H.F. _____ Section 1. Section 321.11, subsection 3, Code 2017, 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. “Advisory council” means the group established pursuant 28 to section 321B.3, subsection 2. 29 2. “Database” means the motor vehicle insurance verification 30 database created under this chapter. 31 3. “Department” means the department of transportation. 32 4. “Designated agent” means the third party with which the 33 department contracts under section 321B.3. 34 5. “Financial institution” means financial institution as 35 -1- LSB 2632YC (1) 87 ns/nh 1/ 14

H.F. _____ defined in 18 U.S.C. §20. 1 6. “Motor vehicle” means motor vehicle as defined in section 2 321.1. 3 7. “Program” means the motor vehicle insurance verification 4 program created under this chapter. 5 8. “Real-time internet services model” means an electronic 6 service established by insurers through the internet, the 7 world wide web, or a similar proprietary or common carrier 8 electronic system that complies with the specifications and 9 standards of the insurance industry committee on motor vehicle 10 administration and that is available twenty-four hours per 11 day, seven days per week, subject to reasonable allowances for 12 scheduled maintenance or temporary system failures. 13 Sec. 4. NEW SECTION . 321B.3 Motor vehicle insurance 14 verification program —— advisory council. 15 1. A motor vehicle insurance verification program is 16 created within the department to be administered by the 17 department. The purposes of the program include all of the 18 following: 19 a. To establish a motor vehicle insurance verification 20 database to verify compliance with the requirements of section 21 321.20B. 22 b. To assist in reducing the number of uninsured motor 23 vehicles on the highways of the state. 24 c. To assist in increasing compliance with motor vehicle 25 registration requirements and for other law enforcement 26 purposes. 27 d. To assist in protecting the bona fide security interests 28 of financial institutions in motor vehicles. 29 2. a. The department shall establish an advisory council, 30 chaired by the director of the department or a representative 31 of the department appointed by the director, consisting of 32 six members including the director of the department or the 33 representative of the department appointed by the director, 34 a representative of the department of public safety, an 35 -2- LSB 2632YC (1) 87 ns/nh 2/ 14

H.F. _____ insurance company representative appointed by the commissioner 1 of insurance, an insurance agent appointed by the commissioner 2 of insurance, a representative of a trade association of 3 property and casualty insurers appointed by the commissioner 4 of insurance, and a representative of a vendor with experience 5 implementing real-time internet services models and databases 6 similar to the database created under this chapter appointed by 7 the director of the department 8 b. The advisory council shall do all of the following: 9 (1) Make recommendations to the department on the best 10 methods and practices for implementing a real-time internet 11 services model for insurance verification. 12 (2) Assist in the development of a guide for insurers 13 detailing the data fields and other information necessary for 14 compliance with this chapter. 15 (3) Provide an annual report to the department detailing the 16 improvements and implementation efforts relating to insurance 17 verification in other states for consideration in improving 18 compliance and operations in this state. 19 3. Following the competitive bidding procedures as provided 20 in chapter 8A, subchapter III, the department shall contract 21 with a third party to act as the department’s designated agent 22 for administration of this chapter for a period of four years. 23 For the period of the contract, the designated agent shall 24 establish and maintain a computer database containing the 25 following information: 26 a. Information provided by insurers under section 321B.5. 27 b. Information provided by the department under subsection 28 6. 29 c. Information obtained using a real-time internet services 30 model. 31 d. Any other information provided by the department pursuant 32 to this chapter. 33 4. The database shall be developed and maintained, and 34 access to a real-time internet services model shall be 35 -3- LSB 2632YC (1) 87 ns/nh 3/ 14

