SSB 1171 (LSB 2198XC (2) 90)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON KLIMESH)

A BILL FOR

An Act relating to the issuance and suspension of motor vehicle registrations and certificates of title.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321.30, subsection 1, paragraph d, Code 2023, is amended to read as follows:
   d.  That the registration of the vehicle stands suspended or revoked, or the person applying for registration is prohibited from registering a motor vehicle, for any reason as provided in the motor vehicle laws of this state, except that the department and the county treasurer shall not refuse registration and issuance of a certificate of title or transfer of title as provided in section 321A.5 or 321A.17, or in accordance with rules adopted by the department.
    Sec. 2.  Section 321A.5, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  Notwithstanding any provision of this section to the contrary, the department and a county treasurer shall not refuse registration and issuance or transfer of a certificate of title to a person required by this section to deposit security, but the registration, once issued, shall be immediately suspended and the suspension shall remain in effect unless and until the owner deposits security in accordance with this section.
    Sec. 3.  Section 321A.17, Code 2023, is amended by adding the following new subsection:
   NEW SUBSECTION.  10.  Notwithstanding any provision of this section to the contrary, the department and a county treasurer shall not refuse registration and issuance or transfer of a certificate of title to a person required to give and thereafter maintain proof of financial responsibility under this section, but the registration, once issued, shall be immediately suspended and the suspension shall remain in effect unless and until the person gives and thereafter maintains proof of financial responsibility as required by this section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, the department of transportation (DOT) or a county treasurer is required to refuse registration and issuance of a certificate of title or transfer of title for a motor vehicle if, among other reasons, the registration of the vehicle stands suspended or revoked for any reason as provided in the motor vehicle laws of this state.
   The DOT is required to suspend a vehicle registration for a variety of reasons. Among other circumstances, under Code section 321A.5, the DOT must suspend a registration within 60 days after receiving a report of a motor vehicle accident within this state which resulted in bodily injury to, death of, or damage to the property in the amount of $1,500 or more of, any one person. Under Code section 321A.17, the DOT is required to suspend the registration of a person who is convicted for a violation of Code chapter 321J (operating while intoxicated), whose driver’s license was suspended or revoked, or who forfeits bail after operating while intoxicated. The registration remains suspended until the person gives and maintains proof of financial responsibility. The proof of financial responsibility must include one of a list of options, including form SR-22, pursuant to the DOT’s administrative rules.
   In such circumstances, this bill requires the DOT and a county treasurer to issue a registration for a vehicle and, if registration is issued, requires the DOT or a county treasurer to immediately suspend the registration, unless the person deposits security in accordance with Code section 321A.5 or gives and thereafter maintains proof of financial responsibility in accordance with Code section 321A.17, as applicable.
   A person who operates any motor vehicle upon the highways if the certificate of title has been canceled, or while the registration is suspended or revoked, commits a simple misdemeanor punishable by a scheduled fine of $135.