SF 2088 (LSB 5412SV (3) 91)

SENATE FILE 2088

BY  COMMITTEE ON TRANSPORTATION

(SUCCESSOR TO SSB 3023)

A BILL FOR

An Act relating to the administration and regulation of matters associated with the operation, registration, and titling of motor vehicles, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
CHAUFFEUR’S INSTRUCTION PERMITS

    Section 1.  Section 321.1, subsection 20A, Code 2026, is amended to read as follows:
   20A.  “Driver’s license” means any license or permit issued to a person to operate a motor vehicle on the highways of this state, including but not limited to a restricted work, special minor’s restricted, temporary restricted, or temporary license and an instruction, chauffeur’s instruction, commercial learner’s, or temporary permit. For purposes of license suspension, revocation, bar, disqualification, cancellation, or denial under this chapter and chapters 321A, 321C, and 321J, “driver’s license” includes any privilege to operate a motor vehicle.
    Sec. 2.  Section 321.180, subsection 3, Code 2026, is amended by striking the subsection.
    Sec. 3.  Section 321.180, subsection 4, Code 2026, is amended to read as follows:
   4.  The instruction permit, chauffeur’s instruction permit, and commercial learner’s permit are subject to suspension or revocation for the same reasons and in the same manner as suspension or revocation of a driver’s license.
    Sec. 4.  Section 321.191, subsection 1, Code 2026, is amended to read as follows:
   1.  Instruction permits.  The fee for an instruction permit, other than a special instruction permit, chauffeur’s instruction permit, or commercial learner’s permit, is six dollars. The fee for a special instruction permit is ten dollars. The fee for a chauffeur’s instruction permit or commercial learner’s permit is twelve dollars.
    Sec. 5.  Section 321.196, subsection 1, Code 2026, is amended to read as follows:
   1.  Except as otherwise provided, if the licensee is between the ages of seventeen years eleven months and seventy-eight years on the date of issuance of the license, a driver’s license, other than an instruction permit, chauffeur’s instruction permit, or commercial learner’s permit issued under section 321.180, expires eight years from the licensee’s birthday anniversary occurring in the year of issuance, but not to exceed the licensee’s eightieth birthday. If the licensee is under the age of seventeen years eleven months or age seventy-eight or over, the license is effective for a period of two years from the licensee’s birthday anniversary occurring in the year of issuance. A licensee whose license is restricted due to vision or other physical deficiencies may be required to renew the license every two years. If a licensee is a foreign national who is temporarily present in this state, the license shall be issued only for the length of time the foreign national is authorized to be present as verified by the department, not to exceed two years.
    Sec. 6.  Section 321J.1, subsection 7, Code 2026, is amended to read as follows:
   7.  “Driver’s license” means any license or permit issued to a person to operate a motor vehicle on the highways of this state, including but not limited to a driver’s, commercial driver’s, temporary restricted, or temporary license and an instruction, chauffeur’s instruction, commercial learner’s, or temporary permit.
    Sec. 7.  Section 321M.1, subsection 5, Code 2026, is amended to read as follows:
   5.  “Driver’s license” means any license or permit issued to a person to operate a motor vehicle on the highways of this state, including but not limited to a driver’s, commercial driver’s, temporary restricted, or temporary license and an instruction, chauffeur’s instruction, commercial learner’s, or temporary permit.
    Sec. 8.  CHAUFFEUR’S INSTRUCTION PERMIT VALIDITY.  A chauffeur’s instruction permit issued before the effective date of this division of this Act shall remain valid until the expiration date listed on the permit. Until the expiration of the permit, the permittee may continue to operate a motor vehicle in accordance with section 321.180, subsection 3, Code 2026.
DIVISION II
MOTOR VEHICLE ACCIDENT REPORTS

    Sec. 9.  Section 321.266, subsections 2 and 3, Code 2026, are amended to read as follows:
   2.  The driver of a vehicle involved in an accident resulting in injury to or death of any person, or total property damage to an apparent extent of one five thousand five hundred dollars or more, or the driver of a vehicle involved in an accident regardless of injury, death, or property damage if the vehicle does not have financial liability coverage in effect, shall, submit a written report of the accident to the department within seventy-two hours after the accident, forward a written report of the accident to the department. However, such report is not required when the accident is investigated by a law enforcement agency.
   3.  Every law enforcement officer who, in the regular course of duty, investigates a motor vehicle accident of which report must be made as required in subsections 1 and 2, either at the time of and at the scene of the accident or thereafter by interviewing participants or witnesses, shall, within twenty-four hours after completing such investigation, forward submit a written report of such accident to the department.
