H.F. 2091 Section 1. Section 321.11, subsection 3, Code 2024, 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, appeals, and licensing in the conduct of an 9 investigation, or a licensed private investigation agency 10 or a licensed security service or a licensed employee of 11 either, if the information is requested by the presentation 12 of a registration plate number. However, the department may 13 release personal information to the department’s designated 14 agent for the purposes of complying with chapter 321B. In 15 addition, an officer or employee of a law enforcement agency 16 may release the name, address, and telephone number of a motor 17 vehicle registrant to a person requesting the information by 18 the presentation of a registration plate number if the officer 19 or employee of the law enforcement agency believes that the 20 release of the information is necessary in the performance of 21 the officer’s or employee’s duties. 22 Sec. 2. NEW SECTION . 321B.1 Definitions. 23 As used in this chapter: 24 1. “Advisory council” means the group established pursuant 25 to section 321B.2, subsection 2. 26 2. “Database” means the motor vehicle insurance verification 27 database created under this chapter. 28 3. “Department” means the state department of 29 transportation. 30 4. “Designated agent” means the third party with which the 31 department contracts under section 321B.2. 32 5. “Financial institution” means financial institution as 33 defined in 18 U.S.C. §20. 34 6. “Motor vehicle” means the same as defined in section 35 -1- LSB 5544YH (2) 90 th/ns 1/ 14

H.F. 2091 321.1. 1 7. “Program” means the motor vehicle insurance verification 2 program created under this chapter. 3 8. “Real-time internet services model” means an electronic 4 service established by insurers through the internet, the 5 world wide web, or a similar proprietary or common carrier 6 electronic system that complies with the specifications and 7 standards of the insurance industry committee on motor vehicle 8 administration and that is available twenty-four hours per 9 day, seven days per week, subject to reasonable allowances for 10 scheduled maintenance or temporary system failures. 11 Sec. 3. NEW SECTION . 321B.2 Motor vehicle insurance 12 verification program —— advisory council. 13 1. A motor vehicle insurance verification program is 14 created within the department to be administered by the 15 department. The purposes of the program include all of the 16 following: 17 a. To establish a motor vehicle insurance verification 18 database to verify compliance with the requirements of section 19 321.20B. 20 b. To assist in reducing the number of uninsured motor 21 vehicles on the highways of the state. 22 c. To assist in increasing compliance with motor vehicle 23 registration requirements and for other law enforcement 24 purposes. 25 d. To assist in protecting the bona fide security interests 26 of financial institutions in motor vehicles. 27 2. a. The department of transportation shall establish an 28 advisory council, chaired by the director of the department 29 of transportation or the director’s designee, consisting 30 of six members including the director of the department of 31 transportation or the director’s designee, a representative 32 of the department of public safety, an insurance company 33 representative appointed by the commissioner of insurance, an 34 insurance agent appointed by the commissioner of insurance, a 35 -2- LSB 5544YH (2) 90 th/ns 2/ 14

H.F. 2091 representative of a trade association of property and casualty 1 insurers appointed by the commissioner of insurance, and 2 a representative of a vendor with experience implementing 3 real-time internet services models and databases similar to the 4 database created under this chapter appointed by the director 5 of the department of transportation. 6 b. The advisory council shall do all of the following: 7 (1) Make recommendations to the department on the best 8 methods and practices for implementing a real-time internet 9 services model for motor vehicle insurance verification. 10 (2) Develop a guide for insurers detailing the data fields 11 and other information necessary for compliance with this 12 chapter. 13 (3) Provide an annual report to the department detailing 14 the improvements and implementation efforts relating to 15 motor vehicle insurance verification in other states for 16 consideration in improving compliance and operations in this 17 state. 18 3. Following the competitive bidding procedures as provided 19 in chapter 8A, subchapter III, the department shall contract 20 with a third party to act as the department’s designated agent 21 for administration of this chapter. For the period of the 22 contract, the designated agent shall establish and maintain a 23 computer database containing all of the following: 24 a. Information provided by insurers under section 321B.4. 25 b. Information provided by the department under subsection 26 6. 27 c. Information obtained using a real-time internet services 28 model. 29 d. Any other information provided by the department pursuant 30 to this chapter. 31 4. The database shall be developed and maintained, and 32 access to a real-time internet services model shall be 33 provided, in accordance with guidelines established by the 34 department by rule to allow authorized state and local law 35 -3- LSB 5544YH (2) 90 th/ns 3/ 14

