HSB 562 (LSB 5119YC (3) 86)

HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON PUBLIC SAFETY BILL BY CHAIRPERSON BAUDLER)

A BILL FOR

An Act relating to motor vehicle impoundment when the vehicle is operated by a person with a denied, canceled, suspended, or revoked driver’s license, and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321.89, subsection 1, paragraph a, subparagraph (6), Code 2016, is amended to read as follows:
   (6)  A vehicle that has been impounded pursuant to section 321.218B or 321J.4B by order of the court and whose owner has not paid the impoundment fees after notification by the person or agency responsible for carrying out the impoundment order.
    Sec. 2.  Section 321.218, subsection 1, Code 2016, is amended to read as follows:
   1.  A person whose driver’s license or operating privilege has been denied, canceled, suspended, or revoked as provided in this chapter or as provided in section 252J.8 or section 901.5, subsection 10, and who operates a motor vehicle upon the highways of this state while the license or privilege is denied, canceled, suspended, or revoked, commits a simple misdemeanor. In addition to any other penalties, the punishment imposed for a violation of this subsection shall include assessment of a fine of not less than two hundred fifty dollars nor more than one thousand five hundred dollars and impoundment, pursuant to section 321.218B, of the motor vehicle operated in violation of this subsection.
    Sec. 3.  NEW SECTION.  321.218B  Motor vehicle impoundment —— penalty —— liability of vehicle owner.
   1.  For purposes of this section:
   a.  “Impoundment” means the process of seizure and confinement of a motor vehicle within an enclosed area, for the purpose of restricting access to the vehicle.
   b.  “Owner” means the registered titleholder of a motor vehicle, except in the case where a rental or leasing agency is the registered titleholder, in which case the lessee of the vehicle shall be treated as the owner of the vehicle for purposes of this section.
   2.  a.  A motor vehicle is subject to impoundment if a person operates the vehicle while the person’s driver’s license or operating privilege has been denied, canceled, suspended, or revoked in violation of section 321.218, subsection 1.
   b.  Impoundment of the vehicle under this section may occur in addition to any penalty imposed under this chapter for the underlying criminal offense.
   3.  The motor vehicle operated by the person in violation of section 321.218, subsection 1, may be immediately impounded in accordance with this section.
   a.  A person or agency taking possession of an impounded motor vehicle shall do the following:
   (1)  Make an inventory of any property contained in the vehicle, according to the person’s or agency’s inventory procedure. The person or agency responsible for the vehicle shall also deliver a copy of the inventory to the county attorney.
   (2)  Contact all rental or leasing agencies registered as owners of the vehicle, as well as any parties registered as holders of a secured interest in the vehicle, in accordance with subsection 11.
   b.  The county attorney shall file a copy of the inventory with the district court as part of each file related to the violation of section 321.218, subsection 1.
   4.  An owner of a motor vehicle impounded under this section, who knows of, should have known of, or gives consent to the operation of the vehicle in violation of section 321.218, subsection 1, shall be all of the following:
   a.  Guilty of a simple misdemeanor.
   b.  Jointly and severally liable for any damages caused by the person who operated the motor vehicle, subject to the provisions of chapter 668.
   5.  a.  (1)  The following persons shall be entitled to immediate return of the motor vehicle without payment of costs associated with the impoundment of the vehicle:
   (a)  The owner of the motor vehicle, if the person who operated the vehicle is not a co-owner of the vehicle.
   (b)  A motor vehicle rental or leasing agency that owns the vehicle.
   (c)  A person who owns the motor vehicle and who is charged but is not convicted of the violation of section 321.218, subsection 1, which resulted in the impoundment of the vehicle under this section.
   (2)  A person shall be entitled to immediate return of the vehicle after payment of costs associated with the impoundment of the vehicle if all of the following apply:
   (a)  The person is an owner of the motor vehicle.
   (b)  The person’s criminal charge for violating section 321.218, subsection 1, that resulted in the impoundment of the vehicle is pending.
   (c)  The period of impoundment under paragraph “d” that would be required if the person was convicted of the offense has expired.