    Sec. 10.  Section 321.271, subsections 1 and 2, Code 2026, are amended to read as follows:
   1.  All accident reports filed by a driver of a vehicle involved in an accident as required under section 321.266 shall be in writing.  The report must be in an electronic format and submitted in a manner approved by the department. The report shall be without prejudice to the individual so reporting and shall be for the confidential use of the department, except that upon the request of any person involved in the accident, the person’s insurance company or its agent, or the attorney for such person, the department shall disclose the identity and address of other persons involved in the accident and may disclose the name of the insurance companies with whom the other persons have liability insurance. The department, upon written request of the person making the report, shall provide the person with a copy of that person’s report. The written report filed with the department shall not be admissible in or used in evidence in any civil or criminal case arising out of the facts on which the report is based.
   2.  All written reports filed by a law enforcement officer as required under section 321.266, or by an officer’s or emergency responder’s employer under section 321.267A, shall be in writing. The report must be in an electronic format and submitted in a manner approved by the department. A report filed pursuant to section 321.266 shall be made available to any party to an accident, the party’s insurance company or its agent, the party’s attorney, the federal motor carrier safety administration, or the attorney general, on written request to the department and the payment of a fee of four dollars for each copy. If a copy of an investigating officer’s report of a motor vehicle accident filed with the department is retained by the law enforcement agency of the officer who filed the report, a copy shall be made available to any party to the accident, the party’s insurance company or its agent, the party’s attorney, the federal motor carrier safety administration, other law enforcement agencies, or the attorney general, on written request and the payment of a fee. However, the attorney general and the federal motor carrier safety administration shall not be required by the department or the law enforcement agency to pay a fee for a copy of a report filed by a law enforcement or investigating officer.
    Sec. 11.  Section 321A.5, subsection 1, Code 2026, is amended to read as follows:
   1.  The department shall, immediately or within sixty days after the receipt of a report of a motor vehicle accident within this state which has resulted in bodily injury or death to any person, or property damage to the property of any one person in the amount of one five thousand five hundred dollars or more, suspend the license of each operator and all registrations of each owner of a motor vehicle in any manner involved in the accident, and if the operator is a nonresident the privilege of operating a motor vehicle within this state, and if the owner is a nonresident the privilege of the use within this state of any motor vehicle owned by the owner, unless the operator or owner or both shall deposit security in a sum which shall be sufficient in the judgment of the department to satisfy any judgment or judgments for damages resulting from the accident as may be recovered against the operator or owner; provided notice of the suspension shall be sent by the department to the operator and owner not less than ten days prior to the effective date of the suspension and shall state the amount required as security.
    Sec. 12.  Section 321I.11, Code 2026, is amended to read as follows:
   321I.11  Accident reports.
   If an all-terrain vehicle is involved in an accident resulting in injury or death to anyone any person, or property damage amounting to one five thousand five hundred dollars or more, either the operator or someone acting for the operator shall immediately notify the county sheriff or another law enforcement agency in the state. If the accident occurred on public land, public ice, or a designated riding trail under the jurisdiction of the commission, the operator shall file with the commission a report of the accident, within seventy-two hours, containing information as the commission may require. All other accidents shall be reported as required under section 321.266.
DIVISION III
ELECTRONIC APPLICATIONS FOR DRIVER’S LICENSES AND NONOPERATOR’S IDENTIFICATION CARDS

    Sec. 13.  Section 321.189, subsection 3, Code 2026, is amended by striking the subsection.
    Sec. 14.  Section 321.190, Code 2026, is amended by adding the following new subsections:
   NEW SUBSECTION.  3.  Renewal.  A person may renew a nonoperator’s identification card and, if eligible pursuant to rules adopted by the department, may do so electronically. The department shall renew a nonoperator’s identification card upon payment of the required fee.
   NEW SUBSECTION.  4.  Rules.  The department shall adopt rules pursuant to chapter 17A to administer this section.
    Sec. 15.  Section 321.195, Code 2026, is amended to read as follows:
   321.195  Replacement of driver’s licenses and nonoperator’s identification cards.
   1.  A Prior to the expiration of a driver’s license or nonoperator’s identification card, a person may apply for a replacement, and may do so electronically if eligible pursuant to rules adopted by the department. The fee of ten dollars shall be charged for the replacement of a driver’s license or nonoperator’s identification card is ten dollars.
   2.  If a person’s driver’s license or nonoperator’s identification card contains inaccurate information, the person shall return the driver’s license or nonoperator’s identification card to the department and the department shall issue a replacement license or identification card, as applicable.
   3.  If a driver’s license or nonoperator’s identification card issued under this chapter is lost or destroyed, the person to whom the license or card was issued must furnish proof satisfactory to the department that the driver’s license or nonoperator’s identification card has been lost or destroyed in order to obtain a replacement.
   4.  The department shall adopt rules pursuant to chapter 17A to administer this section.
    Sec. 16.  APPLICABILITY.  This division of this Act applies on and after March 1, 2027, or the date the department of transportation submits to the Iowa administrative code editor for publication in the Iowa administrative bulletin a statement by the director of transportation that the applicable phase of the department of transportation’s new records system is implemented, whichever is earlier. The department shall also forward a copy of the statement to the Iowa Code editor.
