H.F. _____ Section 1. Section 321.89, subsection 1, paragraph a, 1 subparagraph (6), Code 2016, is amended to read as follows: 2 (6) A vehicle that has been impounded pursuant to section 3 321.218B or 321J.4B by order of the court and whose owner has 4 not paid the impoundment fees after notification by the person 5 or agency responsible for carrying out the impoundment order. 6 Sec. 2. Section 321.218, subsection 1, Code 2016, is amended 7 to read as follows: 8 1. A person whose driver’s license or operating privilege 9 has been denied, canceled, suspended, or revoked as provided 10 in this chapter or as provided in section 252J.8 or section 11 901.5, subsection 10 , and who operates a motor vehicle upon 12 the highways of this state while the license or privilege 13 is denied, canceled, suspended, or revoked, commits a 14 simple misdemeanor. In addition to any other penalties, the 15 punishment imposed for a violation of this subsection shall 16 include assessment of a fine of not less than two hundred fifty 17 dollars nor more than one thousand five hundred dollars and 18 impoundment, pursuant to section 321.218B, of the motor vehicle 19 operated in violation of this subsection . 20 Sec. 3. NEW SECTION . 321.218B Motor vehicle impoundment —— 21 penalty —— liability of vehicle owner. 22 1. For purposes of this section: 23 a. “Impoundment” means the process of seizure and 24 confinement of a motor vehicle within an enclosed area, for the 25 purpose of restricting access to the vehicle. 26 b. “Owner” means the registered titleholder of a motor 27 vehicle, except in the case where a rental or leasing agency 28 is the registered titleholder, in which case the lessee of 29 the vehicle shall be treated as the owner of the vehicle for 30 purposes of this section. 31 2. a. A motor vehicle is subject to impoundment if a person 32 operates the vehicle while the person’s driver’s license or 33 operating privilege has been denied, canceled, suspended, or 34 revoked in violation of section 321.218, subsection 1. 35 -1- LSB 5119YC (3) 86 ns/nh 1/ 11

H.F. _____ b. Impoundment of the vehicle under this section may occur 1 in addition to any penalty imposed under this chapter for the 2 underlying criminal offense. 3 3. The motor vehicle operated by the person in violation of 4 section 321.218, subsection 1, may be immediately impounded in 5 accordance with this section. 6 a. A person or agency taking possession of an impounded 7 motor vehicle shall do the following: 8 (1) Make an inventory of any property contained in the 9 vehicle, according to the person’s or agency’s inventory 10 procedure. The person or agency responsible for the vehicle 11 shall also deliver a copy of the inventory to the county 12 attorney. 13 (2) Contact all rental or leasing agencies registered as 14 owners of the vehicle, as well as any parties registered as 15 holders of a secured interest in the vehicle, in accordance 16 with subsection 11. 17 b. The county attorney shall file a copy of the inventory 18 with the district court as part of each file related to the 19 violation of section 321.218, subsection 1. 20 4. An owner of a motor vehicle impounded under this section, 21 who knows of, should have known of, or gives consent to the 22 operation of the vehicle in violation of section 321.218, 23 subsection 1, shall be all of the following: 24 a. Guilty of a simple misdemeanor. 25 b. Jointly and severally liable for any damages caused 26 by the person who operated the motor vehicle, subject to the 27 provisions of chapter 668. 28 5. a. (1) The following persons shall be entitled to 29 immediate return of the motor vehicle without payment of costs 30 associated with the impoundment of the vehicle: 31 (a) The owner of the motor vehicle, if the person who 32 operated the vehicle is not a co-owner of the vehicle. 33 (b) A motor vehicle rental or leasing agency that owns the 34 vehicle. 35 -2- LSB 5119YC (3) 86 ns/nh 2/ 11