H.F. _____ provided, in accordance with guidelines established by the 1 department by rule to allow authorized state and local law 2 enforcement agencies and financial institutions to efficiently 3 access the records of the database and real-time internet 4 services model, including reports useful for the implementation 5 of this chapter, twenty-four hours per day, seven days 6 per week, subject to reasonable allowances for scheduled 7 maintenance or temporary system failures. 8 a. Database reports shall be in a form and contain 9 information approved by the department. 10 b. Database reports may be made available through the 11 department’s internet site or through other electronic media 12 if the department determines that sufficient security is 13 provided to ensure compliance with the provisions of this 14 chapter regarding limitations on disclosure of information in 15 the database. 16 c. The department shall consult with the chief information 17 officer appointed under section 8B.2 for the purpose of 18 developing network security requirements for the database. 19 5. At least twice monthly, the designated agent shall do the 20 following, using information provided by the department: 21 a. Update the database with motor vehicle insurance 22 information provided by insurers in accordance with section 23 321B.5. 24 b. Compare all current motor vehicle registrations against 25 the database. If records in the database indicate that a 26 registered motor vehicle is not covered under an owner’s 27 policy of liability insurance, the designated agent shall 28 use a real-time internet services model to determine if the 29 registered motor vehicle is covered under an owner’s policy of 30 liability insurance. 31 6. On or before the seventh day of each calendar month, the 32 department shall provide the designated agent with the make, 33 model, year, and vehicle identification number of each vehicle 34 in the department’s motor vehicle database, and the name and 35 -4- LSB 2632YC (1) 87 ns/nh 4/ 14

H.F. _____ address of each person listed on each vehicle’s registration. 1 7. The department shall adopt rules in accordance with 2 chapter 17A establishing procedures for the use of the 3 department’s motor vehicle database for the purposes of 4 administering and enforcing this chapter. 5 8. a. The designated agent shall archive database files at 6 least semiannually for auditing purposes. 7 b. The department shall audit the program at least annually. 8 The audit shall include verification of: 9 (1) Billings made by the designated agent. 10 (2) The accuracy of the designated agent’s matching of 11 vehicle registration records with insurance data. 12 Sec. 5. NEW SECTION . 321B.4 Enforcement of financial 13 responsibility requirements —— penalty. 14 1. If records in the database and the real-time internet 15 services model used by the designated agent indicate that a 16 registered motor vehicle is not covered under an owner’s policy 17 of liability insurance for three consecutive months, at the 18 direction of the department the designated agent shall provide 19 notice by first-class mail to the owner of the motor vehicle 20 that the owner has fifteen days from the date the notice was 21 mailed to provide one of the following: 22 a. Proof of financial liability coverage as defined in 23 section 321.1, subsection 24B. 24 b. Proof that the owner is exempt from the requirement to 25 maintain proof of financial liability coverage under section 26 321.20B. 27 2. If, after fifteen days, the owner of the motor vehicle 28 fails to provide satisfactory proof of financial liability 29 coverage, the designated agent shall provide a second notice 30 by first-class mail to the owner of the motor vehicle allowing 31 the owner an additional fifteen days from the date the second 32 notice was mailed to provide the information requested under 33 subsection 1. 34 3. a. The designated agent shall update the database 35 -5- LSB 2632YC (1) 87 ns/nh 5/ 14

H.F. _____ regarding each notice sent to a motor vehicle owner under 1 subsections 1 and 2, indicating the information provided by the 2 motor vehicle owner or the owner’s failure to provide proof of 3 financial liability coverage, as applicable. 4 b. If the owner of a motor vehicle provides proof to the 5 department or the designated agent that the owner’s motor 6 vehicle is covered by an acceptable form of financial liability 7 coverage described in section 321.1, subsection 24B, paragraph 8 “b” , “c” , or “d” , the information shall be recorded in the 9 database. 10 c. If the designated agent determines the motor vehicle 11 is appropriately insured using a real-time internet services 12 model, the information shall be recorded in the database. 13 4. a. If the owner of a motor vehicle fails to provide 14 proof of financial liability coverage following receipt of the 15 second notice under subsection 2, the designated agent shall 16 notify the department, and the department shall revoke the 17 registration of the motor vehicle. 18 b. The department shall provide to the owner of the motor 19 vehicle appropriate notice of the revocation, order the owner 20 to surrender the registration plates and registration receipt 21 for the vehicle to the county treasurer, advise the owner of 22 the legal consequences of operating a vehicle with revoked 23 registration and without financial liability coverage, and 24 instruct the owner on how to reinstate the vehicle registration 25 once the owner has obtained financial liability coverage for 26 the vehicle. 27 5. a. A person shall not provide a false or fraudulent 28 statement to the department or the department’s designated 29 agent in regard to proceedings under this chapter. 30 b. In addition to any other penalties, a person who violates 31 paragraph “a” is guilty of a simple misdemeanor. 32 6. A revocation of registration under this chapter is in 33 addition to any other penalty imposed by law. This chapter 34 does not affect other actions or penalties that may be taken or 35 -6- LSB 2632YC (1) 87 ns/nh 6/ 14

