H.F. _____ Section 1. Section 321.20B, subsection 4, paragraph a, 1 unnumbered paragraph 1, Code 2025, is amended to read as 2 follows: 3 If a peace officer stops a motor vehicle registered in this 4 state and the driver is unable to provide proof of financial 5 liability coverage, the peace officer shall do one of the 6 following if the driver has not been convicted of a violation 7 of subsection 1 within the previous five-year period : 8 Sec. 2. Section 321.20B, subsection 4, paragraph c, Code 9 2025, is amended by striking the paragraph. 10 Sec. 3. Section 321.20B, subsection 5, unnumbered paragraph 11 1, Code 2025, is amended to read as follows: 12 If the a peace officer stops a motor vehicle is not 13 registered in this state and the driver is a nonresident and 14 unable to provide proof of financial liability coverage , the 15 peace officer shall do one of the following if the driver has 16 not been convicted of a violation of subsection 1 within the 17 previous five-year period : 18 Sec. 4. Section 321.20B, subsection 5, paragraph b, Code 19 2025, is amended by striking the paragraph and inserting in 20 lieu thereof the following: 21 b. Issue a citation to the driver. 22 Sec. 5. Section 321.20B, Code 2025, is amended by adding the 23 following new subsections: 24 NEW SUBSECTION . 5A. If a peace officer stops a motor 25 vehicle and the driver is unable to provide proof of financial 26 liability coverage and has been convicted of a violation of 27 subsection 1 within the previous five-year period, the peace 28 officer shall arrest the driver. 29 a. If the motor vehicle is registered in this state, the 30 peace officer may remove the motor vehicle’s registration 31 plates and registration receipt, in which case subsection 4, 32 paragraph “a” , subparagraph (3), subparagraph division (a), 33 applies. 34 b. The peace officer may impound the motor vehicle, in 35 -1- LSB 2680YC (1) 91 th/ns 1/ 4

H.F. _____ which case subsection 4, paragraph “a” , subparagraph (4), 1 subparagraph divisions (b) and (c), apply. 2 c. If the peace officer takes action under paragraph “a” or 3 “b” , and the owner of the vehicle provides proof of financial 4 liability coverage to the clerk of court, subsection 4, 5 paragraph “b” , subparagraph (1), applies. 6 NEW SUBSECTION . 5B. An owner or driver cited for or charged 7 with a violation of subsection 1 who produces to the clerk of 8 court prior to the date of the person’s court appearance proof 9 that financial liability coverage was in effect for the motor 10 vehicle at the time the person was stopped, or if the driver 11 is not the owner of the motor vehicle, proof that financial 12 liability coverage was in effect for the driver with respect 13 to the motor vehicle being driven at the time the driver was 14 stopped in the same manner as if the motor vehicle were owned 15 by the driver, shall be given a receipt indicating that proof 16 was provided, and the citation or charge shall be dismissed by 17 the court. Upon dismissal, the court or clerk of court shall 18 assess the costs of the action against the defendant. 19 NEW SUBSECTION . 5C. a. Except as provided in paragraph 20 “b” , a person convicted of a violation of subsection 1 is guilty 21 of a simple misdemeanor punishable as a scheduled violation 22 under section 805.8A, subsection 14, paragraph “f” . 23 b. A person convicted of a second or subsequent violation 24 of subsection 1 within a five-year period is guilty of a class 25 “D” felony. 26 Sec. 6. Section 805.8A, subsection 14, paragraph f, Code 27 2025, is amended to read as follows: 28 f. Proof of financial responsibility. If, in connection with 29 a motor vehicle accident, a person is charged and found guilty 30 of a violation of section 321.20B, subsection 1 , the scheduled 31 fine is six hundred forty-five dollars; otherwise, the 32 scheduled fine for a violation of section 321.20B, subsection 33 1 , is three hundred twenty-five dollars. Notwithstanding 34 section 805.12 , fines collected pursuant to this paragraph 35 -2- LSB 2680YC (1) 91 th/ns 2/ 4

H.F. _____ shall be submitted to the state court administrator and 1 distributed fifty percent to the victim compensation fund 2 established in section 915.94 , twenty-five percent to the 3 county in which such fine is imposed, and twenty-five percent 4 to the general fund of the state. This paragraph does not 5 apply to a person charged under section 321.20B, subsection 5C, 6 paragraph “b” . 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 Under current law, a person driving a motor vehicle on a 11 highway is required to have financial liability coverage in 12 effect for the motor vehicle and have the proof of financial 13 liability coverage card issued for the motor vehicle in the 14 motor vehicle, unless specifically excepted. For a violation 15 of these provisions, a peace officer is required to issue a 16 warning memorandum; issue a citation; issue a citation and 17 remove the motor vehicle’s license plates and registration 18 receipt; or issue a citation, remove the motor vehicle’s 19 license plates and registration receipt, and impound the motor 20 vehicle, when the officer stops a driver whose vehicle is 21 registered in Iowa. If the vehicle is not registered in Iowa 22 and the driver is a nonresident, the peace officer must issue a 23 warning memorandum or a citation. A person who does not have 24 financial liability coverage in effect for the vehicle or who 25 does not carry proof of such coverage in the vehicle commits 26 a simple misdemeanor punishable as a scheduled violation. If 27 in connection with a motor vehicle accident, the scheduled 28 fine is $645; otherwise, the scheduled fine is $325. A fine 29 collected must be submitted to the state court administrator 30 and distributed 50 percent to the victim compensation fund, 25 31 percent to the county in which such fine is imposed, and 25 32 percent to the general fund of the state. 33 This bill makes a second or subsequent violation of Code 34 section 321.20B(1) within five years a class “D” felony. 35 -3- LSB 2680YC (1) 91 th/ns 3/ 4

H.F. _____ For the penalty enhancement, the bill does not distinguish 1 between vehicles registered in Iowa, or not, or drivers who 2 are residents of Iowa, or not. A peace officer is required 3 to arrest the driver if the driver cannot provide proof of 4 financial liability coverage and was previously convicted for 5 the same violation within five years. A peace officer may 6 remove the motor vehicle’s registration plates and registration 7 receipt, or impound the motor vehicle, in which case associated 8 procedures under current law apply. In accordance with 9 current law, a person cited for a violation, including a person 10 arrested for a second or subsequent violation under the bill, 11 may provide proof that financial liability coverage was in 12 effect at the time the person was stopped and the court must 13 dismiss the citation or charge and assess costs to the person. 14 A class “D” felony is punishable by confinement for no more 15 than five years and a fine of at least $1,025 but not more 16 than $10,245. The fine will be collected by the clerk of the 17 district court and submitted to the state court administrator 18 for distribution as provided in Code section 602.8108. 19 Financial liability coverage is generally required to be 20 in effect for every motor vehicle driven on Iowa highways. 21 However, the requirement does not apply to vehicles owned by 22 or leased to the United States, Iowa, or another state, or any 23 political subdivision thereof; vehicles subject to Code section 24 325A.6 (motor carrier insurance); certain motor vehicles not 25 subject to registration (Code section 321.18); a lienholder 26 with a security interest in a motor vehicle that does not 27 drive or move the vehicle; and motor vehicles owned by a motor 28 vehicle dealer or wholesaler licensed pursuant to Code chapter 29 322. 30 The bill makes organizational changes to Code section 31 321.20B. 32 -4- LSB 2680YC (1) 91 th/ns 4/ 4