Text: HSB00512                          Text: HSB00514
Text: HSB00500 - HSB00599               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

House Study Bill 513

Bill Text

PAG LIN
  1  1    Section 1.  Section 321.1, subsection 24B, paragraph c,
  1  2 Code Supplement 1999, is amended to read as follows:
  1  3    c.  A valid certificate of deposit of money or security
  1  4 statement issued by the treasurer of state pursuant to section
  1  5 321A.25 attesting to the filing of a certificate of deposit
  1  6 with the treasurer of state.
  1  7    Sec. 2.  Section 321A.18, Code 1999, is amended to read as
  1  8 follows:
  1  9    321A.18  ALTERNATE METHODS OF GIVING PROOF.
  1 10    Proof of financial responsibility when required under this
  1 11 chapter may be given by filing any of the following:
  1 12    1.  A certificate of insurance as provided in section
  1 13 321A.19 or section 321A.20; or.
  1 14    2.  A bond as provided in section 321A.24; or.
  1 15    3.  A certificate of deposit of money or securities
  1 16 statement issued by the treasurer of state attesting to the
  1 17 filing of a certificate of deposit with the treasurer of state
  1 18 as provided in section 321A.25.
  1 19    Sec. 3.  Section 321A.25, Code 1999, is amended to read as
  1 20 follows:
  1 21    321A.25  MONEY OR SECURITIES CERTIFICATE OF DEPOSIT AS
  1 22 PROOF.
  1 23    1.  Proof of financial responsibility may be evidenced by
  1 24 the certificate statement of the treasurer of state that the
  1 25 person named in the certificate statement has deposited filed
  1 26 with the treasurer of state fifty-five thousand dollars in
  1 27 cash, or securities which may legally be purchased by a state
  1 28 bank or trust funds of a market value of fifty-five thousand
  1 29 dollars the form of an endorsed certificate of deposit made
  1 30 payable jointly to the person and the treasurer of state.  The
  1 31 certificate of deposit shall be obtained from an Iowa
  1 32 financial institution in the amount of fifty-five thousand
  1 33 dollars plus any early withdrawal penalty fee.  The treasurer
  1 34 of state shall promptly notify the director of transportation
  1 35 of the name and address of the person to whom the certificate
  2  1 statement has been issued.  Upon receipt of the notification,
  2  2 the director of transportation shall issue to the person a
  2  3 security insurance card for each motor vehicle registered in
  2  4 this state by the person.  The security insurance card shall
  2  5 state the name and address of the person and the registration
  2  6 number of the motor vehicle for which the card is issued.  The
  2  7 treasurer of state shall not accept a certificate of deposit
  2  8 and issue a certificate statement for it and the department
  2  9 shall not accept the certificate statement unless accompanied
  2 10 by evidence that there are no unsatisfied judgments of any
  2 11 character against the depositor person in the county where the
  2 12 depositor person resides.
  2 13    2.  Such certificate of deposit shall be held by the state
  2 14 treasurer of state to satisfy, in accordance with the
  2 15 provisions of this chapter, any execution on a judgment issued
  2 16 against such the person making filing the certificate of
  2 17 deposit, for damages, including damages for care and loss of
  2 18 services, because of bodily injury to or death of any person,
  2 19 or for damages because of injury to or destruction of
  2 20 property, including the loss of use thereof of property,
  2 21 resulting from the ownership, maintenance, use, or operation
  2 22 of a motor vehicle after such the certificate of deposit was
  2 23 made filed.  Money or securities A certificate of deposit so
  2 24 deposited filed shall not be subject to attachment or
  2 25 execution unless such the attachment or execution shall arise
  2 26 arises out of a suit for damages as aforesaid previously
  2 27 provided in this subsection.
  2 28    Sec. 4.  Section 321A.27, Code 1999, is amended to read as
  2 29 follows:
  2 30    321A.27  SUBSTITUTION OF PROOF.
  2 31    The department shall consent to the cancellation of any a
  2 32 bond or certificate of insurance or the department shall
  2 33 direct and the state treasurer of state shall return any money
  2 34 or securities a certificate of deposit to the person entitled
  2 35 thereto to the certificate of deposit upon the substitution
