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
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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
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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
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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.
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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.
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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.
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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
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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
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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
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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.
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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
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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
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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:
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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.
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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
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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
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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