SF 2106 (LSB 5567XS (2) 83)

SENATE FILE 2106

BY  SODDERS

A BILL FOR

An Act relating to revocation of the registration of a motor vehicle driven by a person whose driver’s license is suspended, revoked, barred, or canceled.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  321.218B  Driving while license is suspended, revoked, barred, or canceled —— revocation of vehicle registration.
   1.  If a peace officer stops a motor vehicle driven by a person whose driver’s license is suspended, revoked, barred, or canceled and the motor vehicle is registered to the driver, the peace officer shall immediately remove the motor vehicle's registration plates and registration receipt and impound the motor vehicle. The peace officer shall deliver the plates for destruction, as appropriate; forward the registration receipt, if available, to the department; and notify the department of the vehicle’s impoundment.
   2.  Upon verifying that the registered owner of the motor vehicle is a person whose Iowa driver’s license is suspended, revoked, barred, or canceled, the department shall revoke the registration of the motor vehicle.
   3.  Upon payment of a fifteen dollar administrative fee to the county treasurer of the owner’s county of residence and providing proof of financial liability coverage as required under section 321.20B to the county treasurer, the treasurer shall issue new registration plates and registration to the owner of the motor vehicle.
   4.  A motor vehicle which is impounded may be claimed on behalf of the owner by a person with a valid driver’s license if the owner provides proof of registration of the vehicle pursuant to subsection 3 and pays the costs of towing and storage for the motor vehicle. If the motor vehicle is not claimed within thirty days after impoundment, the motor vehicle may be treated as an abandoned vehicle pursuant to section 321.89.
   5.  The holder of a security interest in a motor vehicle which is impounded pursuant to this section shall be notified of the impoundment within seventy-two hours of the impoundment of the motor vehicle and shall have the right to claim the motor vehicle upon the payment of all fees. However, if the value of the vehicle is less than the security interest, all fees shall be divided equally between the lienholder and the political subdivision impounding the vehicle.
EXPLANATION
   This bill addresses certain motor vehicle owners who operate a motor vehicle while their driver’s license is suspended, revoked, barred, or canceled.
   The bill requires a peace officer who stops a motor vehicle driven by a person who is the owner of the vehicle and whose driver’s license is suspended, revoked, canceled, or barred to remove the motor vehicle’s registration plates and receipt and impound the vehicle. The peace officer is to deliver the plates for destruction and forward the registration receipt to the department of transportation along with notice of the impoundment of the vehicle. After verifying that the owner of the vehicle is a person whose driver’s license is sanctioned, the department shall revoke the registration of the motor vehicle.
   The owner of the motor vehicle may obtain a new registration and registration plates for the vehicle by showing proof of financial liability coverage to the county treasurer of the owner’s county of residence and paying a $15 administrative fee to the county treasurer. Once a new registration is obtained, the impounded motor vehicle may be reclaimed by a person with a valid driver’s license on behalf of the owner. Proof of the new registration and payment of the costs of towing and storage are required in order to claim the vehicle. The owner has 30 days in which to claim the impounded vehicle before it may be treated as an abandoned vehicle.
   The bill specifies that a person with a security interest in the vehicle is to be notified of the impoundment within 72 hours of the impoundment. The lienholder has the right to claim the motor vehicle upon payment of all fees. If the value of the vehicle is less than the security interest, the fees are to be split between the lienholder and the political subdivision impounding the vehicle.