H.F. 2393 Section 1. Section 321.11, subsection 3, Code 2014, is 1 amended to read as follows: 2 3. Notwithstanding other provisions of this section to the 3 contrary, the department shall not release personal information 4 to a person, other than to an officer or employee of a law 5 enforcement agency, an employee of a federal or state agency 6 or political subdivision in the performance of the employee’s 7 official duties, a contract employee of the department of 8 inspections and appeals in the conduct of an investigation, or 9 a licensed private investigation agency or a licensed security 10 service or a licensed employee of either, if the information is 11 requested by the presentation of a registration plate number. 12 However, the department may release personal information to the 13 department’s designated agent for the purposes of chapter 321B. 14 In addition, an officer or employee of a law enforcement agency 15 may release the name, address, and telephone number of a motor 16 vehicle registrant to a person requesting the information by 17 the presentation of a registration plate number if the officer 18 or employee of the law enforcement agency believes that the 19 release of the information is necessary in the performance of 20 the officer’s or employee’s duties. 21 Sec. 2. NEW SECTION . 321B.1 Short title. 22 This chapter shall be known and may be cited as the “Motor 23 Vehicle Insurance Verification Act” . 24 Sec. 3. NEW SECTION . 321B.2 Definitions. 25 As used in this chapter, unless the context otherwise 26 requires: 27 1. “Commercial motor vehicle insurance coverage” means an 28 insurance policy that is defined by the department by rule and 29 includes motor vehicle liability coverage, uninsured motorist 30 coverage, underinsured motorist coverage, or personal injury 31 coverage. 32 2. “Database” means the motor vehicle insurance verification 33 database created in this chapter. 34 3. “Department” means the department of transportation. 35 -1- LSB 6003YH (5) 85 dea/nh 1/ 12

H.F. 2393 4. “Designated agent” means the third party the department 1 contracts with under section 321B.3. 2 5. “Financial institution” means as defined in 18 U.S.C. 3 §20. 4 6. “Motor vehicle” means as defined in section 321.1. 5 7. “Program” means the motor vehicle insurance verification 6 program created under this chapter. 7 Sec. 4. NEW SECTION . 321B.3 Motor vehicle insurance 8 verification program. 9 1. A motor vehicle insurance verification program is 10 created within the department to be administered by the 11 department. The purposes of the program include all of the 12 following: 13 a. To establish a motor vehicle insurance verification 14 database to verify compliance with the requirements of section 15 321.20B. 16 b. To assist in reducing the number of uninsured motor 17 vehicles on the highways of the state. 18 c. To assist in increasing compliance with motor vehicle 19 registration requirements and for other law enforcement 20 purposes. 21 d. To assist in protecting the bona fide security interests 22 of financial institutions in motor vehicles. 23 2. The department shall contract with a third party to act 24 as the department’s designated agent for administration of this 25 chapter. The designated agent shall establish and maintain a 26 computer database containing the following information: 27 a. Information provided by insurers under section 321B.5. 28 b. Information provided by the department under subsection 29 5. 30 c. Any other information provided by the department pursuant 31 to this chapter. 32 3. The database shall be developed and maintained in 33 accordance with guidelines established by the department by 34 rule to allow authorized state and local law enforcement 35 -2- LSB 6003YH (5) 85 dea/nh 2/ 12

H.F. 2393 agencies and financial institutions to efficiently access the 1 records of the database, including reports useful for the 2 implementation of this chapter. 3 a. Database reports shall be in a form and contain 4 information approved by the department. 5 b. Database reports may be made available through the 6 department’s internet site or through other electronic media 7 if the department determines that sufficient security is 8 provided to ensure compliance with the provisions of this 9 chapter regarding limitations on disclosure of information in 10 the database. 11 4. At least twice monthly, the designated agent shall do the 12 following, using information provided by the department: 13 a. Update the database with motor vehicle insurance 14 information provided by insurers in accordance with section 15 321B.5. 16 b. Compare all current motor vehicle registrations against 17 the database. 18 5. The department shall provide the designated agent with 19 the name, date of birth, address, and driver’s license number 20 of each person in the department’s driver’s license database. 21 6. The department shall adopt rules in accordance with 22 chapter 17A establishing procedures for using the department’s 23 driver’s license database for the purposes of administering and 24 enforcing this chapter. 25 7. a. The designated agent shall archive database files at 26 least semiannually for auditing purposes. 27 b. The department shall audit the program at least annually. 28 The audit shall include verification of: 29 (1) Billings made by the designated agent. 30 (2) The accuracy of the designated agent’s matching of 31 vehicle registration records with insurance data. 32 Sec. 5. NEW SECTION . 321B.4 Enforcement of financial 33 responsibility requirements —— penalty. 34 1. If records in the database indicate that a registered 35 -3- LSB 6003YH (5) 85 dea/nh 3/ 12

