NEW UNNUMBERED PARAGRAPH.  Prior to issuing a new
  5 22 registration for a motor vehicle, the county treasurer shall
  5 23 verify that the applicant has submitted proof of liability
  5 24 insurance coverage as required under section 321.20B.  If
  5 25 proof is not submitted, the registration shall not be issued.
  5 26 Proof of liability insurance coverage is not required for
  5 27 issuance of a certificate of title.
  5 28    Sec. 7.  Section 321.54, unnumbered paragraph 1, Code 1997,
  5 29 is amended to read as follows:
  5 30    Nonresident owners of foreign vehicles operated within this
  5 31 state for the intrastate transportation of persons or property
  5 32 for compensation or for the intrastate transportation of
  5 33 merchandise shall register and maintain liability insurance
  5 34 coverage as required under section 321.20B for each such
  5 35 vehicle and pay the same fees therefor as is required with
  6  1 reference to for like vehicles owned by residents of this
  6  2 state.
  6  3    Sec. 8.  Section 321.55, Code 1997, is amended to read as
  6  4 follows:
  6  5    321.55  REGISTRATION REQUIRED FOR CERTAIN VEHICLES OWNED OR
  6  6 OPERATED BY NONRESIDENTS.
  6  7    A nonresident owner or operator engaged in remunerative
  6  8 employment within the state or carrying on business within the
  6  9 state and owning or operating a motor vehicle, trailer, or
  6 10 semitrailer within the state shall register and maintain
  6 11 liability insurance coverage as required under section 321.20B
  6 12 for each such vehicle and pay the same fees for registration
  6 13 as are paid for like vehicles owned by residents of this
  6 14 state.  However, this paragraph does not apply to a person
  6 15 commuting from the person's residence in another state or
  6 16 whose employment is seasonal or temporary, not exceeding
  6 17 ninety days.
  6 18    A nonresident owner of a motor vehicle operated within the
  6 19 state by a resident of the state shall register the vehicle
  6 20 and shall maintain liability insurance coverage as required
  6 21 under section 321.20B for the vehicle.  The nonresident owner
  6 22 shall pay the same fees for registration as are paid for like
  6 23 vehicles owned by residents of this state.  However,
  6 24 registration under this paragraph does not apply to is not
  6 25 required for vehicles being operated by residents temporarily,
  6 26 not exceeding ninety days.  It is unlawful for a resident to
  6 27 operate within the state an unregistered motor vehicle
  6 28 required to be registered under this paragraph.
  6 29    Sec. 9.  Section 321.57, unnumbered paragraph 1, Code 1997,
  6 30 is amended to read as follows:
  6 31    A dealer owning any vehicle of a type otherwise required to
  6 32 be registered hereunder under this chapter may operate or move
  6 33 the same vehicle upon the highways solely for purposes of
  6 34 transporting, testing, demonstrating, or selling the same
  6 35 vehicle without registering each such the vehicle, upon
  7  1 condition that any such the vehicle display in the manner
  7  2 prescribed in sections 321.37 and 321.38 a special plate
  7  3 issued to such the owner as provided in sections 321.58 to
  7  4 321.62.  In addition to the foregoing, a However, if the
  7  5 vehicle is a motor vehicle the dealer shall maintain liability
  7  6 insurance coverage for the motor vehicle as required under
  7  7 section 321.20B.  A new car dealer or a used car dealer may
  7  8 operate or move upon the highways any a new or used car or
  7  9 trailer owned by the dealer for either private or business
  7 10 purposes without registering the same providing, (1) such it
  7 11 if the new or used car or trailer is in the dealer's inventory
  7 12 and is continuously offered for sale at retail, and (2) there
  7 13 is displayed thereon on it a special plate issued to such the
  7 14 dealer as provided in sections 321.58 to 321.62.
  7 15    Sec. 10.  Section 321.492, unnumbered paragraph 1, Code
  7 16 1997, is amended to read as follows:
  7 17    Any A peace officer is authorized to stop any a vehicle to
  7 18 require exhibition of the driver's motor vehicle license, to
  7 19 require exhibition of the proof of insurance card issued for
  7 20 the vehicle if the vehicle is a motor vehicle registered in
  7 21 this state, to serve a summons or memorandum of traffic
  7 22 violation, to inspect the condition of the vehicle, to inspect
  7 23 the vehicle with reference to size, weight, cargo, log book,
  7 24 bills of lading or other manifest of employment, tires, and
  7 25 safety equipment, or to inspect the registration certificate,
  7 26 the compensation certificate, travel order, or permit of the
  7 27 vehicle.  A peace officer shall require the exhibition of the
  7 28 proof of insurance card issued for a vehicle if the vehicle is
  7 29 a motor vehicle registered in this state and the vehicle has
  7 30 been stopped for the purpose of issuing a citation for a
  7 31 traffic violation, the vehicle is involved in a traffic
  7 32 accident, or the vehicle has been stopped for the purpose of
  7 33 conducting a safety inspection.