DIVISION IV
RECORDS SYSTEM

    Sec. 17.  Section 321.1, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  059A.  “Records system” means the records system described in section 321.31.
    Sec. 18.  Section 321.24, subsections 2 and 9, Code 2026, are amended to read as follows:
   2.  The county treasurer shall maintain in the county record records system information contained on the registration receipt. The information shall be accessible by registration number and shall be open for public inspection during reasonable business hours. Copies Information the department requires shall be sent to the department in the manner and at the time the department directs.
   9.  The county treasurer or the department, as applicable, shall maintain in the county or department records system the information contained on the certificate of title and the name and address of the previous owner. The information must be accessible by title certificate number for a period of three years from the date of notification of cancellation of title or date that a new title has been issued as provided in this chapter. Copies Information the department requires shall be sent to the department in the manner and at the time the department directs. The department shall designate a uniform system of title numbers to indicate the county of issuance.
    Sec. 19.  Section 321.31, Code 2026, is amended to read as follows:
   321.31  Records system.

   A state and county records system shall be maintained in the following manner:

   1.  State records system.
   a.  The department shall install and maintain a records system which for use by the department and county treasurers. The records system must contain records of vehicle registrations and certificates of title, and information from those documents, including the registration certificate number, the dates of perfection and cancellation of security interests, as applicable, information from the registration receipt, any supporting documents, the name and address of the vehicle owner, current and previous registration number, vehicle identification number, make, model, style, date of purchase, registration certificate number, maximum gross weight, weight, list price or value of the vehicle as fixed by the department, fees paid, date of payment, and the name and address of the previous owner. The records system must contain records relating to the department’s duties under section 307.27.  The records system must may also contain a record of the certificate of title including such other information as the department deems necessary. The information to be kept in the records system shall be entered within forty-eight hours after receipt insofar as is practical practicable. The records system shall constitute constitutes the permanent record of ownership of each vehicle titled under the laws of this state.
   b.  2.  The department may make photostatic, microfilm, or other photographic copies, including electronic copies, of certificates of title, registration receipts, or other records, reports, or documents which are required to be retained by the department. When copies have been made, the department may destroy the original records in such manner as prescribed by the director. The photostatic, microfilm, or other photographic copies, when no longer of use, may be destroyed in the manner prescribed by the director, subject to the approval of the state records commission. Photostatic, microfilm, or other photographic copies Copies of records shall be admissible in evidence when duly certified and authenticated by the officer having custody and control of the copies of records. Records of vehicle certificates of title may be destroyed seven years after the date of issue or five years after the date of issuance if the vehicle’s registration has been delinquent for five or more consecutive years.
   c.  3.  The director shall maintain a in the records system a record of delinquent accounts owed to the state using information provided through the computerized data bank established in section 421.17. The department and county treasurers shall use the information maintained in the records system to determine if applicants for renewal of registration have delinquent accounts, charges, fees, loans, taxes, or other indebtedness owed to or being collected by the state as provided pursuant to section 421.65. The director and the director of revenue shall establish procedures for updating the delinquent accounts records to add and remove accounts, as applicable.
   2.  County records system.
   a.  Each county treasurer’s office shall maintain a county records system for vehicle registration and certificate of title documents. The records system must consist of information from the certificate of title, including the date of perfection and cancellation of security interests, information from the registration receipt, and the name and address of the previous owner. The information shall be maintained in a manner approved by the department.
   b.  Records of vehicle certificates of title for vehicles that are delinquent for five or more consecutive years may be destroyed by the county treasurer. Automated files, optical disks, microfiche records, and photostatic, microfilm or other photographic copies of records shall be admissible in evidence when duly certified and authenticated by the officer having custody and control of the records.
    Sec. 20.  Section 321.40, subsections 4, 6, 7, and 8, Code 2026, are amended to read as follows:
   4.  The county treasurer shall refuse to renew the registration of a vehicle registered to a person when notified by the department through the distributed teleprocessing network records system that the person has not paid restitution as defined under section 910.1, subsection 10, to a clerk of the court located within the state. Each clerk of court shall, on a daily basis, notify the department through the Iowa court information system of the full name and social security number of all persons who owe delinquent restitution and whose restitution obligation has been satisfied or canceled. This subsection does not apply to the transfer of a registration or the issuance of a new registration.