H.F. _____ imposed for a violation of section 321.20B or other law. 1 7. a. A registration that has been revoked under this 2 section shall not be reinstated and a new registration shall 3 not be issued to the holder of the revoked registration until 4 the person does all of the following: 5 (1) Pays to the department an administrative reinstatement 6 fee of one hundred dollars, in addition to any other penalty 7 imposed by law. 8 (2) Complies with the requirements of section 321.20B and 9 this chapter. 10 b. Reinstatement fees collected under this subsection shall 11 be retained by the department as repayment receipts as defined 12 in section 8.2 and shall be used exclusively to offset the 13 costs of administering the program, including payments made by 14 the department to the department’s designated agent. 15 Sec. 6. NEW SECTION . 321B.5 Motor vehicle insurance 16 reporting —— penalty. 17 1. a. Except as provided in paragraph “b” , each insurer 18 that issues a policy to a motor vehicle owner in this state 19 that includes motor vehicle liability coverage, uninsured 20 motorist coverage, underinsured motorist coverage, or 21 personal injury coverage shall, on or before the seventh 22 and twenty-first days of each calendar month, submit to the 23 department’s designated agent a record of each motor vehicle 24 insurance policy that was issued by the insurer and in effect 25 for a vehicle registered or garaged in this state as of the 26 date of the previous submission. 27 b. An insurer is not required to provide a record of a motor 28 vehicle insurance policy under paragraph “a” if the policy 29 covers a vehicle that is registered under chapter 326. 30 c. This subsection does not preclude more frequent 31 reporting. 32 2. A record provided by an insurer under subsection 1, 33 paragraph “a” , shall include all of the following: 34 a. The name, date of birth, and driver’s license number, if 35 -7- LSB 2632YC (1) 87 ns/nh 7/ 14

H.F. _____ the insured provides a driver’s license number to the insurer, 1 of each insured owner or operator, and the address of the named 2 insured. 3 b. The make, year, and vehicle identification number of each 4 insured vehicle. 5 c. The policy number and effective date of each policy. 6 3. An insurer shall provide the information required under 7 this section via electronic means or via another means the 8 designated agent agrees to accept. 9 4. a. The department may assess a civil penalty of not more 10 than two hundred fifty dollars for each day an insurer fails to 11 comply with this section. 12 b. If an insurer shows that the failure to comply with this 13 section was inadvertent, accidental, or the result of excusable 14 neglect, the department may waive the civil penalty. 15 c. An insurer that discloses records to the department’s 16 designated agent in a reasonable, good-faith effort to comply 17 with the requirements of this section shall not be subject to a 18 civil penalty under paragraph “a” . 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 and subject to the provisions and penalties of 18 24 U.S.C. §2721. 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 -8- LSB 2632YC (1) 87 ns/nh 8/ 14

