House File 496 - Introduced HOUSE FILE 496 BY WILLS A BILL FOR An Act relating to motor vehicle insurance, including requiring 1 owners of registered motor vehicles to maintain financial 2 liability coverage, establishing a motor vehicle insurance 3 verification database, authorizing the use of automated 4 registration plate reader systems, and authorizing county 5 enforcement and diversion programs, establishing fees, 6 providing penalties, and including effective date and 7 applicability provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 1880YH (3) 88 ns/rh

H.F. 496 Section 1. Section 321.11, subsection 3, Code 2019, 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. Section 321.20B, subsection 1, paragraphs a and c, 22 Code 2019, are amended to read as follows: 23 a. (1) Notwithstanding chapter 321A , which requires 24 certain persons to maintain proof of financial responsibility, 25 a person shall not drive a motor vehicle on the highways of 26 this state unless financial liability coverage , as defined 27 in section 321.1, subsection 24B , is in effect for the motor 28 vehicle and unless the driver has in the motor vehicle the 29 proof of financial liability coverage card issued for the motor 30 vehicle, or if the vehicle is registered in another state, 31 other evidence that financial liability coverage is in effect 32 for the motor vehicle. A proof of financial liability coverage 33 card may be produced in paper or electronic format. Acceptable 34 electronic formats include electronic images displayed on a 35 -1- LSB 1880YH (3) 88 ns/rh 1/ 18

H.F. 496 cellular telephone or any other portable electronic device that 1 has a display screen with touch input or a miniature keyboard. 2 (2) Notwithstanding chapter 321A, which requires certain 3 persons to maintain proof of financial responsibility, the 4 owner of any motor vehicle registered under this chapter shall 5 maintain financial liability coverage for the vehicle. 6 c. This subsection does not apply to the owner or operator 7 of a motor vehicle owned by or leased to the United States, 8 this state or another state, or any political subdivision of 9 this state or of another state, or to a motor vehicle which is 10 subject to section 325A.6 . 11 Sec. 3. NEW SECTION . 321B.1 Definitions. 12 As used in this chapter, unless the context otherwise 13 requires: 14 1. “Advisory council” means the group established pursuant 15 to section 321B.2, subsection 2. 16 2. “Automatic registration plate reader system” means 17 a system of one or more fixed or mobile cameras that uses 18 computer algorithms to convert images of motor vehicle 19 registration plates into computer-readable data. 20 3. “Database” means the motor vehicle insurance verification 21 database created under this chapter. 22 4. “Department” means the state department of 23 transportation. 24 5. “Designated agent” means the position or positions 25 designated within the department or the third party with which 26 the department contracts under section 321B.2. 27 6. “Financial institution” means financial institution as 28 defined in 18 U.S.C. §20. 29 7. “Motor vehicle” means the same as defined in section 30 321.1. 31 8. “Peace officer” means the same as defined in section 32 321.1. 33 9. “Real-time internet services model” means an electronic 34 service established by insurers through the internet, the 35 -2- LSB 1880YH (3) 88 ns/rh 2/ 18

H.F. 496 world wide web, or a similar proprietary or common carrier 1 electronic system that complies with the specifications and 2 standards of the insurance industry committee on motor vehicle 3 administration and that is available twenty-four hours per 4 day, seven days per week, subject to reasonable allowances for 5 scheduled maintenance or temporary system failures. 6 Sec. 4. NEW SECTION . 321B.2 Motor vehicle insurance 7 verification program —— advisory council. 8 1. A motor vehicle insurance verification program is 9 created within the department to be administered by the 10 department. The purposes of the program include all of the 11 following: 12 a. To establish a motor vehicle insurance verification 13 database to verify compliance with the requirements of section 14 321.20B. 15 b. To assist in reducing the number of uninsured motor 16 vehicles on the highways of the state. 17 c. To assist in increasing compliance with motor vehicle 18 insurance requirements and for other law enforcement purposes. 19 d. To assist in protecting the bona fide security interests 20 of financial institutions in motor vehicles. 21 2. a. The department shall establish an advisory council, 22 chaired by the director of the department or a representative 23 of the department appointed by the director, consisting of 24 six members including the director of the department or the 25 representative of the department appointed by the director, 26 a representative of the department of public safety, an 27 insurance company representative appointed by the commissioner 28 of insurance, an insurance agent appointed by the commissioner 29 of insurance, a representative of a trade association of 30 property and casualty insurers appointed by the commissioner 31 of insurance, and a representative of a vendor with experience 32 implementing real-time internet services models and databases 33 similar to the database created under this chapter appointed by 34 the director of the department. 35 -3- LSB 1880YH (3) 88 ns/rh 3/ 18

