SF 100 (LSB 1845XS (2) 86)

SENATE FILE 100

BY  ZAUN

A BILL FOR

An Act relating to the use of revenues from automated traffic law enforcement programs and establishing an uninsured, hit-and-run, and underinsured motor vehicle coverage trust fund.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 331.307, Code 2015, is amended by adding the following new subsection:
   NEW SUBSECTION.  14.  a.  Notwithstanding any other provision of law, civil fines collected by a county from the use of an automated traffic law enforcement system shall be allocated as follows:
   (1)  The amount necessary to satisfy contractual obligations of the county relating to the use of automated traffic law enforcement systems shall be retained by the county for that purpose.
   (2)  Moneys in excess of the amount necessary for the purpose specified in subparagraph (1) shall be forwarded monthly to the treasurer of state for deposit in the uninsured, hit-and-run, and underinsured motor vehicle coverage trust fund created in section 516A.6.
   b.  For purposes of this subsection, “automated traffic law enforcement system” means a device with one or more sensors working in conjunction with a traffic control signal or device or a speed-measuring device to produce recorded images of vehicles being operated in violation of traffic or speed laws.
    Sec. 2.  Section 364.3, subsection 2, Code 2015, is amended to read as follows:
   2.  For a violation of an ordinance, a city shall not provide a penalty in excess of the maximum fine and term of imprisonment for a simple misdemeanor under section 903.1, subsection 1, paragraph “a”. An Except as otherwise provided in this section, an amount equal to ten percent of all fines collected by cities shall be deposited in the account established in section 602.8108. However, one 
   a.  One hundred percent of all fines collected by a city pursuant to section 321.236, subsection 1, shall be retained by the city.
   b.  Civil fines collected by a city from the use of an automated traffic law enforcement system shall be allocated as follows:
   (1)  The amount necessary to satisfy contractual obligations of the city relating to the use of automated traffic law enforcement systems shall be retained by the city for that purpose.
   (2)  Moneys in excess of the amount necessary for the purpose specified in subparagraph (1) shall be forwarded monthly to the treasurer of state for deposit in the uninsured, hit-and-run, and underinsured motor vehicle coverage trust fund created in section 516A.6.
   (3)  For purposes of this subsection, “automated traffic law enforcement system” means a device with one or more sensors working in conjunction with a traffic control signal or device or a speed-measuring device to produce recorded images of vehicles being operated in violation of traffic or speed laws.
   c.  The criminal penalty surcharge required by section 911.1 shall be added to a city fine and is not a part of the city’s penalty.
    Sec. 3.  NEW SECTION.  516A.6  Uninsured, hit-and-run, and underinsured motor vehicle coverage trust fund.
   1.  An uninsured, hit-and-run, and underinsured motor vehicle coverage trust fund is created in the state treasury under the control of the commissioner of insurance. The fund shall consist of any moneys appropriated by the general assembly and any revenues credited to the fund pursuant to section 331.307, subsection 14, and section 364.3, subsection 2. Moneys in the fund are not subject to section 8.33. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in the fund shall be credited to the fund.
   2.  Moneys in the uninsured, hit-and-run, and underinsured motor vehicle coverage trust fund shall be used to reimburse insurers for the payment of claims under uninsured or hit-and-run motor vehicle coverage and underinsured motor vehicle coverage issued pursuant to section 516A.1.
   3.  The commissioner of insurance shall administer a program for the reimbursement of insurers for claims paid under uninsured or hit-and-run motor vehicle coverage and underinsured motor vehicle coverage issued pursuant to section 516A.1. The commissioner of insurance shall adopt rules establishing a process by which insurers may qualify for and apply for reimbursement from the fund. The commissioner may establish a limit on the amount that may be awarded for reimbursement for any claim in order to make the distribution of reimbursement payments as equitable as possible among eligible insurers.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill creates an uninsured, hit-and-run, and underinsured motor vehicle coverage trust fund under the control of the commissioner of insurance. Moneys in the fund are to be used to reimburse insurers for claims paid under uninsured or hit-and-run motor vehicle coverage and underinsured motor vehicle coverage provided with motor vehicle liability insurance policies. The bill directs the insurance commissioner to adopt administrative rules establishing a process by which insurers may qualify and apply for reimbursement from the fund. In order to make the distribution of payments as equitable as possible among insurers, the commissioner is authorized to establish a limit on the amount of reimbursement allowed for any claim.
   Under the bill, the source of revenue for the uninsured, hit-and-run, and underinsured motor vehicle coverage trust fund is the revenue derived by cities and counties from automated traffic law enforcement programs. The bill directs that, from the civil fines collected by a city or county from the use of automated traffic law enforcement systems, the amount necessary to satisfy the contractual obligations relating to the use of the systems shall be retained by the city or county. Moneys in excess of that amount are to be forwarded monthly to the treasurer of state for deposit in the uninsured, hit-and-run, and underinsured motor vehicle coverage trust fund.