House File 2183 - IntroducedA Bill ForAn Act 1relating to motor vehicle insurance, including requiring
2owners of registered motor vehicles to maintain financial
3liability coverage, establishing a motor vehicle insurance
4verification database, authorizing the use of automated
5registration plate reader systems, and authorizing county
6enforcement and diversion programs, establishing fees,
7providing penalties, and including effective date and
8applicability provisions.
9BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 321.11, subsection 3, Code 2020, is
2amended to read as follows:
   33.  Notwithstanding other provisions of this section to the
4contrary, the department shall not release personal information
5to a person, other than to an officer or employee of a law
6enforcement agency, an employee of a federal or state agency
7or political subdivision in the performance of the employee’s
8official duties, a contract employee of the department of
9inspections and appeals in the conduct of an investigation, or
10a licensed private investigation agency or a licensed security
11service or a licensed employee of either, if the information is
12requested by the presentation of a registration plate number.
 13However, the department may release personal information to the
14department’s designated agent for the purposes of chapter 321B.

15 In addition, an officer or employee of a law enforcement agency
16may release the name, address, and telephone number of a motor
17vehicle registrant to a person requesting the information by
18the presentation of a registration plate number if the officer
19or employee of the law enforcement agency believes that the
20release of the information is necessary in the performance of
21the officer’s or employee’s duties.
22   Sec. 2.  Section 321.20B, subsection 1, paragraphs a and c,
23Code 2020, are amended to read as follows:
   24a.  (1)  Notwithstanding chapter 321A, which requires
25certain persons to maintain proof of financial responsibility,
26a person shall not drive a motor vehicle on the highways of
27this state unless financial liability coverage, as defined
28in section 321.1, subsection 24B,
is in effect for the motor
29vehicle and unless the driver has in the motor vehicle the
30proof of financial liability coverage card issued for the motor
31vehicle, or if the vehicle is registered in another state,
32other evidence that financial liability coverage is in effect
33for the motor vehicle. A proof of financial liability coverage
34card may be produced in paper or electronic format. Acceptable
35electronic formats include electronic images displayed on a
-1-1cellular telephone or any other portable electronic device that
2has a display screen with touch input or a miniature keyboard.
   3(2)  Notwithstanding chapter 321A, which requires certain
4persons to maintain proof of financial responsibility, the
5owner of any motor vehicle registered under this chapter shall
6maintain financial liability coverage for the vehicle.
   7c.  This subsection does not apply to the owner or operator
8of a motor vehicle owned by or leased to the United States,
9this state or another state, or any political subdivision of
10this state or of another state, or to a motor vehicle which is
11subject to section 325A.6.
12   Sec. 3.  NEW SECTION.  321B.1  Definitions.
   13As used in this chapter, unless the context otherwise
14requires:
   151.  “Advisory council” means the group established pursuant
16to section 321B.2, subsection 2.
   172.  “Automatic registration plate reader system” means
18a system of one or more fixed or mobile cameras that uses
19computer algorithms to convert images of motor vehicle
20registration plates into computer-readable data.
   213.  “Database” means the motor vehicle insurance verification
22database created under this chapter.
   234.  “Department” means the state department of
24transportation.
   255.  “Designated agent” means the position or positions
26designated within the department or the third party with which
27the department contracts under section 321B.2.
   286.  “Financial institution” means financial institution as
29defined in 18 U.S.C.§20.
   307.  “Motor vehicle” means the same as defined in section
31321.1.
   328.  “Peace officer” means the same as defined in section
33321.1.
   349.  “Real-time internet services model” means an electronic
35service established by insurers through the internet, the
-2-1world wide web, or a similar proprietary or common carrier
2electronic system that complies with the specifications and
3standards of the insurance industry committee on motor vehicle
4administration and that is available twenty-four hours per
5day, seven days per week, subject to reasonable allowances for
6scheduled maintenance or temporary system failures.
7   Sec. 4.  NEW SECTION.  321B.2  Motor vehicle insurance
8verification program — advisory council.
