House File 986 H-1234 Amend House File 986 as follows: 1 1. Page 34, after line 2 by inserting: 2 < DIVISION ___ 3 MOTOR VEHICLE FINANCIAL LIABILITY COVERAGE 4 Sec. ___. Section 321.20, subsection 1, Code 2025, is 5 amended by adding the following new paragraph: 6 NEW PARAGRAPH . g. If the vehicle is a motor vehicle, the 7 owner shall certify on the application that financial liability 8 coverage is in effect for the motor vehicle pursuant to section 9 321.20B and provide a copy of the proof of financial liability 10 coverage card issued for the motor vehicle, a description of 11 the financial liability coverage as noted on the proof of 12 financial liability coverage card, or other documentation 13 acceptable to the department. This paragraph does not apply 14 to a motor vehicle excluded from the requirements of section 15 321.20B. 16 Sec. ___. Section 321.20B, subsection 4, paragraph c, Code 17 2025, is amended by striking the paragraph. 18 Sec. ___. Section 321.20B, subsection 5, paragraph b, Code 19 2025, is amended by striking the paragraph and inserting in 20 lieu thereof the following: 21 b. Issue a citation to the driver. 22 Sec. ___. Section 321.20B, Code 2025, is amended by adding 23 the following new subsections: 24 NEW SUBSECTION . 5A. An owner or driver cited for or charged 25 with a violation of subsection 1 who produces to the clerk of 26 court prior to the date of the person’s court appearance proof 27 that financial liability coverage was in effect for the motor 28 vehicle at the time the person was stopped, or if the driver 29 is not the owner of the motor vehicle, proof that financial 30 liability coverage was in effect for the driver with respect 31 to the motor vehicle being driven at the time the driver was 32 stopped in the same manner as if the motor vehicle were owned 33 by the driver, shall be given a receipt indicating that proof 34 was provided, and the citation or charge shall be dismissed by 35 -1- HF 986.1556 (1) 91 nls/ko 1/ 4 #1.

the court. Upon dismissal, the court or clerk of court shall 1 assess the costs of the action against the defendant. 2 NEW SUBSECTION . 5B. A person convicted of a violation of 3 subsection 1 is guilty of a simple misdemeanor punishable as 4 a scheduled violation under section 805.8A, subsection 14, 5 paragraph “f” . 6 Sec. ___. Section 321.30, Code 2025, is amended by adding 7 the following new subsection: 8 NEW SUBSECTION . 4. The department or the county treasurer 9 shall refuse registration of a motor vehicle if the owner 10 does not provide satisfactory proof that financial liability 11 coverage is in effect for the motor vehicle pursuant to section 12 321.20B. This subsection does not apply to a motor vehicle 13 excluded from the requirements of section 321.20B. 14 Sec. ___. Section 321.40, Code 2025, is amended by adding 15 the following new subsection: 16 NEW SUBSECTION . 11. A form for certification of financial 17 liability coverage pursuant to section 321.20B shall accompany 18 each renewal statement sent to the owner of a motor vehicle 19 under this section. The county treasurer shall refuse to renew 20 the registration of a motor vehicle if the applicant does not 21 submit satisfactory proof of financial liability coverage in 22 effect for the motor vehicle pursuant to section 321.20B. This 23 subsection does not apply to a motor vehicle excluded from the 24 requirements of section 321.20B. 25 Sec. ___. Section 805.8A, subsection 14, paragraph f, Code 26 2025, is amended to read as follows: 27 f. Proof of financial responsibility. If, in connection with 28 a motor vehicle accident, a person is charged and found guilty 29 of a violation of section 321.20B, subsection 1 , the scheduled 30 fine is six hundred forty-five dollars; otherwise, the 31 scheduled fine for a violation of section 321.20B, subsection 32 1 , is three hundred twenty-five dollars. 33 (1) The scheduled fine for a violation of section 321.20B, 34 subsection 1, is as follows: 35 -2- HF 986.1556 (1) 91 nls/ko 2/ 4

(a) If the violation occurred in connection 1 with a motor vehicle accident . . . . . . . . . . . . $645. 2 (b) If the violation did not occur in connection 3 with a motor vehicle accident . . . . . . . . . . . . $325. 4 (c) For a second violation within five years, the scheduled 5 fine under subparagraph division (a) or (b), as applicable, 6 shall be doubled. 7 (d) For a third or subsequent violation within five years, 8 the scheduled fine under subparagraph division (a) or (b), as 9 applicable, shall be tripled. 10 (2) Notwithstanding section 805.12 , fines collected 11 pursuant to this paragraph shall be submitted to the state 12 court administrator and distributed fifty percent to the victim 13 compensation fund established in section 915.94 , twenty-five 14 percent to the county in which such fine is imposed, and 15 twenty-five percent to the general fund of the state. 16 Sec. ___. EFFECTIVE DATE. The following take effect 17 December 1, 2028: 18 1. The section of this division of this Act enacting section 19 321.20, subsection 1, paragraph “g”. 20 2. The section of this division of this Act enacting section 21 321.30, subsection 4. 22 3. The section of this division of this Act enacting section 23 321.40, subsection 11. > 24 2. Title page, by striking lines 2 and 3 and inserting < of 25 insurance and financial services, the utilities commission, and 26 the department of transportation, including financial literacy 27 and exploitation, > 28 3. Title page, by striking lines 6 and 7 and inserting 29 < contracts, cross-subsidization of public utilities, motor 30 vehicle financial liability coverage, and including penalties 31 and effective date provisions. > 32 -3- HF 986.1556 (1) 91 nls/ko 3/ 4 #2.