H.F. 918 Section 1. Section 321.20, subsection 1, Code 2025, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . g. If the vehicle is a motor vehicle, the 3 owner shall certify on the application that financial liability 4 coverage is in effect for the motor vehicle pursuant to section 5 321.20B and provide a copy of the proof of financial liability 6 coverage card issued for the motor vehicle, a description of 7 the financial liability coverage as noted on the proof of 8 financial liability coverage card, or other documentation 9 acceptable to the department. This paragraph does not apply 10 to a motor vehicle excluded from the requirements of section 11 321.20B. 12 Sec. 2. Section 321.20B, subsection 4, paragraph a, 13 unnumbered paragraph 1, Code 2025, is amended to read as 14 follows: 15 If a peace officer stops a motor vehicle registered in this 16 state and the driver is unable to provide proof of financial 17 liability coverage, the peace officer shall do one of the 18 following if the driver has not been convicted of a violation 19 of subsection 1 within the previous five-year period : 20 Sec. 3. Section 321.20B, subsection 4, paragraph c, Code 21 2025, is amended by striking the paragraph. 22 Sec. 4. Section 321.20B, subsection 5, unnumbered paragraph 23 1, Code 2025, is amended to read as follows: 24 If the a peace officer stops a motor vehicle is not 25 registered in this state and the driver is a nonresident and 26 unable to provide proof of financial liability coverage , the 27 peace officer shall do one of the following if the driver has 28 not been convicted of a violation of subsection 1 within the 29 previous five-year period : 30 Sec. 5. Section 321.20B, subsection 5, paragraph b, Code 31 2025, is amended by striking the paragraph and inserting in 32 lieu thereof the following: 33 b. Issue a citation to the driver. 34 Sec. 6. Section 321.20B, Code 2025, is amended by adding the 35 -1- LSB 2680HV (2) 91 th/ns 1/ 6

H.F. 918 following new subsections: 1 NEW SUBSECTION . 5A. If a peace officer stops a motor 2 vehicle and the driver is unable to provide proof of financial 3 liability coverage and has been convicted of a violation of 4 subsection 1 within the previous five-year period, the peace 5 officer shall arrest the driver. 6 a. If the motor vehicle is registered in this state, the 7 peace officer may remove the motor vehicle’s registration 8 plates and registration receipt, in which case subsection 4, 9 paragraph “a” , subparagraph (3), subparagraph division (a), 10 applies. 11 b. The peace officer may impound the motor vehicle, in 12 which case subsection 4, paragraph “a” , subparagraph (4), 13 subparagraph divisions (b) and (c), apply. 14 c. If the peace officer takes action under paragraph “a” or 15 “b” , and the owner of the vehicle provides proof of financial 16 liability coverage to the clerk of court, subsection 4, 17 paragraph “b” , subparagraph (1), applies. 18 NEW SUBSECTION . 5B. An owner or driver cited for or charged 19 with a violation of subsection 1 who produces to the clerk of 20 court prior to the date of the person’s court appearance proof 21 that financial liability coverage was in effect for the motor 22 vehicle at the time the person was stopped, or if the driver 23 is not the owner of the motor vehicle, proof that financial 24 liability coverage was in effect for the driver with respect 25 to the motor vehicle being driven at the time the driver was 26 stopped in the same manner as if the motor vehicle were owned 27 by the driver, shall be given a receipt indicating that proof 28 was provided, and the citation or charge shall be dismissed by 29 the court. Upon dismissal, the court or clerk of court shall 30 assess the costs of the action against the defendant. 31 NEW SUBSECTION . 5C. a. Except as provided in paragraph 32 “b” , a person convicted of a violation of subsection 1 is guilty 33 of a simple misdemeanor punishable as a scheduled violation 34 under section 805.8A, subsection 14, paragraph “f” . 35 -2- LSB 2680HV (2) 91 th/ns 2/ 6

H.F. 918 b. A person convicted of a second or subsequent violation 1 of subsection 1 within a five-year period is guilty of an 2 aggravated misdemeanor. 3 Sec. 7. Section 321.30, Code 2025, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 4. The department or the county treasurer 6 shall refuse registration of a motor vehicle if the owner 7 does not provide satisfactory proof that financial liability 8 coverage is in effect for the motor vehicle pursuant to section 9 321.20B. This subsection does not apply to a motor vehicle 10 excluded from the requirements of section 321.20B. 11 Sec. 8. Section 321.40, Code 2025, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 11. A form for certification of financial 14 liability coverage pursuant to section 321.20B shall accompany 15 each renewal statement sent to the owner of a motor vehicle 16 under this section. The county treasurer shall refuse to renew 17 the registration of a motor vehicle if the applicant does not 18 submit satisfactory proof of financial liability coverage in 19 effect for the motor vehicle pursuant to section 321.20B. This 20 subsection does not apply to a motor vehicle excluded from the 21 requirements of section 321.20B. 22 Sec. 9. Section 805.8A, subsection 14, paragraph f, Code 23 2025, is amended to read as follows: 24 f. Proof of financial responsibility. If, in connection with 25 a motor vehicle accident, a person is charged and found guilty 26 of a violation of section 321.20B, subsection 1 , the scheduled 27 fine is six hundred forty-five dollars; otherwise, the 28 scheduled fine for a violation of section 321.20B, subsection 29 1 , is three hundred twenty-five dollars. Notwithstanding 30 section 805.12 , fines collected pursuant to this paragraph 31 shall be submitted to the state court administrator and 32 distributed fifty percent to the victim compensation fund 33 established in section 915.94 , twenty-five percent to the 34 county in which such fine is imposed, and twenty-five percent 35 -3- LSB 2680HV (2) 91 th/ns 3/ 6

