H.F. _____ Section 1. Section 321.11, subsection 3, Code 2015, 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 under this chapter. 34 3. “Department” means the department of transportation. 35 -1- LSB 1042YC (1) 86 ns/nh 1/ 12

H.F. _____ 4. “Designated agent” means the third party with which the 1 department contracts under section 321B.3. 2 5. “Financial institution” means financial institution as 3 defined in 18 U.S.C. §20. 4 6. “Motor vehicle” means motor vehicle as defined in section 5 321.1. 6 7. “Program” means the motor vehicle insurance verification 7 program created under this chapter. 8 Sec. 4. NEW SECTION . 321B.3 Motor vehicle insurance 9 verification program. 10 1. A motor vehicle insurance verification program is 11 created within the department to be administered by the 12 department. The purposes of the program include all of the 13 following: 14 a. To establish a motor vehicle insurance verification 15 database to verify compliance with the requirements of section 16 321.20B. 17 b. To assist in reducing the number of uninsured motor 18 vehicles on the highways of the state. 19 c. To assist in increasing compliance with motor vehicle 20 registration requirements and for other law enforcement 21 purposes. 22 d. To assist in protecting the bona fide security interests 23 of financial institutions in motor vehicles. 24 2. The department shall contract with a third party to act 25 as the department’s designated agent for administration of this 26 chapter. The designated agent shall establish and maintain a 27 computer database containing the following information: 28 a. Information provided by insurers under section 321B.5. 29 b. Information provided by the department under subsection 30 5. 31 c. Any other information provided by the department pursuant 32 to this chapter. 33 3. The database shall be developed and maintained in 34 accordance with guidelines established by the department by 35 -2- LSB 1042YC (1) 86 ns/nh 2/ 12

H.F. _____ rule to allow authorized state and local law enforcement 1 agencies and financial institutions to efficiently access the 2 records of the database, including reports useful for the 3 implementation of this chapter. 4 a. Database reports shall be in a form and contain 5 information approved by the department. 6 b. Database reports may be made available through the 7 department’s internet site or through other electronic media 8 if the department determines that sufficient security is 9 provided to ensure compliance with the provisions of this 10 chapter regarding limitations on disclosure of information in 11 the database. 12 4. At least twice monthly, the designated agent shall do the 13 following, using information provided by the department: 14 a. Update the database with motor vehicle insurance 15 information provided by insurers in accordance with section 16 321B.5. 17 b. Compare all current motor vehicle registrations against 18 the database. 19 5. The department shall provide the designated agent with 20 the name, date of birth, address, and driver’s license number 21 of each person in the department’s driver’s license database. 22 6. The department shall adopt rules in accordance with 23 chapter 17A establishing procedures for using the department’s 24 driver’s license database for the purposes of administering and 25 enforcing this chapter. 26 7. a. The designated agent shall archive database files at 27 least semiannually for auditing purposes. 28 b. The department shall audit the program at least annually. 29 The audit shall include verification of: 30 (1) Billings made by the designated agent. 31 (2) The accuracy of the designated agent’s matching of 32 vehicle registration records with insurance data. 33 Sec. 5. NEW SECTION . 321B.4 Enforcement of financial 34 responsibility requirements —— penalty. 35 -3- LSB 1042YC (1) 86 ns/nh 3/ 12

H.F. _____ 1. If records in the database indicate that a registered 1 motor vehicle is not covered under an owner’s policy of 2 liability insurance for three consecutive months, at the 3 direction of the department, the designated agent shall provide 4 notice by first-class mail to the owner of the motor vehicle 5 that the owner has fifteen days from the date the notice was 6 mailed to provide one of the following: 7 a. Proof of financial liability coverage as defined in 8 section 321.1, subsection 24B. 9 b. Proof that the owner is exempt from the requirement to 10 maintain proof of financial liability coverage under section 11 321.20B. 12 2. If, after fifteen days, the owner of the motor vehicle 13 fails to provide satisfactory proof of financial liability 14 coverage, the designated agent shall provide a second notice 15 by first-class mail to the owner of the motor vehicle allowing 16 the owner an additional fifteen days from the date the second 17 notice was mailed to provide the information requested under 18 subsection 1. 19 3. a. The designated agent shall update the database 20 regarding each notice sent to a motor vehicle owner under 21 subsections 1 and 2, indicating the information provided by the 22 motor vehicle owner or the owner’s failure to provide proof of 23 financial liability coverage, as applicable. 24 b. If the owner of a motor vehicle provides proof to the 25 department or the designated agent that the owner’s motor 26 vehicle is covered by an acceptable form of financial liability 27 coverage described in section 321.1, subsection 24B, paragraph 28 “b” , “c” , or “d” , the information shall be recorded in the 29 database, and the owner shall be required to update the 30 information annually to avoid receiving a notice for failure 31 to maintain financial liability coverage for the owner’s motor 32 vehicle. 33 4. a. If the owner of a motor vehicle fails to provide 34 proof of financial liability coverage following receipt of the 35 -4- LSB 1042YC (1) 86 ns/nh 4/ 12