H.F. 2091 enforcement agencies and financial institutions to efficiently 1 access the records of the database and real-time internet 2 services model, including reports useful for the implementation 3 of this chapter, twenty-four hours per day, seven days 4 per week, subject to reasonable allowances for scheduled 5 maintenance or temporary system failures. 6 a. Database reports must be in a form and contain 7 information approved by the department. 8 b. Database reports may be made available through the 9 department’s internet site or through other electronic media 10 if the department determines that sufficient security is 11 provided to ensure compliance with the provisions of this 12 chapter regarding limitations on disclosure of information in 13 the database. 14 c. The department shall consult with the chief information 15 officer for the purpose of developing network security 16 requirements for the database. 17 5. At least monthly, the designated agent shall do the 18 following, using information provided by the department: 19 a. Update the database with motor vehicle insurance 20 information provided by insurers in accordance with section 21 321B.4. 22 b. Compare all current motor vehicle registrations against 23 the database. If records in the database indicate that a 24 registered motor vehicle is not covered under an owner’s 25 policy of liability insurance, the designated agent shall 26 use a real-time internet services model to determine if the 27 registered motor vehicle is covered under an owner’s policy of 28 liability insurance. 29 6. On or before the seventh day of each calendar month, the 30 department shall provide the designated agent with the make, 31 model, year, and vehicle identification number of each vehicle 32 in the department’s motor vehicle database, and the name and 33 address of each person listed on each vehicle’s registration. 34 7. The department shall adopt rules pursuant to chapter 35 -4- LSB 5544YH (2) 90 th/ns 4/ 14

H.F. 2091 17A establishing procedures for the use of the department’s 1 motor vehicle database for the purposes of administering and 2 enforcing this chapter. 3 8. a. The designated agent shall archive database files at 4 least semiannually for auditing purposes. 5 b. The department shall audit the program at least annually. 6 The audit shall include verification of: 7 (1) Billings made by the designated agent. 8 (2) The accuracy of the designated agent’s matching of 9 vehicle registration records with insurance data. 10 Sec. 4. NEW SECTION . 321B.3 Enforcement of financial 11 responsibility requirements —— penalty. 12 1. If records in the database and the real-time internet 13 services model used by the designated agent indicate that a 14 registered motor vehicle is not covered under an owner’s policy 15 of liability insurance for two consecutive months, at the 16 direction of the department the designated agent shall provide 17 notice by first-class mail to the owner of the motor vehicle 18 that the owner has fifteen days from the date the notice was 19 mailed to provide one of the following: 20 a. Proof of financial liability coverage as defined in 21 section 321.1. 22 b. Proof that the owner is exempt from the requirement to 23 maintain proof of financial liability coverage under section 24 321.20B. 25 2. If, after fifteen days, the owner of the motor vehicle 26 fails to provide satisfactory proof of financial liability 27 coverage, the designated agent shall provide a second notice 28 by first-class mail to the owner of the motor vehicle allowing 29 the owner an additional fifteen days from the date the second 30 notice was mailed to provide the information requested under 31 subsection 1. 32 3. a. The designated agent shall update the database 33 regarding each notice sent to a motor vehicle owner under 34 subsections 1 and 2, indicating the information provided by the 35 -5- LSB 5544YH (2) 90 th/ns 5/ 14

H.F. 2091 motor vehicle owner or the owner’s failure to provide proof of 1 financial liability coverage, as applicable. 2 b. If the owner of a motor vehicle provides proof to the 3 department or the designated agent that the owner’s motor 4 vehicle is covered by an acceptable form of financial liability 5 coverage described in section 321.1, subsection 24B, paragraph 6 “b” , “c” , or “d” , the information shall be recorded in the 7 database. 8 c. If the designated agent determines the motor vehicle 9 is appropriately insured using a real-time internet services 10 model, the information shall be recorded in the database. 11 4. a. If the owner of a motor vehicle fails to provide 12 proof of financial liability coverage following receipt of the 13 second notice under subsection 2, the designated agent shall 14 notify the department, and the department shall suspend the 15 registration of the motor vehicle. 16 b. The department shall provide to the owner of the motor 17 vehicle appropriate notice of the suspension, order the owner 18 to surrender the registration plates and registration receipt 19 for the vehicle to the county treasurer, advise the owner of 20 the legal consequences of operating a vehicle with a suspended 21 registration and without financial liability coverage, and 22 instruct the owner on how to reinstate the vehicle registration 23 once the owner has obtained financial liability coverage for 24 the vehicle. 25 5. a. A person shall not provide a false or fraudulent 26 statement to the department or the department’s designated 27 agent in regard to proceedings under this chapter. 28 b. In addition to any other penalties, a person who violates 29 paragraph “a” is guilty of a simple misdemeanor. 30 6. A suspension of registration under this chapter is in 31 addition to any other penalty imposed by law. This chapter 32 does not affect other actions or penalties that may be taken or 33 imposed for a violation of section 321.20B or other law. 34 7. a. A registration that has been suspended under this 35 -6- LSB 5544YH (2) 90 th/ns 6/ 14