   91.  A motor vehicle insurance verification program is
10created within the department to be administered by the
11department. The purposes of the program include all of the
12following:
   13a.  To establish a motor vehicle insurance verification
14database to verify compliance with the requirements of section
15321.20B.
   16b.  To assist in reducing the number of uninsured motor
17vehicles on the highways of the state.
   18c.  To assist in increasing compliance with motor vehicle
19insurance requirements and for other law enforcement purposes.
   20d.  To assist in protecting the bona fide security interests
21of financial institutions in motor vehicles.
   222.  a.  The department of transportation shall establish an
23advisory council, chaired by the director of the department or
24a representative of the department appointed by the director,
25consisting of six members including the director of the
26department or the representative of the department appointed
27by the director, a representative of the department of public
28safety, an insurance company representative appointed by the
29commissioner of insurance, an insurance agent appointed by
30the commissioner of insurance, a representative of a trade
31association of property and casualty insurers appointed by the
32commissioner of insurance, and a representative of a vendor
33with experience implementing real-time internet services
34models and databases similar to the database created under
35this chapter appointed by the director of the department of
-3-1transportation.
   2b.  The advisory council shall do all of the following:
   3(1)  Make recommendations to the department on the best
4methods and practices for implementing a real-time internet
5services model for insurance verification.
   6(2)  Assist in the development of a guide for insurers
7detailing the data fields and other information necessary for
8compliance with this chapter.
   9(3)  Provide an annual report to the department detailing the
10improvements and implementation efforts relating to insurance
11verification in other states for consideration in improving
12compliance and operations in this state.
   133.  The department shall either designate a position or
14positions within the department or, following the competitive
15bidding procedures as provided in chapter 8A, subchapter III,
16shall contract with a third party, to act as the department’s
17designated agent for administration of this chapter. The
18designated agent shall establish and maintain a computer
19database containing all of the following information:
   20a.  Information provided by insurers under section 321B.3.
   21b.  Information provided by the department under subsection
226.
   23c.  Information obtained using a real-time internet services
24model.
   25d.  Any other information provided by the department pursuant
26to this chapter.
   274.  The database shall be developed and maintained, and
28access to a real-time internet services model shall be
29provided, in accordance with guidelines established by the
30department by rule to allow authorized state and local law
31enforcement agencies and financial institutions to efficiently
32access the records of the database and real-time internet
33services model, including reports useful for the implementation
34of this chapter, twenty-four hours per day, seven days
35per week, subject to reasonable allowances for scheduled
-4-1maintenance or temporary system failures.
   2a.  Database reports shall be in a form and contain
3information approved by the department.
   4b.  Database reports may be made available through the
5department’s internet site or through other electronic media
6if the department determines that sufficient security is
7provided to ensure compliance with the provisions of this
8chapter regarding limitations on disclosure of information in
9the database.
   10c.  The department shall consult with the chief information
11officer appointed under section 8B.2 for the purpose of
12developing network security requirements for the database.
   135.  At least twice monthly, the designated agent shall do all
14of the following, using information provided by the department:
   15a.  Update the database with motor vehicle insurance
16information provided by insurers in accordance with section
17321B.3.
   18b.  Compare all current motor vehicle registrations against
19the database. If records in the database indicate that a
20registered motor vehicle is not covered under an owner’s
21policy of liability insurance, the designated agent shall
22use a real-time internet services model to determine if the
23registered motor vehicle is covered under an owner’s policy of
24liability insurance.
   256.  On or before the seventh day of each calendar month, the
26department shall provide the designated agent with the make,
27model, year, and vehicle identification number of each vehicle
28in the department’s motor vehicle database, and the name and
29address of each person listed on each vehicle’s registration.
   307.  The department shall adopt rules in accordance with
31chapter 17A establishing procedures for access to and the use
32of the department’s motor vehicle database for the purposes of
33administering and enforcing this chapter.
   348.  a.  The designated agent shall archive database files at
35least semiannually for auditing purposes.
-5-
   1b.  The department shall audit the program at least annually.
2The audit shall include verification of:
   3(1)  Billings made by the designated agent, if any.