   6.  a.  The department or the county treasurer shall refuse to renew the registration of a vehicle registered to the applicant if the department or the county treasurer knows that the applicant has a delinquent account, charge, fee, loan, taxes, or other indebtedness owed to or being collected by the state, from information provided pursuant to sections 421.17 and 421.65. An applicant may contest this action by initiating a contested case proceeding with the agency that referred the debt for collection pursuant to section 421.65. The department of revenue and the department of transportation shall notify the county treasurers through the distributed teleprocessing network records system of persons who owe such a delinquent account, charge, fee, loan, taxes, or other indebtedness.
   b.  A county treasurer, in cooperation with the department of revenue, may collect from a person applying for renewal of a vehicle registration delinquent taxes, including penalties and interest owed to the state, and nontax liabilities being collected by the central collection unit of the department of revenue pursuant to section 421.17, subsection 27. The applicant may remit full payment of the balance owed including applicable penalties and interest, along with a processing fee of five dollars, to the county treasurer at the time of registration renewal. Upon full payment of the required balance owed including applicable penalties and interest, the processing fee, and the vehicle registration fee, the county treasurer shall issue the registration to the person. A county treasurer collecting on behalf of the department of revenue shall update the vehicle registration records through the distributed teleprocessing network records system on a daily basis for all persons who have paid taxes or other balances owed pursuant to this subsection. A county treasurer shall forward all funds collected for the department of revenue to the department of revenue. 
   7.  a.  The department or the county treasurer shall refuse to renew the registration of a vehicle registered to an applicant if the department or the county treasurer knows that the applicant has not paid a civil penalty imposed on the applicant pursuant to section 321N.3, subsection 3. An applicant may contest this action by initiating a contested case proceeding with the department. The department shall notify the county treasurers through the distributed teleprocessing network records system of persons who have not paid such civil penalties.
   b.  The county treasurer of the county of an applicant’s residence and in which the applicant’s vehicle is registered, in cooperation with the department, may collect a civil penalty imposed on the applicant pursuant to section 321N.3, subsection 3, when the applicant applies for renewal of a vehicle registration. The applicant may remit full payment of the civil penalty, along with a processing fee of five dollars, to the county treasurer at the time of registration renewal. Upon full payment of the civil penalty, the processing fee, and the vehicle registration fee, the county treasurer shall issue the registration to the applicant. A county treasurer collecting a civil penalty on behalf of the department pursuant to this subsection shall update the vehicle registration records through the distributed teleprocessing network records system on a daily basis for all applicants who have paid civil penalties pursuant to this subsection. A county treasurer shall forward all funds collected on behalf of the department to the department.
   8.  The county treasurer shall refuse to renew the registration of a vehicle registered to an applicant if the county treasurer knows that the applicant has one or more uncontested, delinquent parking tickets issued pursuant to section 321.236, subsection 1, paragraph “b”, owing to the county, or owing to a city with which the county has an agreement authorized under section 331.553. However, a county treasurer may renew the registration if the treasurer determines that an error was made by the county or city in identifying the vehicle involved in the parking violation or if the citation has been dismissed as against the owner of the vehicle pursuant to section 321.484. This subsection does not apply to the transfer of a registration or the issuance of a new registration. Notwithstanding section 28E.10, a county treasurer may shall utilize the department’s vehicle registration and titling records system to facilitate the purposes of this subsection.
    Sec. 21.  Section 321.46, subsections 2 and 5, Code 2026, are amended to read as follows:
   2.  Upon filing the application for a new initial registration and a new title, the applicant shall pay a title fee of thirty dollars, an annual registration fee prorated for the remaining unexpired months of the registration year, and a fee for new registration if applicable. A manufacturer applying for a certificate of title pursuant to section 322G.12 shall pay a title fee of twenty dollars. However, a title fee shall not be charged to a manufactured or mobile home retailer applying for a certificate of title for a used mobile home or manufactured home, titled in Iowa, as required under section 321.45, subsection 4. The county treasurer, if satisfied of the genuineness and regularity of the application, and in the case of a mobile home or manufactured home, that taxes are not owing under chapter 435, and that applicant has complied with all the requirements of this chapter, shall issue a new certificate of title and, except for a mobile home, manufactured home, or a vehicle returned to and accepted by a manufacturer as described in section 322G.12, a registration card to the purchaser or transferee, shall cancel the prior registration for the vehicle, and shall forward the necessary copies to the department use the records system to update the necessary information on the date of issuance, as prescribed in section 321.24. Mobile homes or manufactured homes titled under chapter 448 that have been subject under section 446.18 to a public bidder sale in a county shall be titled in the county’s name, with no fee, and the county treasurer shall issue the title.
   5.  The seller or transferor may file an affidavit on forms prescribed and provided by the department with any county treasurer certifying the sale or transfer of ownership of the vehicle and the assignment and delivery of the certificate of title for the vehicle. Upon receipt of the affidavit, the county treasurer shall file the affidavit with the copy of the registration receipt for the vehicle on file in the treasurer’s office and on that day the treasurer shall note receipt of the affidavit in the vehicle registration and titling records system. Upon filing the affidavit, it shall be presumed that the seller or transferor has assigned and delivered the certificate of title for the vehicle. For a leased vehicle, the lessor licensed pursuant to chapter 321F or the lessee may file an affidavit as provided in this subsection certifying that the lease has expired or been terminated and the date that the leased vehicle was surrendered to the lessor.