   (3)  A person who paid the costs associated with the impoundment of the vehicle under subparagraph (2) shall be reimbursed by the person or agency who received the payment for the total amount paid if the person is not convicted of the violation.
   b.  Upon conviction of the defendant for a violation of section 321.218, subsection 1, the court may order continued impoundment of the motor vehicle used in the commission of the offense if the convicted person is the owner of the vehicle and the period of impoundment required by paragraph “d” has not expired. The court shall specify all of the following in the order:
   (1)  The vehicle that is subject to the order.
   (2)  The period of impoundment.
   (3)  The person or agency responsible for carrying out the order requiring continued impoundment of the vehicle.
   c.  If the vehicle subject to the order is in the custody of a law enforcement agency, the court shall designate that agency as the responsible agency. If the vehicle is not in the custody of a law enforcement agency, the person or agency responsible for carrying out the order shall be any person deemed appropriate by the court, including but not limited to a law enforcement agency with jurisdiction over the area in which the residence of the vehicle owner is located.
   d.  The period of impoundment of a motor vehicle under this section shall be seven days for a first offense in violation of section 321.218, subsection 1. For a second or subsequent offense, the period of impoundment shall be double the number of days required for the previous offense. The period of impoundment shall commence on the first day that the vehicle is impounded.
   e.  The clerk of the district court shall send a copy of the order to the department, the person convicted of the offense, the person or agency responsible for executing the order for impoundment, and any holders of any security interests in the vehicle.
   f.  (1)  If the vehicle subject to the court order is not in the custody of a law enforcement agency, the person or agency designated in the order as the person or agency responsible for executing the order shall, upon receipt of the order, promptly locate the vehicle specified in the order, seize the vehicle and the license plates, and send or deliver the vehicle’s license plates to the department.
   (2)  If the vehicle is located at a place other than the place at which the court order is to be carried out, the person or agency responsible for executing the order shall arrange for the vehicle to be moved to the place of impoundment. When the vehicle is found, is impounded, and is at the place of impoundment, the person or agency responsible for executing the order shall notify the clerk of the date on which the order was executed. The clerk shall notify the department of the date on which the order was executed.
   g.  Upon receipt of a court order for continued impoundment of the motor vehicle, the person or agency shall review the value of the vehicle in relation to the costs associated with the period of impoundment of the vehicle specified in the order. If the person or agency determines that the costs of impoundment of the vehicle exceed the actual wholesale value of the vehicle, the person or agency may treat the vehicle as an abandoned vehicle pursuant to section 321.89. If the person or agency elects to treat the vehicle as abandoned, the person or agency shall notify the registered owner of the vehicle that the vehicle shall be deemed abandoned and shall be sold in the manner provided in section 321.89 if payment of the total cost of impoundment is not received within twenty-one days of the mailing of the notice. The person or agency shall provide documentation regarding the valuation of the vehicle and the costs of impoundment.
   6.  a.  Upon receipt of a court order for continued impoundment of the motor vehicle, the impounding authority shall seize the vehicle’s license plates and registration, and shall send or deliver them to the department.
   b.  The department shall destroy license plates received under this section and shall not authorize the release of the vehicle or the issuance of new license plates for the vehicle until the period of impoundment has expired, and the fee and costs assessed under subsection 7 have been paid. The fee for issuance of new license plates and certificates of registration shall be the same as for the replacement of lost, mutilated, or destroyed license plates and certificates of registration.
   7.  a.  Upon conviction of a person for a violation of section 321.218, subsection 1, and impoundment of the vehicle under this section, the court shall assess to the person, in addition to any other penalty, the amount of any expenses for towing, storage, and any other costs of impounding the vehicle, to be paid to the clerk of the district court. However, the amount assessed to the person for storage of the vehicle shall not exceed twenty-five dollars per day.
   b.  The person or agency responsible for impoundment under this section shall inform the court of the costs of towing, storage, and any other costs of impounding the vehicle. Upon payment of the costs, the clerk shall forward a copy of the receipt to the department.
   c.  If a law enforcement agency impounds a motor vehicle, the amount of the expenses deposited with the clerk shall be paid by the clerk to the law enforcement agency responsible for executing the order to reimburse the agency for costs incurred for impoundment equipment and, if required, in sending officers to search for and locate the vehicle specified in the impoundment order.