   4(2)  The accuracy of the designated agent’s matching of
5vehicle registration records with insurance data.
6   Sec. 5.  NEW SECTION.  321B.3  Motor vehicle insurance
7reporting by insurers — penalty.
   81.  a.  Except as provided in paragraph “b”, each insurer
9that issues a policy to a motor vehicle owner in this state
10that includes motor vehicle liability coverage, uninsured
11motorist coverage, underinsured motorist coverage, or
12personal injury coverage shall, on or before the seventh
13and twenty-first days of each calendar month, submit to the
14department’s designated agent a record of each motor vehicle
15insurance policy that was issued by the insurer and in effect
16for a vehicle registered or garaged in this state as of the
17date of the previous submission.
   18b.  An insurer is not required to provide a record of a motor
19vehicle insurance policy under paragraph “a” if the policy
20covers a vehicle that is registered under chapter 326.
   21c.  This subsection does not preclude more frequent
22reporting.
   232.  A record provided by an insurer under subsection 1,
24paragraph “a”, shall include all of the following:
   25a.  The name, date of birth, and driver’s license number, if
26the insured provides a driver’s license number to the insurer,
27of each insured owner or operator, and the address of the named
28insured.
   29b.  The make, year, and vehicle identification number of each
30insured vehicle.
   31c.  The policy number and effective date of each policy.
   323.  An insurer shall provide the information required under
33this section via electronic means or via another means the
34designated agent agrees to accept.
   354.  a.  The department may assess a civil penalty of not more
-6-1than two hundred fifty dollars for each day an insurer fails to
2comply with this section.
   3b.  If an insurer shows that the failure to comply with this
4section was inadvertent, accidental, or the result of excusable
5neglect, the department may waive the civil penalty.
   6c.  An insurer that discloses records to the department’s
7designated agent in a reasonable, good-faith effort to comply
8with the requirements of this section shall not be subject to a
9civil penalty under paragraph “a”.
10   Sec. 6.  NEW SECTION.  321B.4  Disclosure of database
11information — penalty.
   121.  Information provided to the designated agent and
13information contained in the database under this chapter are
14confidential and subject to the provisions and penalties of 18
15U.S.C. §2721. Such information shall not be disclosed, except
16as follows:
   17a.  For the purpose of investigating, litigating, or
18enforcing the financial liability coverage requirements
19of section 321.20B, the designated agent shall provide an
20electronic record to a state or local government agency or
21court verifying motor vehicle financial liability coverage
22information.
   23b.  For the purpose of investigating, litigating, or
24enforcing the financial liability coverage requirements of
25section 321.20B, the designated agent shall, upon request,
26issue to any state or local government agency or court a
27certificate documenting motor vehicle financial liability
28coverage, according to the database, of a specific individual
29or motor vehicle for the time period designated by the
30government agency or court.
   31c.  Upon request, the department or its designated agent
32shall disclose whether an individual is covered under a motor
33vehicle insurance policy, proof of the insurance coverage
34policy, and the insurance company name to:
   35(1)  The individual or, if the individual is deceased,
-7-1any person who is an interested party in the estate of the
2individual as provided under chapter 633.
   3(2)  The parent or legal guardian of the individual if the
4individual is an unemancipated minor.
   5(3)  The legal guardian of the individual if the individual
6is legally incapacitated.
   7(4)  A person who has power of attorney for the individual.
   8(5)  A person who submits a notarized release from the
9individual dated no more than ninety days before the date the
10request is made.
   11(6)  A person suffering loss or injury in a motor vehicle
12accident in which the individual was involved, but only as part
13of an accident report as authorized in section 321.271 relating
14to access to accident reports.
   15d.  For the purpose of investigating, enforcing, or
16prosecuting laws or issuing citations, information related to a
17motor vehicle owner or operator’s financial liability coverage
18under section 321.20B may be provided to state or local law
19enforcement agencies.
   20e.  Upon request of a peace officer acting in an official
21capacity under the provisions of paragraph “d”, the department
22or the designated agent shall, upon request, disclose relevant
23information contained in the database.