    Sec. 22.  Section 321.47, subsection 2, paragraph a, Code 2026, is amended to read as follows:
   a.  The persons entitled under the laws of descent and distribution to the possession and ownership of a vehicle owned in whole or in part by a decedent who died intestate, upon filing an affidavit stating the name and date of death of the decedent, the right to possession and ownership of the persons filing the affidavit, and that there has been no administration of the decedent’s estate, which instrument must also contain an agreement by the affiant to indemnify creditors of the decedent who would be entitled to levy execution upon the motor vehicle to the extent of the value of the motor vehicle, shall, upon complying with the other title transfer requirements of this chapter, be issued a registration card for the decedent’s interest in the vehicle and a certificate of title to the vehicle. If a decedent died testate, and either the will is not probated or is admitted to probate without administration, the persons entitled to the possession and ownership of a vehicle owned in whole or in part by the decedent may file an affidavit and, upon complying with the other title transfer requirements of this chapter, shall be issued a registration card for the decedent’s interest in the vehicle and a certificate of title to the vehicle. The affidavit must contain the same information and indemnity agreement as is required in cases of intestacy under this subsection. For a death occurring before January 1, 2025, a requirement of chapter 450 shall not be considered satisfied by the filing of the affidavit provided for in this subsection. If, from upon review of the records in the office of the county treasurer system, there appear to be any liens on the vehicle, the certificate of title must contain a statement of the liens unless the application is accompanied by proper evidence of the satisfaction or extinction of such liens. Evidence of extinction includes but is not limited to an affidavit of the applicant stating that a security interest was foreclosed as provided in chapter 554, article 9, part 6. The department shall waive the certificate of title fee and surcharge required under sections 321.20, 321.20A, 321.23, 321.46, 321.52, and 321.52A if the person entitled to possession and ownership of a vehicle, as provided in this subsection, is the surviving spouse of a decedent.
    Sec. 23.  Section 321.50, subsections 3, 5, and 6, Code 2026, are amended to read as follows:
   3.  Upon receipt of the application, the certificate of title, if any, and the required fee, the county treasurer shall note the security interest and the date of perfection of the security interest on the certificate of title. The county treasurer shall also note the security interest and the date of perfection of the security interest in the county records system. Upon receipt of a certificate of title issued by a foreign jurisdiction, on which a security interest has been noted, the county treasurer shall note the security interest and the date the security interest was noted on the foreign certificate of title, if available, or if not, the date of issuance of the foreign certificate of title, on the face of the new certificate of title. The county treasurer shall also note the security interest and the date that was noted on the certificate of title in the county records system. The county treasurer shall then deliver the certificate of title to the first secured party as shown thereon.
   5.  a.  Except as provided in section 321.48, subsection 1, paragraph “b”, when a security interest is discharged, the holder shall note a cancellation of the security interest on the face of the certificate of title over the holder’s signature or may note the cancellation of the security interest on a separate, notarized release form or letter. The holder shall deliver the certificate of title and the form or letter, if applicable, to any county treasurer. In the case of a security interest that has been delivered by electronic means, the holder shall notify the department or the county treasurer, in a manner prescribed by the department, of the release of the security interest. The county treasurer shall immediately note the cancellation of the security interest on the face of the certificate of title, if applicable, and in the county records system. The county treasurer shall on the same day deliver the certificate of title, if applicable, and the separate, notarized release form or letter, if applicable, to the then first secured party or, if there is no such person, to the person as directed by the owner, in writing, on a form prescribed by the department or, if there is no person designated, then to the owner. The cancellation of the security interest shall be noted on the certificate of title by the county treasurer without charge. The holder of a security interest discharged by payment who fails to release the security interest within fifteen days after being requested in writing to do so shall forfeit to the person making the payment the sum of twenty-five dollars.
   b.  If a lien has been released by the lienholder but has not been sent to the county of record for clearance of the lien, any county may note the release on the face of the title and shall notify the county of record that the lien has been released as of the specified date and make entry upon the computer records system. Notification to the county of record shall be made by an automated statewide in the records system or by sending a photocopy of the released title to the county of record.
   c.  When a security interest is discharged, the lienholder shall note the cancellation of the security interest on the face of the title and, if applicable, may note the cancellation of the security interest on a form prescribed by the department and deliver a copy of the form in lieu of the title to the department or to any county treasurer. The form may be delivered by electronic means. The department or county treasurer, as applicable, shall note the release of the security interest upon in the statewide computer records system and the county’s records. A copy of the form, if used, shall be attached to the title by the lienholder, if the title is held by the lienholder, and shall be evidence of the release of the security interest. If the title is held by the lienholder, the lienholder shall deliver the title to the first lienholder, or if there is no such person, to the person as designated by the owner, or if there is no such person designated, to the owner. If a certificate of title has not been issued, upon release of a security interest, the lienholder shall notify the department or the county treasurer, in a manner prescribed by the department, of the release of the security interest.
   d.  For purposes of this subsection, a security interest noted on an Iowa certificate of title and appearing in the statewide computer records system and the county’s records shall be presumed to be discharged upon presentation of a valid certificate of title subsequently issued by a foreign jurisdiction on which the security interest is no longer noted.