H.F. 2091 section shall not be reinstated and a registration shall not be 1 issued to the holder of the suspended registration until the 2 person does all of the following: 3 (1) Pays to the department an administrative reinstatement 4 fee of one hundred dollars, in addition to any other penalty 5 imposed by law. 6 (2) Complies with the requirements of section 321.20B and 7 this chapter. 8 b. (1) Eighty-five percent of reinstatement fees collected 9 under this subsection shall be retained by the department as 10 repayment receipts as defined in section 8.2 and shall be used 11 exclusively to offset the costs of administering the program, 12 including payments made by the department to the department’s 13 designated agent. 14 (2) Fifteen percent of the reinstatement fees collected 15 under this subsection shall be paid monthly to the treasurer 16 of state and deposited in the emergency medical services fund 17 created in section 135.25. 18 Sec. 5. NEW SECTION . 321B.4 Motor vehicle insurance 19 reporting —— penalty. 20 1. a. Except as provided in paragraph “b” , each insurer 21 that issues a policy to a motor vehicle owner in this state 22 that includes motor vehicle liability coverage, uninsured 23 motorist coverage, underinsured motorist coverage, or 24 personal injury coverage shall, on or before the seventh 25 and twenty-first days of each calendar month, submit to the 26 department’s designated agent a record of each motor vehicle 27 insurance policy that was issued by the insurer and in effect 28 for a vehicle registered or garaged in this state as of the 29 date of the previous submission. 30 b. An insurer is not required to provide a record of a motor 31 vehicle insurance policy under paragraph “a” if the policy 32 covers a vehicle that is registered under chapter 326. 33 c. This subsection does not preclude more frequent 34 reporting. 35 -7- LSB 5544YH (2) 90 th/ns 7/ 14

H.F. 2091 2. A record provided by an insurer under subsection 1, 1 paragraph “a” , must include all of the following: 2 a. The name, date of birth, and driver’s license number, if 3 the insured provides a driver’s license number to the insurer, 4 of each insured owner or operator, and the address of the named 5 insured. 6 b. The make, year, and vehicle identification number of each 7 insured vehicle. 8 c. The policy number and effective date of each policy. 9 3. An insurer shall provide the information required under 10 this section via electronic means or via another means the 11 designated agent agrees to accept. 12 4. a. The department may assess a civil penalty of not more 13 than two hundred fifty dollars for each day an insurer fails to 14 comply with this section. 15 b. If an insurer shows that the failure to comply with this 16 section was inadvertent, accidental, or the result of excusable 17 neglect, the department may waive the civil penalty. 18 c. An insurer that discloses records to the department’s 19 designated agent in a reasonable, good-faith effort to comply 20 with the requirements of this section shall not be subject to a 21 civil penalty under paragraph “a” . 22 d. Civil penalties collected under this subsection shall be 23 deposited in the road use tax fund. 24 Sec. 6. NEW SECTION . 321B.5 Disclosure of database 25 information —— penalty. 26 1. Information provided to the designated agent and 27 information contained in the database under this chapter are 28 confidential and subject to the provisions and penalties of 18 29 U.S.C. §2721. Such information may not be disclosed, except 30 as follows: 31 a. For the purpose of investigating, litigating, or 32 enforcing the financial liability coverage requirements 33 of section 321.20B, the designated agent shall provide an 34 electronic record to a state or local government agency or 35 -8- LSB 5544YH (2) 90 th/ns 8/ 14