   24f.  For the purpose of the state auditor conducting audits
25of the program.
   26g.  Upon request of a financial institution for the purpose
27of protecting the financial institution’s bona fide security
28interest in a motor vehicle.
   292.  a.  The department may allow the designated agent to
30prepare and deliver, upon request, a report on the insurance
31information of a person or motor vehicle in accordance with
32this section. The report may be in any of the following forms:
   33(1)  A certified copy that is considered admissible in any
34court proceeding in the same manner as the original.
   35(2)  Information accessible through the internet or through
-8-1another electronic medium if the department determines that
2sufficient security is provided to ensure compliance with this
3section.
   4b.  The department may allow the designated agent to charge a
5fee established by the department for each of the following:
   6(1)  Authenticating a document, including preparation and
7delivery of a certified copy.
   8(2)  Accessing a record through the internet or through
9another electronic medium.
   10(3)  Providing a record to a financial institution under
11subsection 1, paragraph “g”.
   123.  The designated agent or any other person who knowingly
13releases or discloses information from the database for a
14purpose other than those authorized in this section or to a
15person who is not entitled to such information is guilty of a
16class “D” felony.
   174.  Neither the state nor the department’s designated agent
18shall be liable to any person for gathering, managing, or
19using the information in the database in compliance with this
20chapter.
   215.  The designated agent shall be responsible for
22maintaining and securing the information in the database
23provided by the department and insurers under sections 321B.2
24and 321B.3.
   256.  An insurer acting in compliance with this chapter shall
26not be liable to any person for the disclosure of information
27supplied to the department or designated agent. The designated
28agent shall indemnify an insurer against any loss arising from
29the disclosure of information supplied to the department or
30designated agent, provided the insurer supplied the information
31to the department or designated agent in a manner that complies
32with this chapter and rules adopted pursuant to this chapter.
33Records provided by an insurer under this chapter shall be
34deemed evidence of insurance and not a guarantee of insurance.
35   Sec. 7.  NEW SECTION.  321B.5  Automated registration plate
-9-1reader systems — enforcement programs.
   21.  a.  A county attorney may implement and administer an
3uninsured vehicle enforcement program in the county attorney’s
4county under which law enforcement agencies in the county may
5use an automated registration plate reader system utilizing
6individual automated registration plate reader system units to
7access and collect data for the enforcement of section 321.20B.
   8b.  A county attorney or law enforcement agency may enter
9into a contractual agreement with an automated registration
10plate reader system provider for purposes of providing
11the necessary technology, equipment, and maintenance of an
12automated registration plate reader system.
   13c.  A law enforcement agency using an automated registration
14plate reader system shall have access to the motor vehicle
15insurance verification database created under this chapter
16for purposes of determining whether a motor vehicle which has
17had its registration plate number recorded by the automated
18registration plate reader system is operating with financial
19liability coverage as required under section 321.20B.
   202.  a.  Access to an automated registration plate reader
21system shall be restricted to authorized users of the law
22enforcement agency utilizing the system. However, any entity
23with which the agency or county attorney contracts to provide
24the necessary technology, equipment, and maintenance of the
25system shall be authorized, as necessary, to access the system
26for required maintenance or software updates.
   27b.  Data collected by an automated registration plate reader
28system shall be retained by a law enforcement agency if the
29data is or will be used to establish a violation of section
30321.20B, as determined by the county attorney. Data collected
31by an automated registration plate reader system and retained
32by a law enforcement agency may be used in any court proceeding
33to establish a violation of section 321.20B. The data shall
34be deleted or destroyed if the data is no longer needed to
35establish a violation of section 321.20B.
-10-
   1c.  A peace officer may verify by sworn affidavit that a
2photograph generated by an automated registration plate reader
3system identifies a particular motor vehicle operating or
4having operated on the public highways of the state, and that
5the motor vehicle insurance verification database indicates the
6motor vehicle was not in compliance with section 321.20B at the
7time of operation. The affidavit shall constitute probable
8cause for purposes of prosecution for a violation of section
9321.20B.