  7 34    Sec. 11.  Section 321A.17, subsections 1 through 3, Code
  7 35 1997, are amended to read as follows:
  8  1    1.  Whenever If the department, under any a law of this
  8  2 state, suspends or revokes the license of any a person upon
  8  3 receiving record of a conviction or a forfeiture of bail or
  8  4 revokes the license of any a person pursuant to chapter 321J,
  8  5 the department shall also suspend the registration for all
  8  6 motor vehicles registered in the name of the person, except
  8  7 that the department shall not suspend the registration, unless
  8  8 otherwise required by law, if the person has previously given
  8  9 or immediately gives and thereafter maintains proof of
  8 10 financial responsibility liability insurance coverage, as
  8 11 defined in section 321.1, with respect to all motor vehicles
  8 12 registered by the person.
  8 13    2.  Such The license and registration shall remain
  8 14 suspended or revoked and shall not at any time thereafter be
  8 15 renewed nor shall any a license be thereafter issued to such
  8 16 the person, nor shall any motor vehicle be thereafter
  8 17 registered in the name of such person until permitted under
  8 18 the motor vehicle laws of this state and not then unless and
  8 19 until the person shall give gives and thereafter maintain
  8 20 maintains proof of financial responsibility.  The registration
  8 21 shall remain suspended and a motor vehicle shall not be
  8 22 registered in the name of the person until the person gives
  8 23 and maintains proof of liability insurance coverage, as
  8 24 defined in section 321.1, subsection 34A.
  8 25    3.  If a person is not licensed, but by final order or
  8 26 judgment is convicted of or forfeits any bail or collateral
  8 27 deposited to secure an appearance for trial for any an offense
  8 28 requiring the suspension or revocation of license, or for
  8 29 operating an unregistered motor vehicle upon the highways, no
  8 30 license shall be thereafter issued to such that person and no
  8 31 motor vehicle shall continue to be registered or thereafter be
  8 32 registered in the name of such person until the person shall
  8 33 give gives and thereafter maintain maintains proof of
  8 34 financial responsibility.  A motor vehicle registered in the
  8 35 name of the person shall not continue to be registered and
  9  1 shall not thereafter be registered until the person gives and
  9  2 maintains proof of liability insurance coverage, as defined in
  9  3 section 321.1.
  9  4    Sec. 12.  Section 321A.24, subsection 1, Code 1997, is
  9  5 amended to read as follows:
  9  6    1.  a.  Proof of financial responsibility may be evidenced
  9  7 by the bond of a surety company duly authorized to transact
  9  8 business within this state, or a bond with at least two
  9  9 individual sureties each owning real estate within this state,
  9 10 and together having equities equal in value to at least twice
  9 11 the amount of the bond, which real estate shall be scheduled
  9 12 in the bond approved by a judge or clerk of a the district
  9 13 court of record, and which said bond shall be conditioned for
  9 14 payment of the amounts specified in section 321A.1, subsection
  9 15 10.
  9 16    b.  Such The bond shall be filed with the department and
  9 17 shall is not be cancelable except after ten days' written
  9 18 notice to the department.  Such The director shall issue to
  9 19 the person filing the bond a bond insurance card for each
  9 20 motor vehicle registered by the person in the state.  The bond
  9 21 insurance card shall state the name and address of the person
  9 22 and the motor vehicle registration number of the vehicle for
  9 23 which the card is issued.