H.F. 496 b. The advisory council shall do all of the following: 1 (1) Make recommendations to the department on the best 2 methods and practices for implementing a real-time internet 3 services model for insurance verification. 4 (2) Assist in the development of a guide for insurers 5 detailing the data fields and other information necessary for 6 compliance with this chapter. 7 (3) Provide an annual report to the department detailing the 8 improvements and implementation efforts relating to insurance 9 verification in other states for consideration in improving 10 compliance and operations in this state. 11 3. The department shall either designate a position or 12 positions within the department or, following the competitive 13 bidding procedures as provided in chapter 8A, subchapter III, 14 shall contract with a third party, to act as the department’s 15 designated agent for administration of this chapter. The 16 designated agent shall establish and maintain a computer 17 database containing the following information: 18 a. Information provided by insurers under section 321B.3. 19 b. Information provided by the department under subsection 20 6. 21 c. Information obtained using a real-time internet services 22 model. 23 d. Any other information provided by the department pursuant 24 to this chapter. 25 4. The database shall be developed and maintained, and 26 access to a real-time internet services model shall be 27 provided, in accordance with guidelines established by the 28 department by rule to allow authorized state and local law 29 enforcement agencies and financial institutions to efficiently 30 access the records of the database and real-time internet 31 services model, including reports useful for the implementation 32 of this chapter, twenty-four hours per day, seven days 33 per week, subject to reasonable allowances for scheduled 34 maintenance or temporary system failures. 35 -4- LSB 1880YH (3) 88 ns/rh 4/ 18

H.F. 496 a. Database reports shall be in a form and contain 1 information approved by the department. 2 b. Database reports may be made available through the 3 department’s internet site or through other electronic media 4 if the department determines that sufficient security is 5 provided to ensure compliance with the provisions of this 6 chapter regarding limitations on disclosure of information in 7 the database. 8 c. The department shall consult with the chief information 9 officer appointed under section 8B.2 for the purpose of 10 developing network security requirements for the database. 11 5. At least twice monthly, the designated agent shall do the 12 following, using information provided by the department: 13 a. Update the database with motor vehicle insurance 14 information provided by insurers in accordance with section 15 321B.3. 16 b. Compare all current motor vehicle registrations against 17 the database. If records in the database indicate that a 18 registered motor vehicle is not covered under an owner’s 19 policy of liability insurance, the designated agent shall 20 use a real-time internet services model to determine if the 21 registered motor vehicle is covered under an owner’s policy of 22 liability insurance. 23 6. On or before the seventh day of each calendar month, the 24 department shall provide the designated agent with the make, 25 model, year, and vehicle identification number of each vehicle 26 in the department’s motor vehicle database, and the name and 27 address of each person listed on each vehicle’s registration. 28 7. The department shall adopt rules in accordance with 29 chapter 17A establishing procedures for access to and the use 30 of the department’s motor vehicle database for the purposes of 31 administering and enforcing this chapter. 32 8. a. The designated agent shall archive database files at 33 least semiannually for auditing purposes. 34 b. The department shall audit the program at least annually. 35 -5- LSB 1880YH (3) 88 ns/rh 5/ 18