   10d.  Data collected by an automated registration plate reader
11system shall not be used by any person for purposes other than
12to establish a violation of section 321.20B or as otherwise
13authorized under this section.
   14e.  A law enforcement agency shall not sell data collected by
15an automated registration plate reader system for any purpose
16or share such data for any purpose not authorized by this
17section.
   183.  County attorneys who implement and administer an
19uninsured vehicle enforcement program shall, in association
20with the Iowa county attorneys association, collectively
21submit a report to the general assembly by September 1 of each
22year consisting of an evaluation of the uninsured vehicle
23enforcement programs in the state, including any information
24relating to or recommendations for improvement of the programs.
25   Sec. 8.  NEW SECTION.  321B.6  Diversion programs.
   261.  A county attorney may implement and administer an
27uninsured vehicle enforcement diversion program in the
28county attorney’s county for purposes of diverting complaints
29involving violations of section 321.20B by owners of motor
30vehicles from criminal court to the diversion program in
31order to enhance public safety and security through increased
32compliance with section 321.20B. Under a diversion program,
33the county attorney may, at the county attorney’s discretion,
34defer a person’s prosecution for a violation of section 321.20B
35and refer the person to the diversion program. In making the
-11-1determination, the county attorney shall consider all of the
2following factors:
   3a.  Whether it is in the best interest of the person for the
4person to be referred to the diversion program.
   5b.  Whether it is in the best interest of the public for the
6person to be referred to the diversion program.
   7c.  Whether the person has previously received a warning
8memorandum or has been previously convicted of a violation of
9section 321.20B or a substantially similar statute of another
10state.
   11d.  Whether the person has other criminal charges currently
12pending against the defendant, including the strength of the
13evidence on which such charges are based.
   142.  Upon referral to a diversion program, a notice of the
15referral shall be forwarded by mail to the last known address
16of the registered owner of the motor vehicle. The notice shall
17contain all of the following:
   18a.  The date the alleged violation of section 321.20B
19occurred.
   20b.  A statement of the penalties for a violation of section
21321.20B.
   22c.  A statement that the records of the motor vehicle
23insurance verification database indicate that the person, as
24the registered owner of a motor vehicle, is not in compliance
25with section 321.20B and that the complaint against the owner
26has been referred to the diversion program.
   27d.  The date before which the owner must contact the office
28of the county attorney concerning the complaint.
   293.  If the owner fails to comply with the notice, the county
30attorney may proceed with the prosecution of the owner as
31provided by law.
   324.  The county attorney may enter into a written agreement
33with the owner to defer prosecution on the complaint for a
34period to be determined by the county attorney, not to exceed
35two years. The conditions of an agreement to defer prosecution
-12-1shall include all of the following:
   2a.  The owner shall provide proof of financial liability
3coverage currently in effect for the motor vehicle upon request
4of the county attorney.
   5b.  The owner shall comply with section 321.20B for the full
6term of the agreement.
   7c.  The owner shall not own or operate any vehicle in
8violation of section 321.20B during the full term of the
9agreement.
   105.  a.  Each diversion agreement shall include a provision
11requiring the owner to pay to the county attorney’s office a
12fee equal to the fine as provided in section 805.8A, subsection
1314, paragraph “f”, for a violation of section 321.20B. This
14fee shall be deposited in a special county attorney fund with
15the county treasurer to be known as the uninsured vehicle
16enforcement diversion program fund.
   17b.  The moneys deposited in the uninsured vehicle enforcement
18diversion program fund shall be used by the county attorney
19to pay for all expenses and costs of equipping, operating,
20and monitoring the uninsured vehicle enforcement program or
21the diversion program, or both, including but not limited
22to contractual payments to third-party entities providing
23essential services or equipment for detection of violations of
24section 321.20B, including automated registration plate reader
25systems, and payment of reasonable compensation to authorized
26and participating law enforcement agencies as may be agreed
27upon between the entities, law enforcement agencies, and the
28county attorney.