H.F. 2091 court verifying motor vehicle financial liability coverage 1 information. 2 b. For the purpose of investigating, litigating, or 3 enforcing the financial liability coverage requirements of 4 section 321.20B, the designated agent shall, upon request, 5 issue to any state or local government agency or court a 6 certificate documenting motor vehicle financial liability 7 coverage, according to the database, of a specific individual 8 or motor vehicle for the time period designated by the 9 government agency or court. 10 c. Upon request, the department or its designated agent 11 shall disclose whether an individual is covered under a motor 12 vehicle insurance policy, proof of the insurance coverage 13 policy, and the insurance company name to: 14 (1) The individual or, if the individual is deceased, 15 any person who is an interested party in the estate of the 16 individual as provided under chapter 633. 17 (2) The parent or legal guardian of the individual if the 18 individual is an unemancipated minor. 19 (3) The legal guardian of the individual if the individual 20 is legally incapacitated. 21 (4) A person who has power of attorney for the individual. 22 (5) A person who submits a notarized release from the 23 individual dated no more than ninety days before the date the 24 request is made. 25 (6) A person suffering loss or injury in a motor vehicle 26 accident in which the individual was involved, but only as part 27 of an accident report as authorized in section 321.271 relating 28 to access to accident reports. 29 d. For the purpose of investigating, enforcing, or 30 prosecuting laws or issuing citations, information related to a 31 motor vehicle owner or operator’s financial liability coverage 32 under section 321.20B may be provided to state or local law 33 enforcement agencies. 34 e. Upon request of a peace officer acting in an official 35 -9- LSB 5544YH (2) 90 th/ns 9/ 14

H.F. 2091 capacity under the provisions of paragraph “d” , the department 1 or the designated agent shall, upon request, disclose relevant 2 information contained in the database. 3 f. For the purpose of the state auditor conducting audits 4 of the program. 5 g. Upon request of a financial institution for the purpose 6 of protecting the financial institution’s bona fide security 7 interest in a motor vehicle. 8 2. a. The department may allow the designated agent to 9 prepare and deliver, upon request, a report on the insurance 10 information of a person or motor vehicle in accordance with 11 this section. The report may be in the form of: 12 (1) A certified copy that is considered admissible in any 13 court proceeding in the same manner as the original. 14 (2) Information accessible through the internet or through 15 another electronic medium if the department determines that 16 sufficient security is provided to ensure compliance with this 17 section. 18 b. The department may allow the designated agent to charge a 19 fee established by the department for each of the following: 20 (1) Authenticating a document, including preparation and 21 delivery of a certified copy. 22 (2) Accessing a record through the internet or through 23 another electronic medium. 24 (3) Providing a record to a financial institution under 25 subsection 1, paragraph “g” . 26 3. The designated agent or any other person who knowingly 27 releases or discloses information from the database for a 28 purpose other than those authorized in this section or to a 29 person who is not entitled to such information is guilty of a 30 class “D” felony. 31 4. Neither the state nor the department’s designated agent 32 shall be liable to any person for gathering, managing, or 33 using the information in the database in compliance with this 34 chapter. 35 -10- LSB 5544YH (2) 90 th/ns 10/ 14

H.F. 2091 5. The designated agent shall be responsible for 1 maintaining and securing the information in the database 2 provided by the department and insurers under sections 321B.2 3 and 321B.4. 4 6. An insurer acting in compliance with this chapter shall 5 not be liable to any person for the disclosure of information 6 supplied to the department or designated agent. The designated 7 agent shall indemnify an insurer against any loss arising from 8 the disclosure of information supplied to the department or 9 designated agent, provided the insurer supplied the information 10 to the department or designated agent in a manner that complies 11 with this chapter and rules adopted pursuant to this chapter. 12 Records provided by an insurer under this chapter shall be 13 deemed evidence of insurance and not a guarantee of insurance. 14 Sec. 7. EFFECTIVE DATE. This Act takes effect July 1, 2025. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill establishes a motor vehicle insurance verification 19 program (program) to be administered by the department of 20 transportation (DOT). Following the appropriate competitive 21 bidding procedures, the DOT is required to contract with 22 a third party to act as the DOT’s designated agent for 23 administration of the program. 24 The bill requires the DOT to establish an advisory council 25 to make recommendations to the DOT on the best methods and 26 practices for implementing a real-time internet services model 27 for insurance verification, to assist in the development of 28 a guide for insurers detailing the data fields and other 29 information necessary for compliance with the bill, and to 30 provide an annual report to the DOT detailing the improvements 31 and implementation efforts relating to insurance verification 32 in other states for consideration in improving compliance and 33 operations in this state. 34 The designated agent is required to establish and maintain a 35 -11- LSB 5544YH (2) 90 th/ns 11/ 14