H.F. _____ (c) A person who owns the motor vehicle and who is charged 1 but is not convicted of the violation of section 321.218, 2 subsection 1, which resulted in the impoundment of the vehicle 3 under this section. 4 (2) A person shall be entitled to immediate return of the 5 vehicle after payment of costs associated with the impoundment 6 of the vehicle if all of the following apply: 7 (a) The person is an owner of the motor vehicle. 8 (b) The person’s criminal charge for violating section 9 321.218, subsection 1, that resulted in the impoundment of the 10 vehicle is pending. 11 (c) The period of impoundment under paragraph “d” that would 12 be required if the person was convicted of the offense has 13 expired. 14 (3) A person who paid the costs associated with the 15 impoundment of the vehicle under subparagraph (2) shall be 16 reimbursed by the person or agency who received the payment for 17 the total amount paid if the person is not convicted of the 18 violation. 19 b. Upon conviction of the defendant for a violation of 20 section 321.218, subsection 1, the court may order continued 21 impoundment of the motor vehicle used in the commission of the 22 offense if the convicted person is the owner of the vehicle and 23 the period of impoundment required by paragraph “d” has not 24 expired. The court shall specify all of the following in the 25 order: 26 (1) The vehicle that is subject to the order. 27 (2) The period of impoundment. 28 (3) The person or agency responsible for carrying out the 29 order requiring continued impoundment of the vehicle. 30 c. If the vehicle subject to the order is in the custody 31 of a law enforcement agency, the court shall designate that 32 agency as the responsible agency. If the vehicle is not in 33 the custody of a law enforcement agency, the person or agency 34 responsible for carrying out the order shall be any person 35 -3- LSB 5119YC (3) 86 ns/nh 3/ 11

H.F. _____ deemed appropriate by the court, including but not limited to a 1 law enforcement agency with jurisdiction over the area in which 2 the residence of the vehicle owner is located. 3 d. The period of impoundment of a motor vehicle under this 4 section shall be seven days for a first offense in violation 5 of section 321.218, subsection 1. For a second or subsequent 6 offense, the period of impoundment shall be double the number 7 of days required for the previous offense. The period of 8 impoundment shall commence on the first day that the vehicle 9 is impounded. 10 e. The clerk of the district court shall send a copy of the 11 order to the department, the person convicted of the offense, 12 the person or agency responsible for executing the order for 13 impoundment, and any holders of any security interests in the 14 vehicle. 15 f. (1) If the vehicle subject to the court order is not in 16 the custody of a law enforcement agency, the person or agency 17 designated in the order as the person or agency responsible for 18 executing the order shall, upon receipt of the order, promptly 19 locate the vehicle specified in the order, seize the vehicle 20 and the license plates, and send or deliver the vehicle’s 21 license plates to the department. 22 (2) If the vehicle is located at a place other than the 23 place at which the court order is to be carried out, the person 24 or agency responsible for executing the order shall arrange 25 for the vehicle to be moved to the place of impoundment. When 26 the vehicle is found, is impounded, and is at the place of 27 impoundment, the person or agency responsible for executing the 28 order shall notify the clerk of the date on which the order was 29 executed. The clerk shall notify the department of the date on 30 which the order was executed. 31 g. Upon receipt of a court order for continued impoundment 32 of the motor vehicle, the person or agency shall review the 33 value of the vehicle in relation to the costs associated with 34 the period of impoundment of the vehicle specified in the 35 -4- LSB 5119YC (3) 86 ns/nh 4/ 11