   6.  Notwithstanding subsection 5, when an application for registration and issuance of a certificate of title is made by the means described in section 321.20, subsection 2, and the application includes a certificate of title upon which a security interest has been discharged by the secured party and the cancellation of the security interest is noted by the secured party on the certificate of title above the secured party’s signature, the county treasurer shall not require any other notation of the cancellation of the security interest on the face of the certificate of title, and the county treasurer shall update such release on the applicable program or computer records system. A dealer licensed under chapter 322 or chapter 322C is authorized to sell such a vehicle pursuant to section 321.48, subsection 1, paragraph “b”.
    Sec. 24.  Section 321.153, subsection 2, Code 2026, is amended to read as follows:
   2.  The distributed teleprocessing network records system shall be used in the collection, receipting, accounting, and reporting of any fee collected through the registration renewal or title process, with sufficient time and financial resources provided for implementation.
    Sec. 25.  Section 321.198, subsection 3, Code 2026, is amended to read as follows:
   3.  A person whose period of validity of the person’s driver’s license is extended under this section may file an application in accordance with rules adopted by the department to have the person’s record of issuance of a driver’s license retained in the department’s record records system during the period for which the driver’s license remains valid. If a person has had the record of issuance of the person’s driver’s license removed from the department’s records system, the person shall have the person’s record of driver’s license issuance reentered by the department upon request if the request is accompanied by a letter from the applicable person’s commanding officer verifying the military service.
    Sec. 26.  Section 331.553, subsection 8, Code 2026, is amended to read as follows:
   8.  Pursuant to an agreement under chapter 28E, collect delinquent parking fines on behalf of a city in conjunction with renewal of motor vehicle registrations pursuant to section 321.40. If the agreement provides for a fee to be paid to or retained by the county treasurer from the collection of parking fines, such fees shall be credited to the county general fund. Fines collected pursuant to this subsection shall be remitted biannually to the city. Notwithstanding section 28E.10, a county treasurer may shall utilize the state department of transportation’s vehicle registration and titling records system described in section 321.31 to facilitate the purposes of this subsection.
    Sec. 27.  TRANSITION.  County treasurers shall continue to perform all duties related to the county records system described in section 321.31, subsection 2, Code 2026, and shall retain and maintain the records contained in the county records system prior to the applicability of this division of this Act.
    Sec. 28.  APPLICABILITY.  This division of this Act applies on and after December 1, 2028, or the date the department of transportation submits to the Iowa administrative code editor for publication in the Iowa administrative bulletin a statement by the director of transportation that the applicable phase of the department of transportation’s new records system is implemented, whichever is earlier. The department shall also forward a copy of the statement to the Iowa Code editor.
DIVISION V
ELECTRONIC COMMUNICATIONS

    Sec. 29.  Section 321.11, subsections 2 and 4, Code 2026, are amended to read as follows:
   2.  Notwithstanding subsection 1, personal information shall not be disclosed to a requester, except as provided in 18 U.S.C. §2721, unless the person whose personal information is requested has provided express written consent allowing disclosure of the person’s personal information. As used in this section, “personal information” means information that identifies a person, including a person’s photograph, social security number, driver’s license number, name, address, telephone number, electronic mail address, and medical or disability information, but does not include information on vehicular accidents, driving violations, and driver’s status or a person’s zip code.
   4.  The department shall not release personal information that is in the form of a person’s photograph or digital image or a digital reproduction of a person’s photograph, or the person’s telephone number or electronic mail address, to a person other than an officer or employee of a law enforcement agency, an employee of a federal or state agency or political subdivision in the performance of the employee’s official duties, a contract employee of the department of inspections, appeals, and licensing in the conduct of an investigation, or a licensed private investigation agency or a licensed security service or a licensed employee of either, regardless of whether a person has provided express written consent to disclosure of the information. The department may collect reasonable fees for copies of records or other services provided pursuant to this section or section 22.3, 321.10, or 622.46.
    Sec. 30.  NEW SECTION.  321.16A  Electronic communications.
   1.  As used in this section:
   a.  “Document” means information that the department is required or authorized to provide to a person, and that is eligible, as determined by the department, to be delivered by electronic communication. “Document” includes but is not limited to a notification, reminder, or other piece of correspondence, other than a notice of a sanction.
   b.  “Electronic communication” means a document provided electronically by the department and includes any of the following:
   (1)  Sending a document to an electronic mail address or telephone number at which the recipient has specifically given consent to receive documents.