H.F. _____ second notice under subsection 2, the designated agent shall 1 notify the department, and the department shall revoke the 2 registration of the motor vehicle. 3 b. The department shall provide to the owner of the motor 4 vehicle appropriate notice of the revocation, order the owner 5 to surrender the registration plates and registration receipt 6 for the vehicle to the county treasurer, advise the owner of 7 the legal consequences of operating a vehicle with revoked 8 registration and without financial liability coverage, and 9 instruct the owner on how to reinstate the vehicle registration 10 once the owner has obtained financial liability coverage for 11 the vehicle. 12 5. a. A person shall not provide a false or fraudulent 13 statement to the department or the department’s designated 14 agent in regard to proceedings under this chapter. 15 b. In addition to any other penalties, a person who violates 16 paragraph “a” is guilty of a simple misdemeanor. 17 6. A revocation of registration under this chapter is in 18 addition to any other penalty imposed by law. This chapter 19 does not affect other actions or penalties that may be taken or 20 imposed for a violation of section 321.20B or other law. 21 7. a. A registration that has been revoked under this 22 section shall not be reinstated and a new registration shall 23 not be issued to the holder of the revoked registration until 24 the person does all of the following: 25 (1) Pays to the department an administrative reinstatement 26 fee of one hundred dollars, in addition to any other penalty 27 imposed by law. 28 (2) Complies with the requirements of section 321.20B and 29 this chapter. 30 b. Reinstatement fees collected under this subsection 31 shall be retained by the department as repayment receipts as 32 defined in section 8.2 and shall be used exclusively to offset 33 the costs of administering the program. Fees collected by 34 the department that are in excess of the amount necessary for 35 -5- LSB 1042YC (1) 86 ns/nh 5/ 12

H.F. _____ administration of the program shall be transferred to the road 1 use tax fund annually on June 30. 2 Sec. 6. NEW SECTION . 321B.5 Motor vehicle insurance 3 reporting —— penalty. 4 1. a. Except as provided in paragraphs “b” and “c” , each 5 insurer that issues a policy to a motor vehicle owner in 6 this state that includes motor vehicle liability coverage, 7 uninsured motorist coverage, underinsured motorist coverage, 8 or personal injury coverage shall, on or before the seventh 9 and twenty-first days of each calendar month, submit to the 10 department’s designated agent a record of each motor vehicle 11 insurance policy that was issued by the insurer and in effect 12 for a vehicle registered or garaged in this state as of the 13 date of the previous submission. 14 b. Each insurer that issues commercial motor vehicle 15 insurance coverage shall, on or before the seventh day of each 16 calendar month, submit to the department’s designated agent 17 a record of each commercial motor vehicle insurance policy 18 that was issued by the insurer and in effect for a vehicle 19 registered or garaged in this state as of the date of the 20 previous submission. 21 c. An insurer is not required to provide a record of a motor 22 vehicle insurance policy under paragraph “a” or “b” if the 23 policy covers a vehicle that is registered under chapter 326. 24 d. This subsection does not preclude more frequent 25 reporting. 26 2. a. A record provided by an insurer under subsection 1, 27 paragraph “a” , shall include all of the following: 28 (1) The name, date of birth, and driver’s license number, if 29 the insured provides a driver’s license number to the insurer, 30 of each insured owner or operator, and the address of the named 31 insured. 32 (2) The make, year, and vehicle identification number of 33 each insured vehicle. 34 (3) The policy number and effective date of each policy. 35 -6- LSB 1042YC (1) 86 ns/nh 6/ 12