H.F. 496 The audit shall include verification of: 1 (1) Billings made by the designated agent, if any. 2 (2) The accuracy of the designated agent’s matching of 3 vehicle registration records with insurance data. 4 Sec. 5. NEW SECTION . 321B.3 Motor vehicle insurance 5 reporting by insurers —— penalty. 6 1. a. Except as provided in paragraph “b” , each insurer 7 that issues a policy to a motor vehicle owner in this state 8 that includes motor vehicle liability coverage, uninsured 9 motorist coverage, underinsured motorist coverage, or 10 personal injury coverage shall, on or before the seventh 11 and twenty-first days of each calendar month, submit to the 12 department’s designated agent a record of each motor vehicle 13 insurance policy that was issued by the insurer and in effect 14 for a vehicle registered or garaged in this state as of the 15 date of the previous submission. 16 b. An insurer is not required to provide a record of a motor 17 vehicle insurance policy under paragraph “a” if the policy 18 covers a vehicle that is registered under chapter 326. 19 c. This subsection does not preclude more frequent 20 reporting. 21 2. A record provided by an insurer under subsection 1, 22 paragraph “a” , shall include all of the following: 23 a. The name, date of birth, and driver’s license number, if 24 the insured provides a driver’s license number to the insurer, 25 of each insured owner or operator, and the address of the named 26 insured. 27 b. The make, year, and vehicle identification number of each 28 insured vehicle. 29 c. The policy number and effective date of each policy. 30 3. An insurer shall provide the information required under 31 this section via electronic means or via another means the 32 designated agent agrees to accept. 33 4. a. The department may assess a civil penalty of not more 34 than two hundred fifty dollars for each day an insurer fails to 35 -6- LSB 1880YH (3) 88 ns/rh 6/ 18

H.F. 496 comply with this section. 1 b. If an insurer shows that the failure to comply with this 2 section was inadvertent, accidental, or the result of excusable 3 neglect, the department may waive the civil penalty. 4 c. An insurer that discloses records to the department’s 5 designated agent in a reasonable, good-faith effort to comply 6 with the requirements of this section shall not be subject to a 7 civil penalty under paragraph “a” . 8 Sec. 6. NEW SECTION . 321B.4 Disclosure of database 9 information —— penalty. 10 1. Information provided to the designated agent and 11 information contained in the database under this chapter are 12 confidential and subject to the provisions and penalties of 18 13 U.S.C. §2721. Such information shall not be disclosed, except 14 as follows: 15 a. For the purpose of investigating, litigating, or 16 enforcing the financial liability coverage requirements 17 of section 321.20B, the designated agent shall provide an 18 electronic record to a state or local government agency or 19 court verifying motor vehicle financial liability coverage 20 information. 21 b. For the purpose of investigating, litigating, or 22 enforcing the financial liability coverage requirements of 23 section 321.20B, the designated agent shall, upon request, 24 issue to any state or local government agency or court a 25 certificate documenting motor vehicle financial liability 26 coverage, according to the database, of a specific individual 27 or motor vehicle for the time period designated by the 28 government agency or court. 29 c. Upon request, the department or its designated agent 30 shall disclose whether an individual is covered under a motor 31 vehicle insurance policy, proof of the insurance coverage 32 policy, and the insurance company name to: 33 (1) The individual or, if the individual is deceased, 34 any person who is an interested party in the estate of the 35 -7- LSB 1880YH (3) 88 ns/rh 7/ 18

H.F. 496 individual as provided under chapter 633. 1 (2) The parent or legal guardian of the individual if the 2 individual is an unemancipated minor. 3 (3) The legal guardian of the individual if the individual 4 is legally incapacitated. 5 (4) A person who has power of attorney for the individual. 6 (5) A person who submits a notarized release from the 7 individual dated no more than ninety days before the date the 8 request is made. 9 (6) A person suffering loss or injury in a motor vehicle 10 accident in which the individual was involved, but only as part 11 of an accident report as authorized in section 321.271 relating 12 to access to accident reports. 13 d. For the purpose of investigating, enforcing, or 14 prosecuting laws or issuing citations, information related to a 15 motor vehicle owner or operator’s financial liability coverage 16 under section 321.20B may be provided to state or local law 17 enforcement agencies. 18 e. Upon request of a peace officer acting in an official 19 capacity under the provisions of paragraph “d” , the department 20 or the designated agent shall, upon request, disclose relevant 21 information contained in the database. 22 f. For the purpose of the state auditor conducting audits 23 of the program. 24 g. Upon request of a financial institution for the purpose 25 of protecting the financial institution’s bona fide security 26 interest in a motor vehicle. 27 2. a. The department may allow the designated agent to 28 prepare and deliver, upon request, a report on the insurance 29 information of a person or motor vehicle in accordance with 30 this section. The report may be in the form of: 31 (1) A certified copy that is considered admissible in any 32 court proceeding in the same manner as the original. 33 (2) Information accessible through the internet or through 34 another electronic medium if the department determines that 35 -8- LSB 1880YH (3) 88 ns/rh 8/ 18

