House File 2378 - Introduced HOUSE FILE BY SWAIM Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act to require proof of financial liability coverage upon 2 registration of a motor vehicle and providing penalties. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6227YH 81 5 dea/gg/14 PAG LIN 1 1 Section 1. Section 321.20, Code Supplement 2005, is 1 2 amended to read as follows: 1 3 NEW SUBSECTION. 7. If the vehicle is a motor vehicle, the 1 4 owner shall certify that financial liability coverage is in 1 5 effect for the motor vehicle and provide a description of the 1 6 financial liability coverage as noted on the proof of 1 7 financial liability coverage card issued for the motor 1 8 vehicle. The owner shall notify the department when the 1 9 insurance carrier or other source of the financial liability 1 10 coverage changes within thirty days of obtaining the new 1 11 coverage. The application provided by the department shall 1 12 include a statement for the applicant to sign that 1 13 acknowledges the applicant's knowledge of the requirement to 1 14 notify the department of a financial liability coverage 1 15 change. A person who falsely certifies as to financial 1 16 liability coverage required under this section or section 1 17 321.40 commits a simple misdemeanor. A person who fails to 1 18 notify the county treasurer of a change in financial liability 1 19 coverage as required pursuant to this subsection commits a 1 20 simple misdemeanor if the person's motor vehicle is operated 1 21 on the highway after the thirty=day notification period has 1 22 lapsed. 1 23 Sec. 2. Section 321.30, Code 2005, is amended by adding 1 24 the following new subsection: 1 25 NEW SUBSECTION. 15. The department or the county 1 26 treasurer shall refuse registration of a motor vehicle if the 1 27 owner does not provide satisfactory certification that 1 28 financial liability coverage is in effect for the motor 1 29 vehicle. 1 30 Sec. 3. Section 321.40, unnumbered paragraph 2, Code 1 31 Supplement 2005, is amended to read as follows: 1 32 On or before the fifteenth day of the eleventh month of a 1 33 vehicle's registration year, the department shall create an 1 34 electronic file and the county treasurer shall send a 1 35 statement of fees due to the appropriate owner of record. A 2 1 form for certification of financial liability coverage shall 2 2 accompany each renewal statement sent to the owner of a motor 2 3 vehicle. After the department has generated the electronic 2 4 file used to produce statements for a registration month, and 2 5 before the fifteenth day of the month following expiration of 2 6 a vehicle's registration year, the department shall create a 2 7 subsequent electronic file and the county treasurer shall send 2 8 a statement of fees due to the appropriate owner of record for 2 9 any vehicle subsequently registered for that registration 2 10 month. The statement shall be mailed or electronically 2 11 transmitted to the most current address of record, showing 2 12 information sufficient to identify the vehicle and a listing 2 13 of the various fees as appropriate. Failure to receive a 2 14 statement shall have no effect upon the accrual of penalty at 2 15 the appropriate date. 2 16 EXPLANATION 2 17 This bill requires the owner of a motor vehicle to certify 2 18 that financial liability coverage is in effect for the vehicle 2 19 at the time the vehicle is registered and each time the 2 20 registration is renewed. If the insurance carrier or other 2 21 source of the financial liability coverage changes, the owner 2 22 of the motor vehicle has 30 days in which to notify the county 2 23 treasurer of the change in coverage. The owner of the motor 2 24 vehicle can be charged with a simple misdemeanor if the owner 2 25 fails to provide timely notification of a change in coverage 2 26 and the motor vehicle is operated on a highway. In addition, 2 27 a person who falsely certifies as to financial liability 2 28 coverage required for registration or renewal commits a simple 2 29 misdemeanor. A simple misdemeanor is punishable by 2 30 confinement for no more than 30 days or a fine of at least $50 2 31 but not more than $500 or by both. 2 32 LSB 6227YH 81 2 33 dea:nh/gg/14