  9 24    c.  The bond shall constitute constitutes a lien in favor
  9 25 of the state upon the real estate so scheduled of any surety,
  9 26 which lien shall exist exists in favor of any holder of a
  9 27 final judgment against the person who has filed such the bond,
  9 28 for damages, including damages for care and loss of services,
  9 29 because of bodily injury to or death of any person, or for
  9 30 damage because of injury to or destruction of property,
  9 31 including the loss of use thereof of the property, resulting
  9 32 from the ownership, maintenance, use, or operation of a motor
  9 33 vehicle after such the bond was filed, upon the filing of
  9 34 notice to that effect by the department in the office of the
  9 35 proper clerk of the district court of the county where such
 10  1 the real estate shall be is located.  Any An individual surety
 10  2 so scheduling real estate security shall furnish satisfactory
 10  3 evidence of title thereto to the property and the nature and
 10  4 extent of all encumbrances thereon on the property and the
 10  5 value of the surety's interest therein in the property, in
 10  6 such the manner as the judge or clerk of the district court of
 10  7 record approving the bond may require requires.  The notice
 10  8 filed by the department shall contain, in addition to any
 10  9 other matters deemed by the department to be pertinent,
 10 10 contain a legal description of the real estate so scheduled,
 10 11 the name of the holder of the record title, the amount for
 10 12 which it stands as security, and the name of the person in
 10 13 whose behalf proof is so being made.  Upon the filing of such
 10 14 the notice the clerk of the district court of such county
 10 15 shall retain the same notice as part of the records of such
 10 16 the court and enter upon the encumbrance book the date and
 10 17 hour of filing, the name of the surety, the name of the record
 10 18 titleholder, the description of the real estate, and the
 10 19 further notation that a lien is charged on such the real
 10 20 estate pursuant to the filed notice filed hereunder.  From and
 10 21 after the entry of the foregoing notice upon the encumbrance
 10 22 book all persons whomsoever shall be are charged with notice
 10 23 thereof of it.
 10 24    d.  If the bond is canceled, the person who filed the bond
 10 25 shall surrender to the director all bond insurance cards
 10 26 issued to the person.
 10 27    Sec. 13.  Section 321A.25, subsection 1, Code 1997, is
 10 28 amended to read as follows:
 10 29    1.  With respect to accidents occurring on or after January
 10 30 1, 1981, and before January 1, 1983, proof of financial
 10 31 responsibility may be evidenced by the certificate of the
 10 32 state treasurer that the person named in the certificate has
 10 33 deposited with the treasurer forty thousand dollars in cash,
 10 34 or securities such as may legally be purchased by a state bank
 10 35 or for trust funds of a market value of forty thousand
 11  1 dollars; and with respect to accidents occurring on or after
 11  2 January 1, 1983, proof Proof of financial responsibility may
 11  3 be evidenced by the certificate of the state treasurer of
 11  4 state that the person named in the certificate has deposited
 11  5 with the treasurer of state fifty-five thousand dollars in
 11  6 cash, or securities such as which may legally be purchased by
 11  7 a state bank or for trust funds of a market value of fifty-
 11  8 five thousand dollars.  The treasurer of state shall promptly
 11  9 notify the director of transportation of the name and address
 11 10 of the person to whom the certificate has been issued.  Upon
 11 11 receipt of the notification, the director of transportation
 11 12 shall issue to the person a security insurance card for each
 11 13 motor vehicle registered in this state by the person.  The
 11 14 security insurance card shall state the name and address of
 11 15 the person and the registration number of the motor vehicle
 11 16 for which the card is issued.  The state treasurer of state
 11 17 shall not accept a deposit and issue a certificate for it and
 11 18 the department shall not accept the certificate unless
 11 19 accompanied by evidence that there are no unsatisfied
 11 20 judgments of any character against the depositor in the county
 11 21 where the depositor resides.
 11 22    Sec. 14.  Section 321A.32, subsection 3, Code 1997, is
 11 23 amended to read as follows:
 11 24    3.  Any A person who shall forge forges or, without
 11 25 authority, sign any signs a notice provided for under section
 11 26 321A.5 that a policy or bond is in effect, or any evidence of
 11 27 proof of financial responsibility, or any evidence of
 11 28 liability insurance coverage as defined in section 321.1, or
 11 29 who files or offers for filing any such notice or evidence of
 11 30 proof knowing or having reason to believe that it is forged or
 11 31 signed without authority, shall be is guilty of a serious
 11 32 misdemeanor.
 11 33    Sec. 15.  Section 321A.34, subsections 2 and 3, Code 1997,
 11 34 are amended to read as follows:
 11 35    2.  The department may, in the department's discretion,
 12  1 upon the application of such a person, issue a certificate of
 12  2 self-insurance when if the department is satisfied that such
 12  3 the person is possessed has and will continue to be possessed
 12  4 of have the ability to pay judgments obtained against such the
 12  5 person for damages arising out of the ownership, maintenance,
 12  6 or use of any vehicle owned by such the person.  The
 12  7 department shall issue to each person who has in effect a
 12  8 valid certificate of self-insurance, a self-insurance card for
 12  9 each motor vehicle registered in this state by the person.
 12 10 The card shall state the name and address of the person and
 12 11 shall state the registration number of the motor vehicle for
 12 12 which the card was issued.