H.F. 496 sufficient security is provided to ensure compliance with this 1 section. 2 b. The department may allow the designated agent to charge a 3 fee established by the department for each of the following: 4 (1) Authenticating a document, including preparation and 5 delivery of a certified copy. 6 (2) Accessing a record through the internet or through 7 another electronic medium. 8 (3) Providing a record to a financial institution under 9 subsection 1, paragraph “g” . 10 3. The designated agent or any other person who knowingly 11 releases or discloses information from the database for a 12 purpose other than those authorized in this section or to a 13 person who is not entitled to such information is guilty of a 14 class “D” felony. 15 4. Neither the state nor the department’s designated agent 16 shall be liable to any person for gathering, managing, or 17 using the information in the database in compliance with this 18 chapter. 19 5. The designated agent shall be responsible for 20 maintaining and securing the information in the database 21 provided by the department and insurers under sections 321B.2 22 and 321B.3. 23 6. An insurer acting in compliance with this chapter shall 24 not be liable to any person for the disclosure of information 25 supplied to the department or designated agent. The designated 26 agent shall indemnify an insurer against any loss arising from 27 the disclosure of information supplied to the department or 28 designated agent, provided the insurer supplied the information 29 to the department or designated agent in a manner that complies 30 with this chapter and rules adopted pursuant to this chapter. 31 Records provided by an insurer under this chapter shall be 32 deemed evidence of insurance and not a guarantee of insurance. 33 Sec. 7. NEW SECTION . 321B.5 Automated registration plate 34 reader systems —— enforcement programs. 35 -9- LSB 1880YH (3) 88 ns/rh 9/ 18

H.F. 496 1. a. A county attorney may implement and administer an 1 uninsured vehicle enforcement program in the county attorney’s 2 county under which law enforcement agencies in the county may 3 use an automated registration plate reader system utilizing 4 individual automated registration plate reader system units to 5 access and collect data for the enforcement of section 321.20B. 6 b. A county attorney or law enforcement agency may enter 7 into a contractual agreement with an automated registration 8 plate reader system provider for purposes of providing 9 the necessary technology, equipment, and maintenance of an 10 automated registration plate reader system. 11 c. A law enforcement agency using an automated registration 12 plate reader system shall have access to the motor vehicle 13 insurance verification database created under this chapter 14 for purposes of determining whether a motor vehicle which has 15 had its registration plate number recorded by the automated 16 registration plate reader system is operating with financial 17 liability coverage as required under section 321.20B. 18 2. a. Access to an automated registration plate reader 19 system shall be restricted to authorized users of the law 20 enforcement agency utilizing the system. However, any entity 21 with which the agency or county attorney contracts to provide 22 the necessary technology, equipment, and maintenance of the 23 system shall be authorized, as necessary, to access the system 24 for required maintenance or software updates. 25 b. Data collected by an automated registration plate reader 26 system shall be retained by a law enforcement agency if the 27 data is or will be used to establish a violation of section 28 321.20B, as determined by the county attorney. Data collected 29 by an automated registration plate reader system and retained 30 by a law enforcement agency may be used in any court proceeding 31 to establish a violation of section 321.20B. The data shall 32 be deleted or destroyed if the data is no longer needed to 33 establish a violation of section 321.20B. 34 c. A peace officer may verify by sworn affidavit that a 35 -10- LSB 1880YH (3) 88 ns/rh 10/ 18

