House File 519 - Introduced HOUSE FILE BY BAUDLER Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing for the impoundment and seizure of motor 2 vehicles for certain violations of the state's financial 3 responsibility laws, creating an uninsured motorist victim 4 restitution fund, and making an appropriation. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2276YH 83 7 av/nh/24 PAG LIN 1 1 Section 1. Section 321.89, subsection 1, paragraph a, 1 2 subparagraph (4), Code 2009, is amended to read as follows: 1 3 (4) A vehicle that has been legally impounded by order of 1 4 a police authority and has not been reclaimed for a period of 1 5 ten days, or for the period required under section 321A.32B. 1 6 However, a police authority may declare the vehicle abandoned 1 7 within the ten=day period by commencing the notification 1 8 process in subsection 3. 1 9 Sec. 2. NEW SECTION. 321A.32B MOTOR VEHICLE IMPOUNDMENT 1 10 == FORFEITURE. 1 11 1. If a peace officer stops a motor vehicle and discovers 1 12 that the motor vehicle owner's driver's license, operating 1 13 privilege, or registration has been suspended, revoked, or 1 14 barred for an offense under this chapter, the peace officer 1 15 shall immediately cause the motor vehicle to be impounded. 1 16 a. For a first offense under this chapter, the person or 1 17 agency having physical possession of the impounded motor 1 18 vehicle shall release the vehicle to the owner upon payment of 1 19 all towing costs, storage costs not in excess of fifteen 1 20 dollars per day, and administrative fees associated with 1 21 impoundment of the motor vehicle. 1 22 b. For a second offense under this chapter, the person or 1 23 agency having physical possession of the impounded motor 1 24 vehicle shall not release the vehicle to the owner until all 1 25 towing costs, storage costs, and administrative fees have been 1 26 paid and the owner provides satisfactory proof to the person 1 27 or agency that the owner's driver's license, operating 1 28 privilege, or registration, as applicable, has been 1 29 reinstated. 1 30 c. For a third offense under this chapter, the motor 1 31 vehicle shall be seized and forfeited to the state pursuant to 1 32 chapters 809 and 809A. The money collected by the department 1 33 from the sale of motor vehicles forfeited pursuant to this 1 34 paragraph shall be transmitted to the treasurer of state who 1 35 shall deposit the money in the uninsured motorist victim 2 1 restitution fund created in subsection 2 to compensate victims 2 2 of motor vehicle accidents with uninsured motorists. 2 3 2. The uninsured motorist victim restitution fund is 2 4 created in the state treasury under the control of the 2 5 department. The fund shall consist of all moneys deposited in 2 6 the fund from proceeds of the sale of motor vehicles seized 2 7 and forfeited under subsection 1, paragraph "c". Moneys 2 8 deposited in the fund are appropriated and shall be expended 2 9 by the department for the restitution of victims of motor 2 10 vehicle accidents with uninsured motorists, as provided by 2 11 rules adopted by the department under chapter 17A. 2 12 Notwithstanding section 12C.7, subsection 2, interest or 2 13 earnings on moneys deposited in the fund shall be credited to 2 14 the fund and any unencumbered or unobligated moneys in the 2 15 fund at the end of the fiscal year shall not revert but shall 2 16 remain in the fund. 2 17 3. Impoundment or seizure of a vehicle under this section 2 18 may occur in addition to any criminal penalty imposed under 2 19 this chapter for the underlying criminal offense. 2 20 EXPLANATION 2 21 This bill provides for the impoundment and seizure of motor 2 22 vehicles for certain violations of the state's financial 2 23 responsibility laws. 2 24 The bill provides that if a peace officer stops a motor 2 25 vehicle and discovers that the motor vehicle owner's driver's 2 26 license, operating privilege, or registration has been 2 27 suspended, revoked, or barred for a violation of the state's 2 28 motor vehicle financial responsibility laws under Code chapter 2 29 321A, the peace officer shall immediately cause the motor 2 30 vehicle to be impounded. 2 31 For a first offense, the owner may obtain the release of 2 32 the impounded motor vehicle upon payment of all towing costs, 2 33 storage costs not exceeding $15 per day, and any 2 34 administrative fees associated with the impoundment. For a 2 35 second offense, the owner may obtain release of the impounded 3 1 motor vehicle upon payment of all costs and fees and upon 3 2 provision of satisfactory proof that the owner's driver's 3 3 license, operating privilege, or registration has been 3 4 reinstated. For a third offense, the owner's motor vehicle 3 5 shall be seized and forfeited to the state pursuant to Code 3 6 chapters 809 and 809A. 3 7 An uninsured motorist victim restitution fund is created in 3 8 the state treasury to receive deposits of moneys collected by 3 9 the department of transportation from selling seized and 3 10 forfeited vehicles. The money is appropriated and shall be 3 11 used to compensate victims of motor vehicle accidents with 3 12 uninsured motorists as provided by rules adopted under Code 3 13 chapter 17A. 3 14 The impoundment or seizure of a motor vehicle pursuant to 3 15 the bill is in addition to any criminal penalty imposed under 3 16 Code chapter 321A for the underlying criminal offense. 3 17 LSB 2276YH 83 3 18 av/nh/24