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, proof of the insurance coverage 8 policy, and the insurance company name to: 9 (1) The individual or, if the individual is deceased, 10 any person who is an interested party in the estate of the 11 individual as provided under chapter 633. 12 (2) The parent or legal guardian of the individual if the 13 individual is an unemancipated minor. 14 (3) The legal guardian of the individual if the individual 15 is legally incapacitated. 16 (4) A person who has power of attorney for the individual. 17 (5) A person who submits a notarized release from the 18 individual dated no more than ninety days before the date the 19 request is made. 20 (6) A person suffering loss or injury in a motor vehicle 21 accident in which the individual was involved, but only as part 22 of an accident report as authorized in section 321.271 relating 23 to access to accident reports. 24 d. For the purpose of investigating, enforcing, or 25 prosecuting laws or issuing citations, information related to a 26 motor vehicle owner or operator’s financial liability coverage 27 under section 321.20B may be provided to state or local law 28 enforcement agencies. 29 e. Upon request of a peace officer acting in an official 30 capacity under the provisions of paragraph “d” , the department 31 or the designated agent shall, upon request, disclose relevant 32 information contained in the database. 33 f. For the purpose of the state auditor conducting audits 34 of the program. 35 -9- LSB 2632YC (1) 87 ns/nh 9/ 14

H.F. _____ g. Upon request of a financial institution for the purpose 1 of protecting the financial institution’s bona fide security 2 interest in a motor vehicle. 3 2. a. The department may allow the designated agent to 4 prepare and deliver, upon request, a report on the insurance 5 information of a person or motor vehicle in accordance with 6 this section. The report may be in the form of: 7 (1) A certified copy that is considered admissible in any 8 court proceeding in the same manner as the original. 9 (2) Information accessible through the internet or through 10 another electronic medium if the department determines that 11 sufficient security is provided to ensure compliance with this 12 section. 13 b. The department may allow the designated agent to charge a 14 fee established by the department for each of the following: 15 (1) Authenticating a document, including preparation and 16 delivery of a certified copy. 17 (2) Accessing a record through the internet or through 18 another electronic medium. 19 (3) Providing a record to a financial institution under 20 subsection 1, paragraph “g” . 21 3. The designated agent or any other person who knowingly 22 releases or discloses information from the database for a 23 purpose other than those authorized in this section or to a 24 person who is not entitled to such information is guilty of a 25 class “D” felony. 26 4. Neither the state nor the department’s designated agent 27 shall be liable to any person for gathering, managing, or 28 using the information in the database in compliance with this 29 chapter. 30 5. The designated agent shall be responsible for 31 maintaining and securing the information in the database 32 provided by the department and insurers under sections 321B.3 33 and 321B.5. 34 6. An insurer acting in compliance with this chapter shall 35 -10- LSB 2632YC (1) 87 ns/nh 10/ 14

H.F. _____ not be liable to any person for the disclosure of information 1 supplied to the department or designated agent. The designated 2 agent shall indemnify an insurer against any loss arising from 3 the disclosure of information supplied to the department or 4 designated agent, provided the insurer supplied the information 5 to the department or designated agent in a manner that complies 6 with this chapter and rules adopted pursuant to this chapter. 7 Records provided by an insurer under this chapter shall be 8 deemed evidence of insurance and not a guarantee of insurance. 9 Sec. 8. EFFECTIVE DATE. This Act takes effect July 1, 2018. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill establishes a motor vehicle insurance verification 14 program to be administered by the department of transportation 15 (DOT). Following the appropriate competitive bidding 16 procedures, the DOT is required to contract with a third 17 party for four years to act as the DOT’s designated agent for 18 administration of the program. 19 The bill requires the DOT to establish an advisory council 20 to make recommendations to the DOT on the best methods and 21 practices for implementing a real-time internet services model 22 for insurance verification, to assist in the development of 23 a guide for insurers detailing the data fields and other 24 information necessary for compliance with the bill, and to 25 provide an annual report to the DOT detailing the improvements 26 and implementation efforts relating to insurance verification 27 in other states for consideration in improving compliance and 28 operations in this state. 29 The designated agent is required to establish and maintain a 30 database containing information from insurers relating to motor 31 vehicle insurance coverage for registered motor vehicles, motor 32 vehicle identification information, personal identification 33 information for registered owners of motor vehicles, and any 34 other information provided to the designated agent by the DOT. 35 -11- LSB 2632YC (1) 87 ns/nh 11/ 14