H.F. 918 to the general fund of the state. This paragraph does not 1 apply to a person charged under section 321.20B, subsection 5C, 2 paragraph “b” . 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill relates to motor vehicle financial liability 7 coverage. 8 The bill requires the owner of a motor vehicle to certify 9 that financial liability coverage is in effect for the vehicle 10 as required under Code section 321.20B at the time the vehicle 11 is registered and each time the registration is renewed. At 12 the time of application for registration of a motor vehicle, 13 the owner is required to provide a copy of the proof of 14 financial liability coverage card issued for the motor vehicle, 15 a description of the coverage as noted on the card, or other 16 documentation acceptable to the department of transportation 17 (DOT). The DOT or county treasurer cannot register a motor 18 vehicle or renew a registration in the absence of satisfactory 19 proof that financial liability coverage is in effect for the 20 vehicle. These provisions do not apply to motor vehicles 21 excluded from the requirements of Code section 321.20B. 22 Under current law, a person driving a motor vehicle on a 23 highway is required to have financial liability coverage in 24 effect for the motor vehicle and have the proof of financial 25 liability coverage card issued for the motor vehicle in the 26 motor vehicle, unless specifically excepted. For a violation 27 of these provisions, a peace officer is required to issue a 28 warning memorandum; issue a citation; issue a citation and 29 remove the motor vehicle’s license plates and registration 30 receipt; or issue a citation, remove the motor vehicle’s 31 license plates and registration receipt, and impound the motor 32 vehicle, when the officer stops a driver whose vehicle is 33 registered in Iowa. If the vehicle is not registered in Iowa 34 and the driver is a nonresident, the peace officer must issue a 35 -4- LSB 2680HV (2) 91 th/ns 4/ 6

H.F. 918 warning memorandum or a citation. A person who does not have 1 financial liability coverage in effect for the vehicle or who 2 does not carry proof of such coverage in the vehicle commits 3 a simple misdemeanor punishable as a scheduled violation. If 4 in connection with a motor vehicle accident, the scheduled 5 fine is $645; otherwise, the scheduled fine is $325. A fine 6 collected must be submitted to the state court administrator 7 and distributed 50 percent to the victim compensation fund, 25 8 percent to the county in which such fine is imposed, and 25 9 percent to the general fund of the state. 10 The bill makes a second or subsequent violation of Code 11 section 321.20B(1) within five years an aggravated misdemeanor. 12 For the penalty enhancement, the bill does not distinguish 13 between vehicles registered in Iowa, or not, or drivers who 14 are residents of Iowa, or not. A peace officer is required 15 to arrest the driver if the driver cannot provide proof of 16 financial liability coverage and was previously convicted for 17 the same violation within five years. A peace officer may 18 remove the motor vehicle’s registration plates and registration 19 receipt, or impound the motor vehicle, in which case associated 20 procedures under current law apply. In accordance with 21 current law, a person cited for a violation, including a person 22 arrested for a second or subsequent violation under the bill, 23 may provide proof that financial liability coverage was in 24 effect at the time the person was stopped and the court must 25 dismiss the citation or charge and assess costs to the person. 26 An aggravated misdemeanor is punishable by confinement for no 27 more than two years and a fine of at least $855 but not more 28 than $8,540. The fine will be collected by the clerk of the 29 district court and submitted to the state court administrator 30 for distribution as provided in Code section 602.8108. 31 Financial liability coverage is generally required to be 32 in effect for every motor vehicle driven on Iowa highways. 33 However, the requirement does not apply to vehicles owned by 34 or leased to the United States, Iowa, or another state, or any 35 -5- LSB 2680HV (2) 91 th/ns 5/ 6

H.F. 918 political subdivision thereof; vehicles subject to Code section 1 325A.6 (motor carrier insurance); certain motor vehicles not 2 subject to registration (Code section 321.18); a lienholder 3 with a security interest in a motor vehicle that does not 4 drive or move the vehicle; and motor vehicles owned by a motor 5 vehicle dealer or wholesaler licensed pursuant to Code chapter 6 322. 7 The bill makes organizational changes to Code section 8 321.20B. 9 -6- LSB 2680HV (2) 91 th/ns 6/ 6