H.F. _____ order. If the person or agency determines that the costs of 1 impoundment of the vehicle exceed the actual wholesale value of 2 the vehicle, the person or agency may treat the vehicle as an 3 abandoned vehicle pursuant to section 321.89. If the person or 4 agency elects to treat the vehicle as abandoned, the person or 5 agency shall notify the registered owner of the vehicle that 6 the vehicle shall be deemed abandoned and shall be sold in the 7 manner provided in section 321.89 if payment of the total cost 8 of impoundment is not received within twenty-one days of the 9 mailing of the notice. The person or agency shall provide 10 documentation regarding the valuation of the vehicle and the 11 costs of impoundment. 12 6. a. Upon receipt of a court order for continued 13 impoundment of the motor vehicle, the impounding authority 14 shall seize the vehicle’s license plates and registration, and 15 shall send or deliver them to the department. 16 b. The department shall destroy license plates received 17 under this section and shall not authorize the release of the 18 vehicle or the issuance of new license plates for the vehicle 19 until the period of impoundment has expired, and the fee and 20 costs assessed under subsection 7 have been paid. The fee for 21 issuance of new license plates and certificates of registration 22 shall be the same as for the replacement of lost, mutilated, or 23 destroyed license plates and certificates of registration. 24 7. a. Upon conviction of a person for a violation of 25 section 321.218, subsection 1, and impoundment of the vehicle 26 under this section, the court shall assess to the person, in 27 addition to any other penalty, the amount of any expenses for 28 towing, storage, and any other costs of impounding the vehicle, 29 to be paid to the clerk of the district court. However, the 30 amount assessed to the person for storage of the vehicle shall 31 not exceed twenty-five dollars per day. 32 b. The person or agency responsible for impoundment under 33 this section shall inform the court of the costs of towing, 34 storage, and any other costs of impounding the vehicle. Upon 35 -5- LSB 5119YC (3) 86 ns/nh 5/ 11

H.F. _____ payment of the costs, the clerk shall forward a copy of the 1 receipt to the department. 2 c. If a law enforcement agency impounds a motor vehicle, 3 the amount of the expenses deposited with the clerk shall be 4 paid by the clerk to the law enforcement agency responsible 5 for executing the order to reimburse the agency for costs 6 incurred for impoundment equipment and, if required, in sending 7 officers to search for and locate the vehicle specified in the 8 impoundment order. 9 8. Operating a motor vehicle on a street or highway in this 10 state in violation of an order of impoundment is a serious 11 misdemeanor. A motor vehicle which is subject to an order of 12 impoundment that is operated on a street or highway in this 13 state in violation of the order shall be seized and forfeited 14 to the state under chapters 809 and 809A. 15 9. Once the period of impoundment has expired, the owner of 16 the motor vehicle shall have thirty days to claim the vehicle 17 and pay all charges imposed under this section. If the owner 18 or the owner’s designee has not claimed the vehicle and paid 19 all charges imposed under this section within seven days from 20 the date of expiration of the period, the clerk shall send 21 written notification to the vehicle owner, at the owner’s last 22 known address, notifying the owner of the date of expiration 23 of the period of impoundment and of the period in which the 24 vehicle must be claimed. If the vehicle owner fails to claim 25 the vehicle and pay all charges imposed within the thirty-day 26 period, the vehicle shall be forfeited to the state under 27 chapters 809 and 809A. 28 10. a. (1) During the period of impoundment, the owner of 29 an impounded vehicle shall not sell or transfer the title of 30 the vehicle. 31 (2) A person convicted of an offense under section 321.218, 32 subsection 1, shall not purchase or register any motor vehicle 33 during the period of impoundment or license revocation. 34 (3) A violation of this paragraph “a” is a serious 35 -6- LSB 5119YC (3) 86 ns/nh 6/ 11

H.F. _____ misdemeanor. 1 b. If, during the period of impoundment, the title to the 2 motor vehicle which is the subject of the order is transferred 3 by the foreclosure of a chattel mortgage, a sale upon 4 execution, the cancellation of a conditional sales contract, 5 or an order of a court, the court which enters the order that 6 permits transfer of the title shall notify the department of 7 the transfer of the title. The department shall enter notice 8 of the transfer of the title to the vehicle in the previous 9 owner’s vehicle registration record. 10 11. a. Notwithstanding other requirements of this section: 11 (1) Upon learning the address or phone number of a rental 12 or leasing company which owns a motor vehicle impounded under 13 this section, the peace officer, county attorney, or attorney 14 general shall immediately contact the company to inform 15 the company that the vehicle is available for return to the 16 company. 17 (2) The holder of a security interest in a vehicle which 18 is impounded pursuant to this section or forfeited in the 19 manner provided in chapters 809 and 809A shall be notified of 20 the impoundment or forfeiture within seventy-two hours of the 21 seizure of the vehicle and shall have the right to claim the 22 vehicle without payment of any fees or surcharges unless the 23 value of the vehicle exceeds the value of the security interest 24 held by the creditor. 25 (3) Any of the following persons may make application 26 to the court for permission to operate a motor vehicle which 27 is impounded pursuant to this section during the period of 28 impoundment, if the applicant’s driver’s license or operating 29 privilege has not been suspended, denied, revoked, or barred: 30 (a) A person, other than the person who committed the 31 offense which resulted in the impoundment, who is not a member 32 of the immediate family of the person who committed the offense 33 but is a joint owner of the vehicle. 34 (b) A member of the immediate family of the person who 35 -7- LSB 5119YC (3) 86 ns/nh 7/ 11