H.F. _____ b. A record provided by an insurer under subsection 1, 1 paragraph “b” , shall include all of the following: 2 (1) The named insured. 3 (2) The policy number, effective date, and expiration date 4 of each policy. 5 (3) The following information, if available: 6 (a) The name, date of birth, and driver’s license number of 7 each insured owner or operator, and the address of the named 8 insured. 9 (b) The make, year, and vehicle identification number of 10 each insured vehicle. 11 3. An insurer shall provide the information required under 12 this section via electronic means or via another means the 13 designated agent agrees to accept. 14 4. a. The department may assess a civil penalty of not more 15 than two hundred fifty dollars for each day an insurer fails to 16 comply with this section. 17 b. If an insurer shows that the failure to comply with this 18 section was inadvertent, accidental, or the result of excusable 19 neglect, the department may waive the civil penalty. 20 Sec. 7. NEW SECTION . 321B.6 Disclosure of database 21 information —— penalty. 22 1. Information provided to the designated agent and 23 information contained in the database under this chapter are 24 confidential. Such information may not be disclosed, except 25 as follows: 26 a. For the purpose of investigating, litigating, or 27 enforcing the financial liability coverage requirements 28 of section 321.20B, the designated agent shall provide an 29 electronic record to a state or local government agency or 30 court verifying motor vehicle financial liability coverage 31 information. 32 b. For the purpose of investigating, litigating, or 33 enforcing the financial liability coverage requirements of 34 section 321.20B, the designated agent shall, upon request, 35 -7- LSB 1042YC (1) 86 ns/nh 7/ 12

H.F. _____ issue to any state or local government agency or court a 1 certificate documenting motor vehicle financial liability 2 coverage, according to the database, of a specific individual 3 or motor vehicle for the time period designated by the 4 government agency or court. 5 c. Upon request, the department or its designated agent 6 shall disclose whether an individual is covered under a motor 7 vehicle insurance policy and the insurance company name to: 8 (1) The individual or, if the individual is deceased, 9 any person who is an interested party in the estate of the 10 individual as provided under chapter 633. 11 (2) The parent or legal guardian of the individual if the 12 individual is an unemancipated minor. 13 (3) The legal guardian of the individual if the individual 14 is legally incapacitated. 15 (4) A person who has power of attorney for the individual. 16 (5) A person who submits a notarized release from the 17 individual dated no more than ninety days before the date the 18 request is made. 19 (6) A person suffering loss or injury in a motor vehicle 20 accident in which the individual was involved, but only as part 21 of an accident report as authorized in section 321.271 relating 22 to access to accident reports. 23 d. For the purpose of investigating, enforcing, or 24 prosecuting laws or issuing citations, information related to a 25 motor vehicle owner or operator’s financial liability coverage 26 under section 321.20B may be provided to state or local law 27 enforcement agencies. 28 e. Upon request of a peace officer acting in an official 29 capacity under the provisions of paragraph “d” , the department 30 or the designated agent shall, upon request, disclose relevant 31 information contained in the database. 32 f. For the purpose of the state auditor conducting audits 33 of the program. 34 g. Upon request of a financial institution for the purpose 35 -8- LSB 1042YC (1) 86 ns/nh 8/ 12

H.F. _____ of protecting the financial institution’s bona fide security 1 interest in a motor vehicle. 2 2. a. The department may allow the designated agent to 3 prepare and deliver, upon request, a report on the insurance 4 information of a person or motor vehicle in accordance with 5 this section. The report may be in the form of: 6 (1) A certified copy that is considered admissible in any 7 court proceeding in the same manner as the original. 8 (2) Information accessible through the internet or through 9 another electronic medium if the department determines that 10 sufficient security is provided to ensure compliance with this 11 section. 12 b. The department may allow the designated agent to charge a 13 fee established by the department for each of the following: 14 (1) Authenticating a document, including preparation and 15 delivery of a certified copy. 16 (2) Accessing a record through the internet or through 17 another electronic medium. 18 (3) Providing a record to a financial institution under 19 subsection 1, paragraph “g” . 20 3. Any person who knowingly releases or discloses 21 information from the database for a purpose other than those 22 authorized in this section or to a person who is not entitled 23 to such information is guilty of a class “D” felony. 24 4. Neither the state nor the department’s designated agent 25 is liable to any person for gathering, managing, or using the 26 information in the database in compliance with this chapter. 27 Sec. 8. EFFECTIVE DATE. This Act takes effect July 1, 2016. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill establishes a motor vehicle insurance verification 32 program within the department of transportation. The 33 department is required to contract with a third party to act 34 as the department’s designated agent for administration of the 35 -9- LSB 1042YC (1) 86 ns/nh 9/ 12