H.F. 496 photograph generated by an automated registration plate reader 1 system identifies a particular motor vehicle operating or 2 having operated on the public highways of the state, and that 3 the motor vehicle insurance verification database indicates the 4 motor vehicle was not in compliance with section 321.20B at the 5 time of operation. The affidavit shall constitute probable 6 cause for purposes of prosecution for a violation of section 7 321.20B. 8 d. Data collected by an automated registration plate reader 9 system shall not be used by any person for purposes other than 10 to establish a violation of section 321.20B or as otherwise 11 authorized under this section. 12 e. A law enforcement agency shall not sell data collected by 13 an automated registration plate reader system for any purpose 14 or share such data for any purpose not authorized by this 15 section. 16 3. County attorneys who implement and administer an 17 uninsured vehicle enforcement program shall, in association 18 with the Iowa county attorneys association, collectively 19 submit a report to the general assembly by September 1 of each 20 year consisting of an evaluation of the uninsured vehicle 21 enforcement programs in the state, including any information 22 relating to or recommendations for improvement of the programs. 23 Sec. 8. NEW SECTION . 321B.6 Diversion programs. 24 1. A county attorney may implement and administer an 25 uninsured vehicle enforcement diversion program in the 26 county attorney’s county for purposes of diverting complaints 27 involving violations of section 321.20B by owners of motor 28 vehicles from criminal court to the diversion program in 29 order to enhance public safety and security through increased 30 compliance with section 321.20B. Under a diversion program, 31 the county attorney may, at the county attorney’s discretion, 32 defer a person’s prosecution for a violation of section 321.20B 33 and refer the person to the diversion program. In making the 34 determination, the county attorney shall consider all of the 35 -11- LSB 1880YH (3) 88 ns/rh 11/ 18

H.F. 496 following factors: 1 a. Whether it is in the best interest of the person for the 2 person to be referred to the diversion program. 3 b. Whether it is in the best interest of the public for the 4 person to be referred to the diversion program. 5 c. Whether the person has previously received a warning 6 memorandum or has been previously convicted of a violation of 7 section 321.20B or a substantially similar statute of another 8 state. 9 d. Whether the person has other criminal charges currently 10 pending against the defendant, including the strength of the 11 evidence on which such charges are based. 12 2. Upon referral to a diversion program, a notice of the 13 referral shall be forwarded by mail to the last known address 14 of the registered owner of the motor vehicle. The notice shall 15 contain all of the following: 16 a. The date the alleged violation of section 321.20B 17 occurred. 18 b. A statement of the penalties for a violation of section 19 321.20B. 20 c. A statement that the records of the motor vehicle 21 insurance verification database indicate that the person, as 22 the registered owner of a motor vehicle, is not in compliance 23 with section 321.20B and that the complaint against the owner 24 has been referred to the diversion program. 25 d. The date before which the owner must contact the office 26 of the county attorney concerning the complaint. 27 3. If the owner fails to comply with the notice, the county 28 attorney may proceed with the prosecution of the owner as 29 provided by law. 30 4. The county attorney may enter into a written agreement 31 with the owner to defer prosecution on the complaint for a 32 period to be determined by the county attorney, not to exceed 33 two years. The conditions of an agreement to defer prosecution 34 shall include all of the following: 35 -12- LSB 1880YH (3) 88 ns/rh 12/ 18

H.F. 496 a. The owner shall provide proof of financial liability 1 coverage currently in effect for the motor vehicle upon request 2 of the county attorney. 3 b. The owner shall comply with section 321.20B for the full 4 term of the agreement. 5 c. The owner shall not own or operate any vehicle in 6 violation of section 321.20B during the full term of the 7 agreement. 8 5. a. Each diversion agreement shall include a provision 9 requiring the owner to pay to the county attorney’s office a 10 fee equal to the fine as provided in section 805.8A, subsection 11 14, paragraph “f” , for a violation of section 321.20B. This 12 fee shall be deposited in a special county attorney fund with 13 the county treasurer to be known as the uninsured vehicle 14 enforcement diversion program fund. 15 b. The moneys deposited in the uninsured vehicle enforcement 16 diversion program fund shall be used by the county attorney 17 to pay for all expenses and costs of equipping, operating, 18 and monitoring the uninsured vehicle enforcement program or 19 the diversion program, or both, including but not limited 20 to contractual payments to third-party entities providing 21 essential services or equipment for detection of violations of 22 section 321.20B, including automated registration plate reader 23 systems, and payment of reasonable compensation to authorized 24 and participating law enforcement agencies as may be agreed 25 upon between the entities, law enforcement agencies, and the 26 county attorney. 27 c. The county treasurer shall keep records of all moneys 28 deposited in and disbursed from the uninsured vehicle 29 enforcement diversion program fund. The records of the moneys 30 shall be audited at the same time the records of the county 31 treasurer are audited. 32 d. If the owner furnishes proof to the satisfaction of the 33 county attorney that financial liability coverage was in effect 34 at the time of the alleged violation, no fee shall be required. 35 -13- LSB 1880YH (3) 88 ns/rh 13/ 18