   29c.  The county treasurer shall keep records of all moneys
30deposited in and disbursed from the uninsured vehicle
31enforcement diversion program fund. The records of the moneys
32shall be audited at the same time the records of the county
33treasurer are audited.
   34d.  If the owner furnishes proof to the satisfaction of the
35county attorney that financial liability coverage was in effect
-13-1at the time of the alleged violation, no fee shall be required.
   26.  County attorneys who implement and administer an
3uninsured vehicle enforcement diversion program shall, in
4association with the Iowa county attorneys association,
5collectively submit a report to the general assembly by
6September 1 of each year consisting of an evaluation of the
7diversion programs in the state, including any information
8relating to or recommendations for improvement of the programs,
9and the amounts deposited in and disbursed from uninsured
10vehicle enforcement diversion program funds in the state.
11   Sec. 9.  EFFECTIVE DATE.  This Act takes effect July 1, 2021.
12   Sec. 10.  APPLICABILITY.  The following apply on and after
13the date on which the motor vehicle insurance verification
14database established in this Act contains information on at
15least ninety-five percent of the registered motor vehicles in
16the state, as determined by the department of transportation:
   171.  The section of this Act enacting section 321B.5.
   182.  The section of this Act enacting section 321B.6.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
   22This bill relates to motor vehicle insurance.
   23FINANCIAL LIABILITY COVERAGE. Under current law, Code
24section 321.20B prohibits a person from driving a motor
25vehicle unless financial liability coverage is in effect for
26the vehicle and unless the driver has in the vehicle the
27proof of financial liability coverage card issued for the
28vehicle. The bill additionally requires the owner of any
29motor vehicle registered under Code chapter 321 to maintain
30financial liability coverage for the vehicle. A violation
31of Code section 321.20B is punishable by a scheduled fine of
32$250, or $500 in connection with a vehicle accident, removal
33of the vehicle’s license plates and registration receipt, and
34impoundment, at the peace officer’s discretion. By operation
35of law, the bill does not apply to certain motor vehicles not
-14-1subject to registration under Code section 321.18, a lienholder
2who has a security interest in a motor vehicle so long as the
3lienholder maintains financial liability coverage for any
4motor vehicle driven or moved by the lienholder in which the
5lienholder has an interest, or a motor vehicle owned by a
6licensed motor vehicle dealer or wholesaler.
   7INSURANCE VERIFICATION DATABASE. The bill establishes
8a motor vehicle insurance verification program within
9the department of transportation (DOT) for purposes of
10administering a motor vehicle insurance verification database.
11The bill requires the DOT to establish an advisory council
12with members as provided in the bill for purposes of making
13recommendations to, assisting, and reporting to the DOT on
14matters related to the database.
   15The bill requires the DOT to either designate a position
16within the DOT or, following competitive bidding procedures,
17contract with a third party to act as the DOT’s designated
18agent for administering the database. The designated agent
19is required to update the database, compare information in
20the database, and archive database files as provided in the
21bill. The bill requires the DOT to audit the program at least
22annually.
   23The bill sets forth certain reporting requirements under
24which insurers must submit records to the designated agent.
25The bill authorizes the DOT to assess a civil penalty of not
26more than $250 for each day an insurer fails to comply with the
27bill.
   28The bill sets forth certain limitations on the disclosure
29of information in the database. Such information may be
30disclosed to governmental agencies and courts for purposes
31of investigating, litigating, or enforcing motor vehicle
32financial liability requirements, and to certain other
33persons as described in the bill. The bill provides that the
34designated agent or any other person who knowingly discloses
35the information in violation of the bill is guilty of a class
-15-1“D” felony. A class “D” felony is punishable by confinement
2for no more than five years and a fine of at least $750 but not
3more than $7,500.
   4AUTOMATED REGISTRATION PLATE READER SYSTEMS. The bill
5authorizes a county attorney to implement and administer an
6uninsured vehicle enforcement program in the county attorney’s
7county under which law enforcement agencies in the county may
8use an automated registration plate reader system (system) to
9access and collect data for the enforcement of Code section
10321.20B. The bill allows a county attorney or law enforcement
11agency to enter into a contractual agreement with a provider
12for purposes of providing the necessary technology, equipment,
13and maintenance of a system.
