HSB 172 (LSB 2680YC (1) 91)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON PUBLIC SAFETY BILL BY CHAIRPERSON VONDRAN)

A BILL FOR

An Act relating to the penalty for a second or subsequent violation of motor vehicle financial liability coverage requirements.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321.20B, subsection 4, paragraph a, unnumbered paragraph 1, Code 2025, is amended to read as follows:
   If a peace officer stops a motor vehicle registered in this state and the driver is unable to provide proof of financial liability coverage, the peace officer shall do one of the following if the driver has not been convicted of a violation of subsection 1 within the previous five-year period:
    Sec. 2.  Section 321.20B, subsection 4, paragraph c, Code 2025, is amended by striking the paragraph.
    Sec. 3.  Section 321.20B, subsection 5, unnumbered paragraph 1, Code 2025, is amended to read as follows:
   If the a peace officer stops a motor vehicle is not registered in this state and the driver is a nonresident and unable to provide proof of financial liability coverage, the peace officer shall do one of the following if the driver has not been convicted of a violation of subsection 1 within the previous five-year period:
    Sec. 4.  Section 321.20B, subsection 5, paragraph b, Code 2025, is amended by striking the paragraph and inserting in lieu thereof the following:
   b.  Issue a citation to the driver.
    Sec. 5.  Section 321.20B, Code 2025, is amended by adding the following new subsections:
   NEW SUBSECTION.  5A.  If a peace officer stops a motor vehicle and the driver is unable to provide proof of financial liability coverage and has been convicted of a violation of subsection 1 within the previous five-year period, the peace officer shall arrest the driver.
   a.  If the motor vehicle is registered in this state, the peace officer may remove the motor vehicle’s registration plates and registration receipt, in which case subsection 4, paragraph “a”, subparagraph (3), subparagraph division (a), applies.
   b.  The peace officer may impound the motor vehicle, in which case subsection 4, paragraph “a”, subparagraph (4), subparagraph divisions (b) and (c), apply.
   c.  If the peace officer takes action under paragraph “a” or “b”, and the owner of the vehicle provides proof of financial liability coverage to the clerk of court, subsection 4, paragraph “b”, subparagraph (1), applies.
   NEW SUBSECTION.  5B.  An owner or driver cited for or charged with a violation of subsection 1 who produces to the clerk of court prior to the date of the person’s court appearance proof that financial liability coverage was in effect for the motor vehicle at the time the person was stopped, or if the driver is not the owner of the motor vehicle, proof that financial liability coverage was in effect for the driver with respect to the motor vehicle being driven at the time the driver was stopped in the same manner as if the motor vehicle were owned by the driver, shall be given a receipt indicating that proof was provided, and the citation or charge shall be dismissed by the court. Upon dismissal, the court or clerk of court shall assess the costs of the action against the defendant.
   NEW SUBSECTION.  5C.  a.  Except as provided in paragraph “b”, a person convicted of a violation of subsection 1 is guilty of a simple misdemeanor punishable as a scheduled violation under section 805.8A, subsection 14, paragraph “f”.
   b.  A person convicted of a second or subsequent violation of subsection 1 within a five-year period is guilty of a class “D” felony.
    Sec. 6.  Section 805.8A, subsection 14, paragraph f, Code 2025, is amended to read as follows:
   f.  Proof of financial responsibility.  If, in connection with a motor vehicle accident, a person is charged and found guilty of a violation of section 321.20B, subsection 1, the scheduled fine is six hundred forty-five dollars; otherwise, the scheduled fine for a violation of section 321.20B, subsection 1, is three hundred twenty-five dollars. Notwithstanding section 805.12, fines collected pursuant to this paragraph shall be submitted to the state court administrator and distributed fifty percent to the victim compensation fund established in section 915.94, twenty-five percent to the county in which such fine is imposed, and twenty-five percent to the general fund of the state.  This paragraph does not apply to a person charged under section 321.20B, subsection 5C, paragraph “b”.
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, a person driving a motor vehicle on a highway is required to have financial liability coverage in effect for the motor vehicle and have the proof of financial liability coverage card issued for the motor vehicle in the motor vehicle, unless specifically excepted. For a violation of these provisions, a peace officer is required to issue a warning memorandum; issue a citation; issue a citation and remove the motor vehicle’s license plates and registration receipt; or issue a citation, remove the motor vehicle’s license plates and registration receipt, and impound the motor vehicle, when the officer stops a driver whose vehicle is registered in Iowa. If the vehicle is not registered in Iowa and the driver is a nonresident, the peace officer must issue a warning memorandum or a citation. A person who does not have financial liability coverage in effect for the vehicle or who does not carry proof of such coverage in the vehicle commits a simple misdemeanor punishable as a scheduled violation. If in connection with a motor vehicle accident, the scheduled fine is $645; otherwise, the scheduled fine is $325. A fine collected must be submitted to the state court administrator and distributed 50 percent to the victim compensation fund, 25 percent to the county in which such fine is imposed, and 25 percent to the general fund of the state.
   This bill makes a second or subsequent violation of Code section 321.20B(1) within five years a class “D” felony. For the penalty enhancement, the bill does not distinguish between vehicles registered in Iowa, or not, or drivers who are residents of Iowa, or not. A peace officer is required to arrest the driver if the driver cannot provide proof of financial liability coverage and was previously convicted for the same violation within five years. A peace officer may remove the motor vehicle’s registration plates and registration receipt, or impound the motor vehicle, in which case associated procedures under current law apply. In accordance with current law, a person cited for a violation, including a person arrested for a second or subsequent violation under the bill, may provide proof that financial liability coverage was in effect at the time the person was stopped and the court must dismiss the citation or charge and assess costs to the person. A class “D” felony is punishable by confinement for no more than five years and a fine of at least $1,025 but not more than $10,245. The fine will be collected by the clerk of the district court and submitted to the state court administrator for distribution as provided in Code section 602.8108.
   Financial liability coverage is generally required to be in effect for every motor vehicle driven on Iowa highways. However, the requirement does not apply to vehicles owned by or leased to the United States, Iowa, or another state, or any political subdivision thereof; vehicles subject to Code section 325A.6 (motor carrier insurance); certain motor vehicles not subject to registration (Code section 321.18); a lienholder with a security interest in a motor vehicle that does not drive or move the vehicle; and motor vehicles owned by a motor vehicle dealer or wholesaler licensed pursuant to Code chapter 322.
   The bill makes organizational changes to Code section 321.20B.