   8.  Operating a motor vehicle on a street or highway in this state in violation of an order of impoundment is a serious misdemeanor. A motor vehicle which is subject to an order of impoundment that is operated on a street or highway in this state in violation of the order shall be seized and forfeited to the state under chapters 809 and 809A.
   9.  Once the period of impoundment has expired, the owner of the motor vehicle shall have thirty days to claim the vehicle and pay all charges imposed under this section. If the owner or the owner’s designee has not claimed the vehicle and paid all charges imposed under this section within seven days from the date of expiration of the period, the clerk shall send written notification to the vehicle owner, at the owner’s last known address, notifying the owner of the date of expiration of the period of impoundment and of the period in which the vehicle must be claimed. If the vehicle owner fails to claim the vehicle and pay all charges imposed within the thirty-day period, the vehicle shall be forfeited to the state under chapters 809 and 809A.
   10.  a.  (1)  During the period of impoundment, the owner of an impounded vehicle shall not sell or transfer the title of the vehicle.
   (2)  A person convicted of an offense under section 321.218, subsection 1, shall not purchase or register any motor vehicle during the period of impoundment or license revocation.
   (3)  A violation of this paragraph “a” is a serious misdemeanor.
   b.  If, during the period of impoundment, the title to the motor vehicle which is the subject of the order is transferred by the foreclosure of a chattel mortgage, a sale upon execution, the cancellation of a conditional sales contract, or an order of a court, the court which enters the order that permits transfer of the title shall notify the department of the transfer of the title. The department shall enter notice of the transfer of the title to the vehicle in the previous owner’s vehicle registration record.
   11.  a.  Notwithstanding other requirements of this section:
   (1)  Upon learning the address or phone number of a rental or leasing company which owns a motor vehicle impounded under this section, the peace officer, county attorney, or attorney general shall immediately contact the company to inform the company that the vehicle is available for return to the company.
   (2)  The holder of a security interest in a vehicle which is impounded pursuant to this section or forfeited in the manner provided in chapters 809 and 809A shall be notified of the impoundment or forfeiture within seventy-two hours of the seizure of the vehicle and shall have the right to claim the vehicle without payment of any fees or surcharges unless the value of the vehicle exceeds the value of the security interest held by the creditor.
   (3)  Any of the following persons may make application to the court for permission to operate a motor vehicle which is impounded pursuant to this section during the period of impoundment, if the applicant’s driver’s license or operating privilege has not been suspended, denied, revoked, or barred:
   (a)  A person, other than the person who committed the offense which resulted in the impoundment, who is not a member of the immediate family of the person who committed the offense but is a joint owner of the vehicle.
   (b)  A member of the immediate family of the person who committed the offense which resulted in the impoundment, if the member demonstrates that the vehicle that is subject to the order for impoundment is the only vehicle possessed by the family.
   b.  For purposes of this section, “a member of the immediate family” means a spouse, child, or parent of the person who committed the offense.
   12.  The impoundment or forfeiture of a motor vehicle under this section does not constitute loss of use of a motor vehicle for purposes of any contract of insurance.
    Sec. 4.  Section 809A.3, subsection 2, Code 2016, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0a.  Section 321.218B, subsection 8.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill provides for the impoundment of a motor vehicle operated by a person whose driver’s license or operating privilege has been denied, canceled, suspended, or revoked in violation of Code section 321.218. The impoundment procedures set forth in the bill are similar to those set forth in Code section 321J.4B, which deals with vehicle impoundment related to operating-while-intoxicated offenses. The bill provides that a vehicle operated by a person in violation of Code section 321.218 may be immediately impounded.
   Under the bill, the owner of an impounded motor vehicle who knows of, should have known of, or gives consent to the operation of the vehicle in violation of Code section 321.218 is guilty of a simple misdemeanor and jointly and severally liable for any damages caused by the person who operated the vehicle. A simple misdemeanor is punishable by a fine of at least $65 but not to exceed $625 and imprisonment not to exceed 30 days.
   The bill provides that certain persons are entitled to immediate return of the impounded vehicle without payment of costs, including the owner of the vehicle if the person who operated the vehicle is not a co-owner, a motor vehicle rental or leasing agency that owns the vehicle, and a person who owns the vehicle and who is charged but not convicted of the violation which resulted in the impoundment.