H.F. 2091 database containing information from insurers relating to motor 1 vehicle insurance coverage for registered motor vehicles, motor 2 vehicle identification information, personal identification 3 information for registered owners of motor vehicles, and any 4 other information provided to the designated agent by the DOT. 5 At least monthly, the designated agent must update the database 6 and compare current motor vehicle registrations with updated 7 insurance information. If records in the database indicate 8 that a registered motor vehicle is not covered under an owner’s 9 policy of liability insurance, the bill requires the designated 10 agent to use a real-time internet services model to determine 11 if the registered motor vehicle is covered under an owner’s 12 policy of liability insurance. The files in the database 13 must be archived semiannually and audited by the DOT at least 14 annually. 15 If database records and the real-time internet services 16 model show that a registered motor vehicle is not covered under 17 an owner’s policy of liability insurance for two consecutive 18 months, the designated agent is required to send a notice 19 to the owner requiring the owner to respond within 15 days 20 by providing proof of financial liability coverage or proof 21 that the owner is exempt from the requirement to maintain 22 financial liability coverage. If the owner fails to respond, 23 a second notice must be sent. If the owner does not respond 24 to the second notice, the owner’s motor vehicle registration 25 must be suspended by the DOT and the owner is required to 26 surrender the registration plates and registration receipt for 27 the vehicle to the county treasurer. In order to reinstate 28 the registration for the vehicle, the owner must comply with 29 financial responsibility requirements and pay an administrative 30 fee of $100. The bill provides that 85 percent of the fees 31 collected are to be used by the DOT exclusively to offset the 32 costs of administering the program, including payments made 33 to the designated agent. In addition, 15 percent of the fees 34 collected are deposited in the emergency medical services 35 -12- LSB 5544YH (2) 90 th/ns 12/ 14

H.F. 2091 fund created in Code section 135.25. That fund is used to 1 assist counties by matching moneys spent for the acquisition of 2 equipment for the provision of emergency medical services and 3 by providing grants for education and training in the delivery 4 of emergency medical services. 5 The bill provides that if a motor vehicle is covered by a 6 form of financial liability coverage other than an insurance 7 policy, or if a real-time internet services model indicates a 8 vehicle is appropriately insured, that fact shall be noted in 9 the database. 10 The bill prohibits a person from providing false or 11 fraudulent information to the DOT or the DOT’s designated 12 agent in relation to the motor vehicle insurance verification 13 program. A violation of this provision is a simple 14 misdemeanor. A simple misdemeanor is punishable by confinement 15 for no more than 30 days and a fine of at least $105 but not 16 more than $855. 17 The bill requires each insurer that issues a policy to the 18 owner of a motor vehicle that includes motor vehicle liability 19 coverage, uninsured motorist coverage, underinsured motorist 20 coverage, or personal injury coverage to, before the 7th and 21 the 21st of each month, provide the DOT’s designated agent with 22 a record of each motor vehicle insurance policy issued by the 23 insurer and in effect for vehicles registered or garaged in 24 the state as of the date of the previous submission. Vehicles 25 subject to apportioned registration under Code chapter 326 are 26 not included in this requirement. Insurers that fail to comply 27 with the reporting requirement may be assessed a civil penalty 28 of $250 per day. Civil penalties collected under the bill are 29 deposited in the road use tax fund. However, the DOT may waive 30 the penalty upon a showing that the failure was inadvertent, 31 accidental, or the result of excusable neglect. An insurer 32 that discloses records to the DOT’s designated agent in a 33 reasonable, good-faith effort to comply with the bill is not 34 subject to the penalty. 35 -13- LSB 5544YH (2) 90 th/ns 13/ 14

H.F. 2091 Information contained in the database is confidential, but 1 the bill provides exceptions for certain disclosures, including 2 disclosures to state or local government agencies and courts 3 for specified purposes, to individuals and certain other 4 authorized persons, for purposes of an accident investigation, 5 to law enforcement agencies and peace officers for certain 6 official purposes, to the state auditor, and to financial 7 institutions with a security interest in a motor vehicle. 8 The designated agent may be authorized by the DOT to provide 9 certified copies or electronic records, as appropriate, and to 10 charge a fee for the provision of records and authentication 11 of documents. 12 A person, including the designated agent, who knowingly 13 releases or discloses information from the database for a 14 purpose other than those authorized in the bill or to a person 15 who is not entitled to such information is guilty of a class 16 “D” felony. A class “D” felony is punishable by confinement 17 for no more than five years and a fine of at least $1,025 but 18 not more than $10,245. 19 The bill provides that the state and the DOT’s designated 20 agent are not liable to any person for gathering, managing, or 21 using the information in the database in compliance with the 22 bill. The bill further provides that the designated agent is 23 responsible for maintaining and securing the information in the 24 database provided by the DOT and insurers, and insurers acting 25 in compliance with the bill are not liable to any person for 26 the disclosure of information supplied to the DOT or designated 27 agent. The designated agent is required to indemnify an 28 insurer against any loss arising from a disclosure, provided 29 the insurer supplied the information in compliance with the 30 bill. 31 The bill takes effect July 1, 2025. 32 -14- LSB 5544YH (2) 90 th/ns 14/ 14