Senate Study Bill 1021 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED TREASURER OF STATE BILL) A BILL FOR An Act relating to the filing of a certificate of deposit 1 by the owner of a motor vehicle as proof of financial 2 responsibility. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1105DP (2) 85 dea/nh

S.F. _____ H.F. _____ Section 1. Section 321.1, subsection 24B, paragraph c, Code 1 2013, is amended to read as follows: 2 c. A valid statement issued by the treasurer of state 3 pursuant to certificate of deposit filed with the department 4 as provided in section 321A.25 attesting to the filing of a 5 certificate of deposit with the treasurer of state . 6 Sec. 2. Section 321A.18, subsection 3, Code 2013, is amended 7 to read as follows: 8 3. A statement issued by the treasurer of state attesting to 9 the filing of a certificate of deposit with the treasurer of 10 state as provided in section 321A.25 . 11 Sec. 3. Section 321A.25, Code 2013, is amended to read as 12 follows: 13 321A.25 Certificate of deposit as proof. 14 1. Proof of financial responsibility may be evidenced 15 by the statement of the treasurer of state that the person 16 named in the statement has filed filing with the treasurer 17 of state department fifty-five thousand dollars in the form 18 of an endorsed a certificate of deposit made payable jointly 19 to the person and the treasurer of state department . The 20 certificate of deposit shall be obtained from an Iowa financial 21 institution in the amount of fifty-five thousand dollars plus 22 any early withdrawal penalty fee. The treasurer of state 23 shall promptly notify the director of transportation of the 24 name and address of the person to whom the statement has been 25 issued. Upon receipt of the notification certificate of 26 deposit , the director of transportation department shall issue 27 to the person a security insurance card for each motor vehicle 28 registered in this state by the person. The security insurance 29 card shall state the name and address of the person and the 30 registration number of the motor vehicle for which the card is 31 issued. The treasurer of state shall not accept a certificate 32 of deposit and issue a statement for it and the department 33 shall not accept the statement a certificate of deposit unless 34 accompanied by evidence that there are no unsatisfied judgments 35 -1- LSB 1105DP (2) 85 dea/nh 1/ 3

S.F. _____ H.F. _____ of any character against the person in the county where the 1 person resides. 2 2. Such certificate of deposit shall be held by the 3 treasurer of state department to satisfy, in accordance with 4 this chapter , any execution on a judgment issued against 5 the person filing the certificate of deposit, for damages, 6 including damages for care and loss of services, because of 7 bodily injury to or death of any person, or for damages because 8 of injury to or destruction of property, including the loss of 9 use of property, resulting from the ownership, maintenance, 10 use, or operation of a motor vehicle after the certificate of 11 deposit was filed. A certificate of deposit so filed shall not 12 be subject to attachment or execution unless the attachment 13 or execution arises out of a suit for damages as previously 14 provided in this subsection . 15 Sec. 4. Section 321A.27, Code 2013, is amended to read as 16 follows: 17 321A.27 Substitution of proof. 18 The department shall consent to the cancellation of a bond 19 or certificate of insurance or the department shall direct and 20 the treasurer of state shall return a certificate of deposit 21 to the person entitled to the certificate of deposit upon 22 the substitution and acceptance of other adequate proof of 23 financial responsibility pursuant to this chapter . 24 Sec. 5. Section 321A.29, subsection 1, unnumbered paragraph 25 1, Code 2013, is amended to read as follows: 26 The department shall upon request consent to the immediate 27 cancellation of a bond or certificate of insurance, or the 28 department shall direct and the treasurer of state shall return 29 to the person entitled thereto a certificate of deposit filed 30 pursuant to this chapter as proof of financial responsibility, 31 or the department shall waive the requirement of filing proof, 32 in any of the following events: 33 Sec. 6. Section 321A.29, subsection 2, Code 2013, is amended 34 to read as follows: 35 -2- LSB 1105DP (2) 85 dea/nh 2/ 3

S.F. _____ H.F. _____ 2. The department shall not consent to the cancellation 1 of a bond or the return of a certificate of deposit in the 2 event an action for damages upon a liability covered by such 3 proof is then pending or a judgment upon any such liability is 4 unsatisfied, or in the event the person who has filed such bond 5 or such certificate of deposit has within one year immediately 6 preceding such request been involved as an operator or owner in 7 any motor vehicle accident resulting in injury or damage to the 8 person or property of others. An affidavit of the applicant as 9 to the nonexistence of such facts, or that the applicant has 10 been released from all of the applicant’s liability, or has 11 been finally adjudicated not to be liable, for such injury or 12 damage, shall be sufficient evidence thereof in the absence of 13 evidence to the contrary in the records of the department. 14 EXPLANATION 15 Under current law, a person who is required to file proof of 16 financial responsibility in order to operate a motor vehicle 17 may do so by filing $55,000 with the treasurer of state in 18 the form of a certificate of deposit made payable jointly to 19 the person and the treasurer of state. This bill amends Code 20 section 321A.25 to provide that the certificate of deposit 21 is to be made payable to the department of transportation 22 and filed directly with the department, rather than with the 23 treasurer of state. The bill makes conforming amendments 24 to the definition of “financial liability coverage” in Code 25 section 321.1, the list of alternate methods of filing proof of 26 financial responsibility contained in Code section 321A.18, and 27 related provisions in Code sections 321A.27 and 321A.29. 28 -3- LSB 1105DP (2) 85 dea/nh 3/ 3