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