H.F. _____ At least twice per month, the designated agent must update the 1 database and compare current motor vehicle registrations with 2 updated insurance information. If records in the database 3 indicate that a registered motor vehicle is not covered under 4 an owner’s policy of liability insurance, the bill requires the 5 designated agent to use a real-time internet services model 6 to determine if the registered motor vehicle is covered under 7 an owner’s policy of liability insurance. The files in the 8 database must be archived semiannually and audited by the DOT 9 at least annually. 10 If database records and the real-time internet services 11 model show that a registered motor vehicle is not covered under 12 an owner’s policy of liability insurance for three consecutive 13 months, the designated agent is required to 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 must be sent. If the owner does not respond to the 19 second notice, the owner’s motor vehicle registration must 20 be revoked by the DOT and the owner is required to surrender 21 the registration plates and registration receipt for the 22 vehicle to the county treasurer. In order to obtain a new 23 registration for the vehicle, the owner must comply with 24 financial responsibility requirements and pay an administrative 25 fee of $100. The fees collected are to be used by the DOT 26 exclusively to offset the costs of administering the program, 27 including payments made to the designated agent. 28 The bill provides that if a motor vehicle is covered by a 29 form of financial liability coverage other than an insurance 30 policy, or if a real-time internet services model indicates a 31 vehicle is appropriately insured, that fact shall be noted in 32 the database. 33 The bill prohibits a person from providing false or 34 fraudulent information to the DOT or the DOT’s designated 35 -12- LSB 2632YC (1) 87 ns/nh 12/ 14

H.F. _____ agent in relation to the motor vehicle insurance verification 1 program. A violation of this provision is a simple 2 misdemeanor. 3 The bill requires each insurer that issues a policy to the 4 owner of a motor vehicle that includes motor vehicle liability 5 coverage, uninsured motorist coverage, underinsured motorist 6 coverage, or personal injury coverage to, before the 7th and 7 the 21st of each month, provide the DOT’s designated agent with 8 a record of each motor vehicle insurance policy issued by the 9 insurer and in effect for vehicles registered or garaged in 10 the state as of the date of the previous submission. Vehicles 11 subject to apportioned registration under Code chapter 326 are 12 not included in this requirement. Insurers that fail to comply 13 with the reporting requirement may be assessed a civil penalty 14 of $250 per day. However, the DOT may waive the penalty upon a 15 showing that the failure was inadvertent, accidental, or the 16 result of excusable neglect. An insurer that discloses records 17 to the DOT’s designated agent in a reasonable, good-faith 18 effort to comply with the bill is not subject to the penalty. 19 Information contained in the database is confidential, but 20 the bill provides exceptions for certain disclosures, including 21 disclosures to state or local government agencies and courts 22 for specified purposes, to individuals and certain other 23 authorized persons, for purposes of an accident investigation, 24 to law enforcement agencies and peace officers for certain 25 official purposes, to the state auditor, and to financial 26 institutions with a security interest in a motor vehicle. 27 The designated agent may be authorized by the DOT to provide 28 certified copies or electronic records, as appropriate, and to 29 charge a fee for the provision of records and authentication 30 of documents. 31 A person, including the designated agent, who knowingly 32 releases or discloses information from the database for a 33 purpose other than those authorized in the bill or to a person 34 who is not entitled to such information is guilty of a class 35 -13- LSB 2632YC (1) 87 ns/nh 13/ 14

H.F. _____ “D” felony. 1 The bill provides that the state and the DOT’s designated 2 agent are not liable to any person for gathering, managing, or 3 using the information in the database in compliance with the 4 bill. The bill further provides that the designated agent is 5 responsible for maintaining and securing the information in the 6 database provided by the DOT and insurers, and insurers acting 7 in compliance with the bill are not liable to any person for 8 the disclosure of information supplied to the DOT or designated 9 agent. The designated agent is required to indemnify an 10 insurer against any loss arising from a disclosure, provided 11 the insurer supplied the information in compliance with the 12 bill. 13 The bill takes effect July 1, 2018. 14 -14- LSB 2632YC (1) 87 ns/nh 14/ 14