H.F. 496 6. County attorneys who implement and administer an 1 uninsured vehicle enforcement diversion program shall, in 2 association with the Iowa county attorneys association, 3 collectively submit a report to the general assembly by 4 September 1 of each year consisting of an evaluation of the 5 diversion programs in the state, including any information 6 relating to or recommendations for improvement of the programs, 7 and the amounts deposited in and disbursed from uninsured 8 vehicle enforcement diversion program funds in the state. 9 Sec. 9. EFFECTIVE DATE. This Act takes effect July 1, 2020. 10 Sec. 10. APPLICABILITY. The following apply on and after 11 the date on which the motor vehicle insurance verification 12 database established in this Act contains information on at 13 least ninety-five percent of the registered motor vehicles in 14 the state, as determined by the department of transportation: 15 1. The section of this Act enacting section 321B.5. 16 2. The section of this Act enacting section 321B.6. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill relates to motor vehicle insurance. 21 FINANCIAL LIABILITY COVERAGE. Under current law, Code 22 section 321.20B prohibits a person from driving a motor 23 vehicle unless financial liability coverage is in effect for 24 the vehicle and unless the driver has in the vehicle the 25 proof of financial liability coverage card issued for the 26 vehicle. The bill additionally requires the owner of any 27 motor vehicle registered under Code chapter 321 to maintain 28 financial liability coverage for the vehicle. A violation 29 of Code section 321.20B is punishable by a scheduled fine of 30 $250, or $500 in connection with a vehicle accident, removal 31 of the vehicle’s license plates and registration receipt, and 32 impoundment, at the peace officer’s discretion. By operation 33 of law, the bill does not apply to certain motor vehicles not 34 subject to registration under Code section 321.18, a lienholder 35 -14- LSB 1880YH (3) 88 ns/rh 14/ 18

H.F. 496 who has a security interest in a motor vehicle so long as the 1 lienholder maintains financial liability coverage for any 2 motor vehicle driven or moved by the lienholder in which the 3 lienholder has an interest, or a motor vehicle owned by a 4 licensed motor vehicle dealer or wholesaler. 5 INSURANCE VERIFICATION DATABASE. The bill establishes 6 a motor vehicle insurance verification program within 7 the department of transportation (DOT) for purposes of 8 administering a motor vehicle insurance verification database. 9 The bill requires the DOT to establish an advisory council 10 with members as provided in the bill for purposes of making 11 recommendations to, assisting, and reporting to the DOT on 12 matters related to the database. 13 The bill requires the DOT to either designate a position 14 within the DOT or, following competitive bidding procedures, 15 contract with a third party to act as the DOT’s designated 16 agent for administering the database. The designated agent 17 is required to update the database, compare information in 18 the database, and archive database files as provided in the 19 bill. The bill requires the DOT to audit the program at least 20 annually. 21 The bill sets forth certain reporting requirements under 22 which insurers must submit records to the designated agent. 23 The bill authorizes the DOT to assess a civil penalty of not 24 more than $250 for each day an insurer fails to comply with the 25 bill. 26 The bill sets forth certain limitations on the disclosure 27 of information in the database. Such information may be 28 disclosed to governmental agencies and courts for purposes 29 of investigating, litigating, or enforcing motor vehicle 30 financial liability requirements, and to certain other 31 persons as described in the bill. The bill provides that the 32 designated agent or any other person who knowingly discloses 33 the information in violation of the bill is guilty of a class 34 “D” felony. A class “D” felony is punishable by confinement 35 -15- LSB 1880YH (3) 88 ns/rh 15/ 18