   14The bill provides that a law enforcement agency using
15a system shall have access to the motor vehicle insurance
16verification database for purposes of determining whether a
17motor vehicle which has had its registration plate number
18recorded by a system is operating with the required financial
19liability coverage.
   20The bill specifies the persons who may have access to
21a system, and provides for the collection, retention, and
22destruction of data.
   23The bill allows a peace officer to verify by sworn affidavit
24that a photograph generated by a system identifies a particular
25motor vehicle operating or having operated on the highways,
26and that the motor vehicle insurance verification database
27indicates the motor vehicle was not in compliance with Code
28section 321.20B at the time of operation. The affidavit
29constitutes probable cause for purposes of prosecution for a
30violation of Code section 321.20B.
   31The bill prohibits a law enforcement agency from selling
32data collected by a system or sharing such data for any purpose
33not authorized by the bill.
   34The bill requires county attorneys who implement and
35administer an uninsured vehicle enforcement program to,
-16-1in association with the Iowa county attorneys association,
2collectively submit a report to the general assembly by
3September 1 of each year consisting of an evaluation of the
4uninsured vehicle enforcement programs in the state, including
5any information relating to or recommendations for improvement
6of the programs.
   7DIVERSION PROGRAMS. The bill authorizes a county attorney
8to implement and administer an uninsured vehicle enforcement
9diversion program (diversion program) in the county attorney’s
10county for purposes of diverting complaints involving
11violations of Code section 321.20B by owners of motor vehicles.
12The county attorney may, at the county attorney’s discretion,
13defer a person’s prosecution and refer the person to the
14diversion program. The bill specifies factors the county
15attorney must consider to make the determination.
   16The bill requires a notice to be mailed to a person upon
17referral to a diversion program. If the person fails to comply
18with the notice, the county attorney may proceed with the
19prosecution of the person as provided by law.
   20The bill allows a county attorney to enter into a written
21agreement with the person to defer prosecution on the complaint
22for a period to be determined by the county attorney, not to
23exceed two years. The bill specifies certain conditions that
24must be included in an agreement to defer prosecution.
   25Each diversion agreement must include a provision requiring
26the owner to pay to the county attorney’s office a fee of
27between $250 and $500. The fees must be deposited in a special
28county attorney fund with the county treasurer to be known
29as the uninsured vehicle enforcement diversion program fund.
30The moneys deposited in the fund must be used by the county
31attorney to pay for all expenses and costs of equipping,
32operating, and monitoring the programs, including but not
33limited to contractual payments to third-party entities
34providing essential services or equipment for detection
35of violations of Code section 321.20B, including automated
-17-1registration plate reader systems, and payment of reasonable
2compensation to authorized and participating law enforcement
3agencies as may be agreed upon between the entities, law
4enforcement agencies, and the county attorney.
   5The county treasurer must keep records of all moneys
6deposited in and disbursed from the fund, and records of the
7moneys must be audited at the same time the records of the
8county treasurer are audited.
   9If a person furnishes proof to the satisfaction of the county
10attorney that financial liability coverage was in effect at the
11time of the alleged violation, no fee is required.
   12The bill requires county attorneys who implement and
13administer a diversion program to, in association with the Iowa
14county attorneys association, collectively submit a report to
15the general assembly by September 1 of each year consisting of
16an evaluation of the diversion programs in the state, including
17any information relating to or recommendations for improvement
18of the programs, and the amounts deposited in and disbursed
19from uninsured vehicle enforcement diversion program funds in
20the state.
   21EFFECTIVE DATE AND APPLICABILITY. The bill takes effect
22July 1, 2021. The provisions of the bill relating to automated
23registration plate reader systems and diversion programs apply
24on and after the date on which the motor vehicle insurance
25verification database contains information on at least 95
26percent of the registered motor vehicles in the state, as
27determined by the DOT.
-18-
mo/ns