 12 13    3.  Upon not less than five days' notice and a hearing
 12 14 pursuant to such the notice, the department may upon
 12 15 reasonable grounds cancel a certificate of self-insurance.
 12 16 Failure to pay any a judgment for damages arising out of the
 12 17 ownership, maintenance, or use of any vehicle owned by such
 12 18 the self-insurer within thirty days after such the judgment
 12 19 shall have become becomes final shall constitute constitutes a
 12 20 reasonable ground for the cancellation of a certificate of
 12 21 self-insurance.  Upon the cancellation of a certificate of
 12 22 self-insurance, the person who was issued the certificate
 12 23 shall surrender to the director all self-insurance cards
 12 24 issued to the person.
 12 25    Sec. 16.  Section 326.6, Code 1997, is amended by adding
 12 26 the following new subsection:
 12 27    NEW SUBSECTION.  4.  Commercial vehicles shall not be
 12 28 registered proportionally unless the owners submit to the
 12 29 department proof of liability insurance coverage for the
 12 30 vehicles as required under section 321.20B.
 12 31    Sec. 17.  Section 326.7, unnumbered paragraph 1, Code 1997,
 12 32 is amended to read as follows:
 12 33    Notwithstanding any other law to the contrary, and as As an
 12 34 alternative to the procedure set out in section 326.6, the
 12 35 department may enter into agreements providing for
 13  1 proportional registration between this state and other
 13  2 jurisdictions of fleets of commercial vehicles owned by
 13  3 residents or nonresidents engaged in interstate commerce or
 13  4 simultaneously engaged in interstate and intrastate commerce
 13  5 on the basis of compact miles.  However, commercial vehicles
 13  6 shall not be registered proportionally unless the owner
 13  7 submits proof of liability insurance coverage for the vehicles
 13  8 as required under section 321.20B.
 13  9    Sec. 18.  Section 326.11, Code 1997, is amended to read as
 13 10 follows:
 13 11    326.11  SUBSEQUENTLY ACQUIRED VEHICLES.
 13 12    Vehicles acquired by a fleet owner after the commencement
 13 13 of the registration year and subsequently added to the fleet
 13 14 shall be prorated by applying the mileage percentage used in
 13 15 the original application for such the fleet for such the
 13 16 registration period to registration fees due under chapter 321
 13 17 but in no case less than that required by section 326.10.  A
 13 18 supplemental report shall be filed with the department not
 13 19 later than ten days after such an addition to the fleet and
 13 20 shall include proof that the additional motor vehicles have
 13 21 liability insurance coverage as required under section
 13 22 321.20B.
 13 23    The director may issue temporary written authorization to
 13 24 carriers for vehicles acquired by a fleet owner and added to
 13 25 the fleet owner's prorate fleet after the beginning of the
 13 26 registration year.  Temporary authorization shall not be
 13 27 issued unless the owner submits proof that the additional
 13 28 motor vehicles have liability insurance coverage as defined in
 13 29 section 321.1.  The temporary authority shall permit the
 13 30 operation of a commercial vehicle until permanent
 13 31 identification is issued, except that the temporary authority
 13 32 shall expire after ninety days.
 13 33    Sec. 19.  Section 326.25, Code 1997, is amended by adding
 13 34 the following new subsection:
 13 35    NEW SUBSECTION.  4.  Upon a determination that the motor
 14  1 vehicle does not have liability insurance coverage as required
 14  2 under section 321.20B.
 14  3    Sec. 20.  Section 805.8, subsection 2, Code 1997, is
 14  4 amended by adding the following new paragraph:
 14  5    NEW PARAGRAPH.  ad.  If, in connection with a motor vehicle
 14  6 accident, a person is charged and found guilty of a violation
 14  7 of section 321.20B, subsection 1, the scheduled fine is five
 14  8 hundred dollars, otherwise the scheduled fine for a violation
 14  9 of section 321.20B, subsection 1, is two hundred fifty
 14 10 dollars.  If the violation is admitted and section 805.9
 14 11 applies, the violation shall be chargeable upon uniform
 14 12 citation and complaint, indictment, or county attorney's
 14 13 information.  If the violation is not admitted, the violation
 14 14 shall be chargeable only upon indictment or county attorney's
 14 15 information.  In either case, if the defendant is convicted,
 14 16 the conviction shall be of an indictable offense.
 14 17 Notwithstanding section 805.12, fines collected pursuant to
 14 18 this paragraph shall be submitted to the state court
 14 19 administrator and distributed fifty percent to the victim
 14 20 compensation fund established in section 912.14, twenty-five
 14 21 percent to the county in which such fine is imposed, and
 14 22 twenty-five percent to the general fund of the state.