   (2)  Posting a document on an electronic network provided by the department that is accessible via the internet, a mobile application, computer, mobile device, tablet, or any other electronic device, or on the department’s internet site, along with a separate electronic mail notification of the posting sent to the address at which the recipient has consented to receive notification or by any other delivery method to which the recipient has given consent.
   c.  “Notice of a sanction” means notice of bar, cancellation, denial, disqualification, downgrade, revocation, or suspension delivered by the department under this chapter or chapter 321A, 321E, 321F, 321H, 321J, 321L, 321N, 322, 322A, 322C, 325A, 326, 327B, or 452A.
   d.  “Recipient” means a person who receives electronic communication from the department under this chapter or chapter 321A, 321E, 321F, 321H, 321J, 321L, 321N, 322, 322A, 322C, 325A, 326, 327B, or 452A.
   2.  a.  Subject to the requirements and limitations of this section and except as expressly prohibited by law, the department may use electronic communication to deliver a document, other than a notice of a sanction, to a recipient. The department may also use electronic means to store and present a document delivered by electronic communication.
   b.  The department may use electronic communication to deliver a document to a recipient if all of the following occur:
   (1)  The recipient has affirmatively consented to such method of delivery and has not withdrawn the consent.
   (2)  The recipient, before giving consent, is provided with clear and conspicuous information concerning the rights of the recipient and additional information, in accordance with rules adopted by the department pursuant to chapter 17A, including the use and protection of the recipient’s personal information, as defined in section 321.11.
   (3)  The recipient consents, or confirms consent, to receive electronic communication in a manner that reasonably demonstrates that the recipient can access electronic communications in the method that the department will use for electronic communications.
   3.  The department shall not use electronic communication to deliver notice of a sanction. Notice of a sanction must be delivered in accordance with section 321.16. This subsection does not prohibit the department from using electronic communication to send a courtesy copy of a notice of a sanction by electronic means if the recipient has consented to receive courtesy copies of a notice of a sanction, and if the copy is available for electronic communication.
   4.  This section does not affect requirements of content or timing of any notice or document required under applicable law.
   5.  a.  A withdrawal of consent by a recipient does not affect the legal effectiveness, validity, or enforceability of a document delivered by electronic communication to the recipient prior to the withdrawal of consent.
   b.  A withdrawal of consent is effective within a reasonable period of time after the department receives notice of the withdrawal.
   6.  This section does not apply to a document electronically delivered by the department prior to the effective date of this division of this Act if, before the effective date of this division of this Act, the recipient received or consented to receive a document in an electronic form otherwise allowed by law.
   7.  The department may deliver a document by any other delivery method permitted by law other than by electronic communication if either of the following occurs:
   a.  The department attempted to use electronic communication to deliver a document to a recipient and has a reasonable basis for believing that the document has not been received.
   b.  The department becomes aware that the electronic mail address or telephone number provided by the recipient is no longer valid.
   8.  The department is authorized to collect telephone numbers and electronic mail addresses on any department application. Telephone numbers and electronic mail addresses collected pursuant to this subsection shall be used and disclosed only as authorized under this section or section 321.11.
   9.  The department’s use of a recipient’s telephone number or electronic mail address for electronic communication shall not constitute a disclosure under section 321.11.
   10.  The department shall adopt rules pursuant to chapter 17A to administer this section.
    Sec. 31.  APPLICABILITY.  This division of this Act applies on and after December 1, 2028, or the date the department of transportation submits to the Iowa administrative code editor for publication in the Iowa administrative bulletin a statement by the director of transportation that the department of transportation’s electronic communications system is implemented, whichever is earlier. The department shall also forward a copy of the statement to the Iowa Code editor.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the administration and regulation of matters associated with the operation, registration, and titling of motor vehicles.
   CHAUFFEUR’S INSTRUCTION PERMITS. Under current law, a chauffeur’s instruction permit is valid for up to two years for the operation of a motor vehicle, other than a commercial motor vehicle, as a chauffeur when the permittee is accompanied by a person who possesses a valid class D driver’s license (chauffeur’s license) or commercial driver’s license and who is occupying a seat beside the permittee. Code section 321.1 defines a chauffeur as a person who operates a motor vehicle, including a school bus, to transport people for pay, with various exceptions. 
   The bill eliminates the chauffeur’s instruction permit. Under current law and the bill, a person may apply for a class D driver’s license, and neither a knowledge test nor a driving test is required if the person holds a valid driver’s license. The person must pass a vision screening and have a clear driving record for the previous two years.
   MOTOR VEHICLE ACCIDENT REPORTS. Under current law, the driver of a vehicle involved in an accident resulting in injury to or death of any person, or total property damage to an apparent extent of $1,500 or more, must within 72 hours after the accident forward a written report of the accident to the department of transportation (DOT). However, such report is not required when the accident is investigated by a law enforcement agency. Every law enforcement officer who, in the regular course of duty, investigates a motor vehicle accident of which report must be made, must forward a written report of such accident to the DOT within 24 hours after completing such investigation. 