H.F. 2393 motor vehicle is not covered under an owner’s policy of 1 liability insurance for three consecutive months, at the 2 direction of the department, the designated agent shall provide 3 notice by first-class mail to the owner of the motor vehicle 4 that the owner has fifteen days from the date the notice was 5 mailed to provide one of the following: 6 a. Proof of financial liability coverage as defined in 7 section 321.1, subsection 24B. 8 b. Proof that the owner is exempt from the requirement to 9 maintain proof of financial liability coverage under section 10 321.20B. 11 2. If, after fifteen days, the owner of the motor vehicle 12 fails to provide satisfactory proof of financial liability 13 coverage, the designated agent shall provide a second notice 14 by first-class mail to the owner of the motor vehicle allowing 15 the owner an additional fifteen days from the date the second 16 notice was mailed to provide the information requested under 17 subsection 1. 18 3. a. The designated agent shall update the database 19 regarding each notice sent to a motor vehicle owner under 20 subsections 1 and 2, indicating the information provided by the 21 motor vehicle owner or the owner’s failure to provide proof of 22 financial liability coverage, as applicable. 23 b. If the owner of a motor vehicle provides proof to the 24 department or the designated agent that the owner’s motor 25 vehicle is covered by an acceptable form of financial liability 26 coverage described in section 321.1, subsection 24B, paragraph 27 “b” , “c” , or “d” , the information shall be recorded in the 28 database, and the owner shall be required to update the 29 information annually to avoid receiving a notice for failure 30 to maintain financial liability coverage for the owner’s motor 31 vehicle. 32 4. a. If the owner of a motor vehicle fails to provide 33 proof of financial liability coverage following receipt of the 34 second notice under subsection 2, the designated agent shall 35 -4- LSB 6003YH (5) 85 dea/nh 4/ 12

H.F. 2393 notify the department, and the department shall revoke the 1 registration of the motor vehicle. 2 b. The department shall provide to the owner of the motor 3 vehicle appropriate notice of the revocation, order the owner 4 to surrender the registration plates and registration receipt 5 for the vehicle to the county treasurer, advise the owner of 6 the legal consequences of operating a vehicle with revoked 7 registration and without financial liability coverage, and 8 instruct the owner on how to reinstate the vehicle registration 9 once the owner has obtained financial liability coverage for 10 the vehicle. 11 5. a. A person shall not provide a false or fraudulent 12 statement to the department or the department’s designated 13 agent in regard to proceedings under this chapter. 14 b. In addition to any other penalties, a person who violates 15 paragraph “a” is guilty of a simple misdemeanor. 16 6. A revocation of registration under this chapter is in 17 addition to any other penalty imposed by law. This chapter 18 does not affect other actions or penalties that may be taken or 19 imposed for violation of section 321.20B or other law. 20 7. a. A registration that has been revoked under this 21 section shall not be reinstated and a new registration shall 22 not be issued to the holder of the revoked registration until 23 the person does all of the following: 24 (1) Pays to the department an administrative reinstatement 25 fee of one hundred dollars, in addition to any other penalty 26 imposed by law. 27 (2) Complies with the requirements of section 321.20B and 28 this chapter. 29 b. Reinstatement fees collected under this subsection shall 30 be retained by the department as repayment receipts as defined 31 in section 8.2 and shall be used exclusively to offset the cost 32 of administering the program. Fees collected by the department 33 that are in excess of the amount necessary for administration 34 of the program shall be transferred to the road use tax fund 35 -5- LSB 6003YH (5) 85 dea/nh 5/ 12