H.F. _____ committed the offense which resulted in the impoundment, if 1 the member demonstrates that the vehicle that is subject to 2 the order for impoundment is the only vehicle possessed by the 3 family. 4 b. For purposes of this section, “a member of the immediate 5 family” means a spouse, child, or parent of the person who 6 committed the offense. 7 12. The impoundment or forfeiture of a motor vehicle under 8 this section does not constitute loss of use of a motor vehicle 9 for purposes of any contract of insurance. 10 Sec. 4. Section 809A.3, subsection 2, Code 2016, is amended 11 by adding the following new paragraph: 12 NEW PARAGRAPH . 0a. Section 321.218B, subsection 8. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill provides for the impoundment of a motor vehicle 17 operated by a person whose driver’s license or operating 18 privilege has been denied, canceled, suspended, or revoked in 19 violation of Code section 321.218. The impoundment procedures 20 set forth in the bill are similar to those set forth in Code 21 section 321J.4B, which deals with vehicle impoundment related 22 to operating-while-intoxicated offenses. The bill provides 23 that a vehicle operated by a person in violation of Code 24 section 321.218 may be immediately impounded. 25 Under the bill, the owner of an impounded motor vehicle 26 who knows of, should have known of, or gives consent to the 27 operation of the vehicle in violation of Code section 321.218 28 is guilty of a simple misdemeanor and jointly and severally 29 liable for any damages caused by the person who operated the 30 vehicle. A simple misdemeanor is punishable by a fine of at 31 least $65 but not to exceed $625 and imprisonment not to exceed 32 30 days. 33 The bill provides that certain persons are entitled to 34 immediate return of the impounded vehicle without payment of 35 -8- LSB 5119YC (3) 86 ns/nh 8/ 11

H.F. _____ costs, including the owner of the vehicle if the person who 1 operated the vehicle is not a co-owner, a motor vehicle rental 2 or leasing agency that owns the vehicle, and a person who 3 owns the vehicle and who is charged but not convicted of the 4 violation which resulted in the impoundment. 5 A person shall be entitled to immediate return of the vehicle 6 after payment of costs associated with the impoundment if 7 the person is an owner of the vehicle, the person’s criminal 8 charge that resulted in the impoundment is pending, and the 9 period of impoundment that would be required if the person was 10 convicted of the offense has expired. A person who paid the 11 costs associated with the impoundment shall be reimbursed by 12 the person or agency who received the payment if the person is 13 not convicted of the violation. 14 The bill provides that a court may order the continued 15 impoundment of the vehicle if the convicted person is the owner 16 of the vehicle and the required period of impoundment has not 17 expired. The period of impoundment of a vehicle under the bill 18 is seven days for a first offense. For a second or subsequent 19 offense, the period of impoundment is double the number of days 20 required for the previous offense. For example, for a third 21 offense, the period is 28 days, and for a fifth offense, the 22 period is 112 days. 23 The bill requires the clerk of the district court to send a 24 copy of the order to the department of transportation (DOT), 25 the person convicted of the offense, the person or agency 26 responsible for executing the order for impoundment, and any 27 holders of any security interests in the vehicle. 28 The bill provides that the person or agency responsible for 29 executing the order shall, upon receipt of the order, promptly 30 locate the vehicle specified in the order, seize the vehicle 31 and the registration plates, arrange for the vehicle to be 32 moved to the place of impoundment, and send or deliver the 33 vehicle’s registration plates to the DOT. 34 If the person or agency responsible for impounding the 35 -9- LSB 5119YC (3) 86 ns/nh 9/ 11