   The bill requires the driver of a vehicle to submit an accident report regardless of injury, death, or property damage if the vehicle does not have financial liability coverage in effect. The bill also increases the minimum amount of total property damage necessary before an accident report is required from $1,500 to $5,000, including for an accident involving an all-terrain vehicle. The bill strikes the 24-hour requirement for a law enforcement officer who investigated an accident to forward a written report to the DOT, and requires these written reports, as well as reports of accidents involving law enforcement officers or other emergency responders, to be submitted to the DOT in an electronic format and in a manner approved by the DOT.
   By operation of law, a driver of a vehicle who strikes fixtures upon a highway is not required to report the accident to the DOT unless the apparent total property damage is $5,000 or more. A driver involved in such an accident is required to take reasonable steps to locate and notify the owner, a peace officer, or person in charge of the damaged property and provide the driver’s name and address, the registration number of the vehicle causing the damage, and, upon request and if available, exhibit the person’s driver’s license.
   The bill does not amend similar reporting requirements when a person is in an accident involving a snowmobile (Code section 321G.10) that causes total property damage of $1,500 or more. Such reports must be filed with the DOT, or with the natural resource commission (NRC) if the accident occurred on public land, ice, or a designated riding trail under the jurisdiction of the NRC.
   By operation of law, a person who fails to forward a written accident report to the DOT, as required under Code section 321.266(2) or (3), commits a simple misdemeanor punishable by confinement for no more than 30 days and a fine of at least $105 but not more than $855.
   ELECTRONIC APPLICATIONS FOR DRIVER’S LICENSES AND NONOPERATOR’S IDENTIFICATION CARDS. Under current law, a person may be eligible to renew a driver’s license electronically pursuant to rules adopted by the DOT. The bill authorizes a person to renew a nonoperator’s identification card electronically if the person is eligible pursuant to rules adopted by the DOT. The bill also authorizes a person to replace a driver’s license or nonoperator’s identification card electronically if the person is eligible pursuant to rules adopted by the DOT. The fee to replace a driver’s license or nonoperator’s identification card is $10. 
   The DOT is currently required, pursuant to Code section 321.189(6), to develop educational media to raise awareness of a person’s eligibility to apply for a replacement driver’s license or nonoperator’s identification card electronically upon attaining the age of 21.
   This division of the bill applies on and after March 1, 2027, or the date the DOT submits to the Iowa administrative code editor for publication in the Iowa administrative bulletin a statement by the director of transportation that the applicable phase of the DOT’s new records system is implemented, whichever is earlier. The DOT is also required to forward a copy of the statement to the Iowa Code editor.
   RECORDS SYSTEM. Pursuant to current law, the DOT maintains a motor vehicle records system which is used for various purposes relating to the administration of Code chapter 321 by the DOT.  In addition, each county treasurer must maintain a county records system for vehicle registration and certificate of title documents. The county records system is required to be maintained in a manner approved by the DOT. The bill strikes the requirement for county treasurers to maintain a county records system, and instead requires the DOT to maintain a records system that both the DOT and county treasurers must use for vehicle-related recordkeeping. The bill harmonizes various references in Code chapters 321 (motor vehicles and law of the road) and 331 (county home rule implementation) to the records system.
   County treasurers are required to continue to perform all duties related to the county records system prior to the applicability of this division of the bill.
   This division of the bill applies on and after December 1, 2028, or the date the DOT submits to the Iowa administrative code editor for publication in the Iowa administrative bulletin a statement by the director of transportation that the applicable phase of the DOT’s new records system is implemented, whichever is earlier. The DOT is also required to forward a copy of the statement to the Iowa Code editor.
   ELECTRONIC COMMUNICATIONS. The bill adds a person’s electronic mail address to the definition of “personal information” for purposes of DOT records, and prohibits the DOT from disclosing a person’s electronic mail address or telephone number, other than to specified parties, regardless of the person’s consent to the disclosure.
   The bill authorizes the DOT to communicate using electronic methods to provide documents including notifications, reminders, and other pieces of correspondence, other than a notice of a sanction, to persons who consent to the electronic communication. In accordance with current law, unless a different method of giving notice is expressly prescribed, the DOT must give notice, including notice of a sanction under the bill, by personal delivery to the person, by personal service in the manner of original notice by rule of civil procedure, or by first class mail addressed to the person at the address shown in the DOT’s records.
   This division of the bill applies on and after December 1, 2028, or the date the DOT submits to the Iowa administrative code editor for publication in the Iowa administrative bulletin a statement by the director of transportation that the DOT’s new electronic communications system is implemented, whichever is earlier. The DOT is also required to forward a copy of the statement to the Iowa Code editor.