H.F. 2393 annually on June 30. 1 Sec. 6. NEW SECTION . 321B.5 Motor vehicle insurance 2 reporting —— penalty. 3 1. a. Except as provided in paragraphs “b” and “c” , each 4 insurer that issues a policy to a motor vehicle owner in 5 this state that includes motor vehicle liability coverage, 6 uninsured motorist coverage, underinsured motorist coverage, 7 or personal injury coverage shall, on or before the seventh 8 and twenty-first day of each calendar month, submit to the 9 department’s designated agent a record of each motor vehicle 10 insurance policy that was issued by the insurer and in effect 11 for a vehicle registered or garaged in this state as of the 12 date of the previous submission. 13 b. Each insurer that issues commercial motor vehicle 14 insurance coverage shall, on or before the seventh day of each 15 calendar month, submit to the department’s designated agent 16 a record of each commercial motor vehicle insurance policy 17 that was issued by the insurer and in effect for a vehicle 18 registered or garaged in this state as of the date of the 19 previous submission. 20 c. An insurer is not required to provide a record of a motor 21 vehicle insurance policy under paragraph “a” or “b” if the 22 policy covers a vehicle that is registered under chapter 326. 23 d. This subsection does not preclude more frequent 24 reporting. 25 2. a. A record provided by an insurer under subsection 1, 26 paragraph “a” , shall include all of the following: 27 (1) The name, date of birth, and driver’s license number, if 28 the insured provides a driver’s license number to the insurer, 29 of each insured owner or operator, and the address of the named 30 insured. 31 (2) The make, year, and vehicle identification number of 32 each insured vehicle. 33 (3) The policy number and effective date of each policy. 34 b. A record provided by an insurer under subsection 1, 35 -6- LSB 6003YH (5) 85 dea/nh 6/ 12

H.F. 2393 paragraph “b” , shall include all of the following: 1 (1) The named insured. 2 (2) The policy number, effective date, and expiration date 3 of each policy. 4 (3) The following information, if available: 5 (a) The name, date of birth, and driver’s license number of 6 each insured owner or operator, and the address of the named 7 insured. 8 (b) The make, year, and vehicle identification number of 9 each insured vehicle. 10 3. An insurer shall provide the information required under 11 this section via electronic means or via another means the 12 designated agent agrees to accept. 13 4. a. The department may assess a civil penalty of not more 14 than two hundred fifty dollars for each day an insurer fails to 15 comply with this section. 16 b. If an insurer shows that the failure to comply with this 17 section was inadvertent, accidental, or the result of excusable 18 neglect, the department may waive the penalty. 19 Sec. 7. NEW SECTION . 321B.6 Disclosure of database 20 information —— penalty. 21 1. Information provided to the designated agent and 22 information contained in the database under this chapter are 23 confidential. Such information may not be disclosed, except 24 as follows: 25 a. For the purpose of investigating, litigating, or 26 enforcing the financial liability coverage requirements 27 of section 321.20B, the designated agent shall provide an 28 electronic record to a state or local government agency or 29 court verifying motor vehicle financial liability coverage 30 information. 31 b. For the purpose of investigating, litigating, or 32 enforcing the financial liability coverage requirements of 33 section 321.20B, the designated agent shall, upon request, 34 issue to any state or local government agency or court a 35 -7- LSB 6003YH (5) 85 dea/nh 7/ 12

H.F. 2393 certificate documenting motor vehicle financial liability 1 coverage, according to the database, of a specific individual 2 or motor vehicle for the time period designated by the 3 government agency or court. 4 c. Upon request, the department or its designated agent 5 shall disclose whether an individual is covered under a motor 6 vehicle insurance policy and the insurance company name to: 7 (1) The individual or, if the individual is deceased, 8 any person who is an interested person of the individual as 9 provided under chapter 633. 10 (2) The parent or legal guardian of the individual if the 11 individual is an unemancipated minor. 12 (3) The legal guardian of the individual if the individual 13 is legally incapacitated. 14 (4) A person who has power of attorney for the individual. 15 (5) A person who submits a notarized release from the 16 individual dated no more than ninety days before the date the 17 request is made. 18 (6) A person suffering loss or injury in a motor vehicle 19 accident in which the individual is involved, but only as part 20 of an accident report as authorized in section 321.271 relating 21 to access to accident reports. 22 d. For the purpose of investigating, enforcing, or 23 prosecuting laws or issuing citations, information may be 24 provided to state or local law enforcement agencies related 25 to a motor vehicle owner or operator’s financial liability 26 coverage under section 321.20B. 27 e. Upon request of a peace officer acting in an official 28 capacity under the provisions of paragraph “d” , the department 29 or the designated agent shall, upon request, disclose relevant 30 information contained in the database. 31 f. For the purpose of the state auditor conducting audits 32 of the program. 33 g. Upon request of a financial institution for the purpose 34 of protecting the financial institution’s bona fide security 35 -8- LSB 6003YH (5) 85 dea/nh 8/ 12