H.F. _____ program. 1 The designated agent is required to establish and maintain 2 a database containing information from insurers relating to 3 motor vehicle insurance coverage for registered motor vehicles, 4 personal identification information for licensed drivers 5 provided by the department, and any other information provided 6 to the designated agent by the department. 7 At least twice a month, the designated agent shall update the 8 database and compare current motor vehicle registrations with 9 updated insurance information. The files in the database shall 10 be archived semiannually and audited by the department at least 11 annually. The bill requires the department to adopt rules for 12 administration of the database. 13 If database records show that a registered motor vehicle 14 is not covered under an owner’s policy of liability insurance 15 for three months, the designated agent shall send a notice to 16 the owner requiring the owner to respond within 15 days by 17 providing proof of financial liability coverage or proof that 18 the owner is exempt from the requirement to maintain financial 19 liability coverage. If the owner fails to respond, a second 20 notice will be sent. If the owner does not respond to the 21 second notice, the owner’s motor vehicle registration will be 22 revoked by the department and the owner will be required to 23 surrender the registration plates and registration receipt for 24 the vehicle to the county treasurer. In order to obtain a 25 new registration for the vehicle, the owner must comply with 26 financial responsibility requirements and pay an administrative 27 fee of $100. The fees are to be used by the department 28 exclusively to offset the costs of administering the program. 29 Any fees in excess of the amount needed for administration of 30 the program are to be transferred to the road use tax fund 31 annually on June 30. 32 The bill provides that if a motor vehicle is covered by a 33 form of financial liability coverage other than an insurance 34 policy, that fact shall be noted in the database, with a 35 -10- LSB 1042YC (1) 86 ns/nh 10/ 12

H.F. _____ requirement that the information be updated annually by the 1 owner. 2 The bill prohibits a person from providing false or 3 fraudulent information to the department or the department’s 4 designated agent in relation to the motor vehicle insurance 5 verification program. A violation is a simple misdemeanor. 6 The bill requires each insurer that issues a policy that 7 includes motor vehicle liability coverage, uninsured motorist 8 coverage, underinsured motorist coverage, or personal injury 9 coverage to the owner of a motor vehicle to provide, before 10 the 7th and the 21st of each month, to the department’s 11 designated agent a record of each motor vehicle insurance 12 policy issued by the insurer and in effect for vehicles 13 registered or garaged in this state as of the date of the 14 previous submission. Insurers that issue commercial motor 15 vehicle insurance policies must also provide a record of each 16 commercial motor vehicle insurance policy issued by the insurer 17 and in effect for vehicles registered or garaged in this state 18 as of the date of the previous submission. Vehicles subject to 19 apportioned registration are not included in this requirement. 20 Insurers that fail to comply with the reporting requirement 21 may be assessed a civil penalty of $250 per day. However, 22 the department may waive the penalty upon a showing that the 23 failure was inadvertent, accidental, or the result of excusable 24 neglect. 25 Information contained in the database is confidential, 26 but the bill provides exceptions for disclosures to state or 27 local government agencies and courts for specified purposes; 28 to individuals and certain other authorized persons; for 29 purposes of an accident investigation; to law enforcement 30 agencies and peace officers for certain official purposes; 31 to the state auditor; and to financial institutions with a 32 security interest in a motor vehicle. The designated agent 33 may be authorized to provide certified copies or electronic 34 records, as appropriate, and to charge a fee for the provision 35 -11- LSB 1042YC (1) 86 ns/nh 11/ 12

H.F. _____ of records and authentication of documents. 1 A person who knowingly releases or discloses information 2 from the database for a purpose other than those authorized in 3 the bill or to a person who is not entitled to such information 4 is guilty of a class “D” felony. 5 The bill provides that the state and the department’s 6 designated agent are not liable to any person for gathering, 7 managing, or using the information in the database in 8 compliance with the bill. 9 The bill provides for an effective date of July 1, 2016. 10 -12- LSB 1042YC (1) 86 ns/nh 12/ 12