H.F. 496 for no more than five years and a fine of at least $750 but not 1 more than $7,500. 2 AUTOMATED REGISTRATION PLATE READER SYSTEMS. The bill 3 authorizes a county attorney to implement and administer an 4 uninsured vehicle enforcement program in the county attorney’s 5 county under which law enforcement agencies in the county may 6 use an automated registration plate reader system (system) to 7 access and collect data for the enforcement of Code section 8 321.20B. The bill allows a county attorney or law enforcement 9 agency to enter into a contractual agreement with a provider 10 for purposes of providing the necessary technology, equipment, 11 and maintenance of a system. 12 The bill provides that a law enforcement agency using 13 a system shall have access to the motor vehicle insurance 14 verification database for purposes of determining whether a 15 motor vehicle which has had its registration plate number 16 recorded by a system is operating with the required financial 17 liability coverage. 18 The bill specifies the persons who may have access to 19 a system, and provides for the collection, retention, and 20 destruction of data. 21 The bill allows a peace officer to verify by sworn affidavit 22 that a photograph generated by a system identifies a particular 23 motor vehicle operating or having operated on the highways, 24 and that the motor vehicle insurance verification database 25 indicates the motor vehicle was not in compliance with Code 26 section 321.20B at the time of operation. The affidavit 27 constitutes probable cause for purposes of prosecution for a 28 violation of Code section 321.20B. 29 The bill prohibits a law enforcement agency from selling 30 data collected by a system or sharing such data for any purpose 31 not authorized by the bill. 32 The bill requires county attorneys who implement and 33 administer an uninsured vehicle enforcement program to, 34 in association with the Iowa county attorneys association, 35 -16- LSB 1880YH (3) 88 ns/rh 16/ 18

H.F. 496 collectively submit a report to the general assembly by 1 September 1 of each year consisting of an evaluation of the 2 uninsured vehicle enforcement programs in the state, including 3 any information relating to or recommendations for improvement 4 of the programs. 5 DIVERSION PROGRAMS. The bill authorizes a county attorney 6 to implement and administer an uninsured vehicle enforcement 7 diversion program (diversion program) in the county attorney’s 8 county for purposes of diverting complaints involving 9 violations of Code section 321.20B by owners of motor vehicles. 10 The county attorney may, at the county attorney’s discretion, 11 defer a person’s prosecution and refer the person to the 12 diversion program. The bill specifies factors the county 13 attorney must consider to make the determination. 14 The bill requires a notice to be mailed to a person upon 15 referral to a diversion program. If the person fails to comply 16 with the notice, the county attorney may proceed with the 17 prosecution of the person as provided by law. 18 The bill allows a county attorney to enter into a written 19 agreement with the person to defer prosecution on the complaint 20 for a period to be determined by the county attorney, not to 21 exceed two years. The bill specifies certain conditions that 22 must be included in an agreement to defer prosecution. 23 Each diversion agreement must include a provision requiring 24 the owner to pay to the county attorney’s office a fee of 25 between $250 and $500. The fees must be deposited in a special 26 county attorney fund with the county treasurer to be known 27 as the uninsured vehicle enforcement diversion program fund. 28 The moneys deposited in the fund must be used by the county 29 attorney to pay for all expenses and costs of equipping, 30 operating, and monitoring the programs, including but not 31 limited to contractual payments to third-party entities 32 providing essential services or equipment for detection 33 of violations of Code section 321.20B, including automated 34 registration plate reader systems, and payment of reasonable 35 -17- LSB 1880YH (3) 88 ns/rh 17/ 18

H.F. 496 compensation to authorized and participating law enforcement 1 agencies as may be agreed upon between the entities, law 2 enforcement agencies, and the county attorney. 3 The county treasurer must keep records of all moneys 4 deposited in and disbursed from the fund, and records of the 5 moneys must be audited at the same time the records of the 6 county treasurer are audited. 7 If a person furnishes proof to the satisfaction of the county 8 attorney that financial liability coverage was in effect at the 9 time of the alleged violation, no fee is required. 10 The bill requires county attorneys who implement and 11 administer a diversion program to, in association with the Iowa 12 county attorneys association, collectively submit a report to 13 the general assembly by September 1 of each year consisting of 14 an evaluation of the diversion programs in the state, including 15 any information relating to or recommendations for improvement 16 of the programs, and the amounts deposited in and disbursed 17 from uninsured vehicle enforcement diversion program funds in 18 the state. 19 EFFECTIVE DATE AND APPLICABILITY. The bill takes effect 20 July 1, 2020. The provisions of the bill relating to automated 21 registration plate reader systems and diversion programs apply 22 on and after the date on which the motor vehicle insurance 23 verification database contains information on at least 95 24 percent of the registered motor vehicles in the state, as 25 determined by the DOT. 26 -18- LSB 1880YH (3) 88 ns/rh 18/ 18