   A person shall be entitled to immediate return of the vehicle after payment of costs associated with the impoundment if the person is an owner of the vehicle, the person’s criminal charge that resulted in the impoundment is pending, and the period of impoundment that would be required if the person was convicted of the offense has expired. A person who paid the costs associated with the impoundment shall be reimbursed by the person or agency who received the payment if the person is not convicted of the violation.
   The bill provides that a court may order the continued impoundment of the vehicle if the convicted person is the owner of the vehicle and the required period of impoundment has not expired. The period of impoundment of a vehicle under the bill is seven days for a first offense. For a second or subsequent offense, the period of impoundment is double the number of days required for the previous offense. For example, for a third offense, the period is 28 days, and for a fifth offense, the period is 112 days.
   The bill requires the clerk of the district court to send a copy of the order to the department of transportation (DOT), the person convicted of the offense, the person or agency responsible for executing the order for impoundment, and any holders of any security interests in the vehicle.
   The bill provides that the person or agency responsible for executing the order shall, upon receipt of the order, promptly locate the vehicle specified in the order, seize the vehicle and the registration plates, arrange for the vehicle to be moved to the place of impoundment, and send or deliver the vehicle’s registration plates to the DOT.
   If the person or agency responsible for impounding the vehicle determines that the costs of impoundment exceed the actual wholesale value of the vehicle, the person or agency may treat the vehicle as an abandoned vehicle and notify the registered owner that the vehicle shall be deemed abandoned and shall be sold if payment of the total cost of impoundment is not received within 21 days.
   The bill requires the DOT to destroy registration plates received under the bill and prohibits the DOT from authorizing the release of the vehicle or issuing new plates for the vehicle until the period of impoundment has expired and the costs have been paid.
   The bill provides that the court shall assess to the person, in addition to any other penalty, the amount of any expenses for towing, storage, and any other costs of impounding the vehicle. However, the amount assessed to the person for storage of the vehicle shall not exceed $25 per day.
   The bill prohibits operating a motor vehicle in violation of an order for impoundment, and provides that a violation is a serious misdemeanor. A serious misdemeanor is punishable by a fine of at least $315 but not more than $1,875, and imprisonment not to exceed one year. In addition, the bill provides that a motor vehicle which is subject to an order for impoundment that is operated on a street or highway shall be seized and forfeited to the state under Code chapters 809 (disposition of seized property) and 809A (forfeiture reform Act).
   Once the period of impoundment has expired, the owner of the vehicle shall have 30 days to claim the vehicle and pay all charges. If the owner has not claimed the vehicle and paid all charges within seven days from the date of expiration of the period, the bill requires the clerk to send written notification to the vehicle owner, at the owner’s last known address, notifying the owner of the date of expiration of the period of impoundment and of the period in which the vehicle must be claimed. If the vehicle owner fails to claim the vehicle and pay all charges imposed within the 30-day period, the vehicle shall be forfeited to the state under Code chapters 809 and 809A.
   During the period of impoundment, the bill prohibits the owner of an impounded vehicle from selling or transferring the title of the vehicle and from purchasing or registering any other vehicle. A violation of this provision is a serious misdemeanor. However, a court may permit transfer of the title in certain circumstances, and is required to notify the DOT of the title transfer.
   The bill requires that upon learning the address or phone number of a rental or leasing company which owns an impounded vehicle, the peace officer, county attorney, or attorney general shall immediately contact the company to inform the company that the vehicle is available for return to the company. The holder of a security interest in a vehicle which is impounded or forfeited shall be notified of the impoundment or forfeiture within 72 hours of the seizure of the vehicle and shall have the right to claim the vehicle without payment of any fees or surcharges unless the value of the vehicle exceeds the value of the security interest held by the creditor.
   The bill provides that certain persons may apply to the court for permission to operate a vehicle which is impounded, including a person other than the person who committed the offense who is not a member of the immediate family of the person who committed the offense but is a joint owner of the vehicle, and a member of the immediate family of the person who committed the offense if the member demonstrates that the vehicle is the only vehicle possessed by the family.
   The impoundment or forfeiture of a motor vehicle under the bill does not constitute loss of use of a vehicle for purposes of any contract of insurance.