H.F. 2393 interest in a motor vehicle. 1 2. a. The department may allow the designated agent to 2 prepare and deliver, upon request, a report on the insurance 3 information of a person or motor vehicle in accordance with 4 this section. The report may be in the form of: 5 (1) A certified copy that is considered admissible in any 6 court proceeding in the same manner as the original. 7 (2) Information accessible through the internet or through 8 another electronic medium if the department determines that 9 sufficient security is provided to ensure compliance with this 10 section. 11 b. The department may allow the designated agent to charge a 12 fee established by the department for each of the following: 13 (1) A document authenticated, including each certified 14 copy. 15 (2) A record accessed through the internet or through 16 another electronic medium. 17 (3) A record provided to a financial institution under 18 subsection 1, paragraph “g” . 19 3. Any person who knowingly releases or discloses 20 information from the database for a purpose other than those 21 authorized in this section or to a person who is not entitled 22 to such information is guilty of a class “D” felony. 23 4. Neither the state nor the department’s designated agent 24 are liable to any person for gathering, managing, or using the 25 information in the database in compliance with this chapter. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill establishes a motor vehicle insurance verification 30 program within the department of transportation. The 31 department is required to contract with a third party to act 32 as the department’s designated agent for administration of the 33 program. 34 The designated agent is required to establish and maintain 35 -9- LSB 6003YH (5) 85 dea/nh 9/ 12

H.F. 2393 a database containing information from insurers relating to 1 motor vehicle insurance coverage for registered motor vehicles, 2 personal identification information for licensed drivers 3 provided by the department, and any other information provided 4 to the database by the department. 5 At least twice a month, the designated agent shall update the 6 database and compare current motor vehicle registrations with 7 updated insurance information. The files in the database shall 8 be archived semiannually and audited by the department at least 9 annually. The bill requires the department to adopt rules for 10 administration of the database. 11 If database records show that a registered motor vehicle 12 is not covered under an owner’s policy of liability insurance 13 for three months, the designated agent shall send a notice to 14 the owner requiring the owner to respond within 15 days by 15 providing proof of financial liability coverage or proof that 16 the owner is exempt from the requirement to maintain financial 17 liability coverage. If the owner fails to respond, a second 18 notice will be sent. If the owner does not respond to the 19 second notice, the owner’s motor vehicle registration will be 20 revoked by the department and the owner will be required to 21 surrender the registration plates and registration receipt for 22 the vehicle to the county treasurer. In order to obtain a 23 new registration for the vehicle, the owner must comply with 24 financial responsibility requirements and pay an administrative 25 fee of $100. The fees are to be used by the department 26 exclusively to offset the cost of administering the program. 27 Any fees in excess of the amount needed for administration of 28 the program are to be transferred to the road use tax fund 29 annually on June 30. 30 The bill provides that if a motor vehicle is covered by a 31 form of financial liability coverage other than an insurance 32 policy, that fact shall be noted in the database, with a 33 requirement that the information be updated annually by the 34 owner. 35 -10- LSB 6003YH (5) 85 dea/nh 10/ 12

H.F. 2393 The bill prohibits a person from providing false or 1 fraudulent information to the department or the department’s 2 designated agent in relation to the motor vehicle insurance 3 verification program. A violation is a simple misdemeanor. 4 The bill requires each insurer that issues a policy that 5 includes motor vehicle liability coverage, uninsured motorist 6 coverage, underinsured motorist coverage, or personal injury 7 coverage to the owner of a motor vehicle to provide, before the 8 7th and the 21st of each month, to the department’s designated 9 agent a record of each motor vehicle insurance policy issued by 10 the insurer and in effect for vehicles registered or garaged 11 in this state as of the date of the previous submission. 12 Insurers that issue commercial motor vehicle insurance coverage 13 must also provide a record of each commercial motor vehicle 14 insurance policy issued by the insurer and in effect for 15 vehicles registered or garaged in this state as of the date 16 of the previous submission. Vehicles subject to apportioned 17 registration are not included in this requirement. Insurers 18 that fail to comply with the reporting requirement may be 19 assessed a civil penalty of $250 per day for each day the 20 insurer fails to comply. However, the department may waive 21 the penalty upon a showing that the failure was inadvertent, 22 accidental, or the result of excusable neglect. 23 The bill states that information contained in the database 24 is confidential, but provides exceptions for disclosures to 25 state or local government agencies and courts for specified 26 purposes; to individuals and certain other authorized persons; 27 for purposes of an accident investigation; to law enforcement 28 agencies and peace officers for certain official purposes; 29 to the state auditor; and to financial institutions with a 30 security interest in a motor vehicle. The designated agent 31 may be authorized to provide certified copies or electronic 32 records, as appropriate, and to charge a fee for the provision 33 of records and authentication of documents. 34 A person who knowingly releases or discloses information 35 -11- LSB 6003YH (5) 85 dea/nh 11/ 12