 14 23    Sec. 21.  EFFECTIVE DATES – RULES – NOTIFICATION.
 14 24 Sections 1 through 20 of this Act take effect January 1, 1998.
 14 25 However, in order to implement this Act, the insurance
 14 26 division of the department of commerce and the director of
 14 27 transportation shall each adopt rules as required under this
 14 28 Act which shall be effective by October 1, 1997.  The
 14 29 treasurer of state shall notify the director of transportation
 14 30 of the names and addresses of persons who are issued valid
 14 31 certificates under section 321A.25, subsection 1, Code 1997,
 14 32 by November 1, 1997, and after that date the treasurer of
 14 33 state shall notify the director of transportation as required
 14 34 under section 13 of this Act.  Insurance carriers authorized
 14 35 to do business in this state and the director of
 15  1 transportation shall distribute proof of insurance cards as
 15  2 required under this Act by December 1, 1997.
 15  3    This section, being deemed of immediate importance, takes
 15  4 effect upon enactment.
 15  5    Sec. 22.  CONDITIONAL EFFECTIVENESS PROVISION.
 15  6 Notwithstanding section 21 of this Act, this Act shall not
 15  7 take effect unless an appropriation is made in accordance with
 15  8 section 25B.2, subsection 3.  
 15  9                           EXPLANATION
 15 10    This bill prohibits a person from driving a motor vehicle
 15 11 registered in this state on the highways of this state unless
 15 12 liability insurance coverage is in effect for the motor
 15 13 vehicle.  A violation is subject to a $500 fine if the
 15 14 violation is in connection with a motor vehicle accident,
 15 15 otherwise the scheduled fine is $250.  Pursuant to Article 1,
 15 16 section 11, of the Iowa Constitution, because the fine is
 15 17 greater than $100, it must be treated as an indictable
 15 18 offense.
 15 19    The driver of the motor vehicle is also subject to a
 15 20 conviction for a violation if the driver does not have in the
 15 21 motor vehicle a proof of insurance card issued for the motor
 15 22 vehicle.  However, a person charged with not having in the
 15 23 motor vehicle a proof of insurance card will not be convicted
 15 24 if the person produces in court, within 30 days after being
 15 25 charged, proof that the motor vehicle was covered by liability
 15 26 insurance at the time of the driver's arrest.  Under the bill,
 15 27 liability insurance coverage includes either liability
 15 28 insurance, the filing of a bond, the deposit of money or
 15 29 securities, or a certification of self-insurance.
 15 30    The bill provides that if a peace officer stops a motor
 15 31 vehicle and the driver is unable to provide proof of
 15 32 insurance, the peace officer is to issue a warning citation to
 15 33 the driver, issue a citation and remove the registration
 15 34 plates from the motor vehicle which has been operated on the
 15 35 highways of this state without liability insurance coverage
 16  1 being in effect for the motor vehicle, and remove the
 16  2 registration plates from any other vehicle registered to the
 16  3 person in violation of this section for which the person is
 16  4 unable to show proof of liability insurance coverage, or issue
 16  5 a citation and impound the motor vehicle.  The bill provides
 16  6 for the return of the registration plates or vehicle upon the
 16  7 payment of certain costs, including a $15 administrative fee
 16  8 to the county treasurer.  A vehicle which is impounded and
 16  9 which is not claimed is deemed abandoned.
 16 10    The bill requires proof of liability insurance coverage
 16 11 before registering a motor vehicle for the first time in this
 16 12 state.  However, proof of liability insurance coverage is not
 16 13 required for issuance of a certificate of title.
 16 14    The bill creates and internally cites new section 321.20B
 16 15 and new subsections 34A and 54A of section 321.1.
 16 16    The bill generally takes effect January 1, 1998, but
 16 17 certain administrative actions are required prior to that date
 16 18 to allow for the bill's implementation.
 16 19    This bill may create a state mandate under chapter 25B.
 16 20 The bill's effectiveness is conditioned upon an appropriation
 16 21 being made in accordance with section 25B.2, which provides
 16 22 that a political subdivision is not required to perform a
 16 23 mandated activity unless the legislation specifies the amount
 16 24 or proportion of the cost of the state mandate which the state
 16 25 is to pay annually.  
 16 26 LSB 2278XS 77
 16 27 mj/jw/5
     
Text: SF00365                           Text: SF00367
Text: SF00300 - SF00399                 Text: SF Index
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