H.F. _____ vehicle determines that the costs of impoundment exceed the 1 actual wholesale value of the vehicle, the person or agency 2 may treat the vehicle as an abandoned vehicle and notify the 3 registered owner that the vehicle shall be deemed abandoned and 4 shall be sold if payment of the total cost of impoundment is 5 not received within 21 days. 6 The bill requires the DOT to destroy registration plates 7 received under the bill and prohibits the DOT from authorizing 8 the release of the vehicle or issuing new plates for the 9 vehicle until the period of impoundment has expired and the 10 costs have been paid. 11 The bill provides that the court shall assess to the person, 12 in addition to any other penalty, the amount of any expenses 13 for towing, storage, and any other costs of impounding the 14 vehicle. However, the amount assessed to the person for 15 storage of the vehicle shall not exceed $25 per day. 16 The bill prohibits operating a motor vehicle in violation 17 of an order for impoundment, and provides that a violation is 18 a serious misdemeanor. A serious misdemeanor is punishable 19 by a fine of at least $315 but not more than $1,875, and 20 imprisonment not to exceed one year. In addition, the bill 21 provides that a motor vehicle which is subject to an order 22 for impoundment that is operated on a street or highway shall 23 be seized and forfeited to the state under Code chapters 809 24 (disposition of seized property) and 809A (forfeiture reform 25 Act). 26 Once the period of impoundment has expired, the owner of 27 the vehicle shall have 30 days to claim the vehicle and pay 28 all charges. If the owner has not claimed the vehicle and 29 paid all charges within seven days from the date of expiration 30 of the period, the bill requires the clerk to send written 31 notification to the vehicle owner, at the owner’s last known 32 address, notifying the owner of the date of expiration of the 33 period of impoundment and of the period in which the vehicle 34 must be claimed. If the vehicle owner fails to claim the 35 -10- LSB 5119YC (3) 86 ns/nh 10/ 11

H.F. _____ vehicle and pay all charges imposed within the 30-day period, 1 the vehicle shall be forfeited to the state under Code chapters 2 809 and 809A. 3 During the period of impoundment, the bill prohibits the 4 owner of an impounded vehicle from selling or transferring the 5 title of the vehicle and from purchasing or registering any 6 other vehicle. A violation of this provision is a serious 7 misdemeanor. However, a court may permit transfer of the title 8 in certain circumstances, and is required to notify the DOT of 9 the title transfer. 10 The bill requires that upon learning the address or phone 11 number of a rental or leasing company which owns an impounded 12 vehicle, the peace officer, county attorney, or attorney 13 general shall immediately contact the company to inform 14 the company that the vehicle is available for return to the 15 company. The holder of a security interest in a vehicle which 16 is impounded or forfeited shall be notified of the impoundment 17 or forfeiture within 72 hours of the seizure of the vehicle and 18 shall have the right to claim the vehicle without payment of 19 any fees or surcharges unless the value of the vehicle exceeds 20 the value of the security interest held by the creditor. 21 The bill provides that certain persons may apply to the 22 court for permission to operate a vehicle which is impounded, 23 including a person other than the person who committed the 24 offense who is not a member of the immediate family of the 25 person who committed the offense but is a joint owner of the 26 vehicle, and a member of the immediate family of the person 27 who committed the offense if the member demonstrates that the 28 vehicle is the only vehicle possessed by the family. 29 The impoundment or forfeiture of a motor vehicle under the 30 bill does not constitute loss of use of a vehicle for purposes 31 of any contract of insurance. 32 -11- LSB 5119YC (3) 86 ns/nh 11/ 11