  3  1 and acceptance of other adequate proof of financial
  3  2 responsibility pursuant to this chapter.
  3  3    Sec. 5.  Section 321A.29, Code 1999, is amended to read as
  3  4 follows:
  3  5    321A.29  DURATION OF PROOF – WHEN PROOF MAY BE CANCELED OR
  3  6 RETURNED.
  3  7    1.  The department shall upon request consent to the
  3  8 immediate cancellation of any a bond or certificate of
  3  9 insurance, or the department shall direct and the state
  3 10 treasurer of state shall return to the person entitled thereto
  3 11 any money or securities deposited a certificate of deposit
  3 12 filed pursuant to this chapter as proof of financial
  3 13 responsibility, or the department shall waive the requirement
  3 14 of filing proof, in any of the following events:
  3 15    a.  At any time after two years from the date such proof
  3 16 was required when, during the two-year period preceding the
  3 17 request, the department has not received record of a
  3 18 conviction or a forfeiture of bail which would require or
  3 19 permit the suspension or revocation of the license,
  3 20 registration, or nonresident's operating privilege of the
  3 21 person by or for whom such proof was furnished; or.
  3 22    b.  In the event of the death of the person on whose behalf
  3 23 such proof was filed or the permanent incapacity of such
  3 24 person to operate a motor vehicle; or.
  3 25    c.  In the event the person who has given proof surrenders
  3 26 the person's license and registration to the department;.
  3 27    2.  Provided, however, that the The department shall not
  3 28 consent to the cancellation of any a bond or the return of any
  3 29 money or securities a certificate of deposit in the event any
  3 30 an action for damages upon a liability covered by such proof
  3 31 is then pending or any a judgment upon any such liability is
  3 32 then unsatisfied, or in the event the person who has filed
  3 33 such bond or deposited such money or securities certificate of
  3 34 deposit has within one year immediately preceding such request
  3 35 been involved as an operator or owner in any motor vehicle
  4  1 accident resulting in injury or damage to the person or
  4  2 property of others.  An affidavit of the applicant as to the
  4  3 nonexistence of such facts, or that the applicant has been
  4  4 released from all of the applicant's liability, or has been
  4  5 finally adjudicated not to be liable, for such injury or
  4  6 damage, shall be sufficient evidence thereof in the absence of
  4  7 evidence to the contrary in the records of the department.
  4  8    3.  Whenever any person If a person whose proof has been
  4  9 canceled or returned under paragraph "c" of subsection 1 of
  4 10 this section subsection 1, paragraph "c", applies for a
  4 11 license or registration within a period of two years from the
  4 12 date proof was originally required, any such application shall
  4 13 be refused unless the applicant shall re-establish such
  4 14 reestablishes proof for the remainder of the two-year period.
  4 15    Sec. 6.  EFFECTIVE DATE.  This Act, being deemed of
  4 16 immediate importance, takes effect upon enactment.  
  4 17                           EXPLANATION
  4 18    This bill amends Code section 321A.25 to provide that a
  4 19 person may prove motor vehicle financial responsibility by
  4 20 filing an endorsed certificate of deposit with the treasurer
  4 21 of state.  The certificate of deposit shall be made payable
  4 22 jointly to the person and the treasurer of state and shall be
  4 23 obtained from an Iowa financial institution in the amount of
  4 24 $55,000 plus any early withdrawal penalty fee.  Currently,
  4 25 Code section 321A.25 provides that a person may prove motor
  4 26 vehicle financial responsibility by depositing with the
  4 27 treasurer of state $55,000 in cash, or securities which may
  4 28 legally be purchased by a state bank or trust funds of a
  4 29 market value of $55,000.
  4 30    The bill also makes corresponding language changes in Code
  4 31 sections 321.1, 321A.18, 321A.27, and 321A.29, and provides
  4 32 that the bill takes effect upon enactment.  
  4 33 LSB 5264DP 78
  4 34 nh/as/5
     

Text: HSB00512                          Text: HSB00514
Text: HSB00500 - HSB00599               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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